OTL Practice Exam A Questions and answers, rated A+/ [Exam Prediction paper Updated 2024/25]

OTL Practice Exam A Questions and answers, rated A+ a) It does not certify the existence of insurance. - -Which of the following is not a definition of "Certificate of Insurance"? a) It does not certify the existence of insurance. b) May be a modified form of a policy. c) Issued as a convenience to a party who may have interest in the insurance. d) None of the above. d) Accident and Sickness, Crime and Robbery. - -The Casualty Department underwrites: a) Homeowner policies. b) Marine risks. c) Business property and stock. d) Accident and Sickness, Crime and Robbery. d) Today's market value of the property. - -Which statement best defines the term Actual Cash Value? a) It is the same as replacement cost. b) Is the replacement value of the property. c) Same as B above, less any accumulated depreciation. d) Today's market value of the property. b) Is the failure to do what a reasonable person would do in a given situation. - -A definition of Ordinary negligence: a) Will always refer to bodily injury to a third party. b) Is the failure to do what a reasonable person would do in a given situation. c) Is basically the same as gross negligence. d) Would always include reference to impaired driving. b) Mental attitude and character of the person. - -Which statement is CORRECT pertaining to Moral Hazard? a) Untidy general housekeeping. b) Mental attitude and character of the person. c) It does not relate to conditions attributable to the human elements of risk. d) It relates to the property and may lead to the occurrence of a peril. c) Labor problems, obsolescence of plant. - -Which of the following is NOT TRUE in reference to a Physical Hazard? a) Slippery floors, loose tiles. b) Dangerous manufacturing practices. c) Labor problems, obsolescence of plant. d) Preventative methods can usually be implemented and thereby reducing or even completely remove the risk. b) Agent and the insurer. - -The Principal-Agent relationship which is governed by law, is one between the: a) Agent and the insured. b) Agent and the insurer. c) Contract between the agent and insured. d) Has no legal binding by law. d) The premium to be paid. - -Which of the following is NOT part of the insuring agreement? a) Circumstances under which the insured may receive the proceeds of the insurance. b) The exclusions. c) The perils insured against. d) The premium to be paid. b) Mutual and Stock - -What are the different types of insurance companies? a) Mutual b) Mutual and Stock c) Mutual, Stock and Lloyds d) Stock a) Service and settle claims. - -Which of the following would NOT be considered as part of the agents' duties? a) Service and settle claims. b) Represent the client and client's interest.