Property License Practice Exam

An insurance contract must contain all of the following to be considered LEGALLY BINDING EXCEPT?

Beneficiary's Consent

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

Nonrenewal

A floater that is used to insure personal effects carried or worn by the insured while traveling ?

Personal effects floater

The insurer failed to provide the renewal terms and the statement of the amount of premium due to the insured under a homeowners policy within the required time period. The insurer, then, must automatically extend the existing policy for how many days ?

45 days

Assuming the insurer and the insured agree on the amount payable for a loss covered under a dwelling policy, how soon after the insurer has received proof of his loss must it make payment ?

60 days

Liberalization Clause

Changes adopted by the insurer that broaden coverage automatically apply to the policy at no additional premium

What term includes damage where the insured peril was the proximate cause of loss?

Direct Loss

A dwelling Policy has a standard deductible that applies to all property coverage, except fair rental value, additional living expense and the fire department service charge. How much is this deductible ?

$250

Type of property valuation that the policy pay the full value as specified on the policy schedule, regardless of the insureds property's APPRECTION or DEPRECTION

Agreed Value

Who will transport the property of anyone who hires them?

Common carriers

Special Form Dwelling =

Coverage A is for ALL RISK PERILS and Coverage C is for the BROAD form Perils

Fair rental value coverage =

Coverage D

With regards to a homeowners policy, which coverage provides for indirect or consequential losses?

Coverage D

In dwelling policies, automatic increase in insurance is ?

Coverage by endorsement

What type of information would be found in a policy's insuring agreement?

Renewal dates

A property insurance 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

Coverage in the dwelling policy that protects against fire?

coverage c

A contract for the transport of goods between the shipper and the carrier is called

a bill of lading

How often will the commissioner examine domestic insurers in this state ?

every 5 years

Notice of Claim form

from an INSURED to an INSURER

When the commissioner believes that a person has engaged in an unfair method of competition or an unfair trade practice, before issuing a Cease and Desist order, the commissioner must ?

hold a hearing

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

indirect loss

an insurer writing personal lines property or casualty insurance who uses credit information in the underwriting or rating processes , may do so as long as the insurer or its agent discloses this practice at the the time of the application. Under what condition may the insurer use credit information in the renewal of that policy ?

insurer may contain credit information in connection with a renewal provided that the consumer has previously been provided a copy of the disclosure statement

The part of a policy that clarifies terms in the policy is the

Definitions

What term included damage where the insured peril was the proximate cause of the loss ?

Direct Loss

Who is responsible for filing out a notice of claim form ?

Insured

Persons covered under an insurance policy, whether named or not, are known as the

Insureds

What part of the insurance contract covers claims-realated expenses, reasonable expenses incurred by the insured to protect from further loss or defense ?

additional coverage

In property insurance, actual Cash value is defined as ?

replacement cost at the time of loss, less deprecation

When a loan is secured using real property as collateral, the lender is prohibited from requiring the debtor to insure the property for an amount greater than...

the replacement cost of the property

in forming an insurance contract, when does acceptance usually occur

when the insures underwriter approves coverage