exam 5

A producer committed a violated the insurance code. The act she committed was so uncommon that no specific penalty is attached to it. In this case, what is the maximum fine that could be leveled?

$5,000

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

The authority granted to an agent through the agent's contract is referred to as

Express authority.

All of the following violations may result in an agent's imprisonment EXCEPT

Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction.

Circulating deceptive sales material to the public is what type of Unfair Trade Practice?

False advertising

The HO-3 homeowners policy provides

Open peril coverage on the dwelling and broad form coverage on personal property.

The Federal Fair Credit Reporting Act

Regulates consumer reports.

Under a dwelling policy, which of the following is NOT a factor in determining a loss?

The amount negotiated by the insured

In insurance, an offer is usually made when

The completed application is submitted.

All of the following are characteristics of the dwelling policy EXCEPT

The dwelling must be owner-occupied

A commercial package policy (CPP) allows the insured to select the coverage needed and customize the policy to meet the needs of the insured's business. In a CPP, the business owner may select from all of the following types of coverage EXCEPT

Workers compensation coverage

The property condition that precludes the insured from simply turning over damaged property to the insurer and claiming a total loss is called

Abandonment.

Which of these is defined as the maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claims that may be made or the number of accidents that may occur?

Aggregate limit of liability

An insured's business is damaged because of a fire, and he is forced to close the business temporarily for repairs. As a result, the insured lost income. What type of loss is this?

Consequential

Under the commercial property coverage program, the basic causes of loss form insures against loss caused by

Sprinkler leakage.