Unit 3 quiz Insurance

What type of insurance policy protects the insured from loss caused by damage to covered property by a covered peril?

• Property insurance policy

• Casualty insurance policy

• Accident and health insurance policy

• Life insurance policy

Which of the following is not part of the structure of a property or casualty insurance policy?

• endorsements

• declarations

• explanations

• conditions

Which of the following terms describes the person listed first on the declarations page of a policy when there is more than one named insured?

• Additional insured

• named insured

• policy holder

• first-name insured

Greg's policy states that a loss will not be covered unless it occurs within the United States or Canada. What is the name of the provision in his policy?

• The policy territory provision

• The policy period provision

• the location of loss provision

• the other insurance provision

When an insured decides to cancel an insurance policy before the expiration date, the unearned premium is returned on

• a flat basis

• a short rate basis

• an unearned basis

• a pro rata basis

Todd and Mary have insurance protection for their home with a policy deductible of $500. One night, a thunderstorm knocks a tree onto their roof and causes $2,500 in damage. How much money will the insurance company pay to Todd and Mary to fix their roof?

• $500

• $2,000

• $2,500

• $3,000

Which of the following is NOT a type of merit rating that modifies the manual premium on the basis of the insured's loss experience ?

• Experience rating

• Retrospective rating

• Schedule rating

• manual rating

Factors that determine Premium rates set by insurance companies include loss costs, operating expenses, claims handling costs, and

• profits

• losses

• cost of living

• location of insured

Marcus has two polices that will cover his $20,000 loss. Company A will pay for the first $15,000, and company B pays for the remainder. In this example, company A's policy is considered

• excess insurance

• pro rata insurance

• primary insurance

• other insurance

Which provision specifies that an insurance policy may not be transferred to anyone else without the written consent of the insurer unless the names insured dies?

• Named insured provision

• Assignment provision

• Abandonment Provision

• Salvage Provision