New Questions
Claims filed with the insurance company by the insured are known as: a. first party claims b. third party claims c. self-insured claims d. subrogation claims
a. first party claims
A print shop is insured under a BOP with a separate policy covering the press. If a loss occurs that is covered under both policies, how will the BOP respond? a. in this situation, the BOP is considered excess coverage b. the BOP would not respond to this claim at all because other coverage was in effect c. the BOP will pay a share of the loss in proportion to the other policy d. the abandonment clause under the BOP policy will allow the insured to abandon the property to the other insurer
a. in this situation, the BOP is considered excess coverage
Products being imported from Great Britain into the US would be covered by: a. ocean marine policies b. commercial property floaters c. commercial inland marine policies d. trip transit policies
a. ocean marine policies
The DP-3 standard Dwelling form provides: a. open peril coverage on the dwelling and other structures and broad form peril coverage on contents b. broad form peril coverage on buildings and contents c. basic peril coverage only d. fire, lightning, extended coverage and V&MM coverage only
a. open peril coverage on the dwelling and other structures and broad form peril coverage on contents
Under the Farm insurance forms, the maximum amount payable for a loss to a satellite dish is: a. $250 b. ACV c. $500 d. $750
b. ACV
Which of these statements best describes "the law of agency?" a. the activities of any party who receives a percentage of the profits from a business transaction b. a relationship in which someone is authorized by contract to represent another party c. the duties of a professional who is trained and license to prepare legal documents d. the activities of any licenses insurance professional
b. a relationship in which someone is authorized by contract to represent another party
In a published interview, a local merchant charges that one of his competitors is guilty of unethical and illegal business practices. The competitor sues and is awarded $25,000 in damages. Under which definition of "personal injury" would the merchant have coverage for this claim under his CGL policy? a. false arrest, detention, imprisonment, malicious prosecution b. libel, slander, defamation, Invasion of property c. wrongful entry or eviction d. personal Injury coverage would not apply in this case
b. libel, slander, defamation, Invasion of property
Which of the following sections of an insurance policy contains language to assist an insurance company in managing moral and morale hazards? a. the conditions b. the exclusions c. the declarations d. the insuring agreement
b. the exclusions
A public adjuster represents the interest of: a. the insurer b. the insured c. the employer d. the interest of the general public
b. the insured
Under Coverage F- Unscheduled Farm Personal Property, the most that will be paid for a "head" of livestock (an adult animal, one year of age or older) is: a. $5,000 b. $2,500 c. $2,000 d. $1,000
c. $2,000
A loss reserving method that establishes aggregate reserves for all claims for a single line of insurance is known as: a. average value method b. roundtable method c. formula method d. loss ratio method
d. loss ratio method
Which of the following types of property can NOT be covered under a Commercial Inland Marine form? a. property being held by a bailee b. property with an element of portability c. property that travels between different locations d. property being manufactured and shipped to Europe for sale
d. property being manufactured and shipped to Europe for sale
A standard Homeowners policy has been issued to cover a one-family structure with a coverage limit of $75,000 on the dwelling. What is the automatic amount of insurance coverage on personal property? a. $37,500 b. $7,500 c. $15,000 d. $45,000
a. $37,500
Which of the following would be covered under Section II- Liability of the Homeowner policy? a. damage to rented premises occupied by the insured caused by a fire accidentally set by the insured b. intentional acts of the insured c. operating a dirt bike off the insureds premises d. operating a 75-HP boat owned by the insured
a. damage to rented premises occupied by the insured caused by a fire accidentally set by the insured
All of the following would be included on the proof of loss statement of a property loss claim, EXCEPT: a. documentation of the pain and suffering the insured has experienced due to the property loss b. the date the loss occurred c. the amount of coverage provided by the policy at the time the loss occurred d. damage estimate, inventories, and/or receipts showing the value of the property
a. documentation of the pain and suffering the insured has experienced due to the property loss
The insured has a per occurrence limit of $50,000. He is found liable and his insurance company pays a claim for $50,000 to Claimant A. Claimant B files suit for $100,000 for injury arising out the same occurrence. The company: a. has no obligation to defend the suit b. must defend the suit, even if groundless c. must still conduct an investigation d. must defend the second suit and pay all expenses
a. has no obligation to defend the suit
Uninsured motorist coverage in South Carolina: a. may not be rejected by the insured b. is not required c. must at least be offered d. may be rejected by the insured
a. may not be rejected by the insured
Fidelity bonds covering Employee Dishonesty pays for all of the following losses, EXCEPT: a. mistakes made by employees that cause a loss to the insured business b. a dishonest act of an employee causes a financial loss to the insured business c. an employee steals from a customers home while performing a service on behalf of the insured business d. a plan official who embezzles money from the insured businesses ERISA retirement plan
a. mistakes made by employees that cause a loss to the insured business
For the insured dwelling and other structures, the DP-3 provides: a. open peril coverage b. the broad form perils c. the basic form perils d. fire, lightning, the extended coverage perils and vandalism and malicious mischief coverage
a. open peril coverage
Which of the following types of fiduciary bonds might an executor of an estate be required to purchase? a. a guardians fiduciary bond b. an administrators fiduciary bond c. an executors fiduciary bond d. a probate bond
c. an executors fiduciary bond
An insured has reported a claim late that occurred over one year ago and now seeks defense representation and coverage under his automobile policy. What should the adjuster do? a. deny the claim b. investigate the claim c. issue a reservation of rights letter d. advise the insured to seek his own legal counsel
c. issue a reservation of rights letter
The optional coverage for "Money and Securities" under a standard Businessowners policy provides for the loss of money and securities used in the insured's business as a result of all of the following, EXCEPT: a. theft b. disappearance c. destruction d. fraud
d. fraud
The definition of "occupying" in the personal auto definitions means all of the following, EXCEPT: a. in a vehicle b. upon a vehicle c. out of or off, a vehicle d. under a vehicle
d. under a vehicle
The Terrorism Risk Insurance Program Reauthorization Act of 2015 excludes all acts of terrorism if the act is committed as part of the course of a war declared by Congress with the exception of one line of insurance. Which of the following lines of insurance is the only one that would still be covered for loss or damage due to acts of war? a. commercial property b. excess lines coverage c. directors and officers liability d. workers compensation
d. workers compensation
Which of the following additional coverages under the Building and Personal Property coverage form does not increase the limit of liability of the policy? a. preservation of property b. electronic data c. fire department service charge d. pollutant clean-up and removal
a. preservation of property
Professional liability insurance covers which of the following? a. alleged non-performance b. malpractice c. negligence d. all are correct
d. all are correct
Mr.Kessler has an auto policy with bodily injury limits of $15,000/$30,000. He injures two people in one accident. Mr.Brown receives injuries of $19,000. Mr. Jones receives injuries of $15,000. Legal expenses to defend Mr.Kessler total $10,000. How much is Mr.Kessler liable for after his insurance company makes it payment? a. $4000 b. $15,000 c. $14,000 d. $19,000
a. $4,000
Which of the following expenses would be covered, in full or in part, by the supplementary payments section of the Personal Auto policy? I. bail bonds II. loss of earnings for attendance at trials or hearings III. post judgement interest IV. arbitrator fees a. I, II, and III only b. I and II only c. I and III only d. I, II, III, and IV
a. I, II, and III only
While in England an insured has her purse stolen and files a claim of $500 of cash, $1000 in airline tickets, $250 for miscellaneous items and $50 for the value of the purse. How much of this loss would be covered under a DP-1 dwelling form? a. Nothing b. $1050 c. $1800 d. $1750
a. Nothing
Which of the following Business Automobile policy symbols permits the insured to purchase coverage for both liability and physical damage? a. Symbol 3 b. Symbol 7 c. Symbol 19 d. Symbol 6
a. Symbol 3
Which of the following coverage symbols would be designated on the Declarations of a Commercial Auto policy to cover a customers auto left with the insured to be serviced? a. Symbol 30 b. Symbol 31 c. Symbol 32 d. Symbol 33
a. Symbol 30
A department store has a large inventory of costume jewelry and watches. No single item is valued for more than $100.00. A customer steals most of the items and flees the scene. What theft coverage would be provided by an unendorsed standardized BOP policy? a. $500 b. Full limit of Coverage B c. $2,500 d. No coverage for the theft of jewelry and watches
b. Full limit of Coverage B
Which Garage Coverage form symbol is used to indicate that the covered auto is subject to compulsory no fault law/ a. Symbol 26 b. Symbol 25 c. Symbol 30 d. Symbol 28
b. Symbol 25
A claim is made on an excessive liability policy. It is discovered during the claims investigation, that the underlying liability policy and excess liability policy have different inception and expiration dates. The adjuster finds that the different dates has created a situation where the underlying policy was not in effect at the time of occurrence, and therefore cannot trigger the excess liability policy to pay the claim. This situation is known as: a. contribution by equal shares b. nonconcurrency c. liability discrepancy d. split limits
b. nonconcurrency
The insured has liability coverage with a limit of $300,000 per occurrence. She purchases a $1 million Personal Umbrella 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 case likely be settled. a. the underlying policy would pay nothing, the insured would pay $10,000 and the Umbrella policy would pay $200,000 b. the insured would pay $10,000 and the Umbrella policy would pay $790,000 c. the underlying liability policy would pay $300,000 and the insured would pay $500,000 d. the underlying liability policy would pay $300,00-
b. the insured would pay $10,000 and the Umbrella policy would pay $790,000
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 a. $50,000 b. $150,000 c. $100,000 d. $35,000
c. $100,000
Jewell has filed a lawsuit because she was injured by a negligent party. During the court proceeding, it is determined that Jewell was 15% negligent in her own injuries, however, the award for damages was set at $22,000. Jewell's state uses the pure comparative negligence standard to compute damage awards therefore, the amount Jewell will receive in damages is: a. $3,300 b. $22,000 c. $18,700 d. $25,300
c. $18,700
The insured owns a one family dwelling with a detached garage. The dwelling is insured for $200,000. How much coverage applies to the detached garage? a. $10,000 b. $15,000 c. $20,000 d. $0
c. $20,000
Camilla had an at-fault accident in her car and was sued for damages. Camilla is an executive with a major corporation and earns $2,500 per 5 day work week. Her insurance company has requested her appearance in court to defend herself against some of the damages claimed. She missed 2 days of work and will not be paid for that time. How much will Camilla's personal automobile policy pay her in total for the lost earnings? a. $0 b. $1000 c. $400 d. $500
c. $400 (200 x 2)
The insured has suffered a covered loss under his DP-3 dwelling form. He fails to protect the property from further loss. The additional loss that occurs as a result of his inactions may be denied because of what clause in the policy? a. Because the insured created an intentional loss b. Because failure to protect constitutes soft fraud c. Because there was a failure to perform the required duties d. Because failure to protect constitutes hard fraud
c. Because there was a failure to perform the required duties
The Terrorism Risk Insurance Program Reauthorization Act of 2015 excludes all of the following, EXCEPT: a. commercial auto coverage b. surety bonding c. commercial property coverage d. theft insurance
c. commercial property coverage
Most aircraft physical damage policies are settled on a: a. replacement cost b. market value c. insured value d. ACV
c. insured value
All of the following are reasonable duties of care that are required of employers, EXCEPT: a. provide an adequate number of competent employees b. provide safe tools and equipment to workers c. warn workers of obvious dangers d. make and enforce rules for the safety of all workers
c. warn workers of obvious dangers
The increased cost of compliance coverage on flood insurance provides: I. policy limit coverage for ordinance and law changes II. coverage for flood plain management ordinance or law changes III. $30,000 of coverage per building a. III only b. II only c. I, II, and III d. II and III only
d. II and III only
Which of the following would not be considered an employee for workers compensation coverage in South Carolina? a. an alien unlawfully employed in a trade or profession b. all members of the South Carolina National Guard c. a person serving as an apprentice in a lawful trade d. a casual employee and not in the course of a trade
d. a casual employee and not in the course of a trade
The insured has an occurrence CGL policy a $600,000 aggregate limit and a $300,000 per occurrence limit. The insured has a claim during the policy term which was settled for $350,000. Another occurrence in the same policy term is settled for $100,000. How much of the aggregate limit will remain for other occurrences in this policy period? a. $200,000 b. $50,000 c. $600,000 d. $400,000
a. $200,000 [600,000- (300,000+100,000)]
Which of the following relieves the financial burden on the claimant by making certain payments to the claimant even before the claim is negotiated? a. advance payment b. rehabilitative payment c. partial release settlement d. conditional partial release settlement
a. advance payment
When an insurer takes no action upon realizing material changes in a contract, this is called: a. an implied waiver b. a misrepresentation c. a warranty d. a guarantee
a. an implied waiver
The Ocean Marine coverage that insures either prepaid shipping charges, or the income to be earned for moving cargo is known as: a. freight insurance b. protection and indemnity c. block policy coverage d. cargo coverage
a. freight insurance
All of the following statements are TRUE regarding the coverage of appurtenant structures covered by an NFIP policy, EXCEPT: a. 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 b. they must be located in an eligible community c. the only appurtenant structure covered under the NFIP is a detached garage d. 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.
a. 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
A standard Homeowners policy is best described as: a. a property policy that offers optional liability insurance b. a package policy that provides both property and liability insurance c. a personal insurance policy for anyone who owns property d. a personal insurance contract between the insured and the agent
b. a package policy that provides both property and liability insurance
At which step in the adjusting process does the adjuster determine "who" or "what" is insured by the policy under which the claim was submitted? a. acknowledgment b. the claims investigation c. determination of the extent of the loss d. verification of coverage
d. verification of coverage
In situations where the insured and the insurer could disagree on the value of an item, it would be best to insure that item on a(n) ____ basis a. agreed value b. listed property c. replacement cost d. actual cash value
a. agreed value
Ocean marine protection and indemnity (P&I) coverage usually insures the ship owner against liability for all of the following EXCEPT: a. damage to or loss of another ship caused by a negligent collision b. injuries to seamen c. cargo lost or damaged through negligence d. damage to piers
a. damage to or loss of another ship caused by a negligent collision
All of the following "personal effects" would be covered by the Part D- Additional Coverage of the Personal Watercraft, EXCEPT: a. a portable radio b. jewelry c. an expensive fishing rod d. a cell phone
b. jewelry
Loss to insured property caused by a self-propelled missiles is covered under which of the following perils of the Homeowners form? a. windstorm b. riot c. aircraft d. vandalism
c. aircraft
Which of the following is included in the Crime policy's definition of "securities"? a. currency in current use b. money orders held for sale at a shipping store c. deposits into the insureds account at any financial institution d. evidences of debt
d. evidences of debt
All fo the following statements are TRUE regarding the perils of the Homeowners forms, EXCEPT: a. riot or civil commotion is covered for both the buildings and personal property under the open perils of the HO-5 form b. fire or lightning is a named peril for personal property under the HO-3 c. explosion is a named peril of the HO-2 form for both dwelling and personal property d. fire or lightning is a named peril covering the buildings and other structures under an HO-4 form
d. fire or lightning is a named peril covering the buildings and other structures under an HO-4 form
Any person who is a party to a disputed auto property damage claim may: a. request the court to appraise the claim b. request the court to arbitrate the claim c. demand the court to issue a declaratory judgement d. their only recourse is to sue the other party
b. request the court to arbitrate the claim
In which of the following situations should a non-waiver agreement be used? a. an insureds picture window was broken by a neighbor throwing a baseball b. an insureds house burned to the ground c. an insureds house shows rot damage, and it appears there is a long term plumbing leak d. an Insureds roof blew off in a tornado
c. an insureds house shows rot damage, and it appears there is a long term plumbing leak
An insured is covered under an HO-3 form. If the insured hits his own house and also damages the garage and the attached fence with his vehicle, which of the damages would be covered? a. the damage to the house and garage only b. the damage to the fence only c. none of the damages would be covered d. all of the damage would be covered
d. all of the damage would be covered
To prove negligence, the proximate or legal cause of an injury or loss, includes what important feature? a. the cause of the loss is not relevant if the defendant is proven to be legally liable b. an Intervening cause must have broken the chain of events before the proximate cause can be proven c. the direct cause of the loss must also be the proximate (legal) cause of the loss d. an unbroken chain of events lead to the bodily injury or property damage
d. an unbroken chain of events lead to the bodily injury or property damage
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? a. particular risk b. fundamental risk c. static risk d. dynamic risk
d. dynamic risk
The Coverage C- Uninsured Motorists coverage of a standard, unendorsed Personal Auto policy applies to all of the following, EXCEPT: a. bodily injury sustained by an insured or occupants at the insured vehicle b. the vehicle that is responsible for the bodily injury sustained must meet the definition of an uninsured vehicle c. The insured or occupants of the insured vehicle must be legally entitled to recover damages for bodily injury d. property damage sustained by the insured vehicle by an uninsured vehicle
d. property damage sustained by the insured vehicle by an uninsured vehicle
Employers are responsible to make payments to the injured worker, in excess of the benefits regularly provided by workers compensation law for all of the following, EXCEPT: a. knowingly employing an illegal worker b. failing to comply with a health or safety law or regulation c. if the employer contributed to the injury in any way d. discharging or discriminating against any employee in violation of workers compensation law
c. if the employer contributed to the injury in any way
The EC peril of "smoke" under the standard DP-1 form covers which of the following? a. the release of soot from a furnace that damages the walls of the living room in the covered dwelling b. soot from the smoke stack of the factory across the street that settles on the siding of the dwelling c. the release of soot from a fireplace that damages the walls and ceiling of the family room in the covered dwelling d. oily soot from a smudge pot used to keep the applies in the orchards next door from freezing, that settles on the brick veneer of the covered dwelling
a. the release of soot from a furnace that damages the walls of the living room in the covered dwelling
Which of the following losses would be covered under a Commercial Property policy with the special cause of loss form attached? a. damage caused to the framing of a commercial building by termites b. the mechanical breakdown of machinery in a manufacturing company c. a fire that breaks out in an office building and causes damage to two of the offices d. dishonest acts of an employee of a business
c. a fire that breaks out in an office building and causes damage to two of the offices
To obtain an insurance agent, producer, or adjuster license, and applicant must be: a. at least 25 years old b. at least 21 years old c. at least 18 years old d. at least 16 years old
c. at least 18 years old
The insured carries a yacht policy and is pulling a water skier. The skier is a family member and is injured. What coverage might apply to this accident? a. no coverage would apply b. liability coverage and defense coverage would apply c. medical payments coverage d. only the injured party's health insurance would cover the claim
c. medical payments coverage
Under which of the following Aviation physical damage losses would a deductible apply? a. fire caused by lightning b. theft or pilferage c. a deductible applies to all aviation physical damage losses d. fire cause by collision
d. fire cause by collision
All of the following are true regarding supplementary payments provided by a CGL policy, EXCEPT: a. such payments are made in addition to the limits of liability provided by the policy b. it covers the payment of premium on appeal bonds c. it covers the defense costs of groundless suits d. it pays $50 per day for loss of earnings
d. it pays $50 per day for loss of earnings
All of the following are situations where a Commercial Umbrella policy would be triggered to provide coverage, EXCEPT: a. the policy limits of the underlying liability policy have been exhausted b. to pay a loss that is excluded by the underlying liability policy, but not excluded by the Commercial Umbrella policy c. payment on previous losses by the underlying liability policy has reduced its aggregate limit so that a subsequent loss is not fully covered d. the underlying liability policy limits are sufficient to pay the entire claim
d. the underlying liability policy limits are sufficient to pay the entire claim
Each of the following is a comprehensive loss under the physical damage coverage of a business auto policy, EXCEPT: a. damage to a covered auto caused by hail during a thunderstorm b. damage cause when the auto overturned on a sharp curve c. damage to the auto caused by flood waters d. damage caused when vandals spray painted graffiti on the auto
b. damage cause when the auto overturned on a sharp curve
Which of the following coverage parts would be eligible for inclusion in a CPP? a. businessowners b. professional liability coverage c. workers compensation d. directors and officers liability coverage
b. professional liability coverage
Coverage B of the Ordinance or Law Endorsement to a Commercial Property policy covers: a. the cost to demolish and remove the undamaged portion of the building, if that destruction must occur because of an ordinance or law requirement b. the actual cost of the undamaged portion of the building that must be destroyed due to an ordinance or law c. the cost of the direct physical loss to property by a covered cause of loss d. the increased costs to repair or rebuild to comply with current building, zoning, or land use ordinances or laws
a. the cost to demolish and remove the undamaged portion of the building, if that destruction must occur because of an ordinance or law requirement
The insured has several business locations and would like to insure both the structures, and the inventory(contents). His agent advises him to complete a statement of values form and issues a policy with one limit to cover all locations. This is an example of: a. insuring on a specific basis b. insuring on a reporting form basis c. insuring on a blanket basis d. insuring on a scheduled basis
c. insuring on a blanket basis
Which of the following is NOT TRUE regarding Trailer Interchange coverage? a. for coverage to apply, the trucker must be held liable for the damage under a Trailer Interchange Agreement b. for coverage to apply, the Trailer Interchange Agreement must be in writing c. it covers damage to a trailer under the policy of the trucker who owns the trailer but was not in possession of that trailer at the time of the loss d. for coverage to apply, the damage to the trailer must have been caused by a peril that is covered by the policy
c. it covers damage to a trailer under the policy of the trucker who owns the trailer but was not in possession of that trailer at the time of the loss
When an insurer files a declaratory judgement action with a court of law, all of the following questions will be resolved by the court, EXCEPT: a. will the insurer become insolvent if they pay the claim as submitted by the insured? b. does the insuring agreement within the policy actually provide coverage for the loss claimed? c. is there another insurance policy that would be liable to pay part of the claim? d. has the Insured violated any policy condition that would void the coverage provided by the policy?
a. will the insurer become insolvent if they pay the claim as submitted by the insured?
Which of the following statements is TRUE regarding an "examination under oath"? a. an EUO is routinely requested by an insurer in first party claims as part of a proper claims Investigation b. an EUO is always requested by an insurer in third party liability claims to determine if the Insured is actually liable for the injury or damage claimed c. an EUO will only be requested by an insurer if they have reason to believe an insured has not been truthful in their account of the circumstances of the loss d. an EUO will only be requested of witnessed in a claim investigation if they have evidence of fraud on the part of the insured or claimant
c. an EUO will only be requested by an insurer if they have reason to believe an insured has not been truthful in their account of the circumstances of the loss
The Business Auto policy liability exclusion pertaining to pollution removes coverage for each of the following, EXCEPT: a. the cost of governmentally ordered clean up of pollutants b. the escape of pollutants while being transported by a covered auto c. the escape of pollutants caused by damage to the property containing them when the damage results from the use of a covered auto d. the escape of pollutants before they are accepted by the insured for movement onto a covered auto
c. the escape of pollutants caused by damage to the property containing them when the damage results from the use of a covered auto
Which of the following watercraft would be covered under Section II- Liability of the Homeowners forms? a. watercraft with a 40 horsepower outboard motor b. a 28ft sailboat c. watercraft with a 100 horsepower inboard motor d. a watercraft in storage
d. a watercraft in storage
Jim and Tina are a married couple that enjoy the outdoors. They have their motor home and pick-up truck covered by a standard Personal Auto policy and both vehicles are listed on the declarations page of the policy. They attend a Camping & RV show on May 1st and purchase a small camper to use when camping near their home that summer. Jim calls the insurance agent on May 10th and adds the camper to the policy. On May 24th, Jim and Tina are pulling their new camper with their pick-up truck on their way to a nearby camp site. Jim is driving and turns a tight corner, clipping a street lamp with the side of the camper. How will Jim and Tina's Personal Auto policy cover the body damage to their camper? a. the body damage will not be covered by Part D of the policy because Jim did not report the new camper to the insurance agent within the required 7 days b. the body damage will be covered by Part D of the policy because Jim reported the new camper to the insurance agent within the required 14 days c. the body damage will not be covered under any part of the Personal Auto policy because the camper was not listed on the declarations page of the policy d. the body damage will be covered by the property damage coverage of Part A of the policy
b. the body damage will be covered by Part D of the policy because Jim reported the new camper to the insurance agent within the required 14 days
Errors and omissions claims may be brought against insurance agents/producers by: a. their clients/insureds and the insurance companies with whom the agent/producer contracts b. third parties injured by their clients c. other agent/producers d. professional associations
a. their clients/insureds and the insurance companies with whom the agent/producer contracts
If an employer or their insurance company pays benefits for a preexisting workers compensation injury, what role, if any, does the Secondary Injury Fund have? a. the fund reimburses the employer of their insurer for their obligations under the law for benefits paid to the employee for injuries received while working at a previous employer on a full benefit basis b. the fund plays no role in the payment of preexisting condition medical claims under workers compensation c. the fund provides reimbursement to the employer or insurer but on a limited benefit basis d. the fund reimburses the employee directly, not the employer or their insurer
a. the fund reimburses the employer of their insurer for their obligations under the law for benefits paid to the employee for injuries received while working at a previous employer on a full benefit basis
Which of the following is covered by the NFIP? a. overflow of inland or tidal water b. vehicles c. a broken water main d. livestock
a. overflow of inland or tidal water
A dead tree beside Jerry's home is best described as which of the following types of hazards? a. physical hazard b. proximate hazard c. moral hazard d. morale hazard
a. physical hazard
James has purchased a 20 year old home for $120,000. He covers it with an HO-5 form for $100,000 with a deductible of $500. The roof of the home needs to be replaced and James has this work performed and purchases a service agreement on the roof before moving into the home. The service agreement covers $1,000 for roof damage from any cause that occurs within 5 years of the installation of the new roof. Two years after moving into the home, a heavy thunderstorm hits James' neighborhood and large sections of his roof are damaged, totaling $3,000 in damage. How will this claim be paid? a. the insurance company pays $3,000 minus the $500 deductible. The service agreement does not pay anything because it is considered excess and only pays when the Homeowner policy limits are exhausted b. the service agreement pays $1,000 first, leaving the remaining $2000 minus the deductible (1500) for the insurance company to pay c. the insurance company pays the entire $3,000 and adds the deductible amount to the insureds premium bill. The service agreement will then pay the insured $1,000 to cover the additional living expenses incurred while the roof was being repaired d. the service agreement will pay $500 for the damage at $500 to meet the insureds deductible. Then, the insurance company will pay $2,000 minus the deductible on the damage
b. the service agreement pays $1,000 first, leaving the remaining $2000 minus the deductible (1500) for the insurance company to pay
An insured is covered under a standard BOP for replacement cost coverage and has sustained a fire loss to his building. Due to changes in the building codes in his town, its going to cost $20,000 extra just to comply with the new building codes and make the repairs. How much, if any, will the BOP pay for these extra costs? a. $10,000 b. $5,000 c. $0 d. $20,000
a. $10,000
All of the following statements are TRUE regarding the extended period to discover loss condition of a Crime Policy, EXCEPT: a. the extended period is no later than 60 days following policy cancellation for losses that do not involve an employee benefit plan b. the extended period is terminated immediately upon the effective date of any other Crime insurance obtained by the insured c. the extended period is no later than 1 year following policy cancellation for losses that involve an employee benefit plan d. the extended period is terminated 30 days following the cancellation of the policy whether or not the insured has obtained other coverage
d. the extended period is terminated 30 days following the cancellation of the policy whether or not the insured has obtained other coverage
