Insurance Essentials Quiz

What does the term 'loss' refer to in the insurance industry?

• The amount an insurer must pay for a new policy

• The amount an insured must pay to the insurer

• The amount an insurer must pay as a result of a loss insured by an insurance policy

• The amount an insured must pay for a new policy

What are direct losses in the context of insurance claims?

• Losses that occur directly as a result of an insured peril

• Losses that occur indirectly as a result of an insured peril

• Losses that occur due to non-payment of premiums

• Losses that occur due to non-performance of policy conditions

What is the purpose of the forfeiture concept in insurance claims?

• To divide the payment for the loss among various policies

• To encourage the insured to carry adequate insurance

• To ensure the insured receives full reimbursement for losses

• To show that the insurer's position has been prejudiced by the insured's action

What is the definition of prescription in the context of insurance claims?

• The remaining value of the property after it is damaged by an insured peril

• A limitation of time in which legal action can be taken by a claimant

• The period of time a claim may be started by an insured

• A law stating when a party can take legal action to enforce their rights

What is salvage in the context of insurance claims?

• The legal process that allows an insurer to recover the claim settlement from the responsible third party

• The division of payment for the loss among various policies

• The remaining value of the property after it is damaged by an insured peril

• The clause used to encourage the insured to carry adequate insurance

What is the role of a telephone adjuster in the claims process?

• Work for an independent adjusting company and require licensing by the government

• Direct the independent adjusters' loss investigation to finalize each claim loss

• Represent the insured in a claim and deal with large property losses

• Handle small, straightforward losses that do not require the adjuster to see the damages

What is the difference between claims-occurring basis policy wording and claims-made policy wordings?

• Claims-occurring basis policy wording is triggered when damage happens during a policy term, while claims-made policy wordings are triggered when the third party first makes a claim against the insured

• Claims-occurring basis policy wording is triggered when the third party first makes a claim against the insured, while claims-made policy wordings are triggered when damage happens during a policy term

• Claims-occurring basis policy wording is triggered when the insured first makes a claim, while claims-made policy wordings are triggered when damage happens during a policy term

• Claims-occurring basis policy wording is triggered when the insurer first makes a claim, while claims-made policy wordings are triggered when the insured first makes a claim

What is the purpose of co-insurance in insurance claims?

• To ensure the insurer retains ownership of the salvage after a claim is settled

• To divide the payment for the loss among various policies

• To encourage the insured to carry adequate insurance on the insured property

• To allow the insurer to recover the claim settlement from the responsible third party

What is the role of a claims examiner in the claims process?

• Handle small, straightforward losses that do not require the adjuster to see the damages

• Represent the insured in a claim and deal with large property losses

• Direct the independent adjusters' loss investigation to finalize each claim loss

• Work for an independent adjusting company and require licensing by the government

What is the definition of an accident in the context of insurance claims?

• An accident including continuous event or exposure to substantially the same general harmful conditions

• An unusual, fortuitous, unexpected, or unforeseen event or occurrence

• An event that is not covered by the insurance policy

• An event that is expected or designed