Central Insurance School 2-20 Questions & Answers

The most accurate description of Pure Risk is which of the following? -Insurable -chance of financial loss -only eligible if the insured can see the damage -not insurable - ANSWERSinsurable Which of the following can be found in Definitions? -Who is an insured? -Duties of the insured at time of loss -Intentionally causing damage to their property -Coverage territory - ANSWERSWho is an insured? Which of the following can be found in "Conditions"? -Who is an insured? -Duties of the insured at time of loss -Intentionally causing damage to their property -Coverage territory - ANSWERSDuties of the insured at time of loss All of the following choices are found on Declarations page Except: -Carrier's home address -Who the insurer will pay -date of expiration -exclusions - ANSWERSExclusions What is an "Exclusion"? - ANSWERSEvents not payable under the policy What is a Deposit Premium? - ANSWERSA partial premium placed as a down payment at the start of the policy . Which of the following best describes a "binder"? -Policy was received by the insured -Temporary insurance -Exclusions from the written contract -Requirement is that the policies must be bound in a bound book - ANSWERSTemporary insurance The most accurate definition of a Contract of Adhesion is: - ANSWERScontract created by insurance company; insured cannot negotiate terms; ambiguities in favor of insured What is NOT a source of underwriting? -Exclusions -Application -Inspection Form -Public Records - ANSWERSExclusions What section in the PAP describes payment to others if the insured damages others? - ANSWERSLiability Fire loss in the insured home would be considered? - ANSWERSperil What is the definition of a "hazard"? - ANSWERSincreases the likelihood of a loss What type of risk is known for unconscious mental attitude (accident proneness)? -Physical -Moral -Morale -Coinsurance - ANSWERSMorale If an employee steals from his/her employer, what kind of hazard does this represent? - ANSWERSMoral A tree hits the insured's house. The damage is covered because of what concept? - ANSWERSDirect Loss Spoilage of food resulting from loss of power is known as: - ANSWERSConsequential damage Mortgage company rights include all Except: -Can pay the premium if not paid by insured -Right of notification if insured terminates coverage -Have the mortgage company name on claim check -Has NO rights under the insured's policy - ANSWERSHas NO rights under the insured's policy Under Lender's Interest, what is a mortgagee? - ANSWERSperson or financial institution which loans money on a real property An insurer agrees in advance to a State Amount. This is known as - ANSWERSAgreed Value Insured agrees to carry a certain amount of the property value in insurance. If the insured is penalized because he does not maintain adequate coverage, this is known as? - ANSWERSCoinsurance Maximum amount the insurer is obligated to pay under the insurance coverage? - ANSWERSLimit of Insurance If there are not enough contents in the structure, the building is considered? - ANSWERSVacant One limit for all items is: - ANSWERSBlanket Insurance Burglary is defined as? - ANSWERSThe taking of property by a person unlawfully entering or leaving the premises with evidence of visible signs of forcible entry or exit The vanishing of insured property in an unexplained manner is: - ANSWERSMysterious Disappearance Any act of stealing is? - ANSWERStheft Failure to act as a prudent person would have acted in the same situations is the definitions of which of the following? -Legal Liability -Negligence -Contributory Negligence -Arbitration - ANSWERSNegligence Insured is liable for directing the actions of other. This is known as? - ANSWERSVicarious Liability Vicarious Liability is also known as: - ANSWERScontingent liability An accident included continuous and repeated exposure to the same harmful conditions, is referred to as: - ANSWERSoccurrence All of the following are considered "Conditions" EXCEPT: -Subrogation -Policy Period -Exclusions -Appraisal - ANSWERSExclusions Bob borrows a car from a friend. If an accident occurs, what policy would be primary, and which would be excess? -Bob's primary-friend's policy excess - friends policy only -insured's only Friends primary- bobs excess - ANSWERSFriend's primary - Bob's excess If revision in policy form broadens coverage, the insured is provided the additional benefits without additional premium. This is known as: - ANSWERSLiberalization What provides a procedure when the insured and insurer dispute the true value of the property loss? - ANSWERSAppraisal The policy condition that says the insurance applies separately / equally to each insured is called: - ANSWERSSeverability Evidence offered by insured to prove entitlement to collect the amount claimed at time of loss is know as? - ANSWERSProof of Loss