practice test 2

loss of income coverage is insurance that provides for loss of income due to the interruption of business caused by a covered loss. for how long does loss of income coverage typically apply?

120 days

a commercial property floater is coverage designed for commercial exposure that do not remain at a fixed location. for which type of commercial exposure would you potentially purchase a commercial property floater?

A CART USED TO SELL FOOD THAT TRAVELS TO A DIFFERENT LOCATION EACH WEEK

harry was involved in an accident in which a deer ran out in front of him in the road and in to the front of Harrys vehicle. Harry's insurance included other than collision coverage subject to him paying the first $250 of any loss sustained. Harry's $250 payment requirement is know as which term in insurance?

DEDUCTIBLE

which dwelling package form of insurance provides coverage for the dwelling on a broad form?

DP-2

a personal article floater can be a stand alone policy or an endorsement to a homeowners policy to provide coverage for all of the following exposures except?

FIXTURES

which type o homeowners policy provides coverage for the dwelling on a broad form?

HO-2-

Christine was moving to a new town for a job change and decided to rent a townhouse. which type of homeowners policy should Christine purchase to protect her exposures as a tenant

HO-4. this policy is designed to meet the needs of tenants

which type of homeowners policy is designed for homeowners who own a house on the towns historic registry?

HO-8- designed for the needs of houses on the historic registry whos replacement

libel, copyright infringement and slander are some of the offenses that are covered under what type of general liability coverage?

advertising injury

which type of coverage, afforded by some insurance policies, will cover all losses unless specifically noted as being an excluded loss?

all risks

if Lindsay and the insurance carrier cannot come to an agreement and wishes to not proceed through the court system, what is another means they could use to determine fault?

amiration

if Darrel's insurance carrier is requesting a list of all damaged property and its worth, what might the carrier demand if the worth of property is questionable?

an appraisal

what does a surety bond guarantee?

another party will fulfull its promise

products completed operations is coverage provided on a general liability policy. where must the injury occur for products completed operations liability to apply?

away from the insureds premises

a dp-1 policy provides coverage for the dwelling according to which cause of loss form?

basic form

what is the temporary notice of coverage called?

binder

under which type of arbitration is the decision final?

binding abiration

which cause of loss form provides coverage for property damage due to falling objects?

broad

broad and basic forms both provide coverage on various homeowners policies. which form, broad or basic, provides the most coverage against losses

broad form

the dp-3 special form offers coverage for dwellings on an all-risk basis, but offers coverage to personal property under which cause of loss form?

broad named perils

which coverage would extend to pay the loss suffered during the couple days after the repairs were complete but the store was still not 100 percent open?

business income coverage

Greg was involved in a car accident with another vehicle and he was at fault. which coverage under his auto insurance would pay for damage to the other vehicle?

collision coverage

which approach shows only one limit to cover any loss, whether it is bodily injury or property damage?

combined single limit

which type of insurance carrier is required under the terrorism risk insurance act of 2002 to write policies that will protect again acts of terrorism?

commercial insurers

in addition to coverage for the building itself, commercial property coverage also covers all the losses below except

commercial property coverage only covers loss to the building

Greg and Janelle are guilty of what by hiding a DUI charge?

concealment

what will Erin need to issue to notify the insured that his coverage is being restricted if she binds the renewal quote?

conditional renewal

replacement cost is a form of loss valuation in which the insureds property is replaced by which method?

cost to replace property with property of the same or equal value

is a medical malpractice insurance policy written on a claims made or on an occurrence basis?

could be either claims made or occourence

actual cash value is determined by subtracting which value from the replacement cost value of a specific piece of property?

depreciation

while employer's liability coverage does not require fault to be proven by the employee, the coverage also has two advantages over workers' comp coverage. which two types of claims would be covered under employer's liability coverage but not workers' comp?

dual capacity claims and third party over claims

what is one of the primary coverages provided by a commercial crime policy?

employee dishonesty

under which exception to the exclusive remedy approach are employees require to prove negligence on the part of their employer to receive compensation for an injury at work?

employers liability

if Erin wanted to check her credit score now, who would be responsible for the cost?

erin

the roof on Randy's t-shirt store collapsed following a heavy snowstorm. a lot of Randy's inventory was damaged, but he was able to salvage some merchandise. while his store was being repaired, randy rented a storage unit in which store his saved merchandise until the store was ready. this extra expense may be paid by which coverage part of commercial property insurance?

extra expense coverage

errors and omissions insurance, which is a policy common in professional lines of insurance, was formed to primarily cover what type of losses?

financiall losses

auto and trainer dealers should purchase which type of plicy to cover their liability exposures?

garage keepers coverage

under which type of damages are pain and suffering included?

general damages

which act requires notification to the insured before providing the insureds personal information to a third party?

gramm leach bliley

are supplemental payments in addition to the policy limits for CGL and business auto policies, or are the payments included in the limits available?

in addition to

which type of insurance policy is designed to cover property in motion, regardless of the location?

inland marine policies

which organization is responsible for developing many of the standard policy forms and endorsements that make up an insurance policy?

insurance services office inc

an insurance policy is made up of several parts. Which part acts as the agreement or contract between the insurance company and the policy holder?

insuring agreement

stocks, bonds, and mutual fund investments, patents, ect., are which type of property?

intangible property

what would abc insurance process to show an additional vehicle to their policy?

issue an endorsement

would Beatrice need to secure a stand alone policy to cover her needs for his home or would an endorsement to her homeowners be sufficient?

it would depend on the carrier

which limit would cover Hillary's split limit to cover the medical costs?

limit one

which limit would Andy's insurance policy use to determine the amount of coverage available for the property damage to the vehicle Andy hit?

limit three

Jason was in the market for a new car. his current car was starting to have repair issues, but it was still a usable vehicle. when Jason goes to trade in his car, which value does the dealership use to determine a starting point for how much his car is worth?

market value

Cole's house was destroyed by fire and was considered a total loss. he knew his computer was in his car at the time of the fire and wa snot damaged, but Cole added it to the list to pay for a new one. which hazard is Cole guilty of committing?

moral hazard

which type of hazard has Michael committed by not going back to lock his car door?

morale hazard

which cause of loss form will specifically list any and all perils the policy will provide coverage for?

names perils

which type of government funded insurance program will respond to direct damage from natural disasters?

national flood insurance program

Courtney would be cited as the party at fault due to her being what?

negligent

when notifying the insurance carrier of a claim, does the insured have to submit the notice on a specific form or document?

no, a form, letter, or lawsuit could notify of a claim

ABC Farms is a large, commercial farm that generates 10 million in revenue a year. ABC's operations include raising cows and pigs for later sale of their meat to local restaurants, a commercial store open to the public daily, as well as seasonal events. would ABC Farms be eligible for farm owners insurance?

no, farm owners is for family operated farms with minimal commercial exposure

dwelling package policies provide coverage for numerous type of exposures. are the exposures associated with farming covered adequately by a dp policy?

no, farms are excluded under all dwelling package forms

if it can be proven that there was willful negligence on the part of an employer, are employees barred from filing a tort claim due to an injury?

no, if the employer does not also obtain proper insurance coverage

under which garage keepers extra liability coverage, does liability need to be determined to apply?

no, liability does not need to be determined for coverage to apply

would griffin be allowed to sue the township for his injuries due to them happening inside the reserve?

no, strict liability would apply due to griffin knowing the risks and still camping out

Yolanda was injured while preforming her daily duties at work. under workers compensation laws, will Yolanda have to prove her company was at fault for her injuries?

no, the majority of time injury claims at work will be paid without proving fault

does non-binding arbitration always result in a final sinner?

no, the not winning party does not have to accept the arbitrators decision

under a dp, does the insured location have to be occupied by the owner of the property?

no, the property can be tenant occupied

if an insured wishes to rent a vehicle while traveling, would she need to purchase special insurance in order to drive a rental car?

no, the rental car would have coverage under the insureds primary auto policy

all of the following are exclusions under a medical malpractice insurance policy except

non intentional acts

what type of notice is jen required to send to the insured to advise him that coverage will not be renewed?

nonrenewal notice

which cause of loss form will specifically list any perils the policy will not insure?

open perils

different policies are issued to protect against specific causes of loss. what is the term used to describe a cause of a loss?

peril

what method would abc use to cancel tiffany's policy and return any unearned premium?

pro rata method

if Brent suffered a loss to one of his properties and more than one of his policies covered his loss, what could the insurance carrier do to determine which policy would pay?

proceed with abiration

all of the following ways are ways in which an insured can interfere with subrogation except?

provide the insurance carrier with complete documentation of the loss

which type of risk is Kelsey involved in by traveling in an airplane?

pure risk

which type of automobile coverage would apply if an accident occurred and the insured needed to rent a vehicle for a temporary period of time?

rental reinbursement coverage

when Andrea informed her current agent that she wanted her coverage cancelled, which method of cancellation will he use

short rate method

can a warranty be valid and enforced if not specifically written out in the contract

sometimes a warranty only need to be expressed or implies

if Galen were to due, which type of damages would she sue for her medical costs?

special damages

which type of risk is Michael involved involved in by gambling?

speculative risk

the ho-5 type of homeowners policy provides coverage on all risks basis for all exposures except

tanants personal vehicles

a car, records, jewelry, and expensive clothing are all which type of property?

tangible property

under a garage keepers policy, liability on which party must be determined for coverage to apply?

the insured

if a policy is written with split limits, what does the first limit indicate?

the maximum amount paid for all injured parties

will Frances be responsible for paying for the credit check or will the seller of the home be responsible?

the mortgage company handles the cost of the credit check

of the three parties that make up a surety bond, which party is the one that is on the receiving end of the promise made or the contract signed?

the obligee

a surety bond consists of three parties. which party is responsible for carrying oyt the work or performance stated in the contract?

the principal

Elle's insurance policy is a claims-made policy written with effective dates of January 1, 2013- January 1, 2014. her policy states that any claim that occurs before January 1, 2013, is excluded regardless of the claim being reported during the policy period. what is January 1, 2013, known as?

the retroactive date

what is the statue limitation for filing a medical malpractice claim?

the statue is state specific

which party in the surety bond contract is the party that is guaranteeing the work or performance of a second party?

the surety

exclusive remedy prohibits an employee from filing what type of claim against his employers?

tort liability

name one way in which strict liability is different from negligence

under strict liability

which coverage would cover the difference between what the damage cost and what the at fault driver limits were?

underinsured motorist coverage

which type of insurance does not provide coverage for bodily injury and property damage?

underinsured motorist coverage

which endorsement that may be added to a policy would suspend coverage if a building stood vacant over a specific period of time?

vacancy permit endorsement

all of the following perils are insured against under the basic cause of loss form except?

weight of sleet

could Howard file a claim against the cleaning company because the cleaning product did not work?

yes because the express warranty exists

Curtis played on his township's baseball team. while at practice, his ball struck a windshield and it shattered and injured the person inside. this person sued Curtis' coach for her injuries and property damage. could Curtis' coach be liable for this claim?

yes, if she can prove vicarious liability

is liability a covered exposure under a commercial package policy?

yes, liability and property coverage

under a DO policy, are defense cost covered within the policy limits?

yes, the defense costs are included in limits

under employer's liability coverage, can an employee sue an employer in addition to collecting through a workers' comp claim?

yes, under dual capacity claim

is Erin allowed to file a dispute to fight the discrepancies on her report?

yes, with merit