Insurance Terminology

15 Points Per Correct Answer - No time limit  

1. You just endorsed your insurance policy, what have you done to it? Reinstated Cancelled Changed Faxed

2. The declarations page of your auto policy states that your liability coverages are 100 300 100. What coverage does the last figure represent? Personal Injury Property Damage Comprehensive Collision

3. Your standard unendorsed plain-vanilla homeowner's insurance policy carries a $1,000 deductible. It does not ocver earthquakes. An earthquake causes $6,300 in damage to your home. How much would your insurance company pay for the cost of repairs? $5,300 Nothing $7,300 $6,300

4. The medical payments portion of your automobile policy (Coverage B) provides protection for who? People in another vehicle You and your passengers Pedestrians Animals in the road

5. A bunch of items are stolen from your vehicle. They are valued at $4,800. Under what type of policy listed would this loss be covered? Automobile Homeowner's Personal Umbrella Businessowner's Policy

6. I'll give you the definition, you tell me what I'm describing. The principle of insurance that provides that when a loss occurs, the insured should be restored to the approximate financial condition he or she occupied before the loss occurred, no better or no worse. Implied Warranties Insurance Indemnity Insurable Interest

7. Another defintion. The cost to replace an item of property at the time of loss, less an allowance for depreciation. Replacement Cost Apparent Authority Absolute Liability Actual Cash Value

8. Which of the following is not a characteristic of a valid contract, which an insurance policy is? Competent parties Offer and acceptance Legal purpose Must be written

9. A mutual insurance company is owned by who? Stockholders Insureds Reciprocals Executive Board

10. You were in an accident that is not your fault. The other party either has no insurance or refuses to pay. Your insurance company pays for your damages and then has the right to go after the liable party for compensation. This is referred to as what? Subrogation Appraisal Arbitration Abandonment

11. Your gun collection is stolen from the gun cabinet in your home. The stolen items have a combined total value of $4500. Assuming your policy does not have a firearm exclusion, how much will your insurance company pay for this loss if you have a $1000 deductible? Nothing $4500 $2000 $3500

12. You own the home, but you rent it to others. What type of policy do you need? Personal Umbrella Renters Homeowners Dwelling Fire

13. What do you call a condition or situation that presents a possibility of loss? Exposure Loss Speculative Risk Pure Risk

14. There is a section in any insurance policy which clarifies the meaning of certain terms used in the policy. What is this section referred to as? Definitions Exclusions Declarations Agreements

15. What two coverages are typically provided in Aviation policies? Liability and Loss of Life Liabilty and Property of Others Physical Damage and Liability Physical Damage and Property of Others

16. In a commercial auto policy, a motor carrier can be covered under the Truckers coverage form, when? Under any circumstance If they transport goods for others by hire Under no circumstance Only in fair weather conditions

17. This is a written form that verifies a policy has been written. It provides a summary of the coverage provided under the policy. What is it called? Fidelity Bond Certificate of Insurance Claims-Made Form Conditional Contract

18. In most states, the signature of a licensed agent must appear on the policy to validate the contract. What is this concept called? Aleatory Contract Countersignature Coverage Trigger Custodian

19. This Ocean Marine insurance provides coverage for physical damage to a ship, what is it called? Hull Insurance Cargo Insurance Freight Insurance Sea Vessel Physical Damage Insurance

20. Which of these is not an insurance company? Lloyd's of London Progressive Fireman's Fund Geico

21. An insurance company that only writes one line of business is known as a what? Mono-Line Company Domestic Company Multi-Line Company Foreign Company

22. This general term is used to describe policy conditions that specify what the insured and insurer must do after a loss. Loss Conditions Loss Provisions Loss Ratio Loss Sustained Condition

23. In commercial insurance, this is the vanishing of property with no explanation. Theft Mysterious Disappearance Robbery Employee Dishonesty

24. Your policy coverages begin and end on a certain date. What is this referred to as? Policy Territory Policy Limit Policy Jacket Policy Period

25. This organization rates the financial stability of insurance companies doing business in the United States. Standard and Poor Decker and Decker Ewan and MacGregor Raines and Stroup