Business Insurance IQ Quiz! Trivia

1.

Business Interruption covers is: Profits you would have earned based on past financial records, fixed operating expenses, and temporary location when disaster causes the business location unsuitable.

True

False

Business Interruption insurance covers the profits that a business would have earned based on past financial records, as well as fixed operating expenses and temporary relocation costs. This coverage is applicable when a disaster or other event renders the business location unsuitable for operations. Therefore, the statement is true.

Explanation

Business Interruption insurance covers the profits that a business would have earned based on past financial records, as well as fixed operating expenses and temporary relocation costs. This coverage is applicable when a disaster or other event renders the business location unsuitable for operations. Therefore, the statement is true.

2.

The retroactive date is: A very crucial date on a claim made policy that determines at what point coverage will apply. If a claim occurs prior to this date, there is no coverage. This date varies depending on how long you've had continuous coverage.

True

False

The retroactive date is a crucial date on a claim made policy that determines when coverage will apply. If a claim occurs before this date, there will be no coverage. This date can vary depending on how long the policyholder has had continuous coverage.

Explanation

The retroactive date is a crucial date on a claim made policy that determines when coverage will apply. If a claim occurs before this date, there will be no coverage. This date can vary depending on how long the policyholder has had continuous coverage.

3.

Insurance Broker is: Someone that represents one insurance company and does not search the market for appropriate coverage and competitive rates.

True

False

A broker usually searches the market for the best rates and policies to fit your needs.

Explanation

A broker usually searches the market for the best rates and policies to fit your needs.

4.

Claims made are: A policy that covers claims first made (reported or filed) during the year the policy is in force for any incidents that occur during that year or during any previous period covered by claims made policy, subject to the retroactive date.

True

False

This statement is true. A claims-made policy provides coverage for claims that are first made during the year the policy is in force, regardless of when the incident occurred. It also covers incidents that occurred in previous periods that were covered by the claims-made policy, as long as there is a retroactive date specified.

Explanation

This statement is true. A claims-made policy provides coverage for claims that are first made during the year the policy is in force, regardless of when the incident occurred. It also covers incidents that occurred in previous periods that were covered by the claims-made policy, as long as there is a retroactive date specified.

5.

Costello and Son's Insurance Brokers specializes in: 4 distinct areas: technology companies, venture capital/ private equity firms, realtors, and individuals J

True

False

Costello and Son's Insurance Brokers specializes in four distinct areas: technology companies, venture capital/private equity firms, realtors, and individuals. This means that they have expertise and experience in providing insurance services specifically tailored to these industries and individuals.

Explanation

Costello and Son's Insurance Brokers specializes in four distinct areas: technology companies, venture capital/private equity firms, realtors, and individuals. This means that they have expertise and experience in providing insurance services specifically tailored to these industries and individuals.

6.

A non-admitted insurance company: Does not have the license to do business in that state but can write coverage through excess and surplus lines broker that is licensed.

True

False

A non-admitted insurance company is one that does not have the necessary license to conduct business in a specific state. However, they can still provide coverage through an excess and surplus lines broker who is licensed. This allows the non-admitted insurance company to write policies for unique or high-risk situations that may not be covered by traditional admitted insurers.

Explanation

A non-admitted insurance company is one that does not have the necessary license to conduct business in a specific state. However, they can still provide coverage through an excess and surplus lines broker who is licensed. This allows the non-admitted insurance company to write policies for unique or high-risk situations that may not be covered by traditional admitted insurers.

7.

A deductible is: The amount you are not responsible for in the event of a loss before coverage is triggered by your policy.

True

False

A deductible is the amount that you are responsible for paying when you make a claim. Usually the higher the deductible the lower the premium.

Explanation

A deductible is the amount that you are responsible for paying when you make a claim. Usually the higher the deductible the lower the premium.

8.

Hacker Insurance is:
Would be protection against losses caused by hackers from businesses dealing in e-commerce but it does not exist.

True

False

Hacker insurance does exist and is important in protecting your business and customers. Interested in learning more?
http://www.costelloandsons.com/blogtechnology/2010/11/hacker-coverage-interview-with-bryan-costello/

Explanation

Hacker insurance does exist and is important in protecting your business and customers. Interested in learning more?
http://www.costelloandsons.com/blogtechnology/2010/11/hacker-coverage-interview-with-bryan-costello/