Final Exam

An insured has a personal auto policy with both comprehensive and collision coverage. His car is stolen and recovered 5 days later. If the insured transportation expenses of $20 per day, how much will his policy pay?

$60

according to the standard mortgage clause, who has the right to bring a suit in their own name to recover damages, pay policy premiums, and submit a proof of loss?

Mortgagee

A businessowners policy is

a self-contained prepackaged policy

For the purpose of insurance, an owner-occupied residential dwelling is

a structure of not more than four units, one of which is occupied by the owner

In a personal auto policy, the medial payments coverage is similar to

accident insurance, because it pays medical expenses regardless of fault

a producer who fails to separate premium monies from his own personal funds is guilty of

commingling

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

which of the following would NOT be considered an unfair and deceptive practice?

controlled business

Motor Carrier Coverage

covers anyone who transports good. Private carriers can be insured under the business auto coverage form or the motor carrier coverage form

Which of the following terms describes a reduced or limited amount of coverages, other than the combined single limit, that is available to pay claims resulting from passenger bodily injury?

sublimit

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

symbol 5

which of the following is an additional coverage that is covered by the broad causes of loss form?

collapse

The broad theft coverage endorsement on the dwelling form specifies all of the following limitations EXCEPT

$1,000 on silverware

coverage J under farm coverage agrees to pay reasonable medical expense, regardless of fault, caused by an accident if the expenses are incurred and reported to the insurer within how many years of the accident date?

3 years

Which of the following is INCORRECT?

A licensee is barred from charging a fee in addition to a commission to a person for the sale, solicitation or negotiation of a contract of insurance for commercial business

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

Which of the following authorities monitors the financial strength of insurers?

Department of Insurance

Expenses that an organization would not have incurred if business interruption had not existed are known as

Extra expenses

which of the following regulatory authorities participated in creating the National Do Not Call Registry

FTC Fair Trade Commission and FCC

all of the following are exclusions that apply in all three types of Dwelling Policies EXCEPT

Fire and lightning

Crews of ships are covered by the?

Jones Act

ABC trucking company recently purchased XYZ manufacturing company. ABC wants to transport the new company's freight with their trucking division. The company also wants to continue to haul freight for the clients it has served for many years. In regard to coverage, which of the following is true?

Motor carrier coverage is needed

Which of the following covers a carrier for liability for loss to cargo while it is being transported in a truck?

Motor truck cargo policy- carriers form

a producer licensed in another state wants to become a producer in PA. The other state gives the same privilege's to PA producers wanting to be licensed in that state as it does its own agents. PA therefore, extends the privileges of its agents to the prospective agent of the other state. What is this called?

Reciprocity

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

Sales

The occurrence form trigger is based on which of the following?

The date when injury or damage occurs

Which of the following would determine minimum and maximum limits for FAIR plan rates?

The state

A trucking business swaps trailers with other carriers. What coverage is necessary to cover loss to the other's trailer while in the borrower's possession?

Trailer interchange coverage

Which of the following exposures is insured under Coverage I - Personal and Advertising Injury Liability?

Unintentional acts arising from the operation of a farming business

which of these is defined as the max limit of coverage available under a liability policy during a policy year, regardless of the number of claims that may be made or the number of accidents that may occur?

aggregate limit of liability

Comparative Negligence

apportionment of damages when both the plantiff and defendant are at fault

which of the following will NOT be considered unfair discrimination by insurers?

discriminating in benefits and coverages based on the insured's habits and lifestyles

In addition to the common policy conditions, all of the following conditions apply to liability coverage EXCEPT

employers liability

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

experience

Which of the following is NOT true regarding a CoA

it is issued to a group of insurance participants

in which type of commercial crime policy coverage is triggered by a loss that happens during the policy period but is not necessarily discovered during the policy period?

loss sustained form

What is Covered C

medical payments provides necessary medical, surgical, ambulance, hospital, nursing or funeral expenses for 3rd parties.

A producer has become disabled. In order to keep his business going, what may the producer's designee do?

obtain a temp license

where is the policy period stated?

on the declarations page of the policy

when is a hired and nonowned auto liability endorsement available in a business owners policy? (BOP)

only if the insured does not have commercial auto coverage

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

Sublimit

reduced or limited amount of coverages, other than the combined single limit, that is available to pay claims resulting from passenger bodily injury.

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

self-insured retention

according to the privacy of consumer financial information regulation, if a consumer decides to opt out, this means

the consumer direct the licensee not to diclose the consumer's nonpublic personal financial information to a third party.

Which of the following statements is true regarding the commercial general liability policy's Coverage C- Medical payments?

the coverage is considered good will because payments are made without regard to fault

under the "limited tort insurance" option, an insured may not seek recovery for pain and suffering or other nonmonetary damages UNLESS

the injuries fall within the definition of "serious injury"

which situation would NOT be covered by the basic Causes of Loss form under a commercial property policy?

the surf side club waterfront restaurant is damaged when flood waters rise and seep into the restaurant

which of the following is true regarding single dwellings that are insured to at least 80% of the replacement value?

they are automatically provided with replacement cost coverage

all of the following are essential elements of commercial package policy EXCEPT

valuations and settlement provisions