Ultimate Business Insurance 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.
- 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
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