Ultimate Business Insurance Quiz

10 Questions | Total Attempts: 172

SettingsSettingsSettings
Ultimate Business Insurance Quiz - Quiz

It is important to know about insurance. Be you a small business, or a budding business, and it is important to know what insurance entails. Take this quiz and learn more about the types of insurance and who they concern.


Questions and Answers
  • 1. 
    If you endorse your insurance policy, what do you do to it?
    • A. 

      Change 

    • B. 

      Fax

    • C. 

      Reinstate

    • D. 

      Cancel

  • 2. 
    The principle of insurance that provides that when a loss occurs, the insured should be restored to the approximate financial condition he or she occupied before the loss occurred, no better or no worse. What is it?
    • A. 

      Implied Warranties

    • B. 

      Indemnity

    • C. 

      Insurable Interest

    • D. 

      Insurance

  • 3. 
    The cost to replace an item of property at the time of loss, less an allowance for depreciation. What is it?
    • A. 

      Actual Cash Value 

    • B. 

      Replacement Cost

    • C. 

      Apparent Authority

    • D. 

      Absolute Liability

  • 4. 
    Which of the following is not a characteristic of a valid contract, which an insurance policy is?
    • A. 

      Competent parties

    • B. 

      Legal purpose

    • C. 

      Must be written 

    • D. 

      Offer and acceptance

  • 5. 
    Who owns a mutual insurance company?
    • A. 

      Executive Board

    • B. 

      Reciprocals

    • C. 

      Stockholders

    • D. 

      Insureds 

  • 6. 
    What is a condition or situation that presents a possibility of loss called?
    • A. 

      Loss

    • B. 

      Exposure 

    • C. 

      Speculative Risk

    • D. 

      Pure Risk

  • 7. 
    Which section in an insurance policy clarifies the meaning of certain terms used in the policy?
    • A. 

      Definitions 

    • B. 

      Agreements

    • C. 

      Exclusions

    • D. 

      Declarations

  • 8. 
    In a commercial auto policy, a motor carrier can be covered under the Truckers coverage form, when?
    • A. 

      Under no circumstance

    • B. 

      Under any circumstance

    • C. 

      If they transport goods for others by hire 

    • D. 

      Only in bad weather conditions

  • 9. 
    A form that verifies a policy has been written and provides a summary of the coverage provided under the policy is called?
    • A. 

      Fidelity Bond

    • B. 

      Claims made Form

    • C. 

      Certificate of Insurance 

    • D. 

      Conditional Contract

  • 10. 
    What is an insurance company that only writes one line of business called?
    • A. 

      Foreign Company

    • B. 

      Domestic Company

    • C. 

      MultiLine Company

    • D. 

      MonoLine Company 

Back to Top Back to top