FREE RIBO Customer Service and Sales Skills Test 3

Question 1

If a company cancels an auto policy mid-term, the refund will be made on:

Accepted Answer

Pro-rata basis

Answer

Short rate basis

Answer

Retroactive basis

Answer

Coinsurance basis

Question 2

What is the term used to describe terminating the insurance relationship at the end of the policy period?

Accepted Answer

Nonrenewal

Answer

Cancellation

Answer

Separation

Answer

Exclusion

Question 3

Which is the best example of an indirect loss?

Accepted Answer

Loss of use

Answer

Sequential loss

Answer

Liability loss

Answer

Employee theft

Question 4

Which is a two-party contract?

Accepted Answer

Property

Answer

Casualty

Answer

Liability

Answer

Auto

Question 5

Insurance contracts offset:

Accepted Answer

Pure risk

Answer

Speculative risk

Answer

Gambling

Answer

Created risk

Question 6

Which of the following is a third party contract?

Accepted Answer

Casualty

Answer

Property

Answer

Earthquake

Answer

Theft

Question 7

Risk is best defined as:

Accepted Answer

Chance of loss

Answer

Certainty of loss

Answer

Financial loss

Answer

Sentimental loss

Question 8

Any ambiguities in a p&c policy will be resolved in favor of the policy owner because the policy is a:

Accepted Answer

Contract of adhesion

Answer

Conditional contract

Answer

Unilateral contract

Answer

Aleatory contract

Question 9

Which of the following is NOT true regarding consideration ina p&c policy?

Accepted Answer

Part of the company's consideration is the payment of a claim.

Answer

Part of the insured's consideration is the premium.

Answer

Part of the insured's consideration are the statements on the application.

Answer

Part of the company's consideration is the promises in the policy.

Question 10

A binder is an:

Accepted Answer

Interim insuring agreement

Answer

Application

Answer

Counteroffer

Answer

Endorsement