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WorksheetsIntro to Insurance
Total questions: 103
Worksheet time: 5hrs 9mins
Name
Class
Date
1.
Restoration to previous financial condition; no more, no less
a)
Insurance
b)
Insured
c)
Insurer
d)
Insurance Policy
e)
Indemnity
2.
Contract Characteristic: protects the insured’s financial interests, not the insured item itself
a)
Personal Contract
b)
Contract of Adhesion
c)
Utmost Good Faith
d)
Aleatory
e)
Unilateral
3.
Contract Characteristic:-insurer gets to set the terms the contract, while the insured must simply agree to them
a)
Personal Contract
b)
Contract of Adhesion
c)
Utmost Good Faith
d)
Aleatory
e)
Unilateral
4.
Contract Characteristic: Aplicants are expected to be honest about risks and insurer is expected to believe them
a)
Personal Contract
b)
Contract of Adhesion
c)
Utmost Good Faith
d)
Aleatory
e)
Unilateral
5.
Contract Characteristic: Depends on unknown future event
a)
Personal Contract
b)
Contract of Adhesion
c)
Utmost Good Faith
d)
Aleatory
e)
Unilateral
6.
Contract Characteristic: Only one party makes a promise to perform
a)
Personal Contract
b)
Contract of Adhesion
c)
Utmost Good Faith
d)
Aleatory
e)
Unilateral
7.
Contract Characteristic: Only kicks in when there is a covered loss and certain conditions are met
a)
Conditional
b)
Contract of Adhesion
c)
Utmost Good Faith
d)
Aleatory
e)
Unilateral
8.
provides a general overview of who the policy covers
a)
Declarations
b)
Definitions
c)
Insuring Agreement
d)
Conditions
e)
Exclusions
9.
defines the important terms in the policy
a)
Declarations
b)
Definitions
c)
Insuring Agreement
d)
Conditions
e)
Endorsement
10.
summarizes what the insurer will cover and how
a)
Declarations
b)
Definitions
c)
Insuring Agreement
d)
Conditions
e)
Exclusions
11.
qualifies or limits an insurer’s promise to pay or perform
a)
Declarations
b)
Definitions
c)
Insuring Agreement
d)
Conditions
e)
Endorsement
12.
specifically lists people, items, events, and causes of loss that are not covered under the insurance policy
a)
Declarations
b)
Definitions
c)
Insuring Agreement
d)
Conditions
e)
Exclusions
13.
optional provisions that can add, reduce, or modify the policy’s coverage
a)
Declarations
b)
Definitions
c)
Insuring Agreement
d)
Conditions
e)
Endorsement
14.
the possibility or likelihood of damage or loss
a)
Exposure
b)
Hazard
c)
Peril
d)
Loss
15.
anything that increases exposure
a)
Exposure
b)
Hazard
c)
Peril
d)
Loss
16.
the cause of damage or loss
a)
Exposure
b)
Hazard
c)
Peril
d)
Loss
17.
Expense caused by a covered peril
a)
Exposure
b)
Hazard
c)
Peril
d)
Loss
18.
lists each peril that is covered
a)
Named Peril
b)
Open Peril
19.
covers all perils except those specifically exclude
a)
Named Peril
b)
Open Peril
20.
group of people or organizations that insure each other
a)
Reciprocal Insurer
b)
Reinsurer
c)
Fraternal Benefit Society
d)
Risk Retention Group
e)
Standard/Admitted
21.
insurance for insurers
a)
Reciprocal Insurer
b)
Reinsurer
c)
Fraternal Benefit Society
d)
Risk Retention Group
e)
Non Admiitted
22.
non-profit, mutual aid organization that will usually offer insurance benefits to members and their families
a)
Reciprocal Insurer
b)
Reinsurer
c)
Fraternal Benefit Society
d)
Risk Retention Group
e)
Standard/Admitted
23.
an alternative to traditional insurance, owned by its members; provides liability coverage for multiple companies in the same business
a)
Reciprocal Insurer
b)
Reinsurer
c)
Fraternal Benefit Society
d)
Risk Retention Group
e)
Non Admiitted
24.
Licensed by the state to sell specific lines of insurance & must contribute to guaranty fund
a)
Reciprocal Insurer
b)
Reinsurer
c)
Fraternal Benefit Society
d)
Risk Retention Group
e)
Standard/Admitted
25.
Not licensed by the state, but licensed in their own state
a)
Reciprocal Insurer
b)
Reinsurer
c)
Fraternal Benefit Society
d)
Risk Retention Group
e)
Non Admiitted
26.
Any risk where gain is possible (uninsurable)
a)
Speculative Risk
b)
Pure Risk
27.
Any risk in which NO gain is possible (insurable)
a)
Speculative Risk
b)
Pure Risk
28.
the first person or organization listed on the declarations page
a)
First Named Insured
b)
Estoppel
c)
Specific Limit
d)
Policy Period
e)
Waiver
29.
the dates during which the policy is in effect
a)
Policy Period
b)
Specific Limit
c)
Waiver
d)
Concealment
e)
Blanket Coverage
30.
temporary coverage for an insurance applicant until the policy is issued
a)
Binder
b)
First Named Insured
c)
Concealment
d)
Specific Limit
e)
Estoppel
31.
“blankets” more than one property, type of property, or coverage under a single limit
a)
Blanket Coverage
b)
Estoppel
c)
Policy Period
d)
Blanket Coverage
e)
First Named Insured
32.
limits that apply to one specific type of property
a)
Specific Limit
b)
Condition
c)
Policy Period
d)
Waiver
e)
Concealment
33.
promise or guarantee that certain conditions will be met
a)
Warranty
b)
Waiver
c)
First Named Insured
d)
Specific Limit
e)
Condition
34.
deliberately withholding relevant information
a)
Concealment
b)
Specific Limit
c)
Estoppel
d)
Warranty
e)
Waiver
35.
legal principle that prevents an insurer from denying coverage if the insured has reasonably come to believe that he has such coverage, based on the insurer’s practices
a)
Estoppel
b)
Policy Period
c)
First Named Insured
d)
Waiver
e)
Policy Period
36.
voluntary surrender of a right, claim, or privilege
a)
Waiver
b)
Binder
c)
Warranty
d)
First Named Insured
e)
Specific Limit
37.
eliminates risk by not taking an action that involves risk
a)
Risk Avoidance
b)
Risk Reduction
c)
Risk Transference
d)
Risk Retention
38.
taking measures to reduce the risk involved in an action
a)
Risk Avoidance
b)
Risk Reduction
c)
Risk Transference
d)
Risk Retention
39.
managing severe risks by transferring the risk to another party
a)
Risk Avoidance
b)
Risk Reduction
c)
Risk Transference
d)
Risk Retention
40.
acknowledging the risks and preparing to handle unexpected losses that may occur
a)
Risk Avoidance
b)
Risk Reduction
c)
Risk Transference
d)
Risk Retention
41.
Looks at the probability of certain events occurring and then estimates the cost if those things do occur & determines premiums
a)
Adjuster
b)
Agent
c)
Underwriter
d)
Actuary
42.
Results from the policyholder’s deliberate, immoral decision
a)
Moral Hazard
b)
Morale Hazard
c)
Physical Hazard
d)
Legal Hazard
43.
Results from indifference and carelessness
a)
Moral Hazard
b)
Morale Hazard
c)
Physical Hazard
d)
Legal Hazard
44.
A physical condition that increases the chance of loss
a)
Moral Hazard
b)
Morale Hazard
c)
Physical Hazard
d)
Legal Hazard
45.
increased chance of loss due to legal action
a)
Moral Hazard
b)
Morale Hazard
c)
Physical Hazard
d)
Legal Hazard
46.
When there is an unbroken chain of events between an occurrence and a loss, then that occurrence is the…
a)
Proximate Cause
b)
Occurrence
c)
Direct Loss
d)
Indirect Loss
47.
An event, incident, or condition that causes damage
a)
Proximate Cause
b)
Occurrence
c)
Direct Loss
d)
Indirect Loss
48.
Physical harm, reduction in value, or an expense caused by an occurrence
a)
Proximate Cause
b)
Occurrence
c)
Direct Loss
d)
Indirect Loss
49.
An economic loss resulting from a direct lost
a)
Proximate Cause
b)
Occurrence
c)
Direct Loss
d)
Indirect Loss
50.
Claim filed by the policyholder against his or her own insurance policy
a)
First Party
b)
Third Party
51.
claim filed against an insurance policy by anyone other than the person named on that policy
a)
First Party
b)
Third Party
52.
transfer of rights that allows the insurer to recover its losses after it has indemnified the policyholder
a)
Subrogation
b)
Limits to Subrogation
c)
Waiver of Subrogation
53.
Limit is up to the amount that the insurer pays
a)
Subrogation
b)
Limits to Subrogation
c)
Waiver of Subrogation
54.
Takes away insurer's rights to recover its losses
a)
Subrogation
b)
Limits to Subrogation
c)
Waiver of Subrogation
55.
A valuation method that takes into account an item’s depreciation
a)
Actual Cash Value
b)
Replacement Cost
c)
Agreed Value
d)
Stated Value
56.
A method of valuation based on the cost of replacing an item at current market prices, regardless of depreciation
a)
Actual Cash Value
b)
Replacement Cost
c)
Agreed Value
d)
Stated Value
57.
Valuation is determined prior to the issuance of a policy
a)
Actual Cash Value
b)
Replacement Cost
c)
Agreed Value
d)
Stated Value
58.
Property value is stated by the insured when applying for insurance
a)
Actual Cash Value
b)
Replacement Cost
c)
Agreed Value
d)
Stated Value
59.
when the insured item is completely destroyed beyond repair or recovery
a)
Actual Total Loss
b)
Constructive Total Loss
60.
When damage would cost more to repair than item is worth
a)
Actual Total Loss
b)
Constructive Total Loss
61.
Predetermined amount of money that a policyholder must pay before the insurance will pay the remaining costs
a)
Deductible
b)
Coinsurance
c)
Coinsurance Penality
d)
Franchise Deductible
62.
Imposes a penalty if the homeowner does not insure home for at least 80% of its worth
a)
Deductible
b)
Coinsurance
c)
Coinsurance Penality
d)
Franchise Deductible
63.
(Insurance "had" / "should have had") x amount of partial loss
a)
Deductible
b)
Coinsurance
c)
Coinsurance Penality
d)
Franchise Deductible
64.
Insurer will pay 100% of damages if the loss exceeds a certain set amount/threshold
a)
Deductible
b)
Coinsurance
c)
Coinsurance Penality
d)
Franchise Deductible
65.
The policyholder is 100% at fault for damages to a third party
a)
Full liability
b)
Partial Liability
c)
No Liability
66.
The third party is responsible for a percentage of his own damages
a)
Full liability
b)
Partial Liability
c)
No Liability
67.
The policyholder has 0% or, no liability in the damages to a third party
a)
Full liability
b)
Partial Liability
c)
No Liability
68.
The claimant knew he had the potential to experience damage or injjury
a)
Strict Liability
b)
Res Ipsa Loquitor
c)
Contributory Negligence
d)
Comparative Negligence
e)
Assumption of Risk
69.
Can be understood as, “If you hadn’t played your part in the negligence, you would not have experienced any damages. Therefore, you receive no indemnification.”
a)
Strict Liability
b)
Res Ipsa Loquitor
c)
Contributory Negligence
d)
Comparative Negligence
e)
Assumption of Risk
70.
An adjuster may seek to suggest a claimant was (for<br />example) 75% responsible, and the policyholder was 25% responsible for damages
a)
Strict Liability
b)
Res Ipsa Loquitor
c)
Contributory Negligence
d)
Comparative Negligence
e)
Assumption of Risk
71.
The circumstances of the injury make it obvious that the defendant is negligent; no<br />proof is needed.
a)
Strict Liability
b)
Res Ipsa Loquitor
c)
Contributory Negligence
d)
Comparative Negligence
e)
Assumption of Risk
72.
holds a party 100% liable for damages when the activity<br />they are performing or the instrument they are using is inherently dangerous.
a)
Strict Liability
b)
Res Ipsa Loquitor
c)
Contributory Negligence
d)
Comparative Negligence
e)
Assumption of Risk
73.
protects the policyholder from the monetary consequences of<br />any damage or injuries he may cause to another party.
a)
Liaibility Insurance
b)
Negligence
c)
Vicarious Liability
74.
failure to use a reasonable degree of care that results in injury or damage to another party
a)
Liaibility Insurance
b)
Negligence
c)
Vicarious Liability
75.
when negligence is transferred from one party to another.
a)
Liaibility Insurance
b)
Negligence
c)
Vicarious Liability
76.
A fixed limit for each type of damage
a)
Single Limit
b)
Split Limit
c)
Aggregate Limit
77.
Three different limits: bodily injury of one person/ bodily injury of multiple people/ property damage
a)
Single Limit
b)
Split Limit
c)
Aggregate Limit
78.
Two limits:Single Occurrence/Entire Term
a)
Single Limit
b)
Split Limit
c)
Aggregate Limit
79.
Awards money for tangible and intangible damages
a)
Compensatory Damages
b)
Special Damanges
c)
General Damages
d)
Punitive Damages
80.
money awarded for exact value of tangible damages
a)
Compensatory Damages
b)
Special Damanges
c)
General Damages
d)
Punitive Damages
81.
money awarded for intangible, emotional damages determined by the court
a)
Compensatory Damages
b)
Special Damanges
c)
General Damages
d)
Punitive Damages
82.
Awards money for malicious, willful misconduct on the part of the tortfeasor
a)
Compensatory Damages
b)
Special Damanges
c)
General Damages
d)
Punitive Damages
83.
Given in writing within the agent’s contract
a)
Express Authority
b)
Implied Authority
c)
Apparent Authority
84.
Reasonable for public to believe, not expressly granted in writing
a)
Express Authority
b)
Implied Authority
c)
Apparent Authority
85.
Granted when the insurer does not stop the agent from acting in a certain way, even when those actions do not adhere to the authority granted in the contract
a)
Express Authority
b)
Implied Authority
c)
Apparent Authority
86.
Self-employed; sells insurance from many insurers
a)
Independent Agent
b)
Exclusive/Captive Agent
c)
General Agent
d)
Direct Writer
87.
Commissioned; offers products from only one insurer
a)
Independent Agent
b)
Exclusive/Captive Agent
c)
General Agent
d)
Direct Writer
88.
Trains and supervises exclusive agents for an insurer
a)
Independent Agent
b)
Exclusive/Captive Agent
c)
General Agent
d)
Direct Writer
89.
Salaried employee; works for one company
a)
Independent Agent
b)
Exclusive/Captive Agent
c)
General Agent
d)
Direct Writer
90.
salaried employee of an insurer
a)
Staff Adjuster
b)
Independent Adjuster
c)
Public Adjuster
d)
Emergency Adjuster
91.
self-employed, contracts with insurers or bureaus, paid by schedule or time + expense
a)
Staff Adjuster
b)
Independent Adjuster
c)
Public Adjuster
d)
Emergency Adjuster
92.
hired by the insured, usually paid commission
a)
Staff Adjuster
b)
Independent Adjuster
c)
Public Adjuster
d)
Emergency Adjuster
93.
temporarily licensed to service the many claims arising<br />from catastrophes
a)
Staff Adjuster
b)
Independent Adjuster
c)
Public Adjuster
d)
Emergency Adjuster
94.
A dispute resolution method in which the opposing parties each submit their evidence to<br />a mutually-agreed-upon and neutral third party, called an arbitrator. The arbitrator<br />reviews the positions of each opposing side and makes a final and legally binding<br />decision.
a)
Arbitation
b)
Mediation
c)
Appraisal
d)
Declaratory Judgment
e)
Litigation
95.
A method of negotiation that utilizes a neutral third party adviser to reach a mutuallyagreeable<br />solution. Mediation differs from Appraisal in that the decision is not binding to<br />the opposing parties.
a)
Arbitation
b)
Mediation
c)
Appraisal
d)
Declaratory Judgment
e)
Litigation
96.
A dispute resolution method which allows the claimant and the insurer each to select an<br />appraiser. The two appraisers in turn select an umpire. The appraisers then work<br />together to determine a settlement amount. If they cannot agree, the umpire steps in.<br />Agreement by any two of the three is binding.
a)
Arbitation
b)
Mediation
c)
Appraisal
d)
Declaratory Judgment
e)
Litigation
97.
As an alternative dispute resolution before litigation, the court can clarify the legal<br />relationship and the rights of both parties: the claimant and the principal. Does NOT<br />decide how to resolve the case.
a)
Arbitation
b)
Mediation
c)
Appraisal
d)
Declaratory Judgment
e)
Litigation
98.
last resort method of claim resolution
a)
Arbitation
b)
Mediation
c)
Appraisal
d)
Declaratory Judgment
e)
Litigation
99.
insurer writes one check to cover all damages; claimant signs a<br />full release form
a)
Full Release
b)
Scheduled Payment Release
c)
Advance Payment
d)
No Release Form
e)
Structured Settlement
100.
insurer pays all compensatory damages and<br />agrees to pay certain future “incidentals”
a)
Full Release
b)
Scheduled Payment Release
c)
Advance Payment
d)
No Release Form
e)
Structured Settlement
101.
insurer makes multiple partial payments until the final<br />settlement is agreed upon
a)
Full Release
b)
Scheduled Payment Release
c)
Advance Payment
d)
No Release Form
e)
Structured Settlement
102.
insurer cuts a check for the amount of the damages, but<br />the claimant is not required to sign a release form
a)
Full Release
b)
Scheduled Payment Release
c)
Advance Payment
d)
No Release Form
e)
Structured Settlement
103.
breaks up the indemnity into a series of smaller<br />payments
a)
Full Release
b)
Scheduled Payment Release
c)
Advance Payment
d)
No Release Form
e)
Structured Settlement
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