100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Personal Lines Insurance Exam Questions And 100% Correct Answers $13.99   Add to cart

Exam (elaborations)

Personal Lines Insurance Exam Questions And 100% Correct Answers

 5 views  0 purchase
  • Course
  • Personal lines insurance
  • Institution
  • Personal Lines Insurance

Personal Lines Insurance Exam Questions And 100% Correct Answers ...

Preview 3 out of 29  pages

  • November 2, 2024
  • 29
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • Personal lines insurance
  • Personal lines insurance
avatar-seller
Easton
Personal Lines Insurance Exam Questions And 100%
Correct Answers 2024-2025


Risk _________ is when one takes action to prevent or reduce potential loss. - Answer
Reduction



As one increases the number of similar units, according to the rule of _____ ________ the
predictability of the loss improves. - Answer Large Numbers



The insuring of risks that are more prone to losses than average risks is known as? -
Answer Adverse Selection



A ___________ contract is an arrangement where one insurer transfers or shares risks
with another insurer. - Answer Reinsurance



_____________ Reinsurance is accepted or rejected by a case by case basis. - Answer
Facultative



The fact that an insured would profit from a loss, would be a violation of the principle of
___________. - Answer Indemnity



The determination of acceptable risks is the primary function of the ___________. -
Answer Underwriter



Underwriters prefer to select insureds whose actual losses will be similar to expected
losses. True or False? - Answer True



When rates cannot be used until they are improved by the department or division of
insurance, they are called ____ ________ rates. - Answer Prior Approval

,The termination of a policy by either the insured or insurer before its expiration date is
known as ___________. - Answer Cancellation



When the insurer cancels a property policy, the unearned premium is returned ___ ____.
- Answer Pro Rata



When an insured requests cancellation of a policy, the unearned premium is refunded to
the insured on a _____ _____. - Answer Short Rate



A fire is considered to be a _____ of a potential loss. - Answer Cause



A document that provides temporary insurance coverage until a policy is issued is
called a ______. - Answer Binder



A process in which a disputed claim is decided by a neutral third party is called
___________. - Answer Arbitration



Concurrent Causation refers to a situation where there are two causes resulting in a
loss, with one of the causes excluded and the other cause of loss not excluded. - Answer
Concurrent Causation



If two or more policies provide identical coverage for the same risk, the policies are
considered to be __________. - Answer Concurrent



Policy A is written for $100,000 and an excess Policy B is written for $200,000 on the
same property. If there is a $20,000 loss, how much will each pay? - Answer A= $20,000
; B= $0



A building which contains neither occupants nor personal property is ______. - Answer
Vacant

, If property is destroyed by fire, the loss is called a(n) ______ loss. - Answer Direct



If a fire on a premises caused a power outage, which caused meat in the freezer to spoil,
would the meat spoilage be considered a direct loss or indirect loss? - Answer Indirect
Loss



Open peril policies include losses caused by theft. True or False? - Answer True



If an owner does not want any deduction for depreciation after a covered loss, he/she
should buy a ___________ ____ policy. - Answer Replacement Cost



For replacement cost coverage to apply under dwelling policies, the insured must carry
insurance at least equal to ____% of the cost of replacement of the building. - Answer 80



Would an agreed amount method of valuation likely be used when insuring gold bullion?
- Answer No



An ____ policy is one that the value of the subject matter is not agreed upon, but is left to
be ascertained in case of loss. - Answer Open



A valued policy is one that expresses on it's face an agreement that the thing insured is
valued at a specific sum. True or False? - Answer True



Insuring more than one property on one policy for a single amount of insurance that
applies to all properties covered under the policy is known as _______ coverage. -
Answer Blanket



The name of the insured appears on the declarations page of the policy. True or False?
-Answer True

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Easton. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $13.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

79373 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$13.99
  • (0)
  Add to cart