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1. An underwriter receives a submission for a restaurant. The base rate is $0.80 per $100. Due to the client's loss history, the underwriter decides on a $0.15 loading. What premium would the underwriter charge for a building valuation of $200,000?
A) $1,900
B) $1,750
C) $1,300
D) $1,600
2. A commercial general liability policy has an aggregate limit of $1,000,000. During the current term, the insurer has already paid for three liability claims: one for $100,000, a second for $500,000, and a third for
$300,000. How much will the insurer pay if a new claim of $300,000 is submitted?
A) $300,000
B) $1,000,000
C) $0
D) $100,000
3. Briefly discuss the liability exposures that arise from the ownership of animals.
4. In law, what does the term prescription mean?
A) Transferring of the rights for action against the responsible party to the insurer
B) Limited time after which a cause of action ceases
C) Guidelines relating to the acceptability of a class of risk
D) Committing to an automatic renewal process
5. What is an agent's primary duty to the insurer?
A) Provide the insurer with all relevant material facts
B) Provide the insurer with the insured's finances upon request
C) Bind the policy with the insurer they have the best relationship with
D) Quote the client with maximum amounts of liability coverage
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: Only visible for members | Question # 4 Answer: B | Question # 5 Answer: A |
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