Property and Casualty

Section 2 of the HO policy will automatically provide coverage for a watercraft with one or more outboard motors with _____ total horsepower of less: A. 25 B. 35 C. 50 D. 75

25

If a DP-3 special form dwelling policy is written with a coverage A policy limit of 80,000, how much coverage will automatically apply to the insured's other structures ? A. 8,000 B. 16,000 C. 32,000 D. 40,000

8,000

Under the NCCI workers compensation and employers liability policy form, the basic, or minimum, limit for employers liability coverage is how much per accident? A. $50,000 per accident B. $100,000 per accident C. $250,000 per accident D. $500,000 per accident

Answer B is correct. Employers liability insurance provides coverage for sums the insured becomes legally obligated to pay under common law because of work-related injuries or occupational diseases. A minimum limit of $100,000 per accident applies.

All of the following are ways to reduce risk EXCEPT: A. Buying insurance B. Quit smoking C. Eat better D. Exercise more

Buying insurance

At DEF Insurance Company, agents are employees of the company who are paid a salary plus commissions. This is an example of what type of insurance marketing system? A. Captive B. Independent C. Direct writer D. Direct response

C is correct. In the direct writer system, the insurer's agents are actually employees. They can receive a salary, be paid on commission, or both.

Which of the following is not excluded under Businessowners Liability coverage? A. Damages the insured causes intentionally B. Liquor liability for those in the business of serving liquor C. Liability assumed under an insured contract D. Damage to the insured's own work

C is correct. The exclusion for liability assumed under contract has some exceptions. One is liability assumed under an insured contract. All the other choices are specifically excluded.

Which of the following losses would be paid under the Business Auto coverage form's Comprehensive coverage? A. Gradual corrosion of the grillwork on a covered auto because of continuous exposure to salt air B. Overturn of a covered auto C. Collision damage to a covered auto D. Theft of a covered auto

D is correct. Losses from wear and tear are excluded. The other two losses are considered collision losses.

What is the largest office building risk that might be eligible for a BOP? A. Three stories and 50,000 square feet B. Three stories and 75,000 square feet C. Six stories and 75,000 square feet D. Six stories and 100,000 square feet

D is correct. Office buildings that are no more than six stories high and contain no more than 100,000 square feet are eligible for the BOP.

Which one of the following coverages is not included in the BOP? A. Bodily injury and property damage liability B. Personal and advertising injury liability C.Medical expense D. Professional liability

D is correct. The Businessowners Liability coverage includes the following coverages: BI liability, PD liability, personal and advertising injury liability, and medical expense.

When must a licensee notify the Insurance Commissioner of a change of address? A. Immediately B. Within 30 days C. Within 45 days D. Within 60 days

Immediately

Under the California insurance code (CIC), neither party to a contract of insurance is bound to communicate any of the following EXCEPT: A. Information the other party knows B. Information that the other party should know C. Information the other party waives D. Information known to be material

Information known to be material

When an insurer can no longer meet its financial obligations when they are due, the insurer is considered to be: A. Under capitalized B. incapacitated C. Under reserved D. Insolvent

Insolvent

Your license will be considered to be inactive when you: A. Do not renew it by your expiration date B. No longer have any appointments C. No longer sell insurance to the general public D. Fail to comply with continuing education requirements

No longer have any appointments

A cause of loss is also known as a A. Risk B. Peril C. Hazard D. Exposure

Peril

Highpoint Industries has an automatic sprinkler system installed in its office building. This is an example of which risk management method? A. Avoidance B. Reduction C. Retention D. Transfer

Reduction

On property insurance, which of the following is NOT considered to be a direct loss? A. Fire B. Lightening C. Hail D. Rental value

Rental value

In order for the replacement cost provisions of a DP-2 broad form dwelling property policy to apply an insured should carry a coverage A policy limit of at least 80% of the dwelling's ______: A. Appraised value B. Actual cash value C. Market value D. Replacement cost.

Replacement cost

J&M Industries does not have a group health insurance plan for its employees. Instead, it pays employees' medical expenses out of a fund specifically created for this purpose. This is an example of: A. Fraternal insurance B. Self-insurance C. Reinsurance D. Government insurance

Self-insurance

If coverage for personal liability and medical payments is attached to a dwelling policy, what basic limit of coverage applies to medical payments unless a higher amount is purchased? A. $500 per person B. $1,000 per person C.$2,500 per person D. $5,000 per person

$1,000 per person

Whenever a policy of personal lines insurance terminates for any reason, the insurer shall tender the gross unearned premium refund to the insured or to the insured's premium finance company within ___ business days: A. 10 B. 20 C. 25 D. 30

25

Who may cancel a CPP? A. Any named insured B. The insurance company C. The first named insured D. None of the above; once a policy is issued, it can never be cancelled

B and C are correct. Under the Common Policy Conditions, certain responsibilities and obligations are assigned to the first named insured. One of these is cancellation of the policy. The insurance company may also cancel the policy under certain circumstances.

The term "time element coverage" is used when the amount of loss depends on which of the following? A. The time between the date of loss and the policy expiration date B. The time between the policy effective date and date of loss C. The time of year when a seasonal business suffers a loss D. The time it takes to repair, rebuild, or restore damaged property

D. The term "time element coverage" is used for many indirect losses, such as a business income loss, because the amount of loss might not be directly related to the amount of property damage that occurred, yet it is related to the time it takes to repair, rebuild, or restore the damaged property. Many factors can influence the ultimate loss, including the availability of supplies and replacement parts.

Actions that are not specified as illegal are: A. Ethical only if they are included in the NAIC's code of ethics B. Ethical C. Unethical D. Either ethical or unethical

Either ethical or unethical

Which HO policy provides "open-peril" overage on the insured's dwelling and specified peril coverage on personal property? A. HO-1 B. HO-3 C. HO-6 D. HO-8

HO-3

If a DP-3 special form dwelling policy is written with a coverage C policy limit of 40,000, how much coverage does the insured automatically have for theft of personal property? A. None B. 4,000 C. 20,000 D. 40,000

None

When an insurer voids an insurance contract due to an intentionally fraudulent omission by the insured of a material fact, it is known as: A. Cancellation B. Rescission C. Declination D. Estoppel

Rescission

On an HO-3, Coverage F - Medical to others will provide coverage for injuries to which of the following? A. Residence employee B. The named insured C. Regular residents of the insured's household D. The named insured's spouse

Residence employee

An "unendorsed" HO policy will not provide any liability coverage to which of the following: A. Outboard watercraft with 25 total horsepower or less B. Resident rented to others C. Motorized vehicle used solely to service a residence D. Motorized vehicle used to assist the handicapped

Resident rented to others

An appointment as an agent of a insurer becomes effective on the date it is: A. Signed by the insurer B. Mailed by the insurer to the commissioner C. Received by the commissioner D. Received by the agent

Signed by the insurer

All are true about transacting insurance EXCEPT: A. It includes soliciting insurance B. Transacting without a license is a felony C. It includes the transaction of matters subsequent to execution of the contract and arising out of it D. It includes the execution of a contract of insurance

Transacting without a license is a felony

Which of the following perils is optional on a DP-1 basic form dwelling policy? A. Removal B. Extended coverage C. Lightning D. Vandalism

Vandalism

On January 1st, an insured paid $600 for a one year property insurance policy. If the insurer cancelled the policy on November 1st of the same year, the insured would receive a premium refund in the amount of? A. $0 B. $50 C. $100 D. $200

$100

In order to reduce flammable materials around homes located in a wildland urban interface area, state law requires homeowners to create at least _____ feet of defensible space: A. 50 B. 100 C. 250 D. 500

100

No policy of residential property insurance may be issued in this state by any insurer unless the named insured is offered coverage for loss or damage caused by the peril of earthquake, subject to a maximum deductible of ____% of the dwelling policy limit: A. 10 B. 15 C. 20 D. 25

15

Mr Jones has an HO-3 with a policy limit of 120,000 on his dwelling that has a replacement cost of 200,000. If he suffers a partial loss in the amount of 80,000, how much will his policy pay? A. 20,000 B. 40,000 C. 60,000 D. 80,000

60,000

Which of the following would be covered under the business personal property coverage of a BOP? A. Desks, filing cabinets, and other office equipment the insured uses in her business B. An enclosure around the front entry to a store that the insured tenant had built when he began leasing the building C. Cans of paint that are stacked near a newly constructed outer wall prior to painting the wall D. Fire extinguishers located at various places on the inside walls of the building

A and B are correct. Property owned and used by the insured in the business and tenants' improvements and betterments made at the tenant's expense that cannot be legally removed are covered under Business Personal Property coverage. Materials that are on or within 100 feet of the premises being used for alterations, such as the cans of paint in Choice C, are covered under Building coverage. Personal property used to maintain or service the building, such as the fire extinguishers in Choice D, are also covered under Building coverage.

All of the following definitions are correct Except: A. A hazard is a cause of loss B. Risk is the Uncertainty of loss C. Concealment is the neglect to communicate a material fact D. Fraud in the deliberate attempt to deceive

A hazard is a cause of loss

Which of the following losses are excluded under most Yacht policies? A. Injury suffered by a passenger in a waterskiing accident B. Collision damage to another boat for which the insured is liable C. Both A and B D. Neither A nor B

A is correct. The collision clause on a Yacht policy covers the insured's liability for collision damage to other vehicles. The waterskiing clause commonly excludes coverage for any person skiing or otherwise being towed by the vessel until they are back on board or have landed safely somewhere.

What is the consideration that an insurer gives to the insured under an insurance contract? A. Stated benefits and the dates on which they are to be paid B. The premium C. A promise to pay for certain losses if they occur D. A promise to be conscientious about the customer's situation

A promise to pay for certain losses if they occur

Which of the following coverages are provided by Business Auto Physical Damage coverage? A. Collision B. Transportation Expenses C. Comprehensive D. Garagekeepers Insurance

A, B, and C are correct. The Physical Damage portion of the Business Auto coverage form contains three principal coverages: Comprehensive, Specified Causes of Loss (a more limited type of Comprehensive coverage), and Collision. Transportation expenses are covered as part of Physical Damage coverage. Garagekeepers insurance is not included in the Business Auto coverage form.

Which of the following are true about the 60-day basic extended reporting period? Select all that apply: A. It becomes effective automatically if needed when a claims-made policy expires. B. The insured must request it in writing within 60 days after the policy expires. C. It does not require an additional premium. D. No separate endorsement is required to provide this extended reporting period.

A. C. D -When a claims-made policy is terminated, a 60-day basic ERP automatically becomes available. The insured does not have to apply for it, and no premium is charged. It provides automatic coverage for any valid claim made during the 60 days after the policy expires, as long as the incident occurred between the expiring policy's retroactive date and its expiration date.

The California standard form fire insurance policy will pay claims on what basis? A. Actual cash value B. Replacement cost C. Market value D. Stated value

Actual cash value

Which of the following describes the principle of indemnity? A. After a loss, an insured should be restored to approximately the same condition that existed before the loss B. Every insured will receive full compensation for all losses in all cases C. When property is damaged or destroyed, the insurance company must pay the full replacement cost D. In the case of bodily injuries, liability coverage must be available without regard to any policy exclusions.

After a loss, an insured should be restored to approximately the same condition that existed before the loss

All of the following are true regarding the California FAIR plan EXCEPT? A. Any licensed agent or broker may submit business to the plan B. Consumers may deal directly with the plan C. Agents may bind plan coverage on those risks that meet plan requirements D. Coverage does not become effective until payment is received by the plan

Agents may bind plan coverage on those risks that meet plan requirements

Fine arts floaters pay coverage claims on a _____ basis: A. Actual cash value B. Market value C. Replacement cost D. Agreed value

Agreed value

Under an insurance contract, the uncertainty of events can lead to unequal financial results for the two parties. This means that insurance is what kind of contract? A. Unilateral B. Aleatory C. Conditional D. Utmost good faith

Aleatory

Loss caused by sprinkler leakage is covered under which Commercial Property Causes of Loss forms? A. Basic B. Broad C. Special D. All of the above

All of the above

If Coverage C (personal property coverage) is written on a dwelling form, the Other Coverages section of the policy will extend the insurance to provide worldwide personal property coverage for an amount up to which of the following? A. 10% of the Coverage C limit B.25% of the Coverage C limit C.40% of the Coverage C limit D.50% of the Coverage C limit

Answer A is correct. In addition to the major coverages written, if personal property coverage is included, a dwelling policy will provide up to 10% of the Coverage C limit for personal property located anywhere in the world. This would include such things as clothing, personal effects, cameras, and luggage taken on vacation.

To avoid problems with underinsurance and overinsurance, a business that has fluctuating inventory values during the year should consider coverage written on: A. The value reporting form B. A replacement cost basis C. The business income form D. A blanket basis values

Answer A is correct. The value reporting form is an endorsement specifically designed for businesses with fluctuating inventory values because of seasonal variations in business or shifting inventory between different locations. When this coverage applies, the insured must report values periodically, such as monthly, and the actual amount of insurance in effect will be adjusted accordingly. The final premium will be adjusted at the end of the policy year based on average

The name of a liability insurance policy that provides high limits of coverage above underlying coverage and may fill a number of insurance gaps is: A. A general liability policy B. An umbrella policy C. An errors and omissions policy D. A difference in conditions policy.

Answer B is correct. Umbrella policies provide high limits of liability coverage above underlying policy limits and might fill a number of insurance gaps. Both Personal and Commercial Umbrella policies are available.

Benson Pharmaceutical Company decides not to manufacture a new drug after determining that it has serious potential side effects. This is an example of which risk management method? A. Transfer B. Retention C. Avoidance D. Reduction

Avoidance

Which of the following would be covered under the building coverage of the Building and Personal Property coverage form? A. Inventory stored at the insured's warehouse B. An addition to the insured's store on which construction has just begun C. Fire extinguishers located in the insured's factory D. Office furniture and supplies kept in the insured's building.

B and C are correct. Inventory, furniture, and supplies would be covered under business personal property coverage.

Which of the following represents a pure risk? A. Terry places a bet on the outcome of a basketball game B. Margaret's dog is temperamental. She's afraid that it will bite a neighbor someday and she will be held responsible. C. Sam transfers all of his retirement funds into a stock that he expects to rise in value. D. Cindy, along with 32 others, puts $100 into an Indy 500 race pool at work. The person holding the name of the winning driver will win the entire $3,300.

B is correct. A pure risk is one that involves only the possibility of loss. Choices A, C, and D are examples of speculative risks in which there exists both the possibility of gain and the possibility of loss.

An indirect loss is which of the following? A. The cause of a direct loss B. A type of loss that results from a direct loss C. An insignificant property loss D. Not a type of property loss

B is correct. An indirect loss is one that comes as a result, or consequence, of the original loss.

Which of the following Other Coverages is not included in the Basic Dwelling coverage form? A. Fire department service charge B. Collapse C. Debris removal D. Reasonable repairs

B is correct. Coverage for collapse is provided by the Broad and Special forms, but not by the Basic form.

George Hawthorn is employed by Moison Appliances as a shipping clerk. As he is stacking TVs in the storage room, he is surprised by two men, both carrying guns. They proceed to empty the warehouse of TVs. This is an example of what? A. Burglary B. Robbery C. Mysterious disappearance D. A fidelity loss

B is correct. In Crime forms, robbery is defined as the unlawful taking of property from the care and custody of another person. The robber must have caused or threatened to cause bodily harm to the person being robbed or must have committed an obviously unlawful act that is witnessed by the person being robbed. Burglary is the taking of property by stealth rather than by force or threat.

Under which part of a Workers Compensation and Employers Liability policy would you find a description of employers liability coverage provided? A. Part One B. Part Two C. Part Three D. Part Four

B is correct. Part One describes the Workers Compensation coverage, and Part Two describes the Employers Liability coverage. Part Three is Other States Insurance, and Part Four describes the insured's duties upon a loss.

What is the per-year policy limit for coverage of electronic data under the Business and Personal Property coverage form? A. $1,000 B. $2,500 C. $5,000 D. $7,500

B is correct. The Business and Personal Property coverage form will only pay up to $2,500 in any one policy year for losses to electronic data.

Mary's Liability coverage limits are 50/100/50. A driver who was injured in an accident caused by Mary obtains a $75,000 judgment against her. Postjudgment interest of $5,000 accrues between the time the judgment was entered by the court and the time the insurer pays. What is the total amount Mary's insurance company will pay for this loss? A. $50,000 B. $55,000 C. $75,000 D. $80,000

B is correct. The policy will pay up to its liability limit of $50,000 plus the postjudgment interest of $5,000.

What is the standard deductible under the regular program of the National Flood Insurance Program? A.$1,000 B. $500 C. $250 D. $100

B is correct. The standard deductible is $500 under the regular program and $1,000 under the emergency program. Higher deductibles are available.

Commercial general liability coverage provides medical expense payments for accidental injuries if the expenses are incurred and reported to the insurer within what date? A. Six months after the accident date B. One year after the accident date C. Two years after the accident date D. Three years after the accident date

B. CGL insurance policies provide coverage for medical expense payments for accidental injuries if the expenses are incurred and reported to the insurer within one year after the accident date.

When can a representation be altered or withdrawn? A. At any time B. Before the insurance is effected, but not afterwards C. At no time D. Before or after the insurance is effected

Before the insurance is effected, but not afterwards

Each of the following is true about the National Flood Insurance Program except which one? A. There are maximum limits on the amount of coverage available B. Coverage may be written by private insurance carriers C. Eligibility requirements are set by private insurance carriers D. The federal government reimburses insurance companies for losses that exceed premiums collected.

C. The Federal Insurance Administration sets rates, eligibility requirements, and coverage limitations for flood insurance. Maximum limits do apply to the amount of coverage available, coverage may be written by private insurance carriers, and the FIA reimburses insurance companies for losses that exceed premiums collected.

The "ground rules" are described in which part of an insurance policy .That describe the responsibilities and obligations of the insurer and the insured? A. Definitions B. Exclusions C. Insuring agreement D. Conditions

Conditions

A homeowner who wants the maximum protection for her home and personal property should purchase the: A. HO-4. B. HO-2. C. HO-3. D. HO-5.

D is correct. The HO-5, the Comprehensive form, provides open peril coverage for dwellings, other structures, and personal property.

Under the additional coverages of the Businessowners property coverage, property removed to protect it from loss will be covered at another location for up to how many days? A. 5 days B. 10 days C. 20 days D. 30 days

D is correct. The preservation of property additional coverage covers loss from any cause of loss to property that was removed from the insured location to protect it from damage by a covered peril. Coverage applies for up to 30 days after the property is first moved.

National flood insurance is available for which of the following? A. Private residences only B. Private residences and residential contents only C. Residential and nonresidential buildings only D. Residential and nonresidential buildings and contents

D. Almost any building that is walled and roofed, is principally above ground, and is fixed to a permanent site is eligible to be covered by a flood policy. A policy may cover a building, its contents, or both.

The most common definition of actual cash value (ACV) in the property insurance field is which of the following? A. Original cost, plus depreciation B. Original cost, less depreciation C. Replacement cost, plus depreciation D. Replacement cost, less depreciation

D. Many losses are reimbursed on an actual cash value (ACV) basis. Actual cash value is usually calculated by determining an item's replacement cost and subtracting an amount for depreciation.

A DP-1 Basic form dwelling policy written to cover a dwelling will provide coverage for which of the following? A. Ordinance of the law B. Debris removal C. Earth movement D. Water damage

Debris removal

The purchase of insurance does all of the following EXCEPT: A. Eliminate risk B. Helps reduce the feeling of uncertainty C. Transfer risk D. Helps people sleep better at night

Eliminate risk

A representation that fails to correspond with its assertions or stipulations is: A. Fraudulent B. False C. Fictitious D. Deceptive

False

Who administers the NFIP? A. State insurance department B. Federal government C. Private insurance companies D. The National Association of Insurance Commissioners

Federal government

Theresa, a spectator at a baseball game, is injured when an errant ball hits her in the head. She sues the stadium owners for negligence. Which one of the following defenses against negligence would the owners probably use? A. Assumption of risk B. Comparative negligence C. Contributory negligence D.Statute of limitations

Feedback A is correct. Assumption of risk applies when a person knowingly exposes himself or herself to danger or injury. When a person assumes this risk, he or she might be prevented from recovering from a negligent party. This doctrine is frequently associated with injuries incurred by spectators at sporting events.

Which HO policy provides "open-peril" coverage on both the insured's dwelling and personal property? A. HO-2 B. HO-3 C. HO-5 D. HO-8

HO-5

The insurance commissioner may deny an insurance license application without a hearing: A. Under no circumstances B. If the applicant waves his or her legal rights C. If the applicant has a final conviction of a felony D. If the applicant made a misstatement on his or her license application

If the applicant has a final conviction of a felony

Which part of an insurance policy describes what property and/or perils will be covered by the contract? A. Definitions B. Exclusions C. Insuring agreement D. Conditions

Insuring agreement

Solicitors may not: A. Issue or countersign policies B. Sell insurance C. Collect premiums D. Sign an application

Issue or countersign policies

All of the following are true regarding an Inland Marine annual transit policy EXCEPT : A. It is usually written on an open-peril basis B. It may be written to cover both incoming and outgoing goods C. It covers all shipment made during the year D. It is purchased by owners of goods who use common carriers

It is usually written on an open-peril basis

A " Tort" is a wrongful act by one person against another or their property for which a civil lawsuit may be brought. All of the following are considered to be intentional torts EXPECT: A. Assault B. Libel C. Negligence D. Slander

Negligence

What is meant by a contract of adhesion? A.Both parties are required to provide services for the other B.One party draws up the contract provisions, and the other party adheres to the terms C.The contract can be revoked by any party at any time for any reason D.A contract that is formed without any consideration by either party

One party draws up the contract provisions, and the other party adheres to the terms

Which of the following personal lines policies provides coverage for damage caused by earth movement and flood? A. DP- 3 Special form B. HO-3 special form C. HO-5 comprehensive form D. PAP other than collision coverage

PAP other than collision coverage

On an H0-3, which of the following types of personal property is not subject to special sub-limits? A. Money B. Watercraft C. Paintings D. Jewelry

Paintings

Which of the following property policies would cover breakage of glassware caused by an earthquake: A. HO-3 Special form B. DP-3 Special form C. Personal articles floater D. HO-5 Comprehensive form

Personal articles floater

On an HO-3, coverage E is: A. Loss of use B. Medical to others C. Other structures D. Personal liability

Personal liability

A California residential property insurance disclosure statement shall be provided to an applicant for residential property insurance: A. Within 10 days of policy delivery B. Along with the policy C. Prior to or at the time of application D. Only upon request

Prior to or at the time of application

The chance of loss without any possibility for gain is known as: A. Speculative risk B. Non-insurable risk C. Pure risk D. Risk retention

Pure risk

Agent Blondell is offering a free television to every applicant who agrees to buy insurance through his agency. In most states, this is an illegal practice known as: A. Rebating B. Twisting C. Misrepresentation D. Failure of fiduciary responsibility

Rebating

Because she has always been in good health, Donna decides to cancel her health insurance policy. This is an example of which risk management method? A. Retention B. Control C. Avoidance D. Transfer

Retention

Which of the following is not a requirement for forming a valid contract? A. Consideration B. Offer and acceptance C. Competent parties D. Signatures of the parties involved

Signatures of the parties involved

The law of large numbers A. Prohibits insurance with extremely high premiums. B. States that there must be a narrow spread of risk for insurance to be effective C. States that the more examples used to develop a statistic, the more reliable the statistic will be D. Requires all members of society with insurance exposures to purchase insurance.

States that the more examples used to develop a statistic, the more reliable the statistic will be

What is the main difference between an HO-3 and an HO-5 policy? A. The coverage for personal liability B. The coverage for medical to others C. The coverage for personal property D. The coverage for other structures

The coverage for personal property

Mrs smith added a personal articles floater with a policy limit of 10,000 to her HO-3 policy to insure her matched set of earrings. If one of them is stolen, the PAF will pay? A. 1,500 B. 5,000 C. The actual cash value (ACV) of the matches set at the time of loss D. The difference between the ACV of the set before and after the loss

The difference between the ACV of the set before and after the loss

On an HO-3, which of the following is not an "insured" under the definitions section of the policy? A. The insured's 25 year old daughter away for college B. The insured's 75 year old grandmother living with him C. The insured's 30 year old son living with him D. A 19 year old foreign exchange student living with him.

The insured's 25 year old daughter away for college

An example of a fiduciary duty is: A. The obligation to tell the truth to the best of you knowledge B. The trust that your client places in you in regard to handling premiums C. Your obligation to state every known fact about the policy you are selling D. Your duty to base all transactions Upon the doctrine of utmost good faith

The trust that your client places in you in regard to handling premiums

Which of the following must be printed on every licensee's business cards, written price quotations and printed advertisements: A. Their insurance license number B. Their sales manager's name and address C. Their business address and phone number D. Their website address, if any

Their insurance license number

Making an insured whole again after a loss is known as: A. To subrogate B. A warranty C. To indemnify D. Estoppel

To indemnify

Which of the following is the most common method for managing risk? A. Retention B. Transfer C. Reduction D. Avoidance

Transfer

In an effort to sell more insurance policies, bob the insurance agent promises his client that he will give them $300 if they buy a policy from him. The insurance code prohibits this act. The scenario illustrates which insurance term? A. Limited inducement B. Defamation C. Unfair trade practice D. Commingling

Unfair trade practice

Which of the following endorsements must be attached to all policies that provide coverage for comprehensive personal liability in this state: A. Workers compensation for a residence employee B. Scheduled personal property C. Personal injury D. Personal property replacement cost

Workers compensation for a residence employee