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Qbank Q&A
Exam Questions from Unit 1, 2, 3, 4
| Question | Answer |
|---|---|
| What risk is insurable | Pure Risk |
| Individuals who agree to share each others losses are who? | Reciprocal companies |
| A contract in which 1 insurer cedes all or part of a risk to another insurer is known as... | Reinsurance |
| Which type of authority does an insurer give to its agents by means of the agents contract? | Express |
| Which department within an insurance company organization is typically responsible for helping to cover the insurers exposure to loss? | Reinsurance department |
| An insurance company owned by its policyholders, who receive a return of unused premiums in the form of policy dividends is a... | Mutual Company |
| Examples of insurable risks are... | Due to chance Accidental to the customer Has a determinable value |
| Agents have the responsibility to... | Field underwriting each risk Review insured's coverage Explain coverages |
| Jim Smith knowingly and willfully obtained personal information from an insurer under false accusations, he may be fined up to... | $25,000, imprisoned 9 months, both |
| In the WI Insurance Plan (WIP), what is the max limit of coverage for Basic property insurance on a covered dwelling? | $200,000 |
| Rebating is an example of... | Unfair Inducement |
| If someone's insurance policy has less favorable terms, the insurer must notify the insured within how many days? | 60 days |
| Insurance companies are allowed to __________ to domestic abuse victims. | Not renew coverage based on excessive claims occurred |
| What is not required when reinstating a revoked license? | Completion of relicensing education |
| A nonrenewal has to be sent to the policyholder with how many days before contracts expiration date? | 60 days |
| In Wisconsin, policy RATES are... | Use and File |
| In Wisconsin, policy FORMS are... | File and Use |
| In WI, initial premium rates and rate changes for property and casualty ins. must be filled with the office of Commissioner 30 days after they become effective. For this, WI is known as... | Use and File |
| Insurance Security Fraud is not obligated to pay more than.... (unless for workers comp) | $500,000 |
| If something was a total loss (without criminal fault of the insured), the amount of loss will be... | Whatever the policy limits are |
| If an insured has a nonpayment of a premium, how much notice does the insurer need to give insured for cancellation | 10 days |
| A surplus lines agent does not need to ___________ when writing a contract for surplus lines. | Make certain that the insurer has been authorized by the Commissioner as a reliable insurer. |
| Within how many days must an intermediary report a change in address to the Commissioner? | 30 days |
| SR-22 is used for what purpose? | To certify Motor Vehicle Department that a driver has insurance coverage meeting the minimum limits required |
| Farmers are considered employers if the have ___ amount of employees for ___ consecutive days | 6 employees for 20 consecutive days |
| The Department of Insurance does what? | Enforces Insurance laws |
| Domestic insurers' examinations are paid for by the _______? | Insurance company |
| Any ambiguity in the contract should be interpreted in favor of the _____? | Insured |
| Why do insurance policies define who is considered an insured under a policy | To specify who is covered in addition to the name insured |
| In describing the concept of subrogation, the insurer claims the right to... | Collect from a negligent 3rd party |
| "We will pay damagers a client becomes liable to pay because of bodily injuries to others" is an example of... | An insuring agreement |
| The list of perils covered under a policy is found in what part of the policy? | Insuring agreement |
| What describes a short-rate cancellation? | Upon cancellation, the insurance company keeps all earned premium plus overhead expenses incurred |
| A Fair Credit Reporting Act's notice must be given to the consumer within how many days after the report is requested | 3 days |
| A Compulsive Forfeiture is a fine of how much? | $5,000 each day a violation continues after 2 weeks |
| What information is important to the underwriter? | Consumer reports, Government Bureaus, and Agent/Producer comments |
| The purpose of the Conditions Section of an insurance policy is to... | list the obligations of the insured and insurer |
| What are the (4) basic parts of an insurance contract? | Declarations, insuring agreement, conditions, and exclusions |
| When an insurance company cancels a policy, what is the method used to determine the premium due? | Pro Rata |
| Coinsurance Formula | (insurance carried)/(insurance required) X (loss) = (claim payment) - (deductible) |
| What is the purpose of coinsurance? | Ensures the property is insured to a certain value |
| The amount of payment that comes into play when an insured fails to carry the sufficient amount of insurance is sometimes referrred to as | Coinsurance Penalty |
| Liability insurance covers.... | 3rd party losses |
| What is the purpose of liability insurance? | To protect the insured from financial loss incase he becomes responsible to pay for damages caused to others |
| What are the (4) that establish negligence | legal duty owned, breach of legal duty owned, proximate clause, and damages |
Created by:
marerickson
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