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IIC Principles and Practice of Insurance Sample Questions:
1. Why would a policyholder use an intermediary?
A) They help to identify clients' insurance needs
B) They have unlimited liability
C) They represent all insurers
D) They make reinsurance arrangements for clients
2. Which statement describes a primary function of a telephone adjuster?
A) Process all paperwork for independent examiners
B) Authorize repairs suggested by the staff adjuster
C) Process a large volume of claims
D) Act as a liaison between the intermediary and the insurer
3. With respect to an insurance contract, what is the best example ofconsideration?
A) Yasmin offers to sell her dog for $500 but Paula refuses
B) Martin is returning a shirt he purchased online for $35 because he found it cheaper elsewhere
C) Calvin wants to start a tutoring business and may charge $40 per hour
D) Jennifer agrees to sell a $20,000 painting for $10,000 to her friend Shania
4. Which type of clause grants additional protection to the entity that has a registered interest on real property?
A) Bailee clause
B) Mortgage clause
C) Lienholder clause
D) Additional Interest clause
5. What type of wording is written on a custom basis for a specific situation?
A) Manuscript
B) Treaty
C) Standard
D) Chattel
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: A |
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