WI Property Insurance Exam with
\| \| \| \| \|
solutions
Part of the insured's consideration in a property insurance
\| \| \| \| \| \| \| \| \|
contract is the... \| \|
a) payment of a loss by the company
\| \| \| \| \| \| \|
b) payment of the premium by the insured
\| \| \| \| \| \| \|
c) provision of a grace period
\| \| \| \| \|
d) offer a preferred contract to the customer - CORRECT
\| \| \| \| \| \| \| \| \| \|
ANSWERS ✔✔b) payment of the premium by the insured
\| \| \| \| \| \| \| \|
The portion or the policy that specifies exactly what items will be
\| \| \| \| \| \| \| \| \| \| \| \|
covered and the dollar amounts of coverage is called the...
\| \| \| \| \| \| \| \| \|
a) insuring clause
\| \|
b) exclusions
\|
c) declarations
\|
d) conditions - CORRECT ANSWERS ✔✔c) declarations
\| \| \| \| \| \|
All of the following are essentials of a contract EXCEPT a...
\| \| \| \| \| \| \| \| \| \|
a) acceptance
\|
b) consideration
\|
c) offer
\|
d) written instrument - CORRECT ANSWERS ✔✔d) written
\| \| \| \| \| \| \| \|
instrument
,Which of the following would be considered incompetent under
\| \| \| \| \| \| \| \| \|
insurance law? \|
a) a fourteen-year-old honor student
\| \| \| \|
b) a man under the influence of alcohol
\| \| \| \| \| \| \|
c) a customer who buys a policy under duress
\| \| \| \| \| \| \| \|
d) all of the above - CORRECT ANSWERS ✔✔d) all of the above
\| \| \| \| \| \| \| \| \| \| \| \|
Which of the following grants express authority to an agent?
\| \| \| \| \| \| \| \| \|
a) fiduciary contract
\| \|
b) state provisions
\| \|
c) agent contract with the insurance company
\| \| \| \| \| \|
d) agents insurance license - CORRECT ANSWERS ✔✔c) agents
\| \| \| \| \| \| \| \| \|
contract with the insurance company
\| \| \| \|
What is the term for the entity that an agent represents regarding
\| \| \| \| \| \| \| \| \| \| \| \|
contractual agreements with third parties? \| \| \| \|
a) designee
\|
b) insured
\|
c) principal
\|
d) client - CORRECT ANSWERS ✔✔c) principal
\| \| \| \| \| \|
In insurance, an offer is usually made when...
\| \| \| \| \| \| \|
a) the agent delivers the policy to the policyholder
\| \| \| \| \| \| \| \|
b) the agent explains policy provisions to a potential applicant
\| \| \| \| \| \| \| \| \|
,c) the applicant submits an application for insurance
\| \| \| \| \| \| \|
d) the insurer approves the application and receives the initial
\| \| \| \| \| \| \| \| \| \|
premium - CORRECT ANSWERS ✔✔c) the applicant submits an
\| \| \| \| \| \| \| \| \|
application for insurance \| \|
A situation in which a person can only lose or have no change
\| \| \| \| \| \| \| \| \| \| \| \| \|
represents...
a) pure risk
\| \|
b) speculative risk
\| \|
c) adverse selection
\| \|
d) hazard - CORRECT ANSWERS ✔✔a) pure risk
\| \| \| \| \| \| \|
An insured intentionally did not disclose a material fact on an
\| \| \| \| \| \| \| \| \| \| \|
application for insurance. This would be considered...
\| \| \| \| \| \|
a) concealment
\|
b) lying
\|
c) coercion
\|
d) misrepresentation - CORRECT ANSWERS ✔✔a) concealment
\| \| \| \| \| \|
An insurance company is domiciled in Montana and transacts
\| \| \| \| \| \| \| \| \|
insurance in Wyoming. Which term best describes the insurer's
\| \| \| \| \| \| \| \| \|
classification in Wyoming? \| \|
a) domestic
\|
b) unauthorized
\|
c) foreign
\|
d) alien - CORRECT ANSWERS ✔✔c) foreign
\| \| \| \| \| \|
, For the purpose of insurance, risk is defined as...
\| \| \| \| \| \| \| \|
a) the guaranty of loss
\| \| \| \|
b) the cause of loss
\| \| \| \|
c) an event that increases the chance of loss
\| \| \| \| \| \| \| \|
d) the uncertainty or chance of loss - CORRECT ANSWERS ✔✔d)
\| \| \| \| \| \| \| \| \| \| \|
the uncertainty or chance of loss
\| \| \| \| \|
Which of the following would be considered a risk sharing
\| \| \| \| \| \| \| \| \| \|
arrangement?
a) stock
\|
b) mutual
\| \|
c) surplus lines
\| \|
d) reciprocal - CORRECT ANSWERS ✔✔d) reciprocal
\| \| \| \| \| \|
At the time of loss, the insured in a property and casualty policy,
\| \| \| \| \| \| \| \| \| \| \| \| \|
the insurer's claim settlement options include all of the following
\| \| \| \| \| \| \| \| \| \|
EXCEPT...
a) paying the value of the lost or damaged property
\| \| \| \| \| \| \| \| \|
b) replacing the property with other property of a lesser kind of
\| \| \| \| \| \| \| \| \| \| \| \|
quality
c) paying the cost of repairing or replacing the lost or damaged
\| \| \| \| \| \| \| \| \| \| \| \|
property
d) taking all or part of the property at an agreed or appraised
\| \| \| \| \| \| \| \| \| \| \| \| \|
value - CORRECT ANSWERS ✔✔b) replacing the property with
\| \| \| \| \| \| \| \| \|
other property of a lesser kind or quality
\| \| \| \| \| \| \|
\| \| \| \| \|
solutions
Part of the insured's consideration in a property insurance
\| \| \| \| \| \| \| \| \|
contract is the... \| \|
a) payment of a loss by the company
\| \| \| \| \| \| \|
b) payment of the premium by the insured
\| \| \| \| \| \| \|
c) provision of a grace period
\| \| \| \| \|
d) offer a preferred contract to the customer - CORRECT
\| \| \| \| \| \| \| \| \| \|
ANSWERS ✔✔b) payment of the premium by the insured
\| \| \| \| \| \| \| \|
The portion or the policy that specifies exactly what items will be
\| \| \| \| \| \| \| \| \| \| \| \|
covered and the dollar amounts of coverage is called the...
\| \| \| \| \| \| \| \| \|
a) insuring clause
\| \|
b) exclusions
\|
c) declarations
\|
d) conditions - CORRECT ANSWERS ✔✔c) declarations
\| \| \| \| \| \|
All of the following are essentials of a contract EXCEPT a...
\| \| \| \| \| \| \| \| \| \|
a) acceptance
\|
b) consideration
\|
c) offer
\|
d) written instrument - CORRECT ANSWERS ✔✔d) written
\| \| \| \| \| \| \| \|
instrument
,Which of the following would be considered incompetent under
\| \| \| \| \| \| \| \| \|
insurance law? \|
a) a fourteen-year-old honor student
\| \| \| \|
b) a man under the influence of alcohol
\| \| \| \| \| \| \|
c) a customer who buys a policy under duress
\| \| \| \| \| \| \| \|
d) all of the above - CORRECT ANSWERS ✔✔d) all of the above
\| \| \| \| \| \| \| \| \| \| \| \|
Which of the following grants express authority to an agent?
\| \| \| \| \| \| \| \| \|
a) fiduciary contract
\| \|
b) state provisions
\| \|
c) agent contract with the insurance company
\| \| \| \| \| \|
d) agents insurance license - CORRECT ANSWERS ✔✔c) agents
\| \| \| \| \| \| \| \| \|
contract with the insurance company
\| \| \| \|
What is the term for the entity that an agent represents regarding
\| \| \| \| \| \| \| \| \| \| \| \|
contractual agreements with third parties? \| \| \| \|
a) designee
\|
b) insured
\|
c) principal
\|
d) client - CORRECT ANSWERS ✔✔c) principal
\| \| \| \| \| \|
In insurance, an offer is usually made when...
\| \| \| \| \| \| \|
a) the agent delivers the policy to the policyholder
\| \| \| \| \| \| \| \|
b) the agent explains policy provisions to a potential applicant
\| \| \| \| \| \| \| \| \|
,c) the applicant submits an application for insurance
\| \| \| \| \| \| \|
d) the insurer approves the application and receives the initial
\| \| \| \| \| \| \| \| \| \|
premium - CORRECT ANSWERS ✔✔c) the applicant submits an
\| \| \| \| \| \| \| \| \|
application for insurance \| \|
A situation in which a person can only lose or have no change
\| \| \| \| \| \| \| \| \| \| \| \| \|
represents...
a) pure risk
\| \|
b) speculative risk
\| \|
c) adverse selection
\| \|
d) hazard - CORRECT ANSWERS ✔✔a) pure risk
\| \| \| \| \| \| \|
An insured intentionally did not disclose a material fact on an
\| \| \| \| \| \| \| \| \| \| \|
application for insurance. This would be considered...
\| \| \| \| \| \|
a) concealment
\|
b) lying
\|
c) coercion
\|
d) misrepresentation - CORRECT ANSWERS ✔✔a) concealment
\| \| \| \| \| \|
An insurance company is domiciled in Montana and transacts
\| \| \| \| \| \| \| \| \|
insurance in Wyoming. Which term best describes the insurer's
\| \| \| \| \| \| \| \| \|
classification in Wyoming? \| \|
a) domestic
\|
b) unauthorized
\|
c) foreign
\|
d) alien - CORRECT ANSWERS ✔✔c) foreign
\| \| \| \| \| \|
, For the purpose of insurance, risk is defined as...
\| \| \| \| \| \| \| \|
a) the guaranty of loss
\| \| \| \|
b) the cause of loss
\| \| \| \|
c) an event that increases the chance of loss
\| \| \| \| \| \| \| \|
d) the uncertainty or chance of loss - CORRECT ANSWERS ✔✔d)
\| \| \| \| \| \| \| \| \| \| \|
the uncertainty or chance of loss
\| \| \| \| \|
Which of the following would be considered a risk sharing
\| \| \| \| \| \| \| \| \| \|
arrangement?
a) stock
\|
b) mutual
\| \|
c) surplus lines
\| \|
d) reciprocal - CORRECT ANSWERS ✔✔d) reciprocal
\| \| \| \| \| \|
At the time of loss, the insured in a property and casualty policy,
\| \| \| \| \| \| \| \| \| \| \| \| \|
the insurer's claim settlement options include all of the following
\| \| \| \| \| \| \| \| \| \|
EXCEPT...
a) paying the value of the lost or damaged property
\| \| \| \| \| \| \| \| \|
b) replacing the property with other property of a lesser kind of
\| \| \| \| \| \| \| \| \| \| \| \|
quality
c) paying the cost of repairing or replacing the lost or damaged
\| \| \| \| \| \| \| \| \| \| \| \|
property
d) taking all or part of the property at an agreed or appraised
\| \| \| \| \| \| \| \| \| \| \| \| \|
value - CORRECT ANSWERS ✔✔b) replacing the property with
\| \| \| \| \| \| \| \| \|
other property of a lesser kind or quality
\| \| \| \| \| \| \|
