Risk Global Chapter 3

Which of the following is least likely covered under property insurance?

Which of the following statement is correct regarding home owner insurance policy? Statement 1: Covers the insured’s personal property. Statement 2: Protects the main dwelling and attached structures. Both land and building are covered.

Deductibles in an insurance policy is a form of:

Which of the following statement is correct under home owner insurance policy? Statement 1: Household members cannot receive medical payments from the policy. Statement 2: Homeowner insurance policy cover medical payments to others.

“—is the value that a willing buyer and willing seller under no compulsion agree to exchange an item at an agreed upon price.

“—is the value the taxing authority places on the property and on which they base property taxes.

“—is what it would cost to rebuild the home as it currently exists.

Actual cash value=

Which of the following factors least likely affect the cost of homeowner coverage?

Which of the following is not an exclusion under home insurance policy?

Which of the following type of vehicle insurance protect insured against legal liability when your car damages another person or another person’s property?

Liability coverage under motor vehicle insurance extends to:

Comprehensive coverage refer to:

Which of the following person is not an insured under the motor vehicle insurance policy?

Which of the following least likely define tort?

Which of the following statement correctly define negligence?

Which of the following statement correctly define absolute liability?

Which of the following statement correctly define vicarious liability?

Comprehensive Personal Liability policy cover:

Which of the following statement is correct? Statement 1: When a claim is made under an occurrence form the policy that was in place when the alleged mistake was made must pay for the loss. Statement 2: Under claims made form the insurance company that issued the policy in place when the claim is made is the insurance company responsible for any required settlement.

Which plans should be preferred for needs for which a client would want death benefit protection regardless of when they die and they don’t want to risk the policy lapsing?

Which plan should be preferred for when protection is needed for a specific period and purpose?

Which type of policy Can be used when a client wants predictability and guarantees regarding cost death benefit and cash accumulations?

Which type of policy is most suitable for Client wants the premium and minimum death benefit predictability of whole life is not risk averse and wants to participate in the equity/bond market?

Which type of policy is most suitable for Client wants lifetime coverage wants flexibility of premiums does not want to participate in the equity/bond market and is willing to accept uncertainty about cash values

Which type of policy is most suitable for Client is not risk averse likes the idea of buying term and investing the difference or participating in the equity/bond market and needs long-term insurance coverage

Which type of policy is most suitable for Client who need coverage for the insured’s whole life but allow payments to be made for a shorter period of time?

If a person wants to take a policy which cover both self and spouse but do not pay a death benefit upon the first death. Instead pay the death benefit after both individuals pass away?

Which of the following statement is incorrect?

Which of the following statement is correct? Statement1: Grace period allows the insurance policy to remain in full force if premium is not paid on due date Statement 2: If the individual dies during the grace period the insurer will not be liable to pay any death proceeds of life insurance. (premium not paid)

Which of the following statement is most likely correct? Statement 1: Death by suicide is cover since inception of the life insurance policy. Statement 2: Death by suicide is normally excluded during a specified period following life policy inception.

“—- is a level premium plan with a savings feature. at maturity a lump sum is paid out equal to the sum assured plus any accrued bonus. If death occurs during the term of the policy then the sum assured and any bonus accrued are paid out.

Which of the following rider provide the benefit which allows the policy owner to keep the policy in force if the owner becomes disabled?

Which of the following rider provide the benefit which Typically doubles or triples the death benefit if the insured dies as a result of an accident. These riders sometimes include coverage for dismemberment as well.

Which of the following rider allows an insured who is terminally ill to receive all or a portion of the death benefit while he or she is still alive?

Which of the following rider pays if an insured has suffered certain life-threatening catastrophic illnesses such as kidney failure or certain types of cancer?

Which of the following method is used to calculate the minimum required insurance amount for replacing the economic worth of individual?

Which of the following method is used to calculate the minimum required insurance amount based on analyses potential needs?

Under income based the method the number of productive year is taken up to:

Which of the following statement is correct? Statement 1: In Capital utilization the principal used to generate income remains intact but in Capital retention the principal used to generate income depletes. Statement 2: In Capital retention the principal used to generate income remains intact but in Capital utilisation the principal used to generate income depletes.

“—-function is to spread invested capital and earned interest over a period to provide a stream of regular payments to person.

Which of the following type of annuity is referred here: Income payments start shortly after a single premium payment is made.

Which of the following type of annuity is referred here: Income payments start after a certain period of time premium is paid

Which of the following type of annuity is referred here: Income payments are made to the primary annuitant while both are alive and the survivor receives some payment after the death of the primary annuitant.

Which of the following type of annuity is referred here: Income payments last for the lifetime of the annuitant and then terminate.

Which of the following statement least likely define annuitization?

“—is an annuity contract provision in which the company agrees that If any new rate established by the company is below the rate specified in the provision money in the contract can be withdrawn without a company-imposed penalty.

“—offer some of the growth potential of the stock market with the downside protection of a guaranteed annuity

—-is a set amount that varies among the plans beyond which the insurance company pays 100 percent of the expenses for covered services.

Which of the following is not covered under long term care insurance?

Elimination period under long term care insurance policy refer to:

Under key man insurance policy who is the primary beneficiary:

The location of the property can significantly affect market value; however, the replacement cost is not as easily affected.

Which of the following is least likely incorrect: Statement 1: If the loss exceeds the amount of insurance, even if the amount of insurance is more than 80 percent of the replacement cost, the insurance company will not pay more than the actual amount of the insurance cover. The policy limit is the most that would be paid. Statement 2: Replacement value is determined at the time policy was purchased, not at the time of loss

Entire contract clause states that changes to the contract must be made in writing and must be signed by an officer of the company?

In case of misstatement of age by the insured the insurer will surely cancel the policy issued to the insured.

—— are add-ons to the basic insurance policy to supplement the insurance cover provided.

Life insurance protects against the risk of dying too soon, while annuities protect against the risk of living too long.

Disability insurance protect against morbidity risk while life insurance protects against mobility risk.