WorksheetsBOOK 1 - 113 câu
Total questions: 113
Worksheet time: 57mins
The main purpose of indemnity is to
Enable profit-making
Compensate for losses
Avoid legal disputes
Reduce premiums
What principle requires the insurer and the insured to act honestly and disclose all material facts?
Indemnity
Utmost good faith
Nature of risk
none of the three principles mentioned
If an insurer overcharges fees, they violate the principle of:
Insurable interest
Utmost good faith
Indemnity
none of the three principles mentioned
The insured must disclose accurate information about their insurable interest to avoid violating due to...
none of the three principles mentioned
principles of indemnity
principle of nature of risk
principles of utmost good faith
Which factors do insurers consider to determine premiums?
Policyholder's honesty and duration of policy
Frequency and severity of risk
Policy terms and conditions
Coverage limits
A policyholder's financial interest in the insured property or person is called:
Contribution
Insurable interest
Indemnity
Proximate cause
Utmost good faith ensures:
Only the insurer is honest
Both parties disclose material facts
Profits for the insurer
Faster claims processing
Indemnity ensures that the insured:
Receives compensation equal to the loss
Profits from insurance
Pays lower premiums
Avoids policy exclusions
If the insured misrepresents the value of their assets, they breach the principle of:
Indemnity
Contribution
Utmost good faith
Subrogation
Frequency and severity/of risk impact:
Coverage limits
Premium amounts
Claim processing time
Policy exclusions
Insurable interest must exist:
Only during the claim filing
When the policy is purchased
At both policy purchase and claim filing
Only during policy renewal
A policyholder trying to recover more than their actual loss violates the principle of:
Indemnity
Utmost good faith
Nature of the risk
Contribution
Which principle prevents an insured from making a profit from an insurance claim?
Indemnity
Utmost good faith
Contribution
Nature of risk
The severity of a loss is determined by:
Policy exclusions
The cost of damage or liability
Premium amounts
The insured's honesty
An insurance agreement is built on mutual trust, ensuring:
Indemnity
Utmost good faith
Contribution
Subrogation
Premiums are set based on:
The insured's honesty
The frequency and severity of potential losses
The insured's insurable interest
Contribution between insurers
If a loss is caused by factors excluded from the policy, the insurer may:
Increase premiums
Decline the claim
Pay partial compensation
File a lawsuit
What is the purpose of insurance?
To prevent unpleasant things from happening
To protect people against risk
To eliminate risks completely
To avoid financial costs in any situation
How does insurance work?
The insured pays money for coverage that eliminates risks completely
A company covers all losses without any exchange of payments
An insurance company covers losses or accidents in exchange for payments
An insurance policy only covers partial losses with no contract involved
The insured reported a(n) …… and made a claim.
loss
accident
damage
event
Insurance companies take on risk …… money.
for the payment of
in exchange for
due to
in case of
Many people like to …… their risk to an agency.
shift
transfer
surrender
avoid
The insurance company received the amount of money owed. It is …… .
performance
payment
placement
prevention
The company that sells insurance policies paid the claimant is called …… .
inspector
insurer
investor
insured
Insurance is a way of managing the possibility that something unpleasant might occur.
risk
damage
loss
severity
The person covered by an insurance policy must pay a premium.
insured
ensured
assured
insurer
For a policy to be valid, a person must pay a(n) regular amount of money to an insurance company.
premium
interest
fund
fee
A basic idea or theory that affects the way that something is done is called …… .
method
principle
theory
practice
The measurable value of something, which is the factor that allows it to be insured is called …… .
insurable interest
asset
risk
liability
Directly affected or determined by something else is referred to as …… .
dependent on
caused by
influenced by
determined by
The number of times that something happens in a specific time period is called …… .
frequency
occurrence
occurrence rate
period
To give someone money to replace something that was lost is to …… .
repay
compensate
reimburse
refund
The quality of approaching an agreement with honesty is known as …… .
integrity
trustworthiness
utmost good faith
transparency
The quality of approaching an agreement with honesty is known as …… .
integrity
trustworthiness
utmost good faith
transparency
A measure of how bad or serious something is called …… .
intensity
severity
degree
seriousness
An amount of money that someone pays for a professional service is called a …… .
payment
cost
fee
charge
How do insurers set their fees?
By guessing potential losses based on customer preferences.
By assessing the costs that insurable risks might incur.
By randomly assigning fees to different policies.
By charging a standard fee for all types of risks.
What is the importance of utmost good faith in an insurance agreement?
It ensures both parties receive equal financial benefits.
It allows insurers to charge higher premiums.
It requires both parties to be honest and act with positive intent.
It permits insurers to deny claims without explanation.
Why is it important to limit compensation to the actual value?
To prevent overcompensation and maintain fairness
To ensure that the insured party gains more than they lose
To encourage insurance companies to increase premiums
To cover all possible expenses, even beyond the actual loss
What happens if utmost good faith is not followed in an insurance contract?
The insurance policy becomes void and unenforceable
The insurer will automatically increase premiums
The insured will receive a higher payout
The insurance company can refuse to cover losses or claims
How do insurers balance risk and affordability?
By offering coverage without assessing the risk.
By increasing premiums for all policyholders regardless of risk
By evaluating risk factors and adjusting premiums accordingly
By covering all potential risks, regardless of cost.
What are some different types of insurance for homes?
Auto insurance
Renter's insurance, landlord insurance, and home insurance
Disability insurance
Health insurance
Renter's insurance is used
to cover the owner's property
to protect against natural disasters
to cover the renter's personal belongings
to cover home maintenance costs
Dental insurance usually cover.
preventative health care
care of the teeth and mouth
chronic illnesses
long-term medical care
What is the main difference between regular health insurance and long-term care insurance?
Health insurance covers dental care, but long-term care does not
Long-term care insurance is for specialized, ongoing care, while health insurance covers general medical care
Health insurance is only for emergencies, while long-term care covers general medical care
Long-term care insurance only covers dental work
Gap insurance prevent …… .
losses when damages exceed the value of a vehicle
medical expenses for chronic conditions
financial losses due to theft in a rented home
costs associated with long-term care
Which of the following is true about specialized insurance?
It is beneficial to all individuals.
It is designed for specific industries.
It only covers personal possessions.
It is the same as all-risk insurance.
Which industry might benefit most from media liability insurance?
education
communications
health care
agriculture
A customer who enters into an insurance policy agreement with an insurance company is called a policy …… .
permission
property
injury
holder
If you go on a vacation to another country, you can purchase …… insurance in the event some kind of unforeseen accident occurs and may require you to seek medical attention.
car
home
travel
rental
What is the main purpose of renter's insurance?
To cover the cost of repairing the building where the tenant lives
To protect the landlord's property from tenant damage
To provide coverage for the tenant's personal belongings and liability
To ensure tenants pay rent on time
The type of coverage that protects the insured from risk in general, with the exception of situations that are specifically noted in the policy.
All-risk insurance
All possible risk insurance
Life insurance
Specialized insurance
The insurance protects someone against financial loss if his or her vehicle damages or is damaged by another vehicle.
loss insurance
auto insurance
all risk insurance
gap insurance
The type of coverage that pays for burial and funeral expenses when the insured passes away.
dead insurance
burial insurance
life insurance
non-life insurance
The type of coverage that protects providers of auto loans from financial loss caused by borrowers who do not buy insurance.
collateral protection insurance
collateral insurance
lending insurance
landlord insurance
The type of health coverage that protects the insured against the financial costs of treatments for his or her teeth and mouth.
tooth insurance
health insurance
dental insurance
dis
The type of health coverage that protects the insured against the financial costs of treatments for his or her teeth and mouth.
tooth insurance
health insurance
dental insurance
disability insurance
The insurance that a person receives if he or she becomes disabled and can no longer work.
disability insurance
health insurance
work insurance
life insurance
The type of coverage that protects someone in the event of damage to a vehicle, when the amount of money he or she owes exceeds the vehicle's value.
auto insurance
damage insurance
gap insurance
collateral protection insurance
The type of coverage that protects the insured from financial loss in the event of a kidnapping.
landlord insurance
kidnap and ransom insurance
collateral protection insurance
life insurance
The type of coverage that protects the insured against the financial costs incurred by lawsuits and other legal situations.
legal expense insurance
collateral protection insurance
liability insurance
all-risk insurance
The type of coverage that protects the insured from being held financially responsible for something, and may cover a variety of situations.
Burial insurance
Liability insurance
All-risk insurance
Property insurance
The type of insurance covers funeral costs
Life insurance
Burial insurance
Memorial coverage
Death benefit insurance
The type of insurance covers specialized, ongoing care
Long-term care insurance
Health insurance
Dental insurance
Auto insurance
The type of insurance protects media companies and their employees from claims related to collecting and communicating information.
Property insurance
Media liability insurance
All-risk insurance
Burial insurance
The type of insurance is focused on a specific subject
Generalized
Specialized
Individualized
Customizable
The family's personal belongings covered under the homeowner's policy
Assets
Possessions
Valuables
Properties
A person who is named by a policy holder and compensated by an insurance company when a policy holder dies.
a broker
an agent
a beneficiary
a bond
Property owners typically purchase this type of insurance
Burial insurance
Property insurance
Liability insurance
All-risk insurance
A homeowner need this type of insurance if they rent out the property
Home insurance
landlord insurance
Renter's insurance
Auto insurance
Which department is responsible for monitoring profits and losses in an insurance company?
Customer Service
Claims
Accounting
Underwriting
Which department uses company money to earn more money on the stock market?
Accounting
Investment
Claims
Underwriting
What department handles general questions, complaints, and requests for information from clients?
Claims
Underwriting
Customer Service
Investment
Who determines if an applicant is eligible to receive a policy?
Accounting Department
Underwriting Department
Claims Department
Investment Department
After becoming a policyholder, which department does a client primarily interact with for claims?
Investment
Underwriting
Claims
Customer Service
Which two departments are most directly responsible for managing money within an insurance company?
Customer Service and Claims
Underwriting and Claims
Accounting and Investment
Claims and Investment
Which department is responsible for handling client claims?
Claims Department
Customer Service Department
Accounting Department
Legal Department
Which department works with executives to set company policies and pricing?
Actuarial Department
Underwriting Department
Investment Department
Human Resources Department
Which department ensures the company follows government regulations?
Legal Department
Claims Department
Accounting Department
Customer Service Department
Which department is primarily focused on handling company finances?
Investment Department
Claims Department
Underwriting Department
Human Resources Department
Which department handles staffing concerns and company equipment?
IT Department
Human Resources Department
Accounting Department
Customer Service Department
Which department is responsible for managing the company's financial reports and records?
Accounting Department
Claims Department
Legal Department
Investment Department
Which department is responsible for determining whether an applicant qualifies for a policy?
Claims Department
Underwriting Department
Investment Department
Customer Service Department
Which department handles questions, complaints, and information requests from clients?
Claims Department
Customer Service Department
Actuarial Department
Legal Department
Which department is focused on managing risks related to company investments?
Legal Department
Claims Department
Investment Department
Under
Which department is focused on managing risks related to company investments?
Legal Department
Claims Department
Investment Department
Underwriting Department
Which department is responsible for evaluating the financial needs of the company and setting the pricing for policies?
Underwriting Department
Actuarial Department
Claims Department
Investment Department
Which department is in charge of handling legal matters and ensuring the company complies with regulations?
Legal Department
Claims Department
Accounting Department
Human Resources Department
Which department approves or denies policyholders' requests for payouts?
Claims Department
Home Office
Commercial Underwriting Department
Human Resources
Where do top executives work in a company?
Claims Department
Home Office
Commercial Underwriting Department
IT Department
Which department approves or denies applications for business policies?
Commercial Underwriting Department
Claims Department
Human Resources
Accounting Department
Which department handles training and staff-related matters?
IT Department
Human Resources
Legal Department
Accounting Department
The insurer accepted to take on the risk in …… for money.
transfer
exchange
payment
loss
The main purpose of .…… is to manage losses when certain events occur.
insurance
transfer
risk
payment
The insurer's prices depend on the nature of the …… included in the contract.
transfers
risks
payments
entities
The insurer reassured his client that in case of a loss the insurance company would provide funds to …… him.
regulate
decline
compensate
protect
The client would never agree to pay an excessive amount of …… every month for the insurance plan.
entities
severity
funds
fees
…… acts as customer protection offered by insurers in certain circumstances.
Indemnity
Principle
Severity
Funds
Both insurer and client approached the agreement with …… .
utmost good faith
indemnity
frequency
insurable interest
When he bought his new car he purchased …… from a popular insurance company.
disability insurance
life insurance
auto insurance
dental insurance
Jim's mother had to move to a health-care facility due to some mobility problems she faced, so he purchased …… .
dental insurance
renter's insurance
home insurance
disability insurance
Due to the defective public health system he purchased …… for his whole family.
health insurance
landlord insurance
renter's insurance
gap insurance
He had …… so when he died, his two daughters received a generous amount of money.
life insurance
gap insurance
long-term care insurance
home insurance
The company owner had purchased …… several years ago, so he did not care about the financial costs incurred by lawsuits and other legal situations.
kidnap and ransom insurance
property insurance
legal expense insurance
burial insurance
Jane's house had serious damages because of the recent floods, but she received financial compensation due to her …… .
media liability insurance
liability insurance
all-risk insurance
property insurance
My father decided to purchase …… , as it covers a wide range of possible threats.
collateral protection insurance
burial insurance
all-risk insurance
kidnap and ransom insurance
A(n) …… specializes in long-term insurance policies such as pensions and annuities.
general insurance company
casualty insurance company
life insurance company
property insurance company
In a(n) …… , the investors or shareholders are the owners of the company.
mutual company
property insurance company
proprietary company
general insurance company
The …… sells limited term policies covering a range of potential losses, however it does not offer long-terms policies.
casualty insurance company
general insurance company
admitted insurer
non-admitted insurer
He had to contact the …… , which handled the company's financial records and taxes.
commercial underwriting department
actuarial department
accounting department
claims department
When you have any questions or complaints about a product, you usually have to contact the …… .
home office
investment department
legal department
customer service department
He could not cooperate with his colleague so he contacted the …… of the company.
actuarial department
human resources
claims department
personal lines underwriting department
Connie had problems with her Internet connection at the office so she called the …… of the company.
home office
investment department
IT department
legal department
