Questions Answered Wrong

The time frame bankruptcy may be used for underwriting:

10 years

The purpose of the virginia property insurance association/FAIR plan is to?

Make property insurance available and affordable in high risk areas

not an element of an insurance contract

conditions

When an agent is underwriting a policy, which of the following would be considered an example of unfair discrimination? A. a question asking if an applicant can see or not B. a question asking if an applicant is married or divorced C. a question asking for the applicants date of birth D. a question asking if an applicants is male or female

a question asking if an applicant can see or not

What would not be considered a negligent act?

an intentional act

supplemental payments

are not deducted from liability

What can an unlicensed person do?

assist in the completion of an applictaion

Which is the best policy to purchase when you own a mink coat?

personal articles floater

What is not insured under section I property of a homeowner policy

pet (bird, fish, dog)

Formula for replacement cost

todays price no replacement

insurance to value (aka coinsurance) is met, what loss value is reatined?

replacement cost

Which of the following describes a producer that induces a customer to cancel their current policy by doing unequal comparisons?

twisting

In an appraisal clause the binding decision is made between the?

umpire and appraiser

Exterior walls, floors, and roof of masonry or fire-resistive material with a fire resistance rating of a 2 hours (constructive code 6) describes which building category?

fire resistive

not covered by a homeowner policy

first aid to an insured

property ownership is needed for?

insurable initerest

insured's policy has a deductible what does this mean?

insured must pay a certain amount of a property loss incurred under the policy

In which part of the policy would the policyholder find the policy's coverages?

insuring agreement

The personal umbrella policy provides coverage in situations that may not be covered by the personal auto or homeowner policy. In those situations, the insured may have to pay a portion of the claim. The portion of the claim paid by the insured is?

self-insured retention

A new homeowner wants to mitigates fire damage should a fire occur but failed to install sprinklers in their new home. The homeowner failing to install sprinklers is what type of hazard?

morale hazard

Your auto was smashed up in an accident that was clearly not your fault. It is going to cost $9,500 to repair it. This is an example of what kind of damage?

special

umbrella policy does not cover?

things done to you, the insured

What is the purpose of the umbrella policy?

to provide liability coverage for large law suits

flood perils does not cover this

water sewer backup

dwelling policy special form covers which?

weight of ice, sleet snow

supplemental payments for auto policy to appear in court?

$200

supplemental payment limit for loss of earnings when work is missed to testify during a homeowner trail?

$250

Highest limit we'll pay for in a flood policy?

$250,000

What is the maximum amount of coverage for someone with a dwelling being insured by the national flood insurance policy?

$250,000

A dwelling is insured for $120,000 under an unendorsed DP3. A burglar breaks in and stelas $2000 in jewelry, $3000 in firearms, and $500 cash. He does $2500 of damage to the dwelling. How much will the insured recover?

$2500

How many days notice is required when the insurance company would like to cancel the auto policy for non-payment of premium?

15 days

After a homeowner policy has been in effect for at least 60 days and the insurer non-renews the policy, they must give the insured advance written notice of at least

30

NFIP holds application, coverage becomes effective when?

30 days

What id the occurrence period for the Earthquake Endorsement on a homeowner policy?

72 hours

Which of the following would be covered by an auto policy? A. using your car as a carpool with a co-worker and their spouse B. using your car for delivery C. test driving a new car that is not yet purchased from the dealer D. using your car as a taxi on the weekends in your free time

A. using your car as a carpool with a co-worker and their spouse

Your bodily injury and property damage from your personal auto policy will pay for the following? A. injuries sustained by the driver and passengers in the other car when the accident was your fault B. your vehicle repairs necessary due to an accident that was your fault C. damage to your own vehicle that you caused after crashing into it D. injuries you sustained in your car when you have an accident

A. injuries sustained by the driver and passengers in the other car when the accident was your fault

Which is true about the legal action against us under part F? A. legal action may not be brought against the insurer until the insured has complied with all the terms of the policy B. legal action against the insurer is permitted only when arbitration is unsuccessful C. legal action brought against the insurer must be brought within 180 days of the loss D. legal action brought against the insurer must be brought within 90 days of the loss

A. legal action may not be brought against the insurer until the insured has complied with all the terms of the policy

It is illegal to lie about policy terms or conditions when speaking to a client. In doing so you may be found guilty of what unfair marketing practice?

A. misrepresentation *MARKETING*

Which of the following is NOT covered under Medical Payments on a Homeowner policy? A. pain and suffering B. medical bills C. funeral expenses D. physical therapy bills

A. pain and suffering

All of the following would be considered an adverse underwriting decision, except: A. the rate is too low for the risk B. charging the insured a higher risk C. declining a policy D. the agent not applying for insurance with a specific insurer

A. the rate is too low for the risk *ADVERSE SELECTION IS CHARGING A HIGHER RISK*

Which of the following would be paid out under your auto liability coverage? A. your 11 year old child that accidentally hits the gear shift in your car and hits someone at the gas station B. a CEO that rear ends one of their employees in the parking lot at work C. your 10 year old child that was injured when someone hit your car in the parking lot and drove away D. a repairman that t-bones someone at an intersection while test driving your vehicle with your knowledge

A. your 11 year old child that accidentally hits the gear shift in your car and hits someone at the gas station

Which of the following is true about other than collision? A. glass breakage from a pebble would never be covered B. it is an open peril coverage C. when a car is stolen and then involved in accident while thief is driving, the claim would not be covered D. it only covers a collision with an object and upset

B. it is an open peril coverage

Which of the following perils are special and not board on a homeowner policy? A. water damage to the following due to an old washing machine B. freezing of the pipes on a negative temperature winter day D. falling objects

C. a grizzly bear tearing your mailbox off the front porch of your house

Which is true about deductibles? A. they reduce claim B. when raising a deductible the policyholder pays a higher premium C. coverage like bodily injury and property damage have deductibles D. deductibles force policyholders to pay the entire claim

C. coverage like bodily injury and property damage have deductibles

All of the following are covered in a personal articles floater (PAF), except: A. flood B. earthquake C. inherent vice D. theft

C. inherent vice

What is true about a vacant property? A. it is uninsurable B. it is uninsurable after 60 days C. it is unoccupied and there is no furniture D. it is always insurable

C. it is unoccupied and there is no furniture

Which of the following will enhance coverage for no additional charge? A. appraisal clause B. assignment clause C. liberalization clause D. subrogation clause

C. liberalization clause *libel means free*

Watercraft liability would be covered by all the following boats, except: A. inboard power boats, 50 hp B. outboard boats, 25 hp C. outboard boats, 26 hp Sailboats, 25 feet

C. outboard boats, 26 hp

Which of the following adds coverage for injury to a 3rd party on a dwelling policy? A. personal medical payments B. umbrella C. personal liability D. broad theft

C. personal liability

All of the following could result in imprisonment, except: A. embezzling B. fraudulent statements C. rebating D. stealing

C. rebating

Which of the following statements is true about the virginia automobile insurance plan? A. an insurance agent designates the insurance company for a specific insured B. a number of insurance companies share the loss incurred by the bankrupt insurer C. the plan designates an insurance company as the insurer of a specific insured D. the insured designates a specific insurance company to pay his claim

C. the plan designates an insurance company as the insurer of a specific insured

Which is not true about medical payments to us? A. they pay out regardless of fault B. they have a per person limit C. they provide supplementary payments D. they will provide coverage for you and your passengers

C. they provide supplementary payments

A homeowner has an HO-3. which of the listed perils would be excluded when personal property is damaged in the home? A. the roof collapsing due to the weight of ice and snow B. hail damage C. water seeps into the house due to leaves blocking your gutter. it not only damages your walls but also the sofa D. water and soap suds from your washing machine damage your wall to wall carpeting and sofa

C. water seeps into the house due to leaves blocking your gutter. it not only damages your walls but also the sofa

Coverage that'll pay when dog bites sometimes?

Coverage E $100,000 CSL

Which of the following situations would be covered by liability under a personal auto policy? A. an unsure cause injuries while operating a taxi cab B. an insured damages another vehicle while driving a motorcycle C. an insured causes injuries while delivering flowers D. an insured runs into a 7-11 because they had the vehicle in drive and instead reversed

D. an insured runs into a 7-11 because they had the vehicle in drive and instead reversed

All of the following are true, except: A. the purpose of coinsurance is to encourage the policyholder to carry insurance to value B. named perils only cover stated perils C. open perils cover all perils, except those excluded D. coinsurance is a more expensive premium

D. coinsurance is a more expensive premium

Which of the following authority is given based on custom, usage, or principal's conduct? A. express B. fiduciary C. apparent D. implied

D. implied

Government insurers were established to provide all of the following, except: A. insurance coverage unmet by private insurers B. insurance coverage to meet compulsory insurance requirements C. coverage through state and federal programs D. insurance coverage exclusively for acceptable risks

D. insurance coverage exclusively for acceptable risks

Which of the following Virginia auto policy coverage must be offered? A. bodily injury B. property damage C. collision D. medical payments

D. medical payments

Which of the following would be covered by an inland marine contract? A. liability B. real property C. a factory D. personal property transported by a train

D. personal property transported by a train

Which of the following is considered unfair discrimination? A. using the location of where an insured lives and charging more for an urban area vs a suburban area B. asking an insured about his/her martial status and charging a higher premium for a divorced driver C. using a driving record and charging more money for rickets and accidents vs an insured that does not have tickets and accidents D. using an insured's history of domestic violence to get pricing and charging a higher premium for any insured that has had previously experienced domestic violence

D. using an insured's history of domestic violence to get pricing and charging a higher premium for any insured that has had previously experienced domestic violence

What would not be covered by a watercraft policy? A. liability when your friend borrows your boat and has an accident B. any liability you cause with the watercraft C. property needed to operate the boat such as sonar, radar, and life preserves D. using your boat for commercial purposes

D. using your boat for commercial purposes

Which homeowner forms does not provide coverage A?

HO-4

What best describes when the customer pays the 1st payment of premium, then the agent accepts and binds the policy?

acceptance

What is the unequal transfer of value between the insured and the insurer?

aleatory

valued basis eliminates what?

avc, actual cash value

What coverage will pay from your auto policy if you hit a pedestrian when you lose control of your car?

bodily injury

liability coverage that pays 3rd party physical harm

bodily injury

In which part of the policy would the insured find the policy's deductibles?

declarations page

insured's obligation to notify insurer after a loss

duty of loss C

dwelling policy (basic), what would be covered?

house, debris removal, but NO TREES

example of a personal injury

libel slander defamation invasion of privacy

not covered under personal watercraft policy

loss of income

Which hazard would describe: setting my house on fire because I am unable to make my mortgage payments

moral hazard

What unfair trade practice would be violated if the agent did not correctly disclose the nature of the policy?

misrepresentation

a tort that is not an intentional act

negligence

Stephanie insures a home for $250,000 under a DP-2. If a flood causes $50,000 in damage to the contents, what is the most that Stephanie's insurer will pay?

none of the above

property insured under more than one policy, what clause determines the liability for each?

other insurance clause

Jodi finds her car is vandalized when she comes out of the mall. Which of her coverages from her auto policy will pay to fix her car?

other than collision

what coverage pays for vandalism/mischief on a personal auto policy?

other than collision

windstorm damage to personal property inside the home to cover, what must happen first?

outside must be damaged

To be indemnified for a loss you must have a policy and:

own or lease the item

virginia p&c insurance guaranty association purpose?

pays claims for bankrupt of insurer

If you have two homeowner policies covering the same loss, how will they pay if you experience a total loss?

pro-rata liability

What is the name of the document that an insured must sign and swear to when requested by an insurer?

proof of loss statement

dwelling policies are called mono-line because they only cover?

property

Dori's new car was damaged when another car ran a stop sign and hit her in the driver side door. Which coverage if any will be able to pay to fix her prius from the at fault drivers policy?

property damage

The state corporation commission cannot:

revoke your driver's license

policy provision that allows the insurer to recoup some of it's losses by taking possession of the vehichle and sell its parts?

right to salvage

insured's home is a total loss and he decides he doesnt want to rebuild, What would the mortgagee need to do to collect?

submit a proof of loss within 60 days

The insured intentionally disclosed materially false information at the time of application and the insurer discovered it shortly after

the insurer will have the option to void the policy

agent threatens an individual to purchase insurance, they are breaking what law?

unfair trade practice

not part of the basic dwelling policy?

vandalism

what is covered by the liability section of a homeowner policy?

your 10 year old hits a neighbor in the face with a frisbee breaking his nose

Medical payments through an auto policy will pay for?

your passengers injuries in an auto policy