Insurance MCQ

What type of compensatory damages will pay for pain and suffering and disfigurement? a) Normal b) General c) Special (specific) d) Tort Answer: B

If the insured owns a watch valued at $10,000, full coverage can be provided on a homeowners policy by purchasing the Greg owns several buildings, each at a different location and insured on a separate policy. What type of coverage does Greg have? a) Special b) Specific c) Schedule d) Blanket Answer: B

Which of the following is NOT consideration on the part of an insured? a) Promise to submit timely claims b) Representations on the application c) Submitting a Statement of Good Health d) Premium payment

If a resident insurance producer moves from Tennessee to another state, he/she must file a change of address and provide certification from the new resident state within how many days of the change of legal residence? a) 10 days b) 20 days c) 30 days d) 60 days Answer: C

If a nonrenewal notice DOES NOT contain a reason for the nonrenewal action, how many days does the insured have to issue a written request for a reason? a) 20 days after the effective date of the nonrenewal b) 30 days after the effective date of the nonrenewal c) 10 days after the effective date of the nonrenewal d) 15 days after the effective date of the nonrenewal  Answer: D

A person required to be licensed under the laws of this state to sell, solicit, or negotiate insurance is known as a) A Commissioner b) A Business Entity c) An Insurance Producer d) None of the above Answer: C

All of the following are true regarding deposit premium EXCEPT a) It is 50% of the actual premium. b) It could be adjusted by the audit. c) It must be paid in advance. d) It is an estimated premium paid at the policy issue. Answer: C

Insurers that use credit information to underwrite or rate risks for personal insurance may NOT use credit information that is older than a) 3 months. b) 12 months. c) 24 months. d) 36 months.

Events or conditions that increase the chances of an insured loss occurring are referred to as a) Risks. b) Perils. c) Hazards. d) Exposures. Answer: C

Which of the following statements is true concerning the special form dwelling policy? a) Coverage A is for all-risk perils, and Coverage C is for basic perils only. b) Coverage A is for all-risk perils, and Coverage C is for the broad form perils. c) Both Coverage A and Coverage C are provided on an all-risk basis. d) Both Coverage A and Coverage C are provided for the broad form perils. Answer: A

The personal injury liability endorsement to an HO policy applies to all the following EXCEPT a) Invasion of privacy. b) False arrest. c) A third party breaks a leg when the insured knocks him down. d) Slander.

When a mortgagee is named in a mortgagee clause attached to a fire or other direct damage policy a) The loss reimbursement will be paid to the mortgagee as their interest may appear. b) The mortgagee's rights of recovery will not be defeated by any act or neglect of the insured. c) The mortgagee may bring a suit in their own name to recover damages to covered property. d) All of the above are true. Answer: D

Who is personally liable for all contracts of insurance unlawfully made within Tennessee on behalf of an unauthorized insurer? a) The insured is liable. b) The State of Tennessee is liable. c) The individual making the contract on behalf of the unauthorized insurer is liable. d) The unauthorized insurer is liable.

If an individual insures his dwelling and contents under a DP-3, he would be protected against loss by all of the following perils EXCEPT a) Damage to the dwelling caused by burglars. b) Theft of personal property located in the dwelling. c) Damage caused by vandals. d) Damage caused by the weight of ice, snow, or sleet. Answer: B

All of the following are other coverages included in both the broad and special form dwelling policy EXCEPT a) Collapse. b) Breakage of glass. c) Lawns, trees, shrubs, and plants. d) Theft of personal property. Answer: D

An applicant who knowingly fails to communicate a fact that would help an underwriter make a sound decision regarding coverage is guilty of a) Misrepresentation. b) Concealment. c) Lying. d) Fraud. Answer: B

The broad theft coverage endorsement on the dwelling form specifies all of the following limitations EXCEPT a) $1,000 on silverware. b) $200 on money. c) $1,500 on securities. d) $1,500 on jewelry. Answer: A

Which of the following dwelling coverage forms would pay replacement cost for the dwelling? a) DP-2 and DP-3 b) DP-3 only c) All dwelling property coverage forms d) DP-1 Answer: A

If a property is covered by Company A for $20,000 and Company B covers the same property for $40,000, how much will Company A pay on a $24,000 loss? a) $12,000 b) $8,000 c) $0 d) $20,000 Answer: B

The part of a property policy that shows the amount of insurance, premium, and policy term is the a) Exclusions. b) Declarations. c) Insuring clause. d) Conditions. Answer: B