Exam practice mis. 2

Question 1

What is a cover note?

Answer 1

a confirmation that insurance is in effect

Question 2

the insuring agreements of an insurance policy contains what components

Answer 2

perils insured against

Question 3

what happens to the premium paid on a policy when the policy is made void?

Answer 3

the entire premium is returned to the insured

Question 4

which of the following subjects of insurance is both tangible and intangible

Answer 4

automobile

Question 5

what is an essential element of good client service for a broker or agent?

Answer 5

adequate range of coverages

Question 6

tenants legal liability coverage response to damages caused by what peril

Answer 6

fire

Question 7

What costs would be covered under the defence, settlement, supplementary payments of a homeowners policy

Answer 7

expenses incurred by the insurer

Question 8

what insurance principle is preserved with the use of pair and set clause?

Answer 8

indemnity

Question 9

what is usually found under a tenants policy?

Answer 9

deductible

Question 10

what defines the units and common elements of a condominium corporation and specifies the boundaries of each of them?

Answer 10

Condominiums declaration

Question 11

which of the following items would be included within the definition of condominium unit

Answer 11

storage lockers, custom-made closets (not utilities or windows, or floors, or beams)

Question 12

what type of loss assessment coverage is excluded under a condominium unit owners policy

Answer 12

special assessment levied due to the breach of a policy condition by the condominium corporation

Question 13

what should underwriters consider when offering coverage for a cottage with many features of a primary residence

Answer 13

providing additional coverage limits for outbuildings based on a percentage of the building amount

Question 14

regarding auto application process what must the insurer send to the insured

Answer 14

the filled application

Question 15

what info about the automobile section of the auto insurance application is included

Answer 15

body type

Question 16

which of the following legal costs will the insurer cover under the third party liability section of auto policy

Answer 16

post-judgement interest on the entire settlement, plus additional cost of interest on the insured portions of a court judgement

Question 17

under what circumstances would an insurer waive its right to subrogation for damages to an insured vehicle involved in a loss

Answer 17

a friend who used the described auto with the insureds permission to run errands and collided with another auto

Question 18

if the insurer received a proof of a loss and chooses not to repair or replace, how many days do they have to pay the claim?

Answer 18

60 days

Question 19

What coverage does a driver retain when an excluded driver endorsement (OPCF28) has been attached to that driver?

Answer 19

certain accident benefits

Question 20

which type of adjuster is appointed by the insurer to assist in the settlement of a claim?

Answer 20

independent adjuster

Question 21

what describes the term consideration as an element of a contract

Answer 21

evidence that the parties intend to be bound by the agreement

Question 22

the insuring agreements of an insurance policy include which of the following components

Answer 22

perils insured against

Question 23

Why do underwriters review applicant’s personal information when making their decision on a risk?

Answer 23

determine if there is a moral hazard

Question 24

inflation coverage extensions…

Answer 24

increases the amount of coverage on a policy renewal

Question 25

damages caused by rust are excluded under which general category of exclusions

Answer 25

losses not accidental

Question 26

what is an exclusion of personal liability section of homeowners policy

Answer 26

damage to property in the insured’s care, custody or control

Question 27

What additional condition under a homeowners policy required the insured, in the event of a loss, to do whatever is reasonably necessary to protect or recover the insured property

Answer 27

sue and labour

Question 28

why are tie downs used on mobile homes

Answer 28

improve windstorm resistance

Question 29

how does an umbrella policy benefit an insured?

Answer 29

broadens coverage and provides worldwide territorial limits