OHIO PERSONAL LINES INSURANCE EXAM

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OHIO PERSONAL LINES (INSURANCE EXAM)

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Proximate Cause

Answer:

The primary cause of a loss

Question 2: Additional Coverages

Answer:

Coverages that are automatically included in property policies without an additional premium. Includes such items as debris removal, collapse, and fire department service charge

Question 3: Waiver

Answer:

Voluntary surrender of a known right, claim or privilege

Question 4: Misreprensentation

Answer:

False statement contained in the insured's application and does not usually void coverage or the policy

Question 5: Salvage Value

Answer:

The amount for which property can be sold at the end of its useful life

Question 6: Flat Cancellation

Answer:

A cancellation of insurance that is retroactive to the effective date of the policy. No coverage is provided and the insurer must refund the policy premium paid by the insured

Question 7: Personal Injury Liability

Answer:

The legal liability arising from the wrongful conduct of the insured resulting in injuries to ones mental health or emotional well being

Question 8: Warranty

Answer:

Statement in the application that are guaranteed to be true in all aspects

Question 9: Insuring Agreement

Answer:

The insurers promise to pay the insured. Also includes parties to the contract; effective and renewal dates; description of coverage; perils

Question 10: Deductible

Answer:

The specified amount of each loss that the insured must bear

Question 11: Domestic

Answer:

Insurer organized under the laws of the resident state

Question 12: FCRA

Answer:

Protects consumer privacy by ensuring that any data collected by an insurer remains confidential, and is accurate, relevant, and used for a proper and specific purpose

Question 13: Liability

Answer:

A type of insurance that provides coverage for most unintentional torts and excludes intentional torts

Question 14: Liberalization

Answer:

A clause that specifies that if the insurer broadens coverage with no increase in premium, that broadening of coverage will apply to existing policies without the need for an endorsemnt

Question 15: Right of Salvage

Answer:

The right of the insurer to take possession of damaged property after paying for its loss

Question 16: Bailee

Answer:

A person or any organization to which property has been entrusted, usually for repairs, servicing or storage.

Question 17: Concealment

Answer:

The willful holding back or secretion of material facts pertinent to the issuance of insurance or claim

Question 18: Express

Answer:

Authority that is written into the producers agency contract

Question 19: Exclusions

Answer:

Perils that are not covered

Question 20: Short Rate Cancellation

Answer:

A cancellation that happens when the insured cancels the policy before its expiration date

Question 21: Indirect Loss

Answer:

Occurs as the consequence of a direct loss

Question 22: Consideration

Answer:

The exchange of an act or promise

Question 23: Vicarious

Answer:

Liability that is assigned to one party for the conduct of another,based solely on a relationship between the two. i.e.; employer and employee

Question 24: Apparent

Answer:

Authority created when the agent exceeds express authority and the insurer does not respond

Question 25: Fraud

Answer:

An intentional deception of the truth in order to induce another party with something of value or to surrender a legal right

Question 26: Reduction

Answer:

Minimizing the chance of a loss without eliminating the risk altogether

Question 27: Pro Rata

Answer:

If an insurer cancels an insurance policy before its expiration date, the refund is made on this basis:

Question 28: Coinsurance

Answer:

Policy provision that requires the insured maintain a certain limit of insurance coverage in order to avoid a penalty in the event of a partial loss

Question 29: General Damages

Answer:

Are compensatory damages for pain, suffering, mental anguish, disfigurement, and similar types of losses that cannot be objectively calculated