QUESTION Which of the following is an example of risks covered under public liability? A) Raymond slipped and fell on ice in the parking lot at the factory where he worked. B) Cindy works as a technician at a tire service center. Her colleague neglected to put a car in park, and the car ran […]
Date: September 3rd, 2020
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 Which situation is insurable? A) Eileen wants to insure her sister’s house against termite damage. B) Billy wants to help his father by holding the workers’ accident insurance for his father’s steel working company. C) Robert wants to take out a policy to protect his nephew’s store from theft. D) Maxine wants to insure […]
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
