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WorksheetsInsurance Concepts and Calculations Quiz
Total questions: 20
Worksheet time: 10mins
What is an occurrence in insurance policies?
A planned event causing loss
An accident or continuous exposure causing loss
A single event causing loss
An intentional event causing loss
What is the limit of liability in the given example?
$20,000
$60,000
$80,000
$100,000
What percentage of the replacement value is required by the coinsurance provision?
100%
80%
60%
50%
What does the pro-rata liability clause ensure?
Each insurer pays its share of the loss
The insured receives more than the loss amount
The insured pays the deductible
The insurer pays the full loss amount
What is an example of an extension of coverage?
Deductible reduction
Coinsurance penalty
Premium increase
Newly acquired property
How is the ratio of insurance purchased to required insurance calculated?
$60,000 / $100,000
$60,000 / $80,000
$100,000 / $60,000
$80,000 / $100,000
What is the Pair and Set Clause?
A clause that extends coverage to pairs and sets
A clause that increases the deductible for pairs and sets
A clause that specifies options for reimbursement if part of a pair or set is lost
A clause that covers the full value of a pair or set
What is the coinsurance penalty?
The total loss amount
The deductible applied to a claim
The amount of loss not covered due to underinsurance
The premium paid for insurance
What is pro-rata cancellation?
Cancellation with penalty
Cancellation with no refund
Cancellation with refund of unearned premium
Cancellation with full refund
What is the Valued Policy Law?
A law that requires insurers to pay the actual cash value
A law that requires insurers to pay the full value of insurance in a total loss
A law that increases the deductible
A law that extends coverage
What is an unoccupied property?
A property void of any belongings
A property with personal belongings but no permanent occupants
A property with temporary occupants
A property with occasional use
What is the impact of having too much insurance?
The insurer cancels the policy
The insured pays more premium than necessary
The insured pays less premium
The insurer pays more than the limit of liability
What is the purpose of the agreed value provision in commercial property insurance?
To increase the deductible
To avoid the coinsurance penalty
To extend coverage
To reduce the premium
What is cancellation in insurance terms?
Extension of a policy
Increase of premium
Termination of a policy before expiration
Renewal of a policy
What is flat cancellation?
Cancellation with penalty
Cancellation with no refund
Cancellation before policy start date with full refund
Cancellation after policy start date
What is a vacant property?
A property with occasional use
A property with temporary occupants
A property void of any belongings
A property with personal belongings but no occupants
What does the insurance to value ratio define?
The deductible amount
The proportion of insurance to the value of the property insured
The premium amount
The total loss amount
What is nonrenewal of a policy?
Not renewing a policy at the end of the period
Renewal of a policy
Extension of a policy
Termination of a policy before expiration
What is short rate cancellation?
Cancellation with full refund
Cancellation with no refund
Cancellation with penalty for the insured
Cancellation with refund of unearned premium
What happens if the insurance to value ratio is too low?
The insurer cancels the policy
The insurer pays the full loss amount
The insurer pays a proportion of the loss
The insurer pays more than the loss amount
