FL Other Questions Quiz
Earl's businessowners policy has a liability and medical expenses limit of $300,000. Five customers are injured in an explosion. Each is awarded $150,000 in damages. How much will Earl's insurer pay in response to this claim? $750,000 $300,000 $150,000 $1,500,000
$300,000
What are the maximum limits of insurance a business owner can buy to cover the business structure and business contents under a regular flood insurance policy? $500,000 on the building and $500,000 on the contents $500,000 on the building and $100,000 on the contents $250,000 on the building and $100,000 on the contents $250,000 on the building and contents combined
$500,000 on the building and $500,000 on the contents
Lara's businessowners policy has a $500,000 limit on her office building. It includes the 8 percent per year inflation guard. Six months after the policy takes effect, the building is destroyed by fire. What is the most that Lara can recover? $520,000 $500,000 $625,000 $480,000
$520,000
After reading his homeowners insurance policy, Elijah realizes that he is paying for coverage that he does not need. Why might a dwelling policy be more suitable? The insured can delete earthquake coverage from a dwelling policy in a no-fault state. A dwelling policy provides only basic property insurance but permits the insured to add other coverages by endorsement. A dwelling policy automatically includes various coverages that are not automatically included in a homeowners policy. Unlike a homeowners policy, a dwelling policy does not expire.
A dwelling policy provides only basic property insurance but permits the insured to add other coverages by endorsement.
Salvador's business does not own any vehicles, but Salvador sometimes rents a van to make deliveries. Most deliveries are made by employees who use their own cars. How should Salvador's businessowners policy be modified to address his auto liability exposures? A hired auto and nonowned auto liability endorsement should be added. A hired auto liability endorsement alone should be added. The BOP automatically includes nonowned auto liability coverage, so no modification is needed. A nonowned auto liability endorsement alone should be added.
A hired auto and nonowned auto liability endorsement should be added.
A neighbor's child enters Alice's backyard through a broken fence and drowns in her swimming pool. Unable to pay her mortgage, Alice declares bankruptcy before the child's parents sue her. What is true about Alice's coverage under her homeowner's policy? Alice's insurer is released from liability because of Alice's bankruptcy. Alice's insurer must respond to the claim despite Alice's bankruptcy. The mortgage clause in Alice's policy protects the mortgage holder against any judgment. Alice's insurer must defend Alice but has no duty to pay a judgment against Alice.
Alice's insurer must respond to the claim despite Alice's bankruptcy.
Dairy products in Bette's ice cream shop would be destroyed if her freezers failed for more than a few hours. So Bette added the utility services-direct damage endorsement, scheduling overhead transmission lines, to her businessowners policy. When the shop loses electrical power due to a mechanical breakdown of the utility company's equipment: Bette's loss of business income will be covered, but her direct damage will not be covered Bette's direct damage will be covered, but her loss of business income will not be covered Bette's loss will not be covered because mechanical breakdown is not a covered peril Bette's direct damage and loss of business income will be covered
Bette's loss will not be covered because mechanical breakdown is not a covered peril
Before buying a motorcycle, Luciano has the miscellaneous type vehicle endorsement added to his personal auto policy (PAP), but he excludes the passenger hazard. How does this affect his coverage? Bodily injury to a passenger is covered to meet state requirements. Bodily injury to a passenger is excluded. There is no coverage for other's property on the motorcycle. Bodily injury to a passenger is excluded only when the passenger is in a sidecar.
Bodily injury to a passenger is excluded.
Under the hired auto and nonowned auto liability endorsement, which loss would the BOP cover Damage caused by a rented van Damage caused to a loaned truck Damage to a customer's motorcycle Damage to a borrowed auto
Damage to a customer's motorcycle
Which of the following federal legislation does not require that a privacy notice be provided to consumers? Federal Credit Reporting Act (FCRA) Health Insurance Portability and Accounting Act (HIPAA) Federal Employees' Compensation Act (FECA) Gramm-Leach-Bliley Act (GLBA)
Federal Employees' Compensation Act (FECA)
Jamie rents a two-bedroom apartment in a 12-unit apartment building where she lives with her two-year-old son. She wants to insure the property in their apartment. Which homeowners policy form, if any, is appropriate for her situation? HO 6 HO 2 None is suitable for Jamie because she does not own a home. HO 4
HO 2
Which of the following types of policies would typically NOT be issued by an insurer in the residual market? Personal auto liability Workers compensation Homeowners Property
Homeowners
Which of the following statements about Personal Injury Protection (PIP) insurance is correct? It covers the named insured only while riding in a motor vehicle. It covers the insured and his or her children and household. It does not cover drivers who borrow the insured's vehicle. It does not cover pedestrians.
It covers the insured and his or her children and household.
An imposter pretends to be Barbara, the president of a successful company, while engaging in scandalous activities. These activities attract media attention and threaten the firm's reputation. So Barbara spends $5,000 on advertisements to preserve this reputation. How will Barbara's businessowners policy address this expense? It covers this expense if the personal and advertising injury coverage endorsement is attached. It covers losses for personal and advertising injury. It covers this expense if the identity fraud expense coverage endorsement is attached. It includes additional coverage for identity fraud expense.
It covers this expense if the identity fraud expense coverage endorsement is attached.
Eduardo's Music Company sells a piano to Sheri through an online auction service and assures her that they will deliver it in good condition. However, while transporting the piano to Sheri's house, the moving van is in an accident that damages the piano. How will Eduardo's CGL policy respond to this loss? It covers the loss because the piano was in the possession of a third party. It covers the loss because it was a contractual liability. It does not cover the loss because of the exclusion for contractual liability. It covers the loss because the piano was not in Eduardo's care, custody, and control at the time of the loss.
It does not cover the loss because of the exclusion for contractual liability.
Barbara's car is in the dealer's garage when lightning strikes the building and ignites a fire that destroys it and its content. The dealer's garage policy includes garagekeepers coverage with the primary direct coverage option. How does the policy address the loss? Coverage does not apply because the dealer is not responsible for a lightning strike It will pay for the loss to Barbara's car and other customers' cars, subject to the policy's limit and deductible. It will pay any loss for which the dealer is legally liable to its customers. It will pay for any of Barbara's loss that her personal auto insurance does not cover.
It will pay for the loss to Barbara's car and other customers' cars, subject to the policy's limit and deductible.
Lillian is unemployed and has only enough auto insurance to comply with her state's compulsory insurance law. She is responsible for an accident in another state that requires higher limits. What protection, if any, does her personal auto policy (PAP) provide? If the claim exceeds the limits of her policy, Lillian must make up the difference between her limits and the other state's minimum limits. The other state's required limits are reduced to meet her liability limits. Lillian's liability limits are automatically increased to comply with the other state's requirements. Lillian has no liability coverage in the other state.
Lillian's liability limits are automatically increased to comply with the other state's requirements.
Medicare supplement insurance policies supplement coverage of which Medicare Part? Medicare Part A only Medicare Parts A, B, and C Medicare Parts A and B only Medicare Part C (Medicare Advantage)
Medicare Parts A and B only
What is another name for Medicare supplement policies? Medicaid Medigap Original Medicare Major medical
Medigap
Charlene's personal auto policy (PAP) provides coverage not only in her home state but also when she is driving her car in all the following areas EXCEPT: Puerto Rico Hawaii Mexico Quebec
Mexico
Which statement about individual disability income (DI) insurance is correct? The "any occupation" definition of total disability favors the insured. A disabled insured must always be under the regular care of a physician to receive DI benefits. Most DI policies cover only nonoccupational disabilities. A policy may pay a benefit greater than the insured's income.
Most DI policies cover only nonoccupational disabilities.
Which of the following best characterizes the ownership of health insurance coverage? Most people do not have health insurance coverage. Most people are insured through a state or municipal plan. Most people are insured through a group plan. Most people are insured through an individually-owned plan.
Most people are insured through a group plan.
Private School's headmaster was distressed when he learned that Agnes, a full-time teacher, helped students cheat on a college entry exam. He scolded Agnes privately but, to avoid a scandal, did nothing further. A few months later he caught Agnes stealing school equipment and made a claim under the school's employee dishonesty coverage. Is the loss covered? Yes, because employee theft coverage applies to property other than money. No, because employee theft coverage applies only to theft of money. No, because the coverage for Agnes ended when the headmaster learned of her first dishonest act. Yes, because a full-time teacher is an employee.
No, because the coverage for Agnes ended when the headmaster learned of her first dishonest act.
Cathy's business does not own or lease any autos. When necessary, she and her employees use their own cars on business errands. Why should Cathy's businessowners policy include the hired auto and nonowned auto liability endorsement? Hired auto coverage will protect the business if an employee has an accident while using a personal car on company business. Nonowned auto coverage in the BOP is an inexpensive way to cover an auto titled in Cathy's name and used for her personal use. Nonowned auto coverage will protect Cathy's business if she borrows a friend's car or truck for a business purpose. Nonowned auto coverage will protect the business if an employee has an accident while using a personal car on company business.
Nonowned auto coverage will protect the business if an employee has an accident while using a personal car on company business.
The private passenger autos in Parker's fleet are sometimes used for nonbusiness purposes. His trucks are used only for business purposes. Why should Parker use symbol 3 to indicate which vehicles have medical payments coverage? Parker does not need medical payments coverage on newly acquired vehicles. Medical payments coverage is only available for private passenger autos. Parker does not need medical payments coverage on his trucks because workers compensation covers employees' injuries arising from the trucks' use. Parker wants medical payments coverage only on his trucks.
Parker does not need medical payments coverage on his trucks because workers compensation covers employees' injuries arising from the trucks' use.
Which statement is true about the "any occupation" and "own occupation" definitions of total disability? Insureds prefer the any occupation definition. Policies with an own occupation definition are more expensive. The any occupation definition is normally available only in policies sold to professional or white-collar employees. Disability policies sold to those in blue-collar occupations typically use the own occupation definition.
Policies with an own occupation definition are more expensive.
As newly elected county treasurer, Reid is required to post a public officials bond that guarantees: Reid is financially able to pay the bond premium the surety issuing the bond will immediately pay losses that result from Reid's dishonesty Reid will be required to pay any losses for which he or she is responsible Reid's campaign contributions have been audited
Reid will be required to pay any losses for which he or she is responsible
Which of the following tools and resources would a producer not find useful when considering ethical dilemmas in insurance transactions? ethical standards S & P 500 insurance industry standards GBS Codex
S & P 500
In which of the following cases would the applicant be eligible for coverage through an insurer in the residual insurance market? The applicant wants the most affordable premium available. The applicant has been rejected by an insurer. The applicant is a business entity. The applicant is entitled to insurance but cannot buy it through the voluntary market.
The applicant is entitled to insurance but cannot buy it through the voluntary market.
Which is NOT a reason for a homeowner to buy a dwelling policy instead of a homeowners policy? The insured wants minimum property coverage. The dwelling policy provides more comprehensive coverage for less premium. The home is occupied by several families The home is not occupied by its owner.
The dwelling policy provides more comprehensive coverage for less premium.
When an independent contractor discovered he had asbestosis, he submitted a workers compensation claim to Iva Builders, the contractor that employed him. Iva's risk manager submitted the claim to its insurer, but asserted that the contractor got the disease elsewhere and told the insurer to refuse the claim. Which of the following statements is true? The insurer can settle this claim only with Iva's consent, so it must refuse to investigate or pay the claim. The insurer has no right to consider a defense and is obligated to pay the claim. The insurer has a right to investigate and settle the claim regardless of Iva's consent. The insurer has a contractual obligation to investigate the case, but must refuse to settle the claim.
The insurer has a right to investigate and settle the claim regardless of Iva's consent.
Holly routinely charges her clients an extra amount in addition to the premium stated in the insurance policy to cover her own personal administrative expenses. What is true about Holly's actions? They are lawful in most cases. They are unlawful. They are lawful if the client agrees in writing. They are lawful.
They are unlawful.
Personal Injury Protection (PIP) covers the insured owner of a motor vehicle under what conditions? If the owner was not negligent in causing an accident with a motor vehicle Only if the insured is in an accident with an uninsured or underinsured motorist Without regard to fault in an accident with a motor vehicle If an injured party wins judgement against the owner of a motor vehicle
Without regard to fault in an accident with a motor vehicle
Nigel and Collette form N&C Company, a partnership that is the named insured in a businessowners policy. For purposes of liability coverage, who is NOT an insured? N&C Company Collette's husband a customer who sues N&C the bookkeeper
a customer who sues N&C
Which one of the following legally qualifies as an attractive nuisance? an ornate Christmas display in a neighbor's front yard that attracts spectators a swimming pool in a homeowner's backyard that neighborhood children use, without the owner's permission, while the owner is at work a billboard with a pretty picture on the side of the highway an artfully painted garbage can behind a neighbor's garage that attracts flies
a swimming pool in a homeowner's backyard that neighborhood children use, without the owner's permission, while the owner is at work
According to the Securities and Exchange Commission, which of the following allows one to invest in another person's life insurance policy? an annuity a claims settlement a viatical settlement a beneficiary designation
a viatical settlement
If it wants to include employers liability coverage for employees of interstate railroads, an employer's workers comp policy should be modified by: deleting the federal workers exclusion increasing the workers compensation limits decreasing the employers liability limits adding the Federal Employers Liability Act Coverage endorsement
adding the Federal Employers Liability Act Coverage endorsement
Pamela lives in a state with a financial responsibility law. When will she be required to prove she has auto liability insurance? before it is involved in an accident after her car undergoes a state inspection after it is involved in a serious traffic violation or accident. after she registers the car with the state
after it is involved in a serious traffic violation or accident.
Astro Brands' business auto policy has a limit of $1 million. This limit represents the total amount that Astro's insurer will pay for all accidents within the policy period. each person injured in a single accident. all covered autos, insureds, and claims in a single accident. each person injured in all accidents within the policy period.
all covered autos, insureds, and claims in a single accident.
Cody's employer furnishes him with a company car for both business and personal use. His wife, Deanne, has her own car but sometimes drives the company car. Adding the extended nonowned coverage endorsement to Deanne's personal auto policy (PAP): extends the physical damage coverages to Cody while driving the company car applies the liability and medical payments coverages to Cody while driving the company car extends Deanne's PAP coverage to Cody while driving Deanne's car does not protect Deanne when she is driving the company car
applies the liability and medical payments coverages to Cody while driving the company car
Storm damage to utility wires caused a power surge that ruined Delmer's 60-inch flat panel TV. Delmer submitted a homeowners insurance claim that was denied because his policy, like almost all policies on buildings and their contents, excludes coverage for: lightning artificially generated electrical current televisions electronic equipment
artificially generated electrical current
Where do the definitions appear in an ISO businessowners policy? at the end of the policy at the beginning of the policy at the end of the property section and at the end of the liability section in an addendum attached to the policy
at the end of the property section and at the end of the liability section
Tonya owns and operates a neighborhood sports bar where she sells sandwiches, beer, and other alcoholic beverages to her patrons. In addition to auto and workers compensation insurance, what liability insurance policy or policies would protect Tonya against most liability claims arising out of this business? a businessowners policy (BOP) with a host liquor liability endorsement only a commercial general liability (CGL) insurance policy that includes host liquor liability coverage only a liquor liability insurance policy that includes premises and products liability coverage both a commercial general liability (CGL) policy and a liquor liability insurance policy
both a commercial general liability (CGL) policy and a liquor liability insurance policy
An insurance agent's E&O policy covers insurance producers against errors and omissions claims brought by: insurers only both clients and insurers clients only neither clients nor insurers
both clients and insurers
According to the Nationwide Inland Marine Definition, inland marine insurance may be used to cover all the following types of property EXCEPT: computers buildings jewelry fine arts
buildings
A wide variety of products owned by various shippers are transported aboard the Alejandra, an oceangoing vessel. In the language of ocean marine insurance, what are these goods aboard the Alejandra collectively referred to as? consignments cargo payload loading
cargo
A wildfire destroys many homes in a neighborhood but leaves James's home unscathed. Officials prohibit James from entering the area for ten days until debris has been cleared from the only access road. What coverage, if any, in his homeowners policy will cover James's additional living expenses until he can return home? fair rental value coverage additional living expense coverage no coverage applies because his house was not damaged civil authority prohibited use coverage
civil authority prohibited use coverage
HMOs that do NOT cover services outside their network are called: open panel preferred provider organizations (PPOs) closed panel point-of-service
closed panel
Which is least likely to be considered a "covered auto" in a personal auto policy (PAP)? owned private trailer temporary substitute passenger auto commercial tractor-trailer combination newly acquired passenger auto
commercial tractor-trailer combination
In the insurance industry, placing an insured's funds into any type of bank account other than a trust account is considered misappropriation of funds commingling misrepresentation rebating
commingling
Producers who do not meet the standards of which of the following are a threat to the well-being of not only the consumer, but professionals within the insurance industry? loyalty honesty ethics competency
competency
Minestra Company produces a defective quantity of mushroom soup which results in the hospitalization of consumers who become ill from eating it. In anticipation of their claims, Minestra instructs retailers to remove its mushroom soup from their stores. Minestra asks its commercial general liability insurer to cover its expenses in removing the product from the market. Minestra's CGL policy will: cover neither recall expenses nor consumer claims cover consumer claims but not recall expenses cover recall expenses and business losses cover both recall expenses and customer claims
cover consumer claims but not recall expenses
Which of the following losses could be covered by the utility services-direct damage endorsement of the businessowners policy? damage to inventory held for sale loss of business income resulting from spoiled inventory damage to inventory caused by acts of God additional expenses incurred to prevent damage to inventory
damage to inventory held for sale
Food products in Dolly Deli's refrigerated cooler would be ruined if the electrical supply is interrupted for more than a few hours. The deli adds the utility services-direct damage endorsement to its businessowners policy and schedules overhead transmission lines. If Dolly Deli loses electrical power because a windstorm downs power lines, what, if anything, will the policy cover? nothing, because windstorm is not a covered peril direct damage alone lost business income alone direct damage and lost business income
direct damage alone
Which of the following causes of a mechanical breakdown of equipment would be covered? flood electrical arcing freezing caused by record-breaking frigid weather explosion of unconsumed fuel
electrical arcing
Acme Insurance Company wants to employ Anthony as an adjuster. To do so, what must Acme must do? verify that Anthony is eligible for appointment have Anthony sign a non-compete and exclusive agency agreement file an appointment application with the Department of Financial Services submit a notice of appointment to the NAIC's national database
file an appointment application with the Department of Financial Services
Which method of determining the benefit amount is most common in individual disability income policies? flat amount occupational amount totality of income percentage of earnings
flat amount
Dr. Castillo enjoys designing, building, and flying small aircraft. He builds a two-seat, fixed-wing single-engine experimental airplane in his garage. What classification is his airplane? rotary-wing aircraft general aviation unmanned aircraft commercial aircraft
general aviation
All the following are types of aircraft hull coverage EXCEPT: not in flight coverage ground only coverage ground and flight coverage not in motion coverage
ground only coverage
Following the kidnapper's instructions, an employer sent a messenger to deliver $250,000 to the kidnapper who promised to release its kidnapped employee unharmed. However, the messenger was ambushed and the ransom payment was lost. Which coverage of the employer's kidnap/ransom and extortion policy will reimburse the employer for its $250,000 loss due to the ambush? kidnap/ransom and extortion-direct loss in-transit delivery of property kidnap/ransom and extortion-expenses incurred detention or hijack
in-transit delivery of property
Protected health information includes all of the following EXCEPT: information that might help identify an individual information about mental or physical health information that is submitted or recorded in any form information about financial status
information that is submitted or recorded in any form
Which of the following situations involving "self-inflicted injury" would be covered under an aviation insurance policy? injury incurred by a pilot who cuts his hand to obtain time off injury incurred by a crew member to prevent a hijacking injury incurred by a passenger fighting with a smoking passenger injury incurred in a domestic dispute fight between two crew members
injury incurred by a crew member to prevent a hijacking
The Law of Agency is a legal concept governing a three-party relationship. Which of the following is not one of the three-parties to an agency relationship in the insurance industry? insurance company agent insurance agency insured
insurance agency
When used in property insurance policies, the term "salvage" refers to: the unreimbursed portion of a claim insured property that has been damaged due to a covered peril damaged property that the insured walks away from without repairing it inexpensive parts that an insurer may require the insured to use in repairing damaged property
insured property that has been damaged due to a covered peril
Ray's mortgage is more than the value of his house. He hires someone to set the house on fire, and the house is destroyed. Which exclusion in Ray's DP 3 policy will his insurance company cite when it denies his claim? acts or decisions intentional loss neglect water damage
intentional loss
When an insurance policy provides crime coverage on a discovery basis, coverage is triggered by a loss that: is discovered during the policy period or within 60 days after the policy period ends occurs no more than 90 days after the policy period ends occurs after the retroactive date and is discovered during the policy period occurs during the policy period and is discovered within one year after the policy period has ended
is discovered during the policy period or within 60 days after the policy period ends
As defined by the Insurance Services Office (ISO) motor carrier policy, a trucker is a person or organization that: provides transportation by auto in furtherance of a commercial enterprise owns at least one truck or tractor truck is in the business of transporting cargo by auto for hire owns at least one vehicle with more than four wheels
is in the business of transporting cargo by auto for hire
Lucy's space heater causes a fire that results in $200,000 in damage to the office building she rents. Although the loss is within the $300,000 general aggregate limit of her commercial general liability insurance policy, the insurer pays only $100,000 of the property damage claim because of the policy's: personal and advertising injury limit each-occurrence limit limit on damage to premises rented to you products-completed operations aggregate
limit on damage to premises rented to you
A homeowners insurance policy does NOT provide liability coverage for anyone who: is not a legal citizen of the United States at the time of the loss makes false statements with respect to the insurance makes a liability claim under another policy has been added to the named insured's family during the policy term
makes false statements with respect to the insurance
As defined in the farm liability coverage form, farming does NOT include: agricultural enterprises roadside stands on the farm premises aquacultural enterprises mechanized processing operations
mechanized processing operations
If a producer does not properly and thoroughly represent an insurance contract or product, his or her failure to do so may be construed as misrepresentation twisting pyramid sales and marketing bait and switch
misrepresentation
Darrel's car is insured by a personal auto policy that includes liability, collision, and other-than-collision coverages. He buys a pickup truck with a 12,000-pound gross vehicle weight. The PAP will provide: automatic liability coverage on the pickup if he reports it to the insurer within 14 days automatic liability coverage on the pickup for the remainder of the policy period no automatic coverage for the pickup because of its high weight rating automatic collision coverage on the pickup if he reports it to the insurer within four days
no automatic coverage for the pickup because of its high weight rating
The Inganno Company gets considerable business from the public's confusing its name with that of a competitor. Adding to the potential confusion for its benefit, Inganno registers several domain names that incorporate its competitor's registered trademarks. The personal and advertising injury coverage of Inganno's commercial general liability (CGL) insurance policy will: cover the cost of changing Inganno's domain names cover the cost of defending Inganno from the competitor's trademark infringement lawsuit not cover any claims or lawsuits filed against Inganno cover liability claims filed against Inganno
not cover any claims or lawsuits filed against Inganno
Neal solicits travelers arriving at the airport to offer them transportation in his sedan to local destinations. He is involved in an auto accident that injures two passengers. The medical payments coverage of Neal's personal auto policy will: cover the passengers' medical expenses only if the accident is not Neal's fault not cover the passengers' medical expense unless Neal is at fault not cover the passengers' medical expenses because the use of the car as a public conveyance or livery service is excluded from coverage cover the passengers' medical expenses subject to the policy limits
not cover the passengers' medical expenses because the use of the car as a public conveyance or livery service is excluded from coverage
Which definition of total disability lets the insured qualify for benefits most easily? partial occupation own occupation any occupation presumptive disability
own occupation
Paving Contractor has a contractors' equipment floater that covers its paver and other scheduled equipment. If the paver is totally destroyed by a covered peril during the policy term, what will the insurer do? decline the claim and refund the entire premium on the paver pay the claim and cancel Paving Contractor's policy pay the claim and refund the unearned premium on the paver pay the claim but make no refund of premium
pay the claim and refund the unearned premium on the paver
Which method of determining disability benefits is most common in group policies? totality of income approach occupational amount flat amount percent-of-earnings
percent-of-earnings
Effluvia Industries' insurer adds the limited pollution liability extension endorsement to Effluvia's CGL insurance policy. Though Effluvia is now covered for bodily injury or property damage claims for pollution incidents, the endorsement does NOT cover it for liability resulting from: pollutants seeping from an underground storage tank pollutants from a chimney or smokestack any pollution release that incurs cleanup costs pollutants seeping from an aboveground storage tank
pollutants seeping from an underground storage tank
The Farm Liability Coverage Form (FL 00 20) includes all the following basic coverages EXCEPT: personal injury and advertising injury medical payments pollution liability bodily injury and property damage
pollution liability
When asking themselves questions that concern legal risks, control risks, ethical risks, and culture risk, what are producers doing? creating a conflict of interest adopting a code of ethics identifying ethical dilemmas preventing ethical dilemmas
preventing ethical dilemmas
Owen Corporation has a fidelity bond issued by Alpha Assurance in which Alpha guarantees to Owen that Gregg, who is Owen's corporate treasurer, will not be dishonest. In this transaction, Gregg is the: surety obligor principal obligee
principal
Genevieve wants to renew her Florida insurance adjuster's license. Which of the following is not a condition for renewal? report of insurance sales made in the last two years payment of the renewal fee submission of a renewal form fulfillment of continuing education
report of insurance sales made in the last two years
If a producer considers who are the stakeholders and what are their rights, he or she is undertaking Step One of which of the following? resolving an ethical dilemma preventing an ethical dilemma stating an ethical dilemma identifying an ethical dilemma
resolving an ethical dilemma
When the Brianna collided with the Tania, marine experts determined that the captain of the Brianna was at fault. What provision in the Brianna's ocean marine policy protects the shipowner or operator against the Tania's property damage liability claim? Sue and labor clause liability insuring clause, also known as a liability insuring agreement salvage clause running down clause, also known as a collision liability clause
running down clause, also known as a collision liability clause
After striking a shoal, the freighter Benita was in danger. The fishing vessel Flossie was in the area and provided assistance. Flossie then billed the Benita to recover its expenses, which marine insurers refer to as: particular averages pilotage and towage sue and labor salvage charges
salvage charges
A society, community, or business industry determines the collective standards of acceptable ethical conduct. An individual, however, approaches ethical decisions from a personal perspective of life experiences along with other factors. Which of the following is not one of the factors from which an individual makes an ethical decision? morals and values state insurance regulations concept of good versus evil degree of self-interest
state insurance regulations
Vicky's business is located in a state that requires uninsured motorists coverage. What symbol will indicate this coverage in her business auto policy (BAP)? symbol 3 symbol 6 symbol 5 symbol 1
symbol 6
Because Hallie's employees often use their personal vehicles for business-related errands, the liability coverage of her business auto policy (BAP) should show either symbol 1 or: symbol 4 symbol 9 symbol 8 symbol 7
symbol 9
Molly is employed on an oceanographic exploration lab located 15 miles off the coast of Mississippi. Her employer is obligated to provide benefits under the terms of: the Jones Act the Defense Base Act the Outer Continental Shelf Lands Act the Mississippi workers compensation statutes
the Outer Continental Shelf Lands Act
Mandy is injured in a collision with a motorist who has no insurance coverage. Mandy's personal auto policy includes uninsured motorists coverage. However, she and her insurer cannot agree on the amount of compensation she is entitled to receive. The policy's arbitration provision will enable them to resolve their dispute over: the amount of damages alone whether Mandy is entitled to damages and the amount of the damages whether Mandy is entitled to damages alone whether settling the claim will affect Mandy's renewal premium
whether Mandy is entitled to damages and the amount of the damages
Brad's home is badly damaged by flood. Which of the following items is covered under the personal property coverage (Coverage B) of his NFIP dwelling form? money and stamps his home's septic system his property fence window air conditioner
window air conditioner
What type of behavior conforms to accepted standards and is characterized by being suitable, right, and appropriate? proper ethical improper illegal and unethical
proper
When business income coverage was to be added to Callie's equipment breakdown policy, the insurer required her to complete an annual report of values form. Among other things, what is this form used to determine? the amount to be paid to Callie in the event an equipment breakdown causes a loss of income the value of covered equipment Callie's loss experience as regards past equipment breakdowns whether Callie qualifies for business income coverage
the amount to be paid to Callie in the event an equipment breakdown causes a loss of income
Producers owe all of the following duties to their insureds EXCEPT: to advise the insured of the duty to disclose to the insurance company all material facts pertaining to the risk insured to make all reasonable attempts to elicit information from the insured the terms under which the producer may sell, solicit, or negotiate insurance to provide examples to the insured of the types of material facts that need to be disclosed
the terms under which the producer may sell, solicit, or negotiate insurance
All the following statements regarding Coverage J (medical payments) of the Farm Liability form are correct EXCEPT: there are no exclusions associated with this coverage its underlying purpose is to foster a good relationship between the potential claimant and the insured it covers medical expenses incurred within three years of an accident causing bodily injury it may help avoid a lawsuit
there are no exclusions associated with this coverage
Under the Coverage A insuring agreement of the CGL policy, what does the insurer promise to do? to pay damages on behalf of the insured for bodily injury or property damage that the policy cover to cover the insured's obligation under a court injunction to determine the most suitable coverage for the insured's loss exposures to sue those who file claims against the insured for bodily injury or property damage
to pay damages on behalf of the insured for bodily injury or property damage that the policy cover
A claims adjuster is required to maintain a complete and accurate claim file for all of the following reasons EXCEPT: to record the activities that occurred during the adjustment of the claim to permit others to service the claim if the adjuster is unavailable to support denial of the claim to facilitate examination by insurance regulators
to support denial of the claim
What type of bank accounts are obtained, maintained, and held separate and apart from other funds for a specific purpose? escrow accounts trust accounts business operating accounts checking accounts
trust accounts
An insured's health insurance policy pays a flat rate of $200 a month if she becomes disabled, regardless of her actual income. What kind of policy does she have? reimbursement policy group policy valued policy medical expense policy
valued policy
Kent's homeowners insurance policy and his auto policy both include medical payments coverage. How do these two coverages compare? Both apply to other people's injuries but not to an insured's injuries. The homeowners policy's coverage applies to an insured's injuries, but the personal auto policy's coverage doesn't. The personal auto policy's coverage applies to an insured's injuries, but the homeowners policy's coverage doesn't. Both provide only fault-based third-party liability coverage.
The personal auto policy's coverage applies to an insured's injuries, but the homeowners policy's coverage doesn't.
Joe was restocking the merchandise in Discount Store at 1 a.m. when an alarm went off. He rushed to the back room and discovered that the normally locked exit door was broken open, and a carton of valuable merchandise was missing. Which of the following correctly describes the cause of loss? burglary vandalism mysterious disappearance robbery
burglary
The cries of Jodie's young daughter distracted Jodie while she was driving the child to school. Jodie collided with Emanuel's car, pushing it into a telephone pole. Emanuel's car was damaged, and the telephone pole was destroyed. The resulting traffic jam delayed other drivers from getting to work on time. As defined in Jody's personal auto policy, all the following claims involve property damage EXCEPT claims for lost wages by the other drivers who were late to work. Emanuel's claim for expenses to rent a temporary substitute car. Emanuel's claim for damage to his car. the utility company's claim for destruction of the telephone pole.
claims for lost wages by the other drivers who were late to work
Which of the following expenses would not fall within those covered by a business auto policy paying a claim for "property damage," as that term is used in a BAP? damage to property being transported in a covered auto lease of substitute vehicle while covered auto is being repaired repairs to a covered auto damaged in a collision damage caused to a structure by a covered auto
damage to property being transported in a covered auto
Ken's house has an exterior layer of brick that covers wooden walls supported by wooden 2-by-4 studs. What type of construction does Ken's house have? masonry veneer masonry frame fire resistive
masonry veneer
The declarations page of Julius's equipment breakdown policy lists a number of coverages, such as property damage, expediting expenses, business income and extra expense, and utility interruption. The word "INCLUDED" is shown next to "property damage," but it does not appear elsewhere in the declarations. Julius's policy provides coverage for: property damage, expediting expenses, business income and extra expense, and utility interruption every listed coverage other than property damage Expediting expenses, business income and extra expense, and utility interruption only property damage only
property damage only
When settling a property claim, an insurer may offer the insured a choice of each of the following EXCEPT: replacement of the damaged property reduction in premium to insure the damaged property payment of the insured value of the property reparation of the damaged property
reduction in premium to insure the damaged property
Gina was the only employee in OK Convenience Store at 3 a.m. when a gunman entered the store and made her give him all the money in the cash register. Which of the following correctly describes the cause of loss? kidnapping burglary robbery mysterious disappearance
robbery
From a property insurance perspective, which of the following is NOT a basic type of construction? superior frame steel masonry
steel
Laura owns poisonous snakes on her property, which she uses for venom research purposes. One of the snakes escaped and within hours bit a neighbor who sued Laura. Though Laura was not negligent in her ownership of the snakes, the plaintiff easily won the suit based on the doctrine of: vicarious liability comparative negligence assumption of risk strict (absolute) liability
strict (absolute) liability