Licensing Exam Reviewer Direction: Choose the correct answer. Indicate |your answer my marking the parenthesis on your answer sheet with an surer and the| insured, 4. A term which refers to relative division of isk between the depending upon the relative amount of the policy ang the actual value of the|property insured and takes effect only when the actual oss is paftial and less than the amoynt of the policy is. Reinsurance Double insurance a. b. Co-insurance « d. Over insurance 2. Explosion to be recoverable es extraneous risk written |p conjunction with the standard fire policy must be: Explosion from pressure vessels. a b. Any explosion cc. Chemical expiosion, as in the case of gas used for lighting or domestic hurposes 4. None of the above. 3. With respect to Co-insurance Average or Contributjon Clause which of the | following statements are true: The insured if never penalized. ‘The insured is always penalized Under some circumstances, the insured is penalized eeo® None of the above.4. According to the term of the “Loss Clause” (which is} contained in the coverage form after a attached to a Fire Policy} must an Insured request the reipstatement of his insurancg loss has occurred? a. Not until the premises have been restored. b. Yes, ifthe loss exceed 5% c. No, the coverage is not reduced by the occurrgnce (or payment) of loss 4. No, the insurance company will reinstate the cbverage automatically 5. Why must an insured heve an insurable interest in the prdperty insured? a. To obtain a measurement of the insured’s los b. Guard against moral hazard ©. Prevent wagering i 4. Allof the above \ | 6. Under the insurance Law, a fund was creatéd to be used in the payment of allowed claims against an insurance company authorized (o transact Yusiness the Philippines, rpmalning unpaid by reason of insolvency of such company. The fupd is the: Security fund i Mutual fund Charitable trust fund ee ge Variabie contract fund 7. Under the provision of the insurance Code, a cancellation notice to the insured from the insurer, to be effective, shell be based on the occurrgnce of any of the following} except Non-payment of premium i Verbal notice to the Insured | Discovery of fraud of material misrepresentation Physical changes in the property insured making the property uninsuratle8. InHealth insurance, Total Disability is taken to mean 9. An insurable Interest exists in the following instances. L 40. An insured property being shipped may be stationary t a. A complete inability of the Insured to engape in his specified on the policy occupation for p period | b. Inability to engage in any gainful occupation for which he is fitteq by the education and taining Te insured is notable to perform any gainful pocupation All of the above In the love and affection of persons related by blood 97 by law. Ifa person Is interested In the well-belng of another Ferson. Ifa person is interested in buying insurance on another person. Ika person hes an aconomic intrest in the insuge though he Is not relattd tothe insured i a. ttand itt b. tandiv cc. bliland iv d. iii, tiland v property will eventually continue on its way to its destination Insurance is known as: 41. kind of insurance that protects the insurediagainst contract to which he is @ party Is a. F.0.8. b. CLE. ¢. Onconsignment 4d. In due course of transit a. Disability insurance. b. Cooperative insurance. c. Excess insurance. d. Guaranty insurance. mporarily at a certain location. The The kind of shipment in loss due to the non-perfotmance of12. Generally, Fidelity Bonds are issued to become effective as of a given date for A continuous term Specified term | ‘term of employment | eaegD Concealment 1 13. All of the following are true, except 2. A sweet bond cannot be made @ Substitute fo} an insurance policy as cower for a motor vehicle under CMVLL | b. A Certificate of cover issued to an operator motor vehicle may serve|as proof of coverage. | c. A Cariificate of cover can be presented to) government agents in charge of enforcing traffic laws, é. Certificate of cover may be issued in lieu of a pertificate of insurance. 44. A misrepresentation is not material unless it led the inslrance company to Issue Foverage that would not have been issued if the true facts had been known, This statement is a. Valid only if there was 2 witness b. False c. True 4d. False Wisropresentation is always material 415. Under the fiability feature of an insurance policy, the term “upper limit” means a, Extent of liability for any accident involving mbre than one person b. Extent of fiability for one person injured or killed in an accident c. Amount the company will pay for property deinage. d. Amount the company will pay for property damage and medical cover146, With respect to the standard Fire Policy the term "Vacanty' means Unfurnished and not lived in Furmished but not lived in Lived in but not furnished | None of the above aeoD 17. Which of the following perils are not covered under the 48. In Fidelity of Surety Bonds the word “indemnity’ refers a. Rebellion b. Civil War cc, Enemy Attack 4. Allof the above i An agreement to protect both principal and a. b. An agreement to protect the surety | ©. An agreement to protect the principal 4 An agreement to protect the obliges tandard Fire Policy blige 419. The insurance law specifically prohibits misreptesentatjon by agents with regard the following matters ‘The terms benefits or advantages of any policy The dividends to be paid by the insurance company The financial condition of any company ‘The dividends previously paid by the insurance company a. tand tl b. i,ilang il at 4 None of the above which of20. Losses or damages due to consequences of civil war, Febelion, insurrection or ql strike are covered by: a. Institute Cargo Clause ~ strike, riots | civil commotion b. Institute War Clause c. Institute All Risk (AR) 6. None of the above 24. Which of the following siatements in Marine Insurance on “abandonment” is false? fa. Its an act of the insured which after a corfstructive total loss, he deglares the relinguishment to the insurer of his interest in| the thing insured b. It can be partial or conditional Its equivalent to a transfer by the insured of his interest in the thing inspred It can be susiained only upon cause specified in the notice of cme 22. A passenger, under the LTO insurance i ‘a. Is always a fare-paying person being trarfsported and conveyed by a motor vehicle for transportation of passenger compensation b. Need not necessarily be a fare-paying passenger Combination of A and B 4. None of the above 23. Jettison, in Marine Insurance a, Includes every wrongful act wilfully committed by the master or cfew to the prejudice of the owner b. Refers to the temporary detainment of a with a view to ultimate felease Gc. Refers to throwing overboard of cargo or part of @ vessel's equipment in order to relieve a vessel when it is in peril 6. None of the above24, An insuring agroement: a. Defines the liability | Specifies how much the insured will receive ¢. Defings the condition under which benefits wil limitation i 4. Binds the Insurance company tothe Fisk i 25. Under the Compulsory Motor Vehicle Insurance, the ba; insurance required for passenger liability is: a, Horse power ». Displacement capacity c. Number of passenger i d. Unladen weight 26. Why is the application for insurance important? 2. Iigives the company information for the sale o} b. Because it gives the company information on c. Itis the easiest way to get the applicant to sig d. Because the company accepts or rejects the in the application 27. 1n a court action to regain possession of his: personal known as: a. Attachment bone b. Seizure bond c. Replevin bond d. Requisition bond Insurance at a later date up for coverage pplicants based on the int property, the plaintiff file ther prospects in the famil lbe paid subject to exclusigns and is for determining the anjount of mation a bond28. Under the average clause of the fire policy, the insured a, Shall be paid the full value of his loss b. Is not bound to insure the property c. Shall be considered a self-insurer of the unin d. None of the above 29. The provision in @ Standerd Fire Policy that ~ expect policy there is no other insurance on the property here| will render the policy nuil and void known as: Controi of the property clause. Average clause Waiver of premium | Other insurance clause ' 30. A contract signed and executed by a third party in fav isured portion i 15 may be stated on the face of this yy covered — breach of thig condition of a bonding company By virtue of Which said party binds himself to indemnify the company against loss which may|by reason of the issuance of the bond is called: Contractor's bond Fiduciary bond i Surety bond Third party indemnity agreement aegseF if the statement Is Under column A of your answer sheet, write T If the statement is TI UE and 31, Comprehensive insurance issued to cover private houses and household under fre polcy 's otherwise known as a package policy. 432. The value of the ship is its value at the beginning of the risk including all articles or ¢hanges which add to Its permanent value. 33. There is reinsurance when the same risicis insured by several insurers repeatedly i to the same subject and interest 5 respect 34. The definition of ‘insufed" as used in the auto liabilty policy includes as insbred the employees of 2 garage who may be operating the automobile with permission of insured, 35, Death or bodily in} of such employment is not compensabie under a motor policy. 36. Suretyship ©: obligation or undertaking 37. All risks policies include all perils. ry to any parson in the employ of thelinsured arising of and in t whenever one party guarantees performance by another pal e name je course ty of an 438. I the insured property is more than % destroyed, it may be abandoned to the company a8 2 total loss, according to the standard fire policy. arronty in Marine Insurance is stipulation forming part of the policy as to condition or circumstance relating to the risk. 40, more than 2/3 of the goods value is actually lost, the pwner has the option to ab} consider it s total loss. ome fact, Jandon andWrite the latter of the word(s) in Golumn|B which best relates with the word(s) in Column A. Write your answer ip the Column A of your answer sheet. Form of coverage which primarily concerned with J | a. Insurance act the protection of goods in transit and the means of transportation b. Particular average 42. Insurance effected in property either on) one or several companiss to an amoul or in aggregat: is the actual cash value of the insured’s interest in the property. nich separately 6. Repleven bond \ d. Over ~ insurance 43. Indicate that the title will pass form the shipper's to the consignee at the specified point in transit. e. Cover notes 44. Exist when the same isk js insured by, several, ingurers. separately in respect to the same subject and interest. f, Marine insurance 45. Statement by the insurer the truth of) which g. Warranty becomes a condition of the validity of the policy. 46. Written evidence of provisional insurance contracts Which are to be issued only with regular fire policies. h. Injunction bond |/i. Double insurance 47. Agreement emong three parties whereby 2 surety company guarantees the performance by an individual of an obligation or undertaking in favor of the third party. j. Surety bond | k. Co~ insurance 48. Bond to prevent an individual from committing a specific aot that will injure him such as| selling @ business, 49. A provision which specifies that the insurance company will pay only @ part of a loss and requires poliey holder to pay the balance himself Loss of voyage 50. ‘Term used in marine insurance which means th partial loss.