P&C 3rd review

For insurance purposes, when an insured loses property to another because the person used violence or threat of violence to gain the property, this is defined as A. robbery B. a theft C. a burglary D. False pretense

A

The federal Fair Credit Reporting Act? A. regulates consumer reports B. protects consumer privacy C. regulates telemarketing D. prevents money laundering

A

even though an insured maintains a. valid driver's license and has paid the premium when due, an insurer may modify the deducible of an auto policy after A. payment of a third physical damage claim in 5 years. B. the named insured files for divorce C. the named insured is charged with a speeding ticket D. any of the above.

A

What type of information would be found in a policy's insuring agreement? A. insurer's address B. renewal dates C. location of premises D. policy limits

B

When Mary decided to sue her neighbor for damages to her yard, she was told to get a bond that would guarantee she would be able to pay court costs and resulting damages if she loses the case. What kind of bond is this? A. a bail bond B. a cost bond C. an appeal bond D. a license to permit bond

B ( cost bonds guarantee that the person who brings legal action against another defendant will be able to pay court costs and any resulting damages in the event he or she loses the case.)

what type of compensatory damages will pay for pain and suffering and disfigurement? A. normal B. general C. special (specific) D. tort

B ( general compensatory damages are for intangible elements that cannot be specifically measured in terms of dollars)

A producer has been notified by the Commissioner to stop using an unapproved trade name. How many days does the producer have to change the trade name before facing a fine A. 5 days B. 10 days C. 30 days D. The name must be changed immediately

B (if a producer continues to use an unapproved trade name for 10 days after being notified will face a fine up to $5,000)

An insured was involved in an automobile accident for which the insured was at fault. Which of the following coverages would pay for damage to the insured's automobile? A. property damage liability coverage B. comprehensive coverages C. collision D. other-than-collision

C

Why don't commercial auto coverage forms automatically include medical payment coverage? A. commercial auto coverage is for damage to vehicles only B. any person occupying commercial vehicle must have a personal auto policy to cover any medical payments that result from an accident C. often, any person occupying a commercial vehicle would be covered under a workers compensation policy D. the business that owns the vehicles must be self-insured for medical payment coverage.

C

a commercial policy has been in effect for less than 60 days and is not a renewal policy. if the insurer decides to cancel the policy for any reason other than nonpayment of premium, how much notice must it give the first named insured? A. 10 days B. 30 days C. 60 days D. 90 days

C

a deli owner has a business-owners liability policy. when a customer slipped and hurt herself at the deli the liability policy paid for medical expenses. The customer however is suing the business owner because she claims there were no caution sign warning her that the floor was wet. What is the insurer obligated to do? A. provide legal aid to elderly woman suing the policy holder B. nothing they have paid the claim and their responsibility ends there C. pay to defend the policyholder in the lawsuit, because liability coverage contains a duty-to-defend provision. D. automatically renew the owner's policy, but they have nothing to do with the lawsuit.

C

a producer has completed 40-hours of continuing education this licensing period, how many credits can be carried over to the next licensing period? A. 0 hours B. 16 hours C. 10 hours D. 5 hours

C

Which of the following would be named on the declarations page of a property or liability policy? A. beneficiaries B. all insureds C. additional insureds D. first named insureds

D

insurer examination must occur no less frequently than every A. 2 years B. 3 years C. 4 years D. 5 years

D

the owner of a small business applies fora fire insurance policy with the limits equal to 100% of the property's value. the owner has a huge unsold inventories and a large personal gambling debt. From an underwriting standpoint, this might indicate? A. a moral hazard B. a peril C. a speculative risk D. a pure risk.

a (a moral hazard exists when the insured could stand to gain financially by incurring a loss)

What insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk? A. primary and excess B. other insurance C. valid insurance D. noncurrency

b

in the event of an insurer's insolvency, the association's obligation to pay a covered claim is the lesser of the amount of the loss, the limits of the insurance coverage, or A. $100,000 B. $150,000 C. $300,000 D. $10,000

c

With respect to auto insurance, the term autos includes all of the following EXCEPT A. a pickup or van titled to and used by the named insured's business B. any private passenger auto titled to the named insured C. a pickup or van acquired by the named insured during the policy period D. any private passenger auto leased to the named insured for a period of more than 6 months

A

if a person demands a hearing, the commissioner of insurance must set the hearing within A. 30 days B. 10 days C. 60 days D. 15 days

A

a Business using its own trucks to move its own cargo would insure the cargo using A. motor carrier form B. trip transit coverage C. motor truck cargo- owners form D. Motor truck cargo- truckers form.

c

which of the following statements regarding coverage for the flood and earthquake perils is true? A. both flood and earthquake are excluded perils in all property policies B. flood and earthquake coverage is available only through government insurance C. flood and earthquake is available in all coverage D. flood insurance is usually provided in property policies, but earthquake coverage is available by endorsement.

A

The broad theft coverage endorsement on the dwelling form specifies all of the following limitations except A. $1000 for silverware B. $200 on money C. $1500 on securities D. $1500 on jewelry

A ( the limit on silverware is $2,500)

If an insured operates a home day care business out of his house, how can he ensure the liability exposure coverage? A. pay additional premium into his own liability policy B. attach the home day care coverage endorsement to the HO policy C. include home business endorsement in the homeowners policy D. buy additional coverage for his business

B

according to the Louisiana workers compensation act, what is the maximum amount the policy will pay for burial of a deceased employee? A. $5,000 B. $7,500 C. $10,000 D. $12,500

B

in liability insurance policies, supplementary payments are made A. at the option of the insurer B. in addition to the limit of liability C. as part of the limit of liability D. at the option of the insured

B

the limit on controlled business is A. 15% B. 25% C. 45% D. 49 %

B

the process an insurer uses to evaluate applications and determine if a policy should be issued and on what terms and conditions and rates is known as? A. acceptance B. underwriting C. coding D. rating

B

which of the following would NOT qualify as a hired auto? A. an auto rented for personal use B. an auto borrowed from an employer C. an auto hired by an employer D. an auto leased from a commercial rental company

B

all of the following are characteristics of the dwelling policy EXCEPT. A.coverage including the dwelling only, contents only, or both B. incidental occupancy of limited service-type exposure, or both C. dwelling up to four family units are eligible D. the dwelling must be owner-occupied

D

which of the following kinds of vehicles are exempt from complying with the Louisiana Motor vehicle safety responsibility law? A. leased mobile rig haulers B. motor vehicles used as agricultural or forest vehicles not on a highway C. vehicles used primarily for exhibits, parades, or shows. D. all of the above

D ( the above vehicles require to comply with the motor vehicle safety responsibility law.)

what is the purpose of regulation on after market crash parts? A. to protect insurers from fraudulent claims for using non-original equipment manufacturer's parts. B. to provide disclosure to consumers regarding the use and costs of those parts C. to protect consumers from unfair trade practices D. to provide practical options to repair facilities

B

all of the following are considered unfair trade practices in the business of insurance EXCEPT? A. defamation B. sharing commissions C. boycott D. rebating

B (sharing of commissions is allowed as long as both producers are property licensed)

the employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to A. 30 days B. 60 days C. 90 days D. 120 days

C

an individual has started a construction business and plans to specialize in remodeling and rewiring residential properties. Because the city where he is located and where he plans to operate business has building codes, he will need to obtain a? A. performance bond B. completion bond C. license to permit bond D. bid bond

C ( a license to permit bond would guarantee the city that permit recipients would comply with the laws, regulations, and ordinances associated with the use of any permit issued by the city)

Who is NOT an insured for liability on a BAP? A. anyone liable for the conduct of the insured B. the named insured in any covered auto C. the owner of a car the insured borrows D. anyone using a covered auto with permission

C (The owner of a car the insured borrows is an exclusion for an insured)

an insured has a homeowners policy and is required to be a member of the homeowners association in her. neighborhood. the association's community house has burned down, and the insured has ben assessed $1,200 for her share of the rebuilding cost. How much of the assessment will her homeowners policy pay? A. none B. $500 C. $1000 D. $1,200

C (an additional coverage, homeowners policy will pay up to $1,000 in assessment)

illegal use of narcotics would be an example of A. pure hazard B. morale hazard C. moral hazard D. physical hazard

C (tendencies of an applicant to break laws or be untruthful are examples of moral hazards.)

What is the minimum amount of coverage that should be carried on a HO-2 on a home that was purchased four years ago for $75,000, which has a replacement value of $100,000 today A. $100,000 B. $60,000 C. $75,000 D. $80,000

D (a homeowner at the time of loss must have the property insured for at least 80% of the replacement cost in order to collet the full replacement cost of a partial loss)

which of the following statements is true regarding the commercial general liability Coverage C- medical payments A. the coverage is considered good will because the payments are made without regard to fault. B. the coverage applies to bodily injury to the named insured. C. the coverage is liability insurance because it pays only if the insured is legally liable D. the coverage provides high limits of insurance for bodily injury

a