casualty simulated exam misses

The initial binding period for new workers compensation coverage issued by the North Carolina Rate Bureau is

30 days When any such risk is called to the attention of the Bureau by receipt of an application with an estimated or deposit premium payment and it appears that the risk is in good faith entitled to such coverage, the Bureau will bind coverage for 30 days and will designate a member who must issue a standard workers' compensation policy of insurance that contains the usual and customary provisions found in those policies.

The minimum liability limits that can be written in the North Carolina Reinsurance Facility are

30/60/25 Policies issued by the Facility must provide the limits necessary to satisfy the financial responsibility requirements of North Carolina, which are $30,000 for bodily injury or death to any one person in any one accident, $60,000 for bodily injury or death to 2 or more persons in any one accident, and $25,000 for damage to property of others arising out of in any one occurrence. Higher limits may be made available to those risks who must comply with other state or federal laws.

After an insurance contract ends, the insurer must maintain records regarding the transaction for at least

5 years

The Commissioner must examine every domestic insurer at least once every

5 years

An automobile rate filing made by the North Carolina Rating Bureau is deemed to be approved after

50 days The Commissioner may disallow a rate filing by the Bureau with notice given within 50 days of the filing and set a date for a rate hearing. If no notice is given within 50 days, the rates are deemed approved.

If cargo is damaged short of destination, Lloyd's agent at an intermediate port may agree to sell at best price, with settlement based on the difference between insured value and net proceeds of the sale. This is considered

A salvage loss.

The North Carolina Motor Vehicle Reinsurance Facility was created to provide auto insurance for otherwise difficult to place risks. The facility is made up of

All insurers licensed to write auto liability insurance in the State.

Which of the following would be considered an insured under a business auto coverage form?

Anyone while using, with permission, a covered auto owned by the named insured An insurer may deviate from the rates promulgated by the Bureau if the insurer has filed the proposed deviation with the Bureau and the Commissioner, if the proposed deviation is based on sound actuarial principles, and if the proposed deviation is approved by the Commissioner.

Which of the following would NOT be covered under the liability section of a personal auto policy?

Bodily injury caused by the insured's negligence while driving a three-wheel all-terrain vehicle Vehicles with fewer than four wheels are not eligible for coverage under a PAP.

Which of the following is a mandatory part of an insurance policy that varies with each individual policy?

Declarations Because the declarations tell who, what, when and where, this information is different in each contract.

The American Institute's Hull Clause for the Return of Premium will apply if a vessel has been laid up in port not under repair, and not used for storage. The premium will be returned for

Each 30-day period.

An insured is involved in an auto accident in another state. The state has a financial responsibility law that specifies limits of liability higher than the limits shown in the declarations. What amount will the insured's policy pay?

Higher limits According to the out-of-state coverage provision in the personal auto policy (PAP), if the state or province has a financial responsibility law specifying limits of liability higher than the limits shown in the declarations, the insured's policy will provide the higher specified limits.

In accordance with American Institute Hull Clauses, a pro rata return of premium will be given for all the following reasons EXCEPT

If the policy is cancelled by the insured. If the policyholder cancels, a short rate refund is due.

Which of the following is NOT true if ownership changes, voluntary or otherwise?

If the vessel already has sailed from her loading port, automatic termination may be deferred until 15 days after arrival at final port of discharge.

All of the following are conditions commonly found in the insurance policy, EXCEPT

Insuring agreement Insuring agreement provides information on the policy's coverages. Conditions state the legal obligations and duties of the parties to the contract.

Which of the following policy provisions would automatically broaden coverage under a policy without requiring additional premium?

Liberalization The liberalization clause states that if an insurer changes a policy form to the benefit of the policyholder, all policies issued within a certain time before the change will be interpreted as if they had been changed, provided the change does not require additional premium.

What provision in a property policy applies when the insurer broadens coverage but does not increase the premium?

Liberalization clause The liberalization clause extends broader coverages to current policies if they do not affect the premium. A modifying endorsement is not required to add such coverage Liberalization The liberalization clause states that if an insurer changes a policy form to the benefit of the policyholder, all policies issued within a certain time before the change will be interpreted as if they had been changed, provided the change does not require additional premium.

When would UM coverage apply?

Only when the other party is legally liable but has no insurance If you are the at-fault driver, it does not matter if the other driver has insurance or not. Your uninsured motorist pays for your damages only if the at fault driver has no insurance.

Rental Reimbursement is only available if the policy includes which coverage?

Other Than Collision Coverage This endorsement is only available if the policy includes other than collision coverage. This endorsement will reimburse the insured for rental charges incurred because the covered auto is out of use because of a covered loss.

Who are the parties to a bond?

Principal, obligee, and guarantor The principal (obligor) makes a promise to perform for the obligee (insured); the guarantor (surety) pays loss to obligee if the promise is not kept.

What type of information would be found in a policy's insuring agreement?

Renewal dates An Insuring Agreement establishes the obligation of the insurance company to provide the insurance coverages as stated in the policy. The insuring agreement lists the parties to the contract, effective and renewal dates, the description of coverage provided, and perils (among other things). Location of premises, policy limits, supplemental representations, and insurer's name and address can all be found in the Declarations.

Which of the following symbols is available to an insured with vehicles subject to no-fault coverage?

Symbol 5 covers owned autos subject to no-fault coverage.

Burglary is defined as

Taking of property from within the premises leaving visible signs of forced entry.

When an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays

The excess over the self-insured retention. Retention is the equivalent of a deductible in property insurance.

In a marine policy, which of the following is referred to as the "amount insured hereunder"?

The limit of insurance

Which of the following statements is true concerning a bonded contractor who defaults on a construction performance contract?

The obligee may engage another contractor and then seek reimbursement from the surety. The bonding company would have to see that the job was completed and then seek recovery for its expenses from the bonded contractor (principal).

An insured relocated to another state for work. However, she still owns and insures a house in this state, but has had no one living in it for 3 months. She is also storing some furniture and clothes in the house. From an insurance standpoint, the insured's house is considered

Unoccupied. Unoccupancy refers to an insured structure in which no people have been living or working within the required period of time, but the structure contains contents.

Which of the following forms provides the broadest coverage under an employee theft coverage form?

blanket position Blanket position bond covers all employees in all positions on a per employee basis.

The crime of forced entry into the premises of another by a person or persons with felonious intent is defined as a

burglary

Bid bonds, payment bonds, and performance bonds are all examples of

contract bonds

All of the following are parts of a personal auto policy EXCEPT

garage coverage PAP is divided into 6 parts: Liability Coverage, Medical Payments Coverage, Uninsured Motorist Coverage, Coverage for Damage to Your Auto, Duties after an Accident or Loss, and General Provisions. Garage Coverage is a section in a commercial auto policy.

For insurance purposes, when an insured loses property to another because the person used violence or threat of violence to gain the property, this is defined as

robbery Robbery coverage requires that the insured property was taken by the use of violence or threat of violence.

Which of the following is a cancellation procedure in which the premium returned to the insured is NOT in direct proportion to the number of days remaining in the policy period?

short rate Short-rate cancellation is a cancellation procedure in which the premium returned to the insured is not in direct proportion to the number of days remaining in the policy period.

Employee theft bonds may be written as all of the following EXCEPT

single form Employee theft may be written as an individual, name schedule, position schedule, commercial blanket, or blanket position bond.