Property and Casualty Chapter 2
Exam Questions with Correct
Answers
A statement on an application for insurance that is taken as the absolute truth is called a
_____. - Answer- Warranty
A statement on an application that is taken to be true to the best of the applicant's
knowledge and belief is called a ____. - Answer- Representation
A lie on an application or Proof of Loss statement is called a _____. - Answer-
Misrepresentation
Hiding the truth or telling a partial truth is called _____. - Answer- Concealment
Intentionally cheating another person in order to financially benefit yourself is called
_____. - Answer- Fraud
A ______ is an individual who is responsible for the financial affairs of another person. -
Answer- Fiduciary
A _____ is the intentional and voluntary relinquishment of a legal right. - Answer-
Waiver
Immediate insurance coverage may be available from an agent or producer through the
use of an oral or written _____. - Answer- Binder
The term ____ refers to a type of contract in which only one party, the insurance
company, makes any legally enforceable promises. - Answer- Unilateral
Insurance policies are _____ , which means that since the insurance company wrote
the policy, if there are any ambiguities in the wording of the contract, then the company
is stuck with it. The insured wins! - Answer- Contracts of Adhesion
The parts of an insurance policy would include the Insuring Agreement / Coverages, the
Conditions, the Exclusions and the _____. - Answer- Declarations
Exam Questions with Correct
Answers
A statement on an application for insurance that is taken as the absolute truth is called a
_____. - Answer- Warranty
A statement on an application that is taken to be true to the best of the applicant's
knowledge and belief is called a ____. - Answer- Representation
A lie on an application or Proof of Loss statement is called a _____. - Answer-
Misrepresentation
Hiding the truth or telling a partial truth is called _____. - Answer- Concealment
Intentionally cheating another person in order to financially benefit yourself is called
_____. - Answer- Fraud
A ______ is an individual who is responsible for the financial affairs of another person. -
Answer- Fiduciary
A _____ is the intentional and voluntary relinquishment of a legal right. - Answer-
Waiver
Immediate insurance coverage may be available from an agent or producer through the
use of an oral or written _____. - Answer- Binder
The term ____ refers to a type of contract in which only one party, the insurance
company, makes any legally enforceable promises. - Answer- Unilateral
Insurance policies are _____ , which means that since the insurance company wrote
the policy, if there are any ambiguities in the wording of the contract, then the company
is stuck with it. The insured wins! - Answer- Contracts of Adhesion
The parts of an insurance policy would include the Insuring Agreement / Coverages, the
Conditions, the Exclusions and the _____. - Answer- Declarations
