Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
13 Cards in this Set
- Front
- Back
|
What is another name for the Automobile Insurance Plan? |
Assigned Risk Plan |
|
|
Which one of the following risk terms describes a building in which no one is in, but the occupants intend to return? |
Unoccupied |
|
|
The Premises Burglary Coverage form covers which one of the following perils? |
Burglary of a security guard while a store is closed |
|
|
Which of the following loss ratios formulas is correct? |
(incurred losses + loss adjustment expenses)rned premium. Rational Insurance companies evaluate the relationship of loss expeses to income using a loss ratio forumla: (incurred losses + loss adjustment expenses)rned premium. The loss ratio is one component in determining profitability |
|
|
Coverage C of the commercial general liability policy will cover reasonable medical expenses incurred within how many years of the accident? |
1 year |
|
|
Which one of the following excluded from the Coverage D of the farm property form? |
Extra expenses coverage for farm operations |
|
|
If a dispute arises over who is at fault for an auto accident, what process is used to settle the dispute? |
Arbitration Rationale: If the insure and insurance company do not agree on whether the covered person is legally entitled to recover damages or the amount of damages, either party may make a written demand for arbitration. Arbitration is a form of alternative dispute resolution where an unbiased person or panel renders an opinion as to the responsibility for one the extent of the loss. |
|
|
a chance, possibility, or uncertainty of loss is known as
|
risk |
|
|
What policy condition must be met before the extensions of coverage in the building and personal property form is activated? |
a coinsurance of 80% or higher is required |
|
|
The insured has a named peril policy that covers hail, fire, wind, and lightning. Which one of the following events would be covered? |
A roof damaged because of an electrical storm |
|
|
For how many days does the boiler and machinery policy provide automatic coverage for newly acquired property? |
90 |
|
|
What is one of the major differences between the application of commercial blanket bond's policy limit versus a blanket position bond's policy limit? |
A commercial blanket bond's policy limit applies for each loss. A blanket bond's policy limit applies separately to each employee in that position. |
|
|
A bid bond guarantees to the entity awarding the contract that the bidding contractor, if selected, will undertake the contract and will furnish a performance bond for the project. What will the bond do if the contractor does not take the job? |
Agree to pay the difference between the selected contractor's bid and the bid that is then accepted |
