AnalysisofInsuranceContracts

AnalysisofInsuranceContracts - Exam Name MULTIPLE CHOICE...

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) 1) The portion of a property and liability insurance contract that contains information about the property or activity to be insured is called the A) declarations. B) conditions. C) exclusions. D) insuring agreement. 2) 2) What information is contained in the insuring agreement of an insurance policy? A) a summary of the obligations of the insured B) a description of the property or life to be insured C) a summary of the major promises of the insurer D) a list of the property, losses, and perils that are excluded 3) 3) Which of the following statements about "all - risks" coverage is (are) true? I. All losses are covered except those losses specifically excluded. II. The burden of proof is on the insured to prove that a loss is covered. A) I only B) II only C) both I and II D) neither I nor II 4) 4) The exclusion of flood in a homeowners policy is an example of an A) excluded property. B) excluded peril. C) excluded loss. D) excluded condition. 5) 5) Exclusions are used in insurance policies for all of the following reasons EXCEPT A) to waive policy conditions. B) to eliminate coverage for uninsurable perils. C) to reduce moral hazard. D) to eliminate coverage not needed by typical insureds. 6) 6) Reasons why a peril may be considered uninsurable and therefore excluded from insurance contracts include which of the following? I. The losses from the occurrence of the peril may be due to a predictable decline in value. II. The losses from the occurrence of the peril may be incalculable and catastrophic. A) I only B) II only C) both I and II D) neither I nor II 7) 7) The policy provision requiring the filing of proof of loss with the insurer is an example of a(n) A) miscellaneous provision. B) insuring agreement. C) declaration. D) condition. 1
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8) 8) Which of the following statements about the definition of the insured is (are) true? I. Under some circumstances, a person who is not specifically named may be classified as an insured. II. Under no circumstances can more than one person be named as an insured. A) I only B) II only C) both I and II D) neither I nor II 9) 9) All of the following statements about endorsements and riders are true EXCEPT A) They are primarily used to circumvent the purpose of legislation requiring specific policy provisions. B) They normally take precedence over other conflicting policy provisions. C) They are usually written. D) They can be used to add or delete policy provisions. 10) 10) Deductibles are used in all of the following types of insurance EXCEPT A) health insurance. B) property insurance. C) life insurance.
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AnalysisofInsuranceContracts - Exam Name MULTIPLE CHOICE...

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