瑞达 Rejda 保险教材英文练习题10

1、Principles of Risk Management and Insurance, 11e (Rejda)Chapter 10 Analysis of Insurance Contracts1) The portion of a property and liability insurance contract that contains information about the property or activity to be insured is called theA) declarations.B) insuring agreement.C) exclusions.D) c

2、onditions.Answer: AQuestion Status: Previous Edition2) What information is contained in the insuring agreement of an insurance policy?A) a description of the property or life to be insuredB) a summary of the major promises of the insurerC) a summary of the obligations of the insuredD) a list of the

3、property, losses, and perils that are not coveredAnswer: BQuestion Status: Previous Edition3) Which of the following statements about all-risks coverage is (are) true?I.All losses are covered except those losses specifically excluded.II.The burden of proof is on the insured to prove that a loss is c

4、overed.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition4) The exclusion of flood in a homeowners policy is an example of anA) excluded activity.B) excluded condition.C) excluded property.D) excluded peril.Answer: DQuestion Status: Previous Edition5) Ex

5、clusions are used in insurance policies for all of the following reasons EXCEPTA) to reduce moral hazard.B) to waive policy conditions.C) to eliminate coverage for uninsurable perils.D) to eliminate coverage not needed by typical insureds.Answer: BQuestion Status: Previous Edition6) Reasons why a pe

6、ril may be considered uninsurable and therefore excluded from insurance contracts include which of the following?I.The losses from the occurrence of the peril may be due to a predictable decline in value.II.The losses from the occurrence of the peril may be incalculable and catastrophic.A) I onlyB)

7、II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition7) The policy provision requiring the filing of proof of loss with the insurer is an example of a(n)A) declaration.B) condition.C) insuring agreement.D) miscellaneous provision.Answer: BQuestion Status: Previous Edit

8、ion8) Which of the following statements about the definition of the insured is (are) true?I.In some cases, a person who is not specifically named may be classified as an insured.II.Under no circumstances can more than one person be named as an insured.A) I onlyB) II onlyC) both I and IID) neither I

9、nor IIAnswer: AQuestion Status: Previous Edition9) All of the following statements about endorsements and riders are true EXCEPTA) They are usually written.B) They can be used to add or delete policy provisions.C) They normally take precedence over other conflicting policy provisions.D) They are pri

10、marily used to circumvent legislation requiring specific policy provisions.Answer: DQuestion Status: Previous Edition10) Deductibles are used in all of the following types of insurance EXCEPTA) life insurance.B) health insurance.C) property insurance.D) automobile insurance.Answer: AQuestion Status:

11、 Previous Edition11) All of the following are purposes of deductibles EXCEPTA) to eliminate small claims.B) to reduce premiums.C) to reduce attitudinal hazard.D) to exclude uninsurable perils.Answer: DQuestion Status: Revised12) The deductible used for automobile collision losses is an example of a(

12、n)A) corridor deductible.B) elimination period.C) straight deductible.D) aggregate deductible.Answer: CQuestion Status: Previous Edition13) Which of the following statements about a calendar-year deductible is (are) true?I.It requires the insured to pay a specified amount of each claim regardless of

13、 when the claim occurs during the year and regardless of any previous claims during the year.II.It is used only in policies which cover direct property losses.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition14) A provision in a disability income insura

14、nce policy that requires a person to be disabled for 60 days before receiving benefits is an example of a(n)A) corridor deductible.B) grace period.C) elimination period.D) probationary period.Answer: CQuestion Status: Revised15) At what point in time must an insured meet the coinsurance requirement

15、in a property insurance policy in order to avoid having to pay a portion of the loss?A) only at the time of lossB) only at the time when the policy is issued C) only at the time of policy applicationD) both at the time when the policy is issued and at the time of lossAnswer: AQuestion Status: Revise

16、d16) David owns a commercial building with a replacement cost of $4 million. The building is insured on a replacement cost basis for $3 million under a fire insurance policy that has an 80 percent coinsurance clause. How much will David collect if the building sustains a covered fire loss with a rep

17、lacement cost of $320,000?A) $266,667B) $275,000C) $300,000D) $320,000Answer: CQuestion Status: Previous Edition17) The primary purpose of coinsurance in property insurance is toA) reduce moral hazard.B) achieve equity in rating.C) minimize problems in settling claims.D) eliminate small losses.Answe

18、r: BQuestion Status: Previous Edition18) Which of the following statements about problems arising from the use of a coinsurance clause is (are) true?I.The amount of insurance should be periodically evaluated to avoid a coinsurance penalty because of inflation.II.An agreed value coverage option is on

19、e method used to solve the problem of values that fluctuate throughout the policy term.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition19) Connie has a major medical policy with a $200 deductible and a 75-25 coinsurance clause. If she has eligible medi

20、cal expenses of $10,000, how much will be paid by her insurer?A) $7,300B) $7,350C) $7,500D) $9,800Answer: BQuestion Status: Previous Edition20) Purposes of the coinsurance clause in health insurance contracts include which of the following?I.To reduce premiums.II.To exclude coverage for certain medi

21、cal procedures.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition21) The purpose of other-insurance provisions is toA) eliminate the need for deductibles.B) penalize those insureds who carry inadequate amounts of insurance.C) specify who will pay losses

22、if the insurer is bankrupt.D) preserve the principle of indemnity.Answer: DQuestion Status: Previous Edition22) Lisa has three fire insurance policies on her office building. The policy from company A is for $400,000, and the policies from companies B and C are for $100,000 each. If Lisa has a $360,

23、000 loss, how much of the loss will be covered by each policy if the loss is settled on a pro rata basis by the insurers?A) each policy: $120,000B) policy A: $160,000; policies B and C: $100,000 eachC) policy A: $240,000; policies B and C: $60,000 eachD) policy A: $360,000; policies B and C: nothing

24、Answer: CQuestion Status: Previous Edition23) Kevin has three liability policies which provide for contribution by equal shares if other insurance applies to a loss. How much will each policy pay for a $3,000,000 liability judgment if policy A provides $500,000 of coverage, policy B provides $1,000,

25、000 of coverage, and policy C provides $3,000,000 of coverage?A) Each policy will pay $500,000, and Kevin must pay the remaining $1,500,000.B) Policy A will pay $500,000, policies B and C will each pay $1,000,000, and Kevin must pay the remaining $500,000.C) Policy A will pay nothing, policy B will

26、pay $1,000,000, and policy C will pay $2,000,000.D) Policy A will pay $500,000, policy B will pay $1,000,000, and policy C will pay $1,500,000.Answer: DQuestion Status: Previous Edition24) Helen and John both own automobiles on which they carry liability insurance. If Helen is negligent and has an a

27、ccident while driving Johns car, how will each insurer respond to any liability judgment against Helen?A) The insurers will pay the judgment on a pro rata basis.B) Johns insurer will pay on an excess basis if Helens insurance is insufficient to cover the judgment.C) Helens insurance will pay on an e

28、xcess basis if Johns insurance is insufficient to cover the judgment.D) The policies will pay the judgment on the basis of contribution by equal shares.Answer: CQuestion Status: Previous Edition25) Kate is covered under her employers group health plan. She is also covered as a dependent under her hu

29、sbands group health plan. Under the usual coordination-of-benefits provision, how will each company respond to a claim filed by Kate?A) Kates plan is primary, and her husbands plan is excess.B) Her husbands plan is primary, and Kates plan is excess.C) The plan of the person with the birthday earlies

30、t in the year pays first, and the other plan is excess.D) Each plan will pay 50 percent of the claim.Answer: AQuestion Status: Previous Edition26) Erics property was damaged in an accident. He phoned his agent to see if the loss was covered under his property insurance policy. The agent said, As lon

31、g as the cause of loss is not specifically excluded in the policy, the loss is covered. Based on the agents answer, what type of insuring agreement appears in the policy?A) unconditional coverageB) named-perils coverageC) extended-perils coverageD) all-risks coverageAnswer: DQuestion Status: Previou

32、s Edition27) Janet hit a wall causing a large dent in the fender of her car. She was busy at work and delayed reporting the damage to her insurer for 9 months. The insurer denied the claim, stating, Although such a loss is usually covered, you are required under the terms of the contract to provide

33、prompt notification in case of loss. The prompt notification requirement is an example of a(n)A) declaration.B) definition.C) insuring agreement.D) condition.Answer: DQuestion Status: Previous Edition28) Mark reviewed his homeowners policy. He learned that his personal property was insured on an act

34、ual cash value basis. He would like replacement cost coverage on the property. He contacted his agent who said, Ill simply add an amendment to your contract that changes the basis of recovery to replacement cost. The written provision the agent was referring to is called a(n)A) endorsement.B) coinsu

35、rance clause.C) binder.D) deductible.Answer: AQuestion Status: Previous Edition29) Under the terms of Jennys auto insurance policy, she must pay the first $500 of any physical damage loss to her vehicle before her insurer will pay anything. What type of deductible is included in Jennys auto insuranc

36、e policy?A) calendar-year deductibleB) corridor deductibleC) straight deductibleD) aggregate deductibleAnswer: CQuestion Status: Previous Edition30) Shauna hurt her back and was unable to work. She filed a claim under her disability income insurance policy. Under terms of the policy, 60 days must pa

37、ss between the date of the injury and when the insurer begins to replace lost earnings. This 60-day period is called a(n)A) grace period.B) enrollment period.C) probationary period.D) elimination (waiting) period.Answer: DQuestion Status: Previous Edition31) ABC Company insured its building on a rep

38、lacement cost basis for $700,000 under a property insurance policy that included an 80 percent coinsurance clause. The building had a replacement cost of $1 million when it sustained a $40,000 loss. How much will ABC Company receive from its insurer, assuming no deductible applies?A) $33,333B) $35,0

39、00C) $36,000D) $40,000Answer: BQuestion Status: Previous Edition32) XYZ Company insured its building on a replacement cost basis for $450,000 under a property insurance policy that included an 80 percent coinsurance clause. The building had a replacement cost of $500,000 when it sustained a $50,000

40、loss. How much will XYZ Company receive from its insurer, assuming no deductible applies?A) $42,500B) $45,000C) $50,000D) $56,250Answer: CQuestion Status: Previous Edition33) Lauras major medical insurance policy includes a $500 deductible and an 80-20 coinsurance clause. Laura was hospitalized and

41、her covered medical expenses were $10,500. How much of the $10,500 will be paid by the insurer under Lauras major medical policy?A) $7,500B) $7,900C) $8,000D) $10,000Answer: CQuestion Status: Previous Edition34) James purchased liability insurance with a $100,000 limit from Insurer A. When Insurer A

42、 denied a claim that James thought should be covered, he bought a second liability insurance policy with a $150,000 limit from Insurer B. Before he cancelled the policy with Insurer A, a $60,000 loss occurred. If this loss is settled on a pro rata basis, how much must each insurer pay?A) Insurer A w

43、ill pay $10,000 and Insurer B will pay $50,000.B) Insurer A will pay $20,000 and Insurer B will pay $40,000.C) Insurer A will pay $24,000 and Insurer B will pay $36,000.D) Insurer A will pay $40,000 and Insurer B will pay $20,000.Answer: CQuestion Status: Previous Edition35) Jane purchased a $50,000

44、 liability insurance policy from Insurer A. Fearing that she did not have enough liability insurance, she purchased an additional $100,000 of liability coverage from Insurer B. As a result of her negligence, Jane was ordered to pay $75,000 in damages. Assuming the coverage from Insurer A is primary

45、and the coverage from Insurer B is excess, how will this claim be settled?A) Insurer A will pay $50,000 and Insurer B will pay $25,000.B) Insurer A will pay $37,500 and Insurer B will pay $37,500.C) Insurer A will pay $25,000 and Insurer B will pay $50,000.D) Insurer A will pay nothing and Insurer B will pay $75,000.Answer: AQuestion