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Loss valuation is best described as the process of

Determining the premium charges and the amount of insurance required on a specific property

The endorsement that provides coverage for losses arising from sudden collapse of earth arising from underground limestone created by the action of water on rick formations is

Earthquake endorsement

Restoring an insured to the same condition as before a loss is known as

Indemnity

Which of the following personal auto coverages would pay for the insured's travel expenses and loss of earnings while involved in the settlement process of a covered loss?

Liability coverage

Which of the following describes an insurer's responsibility for payment under a policy, as stated in the common policy provisions ?

Limits of liability

Insurance is a contract by which one seeks to protect another from

Loss

A couple noticed yesterday that several items of personal property were missing from their home. There has not been any apparent robbery committed, the items are merely missing and have seemingly disappeared mysteriously. The couple will

Not be able to make a claim for the property since it is considered to have mysteriously disappeared

What kind of coverage does Form DP-3 provide

Open peril

The H0-3 homeowners policy provides

Open peril coverage o the dwelling and broad form coverage on personal property

Under dwelling policy, which of the following clauses applies if an insured has lost one of two matching silver candlestick

Pair or set

Which of the following is consideration of the part of an insurer

Paying a claim

Policy limits are the maximum amount an insured may collect, or for which an insured is protected under the terms of the

Policy

Mutual insurers is owned by

Policyholders

Who might receive dividends from a mutual insurer?

Policyholders

Under the personal auto policy, liability for bodily injury resulting from the insured's use of a nonowned automobile is

Provided by the insured's policy on an excess basis

A situation in which a person can only lose or have no change represents?

Pure Risk

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT

Conditions

What dwelling policy forms primarily insures a structure on an actual Cash Basis ?

DP-1

Which of the following dwelling policy forms would pay Replacement Cost for the dwelling

DP-2 and DP-3

Additional coverages in the liability section of a homeowners policy cover all of the following EXCEPT?

Damage to the 3-party property for which the insured is legally liable. Legally liable coverage is not additional it is in liability coverage

The part of a property policy that shows the amount of insurance, premium, and policy term is the

Declarations

An insured has $5,000 of medical coverage under personal auto policy at the time of a covered accident. the insured and 3 passengers are injured. The insured's medical expenses are $8,000. The first passenger's total $4,000; the second passenger's total $6500; and the third passenger's total $1,200. How much will the policy pay under the medical payments coverage?

$15,200 Insured- $5,000 Passenger 1 - $4,000 Passenger 2- $5,000 Passenger 3- $1,200

In Texas, unless higher optional limits are purchased, the maximum amount payable for all auto personal injury protection benefits arising out of a single accident shall not exceed

$2,500

The personal property off-premises extension of dwelling forms provides limits of coverage up to

10% of Coverage C anywhere in the world

How much is covered for debris removal under the HO property additional coverages?

All reasonable costs

What is the maximum amount of time an insurer may delay payment of a claim without having to pay an additional interest ?

60 days

Which of the following would be covered by the broad theft endorsement on a dwelling policy?

A camera the insured has with him on vacation

Consideration is an essential part of

A contract

Which of the following would be eligible for Homeowners Coverage F- Medical Payments in the event of injury at the insured's premises?

A full time maid

With respect to the personal auto policy, which of the following vehicles could be classified as a nonowned auto?

A vehicle that is titled to another person, but is being used with permission by an Insured

All of the following statements concerning coinsurance are true EXCEPT? A. The coinsurance formula will also be applied to total losses B. It is used to help adequately and equity in rates C. The insured agrees to maintain insurance equal to some specified percentage of the value of the property D. If the insurance carried is less than required, the insurance may not cover the whole loss

A. The coinsurance formula will also be applied to total losses

What type of liability would a person who owns wild animals have?

Absolute

An insurer must be fair in underwriting and must pay all covered losses of any insured. For the faithful execution of these duties, an insurer has the right to

Accept payment of premiums for all policies currently in force

A property insurance policy that is not subjected to any coinsurance requirements but has a set amount of insurance scheduled for the property would use what loss valuation method

Actual Cash Value

Under a personal auto policy, in which if the following locations would a vehicle primarily garaged in California be covered

Any other state

While an insured's covered auto is in the repair shop following damage caused by a collision, the insured would have coverage for which of the following vehicles under a personal auto policy?

Any vehicle not owned by the insured, but furnished for use while the covered auto is out of normal use because of repair

John had a disagreement with his insurer on the value of his damaged property. After making a written demand, both John and the insurer each selected an appraiser. The appraiser agreed on a fair value without having to select an umpire. What condition did John use?

Appraisal

An insured insists that the insurer owes him $10,000 for liability damages, while the insurer asserts that they owe no more than $7,000. Which of the following would most likely describe the type of claim settlement that the insured and the insurer might pursue?

Arbitration

The difference between Arbitration and Appraisal

Arbitration is whether the loss will be paid or not. Appraisal is disputing how much should be paid, the loss is covered

Which of other following describes the transfer of legal right or interest in an insurance policy ?

Assignment

Which of the following other coverages is NOT include in the basic form dwelling policy?

Breakage of glass

Which of the following other coverages is NOT included in the basic form dwelling policy

Breakage of glass

An insured was involved in an automobile accident for which the insure was at Fault. Which of the following coverages would pay for damages to the insured's automobile?

Collision

What type of information would be found in a policy's insuring agreement

Renewal date

Insurance is a type of:

Risk

All of the following are considered unfair trade practices in the business of insurance EXCEPT A. Sharing commissions B. boycott C. Rebating D. Defamation

Sharing commissions sharing commissions is allowed as long as both people are licensed

A certificate of Insurance is a written document that

Shows the types and amounts of insurance issued to the insured

Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages?

Special

When an amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss, the coverage is said to be written as

Stated amount

If the premium collected by an insurer participating in the WYO flood program are insufficient to cover losses, which of the following would be true?

The insure will be reimbursed for the excess by the NFIP

Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy ?

The insured would be responsible for the amount required as underlying limits in the event of a claim

When a direct chain of events resulting from a negligent act causes injury or damage, that act is considered to be

The proximate cause

Which of the following best expresses the purpose of a sated value contract

To pre-establish the amount of coverage available for property items that are difficult to value

All of the following are supplemental payments included in the liability section of a personal auto policy EXCEPT

Up to $100 for the cost to secure the release of a vehicle From an impoundment lot following a covered accident

When an insured's gardener was spraying weeds in his lawn, he failed to notice that the wind was drifting the spray into the neighbors yard where he damaged their flower bed. the insured was found to be legally liable for this damage. This is an example of

Vicarious Liability

The declaration is the

Who, what, when, where, and how much insurance and premium.

An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?

illegal

Conditions are part of the

policy structure

Collision is

the upset or impact of a covered vehicle with another vehicle or object