Property and Casualty
Home > Preview
The flashcards below were created by user
on FreezingBlue Flashcards.
What is the term for an individual employed by a property and casualty insurance company to settle claims brought on by insureds?
A. A surplus lines agent
B. An adjuster
C. An underwriter
D. A broker
Which of the following would be a certified act of terrorism according to the Terrorism Risk Insurance Act of 2002?
A. An individual visiting the US burns down a home causing $5,000 in property insurance claims
B. A US citizen visiting Europe detonates a bomb stopping mall to protest that country's rise in sales taxes, causing over $5 million in property and casualty insurance claim
C. An individual protesting a US policy toward a foreign country sets off a bomb at a mall and causes over 7 million in property and casualty insurance claims
D. A US citizen blows up a health clinic, causing over $6 million in property and casualty insurance claims
Which of the following entities was created to protect insureds against an insurer's insolvency?
A. The Fair Credit Reporting Act
B. The Insurance Guaranty Association
C. The Insurance Regulation Association
D. The Better Business Bureau
In what year does the 2007 reauthorization of the Terrorism Risk Insurance Program expire?
What is the maximum amount that the Alabama Insurance Guaranty Association will pay in benefits for a property and casualty insurance claim?
What is a binder?
A. Written evidence showing the amounts and types of insurance provided by an insurance policy or policies that have been issued.
B. A temporary contract of insurance issued by the insurer that places insurance in effect prior to the policy being issued
C. A contract for lease of premises
D. A condition that allows the insurer to audit the insured's books or records at the end of the policy term to make sure adequate premium has bee collected for the exposure
What effect does the Terrorism Risk Insurance Act of 2002 have on the "War and military Action Exclusion" with regard to property and casualty insurance?
A. Replaces the exclusion for military actions with an exclusion for terrorist acts only
B. No effect
C. Nullifies any exclusion of certified terrorist acts as cover by the act
D. Narrows the exclusions to include coverage for both terrorist and military actions
What is the purpose of the Terrorism Risk Insurance Act of 2002?
A. To provide a uniform exclusion of damage from terrorist attacks
B. To share the risk of loss from terrorist attacks with the insurance industry
C. To protect the insured public against insurer insolvency
D. To provide terrorism insurance for those unable to obtain it on the normal market
How many separate accounts is the insurance Guaranty Association required to maintain?
D. An account for each line of authority
The association must maintain 3 separate accounts 1)workman's compensation insurance account,2)the automobile insurance account,3)and the account for all other insurance
Which of the following statements is INCORRECT with regards to surplus lines insurance?
A. Policies written by a surplus lines insurer typically contain standard coverages and forms
B. To sell surplus lines insurance, the licensee must obtain a surplus lines broker's license
C. Before coverage is placed with a surplus lines company, diligent effort must be made to place the risk with admitted insurers
D. Business placed with a surplus lines insurer is subject to a premium tax that must be collected by the broker
All of the following would be exempt from the workers compensation laws of the state EXCEPT
A. Employers who only employ 5 workers
B. Employers in domestic service
C. Employers in domestic workers
D. The self-employed
According to the Terrorism Risk Insurance Act of 2002, Which of the following is true about the reimbursement for the insured losses?
A. Losses from terrorist acts do no qualify for reimbursement
B. The federal government covers 100% of the losses in excess of $5 million
C. The insurer must pay a deductible that equals a percentage of the earned premiums for the previous year.
D. The government will reimburse the insurer in a single lump sum
The Secretary of the Treasury estimates that a recent terrorist attack caused losses of more than $100 billion. According to the 2007 reauthorization of the Terrorism Risk Insurance Program, how many days' notice must the Secretary provide Congress?
Which of the following is the most recent extension of the Terrorism Risk Insurance Program?
A. Terrorism Risk Insurance Program Reauthorization Act of 2010
B. Terrorism Risk Insurance Act of 2002
C. Terrorism Risk Insurance Extension Act of 2005
D. Terrorism Risk Insurance Program Reauthorization Act of 2007
What is the maximum period of time for a binder?
A. 30 days
B. 45 days
C. 90 days
D. 6 months
According to the Terrorism Risk insurance Act of 2002, insurers will have certain deductibles and retentions to meet before the federal government reimburses their expenses.How is the deductible determined?
A. It is always 80/20,in which the government pays the larger portion
B. It is percentage of the insurance marketplace aggregate retention amount
C. it is 10% of each million dollars of losses
D. It is a percentage of the insurer's direct earned premiums for the previous year
Surplus Lines insurance usually involves insurance for which type of individuals?
A. High-risk individuals
B. Standard risk individuals
C. Low-risk individuals
D. All of these qualify for surplus lines insurance
A nonadmitted insurer who provides insurance coverages that are not available from an admitted insurer is called
A. Assessment mutual insurer
B. Capitol stock insurer
C. Reciprocal insurer
D. Surplus lines insurer
In Alabama, workers compensation coverage is
What would you like to do?
Home > Flashcards > Print Preview