Fundamentals of Insurance Exam Prep
Questions with 100% Correct Answers |
Latest Version 2024 | Verified
Three Main Categories of Risk - ✔✔
1) Personal Risk
2)Property Risk
3)Liability Risk
What are the FIVE elements of a contract?
A) Agreement, Risk, Loss, Consideration, Legality
B) Legal Capacity, Legality of Object, Consideration, Agreement, Genuine Intention
C) Agreement, Legal Capacity, Risk, Loss, Consideration.
D) None of the above - ✔✔B) Legal Capacity, Legality of Object, Consideration, Agreement, Genuine
Intention
What is needed for an agreement to exist? - ✔✔An offer made; AND an unconditional acceptance of the
terms of that offer
What do these abbreviations stand for?
1) T/a
2)D/b/a
,3)O/a - ✔✔1) Trading as
2) Doing Business as
3) Operating as
How long are insurance contracts usually written for?
A) 6 Months
B) 3 Years
C) 1 Year
D) For life unless cancelled and reissued - ✔✔C) 1 Year
An insurer is not required to provide coverage when losses are caused by:
A) Application of heat
B) Lightening / Electrical surges that cause damage to electrical devices
C) Contamination by radioactive material
D) All of the Above
E) A and C - ✔✔D) All of the Above
The onus to prove Misrepresentation rests with:
,A) The Insured
B) The Insurer
C) The Police
D) A Bailee for hire - ✔✔B) The Insurer
Material Facts can include:
A) Details concerning previous claims
B) Details regarding previous cancellation or refusal of Insurance
C) Details concerning existing property protection systems
D) All of the Above
E) A and B - ✔✔D) All of the Above
The following are examples of the Statutory Condition Requirements After Loss EXCEPT:
A) Required to give a complete inventory of destroyed or damaged property
B) Stating when and how the loss occurred
C) Stating the loss did not occur due to a negligent or willing act
, D) All of the above - ✔✔D) All of the above
Which of the following is NOT a Statutory Condition of Insuring the peril of fire?
A) Termination
B) Fraud
C) Salvage
D) Risk Summary - ✔✔D) Risk Summary
When the insured and insurer cannot agree on the value of the property after a loss, what Statutory
condition is in place to settle this matter?
A) Termination
B) Action
C) Appraisal
D) When loss is payable - ✔✔C) Appraisal
Under Statutory Condition When Loss is Payable what is the time frame the loss is payable within?
A) 60 days after completion of proof of loss
B) Less than 60 days after proof of loss if stated in contract
Questions with 100% Correct Answers |
Latest Version 2024 | Verified
Three Main Categories of Risk - ✔✔
1) Personal Risk
2)Property Risk
3)Liability Risk
What are the FIVE elements of a contract?
A) Agreement, Risk, Loss, Consideration, Legality
B) Legal Capacity, Legality of Object, Consideration, Agreement, Genuine Intention
C) Agreement, Legal Capacity, Risk, Loss, Consideration.
D) None of the above - ✔✔B) Legal Capacity, Legality of Object, Consideration, Agreement, Genuine
Intention
What is needed for an agreement to exist? - ✔✔An offer made; AND an unconditional acceptance of the
terms of that offer
What do these abbreviations stand for?
1) T/a
2)D/b/a
,3)O/a - ✔✔1) Trading as
2) Doing Business as
3) Operating as
How long are insurance contracts usually written for?
A) 6 Months
B) 3 Years
C) 1 Year
D) For life unless cancelled and reissued - ✔✔C) 1 Year
An insurer is not required to provide coverage when losses are caused by:
A) Application of heat
B) Lightening / Electrical surges that cause damage to electrical devices
C) Contamination by radioactive material
D) All of the Above
E) A and C - ✔✔D) All of the Above
The onus to prove Misrepresentation rests with:
,A) The Insured
B) The Insurer
C) The Police
D) A Bailee for hire - ✔✔B) The Insurer
Material Facts can include:
A) Details concerning previous claims
B) Details regarding previous cancellation or refusal of Insurance
C) Details concerning existing property protection systems
D) All of the Above
E) A and B - ✔✔D) All of the Above
The following are examples of the Statutory Condition Requirements After Loss EXCEPT:
A) Required to give a complete inventory of destroyed or damaged property
B) Stating when and how the loss occurred
C) Stating the loss did not occur due to a negligent or willing act
, D) All of the above - ✔✔D) All of the above
Which of the following is NOT a Statutory Condition of Insuring the peril of fire?
A) Termination
B) Fraud
C) Salvage
D) Risk Summary - ✔✔D) Risk Summary
When the insured and insurer cannot agree on the value of the property after a loss, what Statutory
condition is in place to settle this matter?
A) Termination
B) Action
C) Appraisal
D) When loss is payable - ✔✔C) Appraisal
Under Statutory Condition When Loss is Payable what is the time frame the loss is payable within?
A) 60 days after completion of proof of loss
B) Less than 60 days after proof of loss if stated in contract
