Test No. 3 (Independent Study) Covers Studies 7-10

Question 1

1. a) Outline the key types of information requested on insurance applications. (20 marks)

Answer 1

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Question 2

b) Explain the benefits of a written application versus an oral application for insurance. (5 marks)

Answer 2

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Question 3

c) State what factors must be considered to arrive at the total premium for insurance. (5 marks)

Answer 3

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Question 4

2. a) Explain three problems that can arise from the use of temporary insurance coverage and especially oral binders. (6 marks)

Answer 4

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Question 5

b) Describe five sections commonly found in insurance policies. (10 marks)

Answer 5

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Question 6

c) State the difference between pro rata and short rate cancellation of insurance policies and when each would occur. (4 marks)

Answer 6

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Question 7

3. a) State the difference between direct and indirect losses and give an example of each. (5 marks)

Answer 7

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Question 8

b) Describe what salvage is and provide an example of how salvage could impact an insurance claim. (10 marks)

Answer 8

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Question 9

c) Describe what subrogation is and provide an example of how subrogation could impact an insurance claim. (10 marks)

Answer 9

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Question 10

d) Outline the key functions and steps in the claims process. (15 marks)

Answer 10

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Question 11

e) Describe the role of insurance adjusters, including the various types of adjusters that may work on a claim. (10 marks)

Answer 11

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