RMI 3011 Exam 2 Question and answers
correctly solved
Each of the following is an example of information found on the Declarations
page of a policy EXCEPT:
Name of the insured.
A summary of the insurer's major promises.
Amount of the premium.
Deductible amount. - correct answer ✔A summary of the insurer's major
promises.
Which of the following statements concerning policy "definitions" is/are true?
I. The aleatory nature of insurance contracts makes it necessary for insurers
to precisely define certain words in a policy in order to avoid having to pay for
losses the insurer never intended having to pay.
II. Defined words make if easier to determine if a loss can be covered by the
policy.
I only.
II only.
You Answered Both I and II.
Neither I nor II. - correct answer ✔II only.
Which of the following statements concerning policy exclusions is true?
Coverage while carrying passengers for a charge is usually included under a
Personal Auto Policy (PAP).
, Coverage for use of an automobile is typically included under a homeowers
policy.
Coverage for flood is excluded because of moral hazard concerns.
A particular coverage isn't needed by most insureds. - correct answer ✔A
particular coverage isn't needed by most insureds.
Joe owns a brewery that he insurers with a commercial insurance policy with
a $20,000 aggregate deductible. During a single policy period, Joe
experiences the following covered losses:
Loss 1: $10,000
Loss 2: $6,000
Loss 3: $7,000
How much will Joe's insurer pay Joe for Loss 3? - correct answer ✔$3,000
Which of the following statements concerning the coinsurance clause of a
property insurance policy is/are true?
I. The coinsurance clause only applies to partial losses, not total losses.
II. The fundamental purpose of coinsurance is to achieve rating equity. -
correct answer ✔II only.
When each insurance policy applicable to a loss only pays its share of the
loss based on its proportion of the total available insurance coverage, this is
an example of:
Primary and excess insurance.
Pro rata liability.
Contribution by equal shares.
All of the above. - correct answer ✔Pro rata liability.
correctly solved
Each of the following is an example of information found on the Declarations
page of a policy EXCEPT:
Name of the insured.
A summary of the insurer's major promises.
Amount of the premium.
Deductible amount. - correct answer ✔A summary of the insurer's major
promises.
Which of the following statements concerning policy "definitions" is/are true?
I. The aleatory nature of insurance contracts makes it necessary for insurers
to precisely define certain words in a policy in order to avoid having to pay for
losses the insurer never intended having to pay.
II. Defined words make if easier to determine if a loss can be covered by the
policy.
I only.
II only.
You Answered Both I and II.
Neither I nor II. - correct answer ✔II only.
Which of the following statements concerning policy exclusions is true?
Coverage while carrying passengers for a charge is usually included under a
Personal Auto Policy (PAP).
, Coverage for use of an automobile is typically included under a homeowers
policy.
Coverage for flood is excluded because of moral hazard concerns.
A particular coverage isn't needed by most insureds. - correct answer ✔A
particular coverage isn't needed by most insureds.
Joe owns a brewery that he insurers with a commercial insurance policy with
a $20,000 aggregate deductible. During a single policy period, Joe
experiences the following covered losses:
Loss 1: $10,000
Loss 2: $6,000
Loss 3: $7,000
How much will Joe's insurer pay Joe for Loss 3? - correct answer ✔$3,000
Which of the following statements concerning the coinsurance clause of a
property insurance policy is/are true?
I. The coinsurance clause only applies to partial losses, not total losses.
II. The fundamental purpose of coinsurance is to achieve rating equity. -
correct answer ✔II only.
When each insurance policy applicable to a loss only pays its share of the
loss based on its proportion of the total available insurance coverage, this is
an example of:
Primary and excess insurance.
Pro rata liability.
Contribution by equal shares.
All of the above. - correct answer ✔Pro rata liability.
