Practice Test #4 (w/ uncertain and wrong answers)

In regard to Interstate Commerce, what conduct is prohibited by Title 18 United States Code section 1033? A. All of the choices are correct B. willfully embezzles, abstracts, purloins, or misappropriates any of the moneys, funds, premiums, credits, or other property C. knowingly makes any false entry of material fact in any book, report, or statement of such person engaged in the business of insurance with intent to deceive any person, including any officer, employee, or agent of such person engaged in the business of insurance, any insurance regulatory official or agency, or any agent or examiner appointed by such official or agency to examine the affairs of such person, about the financial condition or solvency of such business D. knowingly, with the intent to deceive, makes any false material statement or report or willfully and materially overvalues any land, property or security

A. All of the choices are correct

Which event within the last 3 years would disqualify a person from receiving the 20% Good Driver Discount: A. An at fault accident involving a bodily injury B. An at fault accident involving property damage C. No fault accident involving property damage D. No fault accident involving a bodily injury

A. An at fault accident involving a bodily injury

Which of the following is NOT a party to a surety bond? A. Bondsman B. Principal C. Obligee D. Surety

A. Bondsman IDK

What term is defined as the refusal to enter into a business transaction with another person until he or she complies with certain conditions or grants specific concessions? A. Boycott. B. Coercion. C. Twisting. D. Intimidation.

A. Boycott. IDK

Which commercial property coverage form is designed to cover buildings under construction: A. Builders Risk B. Building and personal property form C. Extra expense form D. Business income form

A. Builders Risk IDK

In addition to the common conditions and 2 or more coverage forms, a commercial package policy must contain: A. Common Declarations B. Commercial General Liability C. Common Exclusions D. Commercial Property Form

A. Common Declarations IDK

In a commercial Property Policy with a vacancy permit endorsement for a loss to be covered the loss must occur: A. During the permit period B. 6 months after policy inception C. 2 months after policy inception D. During the policy period

A. During the permit period I JUST REMEMBER PERMIT

The Broad form covers the same 11 perils as the basic form, plus how many additional perils? A. Five B. Thirteen C. Six D. Eleven

A. Five

The person, organization or business covered by the insurance policy is referred to as: A. Insured B. Insurer C. Applicant D. Corporation

A. Insured

What happens to the license after the death of the natural person who held it? A. It always terminates B. The license must be returned to the Commissioner C. The license becomes inactive D. It may be transferred

A. It always terminates

Vehicles designed for primary use of \"off public roads\" are described under the CGL policy as: A. Mobile Equipment B. Mobile Autos C. Autos D. All Terrain Vehicles

A. Mobile Equipment IDK

All of the following might make an agent act unethically except: A. Placing clients' interests first. B. Being mostly concerned about earnings. C. Associating with unethical agents. D. Being pressured as production is not up to quota.

A. Placing clients' interests first.

According to the code, all insurers must maintain a department to investigate: A. Possible fraudulent claims from insureds. B. Possible fraud by insurers. C. Possible abuses of rating laws. D. Possible arson.

A. Possible fraudulent claims from insureds. IDK

Lines of Insurance that require rates to be filed and approved by the state before they can be used would be: A. Prior Approval B. File and Use C. Judgment Rating D. Mandatory

A. Prior Approval positive

All of the following are true EXCEPT: A. The Insurance Commissioner is elected by the people to serve an 8 year term. B. The California Insurance Code (CIC) consists of statutes written and passed by the state legislature C. The California Code of Regulations (CCR) is made up of rules issued by the commissioner D. An insurance professional should have knowledge of the California Insurance Code and the Code of Regulations

A. The Insurance Commissioner is elected by the people to serve an 8 year term.

The commissioner may deny an application for a license without conducting a hearing for which of the following reasons? A. The applicant has been convicted of a felony. B. The applicant lacks integrity. C. Granting the license would not be in the public interest. D. The applicant is not of good business reputation

A. The applicant has been convicted of a felony.

Which of the following is NOT a part of the Insurance Industry Code of Ethics? A. The insurance company should always be profitable. B. Place the customers interest first. C. Identify customers needs and make recommendations to meet those needs D. Accurately and truthfully represent products and services

A. The insurance company should always be profitable. GUESS

An insurer transacting pet insurance in California must disclose which of the following? A. all of the choices must be disclosed B. Any policy provision that limits coverage through a waiting or affiliation period, a deductible, coinsurance, or an annual or lifetime policy limit. C. If the policy excludes coverage due to a preexisting condition, a hereditary disorder, congenital anomaly, or chronic condition. D. Whether the insurer reduces coverage or increases premiums based on the insured's claim history.

A. all of the choices must be disclosed

The principle of restoring a victim of loss to the same financial position as before the loss occurred is called: A. indemnity B. risk C. consideration D. estoppel

A. indemnity

How much coverage may apply to cover B (other structure) under the homeowner's policy? A. 20% of A B. 10% of A C. 15% of A D. 30% of A

B. 10% of A WASNT SURE

A newly acquired auto is to replace a covered auto that has liability coverage only. How long will the insured have to request collision coverage on the new auto: A. 14 days B. 4 days C. 30 days D. 20 days

B. 4 days

In the California Insurance Code there is a definition that reads, in short, "...a person who offers to advise for a fee, any insured having interest in life or disability insurance contracts..." This is a: A. A solicitor. B. A life and disability analyst. C. A claims adjuster. D. An insurance broker paid on a fee for service.

B. A life and disability analyst.

Which of the following is usually excluded under errors and omissions insurance? A. Negligence B. Bodily injuries C. Errors D. Omissions

B. Bodily injuries IDK

Under the BOP coverage A covers: A. Liability B. Buildings C. Business Income D. Business Personal Property

B. Buildings IDK

Neglecting to communicate that which a party knows, and ought to communicate, so that the other party may make a sound decision is known as: A. Material information. B. Concealment. C. None of the above. D. Boycotting.

B. Concealment.

Which of the following is not an unfair claims practice? A. Failing to acknowledge and to act reasonably and promptly upon communications with respect to claims arising under insurance policies. B. Directly advising a claimant to obtain the services of an attorney. C. Failing to provide promptly a reasonable explanation of the basis relied on in the insurance policy for the denial of a claim or the offer of a compromise settlement. D. Failing to affirm or deny coverage of claims within a reasonable period of time after proof of loss statements have been completed and submitted by the insured.

B. Directly advising a claimant to obtain the services of an attorney. IDK

A miscellaneous type vehicle endorsement could be added to a personal auto policy to cover what types of vehicles? A. ATVs and electric cars B. Dune buggies and golf carts C. Trailers and motorhomes D. Automobiles and motorcycles

B. Dune buggies and golf carts IDK

Vehicles that are used for Transportation Network Companies (Uber, Lyft, ...etc) are generally covered by the driver's personal auto policy. A. True B. False

B. False CONFIDEN

Which of the following is one of the optional coverages available under the businessowners policy? A. Water B. Interior glass C. Building ordinance D. Power failure

B. Interior glass

What law made ship-owners responsible for bodily injuries to seamen? A. Workers Comp. B. Jones Act C. Hull Coverage D. Inchmaree Clause

B. Jones Act IDK

In a CGL policy, under both Occurrence and Claims Made Forms, what is Section III: A. Conditions B. Limits of Insurance C. Extended Reporting Period D. Who is an Insured

B. Limits of Insurance IDK

According to the California Department of Insurance which term means permissive? A. Twisting. B. May. C. Oath D. Shall.

B. May.

Which type of pollution liability coverage can be written on either an occurrence or a claims-made basis? A. Limited pollution liability coverage form B. Pollution liability extension coverage endorsement C. Pollution liability coverage form D. All of the choices can be written on either an occurrence or a claims-made basis

B. Pollution liability extension coverage endorsement

What is true about an umbrella policy. A. Umbrellas are considered to be very expensive B. Provides broader coverage than the underlying policy C. Only covers what is covered by an underlying policy D. Will only provide up to 1 million dollars of coverage

B. Provides broader coverage than the underlying policy

Workers comp. provides all the following EXCEPT: A. Rehabilitation Benefits B. Punitive Damages C. Medical Benefits D. Income Benefits

B. Punitive Damages

Which of the following types of personal property would probably have separate limits under a homeowners policy? A. Clothing B. Securities C. Furniture D. Linens

B. Securities

Insurance companies recognize there is a loss exposure presented when an individual uses their personal use vehicle for commercial purposes and personal use. For this reason, Insurers have taken the time to address this issue by designing products that fit the need for a person that needs a combination of personal/business exposures. A. False B. True

B. True

All premiums paid and any policy fee paid for the policy shall be refunded to the insured within 30 days from the date that the insurer is notified of the cancellation. However, if the insurer has paid any claim, or has advised the insured in writing that a claim will be paid, the 30-day free look right pursuant to this paragraph is inapplicable and instead the policy provisions relating to cancellation apply to any refund. A. False B. True

B. True IDK

Shine the Light is a California law requiring business that disclose personal information to third parties for the direct marketing purposes of those third parties to provide notice and access to certain information. A. False B. True

B. True IDK

A warranty is: A. a representation in an insurance contract B. all of the choices C. is either express or implied D. a guaranteed truth

B. all of the choices

A single amount of insurance that applies to all types of property at a single location or to all types of property at multiple locations is called: A. schedule coverage B. blanket coverage C. a sublimit D. single limit coverage

B. blanket coverage CONFIDENT

Under a homeowner's policy, a housekeeper or gardener would be referred to as a: A. covered person B. residence employee C. legal representative D. named insured

B. residence employee

The taking of property by someone who has caused or threatened to cause bodily harm is called: A. extortion B. robbery C. larceny D. burglary

B. robbery WASNT SURE

The definition of a peril is: A. Anything that increases the chance of loss B. Uncertainty of loss C. A cause of loss D. Speculative Risk

C. A cause of loss

What is a public insurance adjuster? A. A licensed individual who, for compensation, works on behalf of an insurance company B. All the Choices C. A public insurance adjuster is a licensed individual who, for compensation, works on behalf of an insured in settling a claim for loss or damage under a policy covering real or personal property. D. An unlicensed person, other than a private investigator, who for a fee or other consideration, investigates and collects information for the purpose of adjusting or disposing of a claim under an insurance policy.

C. A public insurance adjuster is a licensed individual who, for compensation, works on behalf of an insured in settling a claim for loss or damage under a policy covering real or personal property. IDK

The Boiler and Machinery limit of insurance is written as: A. Any of the choices B. A single limit of insurance per policy period C. A single limit of insurance per accident D. As an Aggregate Limit

C. A single limit of insurance per accident IDK

Coverage under a general liability policy written for a U.S. insured would apply in Japan under which of the following circumstance? A. The insured is flying to Japan from the United States B. There is an injury resulting from the insureds product which was made in France C. An individual buys the insureds product in the United States, but is injured when using the product in Japan D. The insured accidentally injures another while in Japan on vacation

C. An individual buys the insureds product in the United States, but is injured when using the product in Japan

Boatowner policy would apply in which situation: A. When the boat is carrying passengers for a fee B. When the boat is hired out C. An unofficial race or speed contest D. When the boat is used without insureds permission

C. An unofficial race or speed contest

How long must records of an agent or broker be available to the commissioner? A. Never. B. 15 days after the license is issued. C. At all times. D. Only after written notice from the commissioner.

C. At all times. GUESSED

Which of the following is NOT one of the commercial property coverage forms? A. Extra expense B. Builders risk C. Increased cost of construction D. Legal liability

C. Increased cost of construction GUESS

Which of the following describes an insurer who has enough financial resources only to provide for all its liabilities and for all reinsurance of all outstanding risks? A. Non-participating. B. Solvent. C. Insolvent. D. Guaranteed.

C. Insolvent.

In order for a Commercial Crime Policy to cover a loss, the loss must be discovered: A. During the policy period B. No later than 6 months after the policy expiration C. No later than 1 year after the policy expiration D. Anytime

C. No later than 1 year after the policy expiration

Out of a concern for maintaining reasonable premiums, insurers may consider which of the following to determine the sexual orientation of a candidate for insurance? A. Occupation. B. Zip codes. C. None of the above. D. Marital status.

C. None of the above.

Which of the commercial property causes of loss forms cover theft? A. The broad and special forms B. The broad form C. Only the special form D. Theft is excluded from all forms

C. Only the special form

Which of the following types of personal property would NOT be covered under a homeowner's policy? A. Jewelry B. Money C. Pets D. Watercraft

C. Pets UNSURE

The insurance code definition of an "insurance broker" is: A. Any agent that writes more difficult to place business with specialty insurers who have appointed him. B. Someone appointed by a fire and casualty broker-agent (employer), receiving commissions from the employer, transacting insurance with the insurers the employer represents and acting on behalf of the clients. C. Someone paid to transact insurance on behalf of another person, but not on behalf of the insurer. D. Someone appointed to transact insurance with admitted insurers and receives commissions from them, but acts on behalf of the clients.

C. Someone paid to transact insurance on behalf of another person, but not on behalf of the insurer.

Which crime form covers exposures to the loss to money and securities which arise from external threats of loss, such as burglary and robbery? A. Employee Dishonesty Form B. Employee Dishonesty and Theft, Disappearance and Destruction C. Theft, Disappearance and Destruction Form D. A Fidelity Bond

C. Theft, Disappearance and Destruction Form IDK GUESS

Fidelity bonds typically remain in effect: A. for 1 year B. for 6 months C. until cancelled D. for 3 years

C. until cancelled

Which of the following would NOT be a vehicle eligible for coverage under a P.A.P.: A. A trailer designed to be pulled by a private passenger auto B. Pick-up Truck C. Temporary substitute auto D. A vehicle used as a livery conveyance

D. A vehicle used as a livery conveyance

Transacting insurance includes: A. Solicitation B. Negotiation C. Execution of a contract of insurance D. All of the choices

D. All of the choices

When must an agents records be open to inspection by the Commissioner? A. Within 3 days of written notice by the Commissioner B. Within 10 days of written notice by the Commissioner C. Within 30 days of written notice by the Commissioner D. At all times

D. At all times

Which of the following would NOT be considered livestock in a Farm Coverage Plan? A. Pigs B. Goats C. Mules D. Chickens

D. Chickens

All of the following are implied warranties under an Ocean Marine Policy EXCEPT: A. There must be no deviation in normal route of voyage B. Cargo must be properly packed C. Vessel must be seaworthy D. Cost of Insurance Coverage

D. Cost of Insurance Coverage IDK

The examination of records condition states the insurer can audit the insured's books and records: A. Only when permitted by the insured B. During the policy period only C. Anytime the insurer deems necessary D. During the policy period and up to 3 years following the expiration

D. During the policy period and up to 3 years following the expiration

After an audit the estimated premium becomes the: A. Manual rate B. Remuneration C. Total payroll D. Final premium

D. Final premium IDK GUESS

Which of the following is material information? A. Information that the insurer does not need to know B. Information that influences a person's estimate of the advantages of a proposed contract C. Information that does not affect the decision to enter into a contract D. Information that influences a person's estimate of the disadvantages of a proposed contract

D. Information that influences a person's estimate of the disadvantages of a proposed contract PRACTICE THIS ONE

The insurance commissioner: A. Is elected by the state legislature. B. Is appointed by the governor. C. Is appointed by the state attorney general. D. Is elected by the public.

D. Is elected by the public. IDK

What coverage applies to liability exposures arising from the business location and activities? A. Products Completed Operation B. Aggregate Limit Coverage C. Business Location Endorsement D. Premises and Operations

D. Premises and Operations IDK

According to the California Department of Insurance which term means mandatory? A. Warranty. B. Oath. C. May. D. Shall.

D. Shall.

What is true about workers comp. medical benefits? A. There is no time limit but may have a dollar limit B. There is no dollar limit C. There is no time limit D. There is no time or dollar limit

D. There is no time or dollar limit

Insurance represents which way of dealing with risk? A. Sharing B. Reduction C. Retention D. Transfer

D. Transfer POSITIVE

The term "marine" in the Business of Insurance refers to: A. Water B. Ocean C. Sea D. Transportation

D. Transportation

The drive other car endorsement applies to: A. additional business auto exposures of insureds B. personal autos owned by the named insured C. the insureds employees D. the nonbusiness auto exposures of insureds

D. the nonbusiness auto exposures of insureds IDK

A building that does not contain enough business property for conducting business is considered vacant after: A. 60 days B. 90 days C. 30 days D. 45 days

DONT KNOW 60 DAYS SOUNDS RIGHT A. 60 days

An earthquake policy generally will have what type of deductible? A. $1,000 B. 15% of the policy limit C. No deductible D. $250

DONT KNOW B. 15% of the policy limit

Under the Commercial Property Policy, building and personal property form coverage A, B, and C represent: A. Business personal property, building, personal property of others B. Building, business personal property of the insured and personal property of others C. Building, personal property of others, personal property of the insured D. Building, value report from, personal property of others

DONT KNOW B. Building, business personal property of the insured and personal property of others

If an insurer is approved to transact insurance in the state of California, it is considered to be: A. a transacted insurer B. a domestic insurer C. an admitted insurer D. a foreign insurer

DONT KNOW C. an admitted insurer

Which of the following would NOT be an insured under the liability section of the commercial auto policy? A. The named insured B. An insured auto impacts with another vehicle with the insured auto being at fault C. An individual using an insured auto without the insureds permission D. The owner of a trailer borrowed by the insured and attached to the insureds auto

GUESS C. An individual using an insured auto without the insureds permission

The CGL coverage territory includes all of the following except: A. Toronto, Canada B. Puerto Rico C. Mexico City, Mexico D. U.S. Virgin Islands

GUESS C. Mexico City, Mexico

According to the California Department of Insurance fraudulent is considered: A. A forgiveness. B. A felony. C. A misdemeanor. D. An infraction.

IDK B. A felony.

All of the following are considered insured under the Business Auto Liability except: A. The owner or anyone else from whom a trailer is hired for, borrowed and connected to an auto own by the named insured B. Anyone other than the named insureds employees, a lessee or borrower or any of their employees while moving property to or from a covered auto. C. The named insured for any covered auto D. Anyone using the auto with permission by the named insured

IDK B. Anyone other than the named insureds employees, a lessee or borrower or any of their employees while moving property to or from a covered auto.

In a Business Auto Policy's Physical Damage Coverage, which 2 coverages will NOT be written together for the same vehicle: A. Specified Cause of Loss and Collision B. Comprehensive and Specified Cause of Loss C. Collision and Comprehensive D. All can be written together

IDK B. Comprehensive and Specified Cause of Loss

Under a Workers' Compensation policy, "misclassified" are always covered. A. True B. False

IDK B. False

An insurer formed under the laws of the state in which an insurance policy is written is called: A. an authorized insurer B. a domestic insurer C. a mutual insurer D. a foreign insurer

IDK B. a domestic insurer

How much coverage is provided for firearms in an unendorsed homeowner's policy? A. $1000 B. $2000 C. $2500 D. $1500

IDK C. $2500

According to the California Insurance Code, what must appear on a Notice of Claim form given to an insured? A. Telephone number of the Department of Insurance. B. Information regarding an Insurance Claims Analyst Bureau. C. A notice stating that any person who knowingly presents a false, or fraudulent claim, is guilty of a crime; and may be subject to fines and confinement in state prison. D. Information regarding the Arson Bureau.

IDK C. A notice stating that any person who knowingly presents a false, or fraudulent claim, is guilty of a crime; and may be subject to fines and confinement in state prison.

What is NOT covered under a water craft endorsement: A. All of the choices B. Medical Payments C. Physical Damage D. Liability

IDK C. Physical Damage

Which of the following is excluded under Coverage A of the General Liability Policy? A. Employee causes damage to clients property while working in clients home B. Injury caused by an employee while working C. Property damage caused intentionally by an employee D. Insured accidentally injures a customer

IDK C. Property damage caused intentionally by an employee

The maximum limit for a residential structure covered by flood insurance is: A. $200,000 B. $100,000 C. $500,000 D. $250,000

IDK D. $250,000

To be covered under the businessowners policy, medical expenses will be covered up to how long after an accident date? A. 30 days B. 6 months C. 60 days D. 1 year

IDK D. 1 year

The Coverage C limit is typically what percentage of the Coverage A amount under a homeowner's policy? A. 30% B. 10% C. 25% D. 50%

IDK D. 50%

Identify the penalty for each violation for a person engaging in any unfair method of competition: A. $5,000 for each violation up to a total of $10,000. B. No more than $10,000 total no matter how many violations or type of violation. C. No more than $5,000 per agent. D. No more than $5,000 for each act, or no more than $10,000 for each act if found to be willful.

IDK D. No more than $5,000 for each act, or no more than $10,000 for each act if found to be willful.

After a hearing, if violations of Cal Ins Code 12880.3 (pet insurance) are proved, which of the following are true? A. A person who violates a provision of this part is liable to the state for a civil penalty to be determined by the commissioner, not to exceed five thousand dollars ($5,000) for each violation B. If the violation was willful, a civil penalty not to exceed ten thousand dollars ($10,000) for each violation. C. The penalty shall be imposed by and determined by the commissioner. D. All of the choices are correct

IDK D. All of the choices are correct

What is true about Workers Comp. Insurance? A. Covers employee work injuries only when negligence is proven B. Can be written as part of a Commercial Package Policy C. Employers are responsible for the cost of their employee D. Optional for employers to carry in California

IDK GUESSED C. Employers are responsible for the cost of their employee

Medical payments coverage under the personal auto policy applies for medical bills insured up to how long after an accident? A. Three years B. One year C. Two years D. Five years

IDK GUESSSED A. Three years

The type of insurance written with property coverages to supplement the protection and fill gaps in insurance is called: A. surplus lines insurance B. errors and omissions insurance C. difference in conditions insurance D. commercial umbrella insurance

IDK I THINK D C. difference in conditions insurance

Coverages provided by a personal umbrella policy that are broader than the coverages provided by an underlying policy are called: A. contractual liability coverages B. split limits of coverage C. drop-down coverages D. compensatory damages

IDK guess C. drop-down coverages

These provide temporary insurance pending issuance of the insuring contract: A. certificate of liability B. applications C. lost policy release D. binders

NOT SURE D. binders

Which of the following is NOT one of the seven major farm property coverage form coverages? A. Extra expense after a loss B. Loss of use C. Household personal property D. Dwelling

dont know A. Extra expense after a loss

In a business interruption policy, a coinsurance requirement would apply to: A. both coverages B. business income coverage C. neither coverage D. extra expense coverage

idk B. business income coverage