WI Property Insurance Exam Questions and Answers Rated A+
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Course
WI Property Insurance
Institution
WI Property Insurance
Part of the insured's consideration in a property insurance contract is the...
a) payment of a loss by the company
b) payment of the premium by the insured
c) provision of a grace period
d) offer a preferred contract to the customer - ANSWER-b) payment of the premium by the insured
The porti...
WI Property Insurance Exam Questions and
Answers Rated A+
Part of the insured's consideration in a property insurance contract is the...
a) payment of a loss by the company
b) payment of the premium by the insured
c) provision of a grace period
d) offer a preferred contract to the customer - ANSWER-b) payment of the premium by
the insured
The portion or the policy that specifies exactly what items will be covered and the dollar
amounts of coverage is called the...
a) insuring clause
b) exclusions
c) declarations
d) conditions - ANSWER-c) declarations
All of the following are essentials of a contract EXCEPT a...
a) acceptance
b) consideration
c) offer
d) written instrument - ANSWER-d) written instrument
Which of the following would be considered incompetent under insurance law?
a) a fourteen-year-old honor student
b) a man under the influence of alcohol
c) a customer who buys a policy under duress
d) all of the above - ANSWER-d) all of the above
Which of the following grants express authority to an agent?
a) fiduciary contract
b) state provisions
c) agent contract with the insurance company
d) agents insurance license - ANSWER-c) agents contract with the insurance company
What is the term for the entity that an agent represents regarding contractual
agreements with third parties?
a) designee
b) insured
c) principal
d) client - ANSWER-c) principal
In insurance, an offer is usually made when...
,a) the agent delivers the policy to the policyholder
b) the agent explains policy provisions to a potential applicant
c) the applicant submits an application for insurance
d) the insurer approves the application and receives the initial premium - ANSWER-c)
the applicant submits an application for insurance
A situation in which a person can only lose or have no change represents...
a) pure risk
b) speculative risk
c) adverse selection
d) hazard - ANSWER-a) pure risk
An insured intentionally did not disclose a material fact on an application for insurance.
This would be considered...
a) concealment
b) lying
c) coercion
d) misrepresentation - ANSWER-a) concealment
An insurance company is domiciled in Montana and transacts insurance in Wyoming.
Which term best describes the insurer's classification in Wyoming?
a) domestic
b) unauthorized
c) foreign
d) alien - ANSWER-c) foreign
For the purpose of insurance, risk is defined as...
a) the guaranty of loss
b) the cause of loss
c) an event that increases the chance of loss
d) the uncertainty or chance of loss - ANSWER-d) the uncertainty or chance of loss
Which of the following would be considered a risk sharing arrangement?
a) stock
b) mutual
c) surplus lines
d) reciprocal - ANSWER-d) reciprocal
At the time of loss, the insured in a property and casualty policy, the insurer's claim
settlement options include all of the following EXCEPT...
a) paying the value of the lost or damaged property
b) replacing the property with other property of a lesser kind of quality
c) paying the cost of repairing or replacing the lost or damaged property
d) taking all or part of the property at an agreed or appraised value - ANSWER-b)
replacing the property with other property of a lesser kind or quality
, The part of the policy which sets forth the rules of conduct, duties, and obligations of the
parties is called the...
a) exclusions
b) declarations
c) insuring clause
d) conditions - ANSWER-d) conditions
Claims related expenses, reasonable expenses incurred by an insured to protect
damaged property from further loss, or defense expenses are covered by which part of
a policy?
a) exclusions
b) declarations
c) insuring agreement
d) additional coverages - ANSWER-d) additional coverages
Three years ago, an insured moved to an unfurnished apartment. She bought new
furniture that cost $9,000. Last week there was a fire in the apartment that destroyed
the furniture. Replacement cost is $10,500. The adjuster told the insured that her
furniture depreciated $2,500. If insurance is written on an Actual Cash Value basis, how
much will it pay for the loss?
a) $10,500
b) $6,500
c) $8,000
d) $9,000 - ANSWER-c) $8,000
Which of the following is not named as an insured on the declaration page of a policy
but are protected by the policy, usually in regards to a specific interest is known as...
a) policy owner
b) named insured
c) first named insured
b) additional insured - ANSWER-d) additional insured
Which of the following is the correct formula for computing a loss ration?
a) loss adjusting expenses - incurred expenses
b) incurred losses + loss adjusting expenses / earned premium
c) incurred expenses + loss adjusting expenses / interest rate
d) incurred losses - loss adjusting expense / earned premium - ANSWER-b) incurred
losses + loss adjusting expenses / earned premium
Gertrude Frump has an insurable interest in all of the following EXCEPT...
a) improvements she made to her apartment
b) the life of her husband, Lurch
c) her automobile
d) property her uncle might leave her - ANSWER-d) property her uncle might leave her
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