Central Insurance School 2-20 Revision
Exam Questions With Verified Solutions.
The most accurate description of Pure Risk is which of the following?
-Insurable
-chance of financial loss
-only eligible if the insured can see the damage
-not insurable - Answer insurable
Which of the following can be found in Definitions?
-Who is an insured?
-Duties of the insured at time of loss
-Intentionally causing damage to their property
-Coverage territory - Answer Who is an insured?
Which of the following can be found in "Conditions"?
-Who is an insured?
-Duties of the insured at time of loss
-Intentionally causing damage to their property
-Coverage territory - Answer Duties of the insured at time of loss
All of the following choices are found on Declarations page Except:
-Carrier's home address
-Who the insurer will pay
-date of expiration
-exclusions - Answer Exclusions
What is an "Exclusion"? - Answer Events not payable under the policy
,What is a Deposit Premium? - Answer A partial premium placed as a down payment at the start of the
policy
.
Which of the following best describes a "binder"?
-Policy was received by the insured
-Temporary insurance
-Exclusions from the written contract
-Requirement is that the policies must be bound in a bound book - Answer Temporary insurance
The most accurate definition of a Contract of Adhesion is: - Answer contract created by insurance
company; insured cannot negotiate terms; ambiguities in favor of insured
What is NOT a source of underwriting?
-Exclusions
-Application
-Inspection Form
-Public Records - Answer Exclusions
What section in the PAP describes payment to others if the insured damages others? - Answer Liability
Fire loss in the insured home would be considered? - Answer peril
What is the definition of a "hazard"? - Answer increases the likelihood of a loss
What type of risk is known for unconscious mental attitude (accident proneness)?
-Physical
-Moral
, -Morale
-Coinsurance - Answer Morale
If an employee steals from his/her employer, what kind of hazard does this represent? - Answer Moral
A tree hits the insured's house. The damage is covered because of what concept? - Answer Direct Loss
Spoilage of food resulting from loss of power is known as: - Answer Consequential damage
Mortgage company rights include all Except:
-Can pay the premium if not paid by insured
-Right of notification if insured terminates coverage
-Have the mortgage company name on claim check
-Has NO rights under the insured's policy - Answer Has NO rights under the insured's policy
Under Lender's Interest, what is a mortgagee? - Answer person or financial institution which loans
money on a real property
An insurer agrees in advance to a State Amount. This is known as - Answer Agreed Value
Insured agrees to carry a certain amount of the property value in insurance. If the insured is penalized
because he does not maintain adequate coverage, this is known as? - Answer Coinsurance
Maximum amount the insurer is obligated to pay under the insurance coverage? - Answer Limit of
Insurance
If there are not enough contents in the structure, the building is considered? - Answer Vacant
One limit for all items is: - Answer Blanket Insurance
Exam Questions With Verified Solutions.
The most accurate description of Pure Risk is which of the following?
-Insurable
-chance of financial loss
-only eligible if the insured can see the damage
-not insurable - Answer insurable
Which of the following can be found in Definitions?
-Who is an insured?
-Duties of the insured at time of loss
-Intentionally causing damage to their property
-Coverage territory - Answer Who is an insured?
Which of the following can be found in "Conditions"?
-Who is an insured?
-Duties of the insured at time of loss
-Intentionally causing damage to their property
-Coverage territory - Answer Duties of the insured at time of loss
All of the following choices are found on Declarations page Except:
-Carrier's home address
-Who the insurer will pay
-date of expiration
-exclusions - Answer Exclusions
What is an "Exclusion"? - Answer Events not payable under the policy
,What is a Deposit Premium? - Answer A partial premium placed as a down payment at the start of the
policy
.
Which of the following best describes a "binder"?
-Policy was received by the insured
-Temporary insurance
-Exclusions from the written contract
-Requirement is that the policies must be bound in a bound book - Answer Temporary insurance
The most accurate definition of a Contract of Adhesion is: - Answer contract created by insurance
company; insured cannot negotiate terms; ambiguities in favor of insured
What is NOT a source of underwriting?
-Exclusions
-Application
-Inspection Form
-Public Records - Answer Exclusions
What section in the PAP describes payment to others if the insured damages others? - Answer Liability
Fire loss in the insured home would be considered? - Answer peril
What is the definition of a "hazard"? - Answer increases the likelihood of a loss
What type of risk is known for unconscious mental attitude (accident proneness)?
-Physical
-Moral
, -Morale
-Coinsurance - Answer Morale
If an employee steals from his/her employer, what kind of hazard does this represent? - Answer Moral
A tree hits the insured's house. The damage is covered because of what concept? - Answer Direct Loss
Spoilage of food resulting from loss of power is known as: - Answer Consequential damage
Mortgage company rights include all Except:
-Can pay the premium if not paid by insured
-Right of notification if insured terminates coverage
-Have the mortgage company name on claim check
-Has NO rights under the insured's policy - Answer Has NO rights under the insured's policy
Under Lender's Interest, what is a mortgagee? - Answer person or financial institution which loans
money on a real property
An insurer agrees in advance to a State Amount. This is known as - Answer Agreed Value
Insured agrees to carry a certain amount of the property value in insurance. If the insured is penalized
because he does not maintain adequate coverage, this is known as? - Answer Coinsurance
Maximum amount the insurer is obligated to pay under the insurance coverage? - Answer Limit of
Insurance
If there are not enough contents in the structure, the building is considered? - Answer Vacant
One limit for all items is: - Answer Blanket Insurance
