questions
what is the maximum penalty for continuing to negotiate insurance without a license after receiving notice from the commissioner?
$10,000
in order to receive a brokers license the applicant must file with the commissioner a bond in the sum of at least
$15,000
the regular national flood insurance program would insure an eligible single family dwelling up to?
$250,000, on a replacement cost basis
insureds under a mobile homeowners policy move their mobile home to prevent it from being damaged by a fire. what is the maximum amount the policy will pay for this?
$500
you open your locked safe this morning and find 4,000 worth of property is missing with no signs of forced entry. how much does your safe burglary policy pay?
0 - for burglary coverage to pay, signs of forced entry or exit must be present
business auto coverages apply to only those autos that are identified as covered autos in the declarations by entry of the appropriate numerical symbol. which symbol affords the broadest coverage
1
the business owners liability coverage form will cover medical expenses incurred and reported within what maximum time period after the accident
1 year
under a business policy section 1 if an insurer wants to nonrenew a policy for nonpayment of premium how many days before the expiration dat must the insurer notify the mortgage holder?
10 days
the personal property off-premises extension of dwelling forms provides limits of coverage up to
10% of Coverage C anywhere in the world
an insured was told to leave his home because of endangerment by a brush fire that was out of control,. the insured was able to have his personal property moved to storage away from the endangered area. how much coverage and for howl long will the homeowners policy provide?
100% of the coverage C limit for 30 days
an insured has an automobile policy with limits of 100/300/50 and a deductible of $1000 he is involved in an auto accident and crashes into another driver's auto. the other driver is awarded 125k for his injuries and 25k for damages for the car. the insured's car has damage in the amount of 1200. the total payment made under the insured's policy is
125,200
what is the biennial continuing education requirement for life insurance agents
24 hours
under business personal property limit- seasonal increase if no percentage is specified in the declarations seasonal fluctuations will automatically increase the limit for business personal property by
25%
what is the maximum amount the NC guaranty association will cover for unpaid claims
300,000
what is the maximum number of roomers or boarders for properties insured under the dwelling policy
5
according to business property coverage from vacancy condition, if a policy is issued to the owner of a building will be considered vacant if what portion of the square footage is unused.
69%
in business income additional coverage in a business owners policy, the waiting period that must occur before the period of restoration may begin is
72 hours
a spouse of a deceased agent has held a temporary license for 90 days. for how many more days will the license be valid?
90 days
which homeowners form provides open peril coverage for dwelling coverage a and contents coverage c
HO-5
a BOP is most similar to a...
Homeowners policy
which of the following defines an insurance broker
a person licensed to solicit insurance on behalf of the insured
all of the following qualify as an insured contract as defined in commercial auto policies EXCEPT
agreement for demolition near a railroad
coverage d additional living expenses is intended to
allow the family to maintain their normal standard of living
for negligent liability to exist which is not a requirement
an intervening cause
under coverage b other structures a homeowners policy provides coverage for other structures on the residence premises. which of the following statements is NOT true of this coverage?
any loss under coverage B reduces the coverage A limit of liability
when do binders expire
as soon as the policy is issued
an insurance company required to submit advertisements to the department of insurance
at least 30 days before using it
according to common policy conditions for a commercial package policy, it the insured dies, the policy right and duties
automatically transfer to legal representative
which of the following is NOT one of the three other coverages available with the personal liability supplement?
bankruptcy
a lender who conditions approval of a loan on the condition that the borrower purchase insurance from that lender may be guilty of
coercion
the supplementary section of the commercial general liability policy would cover
court cost assessed against the insured in a suit
Other than perils, the difference in the three DP forms is in coverage provided. Which of the following coverage options is covered by the DP-2 and DP-3 but not DP-1?
coverage E - additional living expenses
an insurance institution or agent that discloses information in violation of the the information privacy and disclosure statues of NC will be liable for
damages sustained by the individual to who the information relates
during policy solicitation an insurer exaggerated the financial condition of one of its competitors and makes it sound worse than it is. this is an example of
defamation
theft of property can only be included by...
endorsement
which of the following statements does NOT describe endorsements
endorsements may only add coverage to a current policy, not remove
what policy would a business owner whose business fills scuba tanks most likely need to insure unfired pressure vessels and compressors
equipment breakdown
all of the following statements regarding continuing educational requirement are true except
excess CE hours cannot be carried over to the next licensing period
an insured just purchased an auto policy for his new car. h wants to understand what perils are not insured against. which section of his policy should the insured check?
exclusions
expenses that an organization would not have occurred if business interruption had not existed are known as
extra expenses
an important fact about the financial status of an insurer was deliberately withheld. which of the following terms best describes this action
false financial statement
to have insurable interest in the person or property covered by a property insurance policy, which of the following potential risk must the policyowner face
financial loss
what is used as the basis for requiring a community to join the national flood insurance program
flood hazard boundary maps
the major portion of a premium for an equipment breakdown policy pays?
for examination and inspections
a clause found in ocean marine policies requiring that when there is a sacrifice of property to save the ship, crew, and other cargo, everyone who benefited from this sacrifice must share in the payment for the sacrificed property
general average
A Mobile Homeowners Policy is structured the same as a
homeowners policy
under the employee theft coverage, when a covered employee is found to have participated in dishonest act, the coverage for that employee will terminate
immediately
when reviewing a standard workers comp and employers liability policy the limits of coverage are described in part one of the policy. the dollar limits of the benefits provided are stated
in the state workers compensation law itself
what part of the insurance contract describes the covered perils and the nature of coverage of the contractual agreement between the insurer
insuring agreement
a structure may be eligible for coverage under the national flood program if it meets all of the following requirements Exept
is entirely over water
which of the following statements are correct concerning the builders risk coverage form is correct?
it may be written on a reporting form for the completed value of the structure
which of the following statements concerning the builders risk coverage form is correct
it may be written on a reporting form for the completed value of the structure
how does the mobile home endorsement affect the other coverage?
it removes it
in NC for licensing purposes an applicant is considered a resident if he or she
lives in NC or any county outside the state that boarders NC
in a business owner policy which of the following would be covered
medical expenses
which is NOT true of workers compensation coverage
medical payment benefits are limited
which of the following exposures is NOT covered under a homeowners policy?
medical payments to an insured
Guaranteeing future dividends is considered to be an unfair or deceptive act known as
misrepresentation
the extended nonowned coverage provides protection to
only the person named on the policy
a property insurance policy that insures a commercial building on a replacement cost basis includes the ordinance or law coverage endorsement. the endorsement will cover all of the following expenses EXCEPT?
ordinance with which the insured was required to comply prior to the loss
which of the following would be covered under building and personal property coverage form?
outdoor sign
an insured is injured while driving his own car. which of the following coverages will pay for the loss
part b - medical payments
business owners liability coverage automatically includes all of the following liability coverages except
pollution
after a loss an insured covered by a business property coverage is NOT required to
reconstruct for the insurer a timeline of activities leading up to a loss or for use in an investigation
for an additional premium, the extended coverages written on the basic form dwelling policy would cover which of the following
riot
what section allows for additional coverage damage to property of others the policy would provide replacement cost coverage up to 1,000 to pay for damage to property of others caused by an insured
section 2 with no deductibles
all of the following are TRUE statements regarding cancellation procedures EXCEPT
short-rate cancelation allows the insured to pay less for each day of coverage than if the policy had remained in force for the full term
the policy provision found in property insurance policies that prevents the insured from collecting twice from the same loss is
subrogation
all of the following statements regarding personal property coverage in the homeowners program are correct except
the HO 3 policy covers the mysterious disappearance of personal property
a non resident of NC may be licensed without taking the required written examination if
the applicant is currently licensed as a resident and is in good standing in his or her home state
all of the following statements regarding the appraisal clause of the standard fire policy are TRUE EXCEPT
the appraisers will then each select an impartial umpire and each appraises the loss stating the ACV of each item
which of the following statements is CORRECT regarding business income coverage under the business owners policy?
the business income losses are payable for 12 consecutive months following the occurrence
which of the following statements is correct regarding business income coverage under the business owners policy
the business income losses are payable for 12 consecutive months following the occurrence
is a licensee fails to notify the commissioner of insurer insolvency, if known or suspected, and to provide a statement of relevant facts which of the following is TRUE?
the commissioner may suspend or revoke the persons license
although a business owners policy will cover fire damage legal liability which of the following statements is true
the general aggregate does not apply to fire damage legal liability
a golfer slices a tee shot and the ball goes through the window of a house beside the fairway. the broken glass is paid for by
the golfers homeowners liability coverage
which of the following would not be covered by uninsured motoris coverage
the insured causes a head on collision with the car of an uninsured motorist
which of the following statements are correct regarding the debris removal coverage under the business owners policy
the insureds limits of liability is 25% of the sum of the direct loss payment plus the deductible amount
if the premiums collected by an insurer participating in the WYO flood program are insufficient to cover losses which of the following would be true?
the insurer will be reimbursed for the excess cost by the NFIP
all of the following are considerations in determining which states laws applies when a worker is required to travel into another state and is injured while working in the other state Except
the insurers chartered location and domicile
an insured has decided to never drive another vehicle and wants to transfer his auto insurance policy to his wife. what does the insured need to transfer the policy?
the written consent of the insurer
when symbol 7 is provided which of the following statements is true with regards to newly acquired autos
they are covered if they are used to replace previously owned autos with that coverage
what is the purpose of the ordinance or law coverage endorsement
to remove the exclusion of losses resulting from ordinance or laws
what is the purpose of the ordinance or law coverage endorsement
to remove the exclusion of losses resulting from ordinances of laws
an insured covered under a mobile home policy wants to move the location of the covered mobile home. which of the following must the insured obtain from the insurer?
transportation/permission to move endorsement
an agent knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal act known as?
twisting
the ownership of a vessel insured by ocean marine insurance changes while the vessel is at sea. when will the hull policy terminate
upon the ships arrival at the final port
which of the following are not settled on actual cash value basis while covered under the business property coverage form
valuable papers and records
which of the following is NOT part of section2 of the boatowners policy
watercraft damage
under coverage C and at the request of an insured personal property of a guest or residence employee is covered
while it is at any residence premises occupied by an insured
If a car is stolen and left in a snow bank, causing the radiator to freeze and sustain heavy damage, is the damage covered by the auto policy?
yes freezing exclusion is removed if the car is stolen