sf exam
Collapse is not covered under which of the following property forms? A Commercial Basic Cause of Loss Form B DP-3 C Commercial Broad Cause of Loss Form D HO-2
Commercial Broad Cause of Loss Form
Any person acting as a producer without a license is guilty of:
Committing an unfair trade practice
Which of the following defenses against negligence reduces damages in proportion to the degree of negligence? A Assumption of Risk B Comparative Negligence C Statute of Limitation D Contributory Negligence
Comparative Negligence
Which of the following reduces an award in proportion to the amount of negligence? A Comparative risk B Contributory negligence C Contributory risk D Comparative negligence
Comparative negligence
Which of the following types of liability limits allow the most to be paid for a single occurrence without regard for the number of claimants? A Split Limits B Per Person Limit C Combined Single Limit D Comprehensive Limits
Comprehensive Limits
Under the Homeowners Forms, Coverage C includes which type of coverage?
Contents and Personal Property
When damages are reduced in proportion to the degree of negligence, this is an example of:
Contributory Negligence
Which of the following prevents recovery for injuries caused by a negligent party if the claimant was also negligent? A Gross negligence B Absolute liability C Contributory negligence D Comparative negligence
Contributory negligence
Damaged household and personal property in transit between the insured's old and new residences is covered by the Dwelling Policy under:
Coverage C-Coverage C is the coverage for Personal Property. 10% of the Coverage C limits apply to the Insured's Personal Property away from the premises anywhere in the world.
All of the following are sections of the Garage Coverage Form, except: A Physical Damage Insurance B Garagekeepers Insurance C Liability Insurance D Comprehensive Insurance
D. Comprehensive InsuranceComprehensive coverage is part of the Physical Damage coverage provided by Section IV. 10.7
All of the following about the CGL's products liability coverage are correct, except: A Coverage applies to bodily injury the product causes B Coverage applies to bodily injury occurring away from premises the insured owns or rents C Coverage applies to property damage the product causes D Damage to the product itself is covered
Damage to the product itself is covered
The part of a property policy that gives basic information such as the named insured, a description of the property, the location of the property, and the amount of premium involved, is known as the:
Declarations
The part of an insurance contract that varies with each individual policy, but is still a mandatory part of the policy, is the
Declarations
In use of credit information, an insurer offering personal property and casualty insurance may not:
Deny, cancel, or non-renew such policy solely because of credit information
Which of the following would be eligible for a Businessowners policy? A Credit Union B Go-Cart Racing Facility C RV Storage Facility D Funeral Home
RV Storage Facility
The respective minimum limits of liability under Uninsured and Underinsured Motorist must be at least:
$25,000, $50,000, $20,000
Driver D slid into another car causing an accident in which three people in the other car were injured. Two injured parties claimed $15,000 in medical expenses and the third person claimed $25,000. How much will D's insurance company pay if her policy has 25/50 limits for bodily injury?
$50k
Reasonable medical expenses incurred and reported within how many years following an accident are covered under Medical Payments coverage of the CGL?
1
How many days may a producer hold a premium before depositing it into a premium fund trust account?
15
Underinsured motorist insurance must provide policy limits of at least:
25/50/25
In the event an apartment attached to the insured's home is damaged and unlivable, what percentage of Coverage A does the HO-3 provide for the rental value?
30%
Transportation Expenses coverage under the Personal Auto Policy begins how long after a covered auto has been stolen?
48 hours
An auto policy that has been in force for 5 or more years may be nonrenewed for the same reasons as for cancellation as long as the insurer provides how many days' notice?
60
The Crime Coverage Form offers how many optional insuring agreements?
8
All of the following would be included in the definition of 'insured location', except: A A summer vacation home rented by the insured B A 5-family dwelling in which the insured lives in one of the units, including the structures and grounds C Land upon which a 4-family dwelling is being built as a residence for the named insured D A boat slip used by the named insured
A boat slip used by the named insured
Which of the following vehicles IS covered under Part B - Medical Payments of the PAP? A 3-wheel vehicle used off-road B A van used as a residence C A car used to carpool with colleagues D A company car issued to a family member
A car used to carpool with colleagues
Which vehicle would not be eligible for a Business Auto Coverage Form? A A van that is used by a delivery firm B A private passenger auto that is used in the business C A forklift used in the business D A trailer that is used to carry a backhoe
A forklift used in the business
Which of the following statements is true? A A policy of fire and extended coverage insurance may not be cancelled without allowing the insured up to 90 days to make repairs sufficient to continue coverage B An insurer may cancel or nonrenew an automobile policy due the fact that an agent or broker is not located in geographical proximity to the applicant C A personal policy may not be canceled or nonrenewed based on credit information D An insurer may nonrenew or cancel a policy on a day care home on the basis that the insured operates a licensed day care home on the insured premises
A policy of fire and extended coverage insurance may not be cancelled without allowing the insured up to 90 days to make repairs sufficient to continue coverage
Under Section II of the Homeowners Policy, an employee whose duties are related to the maintenance or use of the residence premises, is defined as:
A residence employee - 'Residence employee' means any employee of an insured, whose duties are related to the maintenance or use of the residence premises. These duties include household and domestic services, such as those of a gardener or nanny. The definition also includes a person who performs similar duties elsewhere that are not related to any business of the insured, such as a person hired to paint the insured's house, as so long as the insured doesn't own a business that paints houses.
Which of the following best describes a surplus lines broker? A A surplus lines broker deals with admitted carriers only B A surplus lines broker deals with direct writing companies only C A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers D A surplus lines broker accepts business only from non-resident agents
A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers
Which of the following is not eligible for coverage under the Personal Auto Policy? A van weighing 5,200 pounds B A vehicle with fewer than four wheels C A pickup D A vehicle being used in a share-the-expense carpool
A van weighing 5,200 pounds
Under a policy with limits of 25/50/10, what would be the insurer's liability arising out of a single accident where claimant A has injuries in the amount of $25,000; claimant B, $20,500; and claimant C $4,000?
A)$49,500-The policy would pay up to the BI limit of $25,000 for A; $20,500 for B; and $4,000 for C. $25,000 + $20,500 + $4,000 = $49,500.
Under the Building and Personal Property Coverage Form, when is abandonment allowed?
Abandonment is never allowed
Under the Basic Dwelling Form, losses are paid on which basis?
Actual Cash Value
Under the BOP, the additional coverage for preservation of property is covered in which of the following ways? A Against open perils for 30 days B Against the broad perils for 30 days C Against open for 60 days D Against the broad perils for 60 days
Against open perils for 30 days
The maximum amount payable for all losses within a policy period is known as the:
Aggregate limit
Which of the following is an example of vicarious liability?
An employer's liability for the acts of an employee
An insurance company may refuse to issue, renew, or to cancel a policy for which of the following reasons? A The applicant is eligible for placement under the Illinois Automobile Insurance Plan B The insured or applicant was previously refused issuance or renewal by another insurer C An insured filed a false claim D An agent is not located in geographical proximity to the residence of an applicant for auto Insurance
An insured filed a false claim
Which of the following statements is false with regard to Mine Subsidence Coverage? A Mine subsidence coverage may be applied to buildings, service structures and septic systems B All property policies in Illinois must cover mine subsidence unless exempt or waived by the insured C An insured may always waive mine subsidence coverage D Structures with unrepaired mine subsidence damage may be deemed uninsurable until the damage is repaired
An insured may always waive mine subsidence coverage idk
If a fire burns the home and property of an insured, what must the insured provide?
An inventory of the damaged property
If the insured and insurer do not agree on the value of a property loss, what condition would apply?
Appraisal
Under the HO-4 and HO-6, personal property is covered on which basis?
Basic perils coverage
Under the Garage Coverage Form, covered autos are usually written on which of the following basis?
Blanket
Which of the following is not one of the limits of liability provided by the CGL? A Medical expense limit B Bodily injury limit C Personal and advertising injury limit D General aggregate limit
Bodily injury limit
All of the following are true of the Dwelling Special Form, except: A Mobile homes are not eligible B The dwelling must be used principally for residential dwelling purposes C Both the dwelling and contents are covered on an open perils basis D Losses to the dwelling are paid on a replacement cost basis
Both the dwelling and contents are covered on an open perils basis
All of the following types of property may be covered by a Personal Articles Floater, except: a Stamps B Golf equipment C Jewelry D Buildings
Buildings
Which of the following is covered as business personal property under the BOP? A Outdoor furniture B Carpeting C Permanently installed machinery D Built-in bookcases installed by a tenant
Built-in bookcases installed by a tenant
Which of the following is true regarding the Business Auto Coverage Form? Non-owned Autos Coverage covers rental private passenger type vehicles B Non-owned Autos Coverage covers autos leased for a term of 12 months or more by the insured C The main distinction between a hired auto and a non-owned auto is whether or not the auto is owned by an employee D Non-owned Autos Coverage covers autos hired for specific purposes by the insured
C The main distinction between a hired auto and a non-owned auto is whether or not the auto is owned by an employee The primary use of Symbol 9, Non-owned Autos Only Coverage is to protect the insured when employees use their autos in the insured's business, but are not paid to do so.
A loss caused by which of the following would be covered under a BOP? A Mechanical breakdown B Increased cost of construction C Earth movement D Off-premises power failure
Earth movement
In which type of system does an employer have the choice to provide Workers' Compensation benefits at its own option?
Elective
Exclusive remedy means that
Employees covered by Workers' Compensation insurance cannot sue for work-related injury
Which of the following relationships involves vicarious liability? A Husband and wife B Wholesaler and retailer C Employer and employee D Teacher and student
Employer and employee
The Extra Expense Coverage Form covers:
Expense of removing the debris of a covered direct loss
Employers Liability Insurance is designed to do all of the following, except: A Extend policy benefits to states not listed on the Declarations page B Cover claims that are not subject to compensation laws C Fill in gaps of compensation coverage D Protect the employer against common law claims
Extend policy benefits to states not listed on the Declarations page
After being rejected by an insurer due to underwriting guidelines an applicant may request homeowners coverage under which of the following? FAIR Plan B Write Your Own Homeowners Program C An Umbrella policy D A DP-3 Special Dwelling Plan
FAIR plan
Which of the following property may be covered under a Building and Personal Property Coverage Form? A Grain stored inside a building B Vehicles licensed for road use C Personal property that is covered elsewhere D Personal property while waterborne
Grain stored inside a building
When filing a claim, the insured is required to do all of the following, except: A Cooperate with the insurance company B Hire an appraiser C Protect property from further damage D Give notice of loss as soon as possible
Hire an appraiser
When is a producer considered to be financing premiums?
If the producer accepts over 10% of total accounts in installments and any portion of the accounts is collected 90 days or more after the premium due date
The Illinois Automobile Insurance Plan provides auto coverage for:
Insurable individuals who reside in an underserved area
The rules and procedures to be followed by the insured and the insurer are found in which section of an insurance policy?
Insuring Agreement
Under Coverage A of a Dwelling Policy, all of the following are covered, except: A Land, including the land on which the dwelling is located B Outdoor equipment on the location used to service the dwelling C Fire or lightning damage to outdoor television antennas D Materials for repairing the dwelling, located on the described location
Land, including the land on which the dwelling is located
Which of the following is not covered under the Building and Personal Property Coverage Form? A Business personal property B Personal property of others C Liability D Buildings
Liability
Which clause broadens coverage of an existing policy with no increase in premium?
Liberalization
For a claim to be paid, insurable interest for a property or casualty contract must exist at the time of:
Loss
Which of the following clauses protects the interests of the loss payee? A Loss payable clause B Mortgagee clause C Loss settlement clause D Abandonment clause
Loss payable clause
Bodily injury liability coverage includes all of the following, except: A Breach of contract B Lost wages C Mental anguish D Medical bills
Lost wages
Which country is not included in the CGL coverage territory? A Puerto Rico B United States C Canada D Mexico
Mexico
Which provision stipulates that coverage will not benefit a party that is holding, storing, or moving insured property for a fee?
No Benefit to Bailee
After Company B's computer network is damaged during an intrusion by hackers, which coverage would indemnify the loss? Fund transfer fraud B No crime coverage is available for this loss C Computer fraud D Inside the premises: Robbery or safe burglary coverage
No crime coverage is available for this loss
A Businessowners policy would cover which of the following? A The insured is sued for injury to a competitor caused by one of their advertisements B One of the insured's employees is injured on the job C The insured signed a contract with a competitor agreeing not to advertise in that zip code D One of the insured's products was recalled due to a mechanical imperfection
One of the insured's products was recalled due to a mechanical imperfection
The Business Auto Coverage Form is intended for which of the following businesses? A Owned, leased, hired or borrowed private passenger autos, trucks, trailers and semi-trailers B Owned, leased, hired or borrowed private passenger autos only C Owned or hired trucks, trailers and semi-trailers only D Owned, leased, or hired trucks, trailers and semi-trailers only
Owned, leased, hired or borrowed private passenger autos, trucks, trailers and semi-trailers
Which of the following is not a Supplementary Payment under Part A of the Personal Auto Policy? A Reasonable expenses incurred at the insurer's request B Up to $250 for the cost of bail bonds C Payment for lost earnings up to $200/day D Medical payments for an occupant of an insured vehicle
Payment for lost earnings up to $200/day
The insuring agreement of a policy describes:
Perils that are covered
Liability coverage is designed to: A Permit the insured to countersue the insurer for losses not covered B Protect the insured from bodily injury and property damage they are legally obligated to pay C Protect an insured from being sued by an injured party D Cover injuries and damages caused by the insured's intentional and unintentional actions
Permit the insured to countersue the insurer for losses not covered
Hull insurance on an ocean marine policy covers the vessel for which of the following? A Cargo damage B Liability C Seaworthiness D Physical damage
Physical damage
What is the term for the first event in the unbroken chain of events, that resulted in a loss?
Proximate cause
Under the Workers' Compensation policy, vocational training benefits are a type of:
Rehabilitation benefit
What is the principle of liability that imposes legal liability for injury and damage by products?
Strict liability
Which of the following is not true about the Mine Subsidence Insurance Fund? A It consists of separate sub-funds for residential and commercial risks B Policy limits must be no less than $500,000 per residence C All insurers must enter into an agreement with the Fund D The Mine Subsidence Insurance Fund is a reinsurance fund
The Mine Subsidence Insurance Fund is a reinsurance fund
In Liability Insurance, which of the following is the maximum amount that the coverage will pay for loss to any one person regardless of overall policy limits? A The Per Person Limit B The Aggregate Limit C The Per Occurrence Limit D The Split Limit
The Per Person Limit
Which of the following is NOT true of an examination by the Director? A The Department of Insurance must pay the costs associated with an examination B The Director has the power to compel attendance by subpoena C The director may appoint other examiners to investigate on his behalf D Examinees have 10 days to request a hearing upon receipt of the Director's report
The director may appoint other examiners to investigate on his behalf idk
Which statement is not true of Temporary Total Disability? A Retroactive benefits will be paid if disability exceeds the waiting period B The length of the disability must exceed the waiting period C The employee can work while recovering D The employee is expected to return to work
The employee can work while recovering
An injury would not be covered by Workers' Compensation under which of the following circumstances? A worker is injured during assigned hours B The injury occurs while a worker is performing his work duties C The injury occurs on the way to work D The risk causing the injury is employment-related
The injury occurs on the way to work
the assignment provision requires that: A No requirements may be placed upon the insured without legal action B The naming of parties other than the insured on loss payment checks is prohibited C The insured may not transfer ownership of the policy without the insurer's written permission D The insured must give prompt notice to the company upon loss
The insured may not transfer ownership of the policy without the insurer's written permission
Which of the following best defines short rate cancellation? A The premium is fully earned by the insurance company B The insured will receive exactly half of the unearned premium C The insured will receive none of the unearned premium D The insured will receive less than the full amount of the unearned premium
The insured will receive less than the full amount of the unearned premium
Policyholder J has a no-fault auto policy. Upon being hit by a driver that ran a stop light, J suffers a broken leg. Whose insurance company will pay for J's injury?
The insurer of the at-fault driver
Which of the following is not true about an insurance policy? A The insuring agreement includes the name of the insured B An insurance policy that pays before all other coverage is called primary coverage C A deductible is a specified amount of loss that is retained by the insured D An application is a document that provides information for underwriting purposes
The insuring agreement includes the name of the insured
Which of the following property is not covered under Coverage A of a Dwelling Policy?
The land on which the dwelling is located
Choose the true statement regarding Out of State Coverage in the Personal Auto Policy. A The liability limits of the policy will be the lesser of home state coverage or the minimum liability requirement of the state in which the vehicle is being used B When being used in any state other than the one in which the vehicle is licensed, the liability limits are automatically the minimum financial responsibility limits of the state in which the vehicle is licensed C The limit of liability will be the same as the coverage provided in the home state or the minimum liability requirements in the state where the covered auto is being used, whichever is greater D The insured should be sure that the liability limits of the policy equal or exceed the minimum limits of the compulsory insurance or financial responsibility laws of any other state where the vehicle might travel
The limit of liability will be the same as the coverage provided in the home state or the minimum liability requirements in the state where the covered auto is being used, whichever is greater
Which of the following is not included in the Declarations of a Property Policy? A The perils that are not insured against B The amount of coverage C The expiration date of the policy D The amount of premium
The perils that are not insured against
All of the following must be listed on Form MCS-90, except: A The policy number and policy dates B The names of the motor carrier and the insurance company C The policy premium amount D The limits of liability provided by the policy
The policy premium amount
A nonresident producer may be licensed without taking a written exam if: A The producer has over 15 years experience in his/her home state B Less than 30% of the producer's business is written out of state C The producer's home state permits reciprocal non-resident licensing D The producer swears an oath to abide by the law.
The producer's home state permits reciprocal non-resident licensing
All of the following are true of Supplementary Payments under the CGL, except: A They pay defense costs incurred by the insurer B They apply to bodily injury and property damage liability C They include the cost of bail bonds up to $250 D They reduce the limits of insurance
They apply to bodily injury and property damage liability
The common policy declarations of the CPP contain all of the following, except: A Name and address of the named insured B Description of the business being insured C The policy period D Transfer of rights and duties
Transfer of rights and duties
What is the term for a dwelling that is uninhabited, but has household furniture inside?
Unoccupied
Which of the following constitutes the acceptance of an offer? A When the insurer makes a counteroffer B When the agent assures the applicant he or she will be covered C When the applicant completes the application D When an insurer issues a binder
When an insurer issues a binder
Which of the following best describes the reason to purchase an HO-8? When looking for a policy that covers the dwelling on an ACV basis B When insuring homes with a replacement cost exceeding $250,000 C When insuring homes namely located on farms D When insuring an older home that might create a moral hazard when insurance is written at replacement cost
When insuring an older home that might create a moral hazard when insurance is written at replacement cost
Which of the following is not an element of negligence? A Assumption of risk B Forseeable consequence C Duty owed D Proximate cause
duty owned
A manufacturer is held liable if a product caused an injury whether the product was or was not defective. This describes what type of liability?
strict
Which of the following is not covered under the Dwelling Broad Form (DP-2)? A Accidental discharge B Falling objects C Theft D Artificial electric current
theft
