Sim XV

A premium discount is the term that describes when an insured owes a total standard premium greater than a)$5,000. b)$10,000. c)$15,000. d)$1,000.

a) $5,000

Under Coverage C of a farm policy, what is the limit payable on business property located away from the premises? a)$500 b)$1,000 c)$100 d)$250

a) $500

Which of the following other coverages is NOT included in the basic form dwelling policy? a)Breakage of glass b)Removal coverage c)Personal property temporarily away from the insured premises d)Tenant's improvements, alterations, and additions

a) Breakage of glass

Which of the following covers a carrier for liability for loss to cargo while it is being transported in a truck? a)Motor truck cargo policy - truckers form b)Motor truck cargo policy - owners form c)Trip transit policy d)Truckers coverage form

a) Motor truck cargo policy - truckers form

The livestock coverage form covers which of the following losses? a)Named peril coverage for death of livestock b)Sheep died after an attack by the family dog c)A cow died after it ran into a moving tractor d)All risk coverage for death of livestock by any cause except those excluded

a) Named peril coverage for death of livestock

If a person is using an auto with the belief that he is entitled to do so, subrogation rights under a personal auto policy would apply to all coverages EXCEPT a)Physical damage. b)Uninsured motorist. c)No-fault medical payments. d)Liability.

a) Physical damage

Under the business auto coverage form, mobile equipment is covered for liability insurance a)When being carried or towed by a covered auto. b)On an excess basis. c)When listed on the declarations. d)When coverage is written as Symbol 1.

a) When being carried or towed by a covered auto

A pizza shop has a neon sign attached to its building. During a severe thunderstorm, the sign is damaged by wind and hail. What is the maximum amount the business's building and personal property policy will pay for the damage to the sign? a)$1,000 b)$2,500 c)$5,000 d)$500

b) $2,500

On a DP-3 Dwelling Property Special Form policy, the coverage provided for personal property is a)The same as provided on the DP-1 Basic Form. b)The same as provided on the DP-2 Broad Form. c)All risk. d)Open peril.

b) The same as provided on the DP-2 Broad Form

Which of the following best describes the amount of loss assessment coverage included under a homeowners policy liability coverage section? a)Up to $5,000 aggregate for the policy period b)Up to $1,000 per occurrence c)Up to $2,500 per occurrence d)Up to $10,000 aggregate for the policy period

b) Up to $1,000 per occurrence

In Maryland, how long is the Commissioner's term in office? a)2 years b)3 years c)4 years d)Indefinitely

c) 4 years

Which of the following other coverages is NOT included in the basic form dwelling policy? a)Personal property temporarily away from the insured premises b)Tenant's improvements, alterations, and additions c)Breakage of glass d)Removal coverage

c) Breakage of glass

All of the following coverages are available to insureds through the Maryland Auto Insurance Fund EXCEPT a)Underinsured Motorists Coverage. b)Personal Injury Protection. c)Guaranteed replacement cost. d)Bodily Injury and Property Damage Liability.

c) Guaranteed replacement cost

The part of the insurance contract that describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured is called the a)Exclusions. b)Declarations. c)Insuring agreement. d)Conditions.

c) Insuring agreement

Which method of loss valuation is contrary to the basic concept of indemnity? a)Market value b)Agreed value c)Replacement cost d)Functional replacement cost

c) Replacement cost

The abandonment provision in property insurance policies states that a)The insurer may take all or any part of lost or damaged property at an agreed or appraised value. b)The legal rights in the insured property may be transferred. c)The insured may not relinquish ownership of damaged property to claim a total loss, but must protect damaged property from further loss. d)The insurance is for the benefit of the insured, and not for someone else who has temporary custody of the insured property.

c) The insured may not relinquish ownership of damaged property to claim a total loss, but must protect damaged property from further loss

The minimum medical, hospital, and disability benefit, for medical expenses incurred within 3 years of the date of the accident, provided by a vehicle liability insurance policy is a)$5,000. b)$1,000. c)$2,000. d)$2,500.

d) $2,000

What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act? a)$1,000 b)$100 per violation c)Revocation of license d)$2,500

d) $2,500

Which of the following best describes a misrepresentation? a)Making a deceptive or untrue statement about a person engaged in the insurance business b)Making a maliciously critical statement that is intended to injure another person c)Discriminating among individuals of the same insuring class d)Issuing sales material with exaggerated statements about policy benefits

d) Issuing sales material with exaggerated statements about policy benefits

When a regular bill of lading is issued, who will be responsible for the invoice cost of any damaged property? a)The person to whom the goods are being shipped b)The shipper c)The driver of the truck d)The carrier

d) The carrier

In forming an insurance contract, when does acceptance usually occur? a)When an insurer delivers the policy b)When an insurer receives an application c)When an insured submits an application d)When an insurer's underwriter approves coverage

d) When an insurer's underwriter approves coverage