Insurance Exam 14

Mark is injured at work in a state that provides a TTD benefit at 66 2/3%, the state minimum is $40 and the state maximum is $540. The waiting period is 3 days and the retroactive period is 15 days. Which of the following is Mark's TTD benefit if he earns $20 per hour and usually works a 40-hour week. Mark is injured on July 14th and does not return to work until September 3rd. Which of the following is the amount of TTD benefit he would have received? Answer Choices: $2,666.65 $3,696.00 $3,809.50. $4,266.64

$3,809.50

Under the "additional coverages" contained in Section II of the Homeowners forms, damage to "property of others" will not be covered if that damage was caused intentionally by an insured who is at least: Answer Choices: 13 years of age. 15 years of age. 16 years of age. 18 years of age.

13 years of age.

All Texas adjusters are required to complete 24 hours of continuing education each reporting period. How many of those hours must cover the subject of "ethics"? Answer Choices: 3 hours 2 hours 1 hour 4 hours

2 hours

The coverage extension "Business Personal Property Temporarily in Portable Storage Units" will provide $10,000 of coverage for up to: Answer Choices: 60 days 120 days 90 days 30 days

90 days

Drew's agent is putting together a Commercial Property policy for him. The declarations page, the conditions page and several endorsements have been included. Which of the following must still be included to complete the policy? Answer Choices: A limit of liability form. A policy provisions form. An deductible form. A cause of loss form.

A cause of loss form.

Which of the following would not need an inland marine policy to cover its stock? Answer Choices: A jeweler A furrier A grocer The owner of a valuable coin collection

A grocer

which of the following are NOT required to hold an adjuster license in Texas? Answer Choices: A person working for a third-party administrator who adjusts workers' compensation claims. A person who works for an insurer and adjusts claims on losses that do not exceed $500. A person who works for a surplus lines company adjusting yacht losses. A person working for an insurer who adjusts automobile liability claims.

A person who works for an insurer and adjusts claims on losses that do not exceed $500.

Which of these statements best describes "the law of agency?" Answer Choices: The activities of any party who receives a percentage of the profits from a business transaction. A relationship in which someone is authorized by contract to represent another party. The duties of a professional who is trained and licensed to prepare legal documents. The activities of any licensed insurance professional.

A relationship in which someone is authorized by contract to represent another party.

Which of the following is the BEST explanation as to the reason insurance policies are called "unilateral contracts"? Answer Choices: Because the insurance contract will only restore one party to the contract to his or her previously held financial position. Because insurance contract is based on the insured's personal insurable interest. Because the insured is the only party to the contract that is required to pay a premium. Because the insurance company is the only party to the contract that can be sued if they do not meet the terms.

Because the insurance company is the only party to the contract that can be sued if they do not meet the terms.

Jack Tate ignores the safety warnings and instructions when setting the controls of the steam boiler and as a result, the boiler explodes. Jack carries Equipment Breakdown coverage. The adjuster for Pressure R Us Insurance Company may do which of the following? Answer Choices: Deny coverage under the intentional errors & omissions exclusion Settle the loss at Actual Cash Value Pay for the loss of the boiler, but deny any expediting expense coverage due to the error on Jack's part All of the responses apply

Deny coverage under the intentional errors & omissions exclusion

Pete is covered under a Personal Auto policy with Indemnify Insurance when his car is stolen. Six months pass, Pete's car is never found and the policy period with Indemnify expires. Pete decides to purchase another Personal Auto policy with Fiduciary Insurance, Inc. Pete is covered under the policy with Fiduciary for about three months, when his stolen automobile is found with only minor physical damage. How will this claim be handled? Answer Choices: Indemnify and Fiduciary will split the claim according to their percentage of liability. Indemnify Insurance will pay the claim. Fiduciary Insurance will pay the claim. The claim will not be covered.

Indemnify Insurance will pay the claim.

A furrier customers policy does not cover: Answer Choices: Property in the custody of the insured. Property owned by the insured's customers. Loss in excess of the value of the property as declared by the owner. The furrier's liability as a bailee.

Loss in excess of the value of the property as declared by the owner

An alternative dispute resolution (ADR) method by which disputing parties use a neutral outside party to examine the issues and develop a mutually agreeable settlement is known as: Answer Choices: Appraisal. Arbitration. Mediation. Negotiation.

Mediation.

Aiden is reimbursed by his insurance company for the cost of a new sofa, after a 10-year-old sofa is destroyed by fire. Which of the following best describes the loss settlement method used in this situation? Answer Choices: Replacement cost. Agreed value. Actual cash value. Stated value.

Replacement cost.

Which of the following types of property may be insured under a furriers block policy? Answer Choices: Stocks of furs owned by the insured furrier. Customer's furs entrusted to the furrier for storage. Furs or pelts on the premises of a breeder. Fur garments sold and delivered to customers.

Stocks of furs owned by the insured furrier.

Katrina has her commercial building covered by a Commercial Package policy. Which if the following is the section within her policy where she would see the dimensions of her building listed? Answer Choices: The Common policy declarations page of the CPP. The Commercial Property declarations page. The CPP conditions section. The Commercial Property conditions section.

The Commercial Property declarations page

Which of the following would NOT be covered under the HO-2 form? Answer Choices: A neighbor damages the insured's fence with his vehicle. A $500 diamond ring is stolen from the insured premises. The insured hits and damages his fence with his car. A log rolls out of the fireplace and causes fire damage to the rug.

The insured hits and damages his fence with his car.

Under "Coverage A - Building" of the BOP form, which of the following is NOT covered? Answer Choices: Completed additions, and additions under construction All permanently installed fixtures, machinery and equipment Outdoor fixtures Valuable papers and records

Valuable papers and records

Under "pollution cleanup and removal" coverage under the standard ISO BOP form, when must a loss be reported? Answer Choices: Within 180 days Within 60 days Immediately Within 90 days

Within 180 days

Under a watercraft policy, which of the following would be covered? I. Bodily Injury II. Property Damage III. Medical Payments to Others Answer Choices I and II II and III only I, II and III I, and III

I, II and III

The ACV settlement under a property insurance policy may be determined using "broad evidence rule", which means that the loss is valued: Answer Choices: At the cost to replace the property, minus depreciation. By mediation. By establishing the value of the property using any evidence a court finds relevant. By arbitration.

By establishing the value of the property using any evidence a court finds relevant.

Does an aircraft policy cover a loss involving an unapproved pilot operating an insured aircraft? Answer Choices: Yes, if operating in the covered territory Yes, if operating in the state in which the aircraft is registered No, a loss involving an unapproved pilot is excluded Yes, in flight under any conditions requiring special permit or waiver from the FAA

No, a loss involving an unapproved pilot is excluded

All of the following are "Duties of the Insured" in case of a loss under the 1943 New York Standard Fire policy, EXCEPT: Answer Choices: Provide the insurer with an immediate written notice of loss. Within 30 days submit a signed proof of loss stating the time and origin of the loss. Separate damaged and undamaged property and put it in the best possible order. Protect the property from further damage.

Within 30 days submit a signed proof of loss stating the time and origin of the loss 60 DAYS NOT 30 DAYS

Which of the following would be covered under a Personal Umbrella policy? Answer Choices: An insured who is sued for failing to provide a professional service as promised. A loss assessment made against the insured as a member of her neighborhood's property owners association. An insured who commits an intentional act of violence to protect his family. An insured who commits an intentional act of physical abuse.

An insured who commits an intentional act of violence to protect his family.

Homeowners policies provide personal liability coverage that follows an insured anywhere in the world under: Answer Choices: Coverage E. Coverage A. Coverage F. Coverage D.

Coverage E. E - EVERYWHERE

Which of the following conditions is not found in the commercial inland marine conditions form? Answer Choices: Appraisal Pair, Set or Parts No Benefit to Bailee Maintenance of Security Systems

Maintenance of Security Systems

Each of the following is true about Homeowners Coverage C - Personal Property coverage, EXCEPT: Answer Choices: The HO-8 does not include coverage for personal property. Personal property of a guest may be covered. The full limit applies to personal property anywhere in the world. Special limits of liability apply to some types of personal property.

The HO-8 does not include coverage for personal property.

A policy provision that prescribes a method for resolving a disputed claim regarding the value of property or the amount of a property loss is known as: Answer Choices: The arbitration clause. The appraisal clause. The valued policy clause. The mediation clause.

The appraisal clause.

All of the following are advantages of purchasing workers' compensation insurance from a private carrier, EXCEPT: Answer Choices: The insurer bears the costs of the claims investigations and claims payments. The ability to purchase "employer's liability" coverage as part of the policy. The high deductibles. The ability to purchase "other states" insurance as part of the policy.

The high deductibles.