ExamFX Property and Casualty
Discriminating in policy benefits based on the insured's habits and lifestyles.
All else being equal, which of the following will NOT be considered unfair discrimination by insurers?
Participating in controlled business
All of the following actions by a producer may be grounds for license revocation or non-renewal EXCEPT
Controlled Business
An insurance agent sold an insurance policy to his spouse, what type of transaction is this?
Open peril policy
An insurance policy that covers all risks of loss that are not specifically excluded is a(n)
Immediately
An insured has purchased a used car. When does collision coverage for this car begin?
Automobiles held for sale
Business personal property coverage form covers all of the following EXCEPT
Covered Auto
The designation symbols used in commercial auto policies can be found in which policy section?
Assignment
The transfer of a legal right or interest in an insurance policy.
Catastrophic
To be considered an insurable risk, a loss may NOT be
6 Stories
To be eligible for BOP coverage, an office building CANNOT be higher than...
The policy period ends
Under a worker compensation policy, premiums will be determined when
Builder risk
What commercial property form is used to insure buildings while under construction?
Who own the auto
What is the main distinction between a hired auto and a non-owned auto?
5
What is the maximum number of roomers or borders for the properties insured under the dwelling policy?
2
What is the maximum of boarders per unit that would be allowed in the homeowner policy?
Personal Liablity
What type of coverage is Coverage E in homeowners policies?
Additional Coverage
What type of coverages is Coverage E in homeowners policies?
They do not change
When a vehicle travels from one state to another, what happens to the limits of policy liability in a personal auto policy?
Insurer
When agents act within the scope of their contract, their actions will be assumed to be the acts of whom?
Funeral Home
Which of the following businesses would be eligible for a business owners policy?
Additional Living Expenses
Which of the following coverage is NOT included in the DP-1 form?
DP-2 and DP-3
Which of the following dwelling coverage forms would pay replacement cost for the dwelling?
Setting premium rates
Which of the following is NOT a duty of the Department of Insurance?
Bankruptcy
Which of the following is NOT one of the Other Coverages available with the personal liability supplement?
The application given to prospective insured
Which of the following is NOT the consideration in a policy?
Coverage D
Which of the following is the Fair Rental Value Coverage in the dwelling policy
Replacement cost
Which of the following is used to in the formula for calculating the actual cash value (ACV) of a property?
Sewer Backup
Which of the following would NOT be considered a flood?
Severability of Insurance
Which policy condition HO policies states that insurance applies separately to each insured?
Tenants
Who is covered by an HO-4 policy?
10 Days
Within the first 60 days of coverage under a dwelling policy, how much notice is required for the cancellation of a policy?
Stated-amount Insurance
Items of property that would be difficult to appraise after a loss are best insured with
Liability assumed under contract
Professional liability coverage protects the insured against legal liability resulting from
A self-contained pre-packaged policy
A business owner policy is
30,000
A liability policy has split limits of 25/50/30/. Which of the following indicates the maximum amount of payable for damage to a person's property.
Claims-made form
A policy that provides coverage for an injury or damage only if it is first reported during the policy period is called
Securities
According to the BOP definitions, which of the following does NOT mean valuable papers and records?
60 Days
According to the loss payment condition in HO policies, losses must be paid within how many days of the insurer receiving proof of loss?
HO-8 Form
Elaborate hommes with replacement costs greater than ACV or market value are insure on the:
Hazards
Events or conditions that increase the chances of an insured loss occurring are referred to as
Loss of use
Fair Rental Value Coverage in the dwelling policy is similar to which homeowners policy form?
The chance of loss
For the purposes of insurance, risk is defined as:
Outdoor signs attached to the building
For which of the following will be a BOP property coverage pay?
One indivisible premium
How is the premium for the business owners policy?
Part B: Medical Payments
If an insured is injured while driving his own car, what coverage in his personal auto policy will pay for the loss?
Part C
In a personal auto policy, which of the following describes coverage for uninsured motorist.
Coverage by endorsement
In dwelling policies, automatic increases in insurance is
The application is submitted
In insurance, an offer is usually made when
1st Limit
In the split limit coverage in personal auto policies, which limit indicates the maximum amount the policy will pay for bodily injury per person?
The cause of loss insured against
Peril is most easily defined as
Property
Section I of a business owners policy pertains to what type of coverage?
1 Year
The business owners liability coverage, from will cover medical expenses incurred and reported within how many years of the accident date.
10,000
The business owners policy (BOP) extension coverage form for personal property off premises is limited to
Nothing
The contents coverage on a homeowners policy would pay how much after the loss of one of a pair of golden candle sticks?