Ch. 13 Quiz

Question 1

Applies if umbrella pays when the underlying policy does not provide coverage?

Answer 1

Self-Insured Retention

Question 2

Covers claims by employees that claim their legal rights as an employee were violated

Answer 2

Employment Practices
Liability

Question 3

A monetary guarantee that a principal performs an obligation (not insurance)

Answer 3

Bond

Question 4

The beneficiary of the obligation set forth in a contract. Bond written for their benefit

Answer 4

Obligee

Question 5

How long is the term of a bond

Answer 5

Contionuous

Question 6

Coverage that insures damage for the ocean vessel

Answer 6

Hull coverage

Question 7

Coverage for freight for which a fee has been paid

Answer 7

Cargo Coverage

Question 8

NFIP max limit for Single Family Dwelling –Regular Program

Answer 8

$250,000

Question 9

Program that insures basic property coverage that are marginal and not acceptable by the standard market

Answer 9

Fair Access to Insurance
Requirements

Question 10

Formed by several similar or related organizations to cover liability losses –licensed as an insurance company in one state

Answer 10

Risk Retention Groups

Question 11

Purchases Liability Insurance as a group to cover its members’ liability exposures

Answer 11

Risk Purchasing Group

Question 12

Protects crops from all natural conditions beyond the farmer’s control

Answer 12

Federal Crop Insurance

Question 13

Policy
similar toa Homeowners that provides comprehensive coverage for a farm

Answer 13

Farmowners

Question 14

Best policy to cover ATV’s, snowmobiles, RV’s

Answer 14

Recreational Vehicle Policy

Question 15

Standard NFIP Deductible

Answer 15

$1,000