guaranteed exam

The maximum monetary penalty for an agent who violates an insurance law, rule, or order is

$25,000

The personal property off -premises extension of dwelling forms provides limits of coverage up to

10% of Coverage C anywhere in the world

According to business property coverage form vacancy condition, if a policy is issued to the owner of a building will be considered vacant if what portion of the square footage is unused

69%

An insured is the owner of a clothing boutique. She has a Floor Plan Merchandise Floater to cover the property that is financed until it is sold. At closing time a month ago, she noticed that very expensive dresses had been stolen. However, she did not file a report to her insurance company until recently. How much will her insurer pay for this loss? a. 100% of the limit written b. nothing c. 50% of the limit written d. 90% of the limit written

90% of the limit written

Which of the following risks would be eligible for coverage under a dwelling policy form?

A duplex that is occupied by two families, each of which have a bedroom rented to a boarder

With regard to homeowners Section II, which of the following does NOT meet the definition of insured location?

A plot of farmland owned or rented by the insured

Homeowners policies consider all of the following insured locations EXCEPT

A strawberry owned by the insured

Under the garment Contractor Floater of an inland Marine policy, coverage while the property is in transit between the insured and the subcontractor is usually written on which basis

All-risk

Under a commercial general liability policy, which of the following is NOT considered mobile equipment?

An automobile used as a company car by a real estate company

All of the following persons would be covered under a business auto policy EXCEPT

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

When an insured and her insurer could not agree on the amount of liability loss after the accident, the settlement was submitted to someone whose decision was then binding on both parties. What policy condition was applied?

Arbitration

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

Auto collision coverage

Which of the following components is NOT part of a policy structure

Benefits

Which of the following will be covered by businessowners property coverage form?

Buildings and business personal property

Insurers CANNOT transact insurance in this state without a?

Certificate of Authority

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

Common policy declarations and common policy conditions

Which of the following exclusions would specifically fall under Coverage E in Homeowners inurance?

Contractual liability

The supplementary payments section of the commercial general liability policy would cover

Court costs assessed against the insured in a suit

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

Damage to property's owned by the insured

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

Employee Theft

An executive is accused of sexual harassment. What type of coverage would respond?

Employment practices liability

Which of the following statements is true regarding personal injury (PIP) coverage in auto liability policies issued in this state

The insured may reject this coverage in writing

All of the following are considered insured under the hired and nonowned auto liability endorsement added to a business owners policy EXCEPT

The owner of a nonowned vehicle

Under an H0-2 policy, the insurer will pay no more than the actual cash value of the property damage until

The property repair or replacement is complete

Which of the following statements regarding surety bonds is true

The purpose of the surety bond is to guarantee that specific duties or obligations will be fulfilled

An insured has decided to never drive another vehicle and wants to transfer his auto insurance policy to his wife. What does the insured need to transfer the policy?

The written consent of the insurer

Under the employee theft coverage, when a covered employee is found to have participated in a dishonest act, the coverage for that employee will terminate

immediately

An agreement that is enforceable by law is known as what kind of contract?

legal

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

An insured's negligance

When would uninsured motorist coverage apply under a personal auto policy?

An insured is involved in an auto accident with another motorist who is at fault and does not have any insurance

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

Equipment breakdown

Which of the following injuries may be covered under Coverage C-Medical Payments of a commercial general liability policy?

Injuries to a member of the general public that occurs on premises

Which of the following provisions is usually found in homeowners policies and provides a replacement cost settlement to policyholders who carry adequate insurance?

Insurance to value

Which of the following describes an insurer's responsibility for payment under a policy, as stated in the common policy provision

Limits of liability

Agents may be found guilty of defamation if they make a false statement that is intended to? A) malign another insurance company. B) mislead a prospect about a policy's term of coverage. C) misrepresent the benefits payable under a policy. D) defraud an insured or a claimant.

Maliciously criticize another insurance company

An insurance company that is owned by the policyholder is called a

Mutual Insurer

Which statement best describes agreement as it relates to insurance contracts?

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

What kind of coverages does From DP-3 provide

Open Peril

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

Policy

Which of the following is NOT available in a package policy?

Professional policy

Which of the following would NOT be covered under the directors and officers liability coverage

Reimbursement for fines and penalties

An applicant for a disability insurance policy has a heart condition of which they are unaware and therefore they answer no to the question pertaining to heart problems on their application. their answer is considered to be a

Representation

Which of the following is a method of establishing a premium on large commercial land

Retrospective rating

The amount of loss the insured is willing to absorb without insurance protection is

Self-insured retention

All of the following statements regarding personal property coverage in the homeowners program are correct EXCEPT

The H0-3 policy covers the mysterious disappearance of personal property

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

There is no additional premium

An insurer may decline to renew a homeowners policy if the insured has filed how many claims under the policy in any 3-year period?

Three or more

What is the main distinction between a hired auto and a nonowned auto?

Who owns the auto

Claims from which of the following types of insurance will be covered by the Texas Property and Casualty Insurance Guaranty Associates?

Workers Compensatin

While engaged in a pick-up soccer game in the neighborhood park, the insured collides with another player, breaking his nose. Would the insured's homeowners medical payments cover the injury?

Yes, medical payments coverage also applies off the insured premises

Your friend's dog that you are keeping while the friend is out of town bit a visitor in your home. Does your homeowners liability coverage apply?

Yes, the coverage would apply for any animal in your care