INSURANCE LAW EXAM QUESTIONS WITH
COMPLETE SOLUTIONS
_____________ to an insurance contract specify events or
circumstances which, if they happen, result in there being no
insurance coverage. correct answers Exclusions
________________ insurance protects your business against
loss or damage to specific business-related items such as
buildings, equipment, furniture, tools and inventory correct
answers Property
__________________________ are organization of at least 75
members which are licensed to enter into non-profit contracts of
life, accident, sickness, disability, and funeral insurance with
their members. correct answers Fraternal societies
___________________________ insurance protects a business
against any indirect losses or damages it may suffer through
events that temporarily prevent the business from carrying on as
usual. correct answers Business interruption
____________________________ are obligations under an
insurance contract which a customer must satisfy in order to
maintain coverage. correct answers Condition and warranties
________________________________ insurance requires
employers to contribute to an accident fund maintained by a
government board or agency that is used to pay to employees
who are hurt on the job. correct answers Workers
Compensation
, ___________________________________ insurance provides
payment if a person performing professional services gives
negligent advice that leads to a loss for a client. correct answers
Errors and omissions
A ___________ is a clause added to a standard contract of
insurance right from the start, which adds to or alters the
coverage offered. By contrast, an ____________________ alters
the coverage at some point while the contract is already in force.
correct answers Rider, endorsement
A ____________ is a group of individuals or companies who are
willing to undertake risk. correct answers Syndicate
A _________________ fact is one that, if known to the insurer,
might affect whether or not the insurer is willing to insure to
someone. correct answers Material
A business who fails to ensure that its building is safe for its
customers, leading to an injury of a customer, may be liable to
the customer because of ______________ liability. correct
answers Occupier's
A car owner has a duty to tell his insurer about
________________________________ to his situation, such as
selling the car. correct answers Material Changes
A customer need not disclose facts which, being
_________________________________________, should be
known to the insurer. It is the insurer's duty to find out certain
COMPLETE SOLUTIONS
_____________ to an insurance contract specify events or
circumstances which, if they happen, result in there being no
insurance coverage. correct answers Exclusions
________________ insurance protects your business against
loss or damage to specific business-related items such as
buildings, equipment, furniture, tools and inventory correct
answers Property
__________________________ are organization of at least 75
members which are licensed to enter into non-profit contracts of
life, accident, sickness, disability, and funeral insurance with
their members. correct answers Fraternal societies
___________________________ insurance protects a business
against any indirect losses or damages it may suffer through
events that temporarily prevent the business from carrying on as
usual. correct answers Business interruption
____________________________ are obligations under an
insurance contract which a customer must satisfy in order to
maintain coverage. correct answers Condition and warranties
________________________________ insurance requires
employers to contribute to an accident fund maintained by a
government board or agency that is used to pay to employees
who are hurt on the job. correct answers Workers
Compensation
, ___________________________________ insurance provides
payment if a person performing professional services gives
negligent advice that leads to a loss for a client. correct answers
Errors and omissions
A ___________ is a clause added to a standard contract of
insurance right from the start, which adds to or alters the
coverage offered. By contrast, an ____________________ alters
the coverage at some point while the contract is already in force.
correct answers Rider, endorsement
A ____________ is a group of individuals or companies who are
willing to undertake risk. correct answers Syndicate
A _________________ fact is one that, if known to the insurer,
might affect whether or not the insurer is willing to insure to
someone. correct answers Material
A business who fails to ensure that its building is safe for its
customers, leading to an injury of a customer, may be liable to
the customer because of ______________ liability. correct
answers Occupier's
A car owner has a duty to tell his insurer about
________________________________ to his situation, such as
selling the car. correct answers Material Changes
A customer need not disclose facts which, being
_________________________________________, should be
known to the insurer. It is the insurer's duty to find out certain
