Property and Casualty Principles Review Test Rated A+

Property and Casualty Principles Review Test Rated A+ A - protect the lender's financial interest in the car in the event it is damaged or destroyed ️In order to get a loan to buy a car, John had to obtain insurance on the car. The purpose of the insurance requirement is to A - protect the lender's financial interest in the car in the event it is damaged or destroyed B - create an additional source of revenue for the lender C - include the insurance company as a cosigner on the loan in case John defaults on his payments D - prove to the lender that John has a sense of responsibility toward his obligations B - Contributes to the nation's economic well-being ️The insurance industry employs millions of people and pays billions in tax revenue to the federal and statement government. These are 2 examples of how the insurance industry A - helps prevent losses B - Contributes to the nation's economic well-being C - Provides financial security for insureds D - Restores economic stability after catastrophic losses A - pay the insurer for the insurance policy ️You ask an insurance producer, "How much is the premium for this policy?" You are interested in knowing how much you would A - pay the insurer for the insurance policy B - have to pay in additional charges to obtain an excluded coverage C - Receive as a refund if you decide to cancel the policy if you no longer require the coverage D - collect for any loss you might sustain D - accidental in nature ️George wants insurance to indemnify himself for the gradual wearing out of the roof on his house. Which answer choice below best completes the reason that such a loss would be difficult to insure? A - a risk to a sufficient number of people B - calculable C - catastrophic D - accidental in nature B - Danny has no insurable interest in the United Nations building ️Danny decides that he would like to get a piece of the action by buying part of an insurance policy covering the United Nations building in New York. He figures that if the building burns, he would collect some money. Of course, this is an impossible plan because A - the principle of subrogation prevents the payment of money to those not directly involved with the loss B - Danny has no insurable interest in the United Nations building C - insurance is primarily based on the theory of substituting certainty for uncertainty D - the United Nations building is 1 of the world's truly fireproof buildings. B - The insured should be restored financially to approximately the same position she was in prior to the loss. ️The principle of indemnity is expressed in which of the following sentences? A - A loss must be large enough to create a financial burden for the insured in order for it to be insurable B - The insured should be restored financially to approximately the same position she was in prior to the loss. C - The insured should always receive less then the cost of a loss so he does not profit from the loss. D - An insured should always receive payment equal to the limits set forth in the policy. A - joint insurable interest ️Jared and Miranda Ashram purchased a $150,000 house. They paid $30,000 as a down payment and borrowed the remaining $120,000. In regard to the insurance on the Ashrams' home, this is an example of A - joint insurable interest B - compounded equity C - subrogation D - indemnification C - life insurance ️The type of insurance designed to handle the risk of financial loss due to