IIC Principles and Practice of Insurance - C11 Exam Practice Test
Which type of insurance company has the same capital structure as any other capital enterprise?
Correct Answer: D
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Usually, what must an insurance intermediary do before using the personal information of a client for a purpose other than that for which the information was originally collected?
Correct Answer: B
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What is the name of the pooling agreement where all high-risk drivers are underwritten in a common pool?
Correct Answer: A
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Which statement reflects the concept that the premium for each risk should be commensurate with that risk?
Correct Answer: B
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Dominika's house sustains a fire resulting in a $500,000 total loss to the house and contents. Some pieces of furniture are salvageable and valued at $4,000 by the insurer. Dominika chooses to keep these items for her next home. Dominika's policy has a guaranteed replacement cost clause with a limit of $500,000 and a deductible of $1,000. What settlement amount will Dominika recover from the loss?
Correct Answer: C
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Which statement best explains the concept of utmost good faith?
Correct Answer: C
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