A commercial building may contain furniture, machinery and equipment, raw materials,
and finish products. Which one of the following is the term generally used in property
insurance policies to refer to all these types of property? - Answer-Business personal
property
A commercial package policy...
AINS 21 practice Exam Solved 100%
Correct!!
A commercial building may contain furniture, machinery and equipment, raw materials,
and finish products. Which one of the following is the term generally used in property
insurance policies to refer to all these types of property? - Answer-Business personal
property
A commercial package policy is an example of - Answer-modular policy
A commercial property policy providing coverage on the named insured's personal
property can also provided limited coverage for which one of the following - Answer-
Personal property of others in the care, custody, or control of the insured
ABC company manufactures hot beverage containers and distributes them to various
retail outlets. A customer who purchases one of these containers at a retail store is
burned by ho coffee after the lid on a container falls off. Which one of the following
principles of law would be the basis for a suit brought by the injured party - Answer-
implied warranty
Abc insurance company's combined ratio is 102. Its operating ratio is 98. These ratios
indicate that - Answer-abc's return on investments is offsetting the unprofitable
underwriting performance
Actual cash value (ACV) is - Answer-replacement cost minus depreciation
adhering to the characteristics of an ideally insurable loss exposure in selling insurance
help assure that - Answer-The insurer is able to change a premium that the insured can
afford to pay
A company interested in improving cash flow should consider meeting its insurance
needs through which one of the following types of insurance organizations - Answer-
Captive insurers
A completed operations liability loss exposure differs from a products liability loss
exposure in that the completed operations liability loss exposure - Answer-Arises out of
the entity's completed work, including defective parts or materials furnished with the
work
A completed operations liability loss exposure differs from products liability loss
exposure in that the completed operations liability loss exposure - Answer-arises out of
,the entity's completed work, including defective parts or materials furnished with the
work
A decrease in incurred losses will generally cause a decrease in all of the following
except - Answer-expense ratio
A decrease in incurred losses will generally cause a decrease in all of the following
except - Answer-expense ratio
A flex rating law is - Answer-an insurance rating law under which prior approval is
required only if the new rates exceed a certain percentage above and sometimes below
the rates previously file
A flex rating law is - Answer-an insurance rating law under which prior approval is
required only if the new rates exceed a certain percentage above and sometimes below
the rates previously filed
A homeowners insurance policy typically includes - Answer-both property and liability
coverage
A liability loss has the following damages:
Medical expenses: 10,000
Damages for disfigurement 50,000
damages for pain and suffering 100,000
What is the amount of special damages? - Answer-10,000
a bank recently began selling insurance and advertise a discounted auto loan rate to
any new or used car buyer who is also purchases auto insurance auto insurance
through the bank. this discount is an example of - Answer-rebating
a broad statement of an insurer's promises to the insured ma be found in a policy's -
Answer-insuring agreements
A broad statement of an insurer's promises to the insured may be found in a policy's -
Answer-insuring agreements
a business buys multiple small warehouses to minimize the effects of a single loss. this
is an example of - Answer-seperation
a licensed electrician completes the job of rewiring a house and returns to his shop.
With regard to this job, The eletricial has a - Answer-Completed operations loss
exposure
, A loss exposure is - Answer-Any condition that presents the possibility of a loss
A mutual insurance company is owned by - Answer-policyholders
a producer will generally review a company's loss run report while performing which one
of the following functions - Answer-risk management review
A promise made by a seller that a product is fit for specific purpose is called a - Answer-
Warranty
A reciprocal insurance exchange - Answer-is an unincorporated association providing
insurance coverage to its subscribers
a reinsurance company - Answer-assumes loss exposures from a primary insurer
A reservation of rights letter - Answer-Advises the insured that the insurer is
investigating the claim but retains the right to deny coverage later
A small business owner concerned about something happening and not being able to
work or earn a living for extended period of time due to an accident should purchase -
Answer-Disability insurance
A stock insurer is distinguished from a mutual insurer by the fact that - Answer-owners
are not necessarily insured
A stock insurer is distinguished from a mutual insurer by the fact that - Answer-owners
are not necessarily insureds
A stock insurer is distinguished from a mutual insurer by the fact that - Answer-owners
are not necessarily insureds
Adhering to the characteristics of an ideally insurable loss exposure in selling insurance
help assure that - Answer-The insurer is able to charge a premium that the insured can
afford to pay
after investing significant resources to develop a web based system, a personal lines
insurer has decided to expand is territory by assuming the role of a direct writer and
using the internet as a distribution channel. What is the insurers greatest concern with
the existing book which used independent agents as the distribution system - Answer-
The agents own the expirations for the existing book
after investing significant resources to develop a web based system, a personal lines
insurer has decided to expand its territory by assuming the role of a direct writer and
using the internet as a distribution channel. what is the insurers greatest concern with
the existing book which used independent agents as the distribution system? - Answer-
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