Study RI practice test Flash Cards
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Pile Management Card
RI practice test
RI practice test
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Which of the following does not provide named peril coverage on personal property?
a) HO II b) HO III c) HO V d) HO VI |
| d) HO VI |
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Under the appriasal clause, the cost of the umpire is paid by:
a) the insurance company b) the policy holder c) both a and b d) A court |
| c) both a and b |
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Damages for pain and suffering can be described as:
a) special b) general c) punitive d) exemplary |
| b) general |
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Under the contributory negligence law, if a person who is partially responisble for his/her own injury:
a) third party cannot be held responsible b) a third party can be held responsible c) the government only can be held responsible d) a third party can be held responsible only if found to be more than 50% negligent. |
| a) third party cannot be held responsible |
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Deductibles are used to:
a) require insurance to value b) increase the policy limits c) prevent the policyholder from collecting for damages twice. d) eliminate small losses |
| d) eliminate small losses |
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Coinsurance does which of the following:
a) eliminates small losses b) protects the concept of indemnity c) encourages insurance to value d) automatically raises policy limits |
| c) encourages insurance to value |
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Which of the following decribes a tort?
a) a lawsuit b) a civil wrong c) a criminal act d) giving up a right |
| b) a civil wrong |
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In the state of RI when the Director of Insurance believes that an insurer is engaging in Unfair Claims practices, he may:
a) hold a hearing b) notify the governor c) bring a lawsuit against the insurer d) Do nothing since the is does not fall under the directors responsibilities. |
| a) hold a hearing |
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In the state of Rhode Island, if a person violates a cease and desist order by the COI, they will be subject to all of the following penalties except:
a) fines b) revocation of insurance license c) suspension of insurance license d) imprisonment |
| d) imprisonment |
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Whichof the following could be covered under the liablity section of the homeowners policy:
a) An insureds personal auto b) An insureds business auto c) An insureds Aircraft d) and insureds golf cart |
| d) and insureds golf cart |
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Which of the following is not true of personal umbrella policies:
a) provide primary coverage b) provide excess coverage c) cover some losses that are exluded by underlying policies d) are not standardized |
| a) provide primary coverage |
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A boat owners policy can cover which of the following:
a) property b) liablity c) medical payements d) all of the above |
| d) all of the above |
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Uninsured Motorist coverage provideds protection when:
a) the other party is uninsured b) the other party has less insurance than damages c) the insured is located in a no fault state. d) the insured failed to purchase collsion. |
| a) the other party is uninsured |
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An HO V form can best be described as;
a) named peril b) an involuntary form c) a valued form d) an all risk form |
| d) an all risk form |
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Which of the following is not a covered auto?
a) a vehicle shown in the declarations b) a trailer owned by the insured c) a dump truck owned by the insured d) an auto that the insured purchased a week ago that the insured has not told the insurance company about. |
| c) a dump truck owned by the insured |
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Under the Personal Articles Floater, the basis of recover is;
a) stated value b) ACV c) Replacement cost d) market value |
| b) ACV |
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A proof of loss can be described as:
a) a sworn stateement by the insurance company b) a document provided by the state insurance dept. c) an inventory of damaged property d) a document that is prepaid by an attorney. |
| c) an inventory of damaged property |
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Which of the following are not used in the estimationi of a property loss?
a) the insureds opinion of value b) specifications c) labor costs d) overhead |
| a) the insureds opinion of value |
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Which of the following is an example of a peril?
a) trash in the basement b) the chance that a loss will occur is determined to be 50% possiblity c) flood d) a fire extinguiser |
| c) flood |
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A temporary contract of insurance is:
a) warrenty b) binder c) certificate of insurance d) application |
| b) binder |
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When an insured refuses to answer a question on an application this can lead to denial of a future claims based on the legal doctrine of:
a) waiver b) misrepresentaion c) concealment d) estoppel |
| c) concealment |
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An explosion destroys an insureds store. While the store is being rebuilt the owner loses 6 months of income. The loss of income is:
a) proximate cause b) indirect loss c) direct loss d) a hazard |
| b) indirect loss |
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Which of the following is a liablity loss?
a) the insurd negligently starts a fire that damages his own bldg. b) the insured negligently causes an auto accident and is injured. c) the insured negligently causes and accident and damages someone elses car. d) the insured building is damaged by a loss. |
| c) the insured negligently causes and accident and damages someone elses car. |
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An Insurer provides additional benifits at no additional costs to all new insureds. The benifits will also apply to parties already insured byt he insurer; this is the concept of:
a) waiver b) indemnity c) liberalization d) adhesion |
| c) liberalization |
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An insured under a commerical fire policy suffers smoke damage resulting from a fire, which was neglgently started by the employees of a neigboring business. The insureds policy pays the damages and sues the neighbor for payment. This is an example of:
a) proximate cause b) assignment c) appraisal d) Subrogation |
| d) Subrogation |
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Which of the following persons do not have insurable interest?
A) a person who expects someday to inherit property. B) a mecahnic who has custody of the customers car C) a person who owns a car D) a person who has signed a contract to purchase property. |
| A) a person who expects someday to inherit property. |
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The voluntary reliqueshment of a known right is the definition of:
a) concealment b) waiver c) warrenty d) adhesion |
| b) waiver |
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In the event of a loss, an insured must always prove:
a) ownership of property b) that they are at least 21 years of age c) insurable interest d) that premiums have been paid |
| c) insurable interest |
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Insurance coverage is n force when the insured is given the:
a) binder b) application c) quotation d) survey |
| a) binder |
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A condition that increases the possiblity of a loss is called:
a) risk b) hazard c) peril d) waiver |
| b) hazard |
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Actual Cash Value can best be described as:
a) replacement minus depreciation b) replacement cost c) market value d) ordinance of law |
| a) replacement minus depreciation |
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A clause used to enforce the concept of indemnity is called:
a) insurable interest b) proximate cause c) other insurance clause d) liability clause |
| a) insurable interest |
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The display of information required to write a policy is found in which part of a policy?
a) declarations page b) insuring agreement c) exclusions d) conditions |
| a) declarations page |
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Probibility of a loss occurring is the definition of:
a) hazard b) risk c) loss d) peril |
| b) risk |
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Which of the following Best Describes the purpose of the insuring agreement?
a) to name the insured, address of the covered property and coverage limits. b) to describe the coverage's provided. c) to specify what is not covered |
| b) to describe the coverage's provided. |
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