CASUALTY PRACTICE
Theft coverage under an HO-8 is restricted to
The actual cash value of what was stolen, with limits for certain classes of property.
the pollutant cleanup and removal coverage in the businessowners policy has a limit of
$10000 in any 12 month period
an insured is in his garage with his two friends when some shelving loaded with heavy objects collapses and falls on them. all three of them are experiencing back pain, so they go to an emergency room where MRIs are performed at a cost of $750 each. how much will the medical expense coverage of the insured's dwelling policy pay for these costs?
$1500
A policyholder has an equipment breakdown policy with a $200,000 limit. If a boiler explosion causes $100,000 damage to the boiler itself, $50,000 damage to the insured's building, and $30,000 of expediting expenses, how much will the insured collect under the policy?
$175000
a commercial property special form covers property in transit up to
$5000
what is the minimum amount of coverage that should be carried on an HO-2 on a home that was purchased four years ago for $75000, which today has a replacement value of $100000?
$80000
Within the first 60 days of coverage under a dwelling policy, how much notice is required for the cancellation of a policy?
10 days
if the commissioner is scheduling a hearing for a potential violation of the insurance code, what is the minimum required notice?
10 days
a man sustained multiple fractures from an auto accident in which the operator of the other vehicle cannot be identified. the man notified the police as required, as well as the insurance company of the time, date, and place of the injury. the insurance company must mail the required forms of completion within how many days following the notification of the accident?
15 days
when an insurer makes changes to premium rates, the insurer must notify policy owners within how many days of the change?
15 days
coverage for medical payments under a personal auto policy applies to expenses following a covered accident that are incurred and services rendered within what maximum time period?
3 years
An insured with a Homeowners policy has removed property from the insured location to protect it from loss that could be caused by a covered peril. The removal coverage applies for how many days?
30 days
after appointing an agent, how long does an insurer have to file with the commissioner the form detailing the agent's name, address, and other needed information?
30 days
the removal coverage included in the broad form dwelling policy will cover property temporarily removed from the premises to protect it from damage for how long?
30 days
under the additional coverages of a businessowners policy, property removed to protect it from loss will be covered at another location for up to
30 days
removal coverage under a standard fire policy remains in effect for
5 days
the commissioner must examine every domestic insurer at least once every
5 years
Under Coverage C of a homeowners policy, the amount of insurance provided to cover personal property of the insured is
50% of the amount provided as coverage A
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%
Elaborate homes and those with detailed designs or decorative architecture with replacement costs greater than ACV or market value are insured on
HO-8
which of the following losses would NOT be covered by a homeowners policy?
a coin collection valued at $500 lost in a fire
termination of insurance coverage under NC motor reinsurance facility is allowed for which of the following?
all are reasons for termination coverage
all of the following statements are true regarding the relationship among the amounts of insurance EXCEPT
all property losses under the basic form are settled on a replacement cost basis
which of the following acts would be ground for a person's license suspension, revocation, or refusal to renew?
an agent fails to pay state income tax
which of the following risks would NOT be eligible for coverage under a homeowners policy?
an applicant who owns and lives on a commercial farm
which of the following would be considered an insured under a business auto coverage form?
anyone while using, with permission. a covered auto owned by the name insured
the insured's mother-in-law broke her leg falling down the front steps of the insured's premises. the insured's homeowners medical payments coverage will
apply to injuries of any guests or visitors
first aid costs for others injured on the insured's premises
are paid in addition to the liability limit
every insurer who writes essential property insurance in this state must be a member of the North Carolina Insurance Underwriting association
as a condition of its authority to continue to transact business of insurance in NC
every insurer who writes essential property insurance in this state must be a member of the North Carolina Insurance Underwriting Association
as a condition of its authority to continue to transact the business of insurance in North Carolina
the commissioner reports any violations of insurance laws and regulations to the
attorney general
which of the following other coverages is NOT included in the basic form dwelling policy?
breakage of glass
which of the following endorsements under a boiler and machinery policy is used for calculating the amount to be paid on a lost business claim after a direct loss?
business income - report of values
which employee fidelity bond pays no more than its limit of liability for each separate occurrence no matter that several separately identifiable employees were involved in a single loss?
commercial blanket position
all of the following are supplementary payments found in liability policies EXCEPT
costs the insured incurred in hiring an attorney
which of the following statements is true concerning the special form dwelling policy?
coverage A is for all-risk perils, and coverage C is for the broad form perils
which of the following dwelling coverages would provide coverage to a garage not attached to the primary insured dwelling?
coverage B
which of the following property coverages would provide protection to contents damaged by fire?
coverage C
in a dwelling policy, which of the following provides coverage for additional living expenses incurred by an owner-occupant in the event a covered peril makes the premises inhabitable due to a covered loss?
coverage E
additional coverages in the liability section of the homeowners policy cover all of the following EXCEPT
damage to a third party property for which the insured is legally liable
which of the following examples of losses paid under an HO-3 also would be paid under an HO-2 homeowners policy?
damage to the dwelling caused by lava or dust from a volcanic eruption
employers liability coverage under a workers compensation policy EXCLUDES all of the following EXCEPT
damages claimed by third parties
an insurance institution or agent that discloses information in violation of the information privacy and disclosure statutes of North Carolina will be liable for
damages sustained by the individual to whom the information relates
two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. what is this called?
discrimination
the american institute's hull clause for the return of premium will apply if a vessel has been laid up in port not under repair, and not used for storage. the premium will be returned for
each 30 day period
Circulating deceptive sales material to the public is what type of Unfair Trade Practice?
false advertising
in NC, a person who violates the law for False Pretenses and Cheats may be found guilty of a/an
felony
Bonds for administrators and trustees are examples of
fiduciary bonds
when an insurer requires a written proof of loss after notice of such loss has been given by the insured or beneficiary, the company must
furnish a blank form to be used for that purpose
which of the following is NOT true if ownership changes, voluntary or otherwise?
if the vessel already has sailed from her loading port, automatic termination may be deferred until 15 days after arrival at final port of discharge
in liability insurance policies, supplementary payments are made
in addition to the limit of liability
the term "essential insurance coverage" as defined by the North Carolina Insurance Association refers to
insurance against direct loss to property as defined in the standard statutory fire policy and extended coverage, vandalism and malicious mischief endorsements
which of the following additional perils is covered under both the basic form and broad form dwelling policies?
internal explosion
when is liability coverage included in a homeowners policy?
it is included automatically
which of the following types of property would be covered in homeowners coverage forms?
landlord furnishings in an on-premises apartment
Under the dwelling policy, Coverage C - Personal Property is
limited to covering a servant's property while at the insured location
under the dwelling policy, coverage c - personal property is
limited to covering a servant's property while at the insured location
Employee fidelity may be written in all the following ways EXCEPT
location schedule
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
which of the following is NOT a duty of the employer/insured if an injury occurs at the workplace?
make voluntary payments for treatment of the worker's injury
which of the following coverages is included in an unendorsed homeowners policy?
medical payment to others
on its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. the company is guilty of
misrepresentation
which of the following forms would insure cargo for a business using its own trucks to move its own cargo?
motor truck cargo - owners form
an insured has a personal property replacement cost endorsement under her homeowners policy. if an expensive painting an an antique chair are stolen from the insured's home, what will the insured receive on the claim under that endorsement?
nothing
workers compensation benefits are provided for an employee injury or death that arises out of the course of normal employment in all of the following situations EXCEPT
on his evening stroll, an employee of an advertising company is injured while watching a competitor
all of the following are options of the insurer in the loss settlement of a standard fire policy EXCEPT
pay replacement cost value
a bond is written for a set limit, and the surety will be liable only for this amount of the limit. this limit is known as the
penalty
which of the following homeowners endorsements covers liability exposures arising form an incidental business conducted within a building on a residence premises?
permitted incidental occupancies
what type of coverage is coverage E in homeowners policies?
personal liability
eligibility requirements for obtaining property coverage in the FAIR plan include all of the following EXCEPT
property at risk must be owner occupied
under the personal auto policy, liability for bodily injury resulting from the insured's use of a nonowned automobile is
provided by the insured's policy on an excess basis
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
all of the following are true regarding rebates EXCEPT
rebates are allowed if its in the best interest of the client
an agent in ohio wants to become an agent in North Carolina. the commissioner will waive certain examination requirements, provided that ohio would waive these same requirements if a NC agent sought licensure in ohio. what term does this describe?
reciprocity
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
in a dwelling policy, which of the following other structures would be covered?
rented to a neighbor for use as a private garage
which of the following perils is covered by the HO-2 and HO-3?
sudden and accidental rupture of a heating system
which one of the following symbols used in business auto coverage is correctly described?
symbol 9 - nonowned autos only
an apartment occupant's personal property would be insured under which homeowners form?
tenant broad form (HO-4)
all of the following people would be considered insureds under the liability section of a homeowners policy EXCEPT
the 22 year old niece of the insured who is visiting
surety bonds are written for a definite limit called
the bond penalty
the occurrence form trigger is based on which of the following?
the date when injury or damage occurs
the contents coverage of a homeowners policy would pay how much after the loss of one 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
Under the workers compensation system, who is responsible for the expenses resulting from work-related injuries and occupational diseases?
the employer, regardless of whether it was at fault for the injury or disease
under a businessowners policy, the inspections and surveys condition specifies all of the following EXCEPT
the insurer does not have the right to inspect the insured's property and operations
if more than one person has an insurable interest in the property covered under a dwelling policy
the insurer will be liable for only the insured's interest in the damaged property
if more than one person has an insurable interest in the property covered under a dwelling policy,
the insurer will be liable for only the insured's interest in the damaged property
The most the insurer will pay for a loss under a businessowners policy is
the limit of insurance after the deductible is paid
the most the insurer will pay for a loss under a businessowners policy is
the limit of insurance after the deductible is paid
according to businessowners policy section I, which of the following is NOT a condition to be met for the terms of the policy to apply to mortgageholders?
the mortgageholders must petition the state department of insurance for named status
which of the following claims does NOT fall under the scope of liability coverage of Section II of a homeowners policy?
the named insured is borrowing a friend's jacket which is later damaged
all of the following are other coverages included in both the broad and special form dwelling policy EXCEPT
theft of personal property
all of the following are true statements regarding the supplementary payments of a commercial general liability policy EXCEPT
they pay defense costs even after the aggregate limit has been reached
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
in an insured's neighborhood, individuals are required to pay the fire department if called to their premises. this insured has a homeowners policy. how much will the policy pay for those fire department service charges?
up to $500
supplementary payments on a CGL provide all of the following EXCEPT
up to $500 a day for lost earnings and $2000 for the cost of bail bonds
for how long can a commissioner issue a temporary insurance agent license?
up to 180 days
which of the following would NOT be considered part of the insured location under the liability section of a homeowners policy?
vacant farmland owned by the insured
an insurer or authorized representative of the insurer that terminates the appointment, employment, contract, or other insurance business relationship with an agent shall notify the commissioner
within 30 days after the effective date of the termination