Free Property & Casualty Insurance License Trivia Questions and Answers

Question 1

Which kind of arbitration has a final decision?

Accepted Answer

Binding Arbitration

Answer

Absolute arbitration

Answer

Non-binding arbitration

Answer

Non-discussion arbitration

Question 2

Taylor's home was completely lost after a fire completely destroyed it. In order to examine the damage and possibly get a check to pay his damages, Taylor phoned his insurance company. Taylor was in charge of providing a list of all the damaged personal stuff he lost in the fire to his insurance provider. Taylor added the computer to the list to have the insurance company pay for a replacement even though he was aware it was in his car at the time of the fire and was undamaged. Which risk is Taylor responsible for?

Accepted Answer

Moral hazard

Answer

Ethical hazard

Answer

Morale hazard

Answer

Physical hazard

Question 3

An insured may obstruct subrogation in any of the following methods, EXCEPT:

Accepted Answer

Provide the insurance carrier with complete documentation of the loss

Answer

Impair the investigation

Answer

Interfere with the investigation

Answer

Withhold vital details about the loss

Question 4

Can an employee sue their employer under employer liability insurance in addition to making a workers' compensation claim?

Accepted Answer

Yes, under a dual capacity claim

Answer

No, in all cases

Answer

Yes, with no restrictions involved

Answer

Yes, in all cases

Question 5

Employer's liability insurance provides two advantages over workers' compensation insurance, despite the fact that the employee must establish fault. Which two claims categories would not be covered by workers' compensation coverage but would fall under employer liability coverage?

Accepted Answer

Dual capacity claims and third-party-over claims

Answer

Third-party-over claims and bodily injury

Answer

Third-party claims and loss of wages

Answer

Dual capacity claims and bodily injury

Question 6

Which exception to the exclusive remedy approach requires employees to demonstrate employer negligence in order to receive compensation for an accident sustained at work?

Accepted Answer

Employer’s liability

Answer

Worker’s exemption laws

Answer

Employee liability

Answer

No-fault employee laws

Question 7

Does non-binding arbitration always produce a "winner" at the end?

Accepted Answer

No, the non-winning party does not have to accept the arbitrator’s decision

Answer

Yes, the parties must leave the proceedings with a final winner or find a new arbitrator

Answer

No, the “winner” must still win in a court of law

Answer

Yes, the “winner” is final in non-binding arbitration