GA P&C #3
Which of the following is the amount of additional coverage on the standardized Homeowners forms for a Fire Department Service Charge?
$500
The standardized Personal Automobile policies contain all of the following, EXCEPT:
A common conditions page.
A person eligible but unable to obtain auto insurance in the voluntary market may do which of the following in Georgia?
Apply for coverage through the Georgia Automibile Insurance Plan.
Which of the following is not reflected in a privacy report?
Categories of medical information.
A new homeowner is being forced into purchasing insurance from a particular insurance company as a condition to receiving a mortgage. The lender is guilty of which of the following unfair trade practices?
Coercion.
Frank Meadows is an adjuster who violated an unfair claims practice in Georgia. The Insurance Commissioner issued a cease and desist order. Frank has continued to engage in the unfair claim practice and violated the cease and desist order. All of the following are penalties that can be imposed by the Commissioner, EXCEPT:
Impose a term of six months in the county jail
A reciprocal insurer in Georgia is not permitted to transact which type of insurance in this state?
Life Insurance
Which of the following would be considered "compensatory" or "special damages" paid to an injured party when the insured is negligent and causes the injury?
Lost wages
Which of the following are grounds for the Commissioner to revoke an insurance license in Georgia?
Misrepresenting the terms and conditions of an insurance contract
"Theft" as defined by a Crime insurance policy, includes all of the following, EXCEPT:
Mysterious disappearance.
Following a request for a hearing with the Commissioner, how soon must such a hearing be held?
No later than 30 days following the request.
A risk where both profit and loss are possible is known as:
Speculative.
Part One of the NCCI standard workers' compensation policy specifies the:
Statutory provisions of the policy.
Under Ben Green's personal auto policy, each of the following would qualify as a "family member" EXCEPT:
Susan Green, Ben's wife. Susan maintains a separate residence although she and Ben are not divorced
Mr. Jones purchases a blender at a discount store. He brings it home, plugs it in and it malfunctions causing the house to catch fire. The fire destroys the blender, the home and its contents. It also causes bodily injury. Which of the following is NOT covered under the Commercial General Liability policy?
The blender
All of the following claims would be excluded under the Homeowners Watercraft Endorsement, EXCEPT:
The bodily injury suffered by the insured while he was operating the covered watercraft, loses his balance and hits his head on the floor of the boat
Which of the following statements is TRUE regarding the auto dealers' physical damage coverage under the Garage policy?
The coverage is provided by a blanket limit for covered autos. EXPLANATION: The dealers' physical damage limit is usually set up as a blanket limit. The coverage does NOT extend to customer's autos, there is not a maximum limit per auto, nor is coverage provided when the covered auto is driven more than 25 miles from the point of purchase or distribution.
The giving up of a known right is called:
The giving up of a known right is called:
An insurance agent/producer represents the interests of:
The insurance company
All of the following are characteristics of an insurable risk, EXCEPT:
The loss must be catastrophic in nature.
All of the following are "open-peril" exclusions of the HO-3 and HO-5 form, EXCEPT:
Theft.
In crop insurance, what is NOT considered to be a "coarse grain" crop?
Wheat.
The insured is covered under a standard Businessowners policy. She has several computers used in the business and the electronic data stored on them becomes corrupted as a result of lightning. The cost to research and restore this data is $20,000. How much will the policy pay for the electronic data?
$10,000 EXPLANATION: The coverage provides up to an annual aggregate of $10,000. The cost to replace or restore electronic data is covered if the data is corrupted or destroyed by a covered cause of loss.
Supplementary payments under the liability section of a Commercial Auto policy include reasonable expenses incurred by the insured including loss of earnings up to _____ per day.
$250.
The Homeowners "additional coverages" includes coverage up to __________ for gravemarkers including mausoleums on or away from the residence premises by a peril insured against.
$5,000 EXPLANATION: The Homeowners policies provide as an additional coverage, up to $5,000 for this coverage. The perils insured against are listed in Coverage C.
How long can an injured employee receive disability benefits as a result of a non-catastrophic work related accident?
400 weeks
Under the livestock coverage form, how must livestock be covered?
80% to value..
Which of these statements best describes "the law of agency?"
A relationship in which someone is authorized by contract to represent another party..
Papers and documents certified by the Georgia Insurance Commissioner and bearing the official seal are:
Acceptable as evidence in Georgia courts of law.
Any individual in Georgia appointed or employed by an insurer that solicits insurance or procures applications for insurance is a(n):
Agent/producer.
Under a surety bond, the "principal" is the party that:
Agrees to fulfill an obligation
In the insurance industry, which of the following terms refers to continuous or repeated exposure to conditions that may result in bodily injury or property damage neither expected nor intended?
An occurrence.
Which of the following coverages does NOT need to be added to a Garage Coverage form by endorsement for coverage to apply?
Collision.
All of the following are characteristics of a principal that a surety will scrutinize during the underwriting process, EXCEPT:
Consideration.
Which of the following types of coverages are included in the standardized Businessowners policy?
Coverage for business personal property.
Which of the following is included in the Crime policy's definition of "securities"?
Evidences of debt
The Part A - Liability section of a standardized personal auto policy will provide coverage for which of the following vehicles?
His family car while being used in car pool.
Which of the following losses would be covered under a standard Personal Automobile policy?
Jorge's auto that suffers damage while being transported from a port in Miami, Florida to San Juan, Puerto Rico..
Milton agrees to steal and wreck Albert's car for $4,000, so that Albert can collect $8,000 under his auto insurance policy. Which of the elements of a valid contract are missing in this agreement?
Legal purpose.
The part of a standard workers' compensation policy that contains the cancellation procedures is:
Part Six - Conditions
Which of the following loss valuations can be stated as "we agree to pay the cost to repair or replace without deduction for depreciation?"
Replacement cost
Which of the following is considered an Unfair Claim Settlement Practice?
Requiring a claimant to submit a preliminary claim report before moving forward on the claim.
Coverage E under the farm forms covers which of the following?
Scheduled personal property
Arianna works for Jones Manufacturing Company and is an excellent employee. Arianna's supervisor has passed her over for a promotion the past two years, because she refused his sexual advances. Arianna reports this treatment to the HR Department, but has stated that at the present time, she does not want to bring suit. Which of the following actions should the HR Department take to be sure their Employment Practices Liability policy will cover them if Arianna should bring a lawsuit later?
The HR Department should report the "wrongful act" to the insurance company so that it will be considered a claim made during the policy period if Arianna decides to bring a lawsuit later.
Which of the following Commercial Automobile forms would be used to cover a limousine for hire?
The Motor Carrier Coverage form
Trevor purchases a condemned house in a run-down neighborhood that is scheduled for demolition by the city. He paid $10,000 for the house and wants to protect his financial investment by purchasing insurance. Which of the following statements is true?
The property is not insurable because the loss is expected..
A covered commercial auto requires $700 in repairs because of damage done by a limb from a dead tree that fell on it. The auto's BAP physical damage coverage has a $100 comprehensive deducible and a $250 collision deductible. Assuming that the ACV and replacement cost of the vehicle is $700, the insurer will pay:
$600.
In regards to Workers Compensation insurance, which of the following experience modification factors would indicate that an insured has sustained a relatively high frequency and severity of losses in the recent past?
1.25
What is the limit of coverage provided under a Mobile Homeowners policy for detached structures?
10% of the Coverage A limit or $2,000 whichever is greater.
An insured has an NFIP policy and suffers a direct loss due to flood. How many days does the insured have to submit a proof of loss?
60 days
Coverage G under the Farm forms covers which of the following?
Covers barns, silos, fences
A business insured under a Commercial General Liability policy has a general aggregate limit of $1,000,000 and an "each occurrence" limit of $100,000. If an injured party is awarded $100,000 in damages for injuries arising out of premises hazards today, what will the company's general aggregate limit and "each occurrence" limit be tomorrow?
General aggregate limit of $900,000; each occurrence limit of $100,000
The limits of the Employers' Liability section of a standard workers' compensation policy are:
Listed on the Information page
Section I of a Homeowners policy covers all of the following, EXCEPT:
Locations owned by the named insured that are not described on the declarations page of the policy.
Which of the following statements is TRUE regarding an Extended Reporting Period (ERP) of a CGL policy?
Once in effect, Extended Reporting Periods may not be cancelled..
With a work-related injury, the loss of a finger would be characterized as what type of disability?
Permanent partial
The insured has his home insured on a HO-2 policy. Lightning has struck the home and causes a fire. The insured takes as much personal property out of the house as possible while waiting for the fire department to arrive and extinguish the fire. The insured and some of his neighbors damage some of the property while moving it to safety in the back of a pickup truck not owned by the insured. What additional coverage would cover this damage to the insured's personal property?
Property Removed
Which of the following standardized Dwelling insurance forms provides coverage for loss of rental income?
The DP-1, DP-2, and DP-3 forms
Residential condominiums in the emergency program of the NFIP are covered by which of the following forms?
The General Property form..
The Federal Regulation that is also known as "The Financial Modernization Act of 1999" is:
The Gramm-Leach-Bliley Act.
The contract between an insurance agent/producer and an insurance company is known as:
The appointment contract
Patrice has received a reduced payment for her insurance claim and the explanation states that the reduction was due to the "obsolescence" of the damaged property. Which of the following best describes the reason for the reduction in the claims payment?
The property that was destroyed was obsolete.
In order to qualify for a surety bond there are times the principal must have another party sign the agreement. This party agrees to reimburse the surety if the principal defaults. This party is known as:
indemnitor
A non-residential building in Iowa in a community that was admitted to the NFIP Emergency Program would be provided _______ of coverage for the building.
$100,000. EXPLANATION: A commercial building in Iowa that is located in a community that was admitted to the NFIP Emergency Program would be provided $100,000 of coverage for the building.
The Commissioner in Georgia may, after a hearing, fine an insurance company which of the following if violations of the insurance code are discovered?
$2,000 for each act of misconduct and up to $5,000 for each act of willful misconduct.
Darla has her business covered by a standard Businessowners Policy that includes the "Personal Effects" coverage extension. Catherine, one of Darla's employees, has brought her brief case to work one day with her purse, make-up bag, tablet, and laptop computer inside. A fire breaks out in Darla's building and all of the contents of Catherine's briefcase, worth $2,000, are destroyed. How much will Darla's BOP pay for Catherine's lost "personal effects"?
$2,000. EXPLANATION: The "Personal Effects" coverage extension will pay up to $2,500, but because the loss was only worth $2,000, that is the amount the insurer will pay.
Under a standardized Dwelling form, a loss by a covered peril for Improvements, Alterations and Additions is covered for up to:
10% of the Coverage C limit of liability.
What type of bond guarantees that if a bid is accepted, the bidder will satisfy further bonding requirements?
A bid bond
Cancellation of a personal auto policy is permitted in Georgia for all of the following reasons, EXCEPT:
Adding a youthful driver to the policy
Which of the following statements is TRUE concerning the Businessowners policy?
BOP is a type of package policy that prepackages a group of coverage desirable to small businesses
Which of the following is the basis for insuring property under Section I of the Businessowners policy?
Coverage is written on an open peril basis
You purchase a new car and, as the terms of your auto policy require, you contact your agent and notify him of the purchase. He states to you, "No problem, you're covered." Two months later you are involved in an accident. When you report the claim to your agent he says, "Oh no, I forgot to notify the company! I'm afraid you're not covered." You can:
File a claim against the auto insurer and advise the agent that there is the possibility of an errors and omissions claim for failure to properly notify the insurer of the acquisition of an automobile..
Which of the following statements is TRUE regarding the definition of "mysterious disappearance" as it applies under a Crime insurance policy?
For "mysterious disappearance" to apply, theft of the property must be ruled out..
The right to request an appraisal belongs to: I. The insured. II. The insurer. III. The salvage company.
I and II only.
Which of the following professional liability policies would cover a dishonest, fraudulent or criminal act of the manager of a LLC?
None of the policies cover these acts
Which of the following is NOT covered under aircraft physical damage (hull) insurance?
Personal effects.
Homeowner policies typically provide coverage for all of the following, EXCEPT:
Personal injury
In Georgia, insurance binders are valid for a period not to exceed:
90 days EXPLANATION: In Georgia, insurance binders are no longer valid as of the effective date of the policy, but never to exceed 90 days.
On the renewal date of her existing NFIP policy, the insured selects two additional coverages. Which of the following statements is TRUE about the insured's waiting period before the new additional coverages will take effect?
There is no waiting period.
Which of the following statements about Excess Liability insurance policies is FALSE?
They can be written to broaden the coverage of the underlying liability policy.
All of the following are correct statements regarding the limits of liability under Part A of a Personal Auto policy, EXCEPT:
When the Part A limits are exhausted, any limits for Uninsured Motorists coverage can be used to pay the entire claim.
Under a Crime insurance discovery form, a loss is "discovered":
When the insured first becomes aware that a loss has occurred or gives notice of an actual claim of a covered loss..
Under an HO-6 form, the additional coverage for damage to trees, shrubs and other plants is provided at:
10% of the Coverage C limit, or a maximum of $500 for any one tree, shrub, or other plant
The "Business Income" additional coverage of the standard Businessowners policy provides coverage for "ordinary payroll coverage" for:
60 days unless the insured selects and schedules a different amount..
Title insurance would cover which of the following?
A claim for a hidden lien on his/her real property is presented to the insured.
Indemnify Insurance has been using a specific ISO Homeowners forms for several years in all the states where they are an admitted insurer. Indemnify Insurance has recently been admitted to an additional state, but the laws of that state contradict a few of the provisions in the ISO form. How is this situation likely to be handled?
A statutory form will be drawn up and attached to each Homeowners policy Indemnify Insurance writes in the state..
Philip has several vehicles that are all covered under Personal Automobile policies. He has several acres of land with a barn and chicken coup on the property. To drive around on the acreage, Philip has a very old truck that is not licensed or insured. One afternoon, Philip is driving out to check on his cows when he hits a rut and his head slams down on the steering wheel, injuring him severely. How will Part B - Medical Payments provide coverage for Philip's injuries?
Bodily injury sustained while occupying an uninsured auto owned by the insured is excluded under Part B, therefore no coverage would apply.
Coverage D - Loss of Use on a farm policy will include coverage for: I. Additional living expenses incurred by the resident family. II. Loss of rental income of the owner for tenants who cannot live there due to a covered loss.
Both I and II
Which of the following is a TRUE statement regarding how bullion and manuscripts are covered under the 1943 New York Standard Fire policy?
Bullion or manuscripts may be covered, but only if they are specifically named in the policy.
Which of the following lines of insurance was covered under the Terrorism Risk Insurance Act of 2002, but was excluded with the passage of the Terrorism Risk Insurance Program Reauthorization Act of 2015?
Commercial automobile..
The Homeowners forms exclude coverage for loss resulting from "earth movement" but the peril of "earthquake" can be added by endorsement as an insured peril for:
Coverages A, B, and C.
All of the following are true regarding the "Write Your Own" program of the NFIP, EXCEPT:
Insurers are required to participate in the program..
All the following are covered under Section II of a Homeowners policy, EXCEPT:
Intentional bodily injury to others by the insured
John Smith, a licensee in Georgia, pays a finder's fee to individuals who provide him with insurance leads. In Georgia this act is:
Not permitted at all
While repairing a stairway for a customer, an employee of Mike's Construction Company accidentally drops a hammer and injures someone walking by. This situation falls under which exposure of Mike's Commercial General Liability policy?
Premises & Operations
When would the Personal Auto policy respond to a loss with an all-terrain three-wheeled vehicle?
When used in an emergency situation.
Suspecting a customer is shoplifting collectible sports cards, a security guard at the Too-High Toy Store takes the customer and his child to the office to await police. When the police arrive it is discovered that the customer nor his child shoplifted anything. The toy store is sued for wrongful detention and the court awards damages to the customer. Payment for the damages awarded:
Will be paid under Coverage B of the store's CGL policy.
Which of the following is not "mobile equipment" under the business auto policy?
A self-propelled vehicle with permanently attached street-cleaning equipment
Which of the following statements is TRUE regarding the "Damage to Premises Rented to You" coverage of a Commercial General Liability policy?
Coverage for fire damage liability applies only to the area of the building the insured rents and occupies and does not provide coverage to any other areas where the fire may spread..
Spencer is covered under a standard Personal Automobile policy with a policy inception date of October 15th. Additionally, the policy will expire on October 15th of the current year. Spencer contacts his agent on October 7th and asks to have an new endorsement added to his policy. The agent agrees, adds the coverage the same day, and informs Spencer that there will be an additional premium of $20 per month charged. When will the adjustment of premium be effective for Spencer?
October 7th
