Kentucky Exam

A non-residential building in Iowa in a community that was admitted to the NFIP Emergency Program would be provided _______ of coverage for the building. $50,000 $150,000 $100,000 $35,000

$100,000.

The additional coverage on the Building and Personal Property coverage of a Commercial Property policy for electronic data provides _________ for the cost of replacing and restoring electronic data that has been destroyed or corrupted by a covered cause of loss. $2,000 per policy period. $2,000 per occurrence. $2,500 in the aggregate. $2,500 per policy period.

$2,500 in the aggregate..

Jim Johnson has an automobile policy with a combined single limit of $50,000. He is involved in an accident where he is at-fault and incurs the following expenses: $30,000 bodily injury judgment; $30,000 property damage judgment; $5,000 damage to traffic light; $6,000 attorney's fees for his defense; $300 in premiums for appeal bond; and $75 in bail bond premiums for related traffic violations. What is the maximum amount his insurance company will pay? $50,000 $56,375 $65,000 $71,375

$56,375. The policy cannot pay more than its limit of liability. Under supplementary payments in the policy, the policy will pay the defense costs plus the cost of the premiums on appeal bonds and bail bonds.

In regards to Workers Compensation insurance, which of the following experience modification factors would indicate that an insured has sustained a relatively high frequency and severity of losses in the recent past? 1.25 1.00 .95 .75

1.25

A Kentucky licensee must satisfactorily complete a minimum of ____ hours of continuing education courses during each continuing education biennium. 12 10 20 24

24

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

90 Days

Which of the following is true regarding the cancellation or nonrenewal of a property or casualty insurance policy in Kentucky? A clear and concise reason or reasons must be stated on the notice. A company can state as the reason on the notice, "for underwriting reasons". A company can state as the reason on the notice that it is based on information obtained from a credit reporting company. No reason is required on cancellation or nonrenewal notices in Kentucky.

A clear and concise reason or reasons must be stated on the notice. .

Which of the following types of property would be covered by Coverage B of a standard, unendorsed Businessowners policy? An owned automobile. An unscheduled exterior business sign. A copy machine that is leased by the covered business. An outdoor fence.

A copy machine that is leased by the covered business.. A copy machine that is leased by the covered business is covered by Section I - Coverage B Business Personal Property. The other answer choices are listed as "property not covered".

Which of the following is included in the definition of "farming" on a Farm Liability policy? A roadside stand on the farm premises that sells products from that farm as well as pies made by the neighboring farmer. A retail shop on the farm premises that sells both processed and unprocessed products farm products. A roadside stand that sells unprocessed farm products produced by the farmer selling them on the farm premises. A retail shop on the farm premises that sells cobbler made with peaches grown on the farm as well as cookbooks containing the cobbler recipes.

A roadside stand that sells unprocessed farm products produced by the farmer selling them on the farm premises

Which of the following would NOT be covered under Coverage B of the Homeowners forms? A separate building on the insured premises used for business. A building connected to the main dwelling only by a fence. A private garage rented to a non-tenant. An in-ground swimming pool.

A separate building on the insured premises used for business

Crop-Hail and Multi-Peril Crop insurance is rated on:c

An acreage basis..

The insured has suffered a covered loss under his DP-3 form. He fails to protect the property from further loss. The additional loss that occurs as a result of this failure may be denied. Why? Because the insured created an intentional loss. Because failure to protect constitutes soft fraud .Because there was a failure to perform the required duties. Because failure to protect constitutes hard fraud.

Because there was a failure to perform the required duties

All of the following statements regarding the Commercial Package Policy are correct, EXCEPT: Commercial Package Policies can include Ocean Marine and Aviation Insurance coverage. Almost all commercial risks are eligible for coverage under the Commercial Package Policy .The insured can choose a variety of eligible commercial coverages to tailor the package to specific business insurance needs. A complete Commercial Package Policy (CPP) includes a common policy Declarations page, a common policy Conditions sections, and two or more coverage parts.

Commercial Package Policies can include Ocean Marine and Aviation Insurance coverage. .

Which of the following statements is CORRECT regarding "no-fault" coverage provided under a CGL policy? Coverage B of the CGL policy provides "no-fault" coverage for libel. The CGL policy does not provide any type of "no-fault" coverage. Coverage C of the CGL policy provides "no-fault" coverage for medical payments. The CGL policy provides "no-fault" disability coverage for employees working off the premises.

Coverage C of the CGL policy provides "no-fault" coverage for medical payments.

Which of the following is NOT one of the five types of general liability exposures? Errors & Omissions. Premises and operations. Insured contracts. Fire damage liability.

Errors & Omissions..

The limits of the Employers' Liability section of a standard workers' compensation policy are: Listed in the Conditions section of the policy. Listed on the Information page. Set by state law. Set low enough that the employer will pay a significant portion of a claim.

Listed on the Information page

The insured is covered under a Watercraft policy and asks the agent about a lay-up period credit to get a reduction in the premium. The dates of the lay-up period are specified in the policy. There is an emergency and the insured must use his boat in a life saving event. The boat is damaged and sinks. Under what circumstances would coverage apply? The loss would not be covered because the insured operated the boat during the lay-up period. Only if the insurance company is notified within 10 days of the emergency use. Only the salvage of the boat is covered when required under Maritime Law. When an additional premium is received by the insurer when the limitation is removed.

Only if the insurance company is notified within 10 days of the emergency use.

Regulation of the insurance industry in the United States is primarily left to: The federal government. The National Association of Insurance Commissioners (NAIC). State governments. The Supreme Court.

State Governments

If the Agreed Value option of the Business Income form is selected by the insured, the coinsurance requirement is: Waived. Still applies. Converted to a reporting form. Never reinstated.

Waived

All of the following would be excluded by the basic cause of loss form under a Commercial Property policy, EXCEPT: Damage caused to the covered buildings electrical system by a power surge. A water pipe that bursts and damages the interior of the building. Water leaks from the sprinkler system in the building, causing wall and floor damage. Damage to flooring that occurs when water seeps from the dishwasher in the corporate kitchen for several months.

Water leaks from the sprinkler system in the building, causing wall and floor damage..

An applicant for an adjuster license must pass the examination within a specified time period from the date of the application. How many times may he or she take the exam during this time period? one time two times three times four times

three times

A vehicle rolled over exiting the interstate. The insured carries collision coverage with a $1,000 deductible and other than collision coverage with a $500 deductible. The damage to the vehicle is $2,000. What amount is the insurer responsible to pay? $2,000. $1,000. $1,500. Nothing.

$1,000

Farmer Ellen is covered by a Farm Property policy. During a storm, two trees located on each side of the farmhouse front porch are blown down and cause roof damage. How much coverage does Ellen's policy provide to remove the trees? $500 for any one loss regardless of the number of trees that have fallen but no more than $250 for the removal of any one tree. $1,000 for any one loss regardless of the number of trees that have fallen but no more than $500 for the removal of any one tree. $500 per tree regardless of the number of trees that have fallen up to a limit of $2,000. $1,000 per tree regardless of the number of trees that have fallen up to a limit of $2,000.

$1,000 for any one loss regardless of the number of trees that have fallen but no more than $500 for the removal of any one tree.

Under the "Emergency Program" in all states except Alaska and Hawaii, the National Flood Insurance Program will insure a single-family residence for up to: $35,000. $100,000. $150,000. $250,000.

$35,000. .

When Chris' car is stolen from his apartment's parking lot, he heads down to the local dealership and buys a new car. Three months later, Chris decides he may as well report the stolen car to his insurer, so he can get some money for it. What is the most likely reason the insurer might deny his claim? Chris did not promptly report the stolen vehicle. Chris was not listed as an "insured." Chris didn't protect his vehicle from being stolen. Chris already bought a new car.

Chris did not promptly report the stolen vehicle

A lawyer is covered under a standard "Lawyers Professional Liability" form. All of the following situations would be covered by her policy, EXCEPT: Her fiduciary activities as an executor of an estate. Her activities as a guardian to two young children whose parents have died. Her activities in preparing a will and a trust for a client. Her fiduciary activities as an administrator of a corporate employee-benefits plan.

Her fiduciary activities as an administrator of a corporate employee-benefits plan

After property or casualty coverage has been in effect more than 60 days in Kentucky, a notice of cancellation may not be issued unless it is based on which of the following reasons? I. A violation of any local fire, health-safety, building, or construction regulation or ordinance II. Nonpayment of premium III. Discovery of fraud or material misrepresentation made by or with the named insured's knowledge in obtaining the policy IV. Discovery of willful or reckless acts or omissions by the named insured which increase any hazard insured against

I, II, III and IV.

Which of the following would be considered "economic losses" that could result in compensatory damages being awarded in a negligence case? Disfigurement. Loss of consortium. Pain and suffering. Medical expense and lost wages.

Medical expense and lost wages.. Economic losses are those that include out-of-pocket damages, such as incurred medical expenses or lost wages. It does not include disfigurement, pain and suffering or loss of consortium, as those would be considered "general damages".

All of the following statements are true regarding the coverage of mobile or trailer homes under a Dwelling insurance policy, EXCEPT: Mobile or trailer homes must be insured under a DP-1, they cannot be insured under a DP-2 or a DP-3. Mobile or trailer homes can be owner or tenant occupied .Before the insurance can apply, the mobile home must be permanently installed in the designated location. The policy period can be for no more than one year.

Mobile or trailer homes can be owner or tenant occupied..

To receive workers compensation benefits, an employee's occupational disease: Must be caused by the conditions of the employment. Must be terminal. Must be caused by conditions that also exist inside or outside the workplace. Must have been aggravated by the negligence of the employer.

Must be caused by the conditions of the employment.

All of the following are methods of controlling the medical costs associated with workers' compensation claims, EXCEPT: Performing a medical billing audit. Requesting an "itemized" bill from the healthcare provider. Overestimating the initial reserve for the workers' compensation claim. Using "designated providers".

Overestimating the initial reserve for the workers' compensation claim

Which of the following would not be eligible for coverage on a Livestock Coverage form? Poultry. Cattle. Sheep. Swine.

Poultry

Which of the following would be considered a "breakdown" as defined in an Equipment Breakdown policy? Malfunctions after adjusting equipment. Leakage at any valve. The functioning of any safety or protective device. Pressure or vacuum equipment failure.

Pressure or vacuum equipment failure..

Which of the following coverages would NOT be included in the liability section of the Businessowners policy? Bodily injury liability. Professional liability. Personal and advertising injury liability. Medical expense.

Professional Liability

The insured and her 18-year-old son, who lives in the insured's household, are crossing the street when both of them are struck by a drunk driver. The Part B - Medical Payments coverage of the insured's personal auto policy will: Provide coverage for the son Provide coverage for the insured and the son Not provide coverage because they were a pedistrian

Provide coverage for both the insured and her son

When a state is "monopolistic" with workers' compensation coverage, employers in that state are: Permitted to purchase coverage through a private insurer or through the state-funded plan. Required to purchase their workers' compensation coverage from the state-funded plan. Required to self-insure their workers' compensation coverage. Not required to provide workers' compensation coverage for their employees.

Required to purchase their workers' compensation coverage from the state-funded plan

Underinsured motorist coverage provides first-party protection to an insured after an accident in which of the following situations? The other driver has insufficient liability limits and is "at-fault". The other driver has no insurance and is "at-fault". The other driver has no insurance but is not "at-fault". The insured driver has insufficient liability limits and is "at-fault".

The other driver has insufficient liability limits and is "at-fault"

The insured is covered by a Commercial General Liability policy with a $600,000 general aggregate limit, a $600,000 products-completed operations aggregate limit, and a $300,000 per occurrence limit. The insured has one claim for $350,000 and another for $100,000 arising out of the premises and operations hazards during the policy period. How much of the general aggregate limit will remain for future claims within the same policy period? $200,000. $50,000. $600,000. $400,000.

$200,000

To prove negligence, the "proximate" or "legal cause" of an injury or loss, includes what important feature? The cause of the loss is not relevant if the defendant is proven to be legally liable. An intervening cause must have broken the chain of events before the proximate cause can be proven. The direct cause of the loss must also be the proximate (legal) cause of the loss. An unbroken chain of events lead to the bodily injury or property damage.

An unbroken chain of events lead to the bodily injury or property damage

An adjuster's license is required for which of the following individuals in the state of Kentucky? An administrative assistant lending assistance to a licensed adjuster. An attorney admitted to practice in Kentucky. Both Neither

Neither

If the Navigational Limits or Lay-Up period shown on the Declarations page of a standardized Yacht policy is breached because of something out of the control of the insured: No action needs to be taken unless the breach is ongoing for more than 30 days. No action is necessary at all. The insurer must be notified within 10 days after the breach and any additional premium that is due must be paid. The insurer must be notified within 10 days after the breach and no additional premium is assessed.

The insurer must be notified within 10 days after the breach and any additional premium that is due must be paid

If an adjuster license is about to be renewed in an even numbered year, notification is required by the licensee's birth month based on: The last day of the birth month The actual date of birth The first day of the birth month None of the responses are correct

The last day of the birth month

All of the following benefits are paid according to a state-mandated schedule of workers compensation benefits, EXCEPT: Permanent partial disability. Permanent total disability. Total partial disability. Temporary total disability.

Total partial disability..

Which of the following statements is TRUE regarding the definition of "mysterious disappearance" as it applies under a Crime insurance policy? "Mysterious disappearance" may apply to any type of property theft. For "mysterious disappearance" to apply, theft of the property must be ruled out. The "mysterious disappearance" of property is only covered if the insured can prove the property was stored in an area where the safety of that property can be presumed. The "mysterious disappearance" of covered property is considered negligence on the part of the insured and is not covered.

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

All of the following are duties of the insurer in case of a loss as specified by insurance policies, EXCEPT: To investigate a claim after a notice of loss has been submitted to them. To pay amounts to the insured or a third-party claimant that are at least as high as the national average of similar claim settlements. To indemnify the insured if coverage applies under their first-party coverage .To defend the insured in lawsuits and to pay defense costs if a claim is covered by the insured's liability policy.

to pay amounts to the insured or a third-party claimant that are at least as high as the national average of similar claim settlements.

A tornado blows over a wall of a barn which, in turn, knocks over a lamp and starts a fire. What is the proximate cause of loss? Tornado Smoke Fire Water Damage

tornado

The Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA) excludes all of the following, EXCEPT: Commercial auto coverage. Surety bonding. Commercial property coverage. Theft insurance.

Commercial Property Coverage Commercial property losses would be covered by the Act whereas commercial auto, surety bonding, and theft insurance would be excluded under the 2015 Reauthorization.

A business covered by a standard Businessowners policy is shut down due to the acts of a civil authority. Which of the following additional coverages would NOT be subject to a waiting period before coverage would apply? Business Income. Extra Expense. Extended Business Income. Business Income from Dependent Properties.

Extra Expense

Which insuring agreement of the Personal Auto policy would provide coverage for the damage caused to the other driver's car, when the insured was at fault in an accident? Part D - Physical Damage Part B - Medical Payments Part A - Liability Part C - Uninsured Motorists

Part A

Failing or refusing to hire or discriminating against an individual diagnosed as having CWP (Coal Workers Pneumoconiosis) is not allowed in Kentucky. An individual damaged by such action may do which of the following? Bring a civil cause of action to recover damages sustained as a result of the actions. Bring a civil cause of action to enjoin the employer from further violations. Bring suit for damages including costs and attorney fees. All choices are available options for the worker.

All choices are available options for the worker. Any individual injured by any act in violation of these provisions will have a civil cause of action in Circuit Court to enjoin further violations, and to recover the actual damages sustained, together with the costs of the law suit, including a reasonable fee for the attorney of record.

Willie's Widgets has been earning a large portion of their market share for 10 years. During Willie's 11th year in business, Wynonna's Widgets opens and her superior marketing practices leaves Willie unable to continue in business. Which of the following types of risk caused Willie's loss? Particular risk. Fundamental risk. Static risk. Dynamic risk.

Dynamic risk A dynamic risk, caused Willie's loss as dynamic risks are associated with change. Having Wynonna as a competitor was a change that caused Willie to go out of business.

Flood coverage can be added to a Commercial Property policy by attaching the Flood Coverage Endorsement. If the endorsement is purchased and the property is already covered under a flood policy from the National Flood Insurance Program, then the coverage under this endorsement is considered to be: Primary. Excess over the NFIP maximum limits. Pro-rata with the NFIP policy. Not applicable.

Excess over the NFIP maximum limits.

David has damaged his vehicle by striking a tree. He can: I. Take the car to a repair garage recommended by the insurer. II. Take the car to a garage of his choice. III. Accept payment based on the adjuster's estimate.

I, II and III

Under a standardized Personal Automobile policy, the definition of a "covered auto" for Part A - Liability includes: I. Private passenger autos the named insured acquires during the policy period. II. Trailers owned by the named insured. III. Autos or trailers not owned by the named insured that are being used as a temporary substitute. IV. Farm wagons or implements.

I, II, III, and IV.

Which of the following losses would be covered under a standard Personal Automobile policy? Kaya's auto that suffers damage while being transported from a port in Portland, Maine to Parsons Harbor, Newfoundland. Daniel's auto that suffers damage while being transported from a port in San Diego, California to one in Tijuana, Mexico. Jorge's auto that suffers damage while being transported from a port in Miami, Florida to San Juan, Puerto Rico. Katherine's auto that suffers damage while being transported from a port in the U.S. Virgin Islands to Caracas, Venezuela.

Jorge's auto that suffers damage while being transported from a port in Miami, Florida to San Juan, Puerto Rico.

Farmer Olivia makes apple butter from the apples she grows on her farm. She puts the apple butter in decorative jars and takes them to Grandma's Country Store to sell them. For Grandma's to be covered for any liability arising from the sale of Olivia's apple butter: Grandma's must purchase their own Farm Liability policy. Grandma's must purchase a CGL policy. Olivia must add an "Additional Insured Farm Liability" endorsement to her Farm Liability policy. Olivia must add a "Business Activities Liability" endorsement to her Farm Liability policy.

Olivia must add an "Additional Insured Farm Liability" endorsement to her Farm Liability policy

The DP-3 standard Dwelling form provides: Open peril coverage on the dwelling and other structures and broad form peril coverage on contents. Broad form peril coverage on buildings and contents. Basic peril coverage only. Fire, lightning, extended coverage and vandalism & malicious mischief coverage only.

Open peril coverage on the dwelling and other structures and broad form peril coverage on contents.

The Coverage E insuring agreement included in a Farm Property policy provides coverage for: Unscheduled farm personal property. Scheduled household personal property. Scheduled farm other structures. Unscheduled farm other structures.

Scheduled household personal property..

An adjuster has uncovered some discrepancies in matters pertaining to a claim, and is unable to contact the insured to discuss these matters. What should the adjuster do in this situation? Send a reservation of rights letter to the insured's last known address. Deny the claim. Do nothing until the insured can be contacted. Pay the claim and give the insured the benefit of the doubt.

Send a reservation of rights letter to the insured's last known address

Hannah is attending college and her family carries an HO-4 policy with $50,000 contents coverage. Hannah has about $15,000 of personal belongings consisting of clothing, musical instruments, electronic equipment, some appliances and other personal items in her dorm room. Which of the following statements is correct regarding coverage for Hannah's belongings? The HO-4 form carried by Hannah's family would not provide enough coverage for Hannah's property, therefore a personal articles floater should be purchased. Hannah should purchase her own HO-4 form. The HO-4 form carried by Hannah's family would not provide enough coverage for Hannah's property, therefore a personal property floater should be purchased. The HO-4 form that Hannah's family carries would provide all the coverage she needs for the personal property in her dorm room.

The HO-4 form carried by Hannah's family would not provide enough coverage for Hannah's property, therefore a personal property floater should be purchased.. The Homeowners policy limits on personal property would not provide the coverage would need. The personal property floater would provide the best coverage for Hannah's property.

All of the following are provisions of the "Inspections & Surveys" condition of a Commercial General Liability policy, EXCEPT: The inspections and surveys performed by the insurer is considered to be "loss control" in the insurance industry. This condition permits insurers to perform inspections and make recommendation to the insured that will aid in the prevention of claims. This condition does not require the insurer to make "loss control" reports and recommendations. The condition specifies that the insurer can be held liable for any claims arising from the recommendations they made to the insured.

The condition specifies that the insurer can be held liable for any claims arising from the recommendations they made to the insured.

All of the following statements about the Group Risk Plan of the MPCI program are TRUE, EXCEPT: The plan uses APH to determine a loss. The plan is low-cost. When the county yield for the insured crop falls below the trigger level chosen by the insured, an indemnity is paid. The county yield used to calculate the loss is determined by the National Agricultural Statistics Service.

The plan uses APH (Actual Production History) to determine a loss..

Capital Heating & Air Conditioning installs a central air conditioning system in a newly constructed office building. The system is defective and will not work, delaying the opening of the building and costing the building owner lost rental revenue. Is the owner's claim covered under Capital's CGL policy? This claim is not covered because of the "care, custody or control exclusion". This claim is covered as a "products" liability loss. This claim is covered except for the cost of replacing the system. This claim is not covered because of loss of use of "impaired property" exclusion.

This claim is not covered because of loss of use of "impaired property" exclusion..

All of the following are reasons that an adjuster should keep very detailed log notes, EXCEPT: To assist in determining the negligent parties. To assist in determining if the claim is fraudulent. To produce notes that will support a fraudulent denial of claims. To be used in case of a future arbitration, mediation, or litigation proceeding.

To produce notes that will support a fraudulent denial of claims. .

Under which circumstances would it be legal for an insurer to charge one insured more than another insured for the same coverage? When the insurer is running a narrow profit margin. When the insured is in the statistical minority. Never, under any circumstances. When the insured is statistically more likely to experience a loss.

When the insured is statistically more likely to experience a loss

Many states amend property insurance coverage additions and extensions by statute due to insufficient coverage amounts or time limits. All of the following are property insurance additions or extensions that are frequently amended by state statute, EXCEPT: Newly Acquired Property. Debris Removal. Other Structures. Ordinance or Law.

Other Structures..

The Mobile Home endorsement may be attached to which of the following Homeowners forms? The HO-2 or HO-3 only. The HO-6 only. The HO-2 or HO-5 only. The HO-3 only.

The HO2 & HO3

The doctrine that states an insured's policy should provide the coverage that a sensible and prudent person would expect is: The Reasonable Expectation Doctrine. The Applied Principles Doctrine. The Ambiguous Language Doctrine. The Limited Liability Doctrine.

The Reasonable Expectation Doctrine

The insured is covered under a BOP policy. Contents coverage is included. If the insured buys a separate piece of machinery and insures it separately, how will the BOP policy respond to a loss to this machinery? The equipment policy will be primary and the BOP will be excess if the separate policy does not provide adequate limits of coverage. The BOP would be primary and the separate policy would be excess .The BOP policy will not pay since the equipment is separately insured. Both will share in the loss on a pro/rata basis.

The equipment policy will be primary and the BOP will be excess if the separate policy does not provide adequate limits of coverage.

Which of the following would be considered an "incidental occupancy" under a Homeowners policy? An automotive repair business conducted in an unattached garage on the insured premises. An art studio located in the named insured's home, where she also holds occasional painting classes. An accountant's office with a separate entrance for clients to enter and exit. A beauty salon located in a converted garage of the insured dwelling.

An art studio located in the named insured's home, where she also holds occasional painting classes. is correct. Incidental business occupancies are covered under an unendorsed Homeowners policy for home offices, professional or private schools, or studios. Businesses where clients visit the premises is usually not covered without endorsement.

Which of the following statements BEST DESCRIBES the main difference between a Commercial Umbrella policy and an Excess Liability policy? There is no difference. Excess Lines policies broaden coverage and Commercial Umbrella policies increase the limits of the underlying policy. Both Excess Lines policies and Commercial Umbrella policies increase the limits of the underlying policy but the Commercial Umbrella policy can also broaden and extend the coverages. Excess Lines policies provide coverage for manufacturing businesses only, while the Commercial Umbrella policy provides coverage for individual professional risks only.

Both Excess Lines policies and Commercial Umbrella policies increase the limits of the underlying policy but the Commercial Umbrella policy can also broaden and extend the coverages.

The requirements of the Employment Retirement Income Security Act (ERISA) compel companies to cover their professional liability exposure for honest errors and omissions regarding employee benefit plans by purchasing: Errors & Omissions insurance. Employment Practices Liability insurance. Fiduciary Liability insurance. Directors & Officers Liability insurance.

Fiduciary Liability insurance..

Which of the following statements is CORRECT regarding how the National Flood Insurance Program will reimburse the insured for "loss of use"? The maximum limit is $2,500 after a waiting period of 14 days. After a three-day waiting period, the insurer will provide the insured up to $175 per day. Loss of use is reimbursed to the insured for the total amount only after the flood property has been restored. Loss of use is not covered by the National Flood Insurance Program.

Loss of use is not covered by the National Flood Insurance Program..

What is the main difference between arbitration and mediation in dealing with coverage disputes in the claims adjusting process? Mediation is not binding on the parties involved, but with arbitration the decision is final and binding. Mediation involves one objective and neutral third party, but arbitration involves two. With mediation, the decision is final and binding on the parties involved, but arbitration is not binding. Arbitration is the ADR used next if negotiation does not work, mediation is only used after both negotiation and arbitration fail.

Mediation is not binding on the parties involved, but with arbitration the decision is final and binding

A Farm Liability policy automatically includes which of the following? Coverage for liability incurred due to aircraft spraying. Personal injury liability. Coverage for employees not eligible for workers' compensation. Coverage for livestock mortality.

Personal injury liability..

All of the following statements are TRUE regarding the coverage of appurtenant structures covered by an NFIP policy, EXCEPT: The Dwelling coverage form under the NFIP provides up to 10% of the building coverage limit for appurtenant structures as an additional amount of insurance. They must be located in an eligible community. The only appurtenant structure covered under the NFIP is a detached garage. The Dwelling coverage form under the NFIP provides up to 10% of the building coverage limit for appurtenant structures but the coverage reduces the total amount of building coverage available.

The Dwelling coverage form under the NFIP provides up to 10% of the building coverage limit for appurtenant structures as an additional amount of insurance..

The insured has liability coverage with a limit of $300,000 per occurrence. She purchases a $1 million Personal Umbrella policy to extend and broaden her coverage. The Umbrella policy includes a $10,000 retained limit. The insured becomes liable for $800,000 in damages that are excluded by the underlying liability policy, but is covered by the Umbrella policy. How would this claim likely be settled? The underlying policy would pay nothing, the insured would pay $10,000, and the Umbrella policy would pay $200,000. The insured would pay $10,000 and the Umbrella policy would pay $790,000. The underlying policy would pay $300,000 and the insured would pay $500,000. The underlying policy would pay $300,000 and the Umbrella policy would pay $500,000.

The insured would pay $10,000 and the Umbrella policy would pay $790,000

Mary intentionally trips her neighbor while the neighbor is trespassing on the insured's property. Although the neighbor is not injured, Mary gives the neighbor $500 in cash to settle any potential liability claim. How will Mary's insurance company most likely respond in this situation? The insurer will reimburse Mary for the entire $500. The insurer will reimburse Mary for $500, less any applicable deductible. The insurer will sue the neighbor for the return of the $500 because the neighbor was not injured. The insurer will deny liability coverage because Mary's action was intentional.

The insurer will deny liability coverage because Mary's action was intentional

Insurance adjusters have the "power to bind". Which of the following statements best describes what this means? The adjuster never acts with self-interest. The principal is bound to the decisions of the adjuster. Adjusters should not profit from a claim without the permission of the claimant. If a conflict of interest exists, the adjuster should not work on that claim.

The principal is bound to the decisions of the adjuster.