Questions) Exam with Complete
Solutions
An adjuster is a fiduciary agent with a responsibility of loyalty to the interest
of - ✔✔The insured and insurer
An insurer gives which of the following as Consideration for an insurance
policy? - ✔✔A Promise
The interest of the insured and all other persons in the property involved in
a claim is
found in - ✔✔A Proof of Loss
An insured rear-ends another driver's vehicle. The auto policy that pays
damages to
repair the damaged vehicle is a _______? - ✔✔Liability Policy
Your insurance company wrote an auto insurance binder for an owner who
said that he
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,did not have any prior accidents. Immediately thereafter it was discovered
that he did not
tell the truth. The company now wants to cancel the binder as quickly as
possible. What
is true? - ✔✔5 days notice required
For insurance to pay damages, an insurable interest must exist: - ✔✔When
the loss takes place
Texting while driving is best described as a: - ✔✔Hazard
A covered loss is $90,000. Policy A has a limit of $100,000. Policy B has a
limit of
$200,000. Both policies are pro-rata policies. How much will policy B pay
for this loss? - ✔✔$60,000
I sold my home yesterday, signed a deed and transferred title. Last night
there was a
house fire. I had not yet cancelled my homeowner's insurance. The
purchaser also had a
homeowner's policy. Which policy should pay to pay the claim? -
✔✔Purchaser's policy
Giving prompt notice of loss is best described as a policy: - ✔✔Condition
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, If there is a total loss by an insured peril to a FL building, the insurer must
pay: - ✔✔Actual Cash Value
A Loss Payable Clause refers to - ✔✔Lenders interest in personal property
My coin collection was appraised and my insurance company specifically
insured the
valued of that collection. That is an example of: - ✔✔A Valued Policy
An insurance contract is based on the Principle of: - ✔✔Utmost Good Faith
The two kinds of waivers are: - ✔✔express and implied
Proximate Cause is the unbroken connection between the occurrence and
____ that
grows out of the occurrence. - ✔✔Damages
Which loss settlement valuation may be a violation of the Principle of
Indemnity? - ✔✔Replacement Cost
If the policy limit is $60,000; 80% coinsurance requirement; loss of $60,000
and the
value of the property is $100,000, what loss amount will the insurer pay? -
✔✔$45,000
The insured has a Homeowner's insurance policy with a 5% Hurricane
deductible. If
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