Property and casualty

An insured hits a deer and crashes his car into a tree. The total damage to the vehicle is $6,000. How will this loss be covered?

$6,000 would be paid under other-than-collision coverage.

The business owners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period

1 year

Which is true regarding the premium computation for workers compensation insurance?

A premium auditor has has the right to examine the insureds compensation records at the end of the policy period to determine the actual premium basis

What is material misrepresentation

A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company

An uninsured motor vehicle includes all of the following EXCEPT

A vehicle owned and operated by a self-insurer

Which of the following would not qualify as a hired auto?

An auto borrowed from an employee

An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's liability policy has a limit of $500,000. This amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does the insured have?

Combined single

What is another name for liquor liability insurance?

Dram shop insurance

What method of premium computation relates an employer's losses, payroll, and premiums to the rating bureau's classifications of operations?

Experience modification factor

The proof of loss statement must be

In writing

All of the following are true regarding deposit premium except

It is 50% of the actual premium

Which of the following is true regarding the fire department service charge under the builders risk form

It is an additional coverage

If an employer in a state with elective workers compensation laws chooses not to be subject to those laws, what does the employer lose?

Its common law defenses against liability suits

When an insurance policy does not offer a continuation or replacement at its expiration date, it is considered a

Nonrenewal

Who are the parties to a bond?

Principal, obligee, and guarantor

All of the following statements regarding continuing education requirements in this state are true except

Producers may repeat the same courses to meet the required CE hours for a licensing period.

Which one of the following symbols used in business auto coverage is correctly described

Symbol 9 - nonowned autos only

Burglary is defined as

Taking of property from within the premises leaving visible signs of forced entry.

What is the primary objective of workers compensation?

The payment of benefits to employees for injuries arising out of their employment

If an insurance premium is paid by the policy owner to the agent, and the agent fails to remit that premium to the insurer, which of the following statements is true?

The policy will not lapse since payment to the agent is the same as a payment to the insurer.

What type of compensatory damages will pay for pain and suffering and disfigurement?

in general

An additional loss that results from a direct loss of property is called a/an

indirect loss

Who is responsible for filling out a notice of claim form

insured

What is the major difference between a stock company and a mutual company

ownership

An insured's accounts receivable records have been damaged. The loss may be covered with

The accounts receivable coverage form

In this state the maximum fine for transacting insurance without a license

1000

Insurers must update copies of its rates, plans, systems, and underwriting rules every

2 years

Which of these defined as the maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claims that may be made or the number of accidents that may occur

Aggregate limit

In equipment breakdown coverage all accidents would be considered a single accident if they occur

At a single location at the same time and from the same cause

The process of determining the premium charged and how much insurance is required for a particular loss is called

Loss valuation

The primary purpose of a surety bond is to

Make sure obligations are fulfilled

The physicians and surgeons equipment floater in not intended for which of the following

Medical supplies located in a hospital

All of the following statements concerning coinsurance are true except

The coinsurance formula will also be applied to total losses.

The claims-made trigger is based on which of the following?

The date the claim is first made

Which of the following is covered under the theatrical property floater of an inland marine policy

Vehicles used on stage

Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses?

additional coverage

An agent must be a resident of the state and be present in the state for at least how many months each year?

6 months

The employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to

90 days

Which coverage form would provide coverage for all incoming and outgoing shipments?

Annual transit

What would not be covered under the liability section of a personal auto policy?

Bodily injury is caused by the insured's negligence while driving a three-wheel all-terrain vehicle.

In any case where there is a controversy or dispute between the insurance company and the insured, the soliciting agent is the agent of the

company

In commercial auto insurance what type of coverage will pay for loss or damage to a covered auto by any cause other than collision or overturn

comprehensive

Losses caused by continuous or repeated exposure to conditions resulting in injury persons or damage to property that is neither intended nor expected is the definition of which of the following terms?

occurrence

A customer was injured in a supermarket parking lot when a grocery cart collided with the customer's leg. Coverage for this claim would be provided under

premises and operations

The party to a surety or fidelity bond who promises to fulfill the obligation is the

principal

All of the following are considered parts of the policy structure except

provisions

What type of damages may be awarded by the court to create disincentives that discourage behavior that is deemed highly undesirable by society

punitive

Who elects the Commissioner of Insurance to office?

registered voters

According to the BOP definitions, which of the following does NOT mean valuable papers and records?

securities

What is the deductible of a personal liability umbrella policy called?

sir

The maximum penalty that may be assessed for a single no willful violation of the insurance code is

$1,000

A premium discount is the term that describes when an insured owes a total standard premium greater than

$5,000

If an insured covered under a Mobile Homeowners Policy moves the mobile home to protect it from a covered peril, the policy will pay up to

$500

Under workers compensation laws, injured workers are entitled to how many weeks of treatment from the date of the accident?

400 weeks. Medical treatment for injuries due to an on-the-job accident is limited to a maximum of 400 weeks of coverage from the date of the accident. Review ContentNext Question

If the premiums for a policy will be increased by more than 15 percent, how much warning must the insured get?

45 days

Rates for private passenger motor vehicle insurance on file with the Commissioner are considered approved after

45 days

Authorized insurance companies are examined by the commissioner at least once every

5 years

Which of the following must an insurer obtain in order to transact insurance within a given state?

Certificate of authority. All insurers (domestic, foreign, or alien) must obtain a certificate of authority before transacting insurance within a given state.

A liability policy provides coverage for a claim for injury or damage if the claim is first reported or filed against the insured during the policy period is called?

Claims-made form

What are the two major sections of commercial crime policies?

Commercial entities and government entities

A professional who wants coverage for all liability exposures should purchase what form of liability insurance?

Commercial general and professional

A plasterer has finished a job. What kind of liability coverage would protect him if the plaster falls and hurts someone because he did not do the job correctly?

Completed operations

An individuals construction company leaves mobile equipment and construction machinery on the job site until the project is completed. What could this individual use to insure it

Contractors equipment floater

The commercial property declarations page contains which of the following information

Description of the property insured

All of the following are excluded in the equipment breakdown basic policy except

Explosion of steam boilers

Replacement cost is defined as

Full replacement of property at its current cost, new and without reduction for depreciation.

If a property and casualty insurer is unable to pay claims, which entity would pay benefits to policyholders?

Georgia insurers insolvency pool

The policy conditions define

How parties to the contract must act following a loss.

Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost?

Indemnity

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?

No, because the claim results from copyright infringement and is not in an advertisement.

Duties of the insurer found in property policy conditions include all of the following EXCEPT

Notify the insured in the event of financial difficulty.

A plant worker for a chemicals manufacturer was recently diagnosed with a rare blood disease. She told her doctor that her job required her to handle industrial waste chemicals. Which of the following types of injuries is covered under the workers compensation policy?

Occupational disease caused or aggravated by a condition of employment

The mobile home endorsement alters the home owners policy to cover a mobile home and other structures on land

Owned or leased by the resident

The gramm leach bliley act was passed to

Protect private customer information filed with a financial institution.

In a personal umbrella policy, the amount paid by the insured for certain losses not covered under the primary coverage is called

Self-insured retention

A property insurance policy that is not subject to any coinsurance requirements but has a set amount of insurance scheduled for the property would use what loss valuation method

Stated amount

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

The agency loses commission income from policies that were not issued by the insurer

Which of the following statements is true regarding the commercial general liability policy's coverage c- medical payments

The coverage is considered good will because payments are made without regard to fault

The occurrence form trigger is based on what?

The date when injury or damage occurs

According to the standard worker's compensation and employer liability policy form, a state should be listed in part three- other states insurance of the workers compensation and employers liability policy when

The insured expects to extend operations to that state

Which of the following is most likely to occur if it is determined by the audit that the deposit premium was too high

The insured will receive a return premium

Under the limits of insurance provision found in the Physical Damage Coverage Form in a Commercial Auto policy, how much will an insurer pay to repair or replace a covered auto?

The lesser of the actual cash value or the cost to repair or replace a covered auto

Which of the following statements is true concerning a bonded contractor who defaults on a construction performance contract?

The obligee may engage another contractor and then seek reimbursement from the surety.

In terms of parties to a contract, which of the following does NOT describe a competent party?

The person must have at least completed secondary education.

A specific coverage part is listed on the commercial package policy declarations page, but there is no premium shown. What does that mean?

There is no coverage

Which of the following best expresses the purpose of a stated value contract

To pre-establish the amount of coverage available for property items that are difficult to value

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT

conditions

Which of the following is not an essential element of an insurance contract

counteroffer

A professional liability policy will provide coverage for loss in all of the following cases, except, when the insured doctor was shown to be

criminally negligent

A beauty parlor burns to the ground. What type of loss is this to the owner?

direct

Two individuals who are in the same risk and age class are charged different rates for their insurance policies due to an insignificant factor. What is this called?

discrimination

Which of the following would be covered under personal injury liability

slander

Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages?

special

What are two types of compensatory damages?

special and general

Workers compensation benefits in Georgia are limited to what amount of a workers average weekly wage

two-thirds