insurance exam part 3

The Builders' Risk coverage form includes an additional coverage that provides a limited amount of coverage for lawns, trees, shrubs, or plants when located outside of buildings. This limit is:

$1,000, but $250 for any one tree, shrub, or plant..

Coverage C of the Homeowners forms provides which of the following amounts for business personal property?

$2,500 on the premises and $1,500 off the premises..

What is the limit of coverage provided under a Mobile Homeowners policy for detached structures?

10% of the Coverage A limit or $2,000 whichever is greater..

Convenience stores selling gasoline must have a minimum of ______ square feet in total floor area in order to qualify for the BOP?

3,000

A certificate of prelicensing course completion for West Virginia agent/producers is valid for _____ from the completion date of the course.

4 months

A Commercial Property policy has the "Protective Safeguards endorsement attached indicating that the insured has protective safeguards installed such as a sprinkler system. Should the system become inoperative, how long does the insured have to report this fact to the insurer?

48 hours

If a producer knew or should have known that his or her acts were in violation of the West Virginia insurance code, the penalty imposed by the Commissioner may be:

A fine of $5,000 and a suspension or revocation of the producer's license

A defendant in a lawsuit, has been found negligent and the plaintiff has been awarded damages for pain and suffering. This means the plaintiff has received:

A general damage award

An insurance company held its annual meeting in Florida so attendees could have an opportunity to visit tourist spots as well as spend time on company business. At the meeting, three new directors were added after the attending stockholder's votes and mailed-in proxies were counted. This insurance company is:

A stock insurance company.

All of the following are exceptions to the workers' compensation exclusive remedy, EXCEPT:

An on-the-job injury caused by worker fatigue from working an excessive number of over-time hours

Section I of the Businessowners policy places limitations on coverage for certain losses if they are not caused by a specified cause of loss. All of the following are specified causes of loss under the policy, EXCEPT:

Building glass breakage

Entering into any agreement to commit, or by any concerted action committing, any act resulting in or tending to result in unreasonable restraint of the business of insurance is an example of:

Coercion.

The Homeowners forms exclude coverage for loss resulting from "earth movement" but the peril of "earthquake" can be added by endorsement as an insured peril for:

Coverages A, B, and C..

Larry owns and runs a political website that posts stories that are favorable to one political party and unfavorable to the other parties. Larry has a message board feature where he encourages his visitors to post their own negative opinions about the parties in which they do not agree. Many of these posts have gone beyond opinion and have sunk to the level of slander and Larry is sued. Larry's Commercial General Liability insurer will:

Deny coverage for defense costs and damages awarded by a court because the policy specifically excludes coverage for this exposure

The Fair Credit Reporting Act provides a credit or insurance applicant with the right to:

Dispute the information contained in their credit report..

Bill may be negligent if he:

Fails to do what a reasonably prudent person would do in the same circumstance. .

The conditions section of a Commercial General Liability policy specifies that the insurer may not make any voluntary claim payment without the insurer's permission, except for:

First-aid.

All of the following statements are true regarding the chief administrative officer of a state insurance department, EXCEPT:

He/She sets insurance rates within their state

Every owner of a vehicle that is subject to registration in West Virginia, must complete an application for registration that includes a statement under penalty of false swearing that liability is in effect on the vehicle. If the Commissioner later determines that liability insurance was NOT in effect at the time the application for vehicle registration was made:

He/she will revoke both the driver's license of the owner and vehicle registration..

A print shop is insured under a Businessowners Policy with a separate policy covering the press. If a loss occurs that is covered under both policies, how will the Businessowners Policy respond?

In this situation, the BOP is considered "excess" coverage.

Torts that can be covered by insurance policies include all of the following, EXCEPT:

Intentional torts purposely committed to cause harm to another..

Jack rents a home to Tanya and maintains a DP-3 policy on the dwelling. Tanya accidentally leaves the oven on all day while she is out, her Lasagna catches fire, burning Jack's house to the ground, along with all the contents located inside. Which of the following items would be covered under Coverage C of Jack's DP-3 policy?

Jack's appliances..

In order for a contract to be binding in a court of law, it must be designed for:

Legal purposes..

All of the following items are given a "special limit of liability" under Coverage C of the Homeowners policies, EXCEPT:

Motorized land vehicles

For the insured dwelling and other structures, the DP-3 provides:

Open peril coverage

A dead tree beside Jerry's home is best described as which of the following types of hazards?

Physical hazard

The Businessowners policy excludes coverage for all of the following, EXCEPT:

Property of others in the insured's care, custody, or control..

The traditional definition of actual cash value (ACV) is:

Replacement cost minus depreciation

Replacement cost coverage is best defined as:

Replacement cost without deduction for depreciation

The purpose of the appraisal clause in a property insurance policy is to:

Settle disputes concerning the amount of a loss

Which of the following Business Auto symbols covers "owned autos only"?

Symbol 2

All of the following are types of Commercial Property coverage forms that can be included in a Commercial Package policy, EXCEPT:

The Control of Property coverage form..

The insured carries a Personal Auto policy and a Personal Umbrella policy. In case of a loss, how would the policies respond to pay a covered claim?

The Personal Auto policy would be the primary and would pay up to the policy limits, then the Umbrella policy would be excess to pay up to its policy limits

Ellie's Engineering, Inc. has several warehouses and it is necessary for employees to transport different items between the warehouses, depending on what products are being manufactured at any given time. One day Bill, Karen, and Josh were required to load several containers of an explosive chemical onto a truck to transport it across town to another warehouse. Karen knew that the chemical must be handled carefully to prevent it from exploding, but she did not refuse to move the containers nor did she indicate to Bill and Josh that the chemical was dangerous. After loading the containers, Josh is moving the truck out of the loading zone and negligently backs it into a brick wall, causing an explosion, injuring all three workers. Bill died from the injuries several days after the accident. Which of the following statements most accurately describes the common law defense(s) that Ellie's Engineering might use to defend themselves against a lawsuit filed by Karen?

The assumption of risk and the fellow worker doctrine only.

What is "express authority" under the law of agency?

The authority given to the agent as specified in the contract..

Gordon's Carpentry built a garage for a client. Two weeks after the work was completed, the garage collapsed and damaged the client's car, equipment in the garage, and caused bodily injury to the client. Gordon's CGL policy would not cover:

The damage to the garage..

Which of the following statements is TRUE regarding an insured who has been injured by a hit-and-run driver in West Virginia?

The injured West Virginia driver must notify their own insurance company within 60 days of the accident with the hit-and-run driver..

Fidelity bonds are designed to protect all of the following, EXCEPT:

The insured for lawsuits brought for products liability.

Samantha has renewed her Commercial Property policy, and it will take effect in 7 days. 14 days prior to Samantha signing the renewal policy, the insurer adopted a form revision that included broadened coverage, with a slight increase in premium. Samantha would like her renewal policy to include this broadened coverage. Which of the following statements is true regarding the required method for Samantha to receive the broader coverage?

The liberalization clause will not require that Samantha's renewal policy include the broadened coverage automatically because there is an additional premium to have the broadened coverage included..

All of the following are true concerning Commercial Package policy modification factors, EXCEPT:

The numerical figure used as a modification is set within each coverage part of the standard policies that make up the package..

Making distinctions in the premium rates charged for insurance between insureds or property having similar risk characteristics is an example of:

Unfair discrimination

A products-completed operations claim can be made against products manufacturers, wholesalers, and retailers alleging fault and legal responsibility based on all of the following, EXCEPT

Vicarious liability

An insured has her dwelling covered by an HO-3 form, with a $500,000 limit of liability for Coverage A. A fire breaks out and the dwelling is a total loss. The entire $500,000 limit is used to cover the direct physical damage to the dwelling. However, there is a large amount of debris from the burned structure covering the insured's property that will need to be removed. In this situation, how will the cost of the debris removal be paid?

When the entire Coverage A limit is used to cover the direct physical damage to the dwelling, an additional 5% of the Coverage A limit will be added to cover debris removal.

The insured has suffered roof damage as a result of a tornado. He makes temporary repairs until permanent repairs can be made. He spends $1,500 for this work. How much, if any amount, will the DP-2 Dwelling policy pay on the repairs?

$1,500

Wayne has his home, valued at $120,000, covered by a Homeowners policy in West Virginia with a limit of liability of $100,000. Wayne's home burns to the ground and is a total loss. How much will Wayne's policy pay on this loss?

$100,000..

The "triggering event threshold" for the Terrorism Risk Insurance Act of 2002 was:

$5 million..

Which of the following statements concerning the Earthquake and Volcanic Eruption Endorsement to a Commercial Property policy is NOT TRUE?

If the policy expires before the end of the 168-hour period, coverage will not apply to the time period following the expiration date of the policy..

Which of the following endorsements permits the insured under a Commercial Property policy to increase their business personal property coverage amount for specified periods of time when inventory may be higher than usual?

Peak Season Endorsement

Under a surety bond, the party that is guaranteed that the principal will perform is known as:

The obligee

Claims expenses covered under Section II -- Personal Liability of the standard Homeowners forms do NOT pay for which of the following?

Loss of the insured's earnings subject to a pre-determined limit of $300 per day.