Exam FX Property & Causality

An insured has $5,000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000 for the first passenger, and $8,000 for the second passenger. How much will the policy pay under medical payments coverage?

$14,000 because The limit is not more than $5,000 per person, per accident.

What is the basic limit for costs incurred at the place a vehicle is disabled provided by the towing and labor costs endorsement?

$25

Split limit coverage

1st - Max bodily injury per person 2nd - Total bodily injury 3rd - Max property damage min coverage for PA 15/30/5

Rebates

A rebate is an illegal act which involves returning something of value to the client as an inducement to buy, such as the commission. Rebates are only allowed if specifically stated in the policy. Insurance dividends are not considered rebates as the IRS considers it as a return of overpaid premium.

Exposure

A unit of measure used to determine rates charged for insurance coverage.

Which of the following describes contributory negligence?

Any degree of negligence by the injured party may bar recovery.

Which bond is required by a court before allowing one to take the assets of another to satisfy a legal obligation?

Attachment bond

A professional who wants coverage for all liability exposures should purchase what form of liability insurance?

Commercial general and professional

What is the purpose of coinsurance clause found in property insurance policies?

Encourage the insured to insure the property closer to its full value

Which of the following statements regarding FAIR plans would most likely be true?

FAIR plans provide coverage exclusively to high-risk areas.

What type of compensatory damages will pay for pain and suffering and disfigurement?

General

Which of the following would be covered under the Broad Form (DP-2) policy's falling object peril?

Interior building damage if the exterior was damaged first

Which of the following statements concerning the builders risk coverage form is correct?

It may be written on a reporting form for the completed value of the structure.

Which of the following events causing financial loss to an insured would not be covered under Federal Crop Insurance?

Market Price decline

A business using its own trucks to move its own cargo would insure the cargo using

Motor truck cargo - owners form

ABC Insurance Company wishes to begin transacting business in PA. Before it can do so, it must do which of the following?

Obtain Cert. of Authority

A producer has become disabled. In order to keep his business going, what may the producer's designee do?

Obtain a temp license

The Commissioner of Insurance is placed in office by which means?

Placed by the Governor

All of the following statements concerning liability coverage are true EXCEPT

The policyholder can sue the insurer whether or not all conditions and provisions of the policy have been met.

Under Crime Coverage Form I - Lessees of Safe Deposit Boxes, securities are only covered in the event of

Theft

The cost of restoring farm records is an additional coverage offered under a farm policy. How much will the policy pay to restore the records?

Up tp 2k

What is not eligible for Personal Auto Policy (PAP)?

Vehicles under 4 wheels

How often must the Commissioner examine rating organizations?

once every 5 years

Under worker's compensation, the employer or insurance company must designate how many health care providers from which an injured employee may seek care?

6

When Mary decided to sue her neighbor for damages to her yard, she was told to get a bond that would guarantee she would be able to pay court costs and resulting damages if she loses the case. What kind of bond is this?

A Cost bond

What is excluded under the special form dwelling policy ?

Damage from domestic animals

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 days

Which of the following authorities monitories the financial strength of insurers?

Dept. of insurance

Which inland marine form would provide the best protection for a dry cleaning company against loss or damage to their customer's property while in the care, custody, and control of the dry cleaners?

Bailee

The state Insurance Code identifies all of the following as prohibited acts that can cause suspension, revocation or denial of an insurance producer license EXCEPT

Committing any misdemeanor

An insured business is damaged by a fire, and temporarily shut down for the repairs. As a result, the insured suffers loss of income. What type of loss is the loss of income ?

Consequential

Who created the National Do Not Call Registry?

The Federal Trade Commission (FTC) and the Federal Communications Commission (FCC) so that solicitation calls cannot be made by telemarketers.

Tort

a wrongful act or the violation of someone's' rights that leads to legal liability