PDF for Question Home / PDF for Question Welcome to your PDF for Question 1. Which of the following coverages does an open peril policy provide? Please select your answer Ocean and sea perils Perils that would affect business continuance. *Perils other than those specifically named as being excluded. Perils stated in the policy. 2. Of the following, which is the true characteristic about insurance? Please select your answer It is considered a type of gambling. It is considered a way of retaining risk. It has as its basis the law of level averages. *It is considered a method of transferring risk. 3. How is an admitted insurer defined according to the California DOI? Please select your answer *It transacts insurance according to the laws of the state of California. It transacts insurance business in all states It Is organized and chartered according to and under the laws of the state of California It is incorporated under the laws of any other jurisdiction other than the state of California 4. The method that the California DOI uses to approve or disapprove rate filings for various types of insurance such as homeowners and automobile is known as? Please select your answer *File and use method Open competition method Mandated rates method Use and file method 5. "Risk" is one of the most important terms in the insurance industry. How is it defined? Please select your answer The certainty-of financial loss. *The uncertainty of financial loss The basis of a financial loss The predictability of a financial loss 6. The concept of "pure risk" involves the possibility or chance of which of the following? Please select your answer None of the above A profitable distribution of risks Either a loss or gain *A loss only 7. With regards to insurance applicability, the word “risk” can be best defined as which of the following? Please select your answer *The uncertainty associated with a loss occurring The uncertainty of a financial loss The cause of the loss The increase in the probability of a loss occurring 8. In the State of California, how is a domestic insurer defined according to the California DOI code? Please select your answer Marketing and selling insurance under the laws of the state of California Specializing in insurance products that are unique to the needs of California (e.g.,earthquake insurance). *Organized, chartered, or incorporated under the laws of the State of California Any insurance company that has a regional, district, or agency office in California. 9. Which of the following is the best definition of an insurer's loss reserve? Please select your answer The dollar amount an insurance company must pay to close-out a claim *The approximate dollar amount of an insurer's liability for at least one (or more) open claims The dollar amount of claims paid divided by earned premiums, excluding loss adjustment expenses The dollar amount received by an insurer for coverage provided 10. Which of the following types of businesses could utilize a business owners policy? Please select your answer Banks Service station and auto repair shops *Office buildings 2-stories high and containing about 5,000 square feet Restaurants 11. Liability exposures that result from the location of a business in addition to the activities of that business, is known as which of the following? Please select your answer The completed operations exposure The products and premises exposures The general liability exposure *The premises and operations exposure 12. Of the following choices, which one would define the "retroactive date" which is contained in the structure of a claims-made professional liability policy contract? Please select your answer The policy expiration date *A loss or event can occur and still be eligible for recovery of payment under the terms of the policy, if it occurs after this date , No further claims can be made or submitted under the policy after this date The same as the inception date of the policy. 13. Where is ocean marine liability insurance found? Please select your answer *Protection and indemnity coverage Ocean marine cargo coverage insurance Ocean marine freight liability coverage Comprehensive personal liability policies 14. Negligence under an ocean marine policy is covered by: Please select your answer Comprehensive personal liability policies Ocean marine freight liability coverage Ocean marine cargo coverage insurance *Protection and indemnity coverage 15. The statement that is true regarding medical expense coverage in a Workers' Compensation policy is. Please select your answer None of these are true statements It has a dollar limit, but no time limit *It contains an unlimited amount of coverage for both time and dollar amounts It has a time limit, but no dollar limit 1 out of 15 Name Email Business Phone Time's upTime is Up!
