SC Insurance
52. What is the maximum amount payable by The SC Wind and Hail Underwriting Association for personal losses'both direct and indirect combined?
1.3 million
Except for an auto policy, how much notice must an insurer give for a nonpayment cancellation?
10 days
South Carolina's cancellation, nonrenewal and renewal law states that when a policy, that is not an auto policy, is to be canceled by the insurer must notify the insured at least how many days for nonpayment and how many days for other than nonpayment?
10 days for nonpayment and 30 days for other than nonpayment.
A South Carolina P&C insurer can cancel without cause during the first how many days?
120
97. If a company cancels your automobile insurance, you and your attorney have how many days to file for an action to have the decision reviewed by the Director of Insurance?
15
Ann's car is stolen. She rents a car that day for $30 per day while her car is missing. She keeps the rental for 10 days until her car is returned. The transportation expense coverage on her Personal Auto Policy will pay how much?
160: The standard ISO policy pays up $20 per day for Transportation Expense. This coverage has a 48-hour time deductible for theft. ($20 per day X 10 days) ' ($20 X 2 days) = $160
55. The choices for deductibles for an SC Wind and Hail Underwriting Association policy are which of the following?
2%, 3%, 4%, 5%, or 10%
When a producer's appointment is terminated due to criminal reasons they have how much time to respond to the Director with written comments?
30 day after receiving the original or additional notification
12. The insured with a Claims Made Commercial General Liability (CGL) may request claims and occurrence information by written request from the insurer at any time up to 60 days after the policy period ends. The insurer must provide this information
45 days
In SC if an insurer is nonrenewing a policy with a last day of coverage being Apr 30, how much advance notice is required?
60 days
south Carolina's cancellation, nonrenewal and renewal law states that a policy, that is not an auto policy, may be non-renewed at its expiration date by giving or mailing written notice to the insured and the agent of record. How much advanced notification must be given when the policy is to be non-renewed?
60 days if the non-renewal date is between November 1st and May 31st, and 90 days of the non-renewal date is between June 1st and October 31st.
How much advance notice is required from an insurer nonrenewing a policy with a last day of Aug 30
90 days
CGL coverage A, Bodily Injury and Property Damage, covers which of these?
A customer hurt when an employee ran over him with a forklift
. Which of the following is eligible to receive Personal Liability Medical Payments in the event of injury at the insured's premises?
A full-time maid while cleaning your 2010 National Baseball Championship trophy: Medical Payments to Others (Med Pay) is not for those normally injured at the insured location except for a household employee not covered by workers compensation insurance. To be paid the expenses must be incurred within 3 years
. Which of the following is a correct definition of coinsurance?
A requirement that the insured carry insurance equal to a specified percentage of the property's value to qualify for replacement cost coverage under the policy:Coinsurance encourages insurance to value. If the insured insures for the proper percentage, the insurer will pay 100% of a covered partial loss up to the limit. In South Carolina the required percentage is 80%.
Which of the following applies to the Inspections and Surveys common policy condition ?
Allows the insurer to report findings and make recommendations
Your client, Bob, needs coverage for an unusual type. No admitted insurer will accept it and there is no residual market. You should refer bob to
An Excess and Surplus Lines Broker
What is underinsured?
As defined in the SC law, an uninsured motorist is: a vehicle with no auto liability policy, a policy provided by an insolvent insurer, unidentifiable hit and run driver, a policy with liability limits lower than those required by law, such as 15/30/10 instead of 25/50/25.
Judy owns a small beauty salon located on the first floor of her apartment building. A customer trips over a hair dryer cord in the salon and is injured. Judy is held legally liable for the customer's injury. What coverage under her business owners policy (BOP) will pay for this customer's injury claim?
Buisness liability claim
86. The insured with a Business Owners Policy has other insurance for some of their business personal property. If a covered loss happens
Business Owners Policy is always excess over any other collectable insurance that would provide coverage for the same loss
67. Professional photographers and musicians may insure their equipment with which of the following policy forms?
Commercial Articles form
2. The parts of a Commercial Package Policy (CPP) include which of the following?
Common policy deductibles
118. Two people have each been partly responsible for a loss. This is termed negligence and when the court decides to what degree each was at fault, this is negligence.
Contributory; comparative
For which reason(s) would there be no coverage if a building collapses?
Cracking, bulging, shrinking, settling
66. The unique thing about a Bailees' Customers form is that it covers which of the following?
Customer's property whether or not the insured has been negligent
. Which coverage form pays replacement cost for the dwelling
DP-2 and DP-3
Before a broker can look for a nonadmitted insurer for their customer, they must
Do a diligent search for an admitted insurer.
Which is an optional coverage for a Businessowners policy?
Employee dishonesty can be added as an optional coverage; money orders and counterfeit currency, fungi, and dependent location coverage are included as additional coverages.
An accountant who needs Liability coverage for his or her professional liability exposure for the advice he sells to others can obtain it by purchasing
Errors and Omissions insurance
Wanda is governed by the Health Insurance Portability and Accountability Act (HIPAA), which requires her to protect the privacy of the health information she's given by her clients and individuals applying for insurance. Which of the following types of property and casualty insurance is not subject to HIPAA?
Fire insurance
In which of the following circumstances will Hank's businessowners policy liability section cover property damage?
Fire or explosion damage to rented premise
An insurer may not nonrenew which policy for losses caused by acts of God?
Homeowners
20. Commercial General Liability Coverage B, Personal Injury and Advertising Injury will cover which of the following?
Inadvertent non-physical injury to others caused in the course of advertising the insured's product
To indicate coverage parts are included in a policy, what method is used on the Commercial Package Policy (CPP)?
Indicated on the declarations page with a premium amount shown* this question is worded to try and trick you
If the entire car were to be stolen and then recovered and it's determined the auto was damaged by freezing, normal wear and tear, road damage to tires, electrical breakdown or failure, or mechanical breakdown or failure while the thief had possession of the vehicle, the damage is covered.
Information
The businessowners policy covers personal and advertising injury committed by which of the following?
Insureds who assume contractual liability, but would have been liable even without a contract
62. Which of the following is an attempt to reduce risk?
John always drives at or below the posted speed limit:Driving below the limit lessens the chance of loss, so this is reduction.
When an insurer terminates the appointment of a producer he must do which of the following?
Notify the Director of Insurance within 30 days and notify the producer within 15 days after notifying the Director of Insurance
55. Which of the following statements best describes adverse selection?
Poor risks seek higher amounts of coverage
A bailment is created when
Property of one is accepted by another
19. A producer and non-resident producer have one thing in common
Represent the insurer
After an appointment is made by the insurance company, it must be renewed by what date?
September 30th of the Even-Numbered Years.
Under Coverage B -- Other Structures of the homeowners policy, which of the following structures are covered?
Structures rented to someone who is not a tenant for use only as a private garage
Supplementary payments include
Supplementary payments include investigation and defense costs (private investigator's fees, attorneys' fees, court costs, etc.), until the limit of insurance is exhausted, prejudgment interest on the covered portion of the judgment, and post judgment interest on the full amount of the judgment. Injuries covered for work-related injuries are not included in coverage for supplementary payments.
Which legislation prevents a financial institution from disclosing a consumer's nonpublic personal information to an unaffiliated third party unless it provides notice to the consumer and allows the consumer an opportunity to stop this disclosure?
The Gramm-Leach-Bliley Act (GLBA) bars a financial institution from disclosing a consumer's nonpublic personal information to an unaffiliated third party unless it provides notice to the consumer and allows the consumer an opportunity to prevent (or 'opt out' of) this disclosure.
61. Which is true of the Business Pursuits and the Permitted Incidental Occupancy endorsements
The Permitted Incidental Occupancy endorsement is liability coverage for allowable on premises businesses; the Business Pursuits endorsement is liability coverage for insured's exposure for businesses not owned or controlled by the insured away from home
arbitration
The South Carolina laws regarding the Arbitration is used when 2 insurers are in dispute about the settlement of a claim, there is no formal pleading, the claim must be filed in the court in the county where the claim arose, and the arbitrator /arbitration panel is appointed by the court. It is a non-binding process by law.
25. Which bond guarantees the successful bidder will enter a contract at the price bid and furnish a Performance Bond?
The bid bond's two promises are, if you choose me as the winner of the bid on the project, I will sign a contract at the price quoted in the bid and I will furnish a performance bond, which will guarantee I will perform as described in the contract.
14. The form of Commercial General Liability which covers claims for bodily injury and property damage for which claims are filed while the policy was in force no matter when the loss occurred (as long as on or after the retroactive date) is
The claims made form covers claims which are made during the policy period as long as the event happened on or after the retroactive date, an agreed upon first day of coverage.
16. Claims Made Commercial General Liability policies have a retroactive date. Which of these is the correct definition?
The first day any loss can occur and be covered by the Claims Made policy
BOP Additional Coverages
The four most popular optional coverages that can be added to the BOP are outdoor signs, mechanical breakdown, employee dishonesty, and money and securities.
Other than the insured a cancellation notice must be sent to
The mortgagee and the agent of record
101. Who is not an insured for liability on a Business Auto Policy?
The owner of a car the insured borrows
Vanessa borrowed her friend's pickup and crashed it into a brick wall, totaling it. When she submits a claim under her personal auto policy for the destroyed pickup, her insurer says it won't make payment until a condition is met. What is that condition?
The pickup truck owner's policy must pay
Some types of insurance are not generally available directly from private insurance carriers because of the unique nature of the risk to be insured, a catastrophic exposure or some other factor. However, the coverages are available through various government insurance programs, special insurance pools, and assigned risk plans. Collectively, these types of coverage are placed through what is known as:
The residual market
Under a surety bond, the party who is primarily liable is which of the following?
The surety: The Surety is the primary party that is liable should there be a loss or a payment requirement. This means they pay the loss, but then the principal pays the surety back
Which is true about the workers' compensation coverage of an employee who has been injured on the job and cannot work
There is a 7-day wait for disability payments; medical payments start immediately
When a party is dissatisfied with the decision of the arbitrator or the arbitration panel they may appeal. Which of the following is true?
They must appeal in 20 days and it must be a new trial.
13. Bill and Sue are insured with a dwelling property policy and wish to start a small manufacturing business and retail sales store for their products.
This would not be allowed: Service businesses are allowed. However, business that are not allowed are retail, wholesale, manufacturing, or auto based businesses.
41. Which communities may participate in the NFIP?
Those designated by the FIMA as having flood prone areas and agreeing to comply with the program standards.
. What is the Business Auto Coverage territory?
United States, U.S. territories, U.S. Possessions, Puerto Rico, and Canada
105. Jane's washing machine was destroyed when lightning hit her house. A new machine will cost $600. Her old machine cost $450 three years ago. ACV is $510. How much will her policy pay?
Unless otherwise stated, appliances are insured for Actual Cash Value (ACV); so Jane is paid $510.
The standard penalties available to the Director for an insurer are in the amounts of
Up to $15,000, or $30,000, if willful, suspend or revoke the license or both.
53. On Dwelling Policy forms and Homeowners Policy forms, the Coverage B - Other Structures limit may be paid how?
Up to the limit no matter how many structures are damaged
Heather's distraught next-door neighbor was holding his wife hostage at gunpoint. After several hours, the neighbor's husband still refused to free his wife. The sheriff's department ordered that tear gas canisters be fired into the house. The gas sparked a fire in the house and the sheriff ordered the fire department to contain the fire from spreading to other homes. Will Heather's dwelling policy cover the damage to her home from this fire containment action?
Yes, because a fire containment action ordered by a governmental authority is an exception to the governmental action exclusion.
7. ALL of the following are considered to be an insured for the Liability section of a homeowners policy except
a 23 year old resident exchange studen
A plaintiff bringing a case into court may be required to post which bond?
a cost bond
6. 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 by building
102. Which could not be covered on a Personal Auto Policy?
a moped and motor scooter:With a Miscellaneous Type Vehicle Auto Endorsement, motor homes, motorcycles, street-legal low- speed vehicles, such as golf carts, dune buggies, and other such vehicles may be added. Mopeds and motor scooters are not required to be registered as vehicles and do not require a driver's license.
101. Who has the right to request arbitration when there is disagreement as to responsibility or the amount of loss in a dispute between two insurers?
any parties to the dispute
The arbitration of property damage liability claims is for which type of policy or policies?
auto only
9. Personal Injury Liability (PIL) insures against claims arising from all the following except
bodily harm, Personal Injury Liability is intended to protect the insured against claim related Non-Physical injury. Bodily harm is physical injury and is not covered as a Personal Injury Liability (PIL) loss.
23. On a Homeowners form, which of the following is not a major (primary) property coverage?
collapse
109. Two policies are in force on the same property covering the same perils and there has been a loss caused by a covered peril. Each policy paid an equal amount to settle the claim. This is
contribution by equal shares:The other insurance condition which says each policy pays the same amount regardless of percentage of coverage as it relates to the total coverage in force is contribution by equal share
71. Willie's Dive shop business fills SCUBA diving tanks. What policy does he need to insure his unfilled tanks and compressors?
equipment breakdown
85. The limit of liability for Business Auto coverage may be paid
for each separate accident
55. The Collapse coverage on a HO policy will pay for collapse caused by which of the following?
hidden vermin damage: There is no collapse coverage for slow, gradual, preventable reason. The hidden vermin damage was unknown and could not be prevented.
61. A jeweler could cover his merchandise and the property of others in his care with which of the following forms?
jewelers block, Jeweler's block policies combine property coverage to protect jeweler for losses to his business property as well as bailee coverage to provide coverage for the property of customers he has in his custody, care and control.
23. If you are called upon to handle the estate of a deceased, the court may require you to post which type of bond?
judiciary
39. National Flood Insurance (NFIP) bought directly from the federal government has a Regular and an Emergency program. The Emergency program provides which of the following?
less coverage:The Emergency Program remains in place from the time of the community's application and until all program standards have been met. It provides a lower amount of maximum limits and higher deductibles than the Regular Program.
119. The clause in your property insurance policy that covers the interests of a secured lender in personal property is called:
loss payable clause: The lender of money for the purchase of personal property is the lien holder. The loss payee clause explains their rights.
13. For which insurers are producers allowed to write insurance?
only for those who have been appointed
27. Which surety bond guarantees the proper labor will be hired and paid, the proper materials will be used, and the job will be completed to specifications?
performance bond
The Smiths have two liability policies that each cover the same loss. Which other insurance condition is used if one of the policies pays nothing unless the other policy's limits have been exhausted?
primary/excess
116. The direct, unbroken, exact cause of a loss is called the cause.
proximate
What do deductibles and coinsurance have in common?
reduce premiums: Deductibles reduce premiums. The coinsurance requirements will also reduce the premium because the minimum amount of insurance on the property is 80% and the premium on 80% of the value is less than the premium for property insured at 100% of its value.
6. A condition of General Liability policies is that in the event of an occurrence which may lead to a claim or if a claim is filed the insured must do all except
report it to the police: It is not necessary or mandatory to report an accident or event to the police
Mr. Conrad lives on the second floor of a duplex he bought. What definition in his homeowners policy describes his home?
resident premises:On a homeowners policy, the definition 'residence premises' includes the two, three, or four-family dwelling in which the named insured lives in one of the units.
89. According to SC law, Other Than Collision (OTC or Comprehensive) deductibles do not apply to which of the following?
safety glass
75. Which one of the following would not be covered on a Farm policy?
sheep killed by wild dogs
If an insured cancels their policy, they are entitled to what type refund?
short rate of unearned premiums
51. The primary determining factor as to how much liability premium is due for a Home Day Care endorsement is
the number of children cared for and a fee is received for their care
Who decides which property is 'on the coast' and may be insured by the SCWHUA?
the s.c. general assembly
6. If the principal fails to complete the job on time, who pays the losses?
the surety, When the principal fails to perform as promised, the surety pays the obligee because of the broken promise.
1. Which of the following would the main difference between the Occurrence form and the Claims Made form?
the trigger, The main difference between Claims Made form and the Occurrence form is the trigger, that which makes the policy respond. A loss which occurred while the policy was in force no matter when the claim is filed is the Occurrence trigger. A claim being made while the policy is in force for a loss happening on or after the retroactive date is the Claims Made trigger.
Amy insures her insurance agency on a BOP. A customer trips over his own untied shoe laces and is injured in the lobby. Will Amy's BOP Medical Payments pay
yes, if reported within a year