Practice Exam questions (mixed)

Question 1

Which policy is most similar to the Mobile Homeowner’s form?

Answer 1

the basic homeowners form

Question 2

One condition for a contract to be valid is consideration. what would be the consideration be for insurance contracts?

Answer 2

the premium

Question 3

The actual cash value of an item is best described as

Answer 3

fair market value

Question 4

A bailee is someone who

Answer 4

has someone else’s property in his possession for repairs

Question 5

Deductibles on auto insurance usually does not apply to…

Answer 5

fire and lightning

Question 6

If you spill coffee on an antique chair this will most likely be covered under

Answer 6

loss assessment coverage.

Question 7

on homeowner’s policy who in included in the definition of the insured

Answer 7

spouse and the relatives of either while residing in the house.

Question 8

The minimum coverage that must be provided on a fire policy is

Answer 8

fire, lightning, and limited explosion

Question 9

An insured drives his car into the side of his house by accident. which policy will pay for the damage to the house?

Answer 9

Home- coverage A - Dwelling building

Question 10

special assessments can be levied against unit owners if the amount available under the corporation building policy is insufficient. what is not a situation were loss assessment coverage would apply?

Answer 10

upgrading

Question 11

The roof of a condominium is damaged by an insured peril, but the building policy does not contain sufficient insurance to pay for the complete loss. to cover such a situation, an insured should have…

Answer 11

unit additional protection coverage

Question 12

How does the Extended Coverage (EC) Endorsement supplement the fire policy?

Answer 12

add perils covered, increases limit, adds coverage for additional property…

Question 13

according to policy statutory conditions, after a loss, an insured

Answer 13

must provide the insurer with a proof of loss as soon as practicable

Question 14

statutory conditions do not deal with…

Answer 14

premium

Question 15

in which case would assignment of an insurance policy be automatic

Answer 15

bankruptcy and there is an appointed trustee

Question 16

which of the following limits does not appear on a commercial general liability policy

Answer 16

special limit…

Question 17

under comprehensive homeowner’s policy, special limits of insurance apply to jewelry and coin collections

Answer 17

for any non named perils, such as theft losses

Question 18

Which one of the following is found under coverage f coverage of the homeowners policy

Answer 18

ambulance service cost on injured on insured property

Question 19

If you accidentally spill a glass of red wine on an antique sofa, this is most likely covered under

Answer 19

a comprehensive homeowner’s policy

Question 20

which is a peril under cyber risk policies?

Answer 20

unintentional transmission of a computer virus

Question 21

which is the best describes a commercial property floater?

Answer 21

covers stock, equipment and tenant’s improvements

Question 22

which best describes glass insurance?

Answer 22

covers breakage from everything except fire, war and nuclear damage.

Question 23

which is true with regards to boiler and machinery, what does it cover

Answer 23

covers boilers and pressure vessels.

Question 24

define commission

Answer 24

the share of the premium allowed to the broker or agent for having produced the business

Question 25

an insured loss rental income because of property damage, the rental income will be covered under

Answer 25

additional living expenses under fair rental value

Question 26

how long does the insurer have to advise the insured in writing of its intention to rebuild or replace property damage after receipt of the proof of loss?

Answer 26

30 days

Question 27

What is not insured under dwelling section of a homeowner's policy

Answer 27

garage and sheds

Question 28

what are the three classes of insurance

Answer 28

personal, commercial, and special

Question 29

who is the principal in a bid bond?

Answer 29

contractor

Question 30

ABC company manufactures paper, fire damage destroyed all their paper products. what inherent hazard is associated with paper products?

Answer 30

damageable

Question 31

office is destroyed, they want to continue business with a temporary location, which coverage provides this

Answer 31

extra expense insurance

Question 32

which is covered under equipment on the commercial building, equipment and stock form?

Answer 32

all machinery on the property

Question 33

a surety bond protects the

Answer 33

obligee

Question 34

in the event of an accident benefits claim, when do payments for the income replacement benefits start?

Answer 34

1 week following the date of loss

Question 35

which coverage on an auto policy will cover total theft?

Answer 35

all perils, comprehensive, specified perils

Question 36

What is the formula when subject to coinsurance clause, to find amount the policy will pay

Answer 36

did/should times the loss= amount paid out also how much insurance you paid for divided by how much insurance you should have paid for. times the damage loss in the claim

Question 37

after what age (dependants) is legal liability no longer available when actions are intentional

Answer 37

12

Question 38

Which limits appear on a commercial general liability policy

Answer 38

aggregate limit, each occurrence limit, and personal injury limit.

Question 39

if you accidentally spill a drink on an antique, this most likely will be covered under...

Answer 39

a comprehensive homeowner's policy