Multiple C Practice Quiz

Question 1

What is the major difference between a stock company and a mutual company

Answer 1

Ownership

Question 2

Which of the following insurance options would be considered a risk sharing arrangement

Answer 2

Reciprocal

Question 3

What is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract

Answer 3

Warranty

Question 4

If a court ordered payment for a loss that was not covered in the policy even if it was clearly worded, it would be an example of which legal concept

Answer 4

Reasonable expectations

Question 5

The part of a property policy that shows the amount of insurance, premium, and policy term is the

Answer 5

Declarations

Question 6

a mandatory part of an insurance policy that varies with each individual policy?

Answer 6

Declarations

Question 7

With regard to fire insurance premiums, structures with which kind of construction would most likely have the most favorable premium rate for the peril of a fire

Answer 7

Fire resistive

Question 8

A beauty parlor burns to the ground. What type of loss is this to the owner

Answer 8

Direct

Question 9

The policy provision found in property insurance policies that prevents the insured from collecting twice for the same loss is called

Answer 9

Subrogation