QUESTION Which of the following is NOT an example of a risk covered under product liability insurance? A) Baby Jessica was found suffocated in her crib, with her face pressed up against the crib’s bumper pad. B) Gene was born with an undeveloped arm and ear on the left side of his body. His deformities […]
Date: September 3rd, 2020
QUESTION Wayne and his buddies were angry and frustrated that their favorite football team lost the Super Bowl. Full of frustration and energy, the friends and dozens of other disappointed fans went around town smashing windows and looting local businesses. Which type of insurance covers this risk? A) public liability B) theft, burglary, robbery C) […]
Date: September 3rd, 2020
QUESTION Which of the following types of insurance is correctly matched with its definition? A) disability insurance: insurance in which, in return for a fixed monthly fee, individuals are allowed to choose from a restricted list of salaried doctors and other health professionals B) fee-for-service medical plans: insurance that allows individuals to choose their physician […]
Date: September 3rd, 2020
QUESTION For which situation would a rider or endorsement to a homeowner’s policy be appropriate to cover a home business? A) a dog groomer with grooming stations set up in the basement B) a personal trainer with fitness equipment in the basement and clients coming and going C) a tax preparer who has a few […]
Date: September 3rd, 2020
QUESTION Which of the following is NOT an insurer’s requirement for coverage? A) The policyholder must have an insurable interest. B) The loss should be accidental. C) The loss should be very great. D) The insurer is able to spread the risk widely. E) The loss must be measurable. ANSWER Answer: C Explanation: C) […]
Date: September 3rd, 2020
QUESTION Which of the following is an uninsurable risk? A) theft B) homicide C) tornados D) wildfires E) wear and tear ANSWER Answer: E Explanation: E) Personal risks, market risks, and political risks are uninsurable risks. Other uninsurable risks are wars, recessions, strikes, and gradual rusting or wear and tear.
Date: September 3rd, 2020
QUESTION Which of the following is an insurable risk? A) a tsunami B) being fired or laid off C) business competition undercutting you on price D) a regime change in the Middle East E) a war in Africa ANSWER Answer: A Explanation: A) A tsunami is an insurable risk because it meets the insurer’s […]
Date: September 3rd, 2020
QUESTION Which insurance term is correctly paired with its definition? A) premium: a notice by the insured to the insurer that payment is expected to cover a loss B) reserves: the specified amount that a policyholder must pay toward a loss before the insurer will pay anything C) deductible: funds received from premiums and left […]
Date: September 3rd, 2020
QUESTION Which of the following is an example of speculative risk? A) Miguel runs a nursery and sells starter plants in the spring. He has insurance against loss of inventory due to a late spring frost. B) Penelope works as a book editor from her home office. She has insured her office equipment against fire […]
Date: September 3rd, 2020
QUESTION Who is most likely to pay the least for life insurance? A) firemen B) journalists C) loggers D) farmers E) roofers ANSWER Answer: B Explanation: B) Firemen, loggers, farmers, and roofers all experience high fatality rates. Workers in the information industry suffer few fatal work injuries.
Date: September 3rd, 2020
