Final Insurance Exam Prep

Question 1

In a BOP liberalization is valid within how many days prior to or during the policy period?

Answer 1

45 days

Question 2

What is the definition of loss?

Answer 2

An unforeseen, unintended reduction or destruction of economic value.

Question 3

What is Contributory Negligence?

Answer 3

If someone is injured on the job and takes their employer to court and they are found to be 1% at fault, the company does not have to pay out the damages.

Question 4

If an insurer cancels a policy it is known as a ____ _______ refund.

Answer 4

Pro Rata

Question 5

If an insured cancels a policy a _______ ______ refund is applied.

Answer 5

Short Rate
A short rate refund allows the insurer to deduct administrative costs for processing a refund that was requested by the insured.

Question 6

G buys a DP-3 Policy and pays an additional premium for the Personal Liability Supplement. Which of the following losses are most likely to be covered under this endorsement?
A - G has a hair styling business in her basement and a customer sues G for giving her a bad hair cut.
B - G writes insurance part-time and speaks incorrectly about a policy and the client is seeking damages
C - During a party at g’s house, a friend falls down the stairs and breaks his neck
D- G is driving to a client’s house and hits another car while parking.

Answer 6

During a party at g’s house, a friend falls down the stairs and breaks his neck

Question 7

What is The Attractive Nuisance law?

Answer 7

It requires landowners to take extra care to guard against conditions on their property that may attract the attention of children.