1.
Are Allstate Agents required to obtain a social security number for the named insured and spouse when quoting?
Correct Answer
A. No, but we are required to ask for it
Explanation
Allstate agents are not required to obtain a social security number for the named insured and spouse when quoting. However, they are required to ask for it. This means that while it is not mandatory to have the social security numbers, agents must still inquire about them during the quoting process.
2.
Which tier rating factors offer the prospect a better tier?
Correct Answer
D. 5+ years with prior carrier, named insured or spouse is the owner of a residential property, greater than 100/300 prior BI limits
Explanation
The answer is 5+ years with prior carrier, named insured or spouse is the owner of a residential property, greater than 100/300 prior BI limits. This is because having 5+ years with a prior carrier shows loyalty and a good driving history, while being the owner of a residential property suggests stability and responsibility. Additionally, having prior BI limits greater than 100/300 indicates a higher level of coverage, which is seen as favorable by insurance companies.
3.
What is the ratio on ordering MVRs on an auto quote? (MVR:Policies Written)
Correct Answer
C. 2:1
Explanation
The ratio on ordering MVRs on an auto quote is 2:1, which means that for every 2 MVRs ordered, there is 1 policy written. This suggests that the company is more cautious and thorough in obtaining driving records (MVRs) before issuing a policy, as they order twice as many MVRs as the number of policies written.
4.
Why do we capture driving behavior when quoting a homeowner's policy?
Correct Answer
B. There is a direct correlation between auto and home claims. Driving behavior is reflective of claim behavior.
Explanation
Capturing driving behavior when quoting a homeowner's policy is important because there is a direct correlation between auto and home claims. The way a person drives can be reflective of their claim behavior, meaning that someone who has a history of reckless driving may also be more likely to file claims for damages to their home. Therefore, gathering information about driving behavior helps insurers assess the risk profile of the homeowner and make more accurate underwriting decisions.
5.
True or False: It is necessary to obtain the number of occupants in the household, including all children.
Correct Answer
A. True; all occupants, including children, need to be accounted for.
Explanation
It is necessary to obtain the number of occupants in the household, including all children. This is because the number of occupants in a household can affect various factors such as the amount of resources needed, the size of living space required, and the allocation of services and benefits. Therefore, it is important to have an accurate count of all occupants, regardless of their age.
6.
A billing notice is mailed out _____ days before the bill is due.
Correct Answer
C. 20
Explanation
A billing notice is typically mailed out 20 days before the bill is due. This allows the recipient enough time to receive the notice, review the bill, and make the necessary payment before the due date. This timeframe also allows for any potential delays in mail delivery, ensuring that the customer has ample time to respond to the billing notice.
7.
True or False: Future Effective Items are tied to the Future Effective Date discount.
Correct Answer
B. False
Explanation
Future Effective Items are not tied to the Future Effective Date discount. The statement implies a connection between Future Effective Items and the Future Effective Date discount, but this is not true. Future Effective Items refer to items that will take effect in the future, while the Future Effective Date discount refers to a discount that will be applied on a specific date in the future. These two concepts are unrelated and do not depend on each other. Therefore, the correct answer is False.
8.
True or False: When quoting a homeowner's policy, the age of the roof automatically defaults to being 7 years old.
Correct Answer
B. False
Explanation
The statement is false. The age of the roof does not automatically default to being 7 years old when quoting a homeowner's policy. The age of the roof is determined based on the actual age of the roof, which can vary for each individual homeowner. The age of the roof is an important factor in determining the premium and coverage of the homeowner's policy.
9.
If an add car endorsement is processed during the renewal period, the effective date of the change is _____.
Correct Answer
A. The renewal date
Explanation
If an add car endorsement is processed during the renewal period, the effective date of the change is the renewal date. This means that the change will take effect on the same day that the policy is renewed.
10.
In order to qualify for the Early Signing Discount, how many days must the policy be effective after the bind date for a Line 10 auto policy?
Correct Answer
B. 7 days
Explanation
To qualify for the Early Signing Discount for a Line 10 auto policy, the policy must be effective for 7 days after the bind date. This means that the policyholder must keep the policy active for at least 7 days in order to be eligible for the discount.