Question 1

The goal of the indemnity principle is to reimburse the insured for the losses sustained _________.

Accepted Answer

A)   and punitive damages
B)   plus compensatory damages
C)   and no more
D)   None of the choices are correct

Question 2

Insurance __________ assist in state insurance regulation to prevent unfair insurer practices.

Accepted Answer

A)   commissioners
B)   delegates
C)   issuers
D)   gurus A

Question 3

Describe what insurance is, the parties involved, and the nature of what insurance covers.

Accepted Answer

Insurance essentially is a contract rela...

Question 4

The amount an insured will receive is controlled by the principle of __________.

Accepted Answer

A)   bribery
B)   subrogation
C)   insurance
D)   indemnity

Question 5

The hit motion picture, The Big Short, told the remarkable story of how a few savvy investors were able to profit from the __________ collapse.

Accepted Answer

A)   legal industry's
B)   stock market's
C)   homeowner's insurance
D)   housing market's

Question 6

Insurers often have access to __________ data that allow them to determine the probability of an event occurring.

Accepted Answer

A)   trade secret
B)   historical
C)   investment
D)   current

Question 7

LAE stands for __________ and represents additional costs associated with the claims, such as legal defense costs.

Accepted Answer

A)   loss adjustment experience
B)   loss adjustment expense
C)   loss adjourment expense
D)   lost adjustment expense

Question 8

What may commercial general liability insurance policies not cover?

Accepted Answer

A)   copyright infringement
B)   false advertising
C)   intangible property
D)   wrongful eviction

Question 9

Congress decided to largely relinquish regulatory control to the states when it passed the __________ Act.

Accepted Answer

A)   McCarran-Farley Act
B)   McDonald-Farley Act
C)   McCarran-Ferguson Act
D)   McCarrol-Ferguson Act

Question 10

List and explain the three main types of risks insurance may protect.

Accepted Answer

Personal insurance represents policies r...

Question 11

Property insurance covers things like homeowners, renters, automobile, and boat insurance.

Accepted Answer

A) True 
 B)False

Question 12

Personal insurance represents policies related to life, health, accident but not disability insurance.

Accepted Answer

A) True 
 B)False

Question 13

The expected loss arising from an event is the probability of the event multiplied times the magnitude of the loss.

Accepted Answer

A) True 
 B)False  True

Question 14

Insurance contracts require that the insured demonstrate they have a potential insurable interest.

Accepted Answer

A) True 
 B)False

Question 15

Insurance is a contractual relationship in which the insured transfers a specified risk to a third-party insurer that aggregates similar __________ into a common pool.

Accepted Answer

A)   redactions
B)   disclosures
C)   materials
D)   risks

Question 16

In Cotton States Mutual Insurance Co. v. Brightman, 580 S.E. 2d 519 (2003) , the Georgia Supreme Court:

Accepted Answer

A)   reversed the trial court and appellate court and found that Cotton States was liable to the insured for the excess jury award judgment.
B)   reprimanded the trial court and appellate court and found that Cotton States was liable to the insured for the excess jury award judgment.
C)   affirmed the trial court and appellate court and found that Cotton States was liable to the insured for the excess jury award judgment.
D)   None of the choices are correct. C

Question 17

The expected loss arising from an event is the probability of the event __________ the magnitude of the loss.

Accepted Answer

A)   added to
B)   multiplied times
C)   divided by
D)   None of the choices are correct

Question 18

What may liability insurance not cover?

Accepted Answer

A)   negligent acts of others
B)   total amount of loss
C)   bodily injury
D)   property damage

Question 19

In some cases, insurance regulators require that insurers contribute toward a __________, which provides coverage for those who may not be able to obtain insurance through the regular insurance markets.

Accepted Answer

A)   petitionary market plan
B)   reparatory market plan
C)   restitutionary market plan
D)   residual market plan

Question 20

Subrogation may exist as a contract term in the insurance policy and may allow the insurance company the right to collect from the insured if a claim is paid and the insured obtained payment from the __________ who caused the loss.

Accepted Answer

A)   prosecution
B)   third party
C)   criminal claim
D)   None of the choices are correct

Exam 46: Insurance Law

The goal of the indemnity principle is to reimburse the insured for the losses sustained _________.

Correct AnswerverifiedShow Answer

Insurance __________ assist in state insurance regulation to prevent unfair insurer practices.

Correct AnswerverifiedA

Describe what insurance is, the parties involved, and the nature of what insurance covers.

Correct AnswerverifiedInsurance essentially is a contract rela...View AnswerShow Answer

The amount an insured will receive is controlled by the principle of __________.

Correct AnswerverifiedShow Answer

The hit motion picture, The Big Short, told the remarkable story of how a few savvy investors were able to profit from the __________ collapse.

Correct AnswerverifiedShow Answer

Insurers often have access to __________ data that allow them to determine the probability of an event occurring.

Correct AnswerverifiedShow Answer

LAE stands for __________ and represents additional costs associated with the claims, such as legal defense costs.

Correct AnswerverifiedShow Answer

What may commercial general liability insurance policies not cover?

Correct AnswerverifiedShow Answer

Congress decided to largely relinquish regulatory control to the states when it passed the __________ Act.

Correct AnswerverifiedShow Answer

List and explain the three main types of risks insurance may protect.

Correct AnswerverifiedPersonal insurance represents policies r...View AnswerShow Answer

Property insurance covers things like homeowners, renters, automobile, and boat insurance.

Correct AnswerverifiedShow Answer

Personal insurance represents policies related to life, health, accident but not disability insurance.

Correct AnswerverifiedShow Answer

The expected loss arising from an event is the probability of the event multiplied times the magnitude of the loss.

Correct AnswerverifiedTrue

Insurance contracts require that the insured demonstrate they have a potential insurable interest.

Correct AnswerverifiedShow Answer

Insurance is a contractual relationship in which the insured transfers a specified risk to a third-party insurer that aggregates similar __________ into a common pool.

Correct AnswerverifiedShow Answer

In Cotton States Mutual Insurance Co. v. Brightman, 580 S.E. 2d 519 (2003) , the Georgia Supreme Court:

Correct AnswerverifiedC

The expected loss arising from an event is the probability of the event __________ the magnitude of the loss.

Correct AnswerverifiedShow Answer

What may liability insurance not cover?

Correct AnswerverifiedShow Answer

In some cases, insurance regulators require that insurers contribute toward a __________, which provides coverage for those who may not be able to obtain insurance through the regular insurance markets.

Correct AnswerverifiedShow Answer

Subrogation may exist as a contract term in the insurance policy and may allow the insurance company the right to collect from the insured if a claim is paid and the insured obtained payment from the __________ who caused the loss.

Correct AnswerverifiedShow Answer

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Insurance essentially is a contract rela...
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Personal insurance represents policies r...
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True

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C

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