Study 8 Multiple Choice Quiz Flashcards
How is a change made to an existing policy?
Select one:
a. Endorsement
b. Binder
c. Cover note
d. Certificate of insurance
a. Endorsement
What does a broker issue to the insured to advise that insurance has been bound?
Select one:
a. Renewal certificate
b. Endorsement
c. Cover note
d. Certificate of insurance
c. Cover note
Which is included in the declarations page?
Select one:
a. Perils insured against
b. Policy conditions
c. General conditions
d. Amounts insured
d. Amounts insured
Which of the following is NOT part of the Insuring agreements section?
Select one:
a. Description of the property covered
b. Parties to the contract
c. Perils insured against
d. Circumstances under which the insured may receive the proceeds of insurance
b. Parties to the contract
Which of the following is a way to assign an insurance policy without insurer consent?
Select one:
a. A residence under an estate to an executor
b. Sale of a house
c. You gift your cottage to your daughter
d. Adding multiple loss payees to the policy
a. A residence under an estate to an executor
When does the short rate basis apply, for returning premiums on a cancelled policy?
Select one:
a. Insurer fails to give proper notice of termination
b. Insurer gives proper notice of termination
c. Insured terminates the policy before the end of the term
d. Insured and Insurer mutually consent to termination of the policy
c. Insured terminates the policy before the end of the term
What must an insurer do when they want to consider a policy void for misrepresentation?
Select one:
a. Send a standard letter to terminate the policy on a pro-rata basis
b. Send a standard letter to terminate the policy on a short-rate basis
c. Send a letter with the return of the entire premium
d. Pay any outstanding claims and then return premium on a pro-rata basis
c. Send a letter with the return of the entire premium
What is a manuscript policy?
Select one:
a. A policy that conforms to standard wording commonly used in the insurance industry
b. A written contract that provides evidence of the insurance policy
c. Wording in the policy is unique to the policy involved
d. Written document that states insurance is in effect, with general statement of the policy’s coverage.
c. Wording in the policy is unique to the policy involved
What do policy conditions specify?
Select one:
a.
The rights and duties of insured and insurer
b. Requirements which must be printed on all insurance policies for auto, sickness and health, and fire.
c. Coverage exclusions
d. Circumstances under which the insured may receive the proceeds of the insurance
d. Circumstances under which the insured may receive the proceeds of the insurance
What is a subscription policy?
Select one:
a. Single policy with multiple business locations
b. Single policy with multiple insurers
c. Multiple policies with multiple insurers
d. Multiple policies with a single insurer
b. Single policy with multiple insurers
An oral binder may be problematic because
Select one:
a. an oral binder is not legally binding
b. disputes may arise as to whether a contract was actually made and what provisions it contains.
c. brokers do not have binding authority unless the binder is in writing
d. insurers will deny coverage under an oral binder
b. disputes may arise as to whether a contract was actually made and what provisions it contains.
The section of an insurance policy where specific details are found which are required by law to be part of an insurance policy and must be printed on automobile, accident & sickness, and fire insurance policies, is the
Select one:
a. Policy conditions
b. Insuring agreements
c. Statutory conditions / Quebec general conditions
d. Policy terms
c. Statutory conditions / Quebec general conditions
A renewal receipt is
Select one:
a. a notice that the insurance policy is about to expire and needs to be renewed
b. a signed application from the insured, requesting the policy to be renewed
c. a notice that changes to the coverage need to be implemented prior to renewal
d. a certificate attesting that an insurance policy has been extended for another term
d. a certificate attesting that an insurance policy has been extended for another term
What is a renewal list?
Select one:
a. Letter sent to the insured, offering to renew their insurance
b. List sent to the broker by the insurer, identifying policies expiring in a given month
c. A short form certificate issued at renewal
d. A list of temporary coverages waiting for the completed policies to be issued.
b. List sent to the broker by the insurer, identifying policies expiring in a given month
Under what conditions may an assignment of policy proceeds occur without the insurer’s consent?
Select one:
a. An insurance policy when the insured property is sold
b. An insured vehicle when the title is transferred to a new owner
c. Assigning proceeds to a contractor for performing repairs to the damaged property
d. Upon the sale of a business
c. Assigning proceeds to a contractor for performing repairs to the damaged property
