IIC Principles and Practice of Insurance - C11 Exam Practice Test

Which insurance industry impact is an example of a surety?

Which financial outcome would be expected when engaging in a speculative risk?

Dominika's house sustains a fire resulting in a $500,000 total loss to the house and contents. Some pieces of furniture are salvageable and valued at $4,000 by the insurer. Dominika chooses to keep these items for her next home. Dominika's policy has a guaranteed replacement cost clause with a limit of $500,000 and a deductible of $1,000. What settlement amount will Dominika recover from the loss?

Deanna owns a house worth $1,000,000 but chooses to insure it for $500,000. What clause might prevent her from being fully reimbursed in the event of a loss?

When one reinsurer cedes part of its business to another reinsurer, what is the second reinsurer called?

Robin is employed as a loss adjuster handling a large residential fire claim. Which is NOT one of their responsibilities?

Which factor could explain poorer performance of renewal clients as opposed to new business clients?

Why does the need for liability insurance arise?

Jack is a first-time homeowner. How can he mitigate his risk?