Guaranty exam wrong answers

During policy solicitation, an insurer exaggerates the financial condition of one of its competitors, and makes it sounds worse than it is. This is an example of an unfair trade practice of

defamation

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

the common policy declarations and the common policy conditions

Business auto coverages apply only to those autos that are identified as covered autos in the declarations by entry of the appropriate numerical symbol. Which symbol affords the broadest coverage,

1

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

10% of Coverage C anywhere in the world

An employer may purchase workers compensation coverage through the state workers compensation assigned risk if they were denied coverage by at least how many other insurers?

2

Premiums collected on behalf of the insurance company by an agent will be held in what capacity?

Fiduciary

The equipment breakdown coverage form does NOT provide coverage for:

Bodily injury liability

In order to receive transportation expenses under the personal auto policy following damage to your auto caused by collision, you must have:

Collision coverage

An insurers limit of liability applies to a total of damages for bodily injury and property damage resulting from one accident, which may be used in any combination of amounts, not to exceed the single limit. What type of limit does this insured have?

Combined single

Which of the following authorities determines whether a cease and desist order should be issued?

Commissioner

What exposure is not covered under garage liability coverage form?

Contractual liability

Which dwelling policy requires insurance to equal to at least 80% of the replacement value of the dwelling at the time of loss in order to provide replacement cost coverage?

DP-2 and DP-3

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

Which type of authority is found in the agents contract?

Express

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 the 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?

Fiduciary liability policy paid by the pension fund

Only the____ May request a change in a policy

First named insured

A scheduled personal property endorsement will be used to insure:

High linitd of coversge for fine arts items

What coverage form in the farm policy insured equipment on an open peril basis?

Mobile agricultural machinery and equipment

What best defines the unfair trade practice of rebating?

Offering an inducement of something of value not specified in the policy

The others' states insurance section of a workers compensation policy provides coverage:

Only for those other states listed in the policy

The extended non owned coverage provides protection to:

Only the persons named on the policy

What kind of coverage does Form DP-3 provide?

Open peril

What is not included in a garage policy?

Physical damage on a customers auto

The commercial general liability coverage Part A- bodily injury and property damage provided coverage for:

Premises

A homeowners policy conditions that states that insurance applies separately to each insured is known as:

Severability

Federal act that covers crews of ships

The jones act

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

There is no additional premium

What is an insured contract?

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

What's the purpose of the ordinance or law coverage endorsement?

To remove the exclusion of losses resulting from ordinance or laws

An agent tells an insured that if he replaces his current insurance policy with a newer one, his dividends will be higher and his premiums will be slightly lower. The policy, however, wouldn't offer this. What type of misrepresentation is being committed?

Twisting

Guarantees information explained in the contract is true:

Warranty

When does the insurers duty to defend a suit or claim end in a commercial general liability policy?

When loss payments equal the applicable limit of insurance