Insurance Exam - NEW
Boiler and Machinery coverage is written with a single limit of insurance per accident. However; what is the sub limit for hazardous substance cleanup or repair or replacement of contaminated property?
$25,000
The businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period?
1 year
Under businessowners policy Section I; if an insurer wants to nonrenew a policy for nonpayment of premium; how many days before the expiration date must the insurer notify the mortgageholder?
10 days
To satisfy Florida Financial Responsibility Law requirements an automobile liability policy must be written with limits no less than
10/20/10
For how many days of skilled nursing facility care will Medicare pay benefits?
100
Under special circumstances continuing education requirements may be extended beyond the 2-year period for a maximum period of
12 months
Under special circumstances; continuing education requirements may be extended beyond the 2-year period for a maximum period of
12 months
Under special circumstances continuing education requirements may be extended beyond the 2-year period for a maximum period of
12 months.
Johanna purchased a National Flood Insurance policy 10 days after her community entered an emergency program. When would her coverage be effective?
12:01 am the day after the application and premium payment are mailed
Under the additional living expenses coverage if a civil authority prohibits the insured from using the dwelling because of direct damage to a neighboring location from a peril covered in the insured's policy loss would be covered for up to
2 weeks
Following hospitalization because of an accident Bill was confined in a skilled nursing facility. Medicare will pay full benefits in this facility for how many days?
20
Within how many days must a property insurer pay on a claim after the settlement is reached?
20 days
Coverage for medical payments under a personal auto policy applies to expenses following a covered accident that are incurred and services rendered within what maximum time period?
3 years
An insured's driver's license was revoked 90 days after his auto insurance policy was issued. If the insurer chooses to cancel the auto insurance policy; it must give the insured a minimum of how many days' notice?
45 days
An insured's driver's license was revoked 90 days after his auto insurance policy was issued. If the insurer choses to cancel the auto insurance policy; it must give the insured a minimum of how many days' notice?
45 days
An insured owns and operates a rand. The insurance has several vehicles that are used in the ranching operation and for personal use. Which of the following could NOT be insured under ta personal auto policy?
A Two-ton grain truck with a 6,500 capacity
Professional photographers and musicians may insure their equipment with
A commercial articles floater.
Which of the following is covered under the Camera and Musical Instruments Dealers floater?
A customer's camera left at a camera shop for repair
Most fidelity bonds have a period of time in which losses which occurred while the bond was in force are covered even though not found until after the coverage has terminated. This is known as
A discovery period
When an insurance purchased a health insurance policy; he asked his agent to explain the difference between a policy that is guaranteed renewable and a policy that is non-cancellable. Which of the following would be a correct response to this question?
A guaranteed renewable policy's premium rate may be changed by the insurer for an entire class of policyholders; and under the non-cancellable policy the rates cannot be changed
In which of the following situations would the jewelers block extension cover a loss?
A jeweler fixes a necklace and sends it by registered mail to the owner. When the necklace arrives, it has been damaged.
Coverage F (medical payments) under a homeowners policy would cover
A residence employee who is injured on the job.
A group blanket health policy is best suited for which of the following?
A summer camp
With respect to the personal auto policy which of the following vehicles could be classified as a nonowned auto?
A vehicle that is titled to another person, but is being used with permission by an insured
What type of liability would a person who owns wild animals have?
Absolute
The insured's health policy only pays for medical costs related to accidents. Which of the following types of policies does the insured have?
Accident-only
Which of the following is NOT covered under a long-term care policy?
Acute care in hospital
Which part of an insurance policy covers claims-related expenses; reasonable expenses incurred by an insured to protect damaged property from further loss or defense expenses?
Additional coverage
Which part of an insurance policy covers claims-related expenses; reasonable expenses incurred by an insured to protect damaged property from further loss; or defense expenses?
Additional coverage
Which of the following coverages is NOT included in the basic form dwelling policy?
Additional living expense
Which of the following is true regarding branch agency licensing?
Agent in charge must be licensed.
In which of the following types of property valuation will the policy pay the full value as specified on the policy schedule
Agreed value
In which of the following types of property valuation will the policy pay the full value as specified on the policy schedule regardless of the insured property's appreciation or depreciation?
Agreed value
In which of the following types of property valuation will the policy pay the full value as specified on the policy schedule; regardless of the insured property's appreciation or depreciation?
Agreed value
Which of the following is exclusively self-appointed?
An independent adjuster
Which of the following is NOT covered under accounts receivable coverage form?
Any loans required to offset uncollectible amounts
If an insured has an umbrella liability policy in addition to his personal auto policy; which would be considered the underlying policy?
Auto Policy
Which of the following would NOT be covered under the liability section of a personal auto policy?
Bodily injury caused by the insured's negligence while driving a three-wheel all-terrain vehicle
Which of the following other coverages is NOT included in the basic form dwelling policy?
Breakage of glass
Homeowners policies provide coverage for
Business property while on the residence premises.
How are state Insurance Guaranty Associations funded?
By their members - authorized insures
Which of the following must an insurer obtain in order to transact insurance within a given state?
Certificate of authority
An insured was involved in an automobile accident for which the insured was at fault. Which of the following coverages would pay for damage to the insured's automobile?
Collision
An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. The neighbor who was sitting on the porch is injured. The insured's liability policy has a limit of $500000. This amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does the insured have?
Combined single
Which employee fidelity bond pays no more than its limit of liability for each separate occurrence no matter that several separately identifiable employees were involved in a single loss?
Commercial blanket position
What are the two major sections of commercial crime policies?
Commercial entities and government entities
A professional who wants coverage for all liability exposures should purchase what form of liability insurance?
Commercial general and professional
Who will transport the property of anyone who hires them?
Common carriers
What is the legal defense that can be used in most states in which proportionate damages may be awarded when both the plaintiff and defendant were negligent?
Comparative negligence
Which of the following is a statutory defense?
Comparative negligence
A builder's risk form is most often written as which of the following?
Completed value form
All of the following are characteristics of limited sinkhole coverage EXCEPT
Coverage is mandatory under catastrophic ground cover collapse
What type of insurance can be obtained through a surplus lines insurer?
Coverage that is unavailable through authorized insurers
The designation symbols used in commercial auto policies can be found in which policy section?
Covered Auto
A health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is known as
Critical illness.
Which of the following would NOT be classified as a result of catastrophic ground cover collapse?
Damage to property contents
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
Which of the following is a mandatory part of an insurance policy that varies with each individual policy?
Declarations
In property and casualty insurance; what is the term for the amount of a loss that the insured must cover out of pocket; and the insurer will only pay for the additional amount of the loss above this limit?
Deductible
In Florida the Financial Responsibility Law is administered by
Department of Highway Safety and Motor Vehicles.
What term includes damage where the insured peril was the proximate cause of loss?
Direct 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
Which commercial crime form would provide coverage for a loss that did not necessarily happen during the policy period but was revealed during the policy period?
Discovery form
Who can provide skilled nursing care?
Doctor
Because of the history of cancer in her family Julie purchased a policy that specifically covers the expense of treating cancer. Her policy would be classified as what type of policy?
Dread Disease Policy
Under the examinations of books and records condition; the insurance company has the right to examine and audit the insured's books and records related to the policy
During the policy period and for up to 3 years after the termination of the policy.
In addition to the common policy conditions; all of the following conditions apply to liability coverage EXCEPT
Employers liability
Failure of a licensee to maintain an appointment with an insurance company within 48 months after the date the license became effective will result in
Expiration of the license
Expenses that an organization would not have incurred if business interruption had not existed are known as
Extra expenses.
Which of the following would be an example of an unfair claims settlement practice?
Failing to acknowledge a claim within 30 days
Which federal act provides benefits to injured civilians who are employed by the federal government?
Federal Employees Compensation Act
No insurance policy form can be issues; delivered; or used in the state unless it has been
Filed with and Approved by the Office of Insurance Regulation
The major portion of the premium for an equipment breakdown policy pays
For inspections and examinations.
Replacement cost is defined as
Full replacement of property at its current cost new and without reduction for depreciation.
Which of the following will be covered by aviation hull insurance?
Fuselage and wings
Which of the following is another name for a primary care physician in an HMO?
Gatekeeper
What type of compensatory damages will pay for pain and suffering and disfigurement?
General
The agent in charge of an agency must hold which of the following licenses?
General lines
Which of the following statements is CORRECT concerning the relationship between Medicare and HMOs?
HMOs may pay for services not covered by Medicare
Which of the following limitations would NOT apply to a hospital and surgical expense policy?
Illness basis
The time limit on certain defenses provision in health policies deals with which of the following?
Incontestability of statements on the application
Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital?
Indemnity
The pro rata liability clause is designed to protect the principle of
Indemnity.
What is the benefit of experience rating?
It allows employers with low claims experience to get lower premiums
Which of the following NOT an indication a company is an unauthorized insurance entity?
It has many underwriting guidelines.
Which of the following is true regarding the fire department service charge under the Builders Risk form?
It is an additional coverage.
All of the following statements describe the concept of strict liability EXCEPT
It is imposed on defendants engages in hazardous activities
Which of the following is NOT true regarding a Certificate of Authority?
It is issued to a group of insurance participants
Which of the following statements concerning the builders risk coverage form is correct?
It may be written on a reporting form for the completed value of the structure.
All of the following are true of Coverage B - Other Structures in homeowners policies EXCEPT
It must be added by endorsement to a homeowners policy.
Which of the following would be considered and insured under a business coverage form
It prevents stacking of limits
One advantage of claims-made liability forms from the insurer's point of view is that
It prevents stacking of limits.
Which of the following statements is NOT true regarding a personal umbrella liability policy?
It provides errors and omissions coverage for an agency.
How does the mobilehome endorsement affect the other coverage of law or ordinance in a homeowners policy?
It removes the coverage.
Every insurer marketing Long-Term Care insurance must establish marketing procedures to ensure all of the following EXCEPT
LTC policies are marketed effectively to prospective insureds.
Which of the following would NOT be considered causes for flood conditions covered by the National Flood Insurance Program?
Landslides
For a contract to be enforceable by law the purpose of the contract must be
Legal and not against public policy.
A policy condition that states if a policy is broadened with no additional premium; then the expanded coverage will be automatically applied to all policies of the same type is known as
Liberalization clause.
An insured has a history of heart disease in his family; so he would like to buy a health insurance policy that strictly covers heart disease. What type of policy is this?
Limited Coverage
Employee fidelity may be written in all the following ways EXCEPT
Location schedule.
Which of the following will be covered by the contractors equipment floater in an unfiled inland marine insurance
Mobile equipment during transportation to and from the job site
Which of the following covers a carrier for liability for loss to cargo while it is being transported in a truck?
Motor truck cargo policy - carriers form
A participating insurance policy may do which of the following?
Pay dividends to the policyowner
An insured pays her major medical insurance annually on March 1 each year. Last March she forgot to mail her premium to the company. On March 19; she had an accident and broke her leg. Her insurance company would
Pay the claim
A building insured with commercial property insurance has been vacant for more than 60 consecutive days. Which of the following is NOT true?
Payment for unnamed perils is reduced by 25%.
A bond is written for a set limit and the surety will be liable only for this amount of the limit. This limit is known as the
Penalty
The cause of loss insured against in an insurance policy are known as
Perils
The causes of loss insured against in an insurance policy are known as
Perils
What type of coverage is Coverage E in homeowners policies?
Personal liability
Which of the following statements is INCORRECT with regards to surplus lines insurance
Policies written by a surplus lines insurer typically contain standard coverages and forms
Which of the following statements is INCORRECT with regard to surplus lines insurance?
Policies written by a surplus lines insurer typically contain standard coverages and forms.
Who might receive dividends from a mutual insurer?
Policyholders
When an insurer terminates an agent's appointment; the insurer must do all of the following EXCEPT
Provide a 30-day advance notice to the Commissioner
Which of the following is NOT provided by an HMO?
Reimbursement
In property insurance actual cash value is defined as which of the following?
Replacement cost at the time of the loss; less depreciation
A date stipulated on the declarations page of a claims-made liability form as the furst date on which an incident may occur and be covered by the policy is called:
Retroactive Date
Which policy condition in HO policies states that insurance applies separately to each insured?
Severability of insurance
Which of the following would NOT be considered a flood?
Sewer backup
A Certificate of Insurance is a written document that
Shows the types and amounts of insurance issued to the insured
An insured owns several buildings; each at a different location and insured on a separate policy. What type of coverage does the insured have?
Specific
A property insurance policy that is not subject to any coinsurance requirements but has a set amount of insurance scheduled for the property would use what loss valuation method?
Stated Amount
Which of the following insurers are owned by stockholders?
Stock
In the event of a claim under a commercial general liability policy; the insured has all of the following duties to the insurer EXCEPT
Submitting to a medical exam when requested.
Which of the following terms describes a reduced or limited amount of coverages; other than the combined single limit; that is available to pay claims resulting from passenger bodily injury?
Submlimit
Employers unable to purchase workers compensation coverage in the voluntary market due to the high-rish nature of their work may be eligible for coverage under the Florida's Workers Compensation Joint Underwriting Association if assigned to
Subplan B
Employers unable to purchase workers compensation coverage in the voluntary market due to the high-risk nature of their work may be eligible for coverage under the Florida's Workers Compensation Joint Underwriting Association if assigned to
Subplan B.
Which item would NOT be covered under building coverage in a building and personal property policy?
The Bulldozer being used as part of a business addition under construction that is parked 500 feet from the building
Who examines the books and records of insurance companies in Florida?
The Chief Financial Officer
Which of the following entities is responsible for agent licensing and administrative supervision?
The Office of Insurance Regulation
The amount an insurer will pay under Coverage D (Loss of Use) depends on
The amount of coverage on the dwelling
All of the following statements concerning coinsurance are true EXCEPT
The coinsurance formula will also be applied to total losses.
What type of information is NOT included in a certificate of insurance?
The cost the company is paying for monthly premiums
If a group policy who are the parties to the contract?
The employer and the insurance company
If a person accumulates more continuing education hours than is necessary to fulfill the requirements for a 2-year period; which of the following will occur?
The extra hours may be continued into the next period.
In a group policy; who is issued a certificate of insurance?
The individuals covered under the insurance contract
Which of the following is an agreement between an insured and an insurer where the insurer agrees to indemnify the insured for specific losses in exchange for a premium?
The insurance contract
A disability income policy with the Any Occupation provision will pay benefits in which of the following situations?
The insured is unable to perform any job for which he is suited by reason of education or experience.
Under a businessowners policy; the inspections and surveys condition specifies all of the following EXCEPT
The insurer does not have the right to inspect the insured's property and operations.
A mortgage company is named as a loss payee on the insured's homeowners policy; under the standard mortgage clause. If the insured suffers a loss due to a fire; which of the following is true?
The loss is payable to the insured and the mortgagee.
The cancellation provision in a businessowners policy specifies all of the following EXCEPT
The method of transferring the owner's rights.
Who is NOT an insured for liability on a BAP?
The owner of a car the insured borrows
When a direct chain of events resulting from a negligent act causes injury or damage; that act is considered to be
The proximate cause.
On a DP-3 Dwelling Property Special Form policy; the coverage provided for personal property is
The same as provided on the DP-2 Broad Form
All of the following are other coverages included in both the broad and special form dwelling policy EXCEPT
Theft of personal property
In Florida no-fault laws exempt an at-fault motorist who causes injury to another from suits for recovery for noneconomic losses such as pain and suffering unless
There is permanent injury.
In Florida no-fault laws exempt an at-fault motorist who causes injury to another from suits for recovery for noneconomic losses; such as pain and suffering; unless
There is permanent injury.
Which common policy condition prohibits the insured from changing the rights or duties under the policy to any other person or organization without the written consent of the insurance company?
Transfer of rights and duties under the policy
The type of insurance used to cover goods for one specific trip is called:
Trip transit
Which of the following is a statement that is guaranteed to be true and if untrue may breach an insurance contract?
Warranty
Under the business auto coverage form; mobile equipment is covered for liability insurance
When being carried or towed by a covered auto.
Coverage under a Floor Plan Merchandise form is written on a reporting form basis that requires the insured to file reports with the insurer. What is the time frame for those reports?
Within 30 days after the end of each month
In liability insurance policies; supplementary payments are made
in addition to the limit of liability.
What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine policy?
$10,000 for all expenses incurred during a 12-month period
Under the business owners policy; the coverage for the newly acquired property is limited to
$100,000
Al permanently injured by Jim in an accident, has total damages of $60.000. Al has PIP and Uninsured Motorist coverage of $100.000. Jim has the minimum limit of liability required by Florida. How much would Al collect under U/M
$40.000
A premium discount in the term that describes when an insured owes a total standard premium greater than
$5,000
If an insured covered under a Mobile Homeowners Policy moves the mobile home to protect it from a covered peril the policy will pay up to
$500
All of the following are special personal property limits under a homeowners policy EXCEPT
$500 for business personal property
For cancellation of a commercial property policy during the first 90 days; for a reason other than nonpayment of premium; the insurer must give the insured advance written notice of at least how many days?
20 days
Which of the following must the patient pay under Medicare Part B?
20% of covered charges above the deductible
An insured has Medicare Part D coverage. Upon reaching the initial benefit limit what percentage of the prescription drug cost is the insured responsible for paying?
25%
When an insurer plans to non renew a commercial property insurance policy it must give the policyholder a written notice of its intent to non renew at least how many days in advance?
45 days
When an insurer plans to nonrenew a commercial property insurance policy; it must give the policyholder a written notice of intent to nonrenew at lease how many days in advance?
45 days
An applicant for a life agent's license may obtain a temporary license for a maximum period of
6 months
Coverage under the builders risk form will end in all of the following situations EXCEPT
60 days after the construction has ended.
An insurer must give 20 days' written notice to the insured when canceling a property insurance policy for reasons other than nonpayment of premium if the policy is cancelled within how many days after its issue?
90
Which of the following types of valuation works best for property whose value does not fluctuate much?
Agreed value
In which Medicare supplemental policies are the core benefits found?
All plans
The inspections and surveys condition in a businessowners policy
Allows the insurer the right to inspect the insured's premises.
Regarding uniform mandatory provisions concerning claims all of the following are true EXCEPT
An insured must notify the insurer of a claim on forms prescribed by the insurer
Florida's UM law requires that every auto policy that provides primary liability coverage for a specific motor vehicle must include "stacked" UM at the same limits as apply for liability coverage; unless the insured; in writing
Any of the above.
Which of the following would be considered an insured under a business auto coverage form?
Anyone while using with permission, a covered auto owned by the named insured
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 the property or amount of loss?
Appraisal Clause
First aid costs for others injured on the insured's premises
Are paid in addition to the liability limit.
A provision found in most claims-made liability policy forms that provide a specified period of time following the policy expiration; during which claims arising out of occurrences during the policy period may be made against the policy at no extra cost; is called
Basic extended reporting period
A provision found in most claims-made liability policy forms that provides a specified period of time following the policy expiration; during which claims arising out of occurrences during the policy period may be made against the policy at no extra cost; is called
Basic extended reporting period
A provision found in most claims-made liability policy forms that provide a specified period of time following the policy expiration during which claims arising out of occurrences during the policy period may be made against the policy at no extra cost is called
Basic extended reporting period.
To become a nonresident adjuster in the state of Florida; an adjuster must meet all of the following requirements EXCEPT
Be employed by an adjusting firm.
An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage. This is an example of
Concealment.
In which of the following sections of a commercial auto policy will you find specific information about the policy period?
Conditions
An insured's business is damaged because of a fire and he is forced to close the business temporarily for repairs. As a result the insured lost income. What type of loss is this?
Consequential
An insured's business is damaged because of a fire; and he is forced to close the business temporarily for repairs. As a result; the insured lost income. What type of loss is this?
Consequential
When an insured purchased his health policy he was a window washer. He has since changed occupations and now manages a library. Upon notifying the insurer of his change of occupation; the insurer will
Consider decreasing the premium.
When an insured makes truthful statements on the application for insurance and pays the required premium; it is known as which of the following?
Consideration
The gatekeeper of an HMO helps
Control specialist costs
Which of the following is the Fair Rental Value coverage in the dwelling policy?
Coverage D
The basic dwelling form (DP-1) provides all of the following coverages without endorsement EXCEPT
Coverage for additional living expense
Which of the following is NOT true about earthquake coverage?
Coverage is commonly provided through a federally-funded program.
Which of the following is NOT a responsibility of the Office of Insurance Regulation?
Enacting new insurance laws
What is the purpose of the coinsurance clause found in property insurance policies?
Encourage the insured to insure the property closer to its full value
Which of the following would modify the original insurance contract by either adding or removing coverage?
Endorsements
The provision which states that both the printed contract and a copy of the application for the contract between the policyowner and the insurer is called the
Entire contract.
Which type of insurance companies marketing long-term care insurance coverage must establish procedures to assure that any comparison of policies by its agents will be fair and accurate?
Every company is required to establish marketing procedures
What type of group rating uses the actual experience of the group as a factor in developing the rates to be charged?
Experience Rating
Older homes with replacement costs greater than ACV or market value are insured on
HO-8.
Events or conditions that increase the chances of an insured loss occurring are referred to as
Hazards
Which of the following types of LTC is NOT provided in an institutional setting?
Home Health care
An additional loss that results from a direct loss of property is called a/an
Indirect loss.
Which of the following entities has the authority to make changes to an insurance policy?
Insurance company's executive officer
Insurance contracts are agreements between which two parties?
Insurer and policyowner
All of the following are conditions commonly found in the insurance policy EXCEPT
Insuring Agreement
All of the following statements about Medicare Part B are correct EXCEPT
Is is a compulsory program
The Office of Insurance Regulation is responsible for all of the following insurer activities EXCEPT
Issue of securities
Under the dwelling policy Coverage C - Personal Property is
Limited to covering a servant's property while at the insured location.
The process of determining the premium charged and how much insurance is required for a particular loss is called
Loss Valuation
Which of the following is TRUE regarding business liability and medical payments coverage?
Loss of electronic data is excluded under a business liability policy.
Which of the following would be covered under the crime coverage inside the premises - theft of money and securities?
Loss or damage to a locked safe vault
In which type of commercial crime policy coverage is triggered by a loss that happens during the policy period but is not necessarily discovered during the policy period?
Loss sustained form
To sign up for a Medicare prescription drug plan individuals must first be enrolled in
Medicare Part A
Medicare Advantage is also known as
Medicare Part C.
What type of property does a personal floaters policy cover?
Movable personal property; wherever it may be located
All of the following coverages are included in the BOP without requesting coverage extensions EXCEPT
Newly acquired of constructed property
Several insureds have become liable because of a single loss. How will the policy's limit of liability be affected?
No more than the per occurrence limit applies, no matter how many insureds are involved
Duties of the insurer found in property policy conditions include all of the following EXCEPT
Notify the insured in the event of financial difficulty.
Losses caused by continuous or repeated exposure to conditions resulting in injury to persons or damage to property that is neither intended nor expected is the definition of which of the following terms?
Occurrence
Losses caused by continuous or repeated exposure to conditions resulting injury to persons or damage to property that is neither intended nor expected is the definition of which of the following terms?
Occurrence
Which of the following statements in INCORRECT concerning Medicare Part B Coverage?
Part B coverage is provided free of charge when an individual turns age 65
Under the personal auto policy; liability for bodily injury resulting from the insured's use of a non owned automobile is
Provided by the insured's policy on an excess basis
Under the personal auto policy; liability for bodily injury resulting from the insured's use of a nonowned automobile is
Provided by the insured's policy on an excess basis.
Under the claims-made CGL the supplemental extended reporting period
Provides an unlimited extension for making claims for losses that occurred during the policy period, but the insured must pay an additional premium.
Under the claims-made CGL the supplemental extended reporting period
Provides an unlimited extension for making claims for losses that occurred during the policy period; but the insured must pay an additional premium.
All of the following are considered parts of the policy structure EXCEPT
Provisions
Which of the following adjuster appointment types is required to file a surety bond with the Department of Insurance?
Public adjuster
A situation in which a person can only lose or have no change represents
Pure risk.
An insurer is preparing to pay disability income benefits to an insured. In order to prevent overinsurance; the insurer monitors the income of the insured before submitting payment. Which rule corresponds to this behavior?
Relation of earnings to insurance
What type of information would be found in a policy's insuring agreement
Renewal Dates
All of the following may be covered by the miscellaneous type vehicle endorsement EXCEPT
Rented recreational vehicles
Which of the following is used in the formula for calculating the actual cash value of a property?
Replacement Cost
A date stipulated on the declaration page of a claims-made liability form as the first date on which an incident may occur and be covered by the policy is called
Retroactive date.
In a personal umbrella policy the amount paid by the insured for certain losses not covered under the primary coverage is called
Self-insured retention.
In a personal umbrella policy; the amount paid by the insured for certain losses not covered under the primary coverage is called
Self-insured retention.
All of the following long-term care coverages would allow an insured to receive care at home EXCEPT
Skilled care.
What are the two types of compensatory damages?
Special and general
An insured owns several buildings each at a different location and insured on a separate policy. What type of coverage does the insured have?
Specific
Property insurance that provides $100000 coverage for a building and $50000 coverage for personal property at a single location is called or cash register
Specific coverage
Property insurance that provides $100.000 coverage for a building and $50.000 coverage for personal property at a single location is called
Specific coverage.
Property insurance that provides $100;000 coverage for a building and $50;000 coverage for personal property at a single location is called
Specific coverage.
An agent's appointment has been denied. Which of the following is true?
State taxes may be refunded upon a written request.
When the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the even of a covered loss the coverage is said to be written as
Stated amount
Which of the following terms describes a reduced or limited amount of coverages other than the combined single limit that is available to pay claims resulting from passenger bodily injury?
Sublimit
Which of the following terms describes a reduced or limited amount of coverages other than the combined single limit, that is available to pay claims resulting from passenger bodily injury?
Sublimit
How are surety bonds different from insurance?
Surety bonds guarantee specific duties or obligations will be fulfilled; insurance pays for losses.
Which of the following symbols is available to an insured with vehicles subject to no-fault coverage?
Symbol 5
An insured's accounts receivable records have been damaged. The loss may be covered with
The accounts receivable coverage form.
If an agent is in the military; which of the following is true?
The agent cannot sell a policy to another active military person who is of a lower rank.
Which of the following circumstances would be EXCLUDED under medical payments coverage of a personal auto policy?
The insured is injured while driving his motorcycle on His resident premises
The medical payments coverage in a personal auto policy will pay reasonable medical expenses for all of the following EXCEPT
The insured is injured while exiting a friend's mobile home.
Which of the following statements is true concerning a bonded contractor who defaults on a construction performance contract?
The obligee may engage another contractor and then seek reimbursement from the surety.
Supplemental payments on a CGL provide all of the following EXCEPT
Up to $500 a day for lost earnings and $2,000 for the cost of bail bonds
Supplementary payments on a CGL provide all of the following EXCEPT
Up to $500 a day for lost earnings and $2,000 for the cost of bail bonds; Supplementary payments will cover only $250 for these.
A medical expense policy that establishes the amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor of similar training and experience in that geographic area is known as
Usual, customary and reasonable.
Which of the following IS covered under the theatrical property floater of an Inland Marine policy?
Vehicles used on stage
When a parent is required to pay for damages caused by their children this is an example of
Vicarious liability.
Can an insurer cancel a property policy for nonpayment of premium?
Yes with 10 days' written notice and reason of cancellation given to the insured
Can an insurer cancel a property policy for nonpayment of premium?
Yes, with 10 days' written notice and reason of cancellation given to the insured
Can an insurer cancel a property policy for nonpayment of premium
Yes; with 10 days' written notice and reason of cancellation given to the insured
