Missed questions
what is the maximum amount an insurer will pay under the equipment dealers pollution clean up and removeal extension of inland marine policy
$10,000 for all expenses inccured during 12 month period
what is the maximum allowed value of a gift that an agents can give to an insured without violation the regulation on rebating
$25
the limits of liability for bodily injury or property damage is in auto insurance 30/60/25 whats the maximum limits of limits of liability
30/60/25
An insured owns a building vauled at $400,000 to comply 80% coininsurance provisions of his insurance policy, how much should he insure the property for?
80% of the replacemnt cost or more
combined single
A single dollar limit of liability applying to the total of damages for bodily injury and property damage combined, resulting from one accident or occurrence.
what is a certificate of insurance
A written document showing the types and amounts of insurance that have been issued to the insured
the HO policy form that covers condos are?
HO-6
A mobilbe homeoweners policy is structured at the same as a
Homeowners policy
the policy conditions define
How parties to the contract must act following a loss.
insurance is a contract by which one seeks to protect another form
Loss
suerty bonds are written for a definate limit called
The bond penalty
which of the following is considered a work-related injury/occupatinoal disese under workers comp
Tom works as a painter in auto body shop. the chemicals from the paint aggravates toms asthma to the pont he must be out for 7 days
what is the business auto coverage teritory
US and its territories, canda or world wide for private passenger hired auto
an unisured motor car includes all the following except
a vehicle being used for public livery
when transacting business is this state formed under the laws of another country is know as
alien insurer
which of the following is mandatory part of an insurnace policy that varies with each individual policy?
declarations
whichh of the following is manatory part of insurance policy that varies with each individual policies
declarations
what terms includes damage to the building where the insured peril was proximate cause of loss
direct loss
Pro rata liability clause is designed to protect the principle of
indemity
Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost?
indemity
an insured owns several buildings each at different locations and insured on a spate policy what type of coverage does this insured have
specific
after filling a claim an insured tells the insurer that there is more than one insurance policy enforced that the insurer sets aside the claim until it hears what the other company will pay the insurers action will be classified to
unfair
an insured is a member of the neighborhood association and has become liable for damages to a third party. each member of the association has been assessed a portion of a loss equal to $2,000 how much of the loss settlement of HO policy pay?
up to $1,000
the proof of loss statement must be in
writing
toms truck service vehicle was stolen. the policyholder may obtain coverage for transporation expenses to which of the following limits
$20 per day maximum of $600
anyone who violates the insurance code of Texas may be fined up to
$25,000
equipment breakdown coverage is written with a single limit of insurance per accident. what is the sublimit for hazardous substance cleanup or replacement of contaminated property
$25,000
coverage for an over flow pump is excluded from the dwelling policy with the purchase of the water back up pimp overflow endorsement it covers up $5,000 in loss or damage can be provided for additional premiums. what is the deductible associated with this coverage
$250
The regular NFI program would insure an eligible single family dwelling up to for
$250.000
an insureds building has ACV of $200,000 and he has insured the property with an 80% coininsurance clause. A $0.000 loss occurs. how much will the policy pay?
$30,000
The insureds home is covered by HO-3. 2 years ago. the insured bought the home for $58,000. today its replacement value is $60,000how much coverage A does the insured need to qualify for a replacement cost coverage?
$48,000
If a liability policy had split limits of 50/100/30, what is the maximum amount that would be payable in the event of injury to a single person?
$50,000
whithin the first 60 days of coverage under dwelling policy. how much notice is required for the cancellation of a policy
10 days
what is the required notice of cancellation of HO policy
10days
under the conditions of fil coverage form how long must the insured maintain his records of each production
3 years after the policy expires
what percentage of CE hours must be in classroom setting
50%
IN Texas what is the percentage of workers comp?
75%
under works comp an insurance carrier will pay death benefits to the legal beneficiary in a amount equal to what portion of employee average weekly wage
75%
which of the following statements is true regarding the premium computation for workers comp insurance
A premium auditor has the right to examine the insureds compensation records at the end of the policy period to determine the actual premium basis
a mobile home policy is structured the same as a
Homeowners policy
insurance is a contract by which one seeks to protect from another
Loss
which of the following would be covered under the crime coverage inside the premise-theft of money and securities
Loss or damage to a lock safe , vault or cash register
burglary is defined as
Taking of property from within the premises leaving visible signs of forced entry.
which of the following protects consmers against the circulation of inaccurate or obsolete personal or financial information?
The fair credit act
a tornado that destroys property would be an example of which of the following
a peril
in a persons auto policy, the medical payments coverage is similar to
accidents insurance because it pays medical expenses regardless fault
which part of an insurance covers claims expense, reasonable expenses incurred by an insured to protect damage property from further loss
additinal coverage
a perosn who is not named as insured on the declarations page of the policy but is protected by the policy is known as the
additional insured
a person who is not named as an insured on the declarations page pf a policy but is protected by the policy is known as the
additional insured
which of the following coverages is not included on the basic dwelling form policy?
additional living expense
Crime insurance is usually written on what basis?
all risk
all the following statements are true regarding he relationship among the amount of insurance expect?
all the property losses under the basic form are settled on a replacement cost basis
the inspections and surveys condition in a businessowners policy
allows the insurer the right to inspect the insureds premises
Which coverage form would provide coverage for all incoming and outgoing shipments?
annual transit
which coverage would provide for all incoming and out going shipments
annual transit
with respect of the business of insurance a hazard is
any condition or exposure that increases the possibility of loss
an installation floatier is used to insure
appliances to become a permanent part of the building
all the following must be true of an individual before a license can be issued except that the
applicant submitted his or her most recent tax return to the department
which of the following an example of protective safeguard in a business owners policy
automatic sprinkler systems
A policy that insures all property at multiple locations for a single amount is referred as to
blanket
which of the following must an insurer obtain in order to transact insurance within a given state
certificate of authority
Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as
coercion
a producer who fails to segregate premium monies from his own personal fund is guilty of
commingling
a plasterer has a finished job . what kind of liability coverage would protect him if the plaster falls and hurts someone because he did nit do the job correctly ?
completed operations
what term best describes the act of withholding material that would be crucial to an underwriting decision
concealment
the part of the policy that sets forth rules of conduct duties and obligations of the parties is s called
conditions
what are parts of a policy structure consideration is essential part of a contract?
conditions
an insured business is damaged because of a fire, and he is forced to close the business temporarily for repairs. as a result the insusred lost income what type of loss is this
consequential
an insureds business is damaged because of a fire, he is forced to close the business for repairs the insureds loss income what type of loss is this
consequential loss
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
when an insured make trueful statements on the application for insurance and pays the required premium, its known as which of the following
consideration
in Texas the state CE requirement
consist of completing 24 hours CE each biennium
An individual construction company leaves a mobile equipment and construction machinery on the job site until the project is completed, what could the person use to insure it?
contractors equipment floater
whic if the following is the fair rental value coverage in dwellin gpolicy
coverage D
in property and casualty what is the, for the amount of loss that the insured must cover out of pocket , and insurer will only pay for the additional amount of the loss above this limits
deductible
Which of the following terms describes making false statements about the financial conditions of any insurer that are intended to injure any person in the business of insurance e
defamation
the part of the policy that clarifies terms in the policy
definitions
Employment practice liability insurance EPLI would not cover claims arising form
deliberate
which of the following would not be considered unfair discrimination by insurers
discrimination in benefits and coverages based on the insureds on the insureds habits and life style
Al the following could be considered rebates if offered to a insured in the sales of insurance except
dividends from a mutual insurer
According to the appraisal condition of a homeowners policy, what procedure may be followed if the insurer and insured do not agree as to the size of a loss?
either party may make a written request for an appraisal
diectors and officers liability insurance defends actions against a corporation or its officers and directors alleging wrongful acts, with regards to the coverage provided wrongful acts include any of the following excpet
embezzlement
directors and officers liability insurance defends actions against a corporation or its officers and directors alleging wrongful acts, with regard to the coverage provided, wrongful acts include any of the following except
embezzlement
what type of coverage does umbrella policy provide
excess coverage over an underlying or primary policy
all of the following are found in the declaration page excpet
exclusions
the section of an insurance policy that details what perils are Not insured against and what person are not insured is know as the
exclusions
what method of premium computation relates an employers losses,payroll,and premium to the rationg bureaus classification of operations
experience modification factor
All the following are excluded in the breakdown basic policy Except
explosion of steam boilers
on what participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are.
fiduciary responsibility
the requirement that agents not commingle insurance monies with there own funds is known as
fiduciary responsibility
which of the following is not covered by the condo unit endorsement
furniture in the building
insurance transactions , fiduciary responsibility means
handling insurer funds in a trust capacity
events or conditions that increase the chance of an insured loss occurring are referred as to
hazards
regarding workers comp employees who have reached maximum medical improvement will be entitles to
impairment income
regarding workers comp, employees who have reached maximum medical improvement will be entitled to
impairment income benefits
an additional loss that results from a direct loss of property is called an
indirect loss
when is hired and nonowned auto liability endorsement available in a business policy BOP?
inly if the insured does not have commercial auto coverage
which of the following occupants would not directly help to quality someone for the office of commissioner of insurance
insurance agent
all of the following are facts in the determination of ACV except
insurance premium paid
persons covered under an insurance policy, whether named or not is known as the
insureds
How does the mobile home endorsement affect the other coverage of law or ordinance in a homeowners policy?
it removes the coverages
all the following are true regarding deposit premium except
its 50% of the actual premium
if an employer in state with elective workers compensation laws chooses not to be subject to those, laws, what does the employer lose
its common law defense against liability suits
All of the following statements describe there concept of strict liability except
its imposed on defendants engaging in hazarders actives
which of the following is defined as a covered cause of loss in a business property coverage?
leakage from fire-extinguishing equipment
fro a contract to be enforceable by law the purpose of the contract must be
legal and not agaisnt public policy
which of the following coverages in dwelling and HO policies is for indirect loss?
loss of use
which of the following is not considered a misrepresentation as it pertains to unfair trade practice
making comparisons between different policy
Dans house would cost $150,000 to rebuild the house if something happened to it, when he tries to sell it the best offer was $80,000. the insurance company will insure the house for only $80,000. what method of valuation is used to insure this proprerty
market value
an insureds house will cost $1550,0000mto rebuild the house if. if something happens best offer to receive the claim I $80,000. what method of valuation is use to insure this property
market value
which policy consist of the declarations and conditions, endorsements and other attachments applicable to a single line of insurance
monoline
on a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are
not taxable since IRS treats them as a return of a portion of the premium paid
when does the coverage begin under the builders risk from?
on the date constriction starts
What insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk?
other insurance
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
penalty
The cause of loss insured against in an insurance policy are known as
perils
which professional liability form provides coverage for liability arising out of malpractice, error ,or mistakes made in rendering professional services
physicians , surgeons, dentist malpractice
who are the oarties to a bond?
principal,obligee,surety
under the coverage of which of the following liability poilices may an insurer to defend a claim
professional lability
which of the following liability policies is usually written on a claims made form
professional liability insurance
under the coverage of which of the following liability policies may an insured require the insurer to defend a claim
profrssional liablility
pertaining to insurance, what is the definition of a fiduciary responsibility
promptly forwarding premiums to the insurance company
the gramm-leach Bliley act was passed tto?
protect private customers information files with a financial institution
'\/which of the following is included under the physical damage coverage of a peroneal auto policy
sound reproduction, equipment permanently installed in the covered auto
payment for medical expenses loss of wage funeral expense or the cost to repair damaged property is know as what compensatory damages
special
the legal process that gives the insurer after payment of a loss the right to seek recovery from a third party that was responsible for the loss is known as the
subrogation
in terms of parties to a contract, which of the following does not describe a company party
the Person must have at least completed secondary education
an insureds accounts receivable records have been damaged. the loss may be covered with
the accounts receivable coverage form
an insurance agency could purchase an errors and omission insurance policy which would provide protection in the event of any of the following events except
the agency losses commissions income from the policies that were not issued by the insurer
which of the following would quality as a competent party in an insurance contract
the applicant has a prior felonie conviction
all the following statements concerning coinsurance are true except
the coin insurance formula will also be applied to the total losses
the claims made trigger is based on which of the following?
the date the claim is first made writing against an insured for injurie or damaged that occurred on or after the policy retro activate date
an employee is entitled to impairment income benefits beginning
the day after the employee reaches the maximum medical improvement's
When an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays
the excess over the self insured retention
an employee may be eligible for supplemental income benefits on
the expiration of impairment incomer benefits
an agent receives an emergency cease desist order for chronically misrepresenting his insurance policy, the agent knows he didn't make these violations stated in the order. he wants to contest the charges in court. which is true
the hearing must be held within 10 days of the request unless they agree to a later date
under the Texas property and casualty insurance guaranty association, what is the maximum amount that a claimant may recover from an occurrence under a policy issued by an insolvent insurer?
the lesser of the above amount
Under the Texas and casualty insurance guaranty association, what is the maximum amount the claimant may recover from an occurrence under a policy issued by an insolvent party
the lesser of the above amounts
the cancellation provision in a business owners policy specifies all of the following except
the method of transferring the owner rights
which of the following statements is true concerning a bonded contractor who defaults a construction performance contract
the obligee may engage another contractor and seel reimbursements for surety
on a DP-3 dwelling propoerty specail form policy, the coverage provided for peronal prpoerty is
the same as provided on DP-2 broad form
which of the following is an example of a producer fiduciary duty
the trust that a client places In the producer in regard to handling premiums
a specific covergae part is listed on the commercial package policy declarations page, but there is no premium shown, what does that mean
there is no coverage
which of the following is regarding true single dwelling insured at least 80% of the replacement cost value
they are automatically provided with the replacement cost coverage
prior to state-directed workers comp statues being enacted, employees had
to sue an employer for the loss and prove the employee was at fault
the type of insurance used to cover goods for one specific trip is called
trip transit
supplementary payments on a CGL provide all the following excepts
up to $500 a day for lost earnings $2000 for the cost of bail bonds
the insured with a claims-made commercial general liability policy may request in writting claim and occurrence information fromthe insurer at anytime up to 60 days after the policy periods ends . the insurer must provide information
within 45 days
Commercial package policy, allows the insured to select the coverage needed and customize the policy to meet the needs of the insureds business in a CPP the business owner my select from all the following types of coverages except
workers comp coverage
An advertising company has its annual holidays party, they had to much to drink and was involved inn an accident. the occupants car the other car is suing the company will the company business owners policy provide coverage
yes non of the exclusions apply
a commercial property speacil form covers property in transit up to
$5,000
within how many years of a loss may an insured bring a lawsuit againt an insurer according to the dwelling poilcy
2 years
the employees theft crime policy includes a coverage extension that applies to employees temporaily outsiide the coverage territory for up to
90 days
which of the following is not found in commercial package policy
certificate of authority
ABC corporation has,$100,000 coverage on the building through company A, and $50,000 on the same as B assuming coininsurance isnt issued when $24k loss occures and pro rata methodis used how much will each insurer pay
company A pays $16,000 company B $8,000
because an insurance is a legal contract, it must confrom to the states laws governing contracts which required all the following elemnets except
conditions
Under the limits of insurance provision found in the Physical Damage Coverage Form in a Commercial Auto policy, how much will an insurer pay to repair or replace a covered auto?
the lesser the actual cash value or the cost to repair or replace a covered auto
in terms of parties in a contract, which of the following does not describe a competent party
the person must have at least completed secondary education
which of the following is an example of a producer fiduciary duty
the trust that a client places in the producer in regard to handling premiums
All of the following are true statements of supplementry payments of a commercial general liabiliity policy except
they pay defense cost even after the aggregate limit has been reached
yje part of the policy that sets forth the rules of conduct,duties, and obligations is called ?
conditions
the basic DP-1 provies all the following coverages without endorsements except
coverages for additional living expense
which of the following is not the consideration an insured under a HO policy
A divorced spouse living in another state
Which of the following policies will help an auto dealership cover most of its liability exposers
A garage liability covergae
A tornado that destroyes property would be an example of?
A peril
which of the following statements is true regarding the premium computation for workers comp insurance
A premuim auditor has the right to examine the insureds comp recoreds at the end of the policy period to determine the actual premium basis
which of the following would be required to be licensed as an insurance producer
a salaried employee who advertises and solicits insurance
what type of liability would a person who owns a swimming pool?
absolute
The insreds house cost $150,000 to rebuild if something happens to the house. when he tries to sell the home he only get $80,000. what method of valution is use to insure the house
actual cost value
which of the following types of valuation works best for porperty whose value dose not fluctuate much
agreeed value
crime insurance is usually written on what basis
all-risk
bob insist that the insurer owes him $10,000nin damages. the insurer owes him no more than $7,000 which of the following is most likely to pursue
arbitration
which of the following is a method of claim settlement used in casualty insurance when the insured and insurer cannot argee on how too settle a claim
arbitration
if a loss occurs the insured with HO policy is requiured to do the following excpet
arrange for an apprasil by an unbiased third party
which of the following describes the transfer of a legal right to interest inn an insurance policy
assignment
in return for the premium an insurance company must
be fair in the underwriting and paid covered losses
an employee is injured while visiting employer out of state how does workers comp benefits come in to play
benefits will be provided if the state was listed on the policy information page
the crime of force entry into the premises of another by person with felonies intent is define as
burglary
injuries that occur when an employee is traveling to or from work are
covered under workers comp only when the means of transportation is paid for by the employer
which of the following is covered under the mail floater of commercail inland maarine policy only if is sent by regesterd mail
currency and unslod traverls check
an insured applying for casualty insurance policy one of the conditions of the party allows the insurance company to inspect the insureds books at the end of the policy term to make sure sufficient premium has been collected for the exposure she plans to insure which condition is part of the insureds policy
deposit premium audit
Which of the following specail liability coverages will provide protection to managers of a corperation for claims from a wrongful act committed by the manager while in official capacity
directors and officers liablity
the section of insurance policy that details what perils are not aganist and what persons are not insured is known as the
exclusions
in liability insurance policies supplementary payments are made
in addtion to the limit of liability
What do individuals use to transfer their risk of loss to a larger group?
insurance
all of the following are conditions commonly found in insurance policy except
insuring agreement
the part of an insurance contract that describes the covered perils and the nature of coverage of the contractual agreement between the insurer and insured is called
insuring agreement
an applicant for a license in Texas must include a statement with his application that provides information about all the following except
intending to apply for another license
joint underwriter association
is a voluntary association of admitted insurers whose members have been authorized by the state to provide a particular type of insurance to the public this type is not available from this voluntary market
residual markets
is an insurance market or facility that assumes risk that are unacceptable to the voluntary insurance companies, Assigned risk are part of the residual market all admitted share higher risk divers
temporary license
is granted up yo 90 days without examination to applicants whos completed 4o hours of training course before applying for the license or within 14 das after applying for a license A temporary license cannot be renewed
the additional living expense coverage on HO policy
is intended to allow the family to maintain its normal standard of living
if an employer in a state with elective workers compensation law chooses not to be subject to those laws, what does emplooyer lose
its common law defence agaisnt suits
a contract to be enforceable by law the purpose of the contract must be
legal and not against public property
in which of the following 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 sustain form
All the following woulb be covered under the medical expense coverage of a businessowner policy except
metal health counseling
Duties of the insurer found in property policy conditions include all of the following EXCEPT
notify the insured's in the event of a financial difficulty
a bond is written for a set limit and the surety will be liable only for this amount of the limit this is known as the
penalty
an insured has a liability policy that sets the amount for all claims that arise from a single accident at $50,000 which does this insured policy have
per occurrence
when ABC market stated that its mowing machine was the only safe mower avalible to buy, ABC was sued by XYZ lawn garden which general liability coverage?`
personal and advertising injury liabilty
which of the following statements is incorrect with the regards to surplus lines insurance
policies written by a surplus lines insurer typically contain standard coverages and forms
while an insured was towing a trailler with his car the trailer came loose and hit a strore what part of the insureds auto poilcy would pay for thr=e damage inn the store
property liability damage
after a loss an insured covered by business property coverage is not required to
reconsruct for the insurertimeline of activites leading up to a loss for use in an investigation
which of the following is used in the formula calculating actual cash value of a property
replacement cost
in property insurance actual cash vale is defined as which of the following
replacement cost at the time of loss less depreciation
insurance is the transfer of
risk
the transfer of an insured right to seek damages from a negligent party to insurer is found which of the following clauses
subrogation
insurance produced from an unauthorized insurer is called
surplus lines
which of the following symbols is avalible to an insured with vehicles subject to no fault coverrage
symbol 5
an insurer can cancel a peroneal auto policy by giving the named insured 10 days prior written notice for any of the following reasons except
the cancellation is to take effect on the 12- month anniversary of the policy
perils most easily defined as
the cause of loss insured against
All of the following statements concerning coinsurance are true except
the coin insurance formula will also be applied to total losses
which of the following dwelling coverages would provide coverage to a garage not attached to the primary insured dwelling
the damage occurred when the concrete fell
which of the following losses would be covered under the property iability coverage of a peronal auto coverage
the insured damages a rented garage when he failed to stop in time
According to the standard workers comp and emplooyer liability policy form, a state should be listed in part 3- other states insurnace of the workers comp and employers libality policy when
the insured expcets to extend operations to the state
the medical payments coverage in a peronal auto policy will pay reasonable medical expenses for all the following execpt
the insured is injured while exiting a frends moblie home
which of the following circumstances would be excluded under medical payments coverage of a personal auto policy
the insureds is inured while driving motorcycle on his resident premises
all of the following conditions must exist for injury damage to be included in the products and complete operations hazards of a commercial general liability except
the inury or damage must occur within 90 days after the work insured is complete
A sued car daler trades his car in for a partial payment for a car on its lot. customer ddint bring a title AN other customer test drives the used car and got into an accident which coerage is true
there is no coverage
which of the following is not settled on a actual cash vaule basis while coveredd under the business property coverage form
valuble papers and records
which of the following is not one of the additional coverages in the builders risk form
vandalism
when a replacemnet auto is aquired during the policy period, what coverages will apply to it automatically under peronal auto policy
whenever covergae applied to the vehicle being rreplaced