Fundamentals Of Insurance
Exam Study Guide – Practice
Questions with Verified
Answers. GRADED A+. Latest
2026/2027 Update
when the insurer terminates an insurance policy, all of the following conditions
apply, except one. pick the EXCEPTION
a.the insured is entitled to 15 days' written notice of termination sent by
registered mail of 5 days' written notice personally delivered
b.the refund due the insured shall be calculated on a short rate basis
c.unless otherwise stated, the refund shall accompany the notice of termination
d.the refund shall be in the form of money, postal or Express company money
order or cheque payable at par - Answer✔✔ -b.the refund due the insured shall
be calculated on a short rate basis
under a policy of fire insurance, the insurer would be obligated to pay the
following g loss only:
a.fire damage caused to appliance following a sudden power surge
b.fire damage to insured buildings occurring during a rebellion
, c.damage to insured property due to radioactive contamination
d.loss to property caused by a process involving the application of heat -
Answer✔✔ -
b.fire damage to insured buildings occurring during a rebellion
when the insurer opts to repair, rebuild, or replace damaged property rather than
make payment I the form of a cash settlement, it must:
a.first provide the insured with the option of accepting or rejecting the proposed
basis of settlement
b.provide the insured with written notice of its intention to do so within 30 days
after receipt of proof of loss
c.seek the consent of the insured's mortgagee
d.advise the insured's broker or agent of its decision - Answer✔✔ -b.provide the
insured with written notice of its intention to do so within 30 days after receipt of
proof of loss
if a burning log rolls out of your clients fireplace grate across the hearthand onto
the rug in front, the loss to the rug is considered to be the result of a(n): a.direct
fire
b.indirect fire
c.friendly fire
d.hostile fire - Answer✔✔ -d.hostile fire
your client's furniture store is insured under a commercial property insurance
policy to which a replacement cost endorsement is attached. to qualify to
settlement on a replacement cost basis the insured must comply with all of the
following obligations, except one. pick the EXCEPTION
Exam Study Guide – Practice
Questions with Verified
Answers. GRADED A+. Latest
2026/2027 Update
when the insurer terminates an insurance policy, all of the following conditions
apply, except one. pick the EXCEPTION
a.the insured is entitled to 15 days' written notice of termination sent by
registered mail of 5 days' written notice personally delivered
b.the refund due the insured shall be calculated on a short rate basis
c.unless otherwise stated, the refund shall accompany the notice of termination
d.the refund shall be in the form of money, postal or Express company money
order or cheque payable at par - Answer✔✔ -b.the refund due the insured shall
be calculated on a short rate basis
under a policy of fire insurance, the insurer would be obligated to pay the
following g loss only:
a.fire damage caused to appliance following a sudden power surge
b.fire damage to insured buildings occurring during a rebellion
, c.damage to insured property due to radioactive contamination
d.loss to property caused by a process involving the application of heat -
Answer✔✔ -
b.fire damage to insured buildings occurring during a rebellion
when the insurer opts to repair, rebuild, or replace damaged property rather than
make payment I the form of a cash settlement, it must:
a.first provide the insured with the option of accepting or rejecting the proposed
basis of settlement
b.provide the insured with written notice of its intention to do so within 30 days
after receipt of proof of loss
c.seek the consent of the insured's mortgagee
d.advise the insured's broker or agent of its decision - Answer✔✔ -b.provide the
insured with written notice of its intention to do so within 30 days after receipt of
proof of loss
if a burning log rolls out of your clients fireplace grate across the hearthand onto
the rug in front, the loss to the rug is considered to be the result of a(n): a.direct
fire
b.indirect fire
c.friendly fire
d.hostile fire - Answer✔✔ -d.hostile fire
your client's furniture store is insured under a commercial property insurance
policy to which a replacement cost endorsement is attached. to qualify to
settlement on a replacement cost basis the insured must comply with all of the
following obligations, except one. pick the EXCEPTION
