FREE INSURANCE AND STUDY GAMES ABOUT NV

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FREE INSURANCE AND STUDY GAMES ABOUT NV

INSURANCE EXAM

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -38 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: HO6

Answer:

Condo , personal property (broad) limited dwelling Question 2: What is the percentage of the average weekly wage, not to exceed the maximum established wage, that can be paid for a work related injury?

Answer:

The maximum percentage is 66 2/3% of the employee's average weekly wages.

Question 3: Fraternal benefit societies

Answer:

incorporated society or order, without capital stock. Insurance is offered only to their members. Mostly life and health.

Question 4: Reciprocal company

Answer:

all members insure each other and share the losses with each other "to give and take"

Question 5: strict liability

Answer:

commonly applied in product claims. Certain parties are held liable without regard to fault or negligence.If the claimant can prove that a product was defective and that the defect caused the injury, the manufacturer can be held strictly liable.

Question 6: HO5

Answer:

comprehensive form - open peril, personal property, dwelling and other structures

Question 7: Adhesion contract

Answer:

one party has a greater power than the other when drafting the contract

Question 8: HO8

Answer:

modified coverage - older homes, basic dwelling, personal property

Question 9: Solicitor

Answer:

like an agent, sells and may be authorized to collect premiums - cannot countersign

Question 10: Pure risk

Answer:

chance of loss only

Question 11: HO3

Answer:

Special form- open peril, dwelling & other structures - personal property (same as HO2, broad)

Question 12: Speculative Risk

Answer:

possibility for a gain and a loss

Question 13: Dwelling basic form -

Answer:

DP-1 - Coverage A dwelling, B other structures, C Personal Property & D Fair rental value

Question 14: HO4

Answer:

No dwelling Broad - contents broad form - tenants / renters coverage. Personal prop. broad

Question 15: loss ratio

Answer:

loss = incurred losses / earned premiums

Question 16: The Federal Terrorism Act does not cover

Answer:

Crop insurance

Question 17: Unilateral contract

Answer:

one sided Question 18: The extended coverage perils which are more broad under the DP-2 than DP-1 are:

Answer:

They are explosion, smoke, and vehicles.

Question 19: Residual market insurance

Answer:

government insurance - War risk, nuclear energy liability, flood , federal crop.

Question 20: Mutual Insurance company

Answer:

The insureds are owners of the company. As owners, they can vote to elect the management of the company. profits are returned to the insureds in the form of dividends or reductions in future premiums.

Question 21: Moral hazard

Answer:

loss on purpose

Question 22: Broker

Answer:

reps the insured.

Question 23: Personal contract

Answer:

A contract that insures the personal who owns the property.

Question 24: Lloyds Assoc.

Answer:

voluntary association of individuals who agree to share in insurance contracts.

Question 25: Morale hazard

Answer:

careless or irresponsible actions

Question 26: HO2

Answer:

Broad form - dwelling, personal property - extended coverage for vandalism and malice - named peril

Question 27: Dealers form.

Answer:

An inland marine coverage which covers the insured's merchandise held for sale, such property that is sold but not delivered, customers property in the care and custody of the insured, and property being

transported to or from the insured, is a:

Question 28: assessment companies

Answer:

insure small towns providing primarily fire and windstorm insurance. Assessment mutuals charge members a pro-rata share of the losses at the end of each policy period.