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ABA CTFA Practice Test - Questions Answers, Page 46

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Which of the following id NOT the kind of Insurance?

A.
Business policies
A.
Business policies
Answers
B.
fire and alliance lines
B.
fire and alliance lines
Answers
C.
inland marine
C.
inland marine
Answers
D.
professional liability
D.
professional liability
Answers
Suggested answer: A

A package of coverage including most property and liability coverage except workers' compensation, automobile insurance and surely bonds is called:

A.
Single peril
A.
Single peril
Answers
B.
Multiple peril
B.
Multiple peril
Answers
C.
Property lines
C.
Property lines
Answers
D.
professional Property
D.
professional Property
Answers
Suggested answer: B

Fidelity bonds cover employees against dishonest acts by employees.

A.
True
A.
True
Answers
B.
False
B.
False
Answers
Suggested answer: A

What provide for monetary compensation to third parties for failure by the insured to perform specifically covered acts with in a state period?

A.
Worker compensation pools
A.
Worker compensation pools
Answers
B.
Multiple perils
B.
Multiple perils
Answers
C.
Surety bonds
C.
Surety bonds
Answers
D.
Inter-insurance act
D.
Inter-insurance act
Answers
Suggested answer: C

Excess liability:

A.
covers the insured against the loss in access of an actual amount, but only for profits as covered and defined in a predetermined planning.
A.
covers the insured against the loss in access of an actual amount, but only for profits as covered and defined in a predetermined planning.
Answers
B.
covers the insured against the loss in access of an actual amount, but only for profits as covered and defined in an underlying policy.
B.
covers the insured against the loss in access of an actual amount, but only for profits as covered and defined in an underlying policy.
Answers
C.
covers all uninsured against the gain in access of a stated amount, but only for losses as covered and defined in an underlying policy.
C.
covers all uninsured against the gain in access of a stated amount, but only for losses as covered and defined in an underlying policy.
Answers
D.
covers the insured against the loss in access of a stated amount, but only for losses as covered and defined in an underlying policy.
D.
covers the insured against the loss in access of a stated amount, but only for losses as covered and defined in an underlying policy.
Answers
Suggested answer: D

Coverage of risks that do not fit normal underwriting patterns and that are not commensurate with standard rates is normally refers to as:

A.
Surplus lines
A.
Surplus lines
Answers
B.
Commercial lines
B.
Commercial lines
Answers
C.
Risk lines
C.
Risk lines
Answers
D.
Standardized lines
D.
Standardized lines
Answers
Suggested answer: A

In which plan all activities writing automobile insurance in a state are allocated a share of the involuntary business on an equitable basis?

A.
Automobile equitability
A.
Automobile equitability
Answers
B.
Automobile insurance
B.
Automobile insurance
Answers
C.
Automobile assurance
C.
Automobile assurance
Answers
D.
None of the above
D.
None of the above
Answers
Suggested answer: B

Mutual entities, reciprocal or inter-insurance exchanges, public entity risk pools are all principal kinds of:

A.
Property and expense insurance organizations
A.
Property and expense insurance organizations
Answers
B.
Feasibility and performance assurance organizations
B.
Feasibility and performance assurance organizations
Answers
C.
Property and liability insurance organizations
C.
Property and liability insurance organizations
Answers
D.
Building and asset related organizations
D.
Building and asset related organizations
Answers
Suggested answer: C

The organizations in which the ownership and control of operations are vested in the policyholders are known as:

A.
Private entities
A.
Private entities
Answers
B.
Public entities
B.
Public entities
Answers
C.
Reciprocal entities
C.
Reciprocal entities
Answers
D.
Mutual entities
D.
Mutual entities
Answers
Suggested answer: D

Which of the following is NOT the kind of public entity risk pools?

A.
Risk-avoiding pools
A.
Risk-avoiding pools
Answers
B.
Insurance-purchasing pools
B.
Insurance-purchasing pools
Answers
C.
Banking pools
C.
Banking pools
Answers
D.
Claim-serving pools
D.
Claim-serving pools
Answers
Suggested answer: A
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