Guarantee Exam

Up to what percent of the amount paid for direct loss will the insurance company pay for debris removal expense under the Business and Personal Property coverage form?

25 Under the Business and Personal Property coverage form, the insurance company will pay up to 25% of the amount paid for a direct loss for debris removal expense. An additional $10,000 of coverage is available if the debris removal expense exceeds the 25% limit or the total loss exceeds the policy limits.

An audit revealed the administrator for a pension plan has made investments that were not consistent with the risk tolerance set forth in the plan for its members. The earnings for the past year are substantially below average for comparable funds. The governing board wants to take action against the administrator. What type of commercial liability would the board need to provide for this risk? A. Fiduciary liability policy paid by the pension fund B. Employee dishonesty bond C. Personal injury liability D. Fiduciary liability owned by the administrator

A. Fiduciary liability policy paid by the pension fund Fiduciary liability covers individuals who administer pension or employee benefit plans and have fiduciary responsibility to manage the funds in the best of the plan participants. If the premiums for fiduciary liability insurance are paid by the fund, by law the policy must allow for subrogation against the individual trustees

The commercial general liability Coverage Part A - Bodily Injury and Property Damage provides coverage for which of the following? A. Premises B. Hired Autos C. Employers D. Machinery

A. Premises Premises, operations, products and completed operations coverage are included in a general liability coverage part

For there to be negligence liability, all of the following must exist EXCEPT A. Proximate cause between the wrong and the injury or damage B. A reasonable expectation that the act may cause injury or damage C. A breach of the legal duty which results in injury or damage to another person D. A legal duty to act, or to not act, under the circumstances

B. A reasonable expectation that the act may cause injury or damage Liability insurance covers injury or damage to others that is neither intended nor expected by the insured.

Homeowner policies consider all of the following insured locations EXCEPT A. The hotel ballroom rented by the insured for a family reunion B. A strawberry patch owned by the insured C. Land owned by the insured on which his new home is under construction D. An individual cemetery plot

B. A strawberry patch owned by the insured Insured location cannot contain farmland or any premises used for business purposes

An insurer who transacts insurance in this state but whose articles of incorporation are registered in Canada is considered what type of insurer? A. Foreign B. Alien C. Unauthorized D. Surplus Lines

B. Alien

Underwriters use all of these methods to protect the insurer against adverse selection EXCEPT A. Refusing to accept a risk B. Only accepting a small percentage of applicants C. Accepting certain risks only at a higher rate D. Restricting coverage

B. Only accepting a small percentage of applicants Underwriters protect the insurer against adverse selection by restriction of coverage, acceptance of certain risks only at a higher rate, and refusal to accept the risk

Which of the following clauses excludes assignment or granting of policy provisions to any person who repairs property for a fee? A. Third-party clause B. Indemnity clause C. No benefit to bailee clause D. Subrogation clause

C. No benefit to bailee clause The no benefit to bailee clause excludes any assignment or granting of any policy provisions to any person or organization holding, storing, repairing, or moving insured property for a fee.

Broad form provides coverage for which of the following perils? Riot Theft Glass breakage Smoke

Glass breakage Glass breakage is a peril that is covered on a broad-perils-form basis. Additional perils covered on broad form include ice and snow weight, freezing of pipes, collapse, falling objects, and electrical damage.

To obtain the broadest coverage available for an owner-occupied dwelling, the insured should purchase which type of homeowner's policy? HO-6 unit-owners form HO-2 broad form HO-8 modified coverage form HO-5 comprehensive form

HO-5 comprehensive form

To obtain the broadest coverage available for an owner-occupied dwelling, the insured should purchase which type of homeowner's policy? HO-6 unit-owners form HO-2 broad form HO-5 comprehensive form HO-8 modified coverage form

HO-5 comprehensive form HO-5 provides dwelling, other structures, and coverage on an open-perils basis. The HO-5 provides the broadest coverage form of all the HO policy forms.

Which portion of an insurance policy states that the insurance company will make payment in the event a covered loss occurs? Insuring agreement Declarations Exclusions Conditions

Insuring agreement The insuring agreement states the insurance company will make payment if a covered loss occurs, subject to any conditions or exclusions contained in the policy. This declarations page states the policy owner's name and also who is responsible for making premium payments and entitled to the return of any premiums for a cancelled policy. Exclusions exclude coverage for losses resulting from certain events.

Which hazard is defined as intentionally causing, fabricating, or exaggerating a loss? Legal hazard Physical hazard Morale hazard Moral hazard

Moral hazard A moral hazard is defined as intentionally causing, fabricating, or exaggerating a loss. An example of a moral hazard is someone exaggerating the extent of damage from an accident in order to receive more money from the at-fault parties' insurance carrier.

Sara is the owner of a gift shop that was struggling to make enough money to cover its bills. Sara knew there were reports of robberies in the area but continued to leave the doors to the store unlocked after she would leave at night. Sara figured if her store was robbed she could collect the insurance money and pay off some debt. Sara's carelessness is an example of what type of hazard? Legal hazard Moral hazard Morale hazard Physical hazard

Morale hazard Sara acted carelessly because she knew her insurance would cover any losses from a robbery to her store. Sara is acting in a reckless manner that may lead to insurance claims being paid that could have been otherwise avoided.

There are four types of hazards that cause a loss. An insured failing to salt and shovel her sidewalk after a snowstorm presents what type of hazard? A. Moral hazard B. Morale hazard C. Legal hazard D. Physical hazard

Physical hazard

Risks can be classified as pure or speculative. Which of the two, pure or speculative, is always undesirable? Neither Speculative Pure Speculative and pure

Pure Pure risk is always undesirable. A pure risk results in either a loss or no loss. A speculative risk has the chance there will be a gain.

Risks can be classified as pure or speculative. Which of the two, pure or speculative, is always undesirable? Neither Speculative Speculative and pure Pure

Pure Pure risk is always undesirable. A pure risk results in either a loss or no loss. A speculative risk has the chance there will be a gain.

Special forms coverage is coverage on a DP policy form that combines broad form perils with what other form of perils? Special perils Open perils Modified perils Basic form perils

Special forms coverage is coverage on a DP policy form that combines broad-form perils and open perils. The open perils are for the dwelling and other structures while the broad form is provided for personal property.

An unendorsed DP-3 policy does not provide coverage for which of the following exposures? Garages Theft Storage sheds Debris removal

Theft

What is the name of the insurance principle that refers to an insurer giving up its right to recover money or damages paid out to the insured from another party? Subrogation Subrogee Waiver Waiver of Subrogation Subrogor

Waiver of Subrogation Subrogation is the insurance principle referring to an insurer stepping into the shoes of the insured to recover money or damages paid out to or on behalf of the insured from another party. Waiver of subrogation is the insurance principle referring to an insurer giving up that right. The person from whom the insurer seeks recovery usually caused the loss requiring the payout.

How soon from the occurrence of a workplace accident must an employer report to the Worker's compensation board? A. 10 days B. 20 days C. 30 days D. 60 days

a. 10 days Failure to report workplace accidents to the WC boards within 10 days after the employer learns of the injury is a misdemeanor punishable by a fine.

The deductible does each of these EXCEPT: reduce loss costs. lower premium costs. indemnify the insured. excludes payment for small claims.

indemnify the insured.

Each of the following involves pure risk EXCEPT: bodily injury drought loss in the stock market flood

loss in the stock market

Blue Cross and Blue Shield is a health care provider that issues contracts on a/an' A. Service basis B. Indemnity basis C. Conditional basis D. Reimbursement basis

A. Service basis

Although a businessowners policy will cover fire damage legal liability, which of the following statements is true? A. The general aggregate does not apply to fire damage legal liability B. Pollution caused by fire will be covered because pollution is covered in a BOP C. There is a limit of $500 set on fire damage legal liability D. The general aggregate applies to fire damage legal liability

A. The general aggregate does not apply to fire damage legal liability In addition, the policy covers fire damage legal liability. A separate aggregate limit of insurance also applies to the products/completed operation hazard, and a general aggregate to all other injuries or damages, including medical expenses. The general aggregate does not apply to fire damage legal liability.

Under Coverage C, and at the request of an insured, personal property of a guest or residence employee is covered A. While it is in any residence premises occupied by an insured B. While it is any residence premises occupied by a named insured C. Anywhere in the world D. Only while on the residence premises

A. While it is in any residence premises occupied by an insured At the request of an insured, personal property of a guest or residence employee may be covered while it is in any residence occupied by an insured

Which of the following commercial auto coverages provides protection for most commercial auto exposures except truckers, garages, and motor carriers? A. Commercial Carrier Coverage B. Business Auto coverage C. Business auto physical damage coverage D. Named nonowner coverage

B. Business Auto coverage Business auto coverage covers most commercial auto exposures, except truckers, garages, and motor carriers

An insured is injured while driving his own car. Which of the following coverages will pay for the loss? A. Part A- Liability B. Part B - Medical Payments C. Part C - Uninsured motorist D. Part D - Damage to your auto

B. Part B - Medical Payments Medical payments coverage pays all necessary medical and funeral expenses incurred and services rendered to the insured or any other person while occupying a covered auto

The defendant being released on a surety bail bond is the A. Obligee B. Insured C. Principal D. Surety

C. Principal The defendant had made a promise to show up in court at the specified time. The principal makes a promise to perform.

Lost treasures has a guard dog in a fenced lot to protect the salvage yard. The dog scared a passerby, who now claims that it was a traumatic experience and that he now suffers from reoccurring nightmares. A claim for personal injury of $5,000 is files against Lost Treasures. Why will the personal and advertising injury section (Coverage B) of the CGL policy cover this claim? A Animals are excluded from coverage B. The injury was expected or intended C. The occurrence was off premises D. Metal anguish is a covered injury

D. Metal anguish is a covered injury Mental anguish is covered injury under personal advertising injury liability. Of course, documentation from a licensed practitioner that mental trauma indeed resulted from this incident will be required prior to coverage .

There are four types of hazards that cause a loss. An insured failing to salt and shovel her sidewalk after a snowstorm presents what type of hazard? Physical hazard Legal hazard Moral hazard Morale hazard

Physical hazard An insured who fails to maintain his property can create a physical hazard. Physical hazards can increase the frequency of losses and lead to an increase in claims.

Coverage C - Personal Property provides coverage for the insured's personal property under what circumstance? A. While in the possession of the insured B. While on the covered premises C. Worldwide coverage D. When the insured knowingly loans the property to a family member off premises

While on the covered premises Coverage C - Personal Property covers personal property while at the location listed on the DP-3 policy. This does not provide full coverage or coverage at all for personal property while away from the location on the policy.

Coverage C - Personal Property provides coverage for the insured's personal property under what circumstance? While in the possession of the insured When the insured knowingly loans the property to a family member off premises While on the covered premises Worldwide coverage

While on the covered premises Coverage C - Personal Property covers personal property while at the location listed on the DP-3 policy. This does not provide full coverage or coverage at all for personal property while away from the location on the policy.

Chance of a windstorm causing a loss to one's property is: risk uninsurable hazard peril

risk

The Other Insurance Clause: Prohibits other insurance on the same property. Upholds the principle of indemnity. Allows coverage for catastrophic losses. Allows more than one person to be insured under the policy.

upholds the principle of indemnity.

Which of the following does not need to be included on the first page of a Medicare supplement policy? A. Premium rates B. Renewal provision C. Continuation provision D. The company's right to change premiums based on the policyholder's age

A. Premium rates Medicare supplement policies must include a renewal or continuation provision that is appropriately captioned and on the first page of the policy. It must include any reservation by the insurance company of the right to change premiums and any automatic renewal premium increases based on the policy holders age

For an additional premium, the extended coverage written on a the basic form dwelling policy would cover which of the following? A. Riot B. Vandalism C. Glass breakage D. Fire

A. Riot The seven perils included in the extended coverages include coverage for damage by riots

Which of the following exclusions would specifically fall under Coverage E? A. Land B. Contractual liability C. Bodily injury to a residence employee D. Falling objects

B. Contractual liability Coverage E is a personal liability form. The following are exclusions that apply to it: damage to property owned by or in the care of the insured; liability for any assessment charged against the insured as a member of an association; contractual liability; bodily injury to any person eligible for WC; and bodily injury to the named insured, relative , or minor residing in the household

The supplementary payments section of the commercial general liability policy would cover A. Up to $500 for the cost of required bail bonds B. Court costs assessed against the insured in a suit C. Loss of the insured earnings, up to $300 a day D. Up to the policy limit for bodily injury or property damage

B. Court costs assessed against the insured in a suit Supplementary payments are amounts the insurer will pay in addition to the stated policy limits. They include any expenses the insurer incurs, up to $250 for the cost of required bail bonds, up to $250 a day for loss of income, cost taxed against the insured, prejudgment interest that accrues on any judgement

All of the following are optional endorsements that may be added to the standard equipment breakdown coverage form EXCEPT A. Business interruption B. Debris Removal C. Utility interruption D. Extra expense

B. Debris Removal Debris removal is not an endorsement

A structure may be eligible for coverage under the National Flood Insurance Program if it meets all of the following requirements EXCEPT A. Is principally above ground B. Is entirely over water C.Is not located within the coastal barrier Resource System D.Has 2 solid walls and a roof

B. Is entirely over water An eligible structure must have 2 solid walls and a roof, be principally above ground, and not entirely over water. Certain restrictions also apply to properties if located within areas defined by the federal government as part of the Coastal Barrier Resource system or as an otherwise protected area

An applicant for property insurance owns a building in which combustible materials are stored in the furnace room. From and underwriting standpoint, the risk would most likely be considered a A. Physical Hazard B. Morale Hazard C. Speculative Risk D. Moral Hazard

B. Morale Hazard The insured's lack of caution in storing combustible materials increase the likelihood of fire or explosion. This careless attitude is an example of a morale hazard

The individual named insured endorsement offers liability coverage to the sole proprietor of a business and his or her family members. Which coverage is provided under the individual named insured endorsement of a commercial auto policy for owned passenger vehicles and nonowneed autos? A. Broadened Coverage B. Physical Damage Coverage C. Mobile Equipment Coverage D. Medical payments coverage

B. Physical damage coverage Physical damage coverage is also extended to the insured's family members for owned private passenger vehicles and nonowned autos

The amount of loss the insured is willing to absorb without insurance protection is known as A. Limit of liability B. Self-insured retention C. Maximum deductible D. Stop loss

B. Self-insured retention The SIR includes the amount of loss the insured is willing to absorb without insurance protection

Which of the following statements is CORRECT regarding business income coverage under the businessowners policy (BOP)? A. The business income coverage has a monthly limitation and a set benefit period B. The business income losses are payable for 12 consecutive months following the occurrence C. The business income coverage is subject to coinsurance limitation of 50% D. The business income coverage has an aggregate dollar limit

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

If any authorized entity fails to file an annual financial solvency statement, or does not reply to a written inquiry within 30 days, they are subject to a penalty of up to A. $100 per day of delay, not to exceed an aggregate of $5,000 for each failure B.$250 per day of delay, not to exceed an aggregate of $25,000 for each failure C. $300 per day of delay, not to exceed an aggregate of $25,000 for each failure D. $500 per day of delay, not to exceed an aggregate of $50,000 for each failure

B.$250 per day of delay, not to exceed an aggregate of $25,000 for each failure

The businessowners policy (BOP) extension coverage form for personal property off-premises is limited to A. $2,500 B. $5,000 C. $10,000 D. $15,000

C. $10,000

Which of the following would NOT be eligible for coverage under a personal auto policy? A. A nonowned temporary substitute vehicle B. A trailer owned by the insured C. A vehicle purchased 90 days ago D. A vehicle listed on the declarations page

C. A vehicle purchased 90 days ago A covered auto included automobiles listed in the declarations, owned trailers, newly acquired autos (for 30 days), nonowned temporary substitute vehicles, and additional temporary vehicles due to repair, servicing, breakdown, or loss.

A house insured with a homeowners policy has been blown off its foundation by a tornado. It must be demolished and removed so a replacement house can be built. A. It will be paid if the debris removal endorsement has been added B. HO policies do not cover debris removal C. An additional 5% of the policy limit may be paid for debris removal D. Because the full policy limit must be paid for the house, there is no coverage for debris removal.

C. An additional 5% of the policy limit may be paid for debris removal Debris removal is not an additive coverage; it is part of the policy limit. However, when the amount of loss plus the cost to remove debris exceeds the policy limit, an additional 5% of the limit may be paid for debris removal

What two policy components are part of every commercial package policy? A. Consideration and agreement B. Property coverage and liability coverage C. Common policy declarations and common policy conditions D. Common policy exclusion and agreement

C. Common policy declarations and common policy conditions Any commercial lines coverage in the program may be written independently as a monoline policy, or it may be written with other coverages as part of a package. In either case, all policies make use of the same common policy declarations page and the same common conditions. The only difference is the number of coverage parts.

Employers liability coverage under a workers compensation policy includes A. Punitive damages awarded because a worker was employed in violation of law B. Injury caused intentionally by the insured C. Damages claimed by third parties D. Injury occurring outside the United States

C. Damages claimed by third parties Employers Liability coverage protects the employer against suits arising out of an employee's injuries that are brought by third parties

What policy would a business owner whose business fills scuba tanks most likely need to insure unfired pressure vessels and compressors? A. Commercial General Liability B. Contractors equipment floater C. Equipment breakdown D. Inland marine scuba floater

C. Equipment breakdown Equipment breakdown coverage is for high-pressure systems

When reviewing a standard worker's compensation and employers liability policy, the limits of coverage are described in Part One of the policy. The dollar limits of the benefits provided are stated A. In Line Item 3(A) of the policy information page B. In paragraph 1 of Part One as directed by law C. In the state worker's compensation law itself D. On the face of the policy declarations page

C. In the state worker's compensation law itself The workers compensation and employers liability (WC&EL) policy itself does not contain dollar limits of benefits covered by the policy. The state workers compensation law directs amounts of coverage benefits provided by all policies written for employers of that state. Policy Part One also contains no exclusion of coverage.

Insurance rates developed by the underwriter based on his skill and experience instead of actuarial analysis are known as A. Experience rates B. Manual rates C. Judgement rates D. Merit rates

C. Judgement rates Underwriters develop judgement rates based on their skill and experience

Which of the following exposures is NOT covered under a homeowner policy? A. Bodily injury to others B. Personal Liability C. Medical payments to an insured D. Unscheduled personal property damage

C. Medical payments to an insured Section II of the homeowners policy provides medical payments to others but excludes coverage for the payment of medical expenses of an insured.

An insured's child ran into a neighbor's planter on his bicycle and broke the planter and ruined the plants. The cost to replace the planter was $400, and the cost to replace the plants was $100. Which section of the insured's homeowners policy would pay? A. Section I, subject to the deductible B. Section II, subject to the deductible C. Section II with no deductible D. Section I with no deductible

C. Section II with no deductible

Which of the following symbols in a business auto policy indicates that coverage for newly acquired vehicles applies if the insurer already covers all autos owned by the insured? A. Symbol 1 B. Symbol 2 C. Symbol 7 D. Symbol 19

C. Symbol 7 If symbol 7 is used, coverage for newly acquired vehicles applies if the insurer already covers all autos owned by the insured or if the newly acquired vehicle is replacing a previously owned auto that had that coverage

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 A. The liability policy of the golf course B. The property coverage of the golf course C. The golfer's homeowner's liability coverage D. The homeowner's property coverage on the house

C. The golfer's homeowner's liability coverage The insured's homeowners liability coverage is worldwide and covers damages for bodily injury or property damage to others that occur while the insured is engaged in a personal activity

Under Coverage B - Other Structures, a homeowners policy provides coverage for other structures on the residence premises. Which of the following statements is NOT true of this coverage? A.)A detached garage may be covered if rented to others as a private garage B.) Other structures may not be used to store business property of others, even though a business is not conducted from the structure C.) Any loss paid under Coverage B reduces the Coverage A limit of liability. D.) Other structures covered B must be set apart from the dwelling by clear space.

C.) Any loss paid under Coverage B reduces the Coverage A limit of liability. The automatic limit for Coverage B is 10% of the limit of liability that applies to Coverage A.

An insured was judged at fault in an automobile accident. He has the 100/300 bodily injury liability coverage. Three other individuals were injured in the vehicle hit by the insured. They were awarded damaged of $150,000, $75,000, $75,000. What amount, if any was not covered by his insurance policy? A. $100,000 B. $150.000 C. All of the damages were covered by his insurance policy. D. $50,000

D. $50,000 Awarded up to $100,000 on ONE individual. $50,000 of the $150,000 was not covered

Under normal circumstances, how long is a temporary license in this state valid for? A. 1 year B. 18 months C. Up to three 60-day terms D. 90 days

D. 90 days A temporary license is good for 90 days unless the Superintendent renews additional 90-day terms, not to exceed an aggregate of 15 months

A driver who has an auto policy with limits of liability lower than requires by state law would be considered A. An underinsured motorist B. An insured motorist C. An insolvent motorist D. An uninsured motorist

D. An uninsured motorist Someone with an auto liability policy with limits lower than those required by law should be considered uninsured.

In order to get a nonresident license in this state, an agent must A. Pass the nonresident state exam and satisfy their continuing education requirements B. Represent an agency located in this state. C. Surrender their license in their state of residence D. Apply and pay a fee to a nonresident state that reciprocates.

D. Apply and pay a fee to a nonresident state that reciprocates. An agent may apply for a nonresidential license by showing that they are in good standing as an agent in their home state and by paying a fee, if the two states reciprocate

Which of the following exposures is not covered under the garage liability coverage form? A. Premises and operations liability B. Products and completed operation liability C. Auto liability D. Contractual liability

D. Contractual liability Contractual liability, other than incidental contracts, is not covered under a garage liability coverage

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 A. U.S. Longshore and Harbor Workers Compensation Act B. Federal Black Lung Compensation C Jones act D. Federal employers liability act (FELA)

D. Federal employers liability act (FELA) The Federal Employers Liability Act was passed in 1908 to protect interstate railroad workers. It allowed the injured worker to sue the employer for negligence

Which form insures both buildings and personal property on an open peril basis? A. HO-2 B. HO-3 C. HO-4 D. HO-5

D. HO-5 Only the HO-5 form insured both the building and personal property on an open peril basis.

A scheduled personal property endorsement will be used to insure A. High value items only within the U.S. B. Personal vehicles used by travelers anywhere in the world C. Personal items at their actual cash value D. Higher limits of coverage for fine arts items

D. Higher limits of coverage for fine arts items If the insured requires higher limits for certain types of property, the scheduled personal property endorsement maybe used to schedule individually described items such as jewelry, fine arts, coins, musical instruments, cameras, etc. The coverage is worldwide

Which of the following describes an insurer's responsibility for payment under a policy, as stated in the common policy provisions? A. Consideration B. Utmost good faith C. Premiums D. Limits of Liability

D. Limits of Liability Limits of liability are the insurer's liability for payment as stated in an insurance policy.

Which is NOT true of worker's compensation coverage? A. Medical payment benefits are unlimited B. it offers death benefits C. It offers rehabilitation benefits D. Medical payment benefits are limited

D. Medical payment benefits are limited Worker's Compensation medical payments are unlimited

An employee was injured while working on a construction job-site. Upon his arrival at the hospital, it was determined that the employee was legally intoxicated. The employee will A. Be able to collect workers compensation for lost wages, but will not be compensated for his injuries B. Be able to collect workers compensation for his injuries, but will not be able to collect lost wages. C. Only be able to collect 50% of his workers compensation benefits D. Not be able to collect any workers compensation benefits

D. Not be able to collect any workers compensation benefits There is no liability for compensation of the injured employee when an injury has been the direct result of the intoxication from alcohol or a controlled substance

To collect workers compensation due to occupational disease, an employee must demonstrate A. To 100% certainty that the injury was related to the job itself or the work environment B. That the worker's lifestyle could not have contributed to the development of the disease. C. That the employer had previous knowledge of the potential for illness and failed to act prudently D. That the disease wouldn't develop from ordinary life experiences

D. That the disease wouldn't develop from ordinary life experiences Some diseases naturally result from a particular occupation. To collect workers compensation, the employee would have to demonstrate that these diseases would not develop from ordinary life experiences. Workers do not have to prove to 100% certainty that the injury was related to the job, only that it is more probable than not.

The owner of a rental dwelling, insured under DP-2, turns off the heat in the insured dwelling during winter months because the dwelling is not occupied. The building's water pipes freeze and break, causing damage. How will the policy react to this loss? A. This loss is covered B. The DP policy will pay for the pipes, but not the labor C. The DP policy will pay for the labor, but not the pipes. D. This loss is excluded from coverage

D. This loss is excluded from coverage Freezing and breaking of pipes is not covered unless the insured maintains heat in the building

When does the insurer's duty to defend a suit or claim end in a commercial general liability policy? A. When defense costs equal the applicable limit of insurance B. When both loss payments and defense costs equal the applicable policy limit C. When the insured agree to the settlement D. When loss payment equal the applicable limit of insurance

D. When loss payment equal the applicable limit of insurance Claim-related expense is paid over and above the limit of insurance. Once the limit has been paid for loss, the insurer has no further obligation to the insured

Vandalism and Malicious Mischief (VMM) is an optional coverage that can be added by endorsement to which policy? DP-3 DP-2 DP-4 DP-1

DP-1 DP-1 policies are able to add VMM coverage by endorsement. VMM is automatically included in the other dwelling policy forms.

Broad form provides coverage for which of the following perils? Glass breakage Theft Smoke Riot

Glass breakage is a peril that is covered on a broad-perils-form basis. Additional perils covered on broad form include ice and snow weight, freezing of pipes, collapse, falling objects, and electrical damage.

A tenant who does not need to buy coverage for the dwelling itself but would like to cover his own personal property should obtain which type of homeowners policy? HO-5 HO-6 HO-2 HO-4

HO-4 An HO-4 is designed to cover a tenant's personal property, but does not cover the dwelling itself. This coverage is provided on a named-perils basis.

A tenant who does not need to buy coverage for the dwelling itself but would like to cover his own personal property should obtain which type of homeowners policy? HO-4 HO-6 HO-2 HO-5

HO-4 An HO-4 is designed to cover a tenant's personal property, but does not cover the dwelling itself. This coverage is provided on a named-perils basis.

HO-2, HO-3, HO-4, HO-5, HO-6, and HO-8 are all types of homeowners policies. Which two sets of policies are not solely designed for owner-occupied dwellings? HO-2 and HO-8 HO-4 and HO-6 HO-3 and HO-4 HO-5 and HO-8

HO-4 and HO-6 HO-4 and HO-6 are not designed to be exclusive for owner-occupied dwellings. HO-4 was formed to cover a tenant's personal property. An HO-6 provides personal property coverage for an owner-occupied condominium, and also can provide coverage for co-owners of this condominium who reside there.

HO-2, HO-3, HO-4, HO-5, HO-6, and HO-8 are all types of homeowners policies. Which two sets of policies are not solely designed for owner-occupied dwellings? HO-4 and HO-6 HO-2 and HO-8 HO-3 and HO-4 HO-5 and HO-8

HO-4 and HO-6 are not designed to be exclusive for owner-occupied dwellings. HO-4 was formed to cover a tenant's personal property. An HO-6 provides personal property coverage for an owner-occupied condominium, and also can provide coverage for co-owners of this condominium who reside there.