TRIP Insurance Principles and Coverages

Question 1

What is the principle of indemnity in insurance?

Accepted Answer

To restore the insured to their pre-loss position

Answer

To reward the policyholder

Answer

To create investment opportunities

Answer

To pay dividends

Question 2

Which type of insurance covers bodily injury and property damage caused by a vehicle?

Accepted Answer

Auto liability insurance

Answer

Cargo insurance

Answer

Property insurance

Answer

Fleet maintenance coverage

Question 3

What is subrogation in the context of insurance?

Accepted Answer

Insurer takes legal action against a third party

Answer

Sharing premiums

Answer

Exempting deductibles

Answer

Cancelling the policy

Question 4

Which insurance principle requires full disclosure of all material facts?

Accepted Answer

Utmost good faith

Answer

Insurable interest

Answer

Contribution

Answer

Waiver and estoppel

Question 5

What is typically covered under motor truck cargo insurance?

Accepted Answer

Loss or damage to transported goods

Answer

Driver injury claims

Answer

Property damage to terminals

Answer

Fuel surcharge expenses

Question 6

What is a deductible in an insurance policy?

Accepted Answer

The out-of-pocket amount before coverage

Answer

The insurance premium

Answer

A co-payment percentage

Answer

A type of claim form