What Do You Know About Fire And Casualty Insurance? Trivia Quiz
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What do you know about Fire and Casualty Insurance and what falls under it? In case of fire, come loss of property and a lot of substantial damage and with this, comes the importance of Fire and Casualty Insurance to assist in the coverage in terms of loss of property and casualty in regards to people and human life.
- 1.What course of action does a party to a contract have if the other party is found to be in breach of that contract ?
- A.
Nothing, unless the injured party can prove the damages are substantial
- B.
Reasonable attorney fees and costs only
- C.
Damages for breach, reasonable attorney fees and costs
- D.
Damages caused by the breach only
- 2.A representation in an insurance contract qualifies as which of the following ?
- A.
An amendment
- B.
An express warranty
- C.
A policy provision
- D.
An implied warranty
- 3.What does it mean if an agen'ts license is inactive ?
- A.
The agent can transact insurance business if it is done with another agents approval
- B.
The agent can transact any insurance business for which the agent is licensed
- C.
The agent can still transact insurance business in CA, but not in any other state until it is reactivated
- D.
The agent cannot transact any insurance business for which a valid, active license is required
- 4.The ordinance or law exclusion found in property policies such as the commercial property coverage, and in the homeowner's policy have the following effect:
- A.
It warrants that an insured has not knowingly violated an ordinance or law
- B.
The insured may not remove or modify the effect of the exclusion
- C.
It reduces the coverage on any loss if the loss was caused by the insured violating the ordinance or law
- D.
It excludes that part of the loss resulting from the enforcement of a building ordinance or law
- 5.Extra expense insurance covers:
- A.
Increased expense of repairing property to appreciated assets
- B.
The extra expense that a business incurs to continue a business while damage to the premises are being restored
- C.
The loss of profit a business incurs when it is shut down after a loss by a covered peril
- D.
Payroll and other overhead incurred when a business is shut down after a loss
- 6.A plate glass/glass coverage form is needed by some insureds. Which of the following statements about the coverage for the peril of glass breakage in commercial property for a "building and personal property" basic, broad and special causes of loss forms is true ?
- A.
There is limited glass breakage coverage in both of the broad and special forms
- B.
There is limited glass breakage coverage in the basic form
- C.
No policy limits apply to glass breakage coverage in the special form, all named perils
- D.
There is no glass breakage coverage in the broad or special forms
- 7.In the state of CA, no rate will remain in effect if it is considered to be any of the following, except:
- A.
Impartial
- B.
Unfairly discriminatory
- C.
Excessive
- D.
Inadequate
- 8.The amount paid for damage to property which is equal to the price for which it could have been sold is
- A.
Actual cash value
- B.
Replacement amount
- C.
Stated amount
- D.
Market Value
- 9.The limited Mexico endorsement applies to trips to Mexico with a duration of
- A.
7 days or less
- B.
10 days or less
- C.
2 days or less
- D.
14 days or less
- 10.Which of the following types of coverage would pay for losses which occurred during the policy period and are found for up to one year after policy termination?
- A.
Occurrence
- B.
Loss sustained
- C.
Claims made
- D.
Discovery
- 11.Which coverage is needed to protect physicians, surgeons, and dentists for their professional activities
- A.
Commercial general liability
- B.
Malpractice coverage
- C.
Employer's liability
- D.
Errors and omissions coverage
- 12.What must an insurer do who accepts an application from an agent who is not specifically appointed that insurer, and then issues a policy from that application?
- A.
The agent must become an employee of the company within 30 days ofpolicy issuance
- B.
Name the agent to the list of the company's approved agents
- C.
Send the agent an appointment approval notice within 30 days of policy issuance
- D.
Forward to the commissioner a notice of appointment within 14 days of receipt of application
- 13.Under a major medical plan, coinsurance equals a percentage
- A.
The employee pays after the deductible is met
- B.
The plan pays after the deductible is met
- C.
The employer pays after the deductible
- D.
The spouses' insurance company pays after the deductible
- 14.If an insured borrows a neighbor's vehicle to run a personal errand, how do the policies respond in the event of an auto accident ?
- A.
Both policies respon on a pro-rate basis
- B.
Only the neighbor's policy provides coverage; there is no coverage by the driver's policy
- C.
The driver's policy is primaty and the neighbor's policy is excess
- D.
The neighbor's policy is primary and the driver's policy is excess
- 15.The equipment dealer's coverage form covers all of the following types of property, except:
- A.
Dealer's used stock
- B.
Motor vehicles designed for highway use
- C.
Customer's equipment in for service
- D.
Dealer's new stock
- 16.A self-insured group qualifies for stop-loss after claims:
- A.
Equal the anticipated loss per month
- B.
Meet the out-of-pocket expense during the policy period
- C.
Exceed a specified limit in a set period of time
- D.
Average the maximum amount stated on the master policy
- 17.A reporting form is used for property insurance
- A.
To maintain the correct limits of coverage without over or under insuring when the value of volume of the property varies during the policy term
- B.
To report losses and adjust insurance in force to conform
- C.
When the insured's premises are subject to periodic safety inspections
- D.
To establish a guaranteed amount of insurance based upon a report of values submitted the beginning of the policy term
- 18.All of the following contribute to the rising cost of Worker's Compensation Insurance, except:
- A.
The growing population
- B.
Employers who fail to secure the payment of workers compensation as required by law
- C.
Under-reported payroll by employers
- D.
Fraudulent claims
- 19.Which type of exposure can be best defined as a condition or situation where the exposure to finance loss is presented to an individual or family from causes such as injury, disability, death, sickness, or unemployment ?
- A.
Personnel loss exposure
- B.
Personal property loss exposure
- C.
Personal loss exposure
- D.
Liability loss exposure
- 20.All of the following would be considered benefits of Insurance, except:
- A.
The source of investment funds
- B.
Retention of the loss by the insured
- C.
Redemption of the financial uncertainity of the insured
- D.
Payment for the cost of covered losses
- 21.Which of the following is also known as a human loss exposure ?
- A.
Personnel loss exposure
- B.
Personal loss exposure
- C.
Indirect loss exposure
- D.
Liability loss exposure
- 22.If a tenant is insured under a building personal property coverage form, when is the property considered vacant ?
- A.
When the structure is being renovated as the result of a fire
- B.
When the Insured's operation is halted due to a strike
- C.
When there is insufficient business personal property present to conduct customary operations
- D.
When less that 31% of the total building space is rented to others or in use by the insured
- 23.A commercial property policy can provide coverage for all of the following, except:
- A.
Tangible losses
- B.
Indirect losses
- C.
Intangible losses
- D.
Direct losses
- 24.Which of the following types of coverage would be needed to cover a contract's bulldozers which are used in the contract's business but are not held for sale ?
- A.
Older truck cargo floater
- B.
Annual transit policy
- C.
Contract's equipment floater
- D.
Installment sales floater
- 25.It is a violation of the CA insurance Code to act as a producer for a non-admitted carrier unless:
- A.
The producer is an insurance solicitor
- B.
It is always a violation, no matter what type of producer
- C.
The producer is dually licensed in at least two states
- D.
The producer is a surplus lines broker
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