Guarantee Exam

A general liability policy will respond to claims against an insured when bodily injury or property damage is caused by

An insured's negligence

A personal umbrella policy may act as excess over any of the following insurance coverage policies EXCEPT:

Auto Collision Coverage

With regard to HO Section II, which of the following does NOT meet the definition of an insured location:

A plot of farmland owned or rented by the insured

Who is eligible for coverage F in the event of injury at the insured's premises?

A resident employee

In a PAP, a covered auto includes all of the following except:

A vehicle used primarily for deliveries.

Section II - Homeowners Policy

Additional Coverage Damage to Property of Others

Coverage B - Personal and Advertising Injury Liability responds to claims arising from:

Suits alleging infringement and copyright

What is FALSE concerning liability coverage of a BAP?

The company will reimburse the insured for all earnings lost.

A golfer slices a tee shot and the ball goes through the window of a house beside the fairway. The broken glass is paid for by:

The golfer's homeowners liability coverage.

If an insurance policy has the additional coverage provision, how does it affect the expiration date?

There is no additional premium.

When symbol 7 is provided, what is true with regards to newly acquired autos?

They are covered if they are used to replace previously owned autos with that coverage.

What was the purpose of the Motor Carrier Act of 1980?

To establish financial responsibility requirements for interstate motor carriers

Umbrella policy's pay as if the _________ were in effect.

Underlying limits

When does the insurer's duty to defend a suit or claim end in a CGL policy?

When loss payments equal the applicable limit of insurance.

What type of policy may an insured purchase in order to provide coverage for other types of contracts?

A contractual liability policy

What are the minimum required liability limits in motor vehicle liability policies issued in this state?

25/50/10

The insurer must give the insured _______________ notice that it will refuse to renew the policy upon the expiration date.

45 days

Cancellation of a FIRE POLICY due to nonpayment requires that the insurer gives prior written notice of at least:

5 days

Notice of cancelling a medical malpractice policy:

90 Days

This state provides for a temporary license for all of the following except

A Producer's Retirement

The equipment breakdown coverage form provides coverage for all of the following except:

Bodily Injury Liability

An agent delivers a policy to an applicant, who pays the initial premium but refuses to submit a Statement of Good Health. Which of the following best describes what the applicant has violated?

Consideration

Which of the following would NOT generally be included in the supplementary payments portion of a liability policy?

Damage to property owned by the insured

Which of the following is not a type of Hazard?

Exposure

Which of the following policies does NOT contain an automatic reinstatement provision?

General liability written with an aggregate limit.

All of these types of property may be covered on a farm property coverage form EXCEPT

Growing Crops

How does insurance distribute the financial consequences of individual losses?

It transfers the risk to all persons insured

Section III of the business auto policy provides physical damage coverage. All of the following are physical damages that may be selected coverages EXCEPT:

Limited Peril Coverage

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

Limits of Liability

An insured is injured while driving his own car. Which of the following coverages will pay for the loss?

Medical Payments

Mental Anguish is a covered injury under

Personal and Advertising Injury Liability

Since the policy owner was related, the agent refunded his brother the commission earned on this policy. This action would be considered:

Rebating

Symbol 1 affords the

broadest coverage

Meets the definition of flood and covered by NFIP

mudflow and collapse

A situation occurring when one property is insured by more than 1 policy, against the same hazard, in an amount exceeding the fair value of that property is called:

overinsurance