FREE RIBO Customer Service and Sales Skills Test 2

Question 1

To void a policy, misrepresentation or concealment must be which of the following?

Accepted Answer

Both A and B are correct.

Answer

Concern material facts.

Answer

Be intentional.

Answer

Neither A nor B are correct.

Question 2

An agreement between the insured and the insurer that certain conditions will be met is which of the following?

Accepted Answer

Warranty

Answer

Misrepresentation

Answer

Estoppel

Answer

Certificate of insurance

Question 3

Which one of these statements about the Fair Credit Reporting Act is not correct?

Accepted Answer

Prenotification is required for both regular and investigative reports.

Answer

Post notification is required when insurance coverage is denied because of adverse information in a credit report.

Answer

An agent who obtains information from a reporting agency under false pretenses can be sent to jail and fined.

Answer

Consumers have the right to challenge information in investigative reports and to have incorrect information removed.

Question 4

The insured's policy is nearing the expiration date. The insurance company doesn't want to continue the insured's coverage, so it sends the insured a notice that the policy will not continue beyond the expiration date of the policy. This is considered which of the following?

Accepted Answer

Nonrenewal

Answer

Flat cancellation

Answer

Pro rata cancellation

Answer

Unearned renewal

Question 5

Walt and Joanna are co-owners of a bagel shop. Both Walt and Joanna are listed in the declarations of the policy that insures the business, with Joanna's name appearing first. The declarations also list First State Bank, which has an outstanding loan on the business. Who is considered a named insured on the policy?

Accepted Answer

Both Walt and Joanna

Answer

Walt only

Answer

Joanna only

Answer

First State Bank

Question 6

Renata's home is demolished in a fire that started when a neighbor misdirected the fireworks he set off to celebrate the Fourth of July. Renata's insurance company pays her for the damage, and then files suit against the neighbor to recover the amount it paid for the loss. This is an example of the application of what policy condition?

Accepted Answer

Subrogation

Answer

Liberalization

Answer

Abandonment

Answer

Salvage

Question 7

A heavy snowfall causes the roof over Amaya's living room to collapse. The insurance company asks her to move her belongings out of the living room to protect them from further damage and put a tarp over the roof until it can be repaired. It also asks her to complete a proof of loss form listing the items that were damaged. This is an example of the application of what policy condition?

Accepted Answer

Duties after loss

Answer

Appraisal

Answer

Arbitration

Answer

Subrogation

Question 8

Three policies, totaling $300,000 in coverage, apply to an $80,000 loss. Policy A's limit of insurance is $100,000, policy B's limit is $50,000, and policy C's limit is $150,000. Use the pro rata method to determine how much policy C would pay for this loss.

Accepted Answer

$40,000

Answer

$26,640

Answer

$13.28

Answer

$60,000

Question 9

Which of the following would not normally be excluded under a property insurance contract?

Accepted Answer

Losses to personal property

Answer

Catastrophic losses

Answer

Nonaccidental losses

Answer

Extra-hazardous perils

Question 10

An indirect loss is which of the following?

Accepted Answer

A type of loss that results from a direct loss

Answer

The cause of a direct loss

Answer

An insignificant property loss

Answer

Not a type of property loss