CIP - C120 Underwriting Essentials Exam
Questions and Correct Answers
Question 1
Empathy
Correct Answer
has many a formal definition in various dictionaries - but we will day is the the
ability and inclination to "put oneself in the shoes of another"
Question 2
The Theory of Probability
Correct Answer
concerns the likelihood of an occurrence, expressed by the ratio of the number of
actual occurrences to the number of possible occurrences
Question 3
Investment income
Correct Answer
is income the insurer earns from investing money that the insurer has received as
premium but has not yet earned, as wall as money it has set aside as a reserve to
pay claims
Question 4
Contractual Entrant
Correct Answer
is a person who enters onto premises under a contract with the occupier - ie) hotel
guest
Page 1 of 15
, Question 5
Nuisance
Correct Answer
the substantial and unreasonable interference with a person's right to enjoy and use
his or her property
Question 6
Flash point
Correct Answer
the flash point of a liquid is the minimum temperature at which the liquid gives off
sufficient vapours to form an ignitable mixture with air near the surface of the liquid
or within the test vessel used
Question 7
Business use
Correct Answer
a type of commercial use that combines elements of personal and commercial use
Question 8
Common Hazards
Correct Answer
are hazards that are generally found in most occupancies
Question 9
Other automobiles
Correct Answer
are defined in the Owner's policy as automobiles other than the described
automobile that meet all of several conditions pertaining to the vehicle's size and
use
Page 2 of 15
Questions and Correct Answers
Question 1
Empathy
Correct Answer
has many a formal definition in various dictionaries - but we will day is the the
ability and inclination to "put oneself in the shoes of another"
Question 2
The Theory of Probability
Correct Answer
concerns the likelihood of an occurrence, expressed by the ratio of the number of
actual occurrences to the number of possible occurrences
Question 3
Investment income
Correct Answer
is income the insurer earns from investing money that the insurer has received as
premium but has not yet earned, as wall as money it has set aside as a reserve to
pay claims
Question 4
Contractual Entrant
Correct Answer
is a person who enters onto premises under a contract with the occupier - ie) hotel
guest
Page 1 of 15
, Question 5
Nuisance
Correct Answer
the substantial and unreasonable interference with a person's right to enjoy and use
his or her property
Question 6
Flash point
Correct Answer
the flash point of a liquid is the minimum temperature at which the liquid gives off
sufficient vapours to form an ignitable mixture with air near the surface of the liquid
or within the test vessel used
Question 7
Business use
Correct Answer
a type of commercial use that combines elements of personal and commercial use
Question 8
Common Hazards
Correct Answer
are hazards that are generally found in most occupancies
Question 9
Other automobiles
Correct Answer
are defined in the Owner's policy as automobiles other than the described
automobile that meet all of several conditions pertaining to the vehicle's size and
use
Page 2 of 15
