Stimulated Exam Q&As (my wrong answers)

which of the follwoing is NOT covered under workers compensation as a personal injury?

mental distress from being discharged unfairly

which policy consists of the declarations and conditions, endorsements, and other attachments applicable to a single line of insurance

monoline

which entity is in charge of granting producer licenses?

the commissioner of insurance

In insurance, an offer is usually made when

the completed application is submitted

The contents coverage on a homeowners policy would pay how much after the loss of one of a pair of golden candlesticks?

the difference in the actual cash value as a pair and as a single

all of the following are characteristics of the dwelling policy EXCEPT

the dwelling must be owner-occupied

an auto insured (a Connecticut resident) has purchased an auto policy with BI/PD limits of 100/300/50. which of the following statements is FALSE concerning UM/UIM coverage?

the insured may sign a waiver an opt out of uninsured motorist

all of the following statements are true regarding fire department service charge additional coverage under the businessowners policy EXCEPT

this coverage limit pays in place of the limit of insurance shown in the declarations

a commercial auto coverage form that is designed for insureds engaged in the business of transporting goods for others is a

truckers coverage form

a commercials auto coverage form that is designed for insured engaged in the business of transporting goods for others is a

truckers coverage form

If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?

unilateral

Farm policy Coverage B - Structures would pay how much for loss of an outside antenna, tower, or satellite dish?

up to $1000

which of the following is NOT settled on an actual cash values basis while covered under the business property coverage form?

valuable papers and records

A business owner has building and personal property policy that covers a shed in which he stores extra parts. If he buys a second shed for the same purposes, this will be automatically covered for how long?

30 days

How long is the waiting period after the application has been accepted before flood coverage goes into effect?

30 days

The dwelling insured on HO-2, HO-3, or HO-5 forms is covered for replacement, provided that it is insured for at least what percentage of replacement cost on the date of loss?

80%

The pro rata liability clause is designed to protect the principle of

Indemnity

When would uninsured motorist coverage apply?

When the other party is legally liable but has no insurance

With respect to auto insurance, the term owned autos includes all of the following EXCEPT

a pickup or van titled to and used in the named insured's business

coverage F (medical payments) under a homeowners policy would cover

a residence employee who is injured on the job

a businessowners policy is

a self-contained prepackaged policy

the designation symbols used in commercial auto policies can be foudn in which policy section?

covered auto

in a dwelling policy, which of the following is true regarding personal liability coverage

it must be added as a supplement or written as a separate policy

Dwelling coverage includes all of the following EXCEPT

land on which the dwelling is located

An insured's home is mortgaged by the local bank. The insured is required to carry insurance on the home, showing the bank as the mortgagee. If the home is damaged by a covered peril, which of the following is true?

losses will be paid to the mortgagee and mortgagor as their interest appears

homeowners policies provide coverage for

business property while on the residence premises.

what is the basic limit for costs incurred at the place a vehicle is disabled provided by the towing and labor costs endorsement?

$25

the businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period?

1 year

a check for premium funds collected by a producer to the insurance company bounces. as a result, the company must alert the commissioner within

15 days of the receipt return

Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages?

special

a property insurance policy that is not subject to any coinsurance requirements but has a set amount of insurance scheduled for the property would use what loss valuation method?

stated amount

which of the following symbols is available to an insured with vehicles subject to no-fault coverage?

symbol 5

which one of the following symbols used in business auto coverage is correctly described?

symbol 9- nonowned autos only

the maximum amount of coverage that may be written for one dwelling in the Connecticut FAIR program is

$350,000

a premium discount is the term that describes when an insured owes a total standard premium greater than

$5,000

a trucking company owns a large fleet of trucks that transport oil across state lines. according to the financial responsibility requirements set by the motor carrier act of 1980, wha tis the minimum amount of insurance the company must carry on vehicles that transport oil?

$1 million

Bob's home is insured for $100,000 under a dwelling policy. Yesterday his home suffered $20,000 damage from a fire. Today the home was struck by lightning, starting another fire that completely destroyed the structure. Bob's policy will pay

$100,000

an insured has a standard HO-4 policy with a $30,000 limit of coverage for personal property. While he was traveling, a fire in his hotel destroys clothes and luggage with a replacemnt value of $10,000 and jewelry with a replacement value of $10,000. Disregarding any deductible, and assuming a depreciation of 20% has occurred in both properties, what amount is the insurer obligated to pay?

$16,000

The insured purchased a $200,000 Extra Expense Policy. If the percentages applying to the limit of insurance are 40%, 80%, and 100%, what would be the maximum payable for a 47-day loss?

$160,000

Tom's Truck Service's vehicle is stolen. The policyholder may obtain coverage for transportation expenses subject to which of the following limits?

$20 per day; $600 maximum

The regulation of the insurance industry primarily rests with:

The State

The amount an insurer will pay under Coverage D (Loss of Use) depends on

The amount of coverage on the dwelling

Shipbuilders and repairer are covered by the

U.S. Longshore and Harbor Workers Compensation Act

Uncle Billy's Burger Bar was forced to close for 10 days in August when the power company's transformer was destroyed by lightning, and Uncle Billy was without electricity. Which of the following endorsements could be added to Billy's businessowners policy that would provide protection against loss of income from such events?

Utility services - time element endorsement

which of the following is the closest term to an authorized insurer?

admitted

which of the following employers may choose to not comply with the workers compensation statutes of Connecticut?

an employer with 1 part-time maid

employers liability insurance, Part Two of a standard workers compensation and employers liability (WC&EL) policy form, excludes

an intentional act that is caused by the insured

which of the following types of agent authority is also called "perceived authority"?

apparent

how often must the commissioner examine all insurers to guard against insurance company insolvency?

as often as the commissioner deems necessary

which inland marine for, would provide the best protection for a dry cleaning company against loss or damage to their customer's property while the care, custody, and control of the dry cleaners?

bailee's customer polciy

under the HO-4 and HO-6 homeowners policy forms, property is insured against

broad form perils

in order for an insurance to legally transact insurance, it must obtain which of the following?

certificate of authority

which of the following risks is eligible for coverage under a business owners policy?

condominiums

An insured's business is damaged because of a fire, and he is forced to close the business temporarily for repairs. As a result, the insured lost income. What type of loss is this?

consequential

the difference in the contents coverage on an HO-3 and HO-5 is which of the following?

contents are covered open peril on HO-5, and named peril on HO-3

which of the following is NOT covered under the utility services - time element endorsement?

damage to the insured's property caused by utility service disruption

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

description of the property insured

States with monopolistic state workers compensation funds

do not allow private insurers to be license to write workers compensation coverage

An employee drives a company auto, but does not own a vehicle herself. What endorsement could be added to the insurance policy covering the company auto that would provide coverage to the employee when she drives someone else's car for her personal use?

drive other car coverage

all of the following are optional coverages that may be attached to an HO-3 policy EXCEPT

dwelling replacement cost

compared with other drivers in his age group, a driver has had more minor accidents and traffice violations. which of the following rating types would most accurately reflect the driver's true insurance risk?

experience

all of the following are excluded in the equipment breakdown basic policy EXCEPT

explosion of steam boilers

which of the following is a unit of measurement an underwriter uses when determining the premium rates for insurance?

exposure

expenses that an organization would not have incurred if business interruption had not exited are known as

extra expenses

the voluntary compensation endorsement provides statutory coverage for which types of employees?

farmworkers

the homeowners policy covers collapse caused by all of the following EXCEPT

foundation cracks

a person who wants to apply for a nonresident license in Connecticut must first

have a resident license in his or her state of residence

an insured is involved in an auto accident in another state. the state has a financial rsponsibilty law that specifies limits of liability higher than the limits shown in the declarations. What amount will the insure'd policy pay?

higher limits

CGL Coverage B (Personal and Advertising Injury) will cover

inadvertent injury to others caused in the course of advertising the insure'd product

all of the following are conditions commonly found in the insurance policy EXCEPT

insuring agreement

an insured owns and operates a commercial business. he has included a business income coverage form with his commerical package policy. when the insured's business is severely damaged by fire, the business income coverage will pay for

net income plus continuing expense of the business

which of the following terms refers to other insurance that is written on the same risk, but not on the same coverage basis?

nonconcurrency

the HO-3 homeowners policy provides

open peril coverage on the dwelling and broad form coverage on personal property

all of the following are additional liability coverages automatically provided in a homeowners policy EXCEPT

personal injury

which of the following would be a lawful reason for the commissioner to suspend a produce's license?

producer failed to pay child support

which of the following would be the insured's duty in the event of a loss according to the duties in event of occurrence, claim, or suit condition?

providing specific details regarding an occurrence

An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of

rebating

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 the loss for use in an investigation

what type of information would be found in a policy's insuring agreement?

renewal dates

which of the following accurately describes constructive total loss?

repair to damaged vehicle exceeds value of vehicle

all of the following are factors in rating workers compensation insurance EXCEPT

sales

workers compensation statutes require employers to meet capital reserves requirement sufficient to pay any claims that might arise. Employers can meet such obligations through all of the following EXCEPT

second injury funds programs

in a personal umbrella policy, the amount paid by the insured for certain losses not covered under the primary coverages is called

self-insured retention

is it ever possible for more than one producer to split the commissions on a case in this state?

yes, it is possible as long as both are license for that line of business

A business hosted an annual holiday party for employees and customers, after which a customer who had too much to drink was involved in an automobile accident. Occupants of the other car involved in the accident sued the business for serving the customer too much alcohol. Will the businessowners policy provide coverage?

yes, none of the exclusions will apply