review

in Texas an insurance agent cannot give a gift valued at more than?

$25

if a crime policy includes the extended reporting period in a loss sustained form losses must be reported within what time period after the policy cancellation?

1 year

the broad theft coverage endorsement on the dwelling form specifies all of the following limitations except?

1,000 on silverware

an insurer has a personal umbrella with a 2000 self insured retention assuming no other policy is involved how much would the umbrella pay after a 12000 personal injury liability claim?

10,000

what is the maximum number if boarders per unit that would be allowed in the homeowners policy?

2

within how many years of a loss may an insured bring a lawsuit against an insurer according to the dwelling policy?

2 years

under business personal property - seasonal increase if no percentage is specified in the declarations seasonal fluctuations will automatically increase the limit for business personal property by?

25%

Coverage for water backup or sump pump overflow is excluded from the Dwelling Policy. However, with the purchase of the water backup and sump pump overflow endorsement, coverage for up to $5,000 in loss or damage can be provided for an additional premium. What is the deductible associated with this coverage?

250

a businessowners policy is discontinued. how long does the insurer have the right to examine and audit the insured's books and records?

3 years

a commercial property special form covers property in transit up to?

5,000

how many people must sustain death or serious physical injury before the war or terrorism exclusion in a businessowners policy applies?

50

an insured has 100/300 bodily injury coverage. he injures 3 and they were awarded 150,000, and 75,000, and 75,000 what amount if any was not covered by his insurance policy?

50,000

According to the Insured Duties after a Loss provision in homeowners policies, if the insurer requires a signed, sworn proof of loss, the insured must provide within how many days?

60 days

what is the maximum amount of time an insurer may delay payment of a claim without having to pay an additional interest?

60 days

an insured is the owner of a clothing boutique. at closing time a month ago she noticed that 3 expensive dresses had been stolen. however she did not report to her insurance company until recently how much will her insurer pay for this loss?

90%

Which would NOT be covered by the inside the premises - robbery or safe burglary of other property coverage?

An employee is caught stealing cash from the register.

which of the following dwelling policy forms primarily insures a structure on an actual cash value basis?

DP-1

Which of the following is NOT true concerning the fair rental value coverage provided in a dwelling policy

Loss or expense caused by the cancellation of a lease is covered.

Under Section I, homeowners insurance must include

Property Coverage

all authorized property and casualty insurers must be members of all of these organizations except?

Texas department of insurance

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

which of the following would be eligible for homeowners coverage f - medical payments in the event of injury at the insured's premise?

a full time maid

when insurance is written on a dwelling form which of the following types of property would be insured under coverage b (other structures)

a garage separated from the dwelling

in a personal auto policy a covered auto includes all of the following except?

a van used in the delivery business.

After a covered loss on a homeowners policy, the insured must do all of the following EXCEPT

abandon the property involved to the insurer

which of the following components is not part of a policy structure?

additional coverage

Under the Garment Contractor Floater of an Inland Marine policy, coverage while the property is in transit between the insured and the subcontractor is usually written on which basis?

all risk

which of the following is indicated on a certificate of insurance?

amounts and types of insurance

A house insured with a homeowners policy has been blown off its foundation by a tornado. It must be demolished and removed so a replacement house can be built. Which of the following is true about debris removal?

an additional 5% of the policy limit may be paid for debris removal

all of the following persons would be covered under a business auto policy excepet?

an employee of the named insured operating an auto that is owned by the employee's spouse

a general liability policy will respond to claims against an insured when bodily injury or property damage is caused by?

an insured's negligence

Which of the following is NOT covered under accounts receivable coverage form?

any loans required to offset uncollectible amounts

the transfer of a legal right or interest in an insurance policy is called?

assignment

If an insurer makes a change to broaden coverage in a dwelling policy while it is in effect, the changes will apply?

automatically

which of the following components is not part of a policy structure

benefits

in order to start coverage before a policy is issued insurers can issue a?

binder

An insured's limit of liability applies to a total of damages for bodily injury and property damage resulting from one accident, which may be used in any combination of amounts, not to exceed the single limit. What type of limit does this insured have?

combined single

a builders risk form is most often written as which of the following?

completed value form

An insured believes that his insurer is not properly fulfilling its obligations regarding his policy. What section of the policy will give the insured more information about specific duties of the insurer?

conditions

under which legal defense may a claimant's recovery be defeated if the defendant can show that claimant contributed no matter how slightly to the injury or damage?

contributory negligence

to be valid an insurance policy must have all of the following except?

countersignature

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 expense

in dwelling policies automatic increase in insurance is?

coverage by endorsement

the commercial property declarations page contains which of the following information?

description of the property insured

loss valuation is best described as the process of?

determining the premium charged and the amount of insurance required on a specific property

According to the appraisal condition of a homeowners policy, what procedure may be followed if the insurer and insured do not agree as to the size of a loss?

either party may make a written request for an appraisal

In addition to the common policy conditions, all of the following conditions apply to liability coverage EXCEPT

employers liability

An insured just purchased an auto policy for his new car. He wants to understand what perils are not insured against. Which section of his policy should the insured check?

exclusions

which of the following is covered under a dwelling policy?

fire caused by an earthquake

which of the following liability coverages in a general liability policy is not subject to the aggregate limit?

fire legal liability

Space Age Rockets makes model rocket supplies and has 12 employees. The company is located in Atlanta, GA. Georgia has compulsory workers compensation laws. Space Age's owner thinks that his company is too small and unprofitable to carry the workers comp plan mandated by the state. Possible consequences of noncompliance include all of the following EXCEPT:

forced payment of billing for services rendered by an private insurer that binds coverage based on an employee's request for coverage

which of the following is not covered by the condominium unit owners endorsement?

furniture in the building

which of the following terms describes a vehicle that has been leased or rented?

hired

under which of the following conditions can broad theft coverage be added to a dwelling policy?

if the insured is owner occupant of the dwelling

which of the following injuries may be covered under coverage c- medical payments of a commercial general liability policy?

injuries to a member of the general public that occurs on premises

Which of the following occupations would NOT directly help to qualify someone for the office of Commissioner of Insurance?

insurance agent

which of the following provisions is usually found in homeowners policies and provides a replacement cost settlement to policyholders who carry adequate insurance?

insurance to value

What part of the insurance contract describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured?

insuring agreement

a basic dwelling policy automatically provides coverage against fire, lightning, and?

internal explosion

which of the following statements concerning builders risk coverage form is correct?

it may be written on a reporting form for the completed value of the structure

How does insurance distribute the financial consequences of individual losses?

it transfers the risk to all persons injured

Most insurance policies exclude losses by

mysterious disappearance

which of the following terms means termination of an insurance policy at its expiration date by not offering a policy continuation replacement?

nonrenewal

which statement best describes agreement as it relates to insurance contracts?

one party accepts the exact terms of the other party's offer

Under a dwelling policy, which of the following clauses applies if an insured has lost one of two matching silver candlesticks?

pair or set

What sublimit in a liability policy sets the max amount that will be paid for all claims arising from a single accident?

per occurrence

in reference to insurable interest which of the following is not an element of insurable risk

personal

the garage coverage form is written to cover the insurance needs of an insured in the business of selling, repairing, servicing or storing auto's which of the following coverages are not included in a garage policy?

physical damage on a customer's auto

according to the insured duties after a loss provision in homeowners policies in the event of loss the insured must do all of the following except?

promptly hire an adjuster to evaluate the property damage

which of the following would not be covered by commercial inland marine policies?

property lost due to a military action

which type of damages is intended as a form of punishment for negligent, willful, or outrageous intent?

punitive

the equipment breakdown coverage from values loss on a / an

replacement cost basis

which of the following is not a classification of a hazard?

speculative

Coverage B - Personal and Advertising Injury Liability responds to claims arising from?

suits alleging infringement of a copyright

while digging the footings for the foundation the contractor struck a solid rock formation and found that was necessary to blast the formation in order to remove the rocks the force of the vlast broke several windows and some chinaware in a neighbors home several blocks away. who pays for this damage?

the contractor

the common policy condition is a modular part combined with other parts to create the contract the common policy condition section contains provisions that are applicable to all lines of coverage that may be included in the policy which of the following provisions would be found in the common policy condition section of the policy?

the first named insured may cancel the policy at any time by giving written notice to the insurer

An insurer filed a new policy form and endorsements with the Commissioner 60 days ago. The insurer has not heard back from the Commissioner. What can the insurer assume?

the form has been approved

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 golfer's homeowner's liability coverage

which of the following would not be covered by uninsured motorist coverage?

the insured causes a head on collision with the car of an uninsured motorist

in which of the following situations would off premises coverage in a broad theft endorsement of the insureds dwelling policy apply?

the insureds camera is stolen from his suitcase while he is on vacation

An insured's diner suffered a fire loss. In addition to the damage caused by the fire, the floor covering had to be replaced because of the water damage. It took 4 weeks for the repairs to be completed. The insured was without income for that period of time. The insured's policy includes both direct and indirect loss coverage. What part of the loss would be paid as indirect loss?

the loss of income for the time the diner was closed

which of the following statements regarding surety bonds is true?

the purpose of the surety bond is to guarantee that specific duties or obligations will be fulfilled

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

All of the following statements apply to temporary licenses EXCEPT

they allow licensees to sell new policies

which method of dealing with risk is applied when insurance is purchased?

transfer

the broad cause of loss form in the commercial property policy contains three perils in addition to the basic form perils which of the following is not one of those three perils?

utility services

both the broad theft and limited theft endorsements on the dwelling program exclude all of the following types of property except

watercraft

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