Fundamentals of Insurance Exam Prep Questions with 100% Correct Answers | Latest Version 2024 | Verified

Three Main Categories of Risk - 1) Personal Risk 2)Property Risk 3)Liability Risk What are the FIVE elements of a contract? A) Agreement, Risk, Loss, Consideration, Legality B) Legal Capacity, Legality of Object, Consideration, Agreement, Genuine Intention C) Agreement, Legal Capacity, Risk, Loss, Consideration. D) None of the above - B) Legal Capacity, Legality of Object, Consideration, Agreement, Genuine Intention What is needed for an agreement to exist? - An offer made; AND an unconditional acceptance of the terms of that offer What do these abbreviations stand for? 1) T/a 2)D/b/a3)O/a - 1) Trading as 2) Doing Business as 3) Operating as How long are insurance contracts usually written for? A) 6 Months B) 3 Years C) 1 Year D) For life unless cancelled and reissued - C) 1 Year An insurer is not required to provide coverage when losses are caused by: A) Application of heat B) Lightening / Electrical surges that cause damage to electrical devices C) Contamination by radioactive material D) All of the Above E) A and C - D) All of the Above The onus to prove Misrepresentation rests with:A) The Insured B) The Insurer C) The Police D) A Bailee for hire - B) The I