Q-11- Insurance works on
- Eliminate risk
- Give everyone total security
- Spread the losses of a few among the many
- Spread the losses of the many among the few
Option-3 Insurance works on spreading the losses of a few among the many.
Q-12- A peril is
- A mental attitude
- An event which may cause a loss to occur
- A condition attributed to the human element
- A condition which makes a loss more severe
Option-2 A Peril is an event which may cause a loss to occur.
Q-13- Which is true about Lloyds of London?
- It is an insurance market
- It is not an insurance company
- It’s groups of members are known as syndicates
- All of the above
Option-4 All are true
Q-14- A Deductible is
- Is a standard amount
- Applies to every policy
- Is a percentage of the liability amount
- Is the amount of the loss an insured must pay
Option-4 A deductible is an amount of the loss an insured must pay.
Q-15- A Material Fact
- Is the subject of insurance
- Is any fact that related to the item insured
- Need only be divulged if the insured is asked about it
- Is anything that could affect the premium being charged
Option-4 A Material fact is anything that could affect the premium being charged.
Q-16- Which of these statements is FALSE? If an insurer issues a policy that differs from the application
- The policy is null and void
- Notification of the difference must be in writing
- The Insurer must notify the insured of the difference.
- If insured does not object within the specified time, the policy stands as written
Option-1 The policy is null and void
Q-17- The principle of Insurance Utmost Good Faith under all policies
- Is an essential of all contracts
- Is a disclosure of all facts honestly
- Applied to the insured and the intermediary only
- Means an insured must answer all questions of an application
Option-2 Utmost good faith is a disclosure of all facts honestly by insured.
Q-18- Collateral Benefits are
- Paid to the mortgagee
- Always part of the policy
- Part of Liability Coverage
- Sources of loss payment from outside the auto policy
Option-4 Collateral benefits are sources of loss payment from outside the auto policy.
Q-19- A proof of loss
- May be orally given
- Must be prepared by a legal advisor
- Details a loss and the resulting claims
- Has no time limit in which it must be submitted
Option-3 A proof of loss is details a loss and the resulting claims.
Q-20- Which of the below statement is true about ‘Salvage’
- Always belongs to the insured.
- Is what remains after a fire loss
- Consists of the useless debris of a total loss
- Belongs to the insurer when the claim has been paid
Option-4 Salvage belongs to the insurer when the claim has been paid.
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