An elimination (waiting) period is an example of a(n) A) exclusion. B) deductible. C) other-insurance provision. D) coinsurance provision. ANSWER Answer: B
Date: September 19th, 2020
The section of the insurance policy that includes provisions that qualify or limit the insurer’s promise to perform is the A) definitions. B) insuring agreement. C) exclusions. D) conditions. ANSWER Answer: D
Date: September 19th, 2020
Janet hit a wall causing a large dent in the fender of her car. She was busy at work and delayed reporting the damage to her insurer for 9 months. When she finally reported the claim, her insurer denied payment, stating, “Although such a loss is usually covered, you are required under the terms of […]
Date: September 19th, 2020
Eric’s property was damaged in an accident. He phoned his agent to see if the loss was covered under his property insurance policy. The agent said, “As long as the cause of loss is not specifically excluded in the policy, the loss is covered.” Based on the agent’s answer, what type of insuring agreement appears […]
Date: September 19th, 2020
A provision in a disability income insurance policy that requires a person to be disabled for 60 days before receiving benefits is an example of a(n) A) calendar year deductible. B) grace period. C) elimination period. D) probationary period. ANSWER Answer: C
Date: September 19th, 2020
Kate is covered under her employer’s group health plan. She is also covered as a dependent under her husband’s group health plan. Under the usual coordination-of-benefits provision, how will each company respond to a claim filed by Kate? A) Kate’s plan is primary, and her husband’s plan is excess. B) Her husband’s plan is primary, […]
Date: September 19th, 2020
Which of the following statements about a calendar-year deductible is (are) true? I. It requires the insured to pay a specified amount of each claim regardless of when the claim occurs during the year and regardless of any previous claims during the year. II. It is used only in policies which cover direct property losses. […]
Date: September 19th, 2020
Under the terms of Jenny’s auto insurance policy, she must pay the first $500 of any physical damage loss to her vehicle before her insurer will pay anything. What type of deductible is included in Jenny’s auto insurance policy? A) calendar-year deductible B) waiting period C) straight deductible D) aggregate deductible ANSWER Answer: […]
Date: September 19th, 2020
The deductible used for automobile collision losses is an example of a(n) A) calendar year deductible. B) elimination period. C) straight deductible. D) aggregate deductible. ANSWER Answer: C
Date: September 19th, 2020
Mark reviewed his homeowners policy. He learned that his personal property was insured on an actual cash value basis. He would like replacement cost coverage on his personal property. He contacted his agent who said, “I’ll simply add an amendment to your contract that changes the basis of recovery to replacement cost.” The written provision […]
Date: September 19th, 2020
