P&C test 2 missed questions

The homeowners policy covers collapse caused by all of the following EXCEPT a) Weight of too many people attending an event hosted in the house. b) Foundation cracks. c) Weight of snow. d) Hidden insect or vermin damage.

b

Erroneous Publishing copied all the material from Angels Inc.'s book. The only changes made by Erroneous were to rename the title and chapters, put a different cover on it, and distribute it as its own. Angels Inc. files a claim against Erroneous and seeks damages. Will a commercial general liability policy cover the claim? a) No, because the claim results from copyright infringement and is not in an advertisement. b) No, because there is no bodily injury or property damage. c) Yes, because the claim is a result of Erroneous products and work. d) No, because this event does not meet the definition of infringement.

a

The medical payments coverage in a personal auto policy will pay reasonable medical expenses for all of the following EXCEPT a) The insured is injured while exiting a friend's mobile home. b) The insured is injured by a motor vehicle while crossing the street. c) The insured's child sustains injuries when the car she is in accidentally rolls down a hill. d) A friend is injured while driving the insured's vehicle with permission.

a

Theft coverage under an HO-8 is restricted to a) The actual cash value of what was stolen, with limits for certain classes of property. b) The larger of 10% of the personal property limit or $1,000. c) There is no theft coverage under an HO-8. d) $250.

a

Those having automobile liability insurance in Missouri must also have uninsured motorist coverage with limits of at least a) 25/50. b) 25/50/10. c) 15/30. d) 15/30/10.

a

Which of the following describes the transfer of a legal right or interest in an insurance policy? a) Assignment b) Abandonment c) Obligation d) Legal purpose

a

Which of the following dwelling coverages would provide coverage to a garage not attached to the primary insured dwelling? a) Coverage B b) Coverage C c) Coverage E d) Coverage A

a

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? a) Liability coverage b) Medical payments c) Comprehensive coverage d) Collision coverage

a

Who is responsible for filling out a notice of claim form? a) Insured b) Adjuster c) Agent d) Insurer

a

A grave marker was damaged by vandals. It would cost $3,000 to have the damage repaired. Under these circumstances, how much would a homeowners policy pay? a) $500 b) $1,000 c) $3,000 d) $0

c

After a work-related injury, a worker's injuries result in permanent total disability. The worker's pre-injury wages averaged $1,000 per week. If the amount does not exceed the state's average weekly earnings, which of the following amounts would be paid to the worker weekly by the workers compensation insurance? a) $339 b) $500 c) $667 d) $1,000

c

Following a property loss that is covered under a businessowners policy, if the insurer and insured cannot agree on the amount of the loss, what method is used to resolve the issue? a) Adjudication b) No-fault procedure c) Appraisal d) Arbitration

c

Proof of insurance is required in all of the following situations EXCEPT a) Conviction of a serious motor vehicle offense. b) Any accident causing bodily injury. c) Any accident causing minor property damage of $500 or less. d) Upon request by any duly authorized peace officer.

c

CGL Coverage B (Personal and Advertising Injury) will cover a) The failure of goods to conform to advertised quality or performance. b) Oral or written publication of material the insured knows is false. c) An offense committed by an insured whose business is advertising. d) Inadvertent injury to others caused in the course of advertising the insured's product.

d

First aid costs for others injured on the insured's premises a) Apply only if the insured is legally liable. b) Also cover injuries to the insured's family members. c) Are deducted from the liability limit. d) Are paid in addition to the liability limit.

d

Giving a client an inducement to a sale not stated in the policy is an unlawful practice known as a) Twisting. b) Unlawful distribution of dividends. c) Coercion. d) Rebating.

d

How many days does a producer have to report to the Director any administrative action taken against the producer? a) 45 days b) 10 days c) 15 days d) 30 days

d

Insurance is the transfer of a) Loss. b) Hazard. c) Peril. d) Risk.

d

If the Director receives a report of a motor vehicle accident causing at least $500 in damage, how many days does he or she have to take action against the guilty driver? a) 90 days b) 120 days c) 30 days d) 60 days

a

The amount an insurer will pay under Coverage D (Loss of Use) depends on a) The amount of coverage on the dwelling. b) How long a dwelling has been occupied. c) If the dwelling is owner-occupied or rented out. d) The length of time the dwelling is uninhabitable.

a

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) Comprehensive coverage b) Collision c) Other-than-collision d) Property damage liability coverage

b

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000

b

Under the dwelling policy, if an insurer chooses to repair or replace damaged or lost property, it must inform the insured within how many days of receiving proof of loss? a) 10 days b) 30 days c) 45 days d) 60 days

b

Which of the following policies does NOT contain an automatic reinstatement provision? a) Homeowners b) General liability written with an aggregate limit c) Business automobile liability d) Personal automobile liability with split limits

b

All of the following are conditions commonly found in the insurance policy EXCEPT a) Subrogation. b) Appraisal. c) Insuring agreement. d) Cancellation and nonrenewal.

c

An insured is a member of the neighborhood association, and has become liable for damage to a third party. Each member of the association has been assessed a portion of the loss equal to $2,000. How much will the Loss Assessment additional coverage of the insured's homeowners liability policy pay? a) Nothing b) Up to $500 c) Up to $1,000 d) $2,000

c

Coverage for all of the following is found in Section I of a homeowners policy EXCEPT a) Other structures. b) Personal property. c) Personal liability. d) Dwelling.

c

A neighbor's tree has fallen into the insured's yard. The insured's homeowners policy will only pay to remove the tree if a) The damage is more than $1,000. b) The neighbor has no homeowners insurance. c) The tree has caused damage to the insured's vehicle. d) The tree is blocking the driveway.

d

All of the following are true with regard to standard fire insurance policies being cancelled by an insurer EXCEPT a) The notice must state that a refund of unearned premiums will be made within 15 days of the notice. b) Thirty days advance notice must be given except for nonpayment of premium or evidence of arson by the insured when 10 days' notice is required. c) The written notice must state the reason for the action. d) The notice must contain contact information for the Missouri Property Insurance Placement Facility.

a

Employment practices liability insurance (EPLI) would NOT cover claims arising from a) Deliberate law violation. b) Sexual harassment. c) Wrongful termination. d) Discrimination.

a

Additional coverages in the liability section of a homeowners policy cover all of the following EXCEPT a) Damage to the property of others. b) Damage to a third-party property for which the insured is legally liable. c) Claims expense. d) Expenses the insured incurs rendering first aid for bodily injury to third parties.

b

Which of the following is NOT a primary property coverage in homeowners coverage? a) Loss of use b) Collapse c) Dwelling d) Other structures

b

All of the following are special personal property limits under a homeowners policy EXCEPT a) $1,500 for trailers not used with watercraft. b) $2,500 for theft of firearms. c) $500 for business personal property on the insured premises. d) $1,500 for securities, accounts, deeds, and evidences of debt.

c

An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of a) Twisting. b) Controlled business. c) Rebating. d) Coercion.

c

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 been assessed $1200 for her share of the rebuilding cost. How much of the assessment will her homeowners policy pay? a) None b) $500 c) $1,000 d) $1,200

c

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 a) The agency negligently fails to offer an increased limit of coverage or benefit under a policy. b) The agency is sued by an insured for giving incorrect advice. c) The agency negligently fails to renew a policy causing a client to suffer a financial loss. d) The agency loses commission income from policies that were not issued by the insurer.

d

In liability insurance policies, supplementary payments are made a) As part of the limit of liability. b) At the option of the insured. c) At the option of the insurer. d) In addition to the limit of liability.

d

In return for premium, an insurance company must a) Provide the insured with coverage adequate for all potential losses. b) Use standardized tables of coverage for specific risks to be excluded from coverage. c) Give the insurer valuable consideration. d) Be fair in underwriting and pay covered losses.

d

Professional liability coverage protects against legal liability resulting from a) Warranties. b) Misrepresentation. c) Unethical conduct. d) Errors and omissions.

d

Which of the following may NOT be included in an insurance company's advertisement? a) The policies' limitations or exclusions b) The name of a specific agent c) An identification of a limited policy as a limited policy d) That its policies are covered by a state Guaranty Association

d