Quiz Detail

Q1 . All of the following are required elements of a legal contract EXCEPT

A Consideration

B Competent parties

C Countersignature

D Agreement

Q2 . Replacement cost minus depreciation best defines

A Actual cash value

B Direct loss value

C Insurable interest

D Financial risk

Q3 . Attachments that broaden or amend coverage in a property or casualty policy are known as

A Binders

B Amendments

C Endorsements

D Conditions

Q4 . Placing an insrued in the same financial condition in which he existed before a loss occurred best describes

A Insurable interest

B The principle of indemnity

C Replacement cost

D Market value

Q5 . Which of the following provisions lists the coverage limit provided by an insurance policy and its cost?

A Declaration page

B Insuring agreement

C Conditions

D Exclusion

Q6 . Which of the following would be considered a competent party for purposes of entering into an insurance contract?

A An inebriated person

B Someone under the influence of drugs

C An individual who has the flu

D An insane individual

Q7 . With regard to binders, which of the following statements is CORRECT?

A A binder may be oral or written

B A binder is not usually valid for more than 90 days

C A binder may be cancelled by the insured with 2 days' notice

D Binders are valid for 15 days after the policy is issued

Q8 . Which of the following is most closely related to the concept of insurable interest?

A Loss Valuation

B The theory of indemnity

C Actual cash value

D Replacement cost principle

Q9 . Answers to specific questions on an insurance application that are guaranteed to be true best defines

A Representations

B Mis represenations

C Concealments

D Warranties

Q10 . All of the following are duties or responsibilities of an insurance producer EXCEPT

A Evaluating client needs

B Collecting premiums and settling small losses

C Leaving a "Notice to the Applicant" with a new client

D Evaluating an insured's financial condition

Know The Basics Of Insurance In This Quiz