An insured has suffered a fire loss to his/her dwelling. This insured is which party to the claim?
C) First party
Mr. Jones, a pedestrian, was injured by Mr. Smith while driving his vehicle. Mr. Smith is Insured by I Am Bogus Insurance Company. The insurance company would be which party to the claim?
B) Second party
Which of the following is NOT included in the Declarations section of an insurance contract?
C) The covered perils
Which of the following is the section of an insurance contract that contains the provisions, rules of conduct, duties, and obligations of the parties?
D) The Conditions
A loss that is a direct consequence of a perticular peril is called a(n):
D) Direct loss
Which of the following is a clause in property and casualty contracts which states that if policy or endorsement forms are broadened and no additional premium is requred, then all existing similar policies or endorsements will be constructed to include the broadened coverage?
A) Liberalization
Which of the following provides written evidence of coverage pending the issance of a policy?
B) Binder
Which of the following is an example of a Loss Evaluation Method?
A) Stated amount
The cost of replacement minus depreciation is the definition of:
A) Actual Cash Value
Which of the following is a method of requiring the insured to insure at least 80% of the value of the covered commercial property?
A) Coinsurance clause
Which of the following is a basis for insuring property that allows the insured to report the value of the building contents to the insurance company on a monthly basis?
B) Reporting form
Which of the following is NOT a factor in determine negligence on the part of the insured?
A) There is a breach of protection
In liability insurance, policy limits that apply to one limit to each person injured, another for bodily injury claims of all persons injured in a single accident, and a separate limit for all property damage arising out of a single accident is:
A) Split limits
An insurance contract that is contingent on an uncertain event is referred to as?
C) Aleatory
Mr. jones is involved in an at-fault accident. The other party was also at fault. The method to determine damages due each party based on a percentage of negligence is known as:
C) Comparitive negligence
The insured owns a filling station and an employee causes bodily injury to a third party. The insured is held legally laible for the employee's acts. This is called:
D) Vicarious liability
One characteristic of an insurance contract is that both parties must perform certain acts to make the contract legally enforceable. This is called:
D) Executory
A church has hired a painting contractor to stain and varnish the woodwork in the building. he leaves the rags and brushes used to apply the painting materials in a small storage area. This is an example of:
D) A hazard
The insurance company is the author of the insurance policy. The insurer buys what is offered by the company and accepts it as is. This is called:
