Exam Fx Casualty

An insured was involved in an accident that was caused by a tire blowing out. The insured was severely injured and incurred medical expenses of $100,000. The insured brought a recovery action against the manufacturers of the auto and the tires. The court held that the tire was the cause of the accident. Who is required to pay for this loss?

Manufacturer of the tire

The other states' insurance section of a workers compensation policy provides coverage

Only for those other states listed in the policy,

In reference to insurable interest, which of the following is NOT an element of insurable risk?

Personal

The garage coverage form is written to cover the insurance needs of an insured in the business of selling, repairing, servicing or storing automobiles. Which of the following coverages are not included in a garage policy?

Physical damage on a customer's auto

The declarations section in a homeowners policy provides all of the following information EXCEPT

Policy exclusions

The commercial general liability Coverage Part A- Bodily Injury and Property Damage provides coverage for which of the following?

Premises

All of the following are true regarding the federal Fair Credit Reporting Act EXCEPT

Reports may be sent to anyone who requests one.

For which of the following types of employers would workers compensation coverage be mandatory?

Small employers

Which of the following is NOT a classification of a hazard?

Speculative

Coverage B- Personal and Advertising Injury Liability responds to claims arising from

Suits alleging infringement of a copyright

Which of the following is FALSE concerning liability coverage of a business auto policy?

The company will reimburse the insured for all loss of earnings

An insured was having a new home built. While digging the footings for the foundation, the contractor struck a solid rock formation and found that was necessary to blast the formation in order to remove the rocks. The force of the blast broke several windows and some chinaware in a neighbor's home several blocks away. Who pays for this damage?

The contractor

What types of injuries could incur additional penalties and/or increased benefits paid by the employer?

The employer's willful failure to provide required safety goggles

All of the following are considerations in determining which state's law applies when a worker is required to travel into another state and is injured while working in the other state EXCEPT

The insurer's chartered location or domicile

If an insurance policy has the additional coverage provision, how does it affect the policy premium?

There is no additional premium

When Symbol 7 is provided, which of the following statements is true with regards to newly acquired autos?

They are covered if they are used to replace previously owned autos with that coverage

What is an insured contract?

Those contracts that are automatically covered under the exposure of premises coverage in a general liability insurance contract

When does the insurer's duty to defend a suit or claim end in a commercial general liability policy?

When loss payments equal the applicable limit of insurance

If a car is stolen and left in a snow bank, causing the radiator to freeze and sustain heavy damage, is the damage covered by the auto policy?

Yes. freezing exciusion is removed if the car is stolen

What is the maximum amount an employer must pay for the funeral expenses of a deceased employee covered under workers compensation insurance?

$10,000

If an individual willfully violates provisions of the Fair Credit Reporting Act, what is the maximum civil penalty?

$2,500

Using the pro rata method, if a property is covered by Company A for $20,000 and Company B covers the same property for $40,000, how much will Company A pay on a $24,000 loss?

$8,000

Business auto coverages apply only to those autos that are identified as covered autos in the declarations by entry of the appropriate numerical symbol. Which symbol affords the broadest coverage?

1

How much notice of a hearing concerning unfair trade practices must the Commissioner give?

10 days

A licensed agent writes an insurance policy on behalf of an insurer to which the agent is not appointed. If any commissions are to be paid to the agent, within how many days must the agent be appointed to the insurer?

15

An insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request?

3 days

Within how many days must a licensee inform the Commissioner of any change in the licensee's address?

30

What is the maximum amount of time during which an employee who has a temporary partial disability may receive workers compensation benefits?

52 weeks

Once a binder is issued, it can last no longer than

90 days

Compulsory automobile financial responsibility laws may be satisfied in all of the following ways, EXCEPT

A certificate ot passing a safe-driver's education course

For there to be negligent liability, all of the following must exist EXCEPT

A reasonable expectation that the act may cause injury or damage

All of the following are excluded from coverage under the Workers Compensation Act EXCEPT

A worker for a farm whose total payroll is $250.000,

Which of the following statements is NOT true of a commercial umbrella liability policy?

It would automatically cover all losses as they occur.

Section Ill of the business auto policy provides physical damage coverage. All of the following are physical damages that may be selected coverages EXCEPT

Limited peril coverage.

The obligation to compensate injured workers without regard to fault or negligence is known as

Absolute liability.

An insured has a maximum limit of coverage available under her liability policy during a policy year, regardless of the number of claims made or the number of accidents Her limits are restored at the policy anniversary. What type of limit does this insured have?

Aggregate

Which of the following is NOT an example of the company's location of incorporation?

Authorized

A personal umbrella policy may act as excess over any of the following insurance coverage policies EXCEPT

Auto collision coverage

Which of the following exposures is not covered under the garage liability coverage form?

Contractual liability

The supplementary payments section of the commercial general liability policy would cover

Court costs assessed against the insured in a suit

Other-than-collision would cover financial losses due to

Damage to an insured's car caused by wind or hail

Which of the following would NOT generally be included in the supplementary payments portion of a liability policy?

Damage to property owned by the insured

A sworn statement must usually be furnished by the insured to an insurer, and must include what information about the occurrence and the amount of indemnity claimed?

Date and description

Which of the following types of workers will be covered by Workers Compensation insurance?

Employees of a private employer whose annual salary exceeds $100,000.

Which of the following injuries may be covered under Coverage C- Medical Payments of a commercial general liability policy?

Injuries to a member of the general public that occurs on premises