INSURANCE TEST MISSED

The deductible under the NFIP Emergency Program for coverage over $100,000 is:

$2,000..

The liberalization clause of a Businessowners policy automatically applies favorable expansions of coverage, for which a premium is not charged if the changes are made during the policy period or within ______ prior to the effective date of the policy.

45 days..

According to the Gramm-Leach-Bliley Act, Binders Keepers Insurance, Inc., who shares nonpublic private financial information with third parties, must provide their customers with all of the following, EXCEPT:

A "short-form" notice each time an insurance transaction is conducted with the customer..

An insurance company who has not been exempted by law from holding a license, but is transacting insurance in West Virginia without a license is known as:

An "unauthorized insurer"..

Part One of the standard workers' compensation policy covers all of the following, EXCEPT:

Bodily injury caused by the negligence of the insured employer..

Willie's Widgets carries two separate policies to provide Employers Liability coverage. When Willie's is sued by an employee for an injury not covered by state workers' compensation statutes, how will the claim be settled?

By using the contribution by equal shares method..

A married couple have applied to a mortgage company for a mortgage loan. The loan officer told them everything was in order and the loan would be processed pending the purchase of insurance to cover the loan from a certain insurance agent. When the borrowers stated they would prefer to purchase the insurance through their own agent, the loan officer indicated they would not be able to borrow as much as they needed. Under West Virginia state law, the mortgage company is violating which Unfair Trade Practice?

Coercion. .

Before the acts of September 11, 2001 in the United States, insurers:

Did not exclude coverage, nor did they charge an extra premium to cover damages caused by terrorism..

Which of the following Commercial Automobile endorsements extends existing coverage to the individual scheduled and their spouse while using any non-owned auto for both business and personal use?

Drive Other Car (DOC) endorsement..

Which of the following would be considered an Unfair Claim Settlement Practice?

Failing to deny coverage of a claim within a reasonable amount of time after concluding the investigation..

Which of the following statements is TRUE regarding the definition of "mysterious disappearance" as it applies under a Crime insurance policy?

For "mysterious disappearance" to apply, theft of the property must be ruled out..

Conrad is a contractor with Builders' Risk coverage written on a reported value basis on his current construction job. He started clearing the land on May 1st, digging the basement on May 13th, pouring the foundation on May 31st, blocking the basement walls on June 5th, flooring the first floor above the basement on June 15th, and constructing the walls of the first floor on June 30th. When did Conrad's Builders' Risk policy begin providing coverage?

June 15th..

All of the following would be advantages to an insured or an insurer for purchasing or writing a Commercial Package policy, EXCEPT:

Packaging monoline policies together can provide broader coverage under each coverage part than purchasing the policies separately..

Explosion occurring from within a covered steam boiler.

Property that has reached obsolescence..

Which of the following is considered an Unfair Claim Settlement Practice?

Requiring a claimant to submit a preliminary claim report before moving forward on the claim. .

The HO-3 form insures for direct physical loss to covered property involving collapse of a building caused by all of the following, EXCEPT:

Settling.

What type of liability is specifically imposed by statutory law?

Strict liability..

The doctrine of utmost good faith is supported by all of the following legal principles, EXCEPT:

Subrogation..

he broad and special cause of loss forms only.

The basic, broad, and special cause of loss forms..

Which of the following statements is TRUE regarding the Homeowners "additional coverage" known as Landlord's Furnishings?

The coverage is not additional insurance and does not increase the limits of the policy..

Adrianna owns a dwelling that is covered under a DP-3 form and located in a rural area close to a small wooded area. While grazing outside of Adrianna's picture window one day, a deer sees its own reflection and jumps through the picture window to scare off the "other" deer. Once inside the dwelling, the deer realizes he is trapped and causes significant damage to the walls, floor and furniture. Adrianna is covered for $100,000 under Coverage A and for $50,000 under Coverage C. Which of the following statements is TRUE regarding this loss?

The insurer would deny the claim for the personal property and pay the loss to the dwelling on an RCV basis..

Which of the following is generally not considered to be a legal defense against claims of negligence?

The loss to the plaintiff was caused intentionally by the defendant. .

Under a Crime insurance discovery form, a loss is "discovered":

When the insured first becomes aware that a loss has occurred or gives notice of an actual claim of a covered loss..

All of the following statements are TRUE regarding the "medical payments" coverage of the Commercial General Liability, EXCEPT:

Will cover loss of earnings as a result of injuries caused by a product of the named insured. .

The NAIC Unfair Claim Settlement Practices Act is intended to cover all of the following types of insurance claims, EXCEPT:

Boiler & Machinery (Equipment Breakdown) insurance claims..

All of the following statements are TRUE regarding a Commercial Inland Marine policy, EXCEPT:

Coverage is most often written on a named peril basis..

Which of the following would NOT be covered under the specified cause of loss physical damage coverage under a Business Auto policy?

Glass breakage..

In order for nonresident applicants to be eligible for an insurance producer's license in West Virginia he or she MUST:

Hold a like resident license in his or her home state. .

Which of the following statements describes the coverage provided under Coverage C of the Ordinance or Law Endorsement to a Commercial Policy policy?

Provides coverage for the increased costs to repair or rebuild to comply with current building, zoning, or land use ordinances or laws..

The Business Auto policy liability exclusion pertaining to pollution removes coverage for each of the following, EXCEPT:

The escape of pollutants caused by damage to the property containing them when the damage results from the use of a covered auto..

Which of the following statements is TRUE when an insured is covered under the West Virginia Automobile Assigned Risk Plan?

The insurer is required to deliver a one-time notice in writing to the insured informing them of their eligibility for a standard or preferred policy when they have met the requirements..

In West Virginia, when a claims investigation has been concluded, which of the following is required of the insurer?

The insurer must either deny the claim in writing or make a written offer within 10 working days of the conclusion of the investigation..

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

The obligee..

Which of the following is the limit for medical expenses paid under a workers' compensation policy?

There is no limit..

Which of the following is NOT TRUE regarding surety bonds?

They are an agreement that in exchange for a premium, the surety will indemnify the obligee..

Which of the following statements is CORRECT regarding fidelity bonds?

They are two-party contracts between the employer and an insurance company..

An insured has a $1,000 insurance claim and is able to prove his loss and its value. The insurer's adjuster offers $500, knowing that the claimant would probably take the offer to avoid incurring the cost of an attorney to sue for the actual amount of the claim. The offer made by the adjuster is considered:

To be an unfair claims settlement practice..

Mark owns a small 1-bedroom house that he covers under a DP-1. He has the house insured under Coverage A for $40,000. Mark also rents the house to tenants and his yearly rental income is $10,800. The house is severely damaged in a storm, and is uninhabitable by the tenant for 4 months. How much will Mark's DP-1 policy pay him for fair rental value?

$667.00 each month for the four months that the dwelling was uninhabitable..

All of the following statements regarding the basic extended reporting period in a Commercial General Liability policy are TRUE, EXCEPT:

It extends the policy period by 60 days..

What is the purpose of tort law?

It provides a tort victim with a civil remedy to pursue a claim for compensation in the courts..

The insured is liable for $500,000 in damages for a personal injury claim that is covered under the insured's primary liability policy. The primary liability policy has a $300,000 limit per occurrence. The insured also has a $1 million Umbrella policy with a $3,000 self-insured retention limit. How would this claim likely be settled?

The primary policy would pay $300,000 and the Umbrella policy would pay $200,000. .