CCA Insurance Policies and Coverage 1

Question 1

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

Accepted Answer

Insuring agreement

Answer

The insuring agreement defines what is covered under the policy, setting the scope of protection provided to the insured.

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

A deductible is the amount the insured must pay out of pocket before the insurance coverage begins to pay for a loss.

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

The declarations page includes essential details such as the policyholder's name, policy period, and coverage limits.

Question 4

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

Accepted Answer

Exclusions

Answer

Exclusions detail the conditions or items that are not covered by the policy, clarifying the insurer's responsibility.

Question 5

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

Accepted Answer

To change policy terms or add coverage

Answer

Endorsements are amendments or additions that modify the terms or coverage of the original policy.

(CCA) Certified Claims Adjuster Practice Test