G Exam

Insurance contracts are unilateral in nature. What does that mean?

Only one party makes a promise

What is not an additional coverage under a home owner's policy?

Outbuildings

What is correct regarding business income coverage under the business owner's policy (BOP)?

The business income losses are payable for 12 consecutive months following the occurrence.

The business owner's policy (BOP) extension coverage form for personal property off-premises is limited to...

$2,500

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%

Home owner's policies consider a lot of insured locations EXCEPT

A strawberry patch owned by the insured

Which of the following conditions is NOT included for farm liability in addition to the common policy conditions?

ARBITRATION.

In a DP-1, if the insured elects to apply Coverage B to a detached garage, Coverage A will...

Be reduced by 10%

How is a licensee's date of Continuing Education credit review determined?

By the licensee's month and date of birth

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

A policy contains a consent to settle a loss provision which requires the insurer to obtain the consent of an insured before the settlement of a claim. With this in mind, what kind of liability policy does the insured most likely have?

Professional liability

What is NOT available in a package policy?

Professional liability

Which of the following is the other major coverage provided by the business owners liability coverage form?

a)Auto liability b) Employers liability c)Medical payments *** d) Personal liability

The owner and operator of a store discovers that a customer paid for a large order with forged paper money the day before during business hours what crime coverage form would provide coverage for this loss?

Money orders and counterfeit paper

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

Morale hazard

Among people in the same class and life expectancy, what factor CAN be used to influence premium rates?

Occupation

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

$1000

This person would NOT be covered under a business auto policy

An employee of the named insured operating an auto that is owned by the employee's spouse.

What two policy components are part of every commercial package policy?

Common policy declarations Common policy conditions

Under which legal defense is there an appointment of damages based upon the degree of fault of each of the plaintiffs and the defendant?

Comparative negligence

What is NOT an optional endorsement that may be added to the standard equipment breakdown coverage?

Debris removal

The federal act that provided more favorable benefits for interstate railroad workers by allowing the injured worker to sue the employer for negligence is the...

Federal Employers Liability Act (FELA).

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

Form 5

Slippery floors, reckless driving, or providing false information are examples of...

Hazards

In a BOP, what would be covered?

Liquor liability, pollution, and mobile equipment are all excluded from a BOP, but medical expenses are covered

Guaranteeing future dividends is considered to be an unfair or deceptive act know as

Misrepresentation

Guaranteeing future dividends is considered to be an unfair or deceptive act known as

Misrepresentation

How is the premium paid for the business owner's policy?

One indivisible premium

A statement that best describes agreement as it relates to insurance contracts..

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

Business owner's liability coverage automatically includes several liability coverages EXCEPT

Pollution

The broad cause of loss form in the commercial property policy contains three perils in addition to the basic form perils. What is NOT one of those three perils?

Utility services

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

Employee theft

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

Equipment breakdown

Mary feels that she was unreasonably denied home insurance by Snidely Insurance. Under the grievance procedures of the Essential Insurance Act, Mary had a private conference with Snidely Insurance, but did not manage to settle their dispute. What will happen now to resolve the issue?

The Commissioner will review and resolve the dispute.

A small appliance manufacturer in this state provides products around the globe. A customer in Switzerland is injured using one of its products. If the appliance manufacturer is found liable for the damages, why would its commercial general liability cover the customer's claim for bodily injury?

The appliance was manufactured in the United States

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

Absolute liability

What would be covered under a building and personal property coverage form?

Outdoor sign

A house insured with a homeowners policy has been blown off it's foundation by a tornado. It must be demolished and removed so a replacement house can be built. What is true about debris removal?

An additional 5% of the policy limit may be paid for debris removal

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

Physical damage to a customer's auto. The garage policy has a care, custody and control exclusion which would eliminate coverage for any damage to a customer's auto. This exposure would need to be covered under a garage keeper's policy.

Policy limits are the maximum amount an insured may collect, or which an insured is protected under the terms of the...

Policy

John is a producer with XYZ Insurance Company. To sell more policies, John has been offering his clients gifts of stocks and bonds. If John is convicted of the misdemeanor of rebating for this practice, what is the maximum penalty he may have to pay?

$100 for each violation.

Underwriters protect the insurer against adverse selection by...

-Restriction of coverage -Acceptance of certain risks only at a higher rate -Refusal to accept the risk

How much notice must the Property and Casualty Guaranty Association give before cancelling an insurance policies?

10 days

How many hours of Continuing Education are required to maintain a Counselor's License?

None.

Underwriters use many methods to protect the insurer against adverse selection EXCEPT

Only accepting a small percentage of applicants

The deductible under earthquake coverage is stated as what?

Percentage loss

What type of property is NOT moveable?

Real property

What is NOT a part of Section II of the boat owners policy?

Watercraft damage

What is NOT a consideration 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?

The insurer's chartered location or domicile

A trucking company's truck is out of service for repairs. While making the delivery in a borrowed truck, the driver is responsible for an accident that causes $55,000 in property damage to other vehicles and injures to 2 individuals. Under the commercial auto liability policy conditions, which pays for what loss?

The policy for the company that borrowed the truck will be primary, and the titled owner will be excess.

The owner of a rental dwelling, insured under a DP-2, turns off the heat in the insured dwelling during the winter months because the dwelling is not occupied. The buildings water pipes freeze and break causing damage. How will the policy react to this loss?

This loss is excluded from coverage

What is an insured contract?

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