IC Reviewer for Non-Life Insurance
Agent's Exam Questions and Answers
Graded A+
A term which refers to a relative division of risk between the insurer and the
insured, depending on the relative amount of the policy and the actual value of the
property insured and takes effect only when the actual loss is partial and less than
the amount of the policy. - Correct answer-Co-insurance
Explosion to be recoverable as extraneous risk written in conjunction with the
standard fire policy must be: a. Explosion from pressure vessels. - Correct answer-
Explosion recoverability
With respect to Co-insurance Average or Contribution Clause, the insured is never
penalized, the insured is always penalized, under some circumstances the insured is
penalized. - Correct answer-Co-insurance Average or Contribution Clause
According to the term of the 'Loss Clause' (which is contained in the coverage
form attached to a Fire Policy), must an insured request the reinstatement of his
insurance after a loss has occurred? - Correct answer-Loss Clause
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,Why must an insured have an insurable interest in the property insured? To obtain
a measurement of the insured's loss, guard against moral hazard, prevent wagering.
- Correct answer-Insurable interest
Under the Insurance Law, a fund was created to be used in the payment of allowed
claims against an insurance company authorized to transact business in the
Philippines, remaining unpaid by reason of insolvency of such company. - Correct
answer-Security fund
Under the provisions of the Insurance Code, a cancellation notice to the insured
from the insurer, to be effective, shall be based on the occurrence of any of the
following except: verbal notice of the insured. - Correct answer-Cancellation
notice
In Health Insurance, Total Disability is taken to mean a complete inability of the
insured to engage in his occupation for a period specified in the policy. - Correct
answer-Total Disability
An insurable interest exists in the following instances: in the love and affection of
persons related by blood or by law, if a person is interested in the well-being of
another person, if a person is interested in buying insurance on another person, if a
person has an economic interest in the insured even though he is not related to the
insured. - Correct answer-Insurable interest instances
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, An insured property being shipped may be stationary temporarily at a certain
location. The property will eventually continue on its destination. The kind of
shipment in insurance is known as 'In the course of transit'. - Correct answer-In
transit
A kind of insurance that protects the insured against loss due to non-performance
of contract to which he is a party is 'Guaranty insurance'. - Correct answer-
Guaranty insurance
Generally, Fidelity Bonds are issued to become effective as of a given date for a
continuous term. - Correct answer-Fidelity Bonds
A surety bond cannot be made a substitute for an insurance policy as a cover for a
motor vehicle under CMVLI. - Correct answer-Surety bond
A misrepresentation is not material unless it led the insurance company to issue
coverage that would not have been issued if the true facts had been known. -
Correct answer-Misrepresentation
Under the liability feature of an insurance policy, the term 'upper limit' means the
extent of the liability for any accident involving more than one person. - Correct
answer-Upper limit
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
Agent's Exam Questions and Answers
Graded A+
A term which refers to a relative division of risk between the insurer and the
insured, depending on the relative amount of the policy and the actual value of the
property insured and takes effect only when the actual loss is partial and less than
the amount of the policy. - Correct answer-Co-insurance
Explosion to be recoverable as extraneous risk written in conjunction with the
standard fire policy must be: a. Explosion from pressure vessels. - Correct answer-
Explosion recoverability
With respect to Co-insurance Average or Contribution Clause, the insured is never
penalized, the insured is always penalized, under some circumstances the insured is
penalized. - Correct answer-Co-insurance Average or Contribution Clause
According to the term of the 'Loss Clause' (which is contained in the coverage
form attached to a Fire Policy), must an insured request the reinstatement of his
insurance after a loss has occurred? - Correct answer-Loss Clause
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Why must an insured have an insurable interest in the property insured? To obtain
a measurement of the insured's loss, guard against moral hazard, prevent wagering.
- Correct answer-Insurable interest
Under the Insurance Law, a fund was created to be used in the payment of allowed
claims against an insurance company authorized to transact business in the
Philippines, remaining unpaid by reason of insolvency of such company. - Correct
answer-Security fund
Under the provisions of the Insurance Code, a cancellation notice to the insured
from the insurer, to be effective, shall be based on the occurrence of any of the
following except: verbal notice of the insured. - Correct answer-Cancellation
notice
In Health Insurance, Total Disability is taken to mean a complete inability of the
insured to engage in his occupation for a period specified in the policy. - Correct
answer-Total Disability
An insurable interest exists in the following instances: in the love and affection of
persons related by blood or by law, if a person is interested in the well-being of
another person, if a person is interested in buying insurance on another person, if a
person has an economic interest in the insured even though he is not related to the
insured. - Correct answer-Insurable interest instances
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, An insured property being shipped may be stationary temporarily at a certain
location. The property will eventually continue on its destination. The kind of
shipment in insurance is known as 'In the course of transit'. - Correct answer-In
transit
A kind of insurance that protects the insured against loss due to non-performance
of contract to which he is a party is 'Guaranty insurance'. - Correct answer-
Guaranty insurance
Generally, Fidelity Bonds are issued to become effective as of a given date for a
continuous term. - Correct answer-Fidelity Bonds
A surety bond cannot be made a substitute for an insurance policy as a cover for a
motor vehicle under CMVLI. - Correct answer-Surety bond
A misrepresentation is not material unless it led the insurance company to issue
coverage that would not have been issued if the true facts had been known. -
Correct answer-Misrepresentation
Under the liability feature of an insurance policy, the term 'upper limit' means the
extent of the liability for any accident involving more than one person. - Correct
answer-Upper limit
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
