IPCI Indiana Property and Casualty Insurance Exam - Set 3 - Part 3
Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.
Question 41: One section of every policy is called the heart of the contract because it summarizes the insurer's major promises, describes the perils or risks the company assumes, and states what the policy actually covers. Which section carries that role?
Question 42: An underwriter explains that certain causes of loss are left out of a policy because they would strike many insured properties at once, or because they are simply not the kind of exposure this form was priced to carry. What does this explain?
Question 43: A homeowner pays premiums for eleven years without filing a single claim. Her neighbor pays one quarterly premium and then collects a large fire settlement. Which characteristic of insurance contracts accounts for this plainly unequal exchange of value between the parties?
Question 44: A policy requires the insured to keep the premium current and to file the paperwork the company asks for after a loss before the company will pay anything. Which characteristic of insurance contracts do these two requirements best illustrate?
Question 45: An applicant completes and signs an application for a commercial property policy and hands it to the producer along with the first premium payment. In contract terms, this act by the applicant represents which element of a legal contract?
Question 46: Two policies respond to the same property loss. One attaches immediately when the loss occurs and pays first. The second pays only what the first did not cover, up to the lesser of the loss or its own limit. Which describes the second policy?
Question 47: A standard homeowners form first grants broad protection and then names flood damage, war and nuclear hazard as causes of loss for which nothing will ever be paid. Which part of the policy performs that function of taking coverage back?
Question 48: The first page of a property policy identifies the insured by name and address, gives a legal description of the property, states the policy term, and is used in determining the premium. Which part of the policy is being described?
Question 49: A commercial client asks where in his liability policy he can find the company's commitment to hire and pay a lawyer if a customer sues him, even before any judgment is entered. Which part of the policy contains that commitment?
Question 50: Each party to an insurance contract is entitled to expect that the other will deal honestly, will not conceal pertinent information, and will not act deceptively during the transaction. Which characteristic of insurance contracts best captures this mutual expectation?
Struggling With Exams?
Less Time Studying, More Time Living – Finish Your Degree Faster! Pay-After-you-Pass!
Get Exam Support