WPCP Wyoming Property & Casualty Producer - Set 5 - 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: After a covered lawsuit is filed, an insurer discovers that the named insured falsely stated on the liability application that the business had never previously been sued, a false statement the insurer relied on when deciding to issue the policy at all. What remedy does this misrepresentation give the insurer?
Question 42: A liability insurer's claims representative tells an insured, after reviewing the facts of a covered occurrence, that a particular defense the insurer could have raised will not be raised, then later tries to raise that same defense to deny the claim. What has the insurer likely done to that defense?
Question 43: An insurance agent repeatedly assures a business owner that equipment is covered under the liability policy, and the owner relies on that assurance by forgoing coverage elsewhere. After a loss involving the equipment, the insurer tries to deny the claim based on an exclusion. What doctrine may prevent that denial?
Question 44: A licensing student learns that both waiver and estoppel can prevent an insurer from enforcing a policy provision it might otherwise rely on, yet the two doctrines rest on genuinely different legal foundations. Which statement most accurately distinguishes waiver from estoppel as they apply to insurance contracts?
Question 45: Before issuing a personal auto liability policy, an underwriter requests the applicant's official driving record from the state motor vehicle agency to check for prior accidents, traffic violations, and license suspensions before deciding on eligibility and rate. What is this driving record commonly called in underwriting?
Question 46: A liability insurer plans to share a policyholder's nonpublic personal financial information with an unrelated marketing company that is not affiliated with the insurer in any way. Before doing so, what must the insurer generally provide the policyholder under federal privacy law governing financial institutions?
Question 47: A liability insurer orders a consumer report while underwriting a new business owner's policy and, relying partly on that report, decides to decline the application altogether rather than offer coverage at any premium. What does the Fair Credit Reporting Act require the insurer to give the applicant here?
Question 48: Following large-scale losses from a certified act of terrorism, a federal program requires commercial property and casualty insurers to make terrorism coverage available to policyholders and provides a government backstop that shares in extraordinarily large terrorism losses above a specified threshold. What is this federal program generally known as?
Question 49: A general liability policy covers bodily injury and property damage occurring within its stated coverage territory, generally the home country and its territories, plus international waters or airspace between points there, but not an occurrence entirely within an unrelated foreign nation. What does this provision define?
Question 50: A business owner completes a liability insurance application, and the insurer physically attaches a copy of that signed application to the printed policy before delivering the finished contract to the named insured. What is the legal effect of physically attaching the application to the policy in this way?
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