Study 7

Question 1

a request by an insured for insurance

Answer 1

application

Question 2

an applicant is obligated to disclose _______ and uphold ____________

Answer 2

Material Facts, Utmost good faith

Question 3

A factual statement about risk

Answer 3

Representation

Question 4

Non Disclosure =

Answer 4

Concealment

Question 5

Staying Silent when you know you should say something

Answer 5

Non Disclosure

Question 6

Not asking so not telling

Answer 6

Non Disclosure

Question 7

The person or party designated in the policy as the insured.

Answer 7

Named Insured

Question 8

Effective date, Expiry Date and Term are all listed on the

Answer 8

Policy Term

Question 9

What is being insured, where it is located and it’s use are located on the

Answer 9

Subject of Insurance

Question 10

Someone other then the named insured who the proceeds will be paid

Answer 10

Loss Payee

Question 11

This is a special class of payee

Answer 11

Mortgagee

Question 12

A clause in an insurance policy that stipulates the rights and obligations of the insurer and the mortgagee

Answer 12

Mortgage Clause

Question 13

A record of frequency and type of loss

Answer 13

Loss history

Question 14

This must be reported in the loss history even if there was no claim

Answer 14

Loss

Question 15

Prior insurance is one of the eight questions asked about on an insurance application. True/False

Answer 15

True

Question 16

what two reasons would an underwriter be interested in Prior insurance

Answer 16

if there was a gap in insurance, and if previous insurance was declined, or refused renewal

Question 17

Summary from a broker including previous communication or relationship between them and the client, a time where the broker can advocate for a client or advise of known risks

Answer 17

Brokers Summary

Question 18

The law requires all ____________ be signed

Answer 18

Auto insurance

Question 19

The process of establishing rates for each class of insurance

Answer 19

Ratemaking

Question 20

Ratemaking is done by __________

Answer 20

Actuary

Question 21

A classification of risks is established based on

Answer 21

Types of objects insured and Hazards of exposure

Question 22

Portion of the total premium that is needed to pay the expected losses. It does not take into account money needed for company expenses

Answer 22

Pure Premium

Question 23

an additional charge included in an insurance rate to reflect a hazard not contemplated in the basic rate for the class

Answer 23

Loading

Question 24

Underwriters review risks and decide one of three possible options

Answer 24

Accept the risk, Accept the risk subject to certain conditions or Reject the risk

Question 25

Danger of loss is

Answer 25

Exposure