Do you know the basics of insurance? Do you suppose you can pass this test? Insurance is a means of safeguard from a monetary deficit. Insurance is a type of risk management mainly used to deter against the risk of a contingent or uncertain loss. It is also useful to know that almost anything can be insured. Take this quiz and see how much you know about the basics of insurance.
Loss valuation
Actual cash value
Indemnity
Replacement cost
Direct loss value
Actual cash value
Insurable Interest
Financial risk
Consideration
Competent parties
Agreement
Countersignature
Representations
Misrepresentations
Warranties
Concealments
A binder is not usually valid for more than 90 days
A binder may be oral or written
A binder may be canceled by the insured within 2 days
Binders are valid for 15 days after the policy is issued
Binders
Amendments
Endorsements
Conditions
Short rate
Pro-rate
Actual cash value
Specified peril
$18,500
$28,000
$22,000
$22,500
Actual injury
Legal duty
Proximate cause
Criminal act
HO-2 Policy
HO-3 Policy
HO-4 Policy
HO-6 Policy
Money and securities
Jewelry and furs
Firearms
Clothing
Type and amount of coverage desired
Individuals who will operate the vehicle
Where the vehicle is garaged
Deductible chosen
Gross total weight of the vehicle
$100,000
$90,000
$105,000
$15,000
Fire
Removal
Lightning
Explosion
Coinsurance
Insurance Interest
Subrogation
Abandonment
Reimburse the mortgagee for its interests in the damaged property
Protect the property from further damage
Separate damaged property from undamaged property
Immediately provide notice
Bodily injury to the insured
Bodily injury to the parties at fault
Physical damage to the auto
Bodily injury to the uninsured driver
$50,000
$75,000
$100,000
$0; the policies of the injured parties provides primary coverage.
Collision
Comprehensive
Property Damage Liability
No coverage applies due to driver negligence.
Overflow of inland waters
Surface water run-off
Sewer backup
Mudslide
$100,000
$117,000
$125,000
$175,000
All reasonable medical expenses are covered up to the policy limit.
Legal liability need not be proven for payment to be made.
An insured struck by a vehicle while a pedestrian would be covered.
A neighbor is assisting you in changing your tire and is injured while loosening the lug nuts.
All of the above.
Arbitration
Appraisal
Assignment
Subrogation
Absent
Vacant
Unoccupied
None of the above.
Eliminates risk by accumulating funds
Transfers risk by accumulating funds
Makes risks predictable by transferring funds
Eliminates risk by transferring funds