Level 1 Fundamentals of Insurance Practice Exam| 100 Questions| Correct 100%

Your client has made application for "appraisal". The intent of the appraisal process is to settle the dispute between your client and the insurer regarding the: a. Amount of the settlement being offered b. Denial of insurance coverage under the policy c. Right of the insured to purchase the salvage after an insured loss d. Premium charged to coverages being provided by the insurer - ANSWRRa An indifferent attitude towards losses because of the presence of insurance indicates the presence of: a. Gross negligence b. Physical hazard c. A material change d. Moral hazard - ANSWRRd Insurable interest means the: a. Interest gained on money in a bank b. Interest payable on a loan c. Personal interest people have in something they expect to inherit d. Financial interest a person has in something of value - ANSWRRd Every policy of "fire" insurance: a. Usually covers fire, smoke, and specified types of explosions b. Is required by law to cover fire, windstorm, and lightning c. Covers, fire, explosion, and windstorm d. Is required by law to cover at least fire, lightning, and specified types of explosions - ANSWRRd Your client's insurance policy was cancelled for non-payment of premium. 6 days after the notice of termination was mailed, your client had a loss. a. The loss would not be covered because no premiums had been paid b. The mailing of the notice automatically cancels the policy after 5 days c. The loss is covered because 15 days' notice must be given by registered mail d. The loss would be covered but only in proportion to the time the policy was in effect. - ANSWRRc Under a policy of "fire" insurance, the insurer must make payment for a loss within: a. 75 days after completion of the proof of loss. b. 90 days after completion of the proof of lo