Exam Fx Property

The businessowners policy (BOP) extension coverage form for personal property off-premises is limited to

10,000

The businessowners liability coverage form will cover medical expenses incurred and reported within what maximum time period after the accident?

1year

Which of the following would be required to be licensed as an insurance producer?

A salaried employee who advertises and solicits group insurance

What guarantees that the information explained in the insurance contract is true?

A warranty

The commercial crime coverage that would cover losses resulting from the theft of money, securities and other property by employees is

Employee theft.

Restoring an insured financially after a claim is known as

Indemnity

A homeowners insurance policy that has been in effect for more than 45 days can be cancelled by the insurer for any of the following reasons EXCEPT

Insured's filing a first claim against the policy

Which of the following contract elements best describes insurance written in support of public policy?

Legal purpose

An agent in another state wants to become an agent in Oklahoma. The other state gives the same privileges to Oklahoma agents wanting to be licensed in that state as it does its own agents. Oklahoma therefore extends the privileges of its agents to the prospective agent of the other state. What is this called?

Reciprocity

An insured has a personal umbrella witha $2,000 self-insured retention (SIR). Assuming no other policy is involved, how much would the umbrella pay after a $12.000 personal injury liability claim?

S10,000

In contrasting stock insurers with mutual insurers, which statement is true?

Stock insurers are owned by the shareholders and issue nonparticipating policies.

An agent tells an insured that if he replaces his current insurance policy with a newer one, his dividends will be higher and his premiums will be slightly lower. The policy, however, would not offer either one of these things. What type of misrepresentation is being committed?

Twisting

Which of the following perils is NOT covered the DP-2?

Damage to pets, birds, or fish

Which of the following describes an insurer's responsibility for payment under a policy, as stated in the common policy provisions?

Limits of liability

Which of the following would be added for coverage under a property policy by an endorsement?

Additional insureds

Under the Garment Contractor Floater of an Inland Marine policy, coverage while the property is in transit between the insured and the subcontractor is usually written on which basis?

All-risk

Homeland Housing Corp holds a mortgage on a property that John and Carol Thomas purchased. John and Carol have a Homeowners policy with Home Protection Insurance which has a mortgagee clause naming Homeland as a loss payee. If John and Carol suffer a fire to their home

The Thomases and Homeland will be considered co-claimants and receive loss reimbursement from Home Protection Insurance

To determine the actual cash value of an insured property, what must be deducted from the current replacement cost?

Depreciated value

Any person continuing to act as if licensed after losing a license will be subject to which of the following punishments

Felony, $5,000 fine, up to 5 years in jail

Which of the following provisions is usually found in homeowners policies and provides a replacement cost settlement to policyholders who carry adequate insurance?

Insurance to value

A structure may be eligible for coverage under the National Flood Insurance Program if it meets all of the following requirements EXCEPT

Is entirely over water

How does insurance distribute the financial consequences of individual losses?

It transfers the risk to all persons insured

An applicant for property insurance owns a building in which combustible materials are carelessly stored in the furnace room. From an underwriting standpoint, this risk would likely be considered a

Morale hazard

How is the premium paid for the businessowners policy?

One indivisible premium

Which statement best describes agreement as it relates to insurance contracts?

One party accepts the exact terms of the other party's offer

Which of the following would be covered under a building and personal property coverage form?

Outdoor sign

What is a bailee responsible for?

Property of others in his custody

Although a businessowners policy (BOP) will cover fire damage legal liability, which of the following statements is true?

The general aggregate does not apply to fire damage legal liability

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

$2,500

An important fact about the financial status of an insurer was deliberately withheld, Which of the following terms best describes this action?

False financial statement

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

Personal

An insured's diner suffered a fire loss. In addition to the damage caused by the fire, the floor covering had to be replaced because of the water damage. It took 4 weeks for the repairs to be completed. The insured was without income for that period of time. The insured's policy includes both direct and indirect loss coverage. What part of the loss would be paid as indirect loss?

The loss of income for the time the diner was closed

Unless additional coverages are added to the businessowners policy (BOP), the maximum amount of coverage on an outdoor sign attached to a building is limited to

$1.000,

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

How soon does the period of restoration for business income coverage begin after the direct loss?

72 hours

What policy would a business owner whose business fills scuba tanks most likely need to insure unfired pressure vessels and compressors?

Equipment breakdown

What sublimit in a liability policy sets the maximum amount that will be paid for all claims arising from a single accident?

Per occurrence

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

90 days

Which of the following statements does NOT describe endorsements?

Endorsements may only add coverage to a current policy, not remove.

An example of an alien insurer doing business in this state is one formed under the laws of

Mexico

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

A home is insured for $200,000 under an HO-3. Last week, the owner purchased a new home and began to move his personal property to the new residence. Last night, vandals did $8,000 of damage to the property that had been moved to his new residence. Disregarding any deductible, how much will the HO-3 pay?

$8.000

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

A house insured with a homeowners policy has been blown off its foundation by a tornado, It must be demolished and removed so a replacement house can be built. Which of the following is true about debris removal?

An additional 15% of the policy limit may be pald for debris removal,

An agent receives her producer's license in Oklahoma, and after 3 months, decides to move to Texas. What action must the agent perform?

Deliver the insurance license to the Commissioner

Loss valuation is best described as the process of

Determining the premium charged and the amount of insurance required on a specific property

Ifa fire erupts in the kitchen and spreads to the upstairs bedroom, resulting in the destruction of furniture, what type of loss has occurred?

Direct

Businessowners liability coverage automatically includes all of the following liability coverages EXCEPT

Pollution

To have insurable interest in the person or property covered by a property insurance policy, which of the following potential risks must the policyowner face?

Financial loss

Which homeowners form provides open peril coverage for dwelling (Coverage A) and contents (Coverage C)?

HO-5

Under Business Personal Property Limit-Seasonal Increase, if no percentage is specified in the declarations, seasonal fluctuations will automatically increase the limit for business personal property by

25%

What part of the insurance contract describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured?

Insuring agreement

Which of the following statements is true regarding advertising that the Insurance Guaranty Association would ensure payment of benefits in the event of insurer insolvency?

It is an unfair trade practice to mention the Association in advertisements.

John had a disagreement with his insurer on the value of his damaged property. After making a written demand, both John and the insurer each selected an appraiser. The appraisers then agreed on a fair value without having to select an umpire. What condition did John use?

Appraisal