Insurance Exam:

Which of the following is the basis for a claim against an insurance policy?

Loss

When an insurance policy does not offer a continuation or replacement as it's expiration date, it is considered a

Nonrenewal

An insured must get advance warning if the premiums will be increased by more than

15%

The Earthquake and Volcanic Endorsement added to Commercial Property policies consider all earthquake shocks as a one earthquake if they occur within what maximum time period?

168 Hours

If a policy has been in effect for at least 60 days and is due for renewal, a cancellation may only be effected for which of the following reasons?

A change in the risk that substantially increases the hazard insured against

A policy condition that stipulates how the amount of damages or lost property will be determined if the insured and the principal do not agree on the value of a property loss is known as

An Appraisal

What is the business auto coverage territory for?

United States and it's territories Canada or worldwide for private passenger hired autos

Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?

Warranty

If a liability policy had a split 50/100/30, what is the maximum amount that would be payable in the event of injury to a single person?

$50,000

Under the commercial crime coverage inside the premises- robbery or safe burglary of other property, what is the special per occurrence limit that applies to loss or damage to precious metals, precious and semiprecious stones, pearls, furs, manuscripts, drawings, or recording?

$5000

A policy that insures all property at multiple locations for a single amount is referred to as

A blanket

A person who is not named as an insured on the dec page of a policy but is protected by the policy is known as the

Additional insured

Which of the following types of valuation works best for property whose value does not fluctuate much?

Agreed value

Which of the following is NOT covered under accounts receivable coverage form?

Any loans required to offset uncollectible amounts

Under the HO-4 and the HO-6 homeowners policy forms, property is insured against

Broad form perils

All of the following are found on the declarations section of a policy except the

Exclusions

The policy conditions define

How parties to the contract must act following a loss

Which of the following coverages include dwelling and homeowners policies is for indirect losses?

Loss of use

Pertaining to insurance, what is the definition of a fiduciary responsibility?

Promptly forwarding premiums to the insurance company

A situation in which a wrap. An only loss or have no change represents

Pure hazard

The risk of loss may be classified as

Pure risk and speculative risks

Which of the following would qualify as a competent party in an insurance contract?

The applicant has a prior felony conviction

Who is responsible for filling out a notice for a claim?

The insured

If drivers complete defensive drivers course, how long will the discount apply to their premiums?

3 years

What is the title of the chief officer of the Department of Insurance?

Commissioner

Which of the following does the term proximate cause refer to?

Negligence that leads to an injury

In case of a loss, the indemnity provision in insurance polices

Restores an insured person to the same financial state as before the loss

Which of the following is not the consideration in a policy?

The application given to a prospective insured

When a direct chain of events resulting from a negligent act causes injury or damage, the act is considered to be

The proximate cause

If an insured has an umbrella liability policy in addition to his personal auto policy, which would be considered the underlying policy?

Auto policy

The mobile home endorsement alters the homeowners policy to cover a mobile home and other structures

Owned or leased by the resident of the mobile home

Which of the following clauses establishes the procedure for determining the amount of a loss when the insurer and the insured cannot agree on the value of property or amount of loss?

appraisal clause

A contract for the transport of goods between the shipper and the carrier is called

bill of lading

Which of the following risks would not be eligible for coverage under a homeowners policy?

An applicant who owns and lives on a commercial farm

A liability policy provides coverage for a claim for injury or damage if the claim is first reported or filed against the insured during the policy period is called

Claims- made form

What term best describes the act of withholding material information that would be crucial to an underwriting decision?

Concealment

Which of the following examples of losses paid under an HO-3 also would be paid under an HO-2 homeowners policy?

Damage to the dwelling caused by ash or dust from a volcanic eruption

The part of a property policy that shows the amount of insurance, premium, and policy term is

Declarations

Workers compensation will pay under which of the following situations?

Paid without consideration of fault or negligence on the part of either employee or employer

A bind is written for a set limit, and the surety will be liable only for this amount of the limit. The limit is known as the

Penalty

Who would participate in a Write Your Own (WYO) flood insurance program?

Private insurers that wish to write and service National Food Insurance polices on a no-risk bearing basis

Which of the following liability policies is usually written on a "claims-made" form?

Professional liability insurance

Under the commercial property coverage program, the basic causes of loss form insured against loss caused by

Sprinkler leakage

The common policy condition is a modular part combined with other parts to create the contract. The common policy condition section contains provisions that are applicable to all lines of coverage that may be included in the policy. Which of the following provisions would be found in the common policy conditions section of the policy?

The first named insured may cancel the policy at any time by giving written notice to the insurer

Which of the folllwkng statements is true concerning a bonded contractor who defaults on a a construction performance contract?

The obliges may engage another contractor then seek reimbursement fro the surety

Who would participate in a Write Your Own flood insurance program?

Private insurers that wish to write and service National Flood Insurance policies on a no-risk bearing basis

Employment practices liability insurance would not cover claims arising from

Deliberate law violation

A beauty parlor burns to the ground. What type of loss is this to the owner?

Direct

What term includes damage where the insured peril was the proximate cause of loss?

Direct Loss

Which of the following special liability coverage will provide protection to managers of a corporation for claims arising from a wrongful act committed by the manager while in an official capacity?

Directs and officers liability

CGL Coverage B - Personal and Advertising Injury will cover

Inadvertent injury to others caused in the course of advertising the insured's product

An additional loss that results from a direct loss of property is called an

Indirect loss

Which of the following special liability coverages will provide protection to managers of a corporation for claims arising from a wrongful act committed by the manager while in an official capacity?

Directors and officers liability

How long is the waiting period after the application has been accepted before flood coverage goes into effect?

30 days

I'd the premiums for a policy sill increase by more than 15 percent, how much wanting must the insured get?

45 days

A startup used car dealership buys cars at auto auction in 30 states. It wants to be certain that damage coverage is provided when the cars are driven or transported from the auctions to the dealership. In regard to business auto physical damage coverage, which is true?

Coverage is provided at additional premium

A personal liability policy will provide coverage for loss in all of the following cases except, when the insured doctor was shown to be

Criminally negligent

A property insurance policy that is not subject to any coinsurance requirements but has set amount of insurance scheduled for the property would use what loss valuation method?

Stated Amount

The policy provision found in property insurance that prevents the insured from collecting twice for the same loss is called

Subrogation

An auto owner in this state has a motor vehicle coverage with the limits 25/50/25z All of the following are true Except

The driver must obtain new insurance

When an I'm fella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays

The exces over the self-insured retention

All of the following are true statements regarding the supplementary payments of a commercial general liability policy except

They pay defense costs even after the aggregate limit has been reached

If an insurer meets the states financial requirements and is approved to transact business in the state, it is considered to be

Authorized

To purchase insurance the policy owner must have financial interest in the property being insured. This is known as

Insurable Interest

How does the mobile home endorsement affect the other coverage of law or ordinance in a homeowners policy?

It removes the coverage

An insured's 9 year old son threw a baseball accident breaking a neighbors plate glass window. The insured was found guilt legally liable for the cost of replacing the window. This is an example of

Vicarious liability

All of the following are conditions commonly found in the insurance policy expect

Insuring agreement

Untrue statements on the application unintentionally made by the insureds that, I discovered would alter the underwriting decision of the insurance company are called

Material misrepresentation

An agent t commingled $500 of insurance premiums collected with the new applications with his personal funds. The agent could be found guilty of a

Misdemeanor

All of the following statements concerning coins Jean each are true except

The coinsurance formula will also be applied to total losses

With respect to commercial auto polices, the Garage Coverage Form provides liability protection for all the following except

The insureds business income loss due to injury