Chapter 5 - Insurance Transactions

21 Questions | Total Attempts: 56

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Insurance Quizzes & Trivia

A number of steps must be taken before an insurance transaction can be completed.


Questions and Answers
  • 1. 
    Type response below
  • 2. 
    Which of the following is an example of Subrogation?
    • A. 

      Bob pays his neighbor $40 for backing over his hedge.

    • B. 

      Sue's mink coat is destroyed by her neighbor's cat. Sue's insurance company pays her for the coat, then sues the neighbor to recover the cost.

    • C. 

      Al is sued by his paperboy, who tripped on Al's front step. Al's liability insurance must pay the paperboy $5,000.

  • 3. 
    Actual Cash Value (ACV) or Replacement Cost (RC)? Jim's 2 year old TV was stolen from his apartment and his insurance pays for replacing it with a comparable new set.
    • A. 

      ACV

    • B. 

      RC

  • 4. 
    Actual Cash Value (ACV) or Replacement Cost (RC)? Derek's car cost him $3,600 six years ago.  When it is stolen, his insurance company pays him $112.
    • A. 

      ACV

    • B. 

      RC

  • 5. 
    Actual Cash Value (ACV) or Replacement Cost (RC)? Mark paid $1,900 for his roof. When it is damaged by a storm, his insurance company pays to have the new roof installed.
    • A. 

      ACV

    • B. 

      RC

  • 6. 
    Actual Cash Value (ACV) or Replacement Cost (RC)? Hilda’s roof cost her $2,400. When It is damaged by a storm, her insurance company pays $1,000.
    • A. 

      ACV

    • B. 

      RC

  • 7. 
    A building is valued at $50,000. Ted has coverage to $40,000 to meet the 80% coinsurance requirement.  The building suffers a $30,000 loss. The insurance company will pay:
    • A. 

      $24,000

    • B. 

      $30,000

    • C. 

      $40,000

  • 8. 
    The Cheyenne Insurance Company issues a policy to Ann on January 15. Ann decides that on March 15 of the same year that she no longer requires coverage and wishes to cancel the policy. There will be approximately:
    • A. 

      Two months of earned premium

    • B. 

      Ten months of earned premium

    • C. 

      Twelve months of earned premium

    • D. 

      Two months of non-earned premium

  • 9. 
    Sam has a General Liability Policy with the XYZ Company. It has per occurrence limits of $10,000 and an aggregate limit of $100,000. This past year, Sam has had to pay the following amount of liability suits:
    • A. 

      Click here - no answer see below

    • B. 

      Do not click - no answer see below

  • 10. 
    The following coverages are available under the ISO Dwelling Fire program True or False? Rental Value
    • A. 

      True

    • B. 

      False

  • 11. 
    The following coverages are available under the ISO dwelling fire program True or False? Inflation Guard
    • A. 

      True

    • B. 

      False

  • 12. 
    The following coverages are available under the ISO dwelling fire program True or False? Comprehensive Personal Liability
    • A. 

      True

    • B. 

      False

  • 13. 
    The following properties are eligible for insurance under the dwelling fire program: Mark the correct answers.
    • A. 

      Duplex

    • B. 

      Non-owner occupied dwelling

    • C. 

      6 family apartment building

    • D. 

      4 family apartment building

    • E. 

      Mobile home

    • F. 

      Contents only in 1 unit of a 20 family apartment building

  • 14. 
    Which are excluded under NY State No Fault Laws
    • A. 

      D U I (Driving under the influence)

    • B. 

      Intentional Actions

    • C. 

      Driving without a license.

  • 15. 
    The HO3 Homeowners Policy covers some motor vehicle coverages
    • A. 

      True

    • B. 

      False

  • 16. 
    When insuring a boat or a yacht, the territory or body of water the vessel will be operated in is one of the underwriting factors which determines the premium or even eligibility.
    • A. 

      True

    • B. 

      False

  • 17. 
    NYS Insurance Law mandates that you must present a Compensation Disclosure Form with every insurance quote you discuss with a prospect or client.
    • A. 

      True

    • B. 

      False

  • 18. 
    A 1 family home is titled to 2 non related people.  One of the owners will live in the Home while the other will not.  How do you properly insure the owner that does not live on the premise.
    • A. 

      Add this individual as Named Insured

    • B. 

      Provide a Separate Policy for this individual

    • C. 

      Add this individual as Additional Insured

    • D. 

      Add this individual as Mortgagee

  • 19. 
    A client is renting an apartment and the landlord requires to be added as Additional Insured.  What is the proper way to underwrite this risk.
    • A. 

      Is not eligible for any markets

    • B. 

      Write an HO4 adding Landlord as Additional Insured

    • C. 

      A and D

    • D. 

      Offer Alternative to add Landlord as Additional Interest instead

  • 20. 
    When writing a Property Policy with NY Property Underwriting Association, what is the coverage that is very important yet not offered through this market that the insured needs to be aware of.
    • A. 

      Loss of Use

    • B. 

      Liability Coverage

    • C. 

      Contents Coverage

    • D. 

      All of the Above

  • 21. 
    Please fill answer below_______
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