瑞达rejda保险教材英文练习题10

1、(Rejda)PrinciplesofRiskManagementandInsurance,11eChapter10AnalysisofInsuranceContracts1)TheportionofapropertyandliabilityinsurancecontractthatcontainsinformationaboutthepropertyoractivitytobeinsurediscalledtheA)declarations.B) insuringagreement.C) exclusions.D) conditions.Answer:AQuestionStatus:Prev

2、iousEdition2) WhatinformationiscontainedintheinsuringagreementofaninsurancepolicyA)adescriptionofthepropertyorlifetobeinsuredB) asummaryofthemajorpromisesoftheinsurerC) asummaryoftheobligationsoftheinsuredD) alistoftheproperty,losses,andperilsthatarenotcoveredAnswer:BQuestionStatus:PreviousEdition3)

3、 Whichofthefollowingstatementsabout"all-risks"coverageis(are)trueI) Alllossesarecoveredexceptthoselossesspecificallyexcluded.J) .Theburdenofproofisontheinsuredtoprovethatalossiscovered.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:AQuestionStatus:PreviousEdition4) Theexclusionoffloo

4、dinahomeownerspolicyisanexampleofanA) excludedactivity.B) excludedcondition.C) excludedproperty.D) excludedperil.Answer:DQuestionStatus:PreviousEdition5) ExclusionsareusedininsurancepoliciesforallofthefollowingreasonsEXCEPTA) toreducemoralhazard.B) towaivepolicyconditions.C) toeliminatecoverageforun

5、insurableperils.D) toeliminatecoveragenotneededbytypicalinsureds.Answer:BQuestionStatus:PreviousEdition6) ReasonswhyaperilmaybeconsidereduninsurableandthereforeexcludedfrominsurancecontractsincludewhichofthefollowingI) Thelossesfromtheoccurrenceoftheperilmaybeduetoapredictabledeclineinvalue.J) .Thel

6、ossesfromtheoccurrenceoftheperilmaybeincalculableandcatastrophic.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:CQuestionStatus:PreviousEdition7) Thepolicyprovisionrequiringthefilingofproofoflosswiththeinsurerisanexampleofa(n)A) declaration.B) condition.C) insuringagreement.D) miscellaneouspro

7、vision.Answer:BQuestionStatus:PreviousEdition8) Whichofthefollowingstatementsaboutthedefinitionoftheinsuredis(are)trueII.I) Insomecases,apersonwhoisnotspecificallynamedmaybeclassifiedasaninsured.Undernocircumstancescanmorethanonepersonbenamedasaninsured.J) IonlyK) IIonlyL) bothIandIIM) neitherInorII

8、Answer:AQuestionStatus:PreviousEdition9) AllofthefollowingstatementsaboutendorsementsandridersaretrueEXCEPTA)Theyareusuallywritten.B) Theycanbeusedtoaddordeletepolicyprovisions.C) Theynormallytakeprecedenceoverotherconflictingpolicyprovisions.D) Theyareprimarilyusedtocircumventlegislationrequiringsp

9、ecificpolicyprovisions.Answer:DQuestionStatus:PreviousEdition10) DeductiblesareusedinallofthefollowingtypesofinsuranceEXCEPTA) lifeinsurance.B) healthinsurance.C) propertyinsurance.D) automobileinsurance.Answer:AQuestionStatus:PreviousEdition11) AllofthefollowingarepurposesofdeductiblesEXCEPTA) toel

10、iminatesmallclaims.B) toreducepremiums.C) toreduceattitudinalhazard.D) toexcludeuninsurableperils.Answer:DQuestionStatus:Revised12) Thedeductibleusedforautomobilecollisionlossesisanexampleofa(n)A) corridordeductible.B) eliminationperiod.C) straightdeductible.D) aggregatedeductible.Answer:CQuestionSt

11、atus:PreviousEdition13) Whichofthefollowingstatementsaboutacalendar-yeardeductibleis(are)trueI) Itrequirestheinsuredtopayaspecifiedamountofeachclaimregardlessofwhentheclaimoccursduringtheyearandregardlessofanypreviousclaimsduringtheyear.J) .Itisusedonlyinpolicieswhichcoverdirectpropertylosses.K) Ion

12、lyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:DQuestionStatus:PreviousEdition14) Aprovisioninadisabilityincomeinsurancepolicythatrequiresapersontobedisabledfor60daysbeforereceivingbenefitsisanexampleofa(n)A) corridordeductible.B) graceperiod.C) eliminationperiod.D) probationaryperiod.Answer:CQuesti

13、onStatus:Revised15) AtwhatpointintimemustaninsuredmeetthecoinsurancerequirementinapropertyinsurancepolicyinordertoavoidhavingtopayaportionofthelossA) onlyatthetimeoflossB) onlyatthetimewhenthepolicyisissuedC) onlyatthetimeofpolicyapplicationD) bothatthetimewhenthepolicyisissuedandatthetimeoflossAnsw

14、er:AQuestionStatus:Revised16) Davidownsacommercialbuildingwithareplacementcostof$4million.Thebuildingisinsuredonareplacementcostbasisfor$3millionunderafireinsurancepolicythathasan80percentcoinsuranceclause.HowmuchwillDavidcollectifthebuildingsustainsacoveredfirelosswithareplacementcostof$320,000A)$2

15、66,667B)$275,000C)$300,000D)$320,000Answer:CQuestionStatus:PreviousEdition17) TheprimarypurposeofcoinsuranceinpropertyinsuranceistoA) reducemoralhazard.B) achieveequityinrating.C) minimizeproblemsinsettlingclaims.D) eliminatesmalllosses.Answer:BQuestionStatus:PreviousEdition18) Whichofthefollowingst

16、atementsaboutproblemsarisingfromtheuseofacoinsuranceclauseis(are)trueI) Theamountofinsuranceshouldbeperiodicallyevaluatedtoavoidacoinsurancepenaltybecauseofinflation.J) .Anagreedvaluecoverageoptionisonemethodusedtosolvetheproblemofvaluesthatfluctuatethroughoutthepolicyterm.K) IonlyL) IIonlyM) bothIa

17、ndIIN) neitherInorIIAnswer:CQuestionStatus:PreviousEdition19) Conniehasamajormedicalpolicywitha$200deductibleanda75-25coinsuranceclause.Ifshehaseligiblemedicalexpensesof$10,000,howmuchwillbepaidbyherinsurerA) $7,300B) $7,350C) $7,500D) $9,800Answer:BQuestionStatus:PreviousEdition20) Purposesofthecoi

18、nsuranceclauseinhealthinsurancecontractsincludewhichofthefollowingI. Toreducepremiums.II. Toexcludecoverageforcertainmedicalprocedures.A) IonlyB) IIonlyC) bothIandIID) neitherInorIIAnswer:AQuestionStatus:PreviousEdition21) Thepurposeofother-insuranceprovisionsistoA) eliminatetheneedfordeductibles.B)

19、 penalizethoseinsuredswhocarryinadequateamountsofinsurance.C) specifywhowillpaylossesiftheinsurerisbankrupt.D) preservetheprincipleofindemnity.Answer:DQuestionStatus:PreviousEdition22) Lisahasthreefireinsurancepoliciesonherofficebuilding.ThepolicyfromcompanyAisfor$400,000,andthepoliciesfromcompanies

20、BandCarefor$100,000each.IfLisahasa$360,000loss,howmuchofthelosswillbecoveredbyeachpolicyifthelossissettledonaproratabasisbytheinsurersA) eachpolicy:$120,000B) policyA:$160,000;policiesBandC:$100,000eachC) policyA:$240,000;policiesBandC:$60,000eachD) policyA:$360,000;policiesBandC:nothingAnswer:CQues

21、tionStatus:PreviousEdition23) Kevinhasthreeliabilitypolicieswhichprovideforcontributionbyequalsharesifotherinsuranceappliestoaloss.Howmuchwilleachpolicypayfora$3,000,000liabilityjudgmentifpolicyAprovides$500,000ofcoverage,policyBprovides$1,000,000ofcoverage,andpolicyCprovides$3,000,000ofcoverageA)Ea

22、chpolicywillpay$500,000,andKevinmustpaytheremaining$1,500,000.B) PolicyAwillpay$500,000,policiesBandCwilleachpay$1,000,000,andKevinmustpaytheremaining$500,000.C) PolicyAwillpaynothing,policyBwillpay$1,000,000,andpolicyCwillpay$2,000,000.D) PolicyAwillpay$500,000,policyBwillpay$1,000,000,andpolicyCwi

23、llpay$1,500,000.Answer:DQuestionStatus:PreviousEdition24) HelenandJohnbothownautomobilesonwhichtheycarryliabilityinsurance.IfHelenisnegligentandhasanaccidentwhiledrivingJohn'scar,howwilleachinsurerrespondtoanyliabilityjudgmentagainstHelenA) Theinsurerswillpaythejudgmentonaproratabasis.B) John

24、9;sinsurerwillpayonanexcessbasisifHelen'sinsuranceisinsufficienttocoverthejudgment.C) Helen'sinsurancewillpayonanexcessbasisifJohn'sinsuranceisinsufficienttocoverthejudgment.D) Thepolicieswillpaythejudgmentonthebasisofcontributionbyequalshares.Answer:CQuestionStatus:PreviousEdition25) Ka

25、teiscoveredunderheremployer'sgrouphealthplan.Sheisalsocoveredasadependentunderherhusband'sgrouphealthplan.Undertheusualcoordination-of-benefitsprovision,howwilleachcompanyrespondtoaclaimfiledbyKateA) Kate'splanisprimary,andherhusband'splanisexcess.B) Herhusband'splanisprimary,and

26、Kate'splanisexcess.C) Theplanofthepersonwiththebirthdayearliestintheyearpaysfirst,andtheotherplanisexcess.D) Eachplanwillpay50percentoftheclaim.Answer:AQuestionStatus:PreviousEdition26) Eric'spropertywasdamagedinanaccident.Hephonedhisagenttoseeifthelosswascoveredunderhispropertyinsurancepoli

27、cy.Theagentsaid,"Aslongasthecauseoflossisnotspecificallyexcludedinthepolicy,thelossiscovered.Basedontheagent'sanswer,whattypeofinsuringagreementappearsinthepolicyA)unconditionalcoverageB) named-perilscoverageC) extended-perilscoverageD) "all-risks"coverageAnswer:DQuestionStatus:Pr

28、eviousEdition27) Janethitawallcausingalargedentinthefenderofhercar.Shewasbusyatworkanddelayedreportingthedamagetoherinsurerfor9months.Theinsurerdeniedtheclaim,stating,"Althoughsuchalossisusuallycovered,youarerequiredunderthetermsofthecontracttoprovidepromptnotificationincaseofloss."Theprom

29、ptnotificationrequirementisanexampleofa(n)A)declaration.B) definition.C) insuringagreement.D) condition.Answer:DQuestionStatus:PreviousEdition28) Markreviewedhishomeownerspolicy.Helearnedthathispersonalpropertywasinsuredonanactualcashvaluebasis.Hewouldlikereplacementcostcoverageontheproperty.Heconta

30、ctedhisagentwhosaid,"I'llsimplyaddanamendmenttoyourcontractthatchangesthebasisofrecoverytoreplacementcost."Thewrittenprovisiontheagentwasreferringtoiscalleda(n)A) endorsement.B) coinsuranceclause.C) binder.D) deductible.Answer:AQuestionStatus:PreviousEdition29) UnderthetermsofJenny'

31、;sautoinsurancepolicy,shemustpaythefirst$500ofanyphysicaldamagelosstohervehiclebeforeherinsurerwillpayanything.WhattypeofdeductibleisincludedinJenny'sautoinsurancepolicyA) calendar-yeardeductibleB) corridordeductibleC) straightdeductibleD) aggregatedeductibleAnswer:CQuestionStatus:PreviousEditio

32、n30) Shaunahurtherbackandwasunabletowork.Shefiledaclaimunderherdisabilityincomeinsurancepolicy.Undertermsofthepolicy,60daysmustpassbetweenthedateoftheinjuryandwhentheinsurerbeginstoreplacelostearnings.This60-dayperiodiscalleda(n)A) graceperiod.B) enrollmentperiod.C) probationaryperiod.D) elimination

33、(waiting)period.Answer:DQuestionStatus:PreviousEdition31) ABCCompanyinsureditsbuildingonareplacementcostbasisfor$700,000underapropertyinsurancepolicythatincludedan80percentcoinsuranceclause.Thebuildinghadareplacementcostof$1millionwhenitsustaineda$40,000loss.HowmuchwillABCCompanyreceivefromitsinsure

34、r,assumingnodeductibleappliesA) $33,333B) $35,000C) $36,000D) $40,000Answer:BQuestionStatus:PreviousEdition32)XYZCompanyinsureditsbuildingonareplacementcostbasisfor$450,000underapropertyinsurancepolicythatincludedan80percentcoinsuranceclause.Thebuildinghadareplacementcostof$500,000whenitsustaineda$5

35、0,000loss.HowmuchwillXYZCompanyreceivefromitsinsurer,assumingnodeductibleappliesA) $42,500B) $45,000C) $50,000D) $56,250Answer:CQuestionStatus:PreviousEdition33)Laura'smajormedicalinsurancepolicyincludesa$500deductibleandan80-20coinsuranceclause.Laurawashospitalizedandhercoveredmedicalexpenseswe

36、re$10,500.Howmuchofthe$10,500willbepaidbytheinsurerunderLaura'smajormedicalpolicyA) $7,500B) $7,900C) $8,000D) $10,000Answer:CQuestionStatus:PreviousEdition34) Jamespurchasedliabilityinsurancewitha$100,000limitfromInsurerA.WhenInsurerAdeniedaclaimthatJamesthoughtshouldbecovered,heboughtasecondli

37、abilityinsurancepolicywitha$150,000limitfromInsurerB.BeforehecancelledthepolicywithInsurerA,a$60,000lossoccurred.Ifthislossissettledonaproratabasis,howmuchmusteachinsurerpayA) InsurerAwillpay$10,000andInsurerBwillpay$50,000.B) InsurerAwillpay$20,000andInsurerBwillpay$40,000.C) InsurerAwillpay$24,000

38、andInsurerBwillpay$36,000.D) InsurerAwillpay$40,000andInsurerBwillpay$20,000.Answer:CQuestionStatus:PreviousEdition35) Janepurchaseda$50,000liabilityinsurancepolicyfromInsurerA.Fearingthatshedidnothaveenoughliabilityinsurance,shepurchasedanadditional$100,000ofliabilitycoveragefromInsurerB.Asaresulto

39、fhernegligence,Janewasorderedtopay$75,000indamages.AssumingthecoveragefromInsurerAisprimaryandthecoveragefromInsurerBisexcess,howwillthisclaimbesettledA) InsurerAwillpay$50,000andInsurerBwillpay$25,000.B) InsurerAwillpay$37,500andInsurerBwillpay$37,500.C) InsurerAwillpay$25,000andInsurerBwillpay$50,000.D) InsurerAwillpaynothingandInsurerBwillpay$75,000.Answer:AQuestionS