EXAMFX STUDY

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Author:
insanity1829
ID:
232054
Filename:
EXAMFX STUDY
Updated:
2013-08-30 16:42:31
Tags:
Virginia Property Casualty Insurance
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Description:
Study set to prepare for Virginia P&C licensing exam
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  1. The type of insurance company organized to return any surplus money to it's policy holders is known as what?

    A) Exchange
    B) Corporation
    C) Co-op
    D) Mutual Company
    D) A Mutual Company
    (this multiple choice question has been scrambled)
  2. The reduction, decrease, or disappearance of value of the person or property insured in a policy is known as what?

    A) Loss
    B) Claim
    C) Hazard
    A) Loss
    (this multiple choice question has been scrambled)
  3. What does the term "reasonable expectations" mean in insurance?
    Certain expectations for coverage that a reasonable person would have based on sources other than just the policy language.
  4. In insurance contracts, when does acceptance usually occur?

    A) When the deposit is paid
    B) When the insurer approves the prepaid application
    C) When the application is signed
    D) When the quote is completed
    B) When the insurer approves a prepaid application.
    (this multiple choice question has been scrambled)
  5. What does "indemnify" mean in insurance?

    A) To replace all items that were lost or damaged with new. 
    B) To restore an insured to the same financial status as before the loss
    C) To split the cost of replacement 50/50
    B) To restore an insured to the same financial status as before a loss.
    (this multiple choice question has been scrambled)
  6. What is the difference between cancellation and non-renewal?
    Cancellation is the termination of an insurance policy by either party prior to it's renewal date. Non-renewal is the termination of a policy at it's expiration date by not offering a continuation of the existing policy.
  7. What is the term for the causes of loss insured against in an insurance policy?

    A) Occurence
    B) Hazard
    C) Peril
    C) Peril
    (this multiple choice question has been scrambled)
  8. What does the principal of utmost good faith imply?
    There is no fraud, misrepresentation, or concealment between the parties to the contract.
  9. A state-issued document empowering an insurance company to become an admitted insurer is called what?

    A) A License
    B) A Charter
    C) A Certificate of Authority
    D) A Contract with the State
    C) A Certificate of Authority
    (this multiple choice question has been scrambled)
  10. When would a misrepresentation on an insurance application be considered fraud?
    When it is intentional and material.

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