Exam (elaborations)
RIBO Insurance Course Practice Questions Week 3 Questions with Correct Answers
- Course
- Institution
RIBO Insurance Course Practice Questions Week 3 Questions with Correct Answers
[Show more]
Content preview
RIBO Insurance Course Practice Questions Week 3Questions with Correct Answers
What is a main benefit of having an insurance application completed in
writing and signed by the applicant?
Select one:
a. Provides accurate documentation of the coverage requested and
confirms the accuracy of the information.
b. Is less costly for the insurer to underwrite written applications than
oral applications
c. Allows the insured to get a premium discount of fifteen percent
d. Allows the insured to choose which questions to answer and which to
leave blank Correct Answer-a. Provides accurate documentation of the
coverage requested and confirms the accuracy of the information. The
benefit of a written application is that it provides accurate
documentation of what was requested, and indicates the intentions of the
parties at the time the application was made—particularly if the client
signs it, as the signature attests to the accuracy of the information.
What other types of supplemental applications might an intermediary
add to a standard application?
Select one:
a. Home business and oil tank
b. Overland water and criminal history
c. Rental supplements and pre-existing damage
,d. Wood heat and sewer back up Correct Answer-a. Home business and
oil tank. In addition to the introductory client profiles form, the
intermediary may use other specific application forms for wood heat,
rental supplements, oil tanks, overland water, or business in the home.
What can result from an agent/broker's failure to advise insurers of all
information material to a risk during the application process?
Select one:
a. The agent/broker will have their license suspended.
b. The agent/broker may be found liable for losses that may occur.
c. The agent/broker will be required to return any commission earned
from the sale.
d. The agent/broker may have to pay a fine to the insurer. Correct
Answer-b. The agent/broker may be found liable for losses that may
occur. Agents/brokers acting on behalf of insurance companies and their
clients have a duty to advise insurers of all the information material to
the risk.
Which national association is a main resource for and has a key initiative
to create industry-standard application forms?
Select one:
a. Financial Services Regulatory Association (FSRA)
b. Insurance Bureau of Canada (IBC)
c. Financial Services Regulatory Authority (FSRA)
,d. Centre for Study of Insurance Operations/Centre D'Étude de la
Pratique D'Assurance (CSIO/CEPA) Correct Answer-d. Centre for
Study of Insurance Operations/Centre D'Étude de la Pratique
D'Assurance (CSIO/CEPA). A number of different application forms are
in use. The CSIO is a national association of property and casualty
insurers and independent insurance brokers working together to achieve
electronic business solutions for the insurance industry. One of its
projects is the creation of industry-standard application forms.
Who is the person or firm that requests insurance?
Select one:
a. The insurer
b. The applicant
c. The underwriter
d. The loss adjuster Correct Answer-b. The applicant. An applicant is a
person or firm requesting insurance. The applicant completes and signs
written application forms that contain personal statements.
What does an underwriter watch for when there are more than one loss
payees named on an insurance application?
Select one:
a. Financial hardship, poor property maintenance, and temptation for
fraud
b. Increased severity of loss, slow service, and a temptation for fraud
, c. Financial success, slow service, and a temptation for fraud
d. Increased frequency of loss, poor property maintenance, and slow
service Correct Answer-a. Financial hardship, poor property
maintenance, and temptation for fraud. Most insurers have criteria that
indicate an underwriter must investigate an application with multiple
loss payees, as it could mean financial challenges, improper property
maintenance, and a temptation to stage a loss.
Why do insurers ask for prior insurance on an application?
Select one:
a. Confirm claim history and check for any lienholders
b. Confirm loss history and identify the loss payees
c. Identify previous declinations or cancellations and the amount of
coverage
d. Confirm loss history and identify any gaps in coverage Correct
Answer-d. Confirm loss history and identify any gaps in coverage.
Applicants are asked for prior insurers names, policy numbers and
policy expiry dates; and this information is used to check loss history,
identify any gaps, and potential moral hazard.
In ratemaking, what does the validity of statistics on past losses depend
on?
Select one:
a. A larger sample group and longer time observed
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller cracker. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
74534 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
