Exam (elaborations)
Principles & Practices of Insurance Practice Quiz #1.
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- Captains Career Course Module 5 Post Test 2
Principles & Practices of Insurance Practice Quiz #1.
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Principles & Practices of InsurancePractice Quiz #1
What forms the basis of most insurance contracts?
a) Subrogation
b) Contribution
c) Prevention of risk
d) Indemnity - CORRECT ANSWER-d) Indemnity
Actual cash value is which of the following?
a) The original price paid for an item
b) The value of the item to the insured
c) The current cost of replacing an item with one of the same kind and condition
d) All of the above - CORRECT ANSWER-c) The current cost of replacing an
item with one of the same kind and condition
Who is the first party of an insurance contract?
a) Insured
b) Insurer
c) Claimant
d) None of the above - CORRECT ANSWER-a) Insured
Which of the following is NOT an insurable risk?
a) The loss of capital due to the failure of the insured's business
b) The loss of business profits while a business is closed for reconstruction after
a fire
c) A loss arising out of damage to a stranger's property because of an insured's
careless conduct.
d) A and C above - CORRECT ANSWER-a) The loss of capital due to the failure
of the insured's business
, Gambling is a good example of
a) Insurable risk
b) Pure risk
c) Speculative risk
d) Personal risk - CORRECT ANSWER-c) Speculative risk
Which of the following statements is FALSE?
a) An insurance policy is evidence of a contract
b) An insurance broker is an intermediary who arranges insurance contracts
c) Insurance agents and brokers represent numerous insurance companies
d) All types of adjusters have the same basic function -to investigate claims and
bring about settlement. - CORRECT ANSWER-c) Insurance agents and brokers
represent numerous insurance companies
Risk is
a) An insured peril
b) Speculative in nature
c) The uncertainty regarding a loss
d) The same as a hazard - CORRECT ANSWER-c) The uncertainty regarding a
loss
Insurance is mostly concerned with:
a) Criminal law
b) Civil law
c) Canon law
d) International law - CORRECT ANSWER-b) Civil law
A legal person is one who:
a) Contracts for a legal purpose
b) Acts within the legal boundaries of the law in all things
c) Can sue and be sued
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