, XCEL Final Exam QUESTIONS AND
ANSWERS 100% CORRECT!
In the Michigan Insurance Code, Chapter 45, insurance fraud defines financial loss as
all of the following EXCEPT - ANSWER additional premiums
Which of the following statements are NOT true regarding the limited fungi, wet or dry
rot , or bacteria coverage - ANSWER HO 04 26 endorsement is used with HO 03 forms
A "repair cost policy" is a home insurance policy in which the insurance carrier bases
the coverage - ANSWER on the property's market value
B has a property policy and would like to know the perils are covered. B should read the
- ANSWER Insuring Clause
All of the following is CORRECT about Market Value EXCEPT - ANSWER An insured's
home valuation is based upon purchase price of the home
The insurer's obligation to pay a claim depends on whether the insured or beneficiary
has complied with all policy conditions. This makes the policy a - ANSWER conditional
contract
The endorsement changes the Intentional Loss Exclusion - ANSWER In the case of fire
losses due to arson, the endorsement only excludes payment to the insured responsible
for loss
All of the following statements about the Supplemental Extended Reporting Period
Endorsement are true EXCEPT - ANSWER It extends a midi-tail to 10 total years
instead of only 5 years
Insurance companies determine risk exposure by which of the following - ANSWER Law
of large numbers and risk pooling
The primary difference of how employee theft is covered under commercial crime
employee insurance versus government crime employee coverage is - ANSWER
employee theft is covered as a per loss basis but government can be covered under
both a per loss and per employee basis
ANSWERS 100% CORRECT!
In the Michigan Insurance Code, Chapter 45, insurance fraud defines financial loss as
all of the following EXCEPT - ANSWER additional premiums
Which of the following statements are NOT true regarding the limited fungi, wet or dry
rot , or bacteria coverage - ANSWER HO 04 26 endorsement is used with HO 03 forms
A "repair cost policy" is a home insurance policy in which the insurance carrier bases
the coverage - ANSWER on the property's market value
B has a property policy and would like to know the perils are covered. B should read the
- ANSWER Insuring Clause
All of the following is CORRECT about Market Value EXCEPT - ANSWER An insured's
home valuation is based upon purchase price of the home
The insurer's obligation to pay a claim depends on whether the insured or beneficiary
has complied with all policy conditions. This makes the policy a - ANSWER conditional
contract
The endorsement changes the Intentional Loss Exclusion - ANSWER In the case of fire
losses due to arson, the endorsement only excludes payment to the insured responsible
for loss
All of the following statements about the Supplemental Extended Reporting Period
Endorsement are true EXCEPT - ANSWER It extends a midi-tail to 10 total years
instead of only 5 years
Insurance companies determine risk exposure by which of the following - ANSWER Law
of large numbers and risk pooling
The primary difference of how employee theft is covered under commercial crime
employee insurance versus government crime employee coverage is - ANSWER
employee theft is covered as a per loss basis but government can be covered under
both a per loss and per employee basis
