Personal Lines Exam FX Questions With Complete Solutions
What law protects consumers from the circulation of inaccurate or obsolete information? correct answer: The Fair Credit Reporting Act What do individuals use to transfer their risk of loss to a larger group? correct answer: Insurance What is a deductible in an insurance policy? correct answer: A specified dollar amount that the insured must pay before the insurer will pay the policy benefits Wagering on a sporting event is known as what type of risk? correct answer: Speculative If an insured peril was the proximate cause of loss, what type of loss is it? correct answer: Direct What provisions states that if a policy allows for greater benefits than the financial loss incurred, the insured may be compensated only for the amount lost? correct answer: Indemnity What does indemnify mean in insurance? correct answer: To restore an insured to the same financial status as before a loss In property insurance, what is the purpose of a coinsurance clause? correct answer: To encourage the insureds to insure property close to it's value What term describes a loss caused by continuous exposure to a condition? correct answer: Occurrence A policy that covers all causes of loss except for those specifically excluded is known as what type of policy? correct answer: Open Peril (or special) form What determines an insurer's responsibility for payment, as stated in an insurance policy? correct answe
Document information
- Uploaded on
- September 9, 2023
- Number of pages
- 5
- Written in
- 2023/2024
- Type
- Exam (elaborations)
- Contains
- Questions & answers
