Exam Practice questions 2

A participating insurance policy may do which of the following?

provide group coverage

Under workers compensation policy, premiums will be determined when

the policy period ends

Which of the following is covered under Coverage E- Schedule Farm Personal Property?

- Portable structures - Livestock - Farm machinery ** Excluded Turkeys while in the open**

All of the following statements about Medicare supplements insurance policies are correct

- The cover Medicare deductibles and copayments -The supplement Medicare benefits - They are issued by private insurers.

Which of the following would be eligible for coverage under a personal policy?

-A trailer owned by the insured -A vehicle listed on the declarations page -A nonowned temporary substitute vehicle

Which rider in a disability policy pays income during the waiting period before Social Security benefits can begin?

-Additional monthly benefit -This rider pays income benefits during the one year waiting period before Social Security disability benefits begin.

Which of the following would be considered an insurance producer?

-An insurance broker -A reinsurance intermediary -An insurance agent

The businessowners policy (BOP), extension coverage form for property off-premises is limited to

$10,000

What is the maximum amount an employers liability insurable policy would pay for the bodily injury of an employee in any one accident?

$100,000

Under coverage E- Scheduled Farm Personal Property, livestock that is not specifically insured is limited to a coverage limit of

$2,000 per head

If an individual willfully violates provisions of the Fair Credit Reporting Act, what is the maximum civil penalty?

$2,500

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

$5,000

Any NY agent that is found guilty of a violation of insurance licensing laws will be subject to which of the following penalties?

$500 fine for each violation

A transportation network company driver must maintain a primary automobile policy with minimum coverage of at least

$75,000/$150,000?$25,000

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

-Bodily injury caused by or aggravated by disease during the policy period. -Liability to a third party for claims arising out of injury to an employee -Bodily injury caused by accident when the injury occurs during the policy period

Which of the following would be covered by commercial inland marine policies?

-Bridges and tunnels -Commercial property floater risks -Loss caused by weather conditions. -Cover instruments of transportation and communications as well as movable property.

The equipment breakdown coverage form provides coverage for all of the following

-Expediting expenses following a covered loss. -Damage to the insured's property -Damage to property of others in the insured's care and custody.

Which of the following statements is true concerning a worker compensation and employers liability policy?

-Exposures in states listed on the information page are covered

All of the following are true regarding the Federal Fair Credit Reporting Act

-Insures are not required to give customers a copy of the report. -It applies to credit report reports ordered in connection with insurance, banking and employment. -The customer must be notified if adverse action is taken as a result of a report

All of the following are essential elements of a contract

-Legal purpose -Consideration -Competent parties

The deductible under earthquake coverage is stated as what?

-Percentage of loss -with min of $250 for HO'00 policies and $500 for HO'11 policies

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

-Personal property replacement cost -Home daycare coverage -Earthquake coverage.

Which of the following exposures is covered under the garage liability coverage form?

-Premises and operation liability -Products and completed operations liability. -Auto liability

Which of the following is a characteristic or a service of an HMO planst

-Providing care on an outpatient basis -Providing free annual checkups -Encouraging early treatment

Which of the following is found in the common policy declarations of a commercial package policy?

-Schedule of coverage parts -Amount of premium for each coverage part -Policy number

All of these types of property may be covered on a farm property coverage form

-Silos -Farm machinery -Barns ** crops is cover by crop insurance policy**

Which of the following is the benefits of a POS plan?

-The employees do not have to make a decision between the HMO or PPO plans that lock them into one plan - It allows the employee to use an HMO provided doctor - It allows the employee to use a doctor not covered under the HMO

A building insured with commercial property insurance has been vacant 90 days. Which of the following is true?

-The insured has no coverage for losses caused by theft -The insured has no coverage for losses caused by glass breakage -Payment for unnamed perils is reduced by 15%

NFIP flood insurance policies have a term period of

1 year

An agent's first-year commission CANNOT exceed what percentage of the renewal commission for servicing a Medicare Supplement policy in its second year?

200%

A businessowners policy is discontinued. For how long does the insurer have the right to examine and audit the insured's books and records?

3 years

For how long are producers required to keep records of producers compensation disclosures provided to the purchasers of insurance?

3 years

How many years from the cancellation or nonrenewal of a commercial policy may an insurer audit the books or records of the insured?

3 years

According to the conditions provision in a dwelling policy, upon request, the insurer will furnish the insured with a writer estimate of damages. This estimate will be provided within a certain number of days after the request or its preparation. How many days?

30

Unless an event is unforeseeable, how many days of advance notice must an employee provide an employer before taking Paid Family Leave?

30 days

If an insurer intends not to renew a commercial policy, how much notice must it give the policyholder?

45 days

Within how many days of cancellation of a claims-made policy may an insured request claim and occurrence information from the insurer?

60 days

What percentage of person's weekly wage will worker compensation benefits provide for loss of income?

66 2/3%

According to the Fair Credit reporting act, consumer reports are prohibited from reporting negative information about a customer after how many years?

7 years

In business income additional coverage in a businessowners policy (BOP), the waiting period that must occur before the period of restoration may begin in

72 hours

How long after the date of issue may an insurer cancel an accident and health policy?

90 days

Which of the following would qualify for C-MAP?

A 4-family owners-occupied dwelling located in a designated area

Which of the following would be eligible for Coverage F- Medical Payments in the event of injury at the insured's premises?

A full-time maid

Which of the following would be required to be licensed as an insurance producer?

A salaried employee who advertises and solicits insurance.

Which of the following would guarantee the performance of another person or entity?

A surety

Which of the following businessowner policy (BOP) endorsements provide coverage for the inability to collect monies due from customers as the result of a covered cause of loss?

Accounts receivable

In which Medicare supplemental policies are the core benefits found?

All plans

Which of the following actions would be considered an offer?

An applicant submitting the application

An agent accepts the premium payment 35 days after it is due, telling the insured that there will not be a problem keeping the policy in force. This is an example of what type of agent authority?

Apparent

If the compensation is authorized, it must be made in writing, including the amount of compensation and signed by the person to be charged. How long must a copy of this record to be kept?

At least 3 years

A driver who has an auto policy with limits of liability lower than required by state law would be considered

an uninsured motorist

HMOs operate on what basis?

Capitated

Which of the following would be an example of an insurer participating in the unfair trade practice of discrimination?

Charging the insured higher premiums based on their race.

What is the legal defense that can be used in most states in which proportionate damages may be awarded when both the plaintiff and defendant were negligent?

Comparative negligence

Limits of liability for a covered dwelling under construction are based on the

Completed value of the structure

What type of law require employers to provide workers compensation coverage to employees?

Compulsory

Which of the following exclusions would specifically fall under Coverage- E in Homeowners insurance?

Contractual liability

In a farm policy, which of the following coverages would reimburse the insured for loss of rental income following damage to the insured dwelling by an insured peril?

Coverage D

Other than perils, the difference in the three DP forms is in coverage provided. Which of the following coverage options is covered by the DP-2 and DP-3 but not DP-1?

Coverage E-Additional Living Expense

Making statements that are false, maliciously critical, and designed to injure and insurance person or business is known as

Defamation

Which of the commercial crime form would be triggered if a loss occurs during the policy period, but is not discovered until after the policy has been cancelled?

Discovery form

What is the goal of HMO?

Early detection through regular checkups

The commercial crime coverage that would cover losses resulting from the theft of money, securities and other property by employee is

Employee theft

What is the purpose of the coinsurance clause found in property insurance policies?

Encourage the insured to insure the property closer to its full value

Which of the following commercial forms would cover costs associated with a temporary worksite while damages to an office building are being repaired?

Extra expense

An applicant may challenge information discovered as a result of an investigative consumer report under which of the following Acts?

Fair Credit Reporting Act

Which Federal act provides benefits to injured civilians who are employed by the federal government?

Federal Employees Compensation Act

Which of the following damages is the most subjective when determining compensation?

General damages

Medicare supplement policies must contain which of the following renewability provisions?

Guaranteed renewable

Which of the following would be covered under the Garage Liability Coverage Form?

Insured's business premises

What does the Guaranty Association guard against?

Insurer insolvency

Which of the following insurers must be members of the New York Insurance Underwriting Association?

Insurers who transact fire and extended coverage insurance.

Which of the following is true regarding a risk retention group?

It is a liability insurance company owned by its members.

How does insurance distribute the financial consequences of individual losses?

It transfers the risk to all person insured

Insurance rates developed by the underwriter based on this skill and experience instead of actuarial analysis are known as

Judgment rates

The insured's house is located one mile from the county's new landfill and across the road from the entrance of a rock quarry. It would cost $150,000 to rebuild the house if something happened to it, but when the insured tried to sell it, the best offer he received was $80,000. The insurance company will insure the house for only $80,000. What method of valuation is used to insure this property?

Market value

An example of an alien insurer doing business in this state is one formed under the law of

Mexico

Which of the following is a statutory defense?

comparative negligence

Which of the following types of disability insurance plans will cover accidents that occur on or off the jobs?

Occupational

What kind of coverage does Form DP-3 provide?

Open peril (for structures insured under Coverage A and B)

Which of the following is consideration on the part of an insurer?

Paying a claim

Which of the following liability coverages must be added by endorsement to a homeowners policy in order to apply?

Personal Injury

The Individual Named Insured Endorsement offers liability coverage to the sold propriety of a business and his or her family members. Which coverage is also provided under the individual named insured endorsement of a commercial auto policy for owned passenger vehicles and nonowned autos?

Physical damage coverage

A licensed life agent policy that covers the life of his brother. Since the policyowner was related, the agent refunded the commission earned on this policy to the insured. This would be considered

Rebating

The equipment breakdown coverage form values loss on a /an

Replacement cost basis

Coverage B-Personal and Advertising Injury Liability responds to claims arising from

Suits alleging infringement of a copyright.

Which of the following acts protects consumer against the distribution of incorrect and obsolete personal or financial information?

The Fair Credit Reporting Act

The common policy condition is a modular part combined with other parts to create the contract. The common policy conditions section contains provisions that are applicable to all lines of coverage that may be included in the policy. Which of the following provisions would be found in the common policy condition section of the policy?

The first named insured may cancel the policy at any time by giving written notice to the insurer.

Although a businessowners policy (BOP) will cover fire damage legal liability, which of the following statements is true?

The general aggregate does not apply to the fire damage legal liability

A golfer slices a tee shot and the ball goes through the window of a house beside the fairway. The broken glass is paid for by

The golfer's homeowners liability coverages

If the premiums collected by an insurer participating in the WYO flood program are insufficient to cover losses, which of the following would be true?

The insure will be reimbursed for the excess costs by the NFIP

In health insurance, the length of the grace period varied according to

The mode of premium payment.

An individual purchased a Medicare supplement policy in March and decided to replace 2 months later. His history or coronary artery disease is considered a pre-existing condition. Which of the following is true?

The pre-existing condition waiting period fulfilled in the old policy will be transferred to the new policy. The new one picking up where the old one left off.

How does a member of an HMO see a specialist?

The primary care physician refers the member

What sublimit in a liability policy sets the maximum amount that will be paid for all claims arising from a single accident?

per occurrence

Which of the following refers to the upper limits of liability policy will pay out for all claims that arise from a single accident?

per occurrence

Rates for earthquake coverage in property policies are generally determined by which of the following?

The type of construction

A coverage extension under commercial crime policy may cover theft by employees outside of the coverage territory for

Up to 90 days

Which of the following causes of loss is covered under a commercial property basic form?

Volcanic erruption

Under Coverage C, and at the request of an insured, personal property of a guest or residence employee is covered

While it is in any residence premises occupied by an insured.