FREE AND STUDY GAMES ABOUT PC INSURANCE PREP

PDF Download FREE AND STUDY GAMES ABOUT P&C INSURANCE PREP

EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -155 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: STARR Method of handling risk

Answer:

?Sharing ?Transfer ?Avoidance ?Retention ?Reduction

Question 2: Gramm-Leach-Bliley Act (15 USC Section 206)

Answer:

? A consumer is anyone about whom information is collected.? A customer has an ongoing relationship with a financial institution.? The opportunity to opt out must be offered by financial institutions when an account is established and annually

Question 3: Unilateral

Answer:

?only one legally enforceable promise made

Question 4: Indirect

Answer:

?consequence of the direct loss (smoke damaged other items in home, lost work wages)

Question 5: Insureds

Answer:

?Named Insured - in the declarations ?First-named insured - first in the declarations (commercial policies when multiple partners) ?Insureds - by definition ?Additional insured - added by endorsement

Question 6: Types of Property

Answer:

? Real property-buildings ? Personal property-moveable contents

Question 7: Perils (Causes of Loss) Broad

Answer:

?

- All basic perils plus:

Falling objects Accidental discharge of water (not flood) Weight of ice, sleet, or snow Freezing of plumbing (if care used) Artificially generated current Sudden tearing and breaking of heating and cooling system

Question 8: Liability Endorsements

Answer:

? Watercraft endorsement-coverage for: > 50 horsepower; sailboats > 26' in length. ? Business pursuits endorsement ? Personal injury endorsement - Libel, slander, false arrest, invasion of privacy? Permitted incident occupancies endorsement

Question 9: Homeowner Policies

Answer:

? HO-2-Broad Form: owner occupant

? HO-3-Special Form: owner occupant

? HO-4-Tenants or Renters

? HO-5-Comprehensive Form: owner occupant

? HO-6-Condominium Owners ? HO-8-Modified Form

Question 10: Insured Perils

Answer:

? Named peril-only perils on the list are covered ? Open (special) perils-covers all perils except those specifically excluded

Question 11: Federal government provides residual marker insurance

Answer:

?insurance from the state or federal government war risk insurance nuclear energy insurance flood insurance federal crop insurance unemployment insurance workders compensation

Question 12: Fraud

Answer:

?intentional act to cheat another

Question 13: Policy Sections (DICEE)

Answer:

?Declarations - who, what, when, where, and how much ?Insuring agreement(s) - promise to pay and perils covered ?Conditions - rules for the policy ?Endorsement - changes to the original policy ?Exclusions - not covered

Question 14: Cancellation

Answer:

? Cancellation by the insurance company

• During the first 60 days for any reason-minimum 10 days' notice - after 60 days-min 30 days' notice

Material misrepresentation Substantial change in the risk - Nonpayment of premium-10 days' advance notice

Question 15: Standard Mortgage or Loss Payable Clause

Answer:

? Allows lender to pay the premium ? Lender entitled to receive notice if policy is to be canceled ?Lender can file a claim ? Lender protected from negligent or dishonest acts ?Lender only entitled to receive payment up to the amount of the debt

Question 16: Underwriting

Answer:

? Process of evaluating a risk ? Field underwriting is performed by the agent or producer ? Application is the primary source of information ? Company underwriters decide if a policy is to be issued

Question 17: Conditional

Answer:

?insured must pay the premium for coverage and file a claim if a loss occurs

Question 18: Property Insurance

Answer:

?Covers building and personal belongings ?Loss caused by covered peril ?First party losses - insurer pays insured

Question 19: Surplus lines

Answer:

?insurance sold by unauthorized/non-admitted insurers if on the states approved list of surplus insurers ?Can only be sold to certain high-risk insureds ?Cannot be sold solely for a cheaper rate than licensed/admitted insurers

Question 20: Personal

Answer:

?contract between the insurance company and insured, cannot be changed to someone else

Question 21: Fair Credit Reporting Act (FCRA)

Answer:

? All insurers and producers must comply ? Notice to the applicant within three days after report was requested ? Maximum penalty-$5,000, 1 year in prison, or both

Question 22: Non-admitted or unauthorized

Answer:

?insurance company not required to have a certificate of authority from the state