Ins Quiz - 2

41 Questions | Total Attempts: 556

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Insurance Quizzes & Trivia

INS Quiz 2


Questions and Answers
  • 1. 
    An example for Alternative distribution channels 
    • A. 

      Financial Institutions

    • B. 

      Personal Contact

    • C. 

      Internet

    • D. 

      Both A & C

  • 2. 
    Through ______________ and development activities, insurers provide producers with the products needed to produce business for the insurer 
    • A. 

      State Regulators

    • B. 

      Product Management

    • C. 

      Marketing Management

    • D. 

      Rebating

  • 3. 
    Insurers using alternative distribution channels rely heavily on advertising to bring customers to them 
    • A. 

      True

    • B. 

      False

  • 4. 
    Person who sells insurance products for an insurance company or companies 
    • A. 

      Brokers

    • B. 

      Agents

    • C. 

      Producer

    • D. 

      Principal

  • 5. 
    Party that authorizes the agent to act on its behalf 
    • A. 

      Principal

    • B. 

      Insurer

    • C. 

      Agency

    • D. 

      None Of the above

  • 6. 
    IIAA stands for 
    • A. 

      Independent Insurance Agents Association

    • B. 

      Independent Insurance Association of Agents

    • C. 

      Independent insurance Agents of America

    • D. 

      Independent Insurance American Association

  • 7. 
    Authority for Brokered Business is  specified in 
    • A. 

      Agency Agreement

    • B. 

      Employment Contract

    • C. 

      Insurer Contract

    • D. 

      Broker Contract

  • 8. 
    E & O stands for  
    • A. 

      Errors and Omissions

    • B. 

      Error and Observations

    • C. 

      Errors and Obligations

    • D. 

      Error and Observation

  • 9. 
    Large brokerage firms provides 
    • A. 

      Extensive Loss control

    • B. 

      Appraisal

    • C. 

      Actuarial

    • D. 

      All the above

  • 10. 
    Employees can be transferred from job to job from office to office to meet the overall needs of the insurer - T/F
    • A. 

      True

    • B. 

      False

  • 11. 
    MGA stans for 
    • A. 

      Managing General Agencies

    • B. 

      Managing Govt Agencies

    • C. 

      Management General Agencies

    • D. 

      Management Gove Agencies

  • 12. 
    Generally, an inside claim representative 
    • A. 

      Meets with parties involved with the loss

    • B. 

      Handles claims by phone or mail from the insurer's office

    • C. 

      Visits the scene of the loss to investigate damages

    • D. 

      Offers claim settlement service for a fee to insurers

  • 13. 
    Subrogation is the insurer's right to  
    • A. 

      Recover its claim payment from the party responsible

    • B. 

      "Drop a claim in exchange for an agreed amount of money"

    • C. 

      Estimate the value of the damaged property

    • D. 

      Transfer coverage to a third party

  • 14. 
    What is the largest and most important liability of property and liability insurers? 
    • A. 

      Acquisition costs

    • B. 

      Administration costs

    • C. 

      Loss reserves

    • D. 

      Unearned premium reserves

  • 15. 
    What is an example of general damages? 
    • A. 

      Hospital expenses

    • B. 

      Lost wages

    • C. 

      Prescriptions

    • D. 

      Disfigurement

  • 16. 
     An insurer might send a reservation of rights letter to the insured following a claim that involves which of the following? 
    • A. 

      An occurrence that might have happened outside the policy period

    • B. 

      An intentional action of the insured

    • C. 

      More than one insurer and there is a question of which insurer pays first

    • D. 

      All of the above

  • 17. 
    Granting draft authority to agents will generally increase
    • A. 

      Claim settlement expenses.

    • B. 

      Time to settle claims.

    • C. 

      Cost of insurance.

    • D. 

      Customer satisfaction.

  • 18. 
    What is the major purpose of claim handling? 
    • A. 

      To determine whether coverage exists

    • B. 

      To obtain adequate information

    • C. 

      To satisfy the insurance company's obligation under the policy

    • D. 

      To respond promptly to claimant requests

  • 19. 
    What is the purpose of Unfair Claim Practices laws? 
    • A. 

      To justify legal claim practices

    • B. 

      To determine the value of the loss

    • C. 

      To punish insurers

    • D. 

      To specify illegal claim practices

  • 20. 
    All of the following describe an independent adjuster, EXCEPT: 
    • A. 

      Self-employed

    • B. 

      Contracted by an insurer

    • C. 

      Employee of an insurer

    • D. 

      Employee of an adjusting firm

  • 21. 
    Sue's homeowner's policy covers her camera against theft. While on vacation, Sue's camera is stolen. In which step in the claim settlement process would the claim representative determine the camera's replacement cost?
    • A. 

      Valuation

    • B. 

      Settlement

    • C. 

      Negotiation

    • D. 

      Investigation

  • 22. 
    Jim notifies ABC Insurer of an accident with an ABC insured in a state in which ABC does not do business.  What type of claim staff will ABC Insurer generally use to investigate this claim?
    • A. 

      Inside claim representative

    • B. 

      Outside claim representative

    • C. 

      Independent adjuster

    • D. 

      Independent agent

  • 23. 
     A 50,000 square foot building of standard construction is totally destroyed by fire. The construction cost for medium quality in that location is $70 per square foot.  What is the best estimate of the building's replacement cost?
    • A. 

      $2,000,000

    • B. 

      $3,500,000

    • C. 

      " $4,000,000

    • D. 

      " $5,500,000

  • 24. 
      A liability loss has the following damages:  Medical expenses    $10,000  Damages for disfigurement   $50,000  Damages for pain and suffering   $100,000 What is the amount of special damages?
    • A. 

      $10,000

    • B. 

      $50,000

    • C. 

      " $100,000

    • D. 

      " $160,000

  • 25. 
     A collision damages Sue's car. The car's actual cash value is $2,000.  Repair costs are estimated at $1,800. Salvage value is estimated at $500. What is the insurer's loss payment?
    • A. 

      $1,500

    • B. 

      $1,800

    • C. 

      $2,000

    • D. 

      $2,300

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