FIN 341 EXAM 1 PRACTICE SCRIPT 2026
TESTED QUESTIONS WITH ANSWERS
◉ unilateral. Answer: only the insurer makes a legally enforceable
promise
◉ conditional. Answer: policy owner must comply with all policy
provisions to collect for a covered loss
◉ personal. Answer: property insurance policy cannot be validly
assigned to another party without the insurer's consent
◉ contact of adhesion. Answer: the insured must accept the entire
contract will all of its terms and conditions
◉ declarations. Answer: statements that provide information about
the particular property or activity to be insured
- usually on the first page of the policy
◉ insuring agreement. Answer: summarizes the major promises of
the insurer
, ◉ there are two basic forms of an insuring agreement in property
insurance:. Answer: - named perils coverage
- open-perils or special coverage
◉ named perils coverage. Answer: where only those perils
specifically named in the policy are covered
◉ open-perils or special coverage. Answer: where all losses are
covered except those losses specifically excluded
◉ insurance contracts contain three major types of exclusions:.
Answer: - excluded perils, flood, intentional act
- excluded losses, a professional liability loss is excluded in the
homeowners policy
- excluded property, pets are not covered as personal property in the
homeowners policy
◉ conditions. Answer: provisions in the policy that qualify or place
limitations on the insurers promise to perform
TESTED QUESTIONS WITH ANSWERS
◉ unilateral. Answer: only the insurer makes a legally enforceable
promise
◉ conditional. Answer: policy owner must comply with all policy
provisions to collect for a covered loss
◉ personal. Answer: property insurance policy cannot be validly
assigned to another party without the insurer's consent
◉ contact of adhesion. Answer: the insured must accept the entire
contract will all of its terms and conditions
◉ declarations. Answer: statements that provide information about
the particular property or activity to be insured
- usually on the first page of the policy
◉ insuring agreement. Answer: summarizes the major promises of
the insurer
, ◉ there are two basic forms of an insuring agreement in property
insurance:. Answer: - named perils coverage
- open-perils or special coverage
◉ named perils coverage. Answer: where only those perils
specifically named in the policy are covered
◉ open-perils or special coverage. Answer: where all losses are
covered except those losses specifically excluded
◉ insurance contracts contain three major types of exclusions:.
Answer: - excluded perils, flood, intentional act
- excluded losses, a professional liability loss is excluded in the
homeowners policy
- excluded property, pets are not covered as personal property in the
homeowners policy
◉ conditions. Answer: provisions in the policy that qualify or place
limitations on the insurers promise to perform
