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Wisconsin |! Property |! & |! Casualty |!
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Part |! of |! the |! insured's |! consideration |! in |! a |! property |! insurance |! contract |! is |! the... a) |! payment |! of |! a |! loss |! by |! the |! company b) |! payment |! of |! the |! premium |! by |! the |! insured c) |! provision |! of |! a |! grace |! period d) |! offer |! a |! preferred |! contract |! to |! the |! customer |! - |! Correct |! answer |! ✔b) |! payment |! of |! the |! premium |! by |! the |! insured The |! portion |! or |! the |! policy |! that |! specifies |! exactly |! what |! items |! will |! be |! covered |! and |! the |! dollar |! amounts |! of |! coverage |! is |! called |! the... a) |! insuring |! clause b) |! exclusions c) |! declarations d) |! conditions |! - |! Correct |! answer |! ✔c) |! declarations All |! of |! the |! following |! are |! essentials |! of |! a |! contract |! EXCEPT |! a... a) |! acceptance b) |! consideration c) |! offer
d) |! written |! instrument |! - |! Correct |! answer |! ✔d) |! written |! instrument Which |! of |! the |! following |! would |! be |! considered |! incompetent |! under |! insurance |! law? a) |! a |! fourteen-year-old |! honor |! student b) |! a |! man |! under |! the |! influence |! of |! alcohol c) |! a |! customer |! who |! buys |! a |! policy |! under |! duress d) |! all |! of |! the |! above |! - |! Correct |! answer |! ✔d) |! all |! of |! the |! above Which |! of |! the |! following |! grants |! express |! authority |! to |! an |! agent? a) |! fiduciary |! contract b) |! state |! provisions c) |! agent |! contract |! with |! the |! insurance |! company d) |! agents |! insurance |! license |! - |! Correct |! answer |! ✔c) |! agents |! contract |! with |! the |! insurance |! company What |! is |! the |! term |! for |! the |! entity |! that |! an |! agent |! represents |! regarding |! contractual |! agreements |! with |! third |! parties? a) |! designee b) |! insured c) |! principal d) |! client |! - |! Correct |! answer |! ✔c) |! principal In |! insurance, |! an |! offer |! is |! usually |! made |! when...
c) |! foreign d) |! alien |! - |! Correct |! answer |! ✔c) |! foreign For |! the |! purpose |! of |! insurance, |! risk |! is |! defined |! as... a) |! the |! guaranty |! of |! loss b) |! the |! cause |! of |! loss c) |! an |! event |! that |! increases |! the |! chance |! of |! loss d) |! the |! uncertainty |! or |! chance |! of |! loss |! - |! Correct |! answer |! ✔d) |! the |! uncertainty |! or |! chance |! of |! loss Which |! of |! the |! following |! would |! be |! considered |! a |! risk |! sharing |! arrangement? a) |! stock b) |! mutual |! c) |! surplus |! lines d) |! reciprocal |! - |! Correct |! answer |! ✔d) |! reciprocal At |! the |! time |! of |! loss, |! the |! insured |! in |! a |! property |! and |! casualty |! policy, |! the |! insurer's |! claim |! settlement |! options |! include |! all |! of |! the |! following |! EXCEPT... a) |! paying |! the |! value |! of |! the |! lost |! or |! damaged |! property b) |! replacing |! the |! property |! with |! other |! property |! of |! a |! lesser |! kind |! of |! quality c) |! paying |! the |! cost |! of |! repairing |! or |! replacing |! the |! lost |! or |! damaged |! property d) |! taking |! all |! or |! part |! of |! the |! property |! at |! an |! agreed |! or |! appraised |! value |! - |! Correct |! answer |! ✔b) |! replacing |! the |! property |! with |! other |! property |! of |! a |! lesser |! kind |! or |! quality
The |! part |! of |! the |! policy |! which |! sets |! forth |! the |! rules |! of |! conduct, |! duties, |! and |! obligations |! of |! the |! parties |! is |! called |! the... a) |! exclusions b) |! declarations c) |! insuring |! clause d) |! conditions |! - |! Correct |! answer |! ✔d) |! conditions Claims |! related |! expenses, |! reasonable |! expenses |! incurred |! by |! an |! insured |! to |! protect |! damaged |! property |! from |! further |! loss, |! or |! defense |! expenses |! are |! covered |! by |! which |! part |! of |! a |! policy? a) |! exclusions b) |! declarations c) |! insuring |! agreement d) |! additional |! coverages |! - |! Correct |! answer |! ✔d) |! additional |! coverages Three |! years |! ago, |! an |! insured |! moved |! to |! an |! unfurnished |! apartment. |! She |! bought |! new |! furniture |! that |! cost |! $9,000. |! Last |! week |! there |! was |! a |! fire |! in |! the |! apartment |! that |! destroyed |! the |! furniture. |! Replacement |! cost |! is |! $10,500. |! The |! adjuster |! told |! the |! insured |! that |! her |! furniture |! depreciated |! $2,500. |! If |! insurance |! is |! written |! on |! an |! Actual |! Cash |! Value |! basis, |! how |! much |! will |! it |! pay |! for |! the |! loss? a) |! $10, b) |! $6, c) |! $8, d) |! $9,000 |! - |! Correct |! answer |! ✔c) |! $8,
When |! an |! insurance |! company |! sues |! a |! negligent |! third |! part |! to |! recover |! a |! loss |! payment, |! paid |! to |! an |! insured, |! the |! company |! is |! exercising |! its |! right |! of... a) |! assignment b) |! arbitration c) |! indemnification d) |! subrogation |! - |! Correct |! answer |! ✔d) |! subrogation Which |! of |! the |! following |! statements |! about |! Open |! Perils |! coverage |! is |! TRUE? a) |! open |! peril |! policies |! cover |! losses |! from |! any |! peril |! that |! is |! not |! specifically |! excluded b) |! open |! peril |! policies |! cost |! more |! because |! of |! the |! increase |! in |! the |! dollar |! amount |! of |! coverage c) |! open |! perils |! name |! their |! perils d) |! under |! an |! open |! peril |! policy, |! the |! insurance |! company |! has |! the |! legal |! right |! to |! modify |! its |! claim |! settlement |! practices |! to |! control |! losses |! - |! Correct |! answer |! ✔a) |! open |! peril |! policies |! cover |! losses |! from |! any |! peril |! that |! is |! not |! specifically |! excluded Which |! of |! the |! following |! is |! the |! coinsurance |! formula? a) |! insurance |! carried |! / |! insurance |! required |! x |! loss |! = |! amount |! insurance |! company |! pays b) |! coinsurance |! percentage |! x |! replacement |! cost |! - |! depreciation |! = |! amount |! paid c) |! manual |! rate |! x |! experience |! credit |! - |! schedule |! credit |! = |! coinsurance d) |! value |! - |! loss |! x |! coinsurance |! percentage |! = |! amount |! paid |! - |! Correct |! answer |! ✔a) |! insurance |! carried |! / |! insurance |! required |! x |! loss |! = |! amount |! insurance |! company |! pays
Which |! of |! the |! following |! is |! part |! of |! the |! formula |! for |! calculating |! the |! Actual |! Cash |! Value |! of |! a |! building? a) |! fair |! market |! value b) |! stated |! value c) |! purchase |! cost d) |! replacement |! cost |! - |! Correct |! answer |! ✔d) |! replacement |! cost Assume |! you |! own |! a |! commercial |! building |! valued |! at |! $100,000. |! If |! you |! were |! to |! insure |! the |! building |! under |! a |! property |! policy |! containing |! a |! 75% |! coinsurance |! clause |! and |! you |! were |! to |! insure |! the |! building |! for |! $50,000, |! how |! much |! would |! you |! anticipate |! receiving |! as |! a |! settlement |! for |! a |! $30,000 |! loss? a) |! $30, b) |! $6, c) |! $20, d) |! none |! of |! the |! above |! - |! Correct |! answer |! ✔d) |! none |! of |! the |! above The |! ABC |! Insurance |! company |! has |! a |! $60,000 |! fire |! policy |! on |! a |! factory. |! The |! XYZ |! Insurance |! company |! has |! a |! $40,000 |! fire |! policy |! on |! the |! same |! factory. |! Assuming |! that |! the |! factory |! is |! worth |! $100,000. |! How |! much |! would |! the |! ABC |! Insurance |! company |! pay |! on |! a |! $10,000 |! covered |! loss |! at |! the |! factory? a) |! $10, b) |! $6, c) |! $5, d) |! depends |! on |! the |! coinsurance |! clause |! - |! Correct |! answer |! ✔$6,
|! to |! new |! customers |! with |! improved |! benefits, |! but |! the |! policies |! are |! sold |! for |! the |! same |! premium |! rate |! as |! your |! policy. |! Which |! of |! the |! following |! clauses |! in |! your |! policy |! would |! result |! in |! your |! policy |! automatically |! including |! these |! new |! improved |! benefits |! even |! though |! they |! are |! not |! specifically |! stated |! in |! your |! policy? a) |! additional |! coverage b) |! extension |! of |! coverage c) |! liberalization d) |! other |! insurance |! - |! Correct |! answer |! ✔c) |! liberalization The |! definition |! of |! Actual |! Cash |! Value |! includes |! which |! of |! the |! following? a) |! original |! cost b) |! fair |! market |! value c) |! offer d) |! depreciation |! - |! Correct |! answer |! ✔d) |! depreciation Which |! of |! the |! following |! insurance |! principles |! is |! designed |! to |! encourage |! you |! to |! purchase |! adequate |! insurance |! protection |! on |! your |! property? a) |! indemnification b) |! subrogation c) |! coinsurance d) |! insurable |! interest |! - |! Correct |! answer |! ✔c) |! coinsurance Which |! of |! the |! following |! insurance |! principles |! is |! designed |! to |! keep |! you |! from |! profiting |! by |! insuring |! and |! then |! destroying |! other |! people's |! property?
a) |! indemnification b) |! subrogation c) |! coinsurance d) |! insurable |! interest |! - |! Correct |! answer |! ✔d) |! insurable |! interest Which |! of |! the |! following |! dwelling |! forms |! would |! be |! called |! the |! Broad |! form? a) |! DP- b) |! DP- c) |! DP- d) |! DP-4 |! - |! Correct |! answer |! ✔b) |! DP- Which |! of |! the |! following |! dwelling |! forms |! would |! give |! you |! open |! perils |! on |! the |! contents? a) |! DP- b) |! DP- c) |! DP- d) |! it |! is |! not |! available |! - |! Correct |! answer |! ✔d) |! it |! is |! not |! available Which |! of |! the |! following |! forms |! would |! give |! you |! open |! perils |! on |! the |! house? a) |! DP- b) |! DP- c) |! DP- d) |! it |! is |! not |! available |! - |! Correct |! answer |! ✔c) |! DP-
a) |! coverage |! A b) |! coverage |! B c) |! coverage |! C d) |! coverage |! D |! - |! Correct |! answer |! ✔d) |! coverage |! E Automatic |! increase |! in |! insurance |! is |! an |! endorsement |! for |! the |! dwelling |! policy |! that |! increases |! the |! amount |! of |! insurance |! by |! an |! annual |! percentage |! to... a) |! increase |! the |! effects |! of |! inflation b) |! reduce |! the |! chance |! of |! depreciation |! of |! the |! property c) |! increase |! the |! chance |! depreciation |! of |! the |! property d) |! offsets |! the |! increase |! of |! inflation |! - |! Correct |! answer |! ✔d) |! offsets |! the |! increase |! of |! inflation Which |! of |! the |! following |! would |! be |! covered |! by |! the |! broad |! theft |! endorsement |! on |! a |! dwelling |! policy? a) |! a |! camera |! the |! insured |! has |! with |! him |! on |! vacation b) |! a |! pedigree |! show |! dog c) |! fabric |! and |! patterns |! in |! a |! clothing |! designer |! studio d) |! an |! antique |! car |! - |! Correct |! answer |! ✔a) |! a |! camera |! the |! insured |! has |! with |! him |! on |! vacation Hooligans |! break |! into |! Harry's |! pickup |! and |! steal |! the |! CB |! radio |! built |! into |! the |! dash. |! Which |! of |! the |! following |! HO |! forms |! would |! provide |! him |! with |! coverage |! for |! this |! loss? a) |! HO-
b) |! HO- c) |! HO- d) |! none |! of |! the |! above |! - |! Correct |! answer |! ✔d) |! none |! of |! the |! above You |! recently |! had |! a |! brand |! new |! detached |! garage |! built |! next |! to |! your |! home |! for |! $9,000. |! You |! have |! an |! HO-3 |! policy |! with |! $100,000 |! of |! coverage |! on |! the |! dwelling, |! but |! you've |! never |! had |! a |! garage |! before. |! In |! order |! to |! have |! the |! garage |! covered, |! you |! should |! do |! which |! of |! the |! following? a) |! upgrade |! to |! an |! HO- b) |! buy |! a |! separate |! commercial |! property |! for |! the |! garage c) |! keep |! the |! HO-3 |! and |! add |! a |! garage |! endorsement d) |! do |! nothing |! - |! Correct |! answer |! ✔d) |! do |! nothing You |! have |! a |! standard |! HO-3 |! policy |! with |! no |! endorsement |! and |! your |! house |! is |! damaged |! by |! fire. |! Among |! your |! losses |! is |! a |! Rolex |! watch |! valued |! at |! $2,000. |! Disregarding |! the |! deductible, |! how |! much |! will |! the |! company |! pay |! for |! the |! loss |! of |! this |! item? a) |! $1,000--the |! maximum |! limit |! on |! jewelry b) |! $2, c) |! $2,000 |! minus |! depreciation d) |! nothing |! since |! the |! policy |! was |! not |! endorsed |! to |! cover |! the |! watch |! - |! Correct |! answer |! ✔$2,000 |! minus |! depreciation Your |! house |! has |! a |! replacement |! cost |! of |! $100,000. |! In |! order |! to |! have |! replacement |! cost |! coverage |! on |! the |! dwelling, |! your |! homeowner's |! policy |! must |!
Under |! coverage |! C |! of |! a |! homeowner's |! policy, |! the |! amount |! of |! insurance |! provided |! to |! cover |! personal |! property |! of |! the |! insured |! is... a) |! 50% |! of |! the |! amount |! provided |! in |! coverage |! A b) |! 50% |! of |! the |! amount |! provided |! in |! coverage |! B c) |! equal |! to |! the |! amount |! provided |! in |! coverage |! A d) |! equal |! to |! the |! amount |! provided |! in |! coverage |! B |! - |! Correct |! answer |! ✔a) |! 50% |! of |! the |! amount |! provided |! in |! coverage |! A With |! regard |! to |! a |! homeowner's |! policy, |! which |! coverage |! provides |! for |! indirect |! losses? a) |! coverage |! D b) |! coverage |! A c) |! coverage |! B d) |! coverage |! c |! - |! Correct |! answer |! ✔a) |! coverage |! D Some |! merchandise |! was |! stolen. |! The |! business |! owner |! did |! not |! know |! whether |! a |! customer |! took |! it |! or |! an |! employee |! took |! it. |! Indicate |! whether |! the |! loss |! was |! because |! of |! a: a) |! burglary b) |! robbery c) |! theft d) |! mysterious |! disappearance e) |! fidelity |! - |! Correct |! answer |! ✔d) |! mysterious |! disappearance
Lefty, |! who |! is |! right-handed, |! forced |! a |! gun |! into |! the |! ribs |! of |! Miss |! Peacock |! in |! the |! observatory |! and |! took |! all |! the |! money |! in |! her |! purse. |! Indicate |! whether |! the |! loss |! was |! because |! of |! a: a) |! burglary b) |! robbery c) |! theft d) |! mysterious |! disappearance e) |! fidelity |! - |! Correct |! answer |! ✔b) |! robbery Baxter |! hired |! Lefty |! as |! an |! employee |! unbeknownst |! that |! Lefty |! was |! a |! crook. |! Baxter |! finds |! out |! the |! following |! week |! that |! Lefty |! has |! taken |! $10,000 |! in |! cash |! from |! the |! safe. |! Baxter |! had |! Lefty |! listed |! in |! case |! a |! loss |! like |! this |! should |! occur. |! Indicate |! whether |! the |! loss |! was |! because |! of |! a: a) |! burglary b) |! robbery c) |! theft d) |! mysterious |! disappearance e) |! fidelity |! - |! Correct |! answer |! ✔c) |! theft Lefty |! is |! on |! the |! prowl. |! He |! sneaks |! into |! a |! factory |! and |! takes |! the |! sleeping |! guard's |! wallet |! without |! the |! guard |! noticing. |! Indicate |! whether |! the |! loss |! was |! because |! of |! a: a) |! burglary b) |! robbery c) |! theft
a) |! burglary b) |! robbery c) |! theft d) |! mysterious |! disappearance e) |! fidelity |! - |! Correct |! answer |! ✔a) |! burglary Which |! time |! element |! coverage |! is |! designed |! for |! businesses |! that |! cannot |! shut |! down? a) |! business |! interruption b) |! extra |! expense c) |! contingent |! business |! interruption |! - |! Correct |! answer |! ✔b) |! extra |! expense One |! of |! the |! main |! advantages |! for |! having |! Boiler |! and |! Machinery |! is |! the |! policy |! pays |! for... a) |! losses |! of |! objects |! in |! transit b) |! an |! accident |! caused |! directly |! or |! indirectly |! by |! earth |! movement c) |! losses |! due |! to |! ordinance |! or |! law d) |! the |! inspection |! service |! by |! the |! insurance |! company |! - |! Correct |! answer |! ✔d) |! the |! inspection |! service |! by |! the |! insurance |! company Which |! commercial |! floater |! will |! cover |! loss |! for |! personal |! property |! of |! others |! under |! the |! insured's |! care, |! custody, |! and |! control? a) |! contributing |! properties b) |! recipient |! properties c) |! bailee |! coverage
d) |! personal |! floater |! - |! Correct |! answer |! ✔c) |! bailee |! coverage The |! waiting |! period |! for |! Flood |! insurance |! is... a) |! 15 |! days b) |! 20 |! days c) |! 30 |! days d) |! 60 |! days |! - |! Correct |! answer |! ✔c) |! 30 |! days Flood |! insurance |! covers |! all |! of |! the |! following |! EXCEPT... a) |! fences, |! retaining |! walls, |! outdoor |! swimming |! pools b) |! erosion |! caused |! by |! flooding c) |! overflow |! from |! a |! lake |! or |! tidal |! waters d) |! runoff |! of |! surface |! water |! - |! Correct |! answer |! ✔a) |! fences, |! retaining |! walls, |! outdoor |! swimming |! pools All |! the |! below |! are |! additional |! coverages |! in |! a |! homeowners |! policy |! EXCEPT... a) |! reasonable |! repairs b) |! loss |! assessment c) |! debris |! removal d) |! watercraft |! - |! Correct |! answer |! ✔d) |! watercraft Business |! property |! on |! premises |! provides |! coverage |! for |! what |! dollar |! amount |! in |! a |! homeowners |! policy... a) |! $
