license exam

The maximum amount of dwelling coverage that may be written for one dwelling in the Connecticut FAIR Plan program is a) $350.000. b) $1.000.000. c) $100.000. d) $250.000.

a. $350,000

Workers compensation permanent partial disability payments continue for what period of time? a) 520 weeks b) Workers Compensation does not provide partial disability benefits c) 102 weeks d) Indefinitely

a. 520 weeks partial disability is paid for 520 weeks

Which of the following describes an insurer's responsibility for payment under a policy, as stated in the common policy provisions? a) Premiums b) Limits of liability c) Consideration d) Utmost good faith

b. limits of liability

In a businessowners policy (BOP), which of the following would be covered? a) Mobile equipment b) Medical expenses c) Liquor liability d) Pollution

b: medical expenses liquor liability, pollution, and mobile equipment are all excluded under a BOP

Which of the following documents notifies the insurer of events that may lead to a possible claim? a) Appraisal statement b) Notice of claim c) Subrogative statement d) Binder

b. Notice of claim Notice of claim is a form or statement from an insured to an insurer, informing the insurer that events leading to a possible claim have occurred. The notice will include information as to how. when, and where the loss took place.

The defendant being released on a surety bail bond is the a) Insured. b) Principal. c) Suretv. d)Obligee.

b. principle The defendant has made a promise to show up in court at the specified time. The principal makes a promise to perform.

How much notice is required for the nonrenewal of a polipy? a) 15 days b) 20 davs c) 30 days d) 60 davs

d. 60 days

If an insurer is cancelling a professional liability contract, how much notice must it give? a) 15 days b) 30 days c) 45 days d) 90 days

d. 90 days The cancellation or nonrenewal of a professional liability contract requires 90 days' notice.

Which homeowners form insures both buildings and peripnal property on an open peril basis? al HO.2 b) H0-3 c) H0.4 d) H0-5

d. H0-5 Only the HO-5 form insures both the buildings and personal property on an open peril basis.

Guaranteeing future dividends is considered to be an unfeir or deceptive act known as a) Twisting. b) False financial statements. c) Rebating. d) Misrepresentation.

d. misrepresentation

How is the premium paid for the businessowners policy? a) Itemized premium b) Pro rata liability premium c) Separate premium for property and for liability d) One indivisible premium

d. one indivisible premium The premium for the businessowners policy is indivisible, meaning there is no separate premium for property and for liability.

The equipment breakdown coverage form values loss on a/an a) Valued basis. b. stated amount basis. c) Actual cash value basis. d) - Replacement cost basis.

d. replacement cost basis Property is insured on a replacement cost basis. However, if damaged property is not repaired or replaced within 24 months after the accident, settlement is at the smaller of actual cash value (ACV) or the cost to repair or replace.

In a liability policy with split limits of 25/50/25, which number is the maximum amount that would be payable in the event of damage to a person's property? a) The amount of all three numbers. $100.000 b) The amount of the first number. $25.000 c) The amount of the second number. $50.000 d) The amount of the third number. $25.000

d. the amount of the third. number 25k

Which of the following entities is considered the principal? a) The producer or agent soliciting the policy b The director of the insurance company c The head of the Department of Insurance d)The insurer issuing a policy

d. the insurer issuing a policy

According to business property coverage form vacancy condition, if a policy is issued to the owner of a building, the building will be considered vacant if what portion of the square footage is unused? a) 20% b)45% c) 50% d) 69%

d: 69% In policies issued to building owners, if at least 69% of a building's square footage is not used or rented, the building will be considered vacant.

In a DP-1, if the insured elects to apply Coverage B to a detached garage, Coverage A will a) Only be applicable if the insured pays a higher deductible. b) Only be applicable if the insured pays an additional premium. c) Be increased by 10%. d) Be reduced by 10%.

d: be reduced by 10% coverage b will take 10% of coverage A for other structures.

Which of the following exposures is not covered under the garage liability coverage form? a) Premises and operation liability b) Products and completed operations liability c; Auto liability d) Contractual liability

d: contractual liability Contractual liability. other than incidental contracts, is not covered under the garage liability coverage.

Which of the following would be eligible for Homeowners Coverage F - Medical Payments in the event of injury at the insured's premises? a) The named insured's spouse b) A guest who was hurt at the insured's party five years ago c) A person regularly residing with the insured d) A full-time maid

d: full time maid

Which of the following exclusions would specifically fall under Coverage E in Homeowners insurance? a) Contractual liability b) Bodily injury to a residence employee c) Falling objects d) Land

a: contractractual Liability coverage e is a personal liability form.

Which of the following is covered under a dwelling policy? a) Fire caused by an earthquake b) Freezing plumbing systems c) Flood or surface water d) Structures used for commercial manufacturing

a: fire caused by an earthquake Freezing plumbing systems and losses by flood, surface water, and earthquake specifically are excluded. However, fire and explosion that result from an earthquake, and damage caused by human or animal forces would be covered. Structures used for commercial or farm purposes are not eligible for coverage.

Which of the following would be considered a covered auto on your personal auto policy? a) Your farm wagon being towed by your pick up truck b) Your pickup truck used for deliveries of your retail business c) Your farm tractor d) Your farm wagon being towed by your tractor

a. farm wagon being towed by pick up truck.

An insured has a personal auto policy with the following limits: 50/100/25. The number 25 refers to a) Property damage coverage. b) Collision coverage. c) Medical payment coverage. d) Bodily injury liability coverage.

a. property damage coverage

Which of the following provisions is usually found in homeowners policies and provides a replacement cost settlement to policyholders who carry adequate insurance? a) Insurance to value b) Coinsurance c) Actual cash value d) Pro rata

a: insurance to value provides replacement cost settlement to policyholders who carry adequate insurance

The commercial general liability Coverage Part A - Bodily Injury and Property Damage provides coverage for which of the following? a) Premises b) Hired autos c)Emplovers d Machinery

a: premesis Premises, operations, products, and completed operations coverage are included in a general liability coverage part.

Which of the following statements is CORRECT regarding business income coverage under the businessowners policy (BOP)? a) The business income losses are payable for 12 consecutive months following the occurrence. b) The business income coverage is subject to coinsurance limitations of 50%. c) The business income coverage has an aggregate dollar limit. d) The business income coverage has a monthly limitation and a set benefit period.

a: the business income losses are payable for 12 consecutive months following the occurrence.

'trucking company has a $1 million umbrella policy in place. The businessowner agrees to maintain a 200/500/100 limit on auto liability, and a personal liability of $400,000. After a car accident, the business is sued. Injuries are awarded to a single injured party in the amount of $300,000. It turned out that the business actually carried only 100/250/50 auto liability limits. What is the total amount the umbrella policy will pay? a) $50,000 b) $100.000 c) $200.000 d) $300.000

b. $100,000

Premiums for controlled business CANNOT exceed a) 5 times the premiums on policies issued to the general public. b) 9 times the premiums on policies issued to the general public. c) 25% of the total premiums collected. d) 50% of the total premiums collected.

b. 9 times the premiums on policies issued to the general public.

In reference to insurable interest, which of the following is NOT an element of insurable risk? a Business b) Personal c) Blood d) Financial

b. personal blood, financial, and business are all insurable interest

An insured has $5.000 of medical coverage under a personal auto policy at the time of a covered accident. The insured and 3 passengers are inured. The insured's medical expenses are $8,000. The first passenger's total $4,000; the second passenger's total $6,500; and the third passenger's total $1.200. How much will the policy pay under the medical payments coverage? a. $5.000 b) 58.000 c) $15.200 d. $19700

c. 15,200 5k per person is the limit.

As specified in the protective safeguard endorsement added to a businessowners policy, if the automatic sprinkler system is shut down due to freezing conditions, the insured does not need to notify the insurance company as long as the system is restored within a) 12 hours b) 24 hours c) 48 hours d) 72 hours

c. 48 hours

Policy limits are the maximum amount an insured may collect, or for which an insured is protected under the terms of the a) Conditional receipt. b) Application. c) Policy. d) Insuring agreement.

c: policy

Which of the following statements concerning benefits for surviving dependent children of a worker who dies as a result of a work related accident or illness is TRUE? a) Benefits are paid until the child is age 22, if a full time student b) Benefits are paid until the child is age 25, if a full time student c) Benefits are paid until the child reaches age 16 d) Benefits are paid until the child reaches age 19

a. Benefits are paid until the child is age 22 if a full time student.

An insurance company that is owned by the policyholders is called a a) Mutual insurer. b) Fraternal insurer. c) Stock insurer. d) Reciprocal insurer.

a. mutual insurer

Who is required to pay the fee for an insurance agent's appointment? a) The appointing insurer b) There is no appointment fee c) The insurance producer d) The Commissioner

a. the appointing insurer

When an insurance producer is appointed by an insurance company, the producer is deemed to be acting on behalf of a) The insurer. b) The public. c) Him or herself. d) The client.

a. the insurer

Space Age Rockets makes model rocket supplies and has 12 employees. The company is located in Atlanta, GA. Georgia has compulsory workers compensation laws. Space Age's owner thinks that his company is too small and unprofitable to carry the workers comp plan mandated by the state. Possible consequences ofnoncompliance include all of the following EXCEPT a) Forced payment of billing for services rendered by any private insurer that "binds" coverage based on an employee's request for coverage. b) Closure of the business as a public nuisance by state officials. c) Payment for injuries in monetary amounts stipulated by the state with respect to workers compensation plans. d) Payment of fines and penalties as dictated by state compliance authorities.

a: forced payment of billing for services rendered by any private insurer that "binds" coverage based on an employees request for coverage.

Which of the following statements is correct regarding the debris removal coverage under the businessowners policy (BOP)? a) The insured's limit of liability is 25% of the sum of the direct loss payment plus the deductible amount. b) It pays for cleanup or removal of pollutants from land or water. c) It pays for removal of the debris of the insured's damaged automobile. d) The debris of covered property must be reported in writing within 270 days of the loss.

a: the insured's limit of liability is 25% of the sum of the direct loss payment plus the deductible amount. The debris removal coverage pays for the removal of debris of covered property. The insured automobile is not a covered item under the BOP. It would be covered under an auto policy. The debris must be reported within 180 days of the loss. The debris removal provision does not apply to costs for cleanup or removal of pollutants from land - this is provided under provisions of another additional coverage.

While engaged in a pick-up soccer game in the neighborhood park, the insured collides with another player, breaking his nose. Would the insured's homeowners medical payments cover the iniurv? a. Yes, medical payments coverage also applies off the insured premises. b) No, because even though it was a pick-up game, it was an organized event. c) No, personal liability applies on-premises only. d) No. the insured was not negligent.

a; yes medical payments coverage also applies off the insured premises.

A corporation is insured under a commercial general liability (CGL) policy and is named in a lawsuit to recover expenses for bodily injury and property damages from a claim. The insurance company is obligated to provide coverage for all of the following named in the suit EXCEPT a) Employees of the corporation. b) Spouses of officers and stockholders. c) Officers of the corporation. d) Stockholders.

b. spouses of officers and stockholders

NIP flood insurance policies have a term period of a. 6 months b) 1 vear. c) 2 vears d)10 vears.

b: 1 year

All of the following are additional coverages under a homeowners policy EXCEPT a) Payment for reasonable repairs and debris removal following a covered loss. b) Outbuildings. c) Fire department service charge. d) Coverage for trees, shrubs, and other plants.

b: outbuildings outbuildings are covered under other structures.

In accordance with the Connecticut General Statutes, an insurance producer may charge a service fee for an insured's initial policy. What is the amount of this fee? a) $15 b) $20 c) $35 d) $25

c. $35

The businessowners liability coverage form will cover medical expenses incurred and reported within what maximum time period after the accident? a) 90 days b) 6 months c) 1 year d) 3 years

c. 1 year

When does the insurer's duty to defend a suit or claim end in a commercial general liability policy? a) When both loss payments and defense costs equal the applicable policy limit b) When the insured agrees to the settlement c) When loss payments equal the applicable limit of insurance d) When defense costs equal the applicable limit of insurance

c. when loss payments equal the applicable limit of insurance. Claim-related expense is paid over and above the limit of insurance. Once the limit of insurance has been paid for loss, the insurer has no further obligation to the insured.

When an insured's gardener was spraying weeds in his lawn, he failed to notice that the wind was drifting the spray into the neighbor's yard where he damaged their flower bed. The insured was found to be legally liable for this damage. This is an example of a) Comparative negligence. b) Gross negligence. c) Vicarious liability. d) - Intervening cause.

c: Vicarious Liability it is due to the gardener acting on behalf of the insured.

Which of the following symbols in a business auto policy indicates that coverage for newly acquired vehicles applies if the insurer already covers all autos owned by the insured? a) Symbol1 b) Symbol 2 c) Symbol 7 d) Symbol 19

c: symbol 7 If symbol 7 is used, coverage for newly acquired vehicles applies if the insurer already covers all autos owned by the insured or if the newly acquired vehicle is replacing a previously owned auto that had that coverage.

Coverage E (Personal Liability) and/or Coverage F (Medical Payments to Others) would respond to a claim arising from all of the following situations EXCEPT a) While sweeping the floors, an insured's resident maid trips and falls down the stairs, breaking her leg. b) An insured's boat stored in the garage slips off of its supports and injures a visitor. c) An insured's dog left in the care of a friend bites a salesman. d) An insured's 14-year-old son was throwing rocks at the neighbor's house and broke several windows.

d: insured's 14 year old son was throwing rocks at the neighbors house and broke windows. it was an intentional act and he was 13 or older.

Although a businessowners policy (BOP) will cover fire damage legal liability, which of the following statements is true? a) Pollution caused by fire will be covered because pollution is covered in a BOP. b) There is a limit of $500 set on fire damage legal liability in all cases. c) The general aggregate applies to fire damage legal liability. d) The general aggregate does not apply to fire damage legal liability.

d: the general aggregate does not apply to fire damage legal liability.