Sample Examination Questions

1. Before an insured can recover a loss under a fire insurance policy, it is necessary that:

a. the premium be paid.
b. the policy be countersigned.
c. an insurable interest exists.
d. the insured prove that fraud had not been committed.

2. Negligence is:

a. the failure to exercise the care that a reasonable person would take in a similar set of circumstances.
b. behaving in a manner expected of a reasonable and prudent person.
c. payment of insurance monies to a person injured by the insured persons.
d. exercising rights under an insurance policy to recover money paid to a third person.

Correct Answer: 1 (c) 2 (a)