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Question 1

Moral, Morale, Physical, and Legal are all types of what?

Answer 1

Hazards

Question 2

A _______ hazard occurs when an insured person consciously and deliberately acts in a way that is
more likely to result in a loss.

Answer 2

Moral

Question 3

________ hazards occur when someone

exhibits riskier behavior and becomes indifferent to losses because he has insurance.

Answer 3

Morale

Question 4

__________ hazards are physical conditions that increase the chance of loss.

Answer 4

Physical

Question 5

______ hazard refers to when the chances of loss increase because of legal action

Answer 5

Legal

Question 6

Fraud is the act of deliberately perverting, altering, or misrepresenting the truth, or willfully
deceiving an insurer in order to realize financial gain. True or False

Answer 6

True

Question 7

What are the two types of Fraud?

Answer 7

Hard and Soft

Question 8

Define Hard Fraud

Answer 8

Deliberately planning or faking a loss

Question 9

Define Soft Fraud

Answer 9

Exaggerating a claim to inflate the indemnity

Question 10

Proximate Cause states that when there is an unbroken chain of events between
an occurrence and a loss, then the loss is a result of the original occurrence. True or False

Answer 10

True

Question 11

An _________ is an event, incident, or condition that causes damage.

Answer 11

Occurrence

Question 12

______ ______ is physical harm to tangible property

Answer 12

Direct Loss

Question 13

Indirect Loss is an economic loss that results from the direct, or physical, loss. True or False

Answer 13

True

Question 14

An insurance _____ is defined as the insured’s official

demand for payment from the insurer in accordance with the terms of a policy.

Answer 14

Claim

Question 15

What is the difference in first party and third party claim?

Answer 15

First Party Claim - claim filed by PH against their own insurance policy
Third Party Claim - claim filed against an insurance policy by anyone other than the person named on that policy

Question 16

1. Filing a claim
2. Acknowledgement
3. Investigation
4. Evaluation
5. Adjustment
   these are all part of what process?

Answer 16

The Claims Process

Question 17

After receiving a claim, what must an insurer do?

Answer 17

Acknowledge receipt of the claim.

Question 18

Who investigates the claim to determine if it is valid or not?

Answer 18

The Adjuster

Question 19

Who accepts or rejects the claim?

Answer 19

The insurer

Question 20

_________ ________ means that the policyholder has direct financial interest in the insured item,
usually as a result of property rights, contract rights, or potential legal liability.

Answer 20

Insurable Interest

Question 21

What must you have in order to insure a property?

Answer 21

Insurable Interest

Question 22

What does Lender Interest represent?

Answer 22

The lender’s financial stake in an insured item

Question 23

Can a lender change or cancel an insurance policy?

Answer 23

No

Question 24

____________ is the transfer of rights that allows the insurer to recover its losses after it has paid the insured for a claim.

Answer 24

Subrogation

Question 25

When a policyholder is indemnified for a loss, they can collect payment for that loss from someone else. True or False

Answer 25

False

Question 26

Subrogation only applies to the amount actually paid by the insurer, which is limited by the policyholders limits and deductibles. True or False

Answer 26

True

Question 27

What does a waiver of subrogation do?

Answer 27

Takes away the insurer’s right to recover its losses after paying a claim