Fundamentals of Insurance – Practice Exam Questions with Correct Answers – Complete Insurance Revision Study Material

Fundamentals of Insurance – Practice Exam Questions with Correct Answers – Complete Insurance Revision Study Material Introduction This document contains a comprehensive collection of multiple-choice practice exam questions with correct answers covering the fundamentals of insurance. It includes topics such as property insurance, homeowners insurance, commercial insurance, liability, automobile insurance, insurance principles, underwriting, risk management, ethics, and insurance law. The material is designed as a revision resource to help students prepare for insurance certification and licensing examinations. It provides a wide range of exam-style questions that reinforce key insurance concepts and policy provisions. Exam Questions and Answers When the insurer opts to repair, rebuild, or replace damaged property rather than make payment in the form of a cash settlement it must: a. First provide the insured with the option of accepting or rejecting the proposed basis of settlement b. Provide the insured with written notice of the intention to do so within 30 days after receipt of proof of loss c. Seek the consent of the insured's mortgagee d. Advise the insured's broker or agent of its decision --- correct precise answer ---b. Provide the insured with written notice of the intention to do so within 30 days after receipt of proof of loss This is the most common of errors and omissions claims, accounting for nearly 50% of all claims a. Policy change errors b. Processing delays c. Cancellation of renewal errors d. Inadequate coverage --- correct precise answer ---d. Inadequate coverage A physical hazard is: a. A type of peril b. The same as a moral hazard c. A condition relating to the premises which may cause a peril to occur d. The possibility of a loss due to the character of the insured --- correct precise answer ---c. A condition relating to the premises which may cause a peril to occur