CCA Insurance Policies and Coverage 1

Question 1

Which section of an insurance policy outlines the specific coverage provided?

Accepted Answer

Insuring agreement

Answer

Declarations page

Answer

Conditions

Answer

Exclusions

Question 2

What is the purpose of the 'deductible' in an insurance policy?

Accepted Answer

To require the insured to share in the loss

Answer

To increase premiums

Answer

To reduce the risk of claim fraud

Answer

To define coverage limits

Question 3

Which of the following is typically found in the declarations page of an insurance policy?

Accepted Answer

Coverage limits and insured’s information

Answer

Claim procedures

Answer

Definitions

Answer

Policy exclusions

Question 4

Which part of an insurance policy specifies what is NOT covered?

Accepted Answer

Exclusions

Answer

Endorsements

Answer

Declarations

Answer

Insuring clause

Question 5

What is the purpose of an endorsement in an insurance policy?

Accepted Answer

To change policy terms or add coverage

Answer

To cancel the policy

Answer

To define legal responsibilities

Answer

To explain insurance regulations

Question 6

Which policy type covers all risks except those specifically excluded?

Accepted Answer

All-risk (open perils) policy

Answer

Named perils policy

Answer

Umbrella policy

Answer

Homeowners basic policy