Insurance Operations
Study Guide Questions
Course Introduction
Insurance Operations explores the fundamental processes and practices involved in the functioning of insurance companies and agencies. The course covers topics such as underwriting, claims management, policy issuance, reinsurance, risk assessment, product development, regulatory compliance, distribution channels, and customer service. Students will gain an understanding of the operational framework that supports the insurance industry, including the use of technology, data management, and performance measurement. Emphasis is placed on the integration of operational strategies with overall business objectives and the importance of maintaining efficiency, profitability, and customer satisfaction within a highly regulated environment.
Recommended Textbook
Principles of Risk Management and Insurance 13th Edition by George E. Rejda
Available Study Resources on Quizplus
27 Chapters
1397 Verified Questions
1397 Flashcards
Source URL: https://quizplus.com/study-set/239
Page 2
Chapter 1: Risk and Its Treatment
Available Study Resources on Quizplus for this Chatper
59 Verified Questions
59 Flashcards
Source URL: https://quizplus.com/quiz/3703
Sample Questions
Q1) The long-run relative frequency of an event based on the assumption of an infinite number of observations with no change in the underlying conditions is called
A) objective probability.
B) objective risk.
C) subjective probability.
D) subjective risk.
Answer: A
Q2) Which of the following statements about chance of loss and risk is (are) true?
I.If the chance of loss is identical for two groups, the objective risk must be the same.
II.Two individuals may perceive differently the risk inherent in a given activity.
A) I only
B) II only
C) both I and II
D) neither I nor II
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Insurance and Risk
Available Study Resources on Quizplus for this Chatper
47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/3704
Sample Questions
Q1) The premium that insurance companies charge does not cover the cost of expected losses only. The premium must also cover the cost of compensating agents and other costs of doing business. The amount added to the pure premium to cover these costs is called the
A) expense loading.
B) deductible.
C) dividend.
D) loss reserve.
Answer: A
Q2) One branch of government insurance programs has a number of distinguishing characteristics. These programs are compulsory, they are financed by mandatory contributions rather than general tax revenues, and benefits are weighted in favor of low-income groups. These government insurance programs are called
A) welfare programs.
B) social insurance programs.
C) casualty insurance programs.
D) private insurance programs.
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Introduction to Risk Management
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/3705
Sample Questions
Q1) Which of the following conditions is (are) appropriate for using retention?
I.Losses are difficult to predict.
II.The worst possible loss is not serious.
A) I only
B) II only
C) both I and II
D) neither I nor II
Answer: B
Q2) The U.S. government is concerned that terrorists might try to crash a vehicle loaded with explosives into a U.S. embassy in a foreign country. Inside the gate to the embassy, they installed steel and cement posts in the road. These posts can be raised up from the ground to form a barrier against suicide bombers. The posts can be lowered back into the ground to allow safe vehicles to pass. This physical barrier system illustrates which risk management technique?
A) risk avoidance
B) insurance transfer
C) loss prevention
D) noninsurance transfer
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Enterprise Risk Management and Related Topics
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/3706
Sample Questions
Q1) The process of determining which set of investments in plant and equipment to undertake is called
A) regression analysis.
B) loss forecasting.
C) time value of money analysis
D) capital budgeting.
Q2) Five Below Zero is a new ski resort in Colorado. Five Below Zero is concerned that an abnormally warm winter will prevent the accumulation of snow needed to have a profitable ski season. Five Below Zero purchased a contract that will pay a lump sum if the daily high temperature exceeds 30 degrees for more than 12 days between January 1st and March 31st. The contract Five Below Zero purchased is called a(n)
A) catastrophe bond.
B) weather option.
C) interest rate swap.
D) convertible bond.
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: Types of Insurers and Marketing Systems
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/3707
Sample Questions
Q1) Which of the following statements is (are) true about savings bank life insurance (SBLI)?
I.Each depositor at the savings bank receives life insurance equal to his or her savings account balance.
II.The goal of SBLI is to provide low-cost life insurance to consumers.
A) I only
B) II only
C) both I and II
D) neither I nor II
Q2) Which of the following statements about the sale of property and liability insurance through the direct response system is (are) true?
I.Selling expenses are higher because market segmentation tends to be less precise than with other marketing methods.
II.It is the most appropriate system for selling complex products.
A) I only
B) II only
C) both I and II
D) neither I nor II
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Insurance Company Operations
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/3708
Sample Questions
Q1) Morgan was hired by an insurance company after she graduated from college. Upon completion of a training program, Morgan was assigned to a territory where she adjusts claims of the insurer's policyowners. Morgan is a(n)
A) public adjustor.
B) staff claims representative.
C) agent.
D) independent adjustor.
Q2) Most insurance companies require their marketing representatives to submit an evaluation of the prospective insured. This important source of underwriting information is called the
A) application.
B) agent's report.
C) inspection report.
D) physical inspection.
Q3) The underwriting process begins with the A) agent.
B) desk underwriter.
C) inspection report.
D) actuary.
To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 7: Financial Operations of Insurers
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/3709
Sample Questions
Q1) The assets of a property and liability insurance company are primarily A) investments such as stocks and bonds.
B) loss reserves.
C) plant and equipment.
D) premiums paid by policyholders.
Q2) LMN Mutual Insurance Company has total liabilities of $300 million. The company has total assets of $380 million. What is LMN's policyholders' surplus?
A) $680 million
B) $340 million
C) $80 million
D) -$80 million
Q3) The portion of an insurance premium allocated to expenses, profit, and a margin for contingencies is called the A) loading.
B) pure premium.
C) gross premium.
D) experience rate.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Government Regulation of Insurance
Available Study Resources on Quizplus for this Chatper
51 Verified Questions
51 Flashcards
Source URL: https://quizplus.com/quiz/3710
Sample Questions
Q1) Which of the following statements about the regulation of insurance company investments is (are) true?
I.The purpose of regulating insurance company investments is to prevent insurers from making unsound investments which could threaten their solvency.
II.Life insurers can invest an unlimited amount of their assets in common stocks.
A) I only
B) II only
C) both I and II
D) neither I nor II
Q2) The basis for current state regulation of insurance is
A) the McCarran-Ferguson Act.
B) Paul v. Virginia.
C) the South-Eastern Underwriters Association case.
D) the National Association of Insurance Commissioners.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Fundamental Legal Principles
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/3711
Sample Questions
Q1) Some states have a law that requires payment of the face amount of insurance to the insured if a total loss to real property occurs from a peril specified in the law. These laws are called
A) agreed amount laws.
B) replacement cost laws.
C) homestead laws.
D) valued policy laws.
Q2) Why does the insured get the benefit of the doubt if an insurance policy contains any ambiguities or uncertainties?
A) because insurance contracts are aleatory
B) because insurance contracts are unilateral
C) because insurance contracts are conditional
D) because insurance contracts are contracts of adhesion
Q3) The authority of an agent to perform all incidental acts necessary to fulfill the purposes of the agency agreement is called
A) implied authority.
B) declared authority.
C) apparent authority.
D) express authority.
To view all questions and flashcards with answers, click on the resource link above.
Page 11
Chapter 10: Analysis of Insurance Contracts
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/3712
Sample Questions
Q1) Shauna hurt her back and was unable to work. She filed a claim under her disability income insurance policy. Under terms of the policy, a period of time must pass between when the injury occurred and when the insurer begins to replace lost earnings. This time period is called a(n)
A) grace period.
B) enrollment period.
C) probationary period.
D) elimination (waiting) period.
Q2) The deductible used for automobile collision losses is an example of a(n)
A) calendar year deductible.
B) elimination period.
C) straight deductible.
D) aggregate deductible.
Q3) All of the following statements about endorsements and riders are true EXCEPT
A) They are usually written.
B) They can be used to add or delete policy provisions.
C) They normally take precedence over other conflicting policy provisions.
D) They are primarily used to circumvent legislation requiring specific policy provisions.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Life Insurance
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/3713
Sample Questions
Q1) Sarah is using the needs approach to determine how much life insurance to buy. Her cash needs are $30,000; her income needs are $140,000; and special needs are $100,000. Sarah has the following assets: $20,000 in bank accounts, $30,000 in retirement plans, and $40,000 in investment accounts. Sarah owns no individual life insurance. She is covered by a $50,000 group life insurance policy through her employer. Based on this information, how much additional life insurance should Sarah purchase?
A) $80,000
B) $130,000
C) $150,000
D) $160,000
Q2) All of the following statements about universal life insurance are true EXCEPT
A) Interest is credited to the policy's cash value each month.
B) Any withdrawal of a policy's cash value reduces the amount of the death benefit.
C) Interest credited to a policy's cash value is taxable for the policyowner in the year credited.
D) The policyowner can add to a policy's cash value at any time subject to policy guidelines.
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: Life Insurance Contractual Provisions
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/3714
Sample Questions
Q1) Which of the following statements about nonforfeiture options found in life insurance policies is true?
A) Under the reduced paid-up option, the paid-up policy is term insurance.
B) Under the extended term option, the amount of term insurance is less than the face value of the surrendered cash value policy.
C) Under the reduced paid-up option, no additional premiums must be paid.
D) Unless the policyowner has selected another nonforfeiture option, the cash value option goes into effect automatically.
Q2) Which of the following statements about the grace period in a whole life insurance contract is (are) true?
I.The purpose of the grace period is to prevent the policy from lapsing by giving the policyowner additional time to pay an overdue premium.
II.If the insured dies during the grace period, the death benefit is reduced by 50 percent.
A) I only
B) II only
C) both I and II
D) neither I nor II
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 13: Buying Life Insurance
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/3715
Sample Questions
Q1) Under the traditional net cost method, the net cost of life insurance for a given period (e.g., 20 years) is determined by which of the following formulas?
A) the total premiums for the period less the policy reserve at the end of the period
B) the total premiums for the period less the sum of the total dividends received during the period and the cash value at the end of the period
C) the sum of the total premiums and dividends for the period less the cash value at the end of the period
D) the sum of the total dividends received during the period and the cash value at the beginning of the period less the total premiums paid for the period
Q2) Each of the following helps to reduce federal estate taxes EXCEPT
A) the marital deduction.
B) the applicable unified tax credit amount.
C) life insurance policies in which the deceased had an incidents of ownership at the time of death.
D) expenses such as the cost of the funeral, estate settlement costs, and probate costs.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Annuities and Individual Retirement Accounts
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/3716
Sample Questions
Q1) Stan paid an insurance company $50,000 for a fixed annuity when he was 50 years old. At age 62, Stan plans to begin to receive payments from the insurer. There are no guarantees on the number of payments he will receive. Based on the description provided, this annuity can be described as a(n)
A) deferred annuity.
B) life annuity with guaranteed payments.
C) immediate annuity.
D) variable annuity.
Q2) Juanita paid a life insurer $45,000 in exchange for an immediate life annuity. Juanita will receive $500 per month from the insurer, and her life expectancy is 15 years (180 months). What is the exclusion ratio in this case?
A) 33.33 percent
B) 40.00 percent
C) 50.00 percent
D) 66.67 percent
To view all questions and flashcards with answers, click on the resource link above.
16
Chapter 15: Health-Care Reform; Individual Health Insurance Coverages
Available Study Resources on Quizplus for this Chatper
47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/3717
Sample Questions
Q1) Because of the Affordable Care Act, all new medical expense plans that offer individual and group coverage must accept all individuals and employers in the state who apply for coverage. These insurers are required to continue to renew the coverage at the option of the individual or plan sponsor. Thus, under the Affordable Care Act, the renewal provision is
A) conditionally renewable.
B) guaranteed issue.
C) nonrenewable.
D) renewable at the insurer's option.
Q2) Which of the following statements concerning individual medical expense insurance is (are) correct?
I.Once the deductible is satisfied, no additional deductible is payable during the calendar year.
II.Family deductibles are substantially higher than individual deductibles.
A) I only
B) II only
C) both I and II
D) neither I nor II
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Employee Benefits: Group Life and Health Insurance
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/3718
Sample Questions
Q1) Which of the following statements regarding group long-term disability income insurance plans is (are) true?
I.These plans are usually limited to occupational disabilities.
II.These plans typically use a more restrictive definition of disability after an initial period of disability, such as two years.
A) I only
B) II only
C) both I and II
D) neither I nor II
Q2) Doris started a business 2 years ago. The business has been successful, and Doris is thinking about offering some employee benefits for her workers. She plans to offer a group term life insurance benefit. All of the following are usual eligibility requirements for participation in a group life insurance plan EXCEPT
A) full-time employment.
B) be actively at work when insurance becomes effective.
C) apply for insurance during the eligibility period.
D) satisfy a 2-year probationary period.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Employee Benefits: Retirement Plans
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/3719
Sample Questions
Q1) Which of the following statements about the tax implications of qualified pension plans is true?
A) Investment income on plan assets is taxable in the year the investment income is earned.
B) Employer contributions are deductible up to certain limits as an ordinary business expense.
C) Employer contributions are considered taxable income to employees but are taxed at capital gains rates.
D) Distributions from qualified pension plans are received tax-free by the retiree.
Q2) Which of the following statements about SIMPLE retirement plans is true?
A) They are limited to employers with 100 or fewer eligible employees and who do not maintain another qualified plan.
B) Employees are not permitted to make SIMPLE plan contributions.
C) Employers are subject to more stringent nondiscrimination rules than those that apply to most qualified plans.
D) Employer contributions are fully taxable in the year of the contribution, but qualified distributions are received tax-free.
To view all questions and flashcards with answers, click on the resource link above.
19
Chapter 18: Social Insurance
Available Study Resources on Quizplus for this Chatper
59 Verified Questions
59 Flashcards
Source URL: https://quizplus.com/quiz/3720
Sample Questions
Q1) One insured status under Social Security requires you to have earned at least six credits during the last 13 calendar quarters ending with the quarter of death, disability, or entitlement to retirement benefits. This insured status is
A) disability insured.
B) temporarily insured.
C) fully insured.
D) currently insured.
Q2) Which of the following statements about the impact of the implementation of the Affordable Care Act (ACA) on workers compensation is true?
A) Implementation of the ACA will increase fraudulent workers compensation claims.
B) Implementation of the ACA will create higher healthcare provider prices.
C) Implementation of the ACA will reduce the waiting time to see a physician, to have tests performed, and to begin physical therapy.
D) Implementation of the ACA will discourage annual physical check-ups and implementation of workplace wellness programs.
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: The Liability Risk
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/3721
Sample Questions
Q1) All of the following are elements of negligence EXCEPT
A) the ability to pay damages.
B) the failure to perform a legal duty to use reasonable care.
C) damage or injury to a claimant.
D) proximate cause between the negligent act and the injury or harm that occurs.
Q2) Which of the following statements about the elements of negligence is (are) true?
I.The negligence of the tortfeasor may arise from a failure to act.
II.The damage that results must be in the form of property damage.
A) I only
B) II only
C) both I and II
D) neither I nor II
Q3) A legal wrong for which the law allows a remedy in the form of money damages is a A) crime.
B) breach.
C) misdemeanor.
D) tort.
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Auto Insurance
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/3722
Sample Questions
Q1) Joyce was injured by an uninsured drunk driver while she was riding in a friend's car. Joyce and her friend each have a PAP with an uninsured motorists limit of $50,000. How much will be paid by each policy if it is determined that Joyce has $70,000 of bodily injuries?
A) Each policy will pay $35,000.
B) Joyce's policy will pay $50,000, and the friend's policy will pay nothing.
C) Joyce's policy will pay $50,000, and the friend's policy will pay $20,000.
D) The friend's policy will pay $50,000, and Joyce's policy will pay $20,000.
Q2) Duties of an insured after a collision loss covered under the PAP include which of the following?
I.Take reasonable steps to protect the vehicle from further damage.
II.Admit fault if the insured believes he or she caused the collision.
A) I only
B) II only
C) both I and II
D) neither I nor II
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Auto Insurance (continued)
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/3723
Sample Questions
Q1) Arguments often used against no-fault automobile insurance laws include all of the following EXCEPT
A) It is often difficult to determine which driver was negligent when a multiple-vehicle accident occurs.
B) Many injured persons will not be compensated for their full losses because payments for pain and suffering will be eliminated.
C) The defects of the negligence system are exaggerated, and the system needs only to be reformed.
D) Claims of efficiency and premium saving are exaggerated, and automobile insurance premiums might actually increase.
Q2) Amber believes that her auto insurance premium is too high. Which of the following would most likely lower Amber's premium?
A) Amber could increase her physical damage deductible.
B) Amber could move from the rural area where she lives to an urban or suburban area.
C) Amber could increase the amount of liability insurance that she carries.
D) Amber could add "other-than-collision loss" coverage to her policy.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 22: Homeowners Insurance, Section I
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/3724
Sample Questions
Q1) Linda wants to purchase a homeowners policy. She has some valuable personal property to which internal policy limits apply. Her agent said that she could obtain coverage under her homeowners policy by attaching a list of this valuable property with specific amounts of insurance. Such a listing is called a(n)
A) binder.
B) schedule.
C) application.
D) warranty.
Q2) If the insurer broadens coverage during the policy period without an increase in premium, and the broadened coverage is not part of a general program revision, the insured is entitled to the broadened coverage under which policy provision?
A) waiver of policy provisions
B) subrogation
C) liberalization clause
D) pair or set clause
To view all questions and flashcards with answers, click on the resource link above.
24
Chapter 23: Homeowners Insurance, Section II
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/3725
Sample Questions
Q1) Which of the following statements about Coverage E: Personal Liability under the homeowners 3 policy is true?
A) Losses attributable to personal injury are covered.
B) The liability limit stated in the policy is an aggregate limit for the policy period.
C) The insured must be legally liable for insurer to pay damages.
D) Bodily injury liability only applies to injuries that occur at the insured dwelling.
Q2) Tom and Tammy Evans were ready to purchase a home. The home was to serve as collateral for their mortgage loan. Two insurers declined to insure the home, citing "an adverse CLUE report." Why would an insurer reject a homeowners insurance application because of an adverse CLUE report?
A) because the previous owner had defaulted on the mortgage loan
B) because the home is located in an area where the zoning law had been changed
C) because there had been property insurance claims filed on the home's previous owner
D) because the home is located in an area that does not have a certified fire department
To view all questions and flashcards with answers, click on the resource link above.
25
Chapter 24: Other Property and Liability Insurance Coverages
Available Study Resources on Quizplus for this Chatper
47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/3726
Sample Questions
Q1) Mark purchased a boat owners package policy. While using his boat, he negligently hit a pier. A person standing on the pier fell and was severely injured. Which of the boat owners package policy coverages will respond to a lawsuit filed as a result of this negligent act?
A) physical damage coverage
B) liability coverage
C) medical expense coverage
D) uninsured boaters coverage
Q2) Which statement is true about medical expense coverage under the boatowners package policy?
A) It pays the medical expenses of a covered person who is injured while in the boat. B) It pays the medical expenses of another boat operator who is injured as a result of negligent operation of the boat by the insured.
C) It pays the medical expenses of a swimmer or a water skier being towed by another boat if he or she is hit by the insured's boat.
D) It pays the medical expenses of someone on a dock or pier if the insured's boat hits the dock or pier and injures him or her.
To view all questions and flashcards with answers, click on the resource link above.
Page 26
Chapter 25: Commercial Property Insurance
Available Study Resources on Quizplus for this Chatper
47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/3727
Sample Questions
Q1) Which of the following statements about the businessowners policy is (are) true?
I.It is designed to meet the insurance needs of large manufacturing firms.
II.It is a package policy designed to meet the basic property and liability needs of an insured in a single contract.
A) I only
B) II only
C) both I and II
D) neither I nor II
Q2) Which of the following statements describes a Difference in Conditions (DIC) Policy?
A) It is a type of commercial umbrella liability policy.
B) It is an open perils policy that covers perils not insured by basic property insurance contracts.
C) It is designed to cover indirect losses for which the insured has direct damage coverage.
D) It is used to settle disputes when an insured has more than one insurance policy with differing policy provisions.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 26: Commercial Liability Insurance
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/3728
Sample Questions
Q1) Jenkins Company purchased a commercial umbrella policy with a $10 million limit and a $100,000 self-insured retention. The insurer required Jenkins Company to carry a $1 million per-occurrence limit on its general liability policy and a $1 million per-occurrence limit on its business auto policy. Jenkins purchased these required limits. A Jenkins driver was negligent while operating a company vehicle and killed another motorist. The court ruled that Jenkins must pay $5 million. How much of this amount will be paid by the umbrella policy?
A) $1.0 million
B) $3.9 million
C) $4.0 million
D) $5.0 million
Q2) Liability arising out of work performed by independent contractors is referred to as A) contractual liability.
B) contingent liability.
C) care, custody, and control liability.
D) customer's liability.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 27: Crime Insurance and Surety Bonds
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/3729
Sample Questions
Q1) All of the following are ISO commercial crime coverage exclusions EXCEPT
A) dishonest acts committed by a named insured or partner of the named insured.
B) indirect loss resulting from covered losses.
C) theft committed by an employee of the named insured.
D) losses from unauthorized trading in stocks and bonds.
Q2) An armed robber pulled a gun on a teller at the Fourth National Bank. He made off with over $10,000 in cash. Which insuring agreement in a financial institution bond is designed to cover such losses?
A) Insuring Agreement A-Fidelity
B) Insuring Agreement B-On Premises
C) Insuring Agreement C-In Transit
D) Insuring Agreement D-Forgery or Alteration
Q3) A cashier at Food World Supermarket accepted a phony $100 bill. Which ISO commercial crime coverage is designed to cover such a loss?
A) Forgery or Alteration
B) Money Orders and Counterfeit Currency
C) Inside the Premises-Theft of Money and Securities
D) Inside the Premises-Robbery or Safe Burglary of Other Property
To view all questions and flashcards with answers, click on the resource link above. Page 29