Guarantee Exam
Drivers A and B are involved in an accident where driver A is 40% at fault and incurs $5,000 in damages. Under the doctrine of contributory negligence, how much can driver A collect from driver B? A).$0 B)$2,000 C)$3,000 D)$5,000
$0
The minimum age requirement for a resident insurance producer in New York is 1.18 2.19 3.21 4.24
18
For how long are producers required to keep records of producer compensation disclosures provided to the purchasers of insurance? A)1 year B)2 years C)3 years D)5 years
3 years
How many years from the cancellation or nonrenewal of a commercial property policy may an insurer audit the books or records of the insured? A)1 year B)3 years C)5 years D)Indefinitely
3 years
Which of the following would guarantee the performance of another person or entity? A)A broker B)A surety C)An obligee D)A principal
A surety
An insurer's statement that its policies are backed by the Guaranty Association is a) Twisting. b) A warranty. c) A representation. d) An unfair trade practice.
An unfair trade practice
Which section of an insurance policy indicates the general rules or procedures that the insurer and insured agree to follow under the terms of the policy? A)Endorsements B)Conditions C)Insuring agreement D)Declarations
Conditions
The main difference between an HO-4 and an HO-6 is a) HO-6 does not cover additional living expenses. b) HO-4 provides limited dwelling coverage as well as contents coverage. c) HO-6 provides limited dwelling coverage as well as contents coverage. d) HO-4 does not cover additional living expenses.
HO-6 provides limited dwelling coverage as well as contents coverage
An insured loses $2,500 worth of precious stones in a burglary. How much will the insured's homeowners policy cover? a) Nothing b) $1,250 c) $1,500 d) $2,500 Homeowners policies limit coverage for theft of jewelry, watches, furs, precious, and semiprecious stones to $1,500.
$1,500
What is the basic limit for towing and labor costs if added as an endorsement on a personal auto policy? A)$25 B)50 C)$100 D)$200
$25
A commercial property special form covers property in transit up to a) Full replacement cost. b) $5,000. c) ACV. d) $500.
$5,000
For medical payments to be covered under Coverage C of a CGL policy, incurred expenses must be reported to the insurer within A)60 days of the accident. B)60 days of the billing date. C)1 year of the accident. D)1 year of the billing date.
1 year of the accident
What is the required minimum notice to the producer for a hearing regarding a violation of the rules of unfair methods of competition? a) 7 days b) 10 days c) 15 days d) 20 days
10 days
What percentage of a person's weekly wage will workers compensation benefits provide for loss of income? a) 25% b) 33 1/3% c) 66 2/3% d) 75%
66 2/3%
Under an Earthquake and Volcanic Eruption Endorsement on a commercial property policy, multiple earthquakes are consolidated into one single event if they occur within a span of A)7 days. B)10 days. C)15 days. D)30 days.
7 days
How soon after the aggregate limit have been met on a liability policy would the limit be restored? a) Immediately upon depletion b) At the policy anniversary date c) 1 year later d) 2 years later
At the policy anniversary date
Which of the following constitutes forced entry into another person's premises with felonious intent? A)Assault B)Robbery C)Theft D)Burglary
Burglary
Which of the following provisions requires an insurer to receive an insured's approval, prior to paying out a professional liability policy claim? A)Legal action provision B)Transfer of right of recovery C)Consent to settle a loss D)Claimant approval
Consent to settle a loss
What insurance principle means something of value that each party gives to the other? A)Indemnity B)Offer C)Consideration D)Assignment
Consideration
Which of the following homeowners forms would be best for a person renting half of a duplex? A)Unit-owners form (HO-6) B)Broad form (HO-2) C)Special form (HO-3) D)Contents broad form (HO-4)
Contents broad form (HO-4)
When an insured wishes to add a personal property replacement cost endorsement to a homeowners policy, an insurer may require the insured increase the amount of a) Coverage A. b) Coverage B. c) Coverage C. d) Coverage D
Coverage C.
In homeowners policies, indirect losses are covered by 1. Coverage A. 2. Coverage B. 3. Coverage C. 4. Coverage D.
Coverage D
Which of the following is the Fair Rental Value coverage in the dwelling policy? 1. Coverage C 2. Coverage D 3. Coverage E 4. Coverage F
Coverage D
Which of the following is NOT an insured's duty after an accident or loss? A)Allow the insurer access to medical records B)Promptly notify the insurer of loss C)Protect property from further damage D)Hire an appraiser to evaluate damages
Hire an appraiser to evaluate damages
Which of the following types of policies are issued by stock companies? a) Self-insured b) Participating c) Guaranteed d) Nonparticipating
Nonparticipating
Which of the following would NOT be used by an insurer when determining the premium rate of a workers compensation policy? A)Risk exposure B)Payroll C)Employment types D)Claims experience
Payroll
Government insurance programs are funded by a) Private insurers. b) Taxes. c) Charitable donations. d) Insurance premiums. While private insurance companies are funded by premiums, government insurance programs are funded by state and federal taxes.
Taxes.
An unidentified hit-and-run driver would be considered an A)Illegal motorist B)Underinsured motorist C)Uninsured motorist D)Insolvent motorist
Uninsured motorist
All legal actions regarding the Federal Employer's Liability Act FELA must commence within what time period from the day the cause of action began? A)6 months B)12 months C)2 years D)3 years
3 years
According the cancellation and nonrenewal condition in homeowners policies, if an insurer needs to cancel a policy due to a change in risk after the policy has been in effect for more than 60 days, the insurer must provide the insured a notice of cancellation of at least a) 10 days. b) 20 days. c) 30 days. d) 60 days
30 days
An insured buys a new camera and wants to have it covered under the scheduled personal property endorsement under a homeowners policy. How long does the insured have to report the purchase to the insurer? 1.30 days 2.45 days 3.60 days 4.90 days
30 days
How long is a temporary license valid in New York? a) 30 days b) 90 days c) 6 months d) 1 year
90 days
The ISO form defines an insured under a CGL policy to be any of the following EXCEPT a) A trustee. b) A sole proprietor. c) A partnership. d) A tenant
A tenant
Under the examinations of books and records condition, the insurance company has the right to examine and audit the insured's books and records related to the policy A)During the policy period and for up to 3 years after the termination of the policy. B)Only during the policy period. C)During the policy period and for up to 5 years after the termination of the policy. D)Only after the policy period.
During the policy period and for up to 3 years after the termination of the policy
Which section of an insurance policy lists perils that are not covered by the policy? a) Insuring agreement b) Conditions c) Exclusions d) Declarations
Exclusions
The maximum amount of money the insurance company will pay for a particular loss, or for loss during a period of time is known as what? A)Limits of liability B)Estoppel C)Indemnity D)Liberalization
Limits of liability
If an insured is involved in an accident in another state where limits of liability are higher than those of the insured's home state, the insured's auto policy will pay 1. Nothing. 2. Limits set by the insured's home state. 3. Limits set by the state in which the accident occurs. 4. Only the difference between each state's limits.
Limits set by the state in which the accident occurs
The primary purpose of a surety bond is to a) Secure a line of credit of a contractor. b) Pay employer losses. c) Make sure obligations are fulfilled. d) Eliminate the possibility of loss. A surety bond guarantees the performance of the principal.
Make sure obligations are fulfilled
Who are the owners of a mutual insurance company? A)Fraternal benefit societies B)Shareholders C)Policyholders D)Brokers
Policyholders
The Guaranty Association is formed to protect which of the following? 1. Members of the Association 2. Insurance companies 3. Policyowners 4. Regulators
Policyowners
Limited fungi, wet or dry rot, or bacteria endorsement in HO policies applies to 1. Property losses only. 2. Liability losses only. 3. Specified losses. 4. Property and liability losses.
Property and liability losses
Which of the following is NOT required of an insured after a loss in a homeowners policy? a) Protect property from continued damage b) Allow insurers to inspect the property c) Replace lost property within 30 days d) Notify police if the loss is caused by theft
Replace lost property within 30 days
Which of the following is used to determine the actual cash value of property? A)Stated amount B)Replacement cost C)Market value D)Salvage value
Replacement cost
Which of the following falls under an agent's fiduciary responsibilities? A)Notifying the Department of administrative actions against the agent B)Submitting premiums to the insurer C)Contacting clients regarding their current coverage D)Receiving commissions for insurance transactions
Submitting premiums to the insurer
Which of the following acts protects consumers against the distribution of incorrect and obsolete personal or financial information? A)PPACA B)HIPAA C)The Consumer Protection Credit Act D)The Fair Credit Reporting Act
The Fair Credit Reporting Act
Which of the following businesses would be INELIGIBLE for coverage under a BOP? A)A bank B)A convenience store with gas pumps C)An office building D)A medium-size retail business
A bank
Section I of a homeowners policy would cover which of the following? A)Liability B)Personal property C)Loss of income D)Personal injury
Personal property
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? a) If the insurer denies the claim, the mortgageholder may still take steps to receive loss payment. b) The mortgageholder has the right to receive loss payment. c) The insurer will pay covered losses or damage to each mortgageholder shown in the declarations. d) The mortgageholder must petition the state department of insurance for named status.
The mortgageholder must petition the state department of insurance for named status
An insured has a homeowners policy and requires her to be a member of the homeowners association in her neighborhood. The association's community house has burned down, and the insured has been assessed $1,200 for her share of the rebuilding cost. How much of the assessment will the homeowners policy pay? A) None B) $500 C) $1,000 D) $1,200
$1,000
Under the Motor Carrier Act of 1980, haulers transporting oil must maintain liability limits of at least a) $150,000 b) $750,000 c) $1,000,000 d) $5,000,000
$1,000,000
Workers compensation rating is developed by applying a Rating Bureau's job classification rate to what increment of payroll? A) $1 B) $100 C) $1,000 D) $10,000
$100
After receiving proof of loss from an insured, an insurer must notify the insured of its intent to repair or replace damaged or lost property within A) 10 days. B) 20 days. C) 30 days. D) 60 days.
30 days
A consumer would like to get more information on their Investigative Consumer Report. How many days does the insurer have to comply? A) 3 days B) 5 days C) 7 days D) 10 days
5 days
Liability where proof of fault or negligence is not required is defined as A) Absolute. B) Vicarious. C) Contributory. D) Comparative.
Absolute
Which of the following coverage forms insures a building under construction? A) Builders risk B) Commercial general liability C) Businessowners D) Business income
Builders risk
HMOs operate on what basis? A) Capitated B) Stop-loss C) Community rating D) Deductible
Capitated
Which of the following would be considered a peril? A) Gambling B) Fire C) Smoking D) Driving too fast
Fire
Which of the following watercraft will be covered under Section I - Liability Coverage of a businessowners policy? 1. Nonowned watercraft used to carry property for a fee 2. Owned watercraft while at sea 3. Any watercraft owned by the insured 4. Nonowned watercraft less than 51 feet long
Nonowned watercraft less than 51 feet long
HMOs help reduce the cost of health care by providing A) Limited health services. B) Primary care. C) Major medical services. D) Preventive care.
Preventive care
For what reason may an insurer cancel a personal auto policy that has been in place for more than 60 days? A) Auto limits are exhausted. B) The insured fails to pay the premium. C) The insured has multiple auto policies. D) Multiple people drive the insured vehicle.
The insured fails to pay the premium?
An unidentified hit-and-run driver would be considered an a) Insolvent motorist b) Illegal motorist c) Underinsured motorist d) Uninsured motorist
Uninsured motorist
An insured driver has a personal auto policy with a medical payments coverage limit of $20,000. If the driver sustains $20,000 in bodily injuries and a passenger sustains $25,000 in injuries, how much would the policy pay each injured person? A) $5,000 B) $10,000 C) $20,000 D) $25,000
$20,000 ?
What is the basic limit for towing and labor costs if added as an endorsement on a personal auto policy? A) $25 B) $50 C) $100 D)$200
$25
How much coverage is provided for trees, shrubs, and plants under a Building and Personal Property policy? A) $250 B) $500 C) $1,200 D) $2,000
$250
What is the maximum amount of coverage an insurer can provide under supplementary uninsured motorist coverage? A) $25,000/$50,000 B) $150,000/$300,000 C) $250,000/$500,000 D) $150.000/$250.000
$250,000/$500,000
Under a personal auto liability coverage, damages to a vehicle may be covered if the person driving the insured vehicle is A) An individual causing intentional damage to a vehicle. B) A person using an insured vehicle without permission. C) An individual who uses the vehicle as public or livery services. D) A family member in the same household.
A family member in the same household
Which of the following would NOT be covered under a dwelling property policy? A) A farm used to raise and sell cattle B) A vacation rental that is unoccupied for 3 or more months a year C) Residences occupied by both an owner and a tenant D) Residences undergoing construction
A farm used to raise and sell cattle
Which of the following would NOT be covered under a dwelling property policy? a) Residences occupied by both an owner and a tenant b) Residences undergoing construction c) A farm used to raise and sell cattle d) A vacation rental that is unoccupied for 3 or more months a year
A farm used to raise and sell cattle
Which of the following would be eligible for Coverage F - Medical Payments in the event of injury at the insured's premises? A) The named insured's spouse B) A full-time maid C) A friend who was hurt at the insured's party 5 years ago D) A person regularly residing with the insured
A full-time maid
Which of the following would be eligible for Coverage F - Medical Payments in the event of injury at the insured's premises? A)The named insured's spouse B)A full-time maid C)A friend who was hurt at the insured's party 5 years ago D)A person regularly residing with the insured
A full-time maid
Of $10,000 in premiums a producer wrote over the past year, $3,000 came from sales to a business which employs the producer's spouse. This is considered A) Rebating. B) A violation of the controlled business regulations. C) A legal practice. D) Coercion.
A legal practice.
If an insured changes their name, the change may be reflected on the insurance policy by attaching what to the policy? A) An additional coverage form B) A notarized authorization C) An additional insuring agreement D) A signed endorsement
A signed endorsement
Liability where proof of fault or negligence is not required is defined as a) Vicarious. b) Contributory. c) Comparative. d) Absolute.
Absolute
Which of the following actions would be considered an offer? A) An applicant submitting the application B) An insurer issuing a policy C) An insurer's underwriter approving the application D) An agent explaining a policy to a potential applicant
An agent explaining a policy to a potential applicant
Which of the following actions would be considered an offer? A) An insurer issuing a policy B) An insurer's underwriter approving the application C) An agent explaining a policy to a potential applicant D) An applicant submitting the application
An applicant submitting the application
Which of the following would be covered under a voluntary compensation endorsement to a workers compensation policy? a) A police officer b) An in-house domestic worker c) An elementary teacher d) A factory worker
An in-house domestic worker
An agent accepts the premium payment 35 days after it is due, telling the insured that the policy will continue to remain in force. This is an example of what type of agent authority? A) Implied B) Apparent C) Express D) Fiduciary
Apparent
Which of the following is covered under a dwelling policy? a) Structures used for commercial manufacturing b) Fire caused by an earthquake c) Freezing of plumbing systems d) Flood or surface water
Fire caused by an earthquake
The primary purpose of a surety bond is to A)Make sure obligations are fulfilled. B) Eliminate the possibility of loss. C) Secure a line of credit of a contractor. D) Pay employer losses.
Make sure obligations are fulfilled
An insured's child ran into a neighbor's planter on his bicycle and broke the planter and ruined the plants. The cost of replacement is $400 for the planter, and $100 for the plants. Which section of the insured's homeowners policy would pay? A) Section I with no deductible B) Section I, subject to a deductible C) Section II with no deductible D) Section II, subject to a deductible
Section II with no deductible
If a loss is not covered by underlying insurance, which of the following must be paid in orde an umbrella policy to cover the loss? A) Coinsurance B) Self-insured retention C) Difference in conditions D) Stop-loss
Self-insured retention
The principle of negligence is defined as A) A wrongful act or the violation of someone's rights that leads to legal liability. B) The failure to use the care that a reasonable person would have taken under the similar circumstances. C) Lessening the possibility or severity of a loss. D) A method of dealing with risk by deliberately keeping away from it.
The failure to use the care that a reasonable person would have taken under the similar circumstances.
According to the general rules of agency, an agent represents A) The broker. B) The insureds. C) The insurer. D) The policyholder.
The insureds
According to the general rules of agency, an agent represents a) The broker. b) The insureds. c) The insurer. d) The policyholder
The insurer
An agent who solicits and files applications for the sale of life insurance represents A) The insured and the insurer. B) The insurer. C) Him or herself D) The applicant.
The insurer
Which of the following best describes insurance? a) The transfer of loss b) The reduction of loss c) The transfer of risk d) The reduction of risk
The transfer of risk
In a liability policy with split limits of 20/40/10, what is the maximum amount payable for bodily injury to two or more people per occurrence? A) $10,000 B) $20,000 C) $40,000 D) $70,000
$40,000
What is the per occurrence limit for manuscripts, drawings, and records under computer fraud crime coverage? A) $4,000 B) $5,000 C) $8,000 D) $15,000
$5,000
How much coverage is provided under a homeowners policy for theft or unauthorized use of a credit card? A) $100 B) $500 C) $1,000 D) $5,000
$500
A transportation network company driver must maintain a primary automobile policy with minimum coverage of at least a) $25,000/$50,000/$15,000. b) $35,000/$75,000/$25,000. c) $50,000/$100,000/$15,000. d) $75,000/$150,000/$25,000.
$75,000/$150,000/$25,000
The businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time limit? A) 90 days B) 6 months C) 1 year D) 3 years
1 year
What is the required minimum notice to the producer for a hearing regarding a violation of the rules of unfair methods of competition? A) 7 days B) 10 days C) 15 days D) 20 days
10 days
The minimum age requirement for a resident insurance producer in New York is A) 18 B) 19 C) 21 D) 24
18
Which of the following is NOT a feature of broad theft coverage under a dwelling policy? A) It covers stolen personal property. B) 1t covers property in premises considered vacant for fewer than 60 days. C) It is automatically covered under DP-3 - Special Form. D) It must be added by endorsement.
1t covers property in premises considered vacant for fewer than 60 days.?
A person who knowingly obtains information on a consumer from a consumer reporting agency under false pretenses may be imprisoned for up to how many years? A)1 year B)2 vears C)3 years D)5 years
2 years
Which of the following businessowners policy (BOP) endorsements provides coverage for the inability to collect monies due from customers as the result of a covered cause of loss? A) Accounts receivable B) Money and security C) Extortion D) Valuable papers and records
Accounts receivable
Which of the following businessowners policy (BOP) endorsements provides coverage for the inability to collect monies due from customers as the result of a covered cause of loss? a) Money and security b) Extortion c) Valuable papers and records d) Accounts receivable
Accounts receivable
Which of the following coverages in the dwelling policy is for indirect losses? A) Dwelling B) Additional Living Expenses C) Other Structures D) Personal Property
Additional Living Expenses
Which of the following loss valuation methods is based on the fair valuation of property at the time of policy issue? a) Agreed value b) Market value c) Stated value d) Replacement cost
Agreed value
Which of the following loss valuation methods is based on the fair valuation of property at the time of policy issue? a) Market value b) Stated value c) Replacement cost d) Agreed value
Agreed value
Over several years, a policyowner paid $10,000 in premiums for his insurance policy. When he suffered a loss, the insurance company paid out $50,000 in benefits. What characteristic of an insurance contract does this describe? A) Adhesion B) Aleatory C) Unilateral D) Conditional
Aleatory
Which of the following is an example of an indirect loss? a) An insured not being able to stay in the home and having to stay in a hotel because of the fire damage to the home b) Property being taken from inside a home from a burglary c) A tornado taking the roof off of a home d) Bedroom furniture lost in a fire originating in the kitchen
An insured not being able to stay in the home and having to stay in a hotel because of the fire damage to the home
An insurer's statement that its policies are backed by the Guaranty Association is A) 1. An unfair trade practice. B) Twisting. C) A warranty. D) A representation.
An unfair trade practice
Which of the following would be covered under Coverage C - Personal Property of a dwelling policy? A) Credit cards B) Canoes C) Gravemarkers D) Animals
Canoes
Which of the following would protect an employer from legal action resulting from a work-related sexual harassment claim? a) Directors and officers liability insurance b) Fiduciary liability insurance c) Employee practices liability insurance d) Errors and omissions liability insurance
Employee practices liability insurance
Which of the following are printed addendums to a contract that are used to change the policy's original terms, conditions, or coverages? A)Declarations B)Conditions C)Endorsements D)Prospectuses
Endorsements
Under a broad form dwelling policy, frozen water pipes will be covered a) Under all circumstances. b) If the plumbing had been installed within the past 3 years. c) If the insured took steps to ensure that the water pipes would not freeze. d) If the outside temperature reached 20 degrees or colder.
If the insured took steps to ensure that the water pipes would not freeze
What does a commercial liquor liability policy protect against? a) It protects a business from any legal action brought against it as a result of selling or distributing alcohol. b) It protects customers from medical expenses resulting from alcohol induced injuries. c) It protects customers from legal action taken against them by a business selling alcohol. d) It protects an insured's business premises from damages caused by intoxicated customers.
It protects a business from any legal action brought against it as a result of selling or distributing alcohol.
Which of the following commercial property condition forms ensures that any adjustments to coverages by an insurer must apply to all existing policies? A) Liberalization B) Other insurance C) Subrogation D) Legal action against an insurer
Liberalization
In the event of a loss, an insured under a CGL policy has to adhere to all of the following duties EXCEPT A) Notify the insured as soon as possible. B) Make voluntary payments or assume obligation when appropriate. C) Note all relevant information related to the loss. D) Authorize the insurer to obtain relevant information.
Make voluntary payments or assume obligation when appropriate?
A personal auto policy may not exclude coverage for vehicles with fewer than 4 wheels if which of the following endorsements is attached to the policy? A) Miscellaneous type vehicle B) Joint ownership coverage C) Recreational vehicle D) Stated value
Miscellaneous type vehicle
A personal auto policy may not exclude coverage for vehicles with fewer than 4 wheels if which of the following endorsements is attached to the policy? A) Stated value B) Miscellaneous type vehicle C) Joint ownership coverage D) Recreational vehicle
Miscellaneous type vehicle
Which of the following PAP endorsements would extend coverage to motorcycle? A) Miscellaneous type vehicle B) Extended nonowned coverage C) Recreational vehicle D) Extended transportation expenses
Miscellaneous type vehicle
Which of the following lists specific perils covered under an insurance policy? A)Indexed perils B)Open perils C)Specified perils D)Named perils
Named perils
If an insurer terminates an insurance policy at the end of the policy period, the action is referred to as a) Revocation. b) Abandonment. c) Nonrenewal. d) Cancellation
Nonrenewal
An insured has an HO-8, modified coverage form. While the insured is on vacation, his $1,500 laptop is stolen. How much coverage is provided under the HO-8 for this loss? A) Nothing; HO-8 forms do not cover theft of personal property off premise. B) $750 C) $1,000 D) $1,500
Nothing; HO-8 forms do not cover theft of personal property off premise.
The point at which an insurer issues a policy is known as A) Acceptance. B) Counteroffer. C) Consideration. D) Offer.
Offer ?
Commercial property policies written together into a single contract are referred to as a) Monoline policies. b) Combined policies. c) General liability policies. d) Package policies
Package policies
Which of the following limits shown in the declarations of a Businessowners policy applies to medical expenses? A)Per injury B)Per accident C)Per person D)Per occurrence
Per person
Workers compensation coverage provides all of the following types of benefits EXCEPT A) Death. B) Retirement. C) Medical. D) Rehabilitation.
Retirement
An insured comes into money and starts collecting pop art from the 1960s. What would the insured add to a homeowners policy to ensure coverage for this investment? A) Dwelling replacement cost B) Nothing; it will already be covered by the homeowners policy. C) Personal property replacement cost endorsement D) Scheduled personal property endorsement
Scheduled personal property endorsement
In insurance, the term "loss" is defined as a) Intentional misrepresentation or deceit with the intent to induce a person to part with something of value. b) Compensation to the insured that restores them to the same financial position that they enjoyed previously. c) An unplanned, unforeseen event which occurs suddenly and at a specific place. d) The reduction, decrease, or disappearance of value of the person or property insured in a policy, by a peril insured against.
The reduction, decrease, or disappearance of value of the person or property insured in a policy, by a peril insured against
Which of the following describes an assignment? A)A material stipulation in the policy that if breached may void coverage. B)The transfer of a legal right or interest in an insurance policy. C)A provision in arnsurance policy that allows for more coverage for specific loss without increase in premium. D)A basic principle of insurance under which the risk of financial loss is assigned to another party.
The transfer of a legal right or interest in an insurance policy.
All of the following are perils covered under the broad form dwelling policy EXCEPT A) Theft B) Fire C) Lightning D) Collapse
Theft
Liability imposed on a parent as a result of the actions of a child would be considered A)Comparative negligence. B)Strict liability. C)Vicarious liability. D)Absolute liability.
Vicarious liability
According to the New York Motor Vehicle Financial Responsibility Law, what are the required limits of liability on auto policies issued in this state? 1.25/25/25 2.25/50/10 3.10/25/10 4.50/100/50
25/50/10
When would uninsured motorist (UM) coverage apply? A)Any time the insured is involved in an accident with an uninsured driver B)Only when the insured is legally liable C)Only when the other party is legally liable but has no insurance D)Only when the insured drives an uninsured car
Only when the other party is legally liable but has no insurance
Prior to an insurance policy paying on a claim, an insured must pay a certain dollar amount on the claim. This is referred to as A)Self-insured retention. B)A deductible. C)Coinsurance. D)A deposit premium.
A deductible
Which of the following is true regarding commission sharing by insurance agents? A)An agent can share commissions with any person who helped solicit or negotiate the insurance contract. B)An agent can never share a commission with another agent. C)Commissions can only be shared with a person authorized and licensed in the same line of authority. D)Commissions can only be shared among agents appointed by the same insurer.
Commissions can only be shared with a person authorized and licensed in the same line of authority.
Making statements that are false, maliciously critical, and designed to injure an insurance person or business is known as A)Defamation. B)Twisting. C)Misrepresentation. D)False advertising.
Defamation.
Under the Affordable Care Act, all of the following are the required essential benefits EXCEPT a) Rehabilitative services b) Pediatric vision care c) Disability income coverage d) Wellness services
Disability income coverage
If an insured has more than one personal auto policy and is involved in an accident, how would each insurer pay for the damages? A)Insurers will pay equal amounts for the loss. B)Each insurer would pay its share of the loss. C)The insurer issuing the oldest policy would pay for all losses. D)The insurer issuing the newest policy would pay for all losses.
Each insurer would pay its share of the loss.
Which of the following perils would NOT be covered under a BOP form? A)Tornado B)Earth movement, power failure, and flood C)Riot, sprinkler leakage, or sinkhole collapse D)Fire or lightning
Earth movement, power failure, and flood
A building contractor constructs a rental property home using "straw-bale" construction that does not conform to standard building codes. The contractor, who is also the owner, does not want insurance on the building but wants coverage on as many other things as he can get. What coverage plan should a producer recommend? a) HO-2 b) HO-4 c) HO-5 d) Coverage cannot be extended on this structure
HO-4
Records pertaining to a transportation network company's trips must be maintained for a period of at least A)3 years. B)5 years. C)6 years. D)10 years.
6 years
Which of the following best describes a proximate cause? A)An unbroken chain of events resulting in a loss B)Injury or property damages resulting from an actual cause C)The proportional negligence of two or more parties D)Cause of loss based on an individual's intent
An unbroken chain of events resulting in a loss
To be eligible for coverage under a BOP, an office building cannot exceed how much in square footage? a) 3,000 square feet b) 50,000 square feet c) 100,000 square feet d) 300,000 square fee
100,000 square feet
If a claim under a commercial property policy is disputed, what is the maximum time period an insured may bring legal action against an insurer? A)2 years from a loss B)6 years from a loss C)5 years from the initial application D)10 years from the initial application
2 years from a loss
The minimum liability insurance requirement for uninsured motorist coverage in the state of New York is A)25/50. B).10/20. C)15/25. D)25/25
25/50
Under the Affordable Care Act (ACA), what is the maximum age for a child of an insured to be covered under the insured's plan? A)18 B)20 C)23 D)26
26
New York Insurance Law requires for an excess lines broker to demonstrate that at least how many licensed insurers have declined to write the specific risk? A)1 B)2 C)3 D)5
3
Which of the following must be provided to every insured for each excess line policy? A)An outline of coverage B)A total cost form C)An affidavit D)An export list
A total cost form
The point at which an insurer issues a policy is known as a) Consideration. b) Offer. c) Acceptance. d) Counteroffer
Acceptance
Under the businessowners property coverage form, which common policy condition addresses what will happen if the insured and the insurer do not agree on the amount of damage? A)Loss payment B)Appraisal C)Subrogation D)Arbitration
Appraisal
Which of the following commercial property causes of loss forms explicitly covers damages from falling objects? A)General form B)Basic form C)Broad form D)Special form
Broad form
The voluntary compensation endorsement in workers compensation coverage provides statutory coverage for which types of employees? A)Police officers B)Public school teachers C)Farm workers D)Factory workers
Farm workers
Which special liability insurance is designed to protect a business from financial mismanagement claims? A)Errors and omissions B)Fiduciary liability C)Employment practices liability D)Directors and officers liability
Fiduciary liability
Which of the following commercial auto coverage forms provides coverage to businesses that repair vehicles? 1. Truckers coverage 2. Garage coverage 3. Motor carrier coverage 4. Business auto coverage
Garage coverage
Which of the following types of property would be covered in homeowners coverage forms? A)Structures rented to others who are not tenants of the dwelling B)Animals, birds, or fish C)Landlord furnishings in an on-premises apartment D)Structures used for business purposes
Landlord furnishings in an on-premises apartment
All of the following are exclusions under the business liability and medical payments coverages of a BOP EXCEPT a) Medical expenses. b) Liquor liability. c) Workers compensation. d) Damage to the insured's product.
Medical expenses
An insured has an HO-8, modified coverage form. While the insured is on vacation, his $1,500 laptop is stolen. How much coverage is provided under the HO-8 for this loss? a) Nothing; HO-8 forms do not cover theft of personal property off premise. b) $750 c) $1,000 d) $1,500
Nothing; HO-8 forms do not cover theft of personal property off premise.
How are premiums affected if an insurance policy has the additional or supplementary coverage provision? a) The premium decreases. b) The premium increases. c) The premium is not affected. d) The premium is split between the policy coverage and the additional coverage. The additional coverage provision provides an additional amount of coverage for a specific loss at no additional premium.
The premium is not affected
Which of the following would NOT be covered under the supplementary payments provided under Coverage A - Bodily Injury and Property Damage of a CGL policy? a) Interest accrued on any judgement b) Up to $500 a day for loss of income c) Court costs against the insured d) Up to $250 for bail bonds Coverage A - Bodily Injury and Property Damage of a CGL policy covers an insured party's loss of income up to $250 a day.
Up to $500 a day for loss of income
The cancellation provision in a businessowners policy specifies all of the following EXCEPT a) The insured's cancellation requirements. b) The insurance company's cancellation requirements. c) The method of transferring the owner's rights. d) The method of refund of unearned premiums.
The method of transferring the owner's rights
Which of the following insurance principles states that the larger the number of people with a similar exposure to loss, the more predictable actual losses will be? 1. Underwriting 2. The law of large numbers 3. Adverse selection 4. Exposure units
The law of large numbers
A license and permit bond is designed to guarantee a recipient A)Accepts a contract and allows the issuance of a performance bond. B)Complies with laws and regulations associated with their profession. C)Accepts a business contract. D)Pays court costs and any resulting damages if the plaintiff loses a case.
Accepts a contract and allows the issuance of a performance bond.
A homeowner lives in a 150-year-old adobe building that is on the National Register of Historic Places. The homeowner has HO-8 coverage. If a fire destroys part of the roof, which of the following describes the insurer's responsibility? a) Replacement of the roof to the condition prior to the fire b) Full roof replacement to current code specifications c) Partial roof replacement to current code specifications d) None
Partial roof replacement to current code specifications
An agent who solicits and files applications for the sale of life insurance represents A)Him or herself. B)The applicant. C)The insured and the insurer. D)4. The insurer.
The insurer
Statements made by an applicant for an insurance policy that are true to the best of the applicant's knowledge are referred to as A)Indemnity. B)Warranties. C)Representations. D)Material information.
Representations
In which of the following situations would a property be considered unoccupied? a) A building has been condemned and emptied of all property. b) The insured went on vacation for a month while the house remained empty. c) The insured moved out and removed all the furniture from the house 3 months ago. d) A new apartment building has been insured, but no dwellers have moved in yet.
b) The insured went on vacation for a month while the house remained empty.
An employee is injured working in a state other than her home state. This injury will be covered a) Under any circumstances; the company's workers compensation coverage applies regardless of where an employee is when injured. b) Only if the employer has an office in the state in which the injury occurred. c) By the Insurance Guaranty Association in the state where the injury occurred. d) If the state in which the injury occurred is listed in the other states' insurance section of a workers compensation policy.
If the state in which the injury occurred is listed in the other states' insurance section of a workers compensation policy.
Which party to a surety bond is the person or entity to whom a guarantee is made? A)Surety B)Guarantor C)Obligee D)Obligor
Obligee
If a loss is not covered by underlying insurance, which of the following must be paid in order for an umbrella policy to cover the loss? A)Difference in conditions B)Stop-loss C)Coinsurance D)Self-insured retention
Self-insured retention
As defined in commercial auto policy forms, mobile equipment includes all of the following types of land vehicles EXCEPT a) Vehicles that provide mobility to permanently mounted power cranes. b) Vehicles that travel on crawler treads. c) Bulldozers and forklifts. d) Self-propelled vehicles used for snow removal
Self-propelled vehicles used for snow removal
Which of the following limitations does a homeowners policy place on a home-run business? a) An additional premium is charged based on the income of a home-run business. b) There can be no more than 2 people working at any one time. c) The business is limited to $10,000 in retail sales. d) The home business may operate only between the hours of 7 a.m. and 6 p.m. local time.
There can be no more than 2 people working at any one time.
Under a workers compensation policy, premiums will be determined when a) The first claim is filed. b) The policy period ends. c) The application is accepted. d) The policy is delivered.
The policy period ends
What is the maximum amount an employers liability insurable policy would pay for the bodily injury of an employee in any one accident? A) $10,000 B) $50,000 C) $100,000 D) $500,000
$100,000
What is the maximum amount an employers liability insurable policy would pay for the bodily injury of an employee in any one accident? A) $10,000 B) $50,000 C) $100,000 D) $500,000
$100,000
Under a commercial property special form, furs and fur garments are covered up to A) $1,000 B) $1,500 C) $2,000 D) $2,500
$2,500
An insured's homeowners policy covers an antique dining set. After a water pipe bursts, the insured moves the set to a storage shed to protect it from water damage. What is the longest period of time the homeowners policy will extend coverage to the dining set? A) 14 days B) 30 days C) 45 days D) 60 days
30 days?
Under Coverage C of a homeowners policy, the amount of insurance provided to cover personal property of the insured is A) 50% of the amount provided as Coverage B B) 50% of the amount provided as Coverage A. C)Equal to the amount provided as Coverage B. D)Equal to the amount provided as Coverage A
50% of the amount provided as Coverage A
In order for a building and personal property coverage form to cover damages caused by vandalism, the building cannot be vacant for more than a) 10 days. b) 30 days. c) 60 days. d) 90 days.
60 days
Within how many days of cancellation of a claims-made policy may an insured request claim and occurrence information from the insurer? a) 10 days b) 30 days c) 60 days d) 180 days
60 days
According to the Fair Credit Reporting Act, consumer reports are prohibited from reporting negative information about a customer after how many years? A) 3 years B) 5 years C) 6 years D) 7 years
7 years
Under the legal liability coverage form, all of the following are duties of an insured after a loss EXCEPT A)Attempt to settle the loss, prior to submitting a claim. B) Authorize an insurer to obtain pertinent records. C) Cooperate with the insurer in an investigation. D) Provide an insurer with a written notice of a claim or suit.
Attempt to settle the loss, prior to submitting a claim.
A single insurance policy that covers multiple classes of property at a single location is called A) Umbrella insurance. B) Specific insurance. C) Blanket insurance. D) Broad insurance.
Blanket insurance.
In an auto insurance policy, what does the first limit represent in split liability limits? A) Bodily injury to all injured persons in a single accident B) Bodily injury to two persons injured in a single accident C) Property damage in a single accident D)Bodily injury to one person in a single accident
Bodily injury to one person in a single accident
In an auto insurance policy, what does the first limit represent in split liability limits? A) Property damage in a single accident B) Bodily injury to one person in a single accident C) Bodily injury to all injured persons in a single accident D) Bodily injury to two persons injured in a single accident
Bodily injury to one person in a single accident
Which of the following would be covered under Coverage C - Personal Property of a dwelling policy? A) Gravemarkers B) Animals C) Credit cards D) Canoes
Canoes
Which of the following would NOT be used by an insurer when determining the premium rate of a workers compensation policy? a) Employment types b) Claims experience c) Risk exposure d) Payroll
Claims experience
Under which of the following doctrines is fault for an accident shared between the parties involved? A) Contributory negligence B) Doctrine of Respondeat Superior C)Law of Agency D) Comparative negligence
Comparative negligence
The claims-made trigger in commercial general liability policies is based on which of the following? a) Policy liability limits b) Date on which the claim was submitted to the insurer c) Premium payment mode d) Date in which physical injury or property damage occurred
Date on which the claim was submitted to the insurer
Which special liability policy would cover claims for wrongful acts committed by a general manager of a corporation? A) Personal injury liability B) Errors and omissions liability C) Directors and officers liability D) Fiduciary liability
Directors and officers liability
Which 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? a) Single form b) Discovery form c) Liability form d) Loss sustained form
Discovery form
Which provision requires that an insured protects property from further damage following a loss? A) Duties after loss B) Notice of claim C) Sever ability D) Legal action
Duties after loss
Which of the following commercial liability policies would protect an insurance agent from providing incorrect advice to customers? A) Errors and omissions liability B) Fiduciary liability C) Employment practices liability D) Directors and officers liability
Errors and omissions liability
Which of the following commercial auto coverage forms provides coverage to businesses that repair vehicles? A) Motor carrier coverage B) Business auto coverage C) Truckers coverage D) Garage coverage
Garage coverage
Which of the following damages is the most subjective when determining compensation? a) Punitive damages b) Tort damages c) Special damages d) General damages
General damages
In farm insurance, Coverage I - Personal and Advertising Injury Liability for suits alleging personal injury is most similar to the coverage found in which of the following coverage forms? A) Umbrella liability B) General liability C) Personal auto D) Dwelling
General liability
Which of the following perils is excluded in all dwelling policy forms? A) Volcanic eruption B) Freezing C) Collapse D) Government action
Government action
Which of the following perils is excluded in all dwelling policy forms? a) Collapse b) Government action c) Volcanic eruption d) Freezing
Government action
The federal act that protects a person's health information is called A) HIPAA. B) ERISA. C) PPACA. D) COBRA.
HIPAA
A couple has just purchased a condominium. Which of the following policies would they use to insure their dwelling? A) H0-2 B) HO-4 C) HO-5 D) HO-6
HO-6
Which of the following principles describes creating or increasing the chance of loss? A) Hazard B) Indemnity C) Warranty D) Risk
Hazard
In an HMO policy, one of the main responsibilities of the primary care physician (PCP) as a gatekeeper is to do which of the following? A) Keep regular office hours B) Seek alternative treatments for patients C) Help run the HMO D) Help control costs
Help control costs
Which of the following is NOT an insured's duty after an accident or loss? A) Protect property from further damage B) Hire an appraiser to evaluate damages C) Allow the insurer access to medical records D) Promptly notify the insurer of loss
Hire an appraiser to evaluate damages
A businessowners policy (BOP) Section I - Property is most similar to which of the following other types of policies? A) Umbrella B) Dwelling C) Cargo D) Homeowners
Homeowners
Where does a domestic insurer have its home office? A) In another state B) n another country C) In this state D) In more than one state
In this state
Which of the following is an advantage of a businessowners policy? a) It is a monoline policy. b) It splits premiums, allowing an insured more flexibility regarding coverage. c) It offers lower rates to bars and grills. d) It combines property and liability coverage in a single package.
It combines property and liability coverage in a single package
Which of the following is NOT a feature of broad theft coverage under a dwelling policy? a) It is automatically covered under DP-3 - Special Form. b) It must be added by endorsement. c) It covers stolen personal property. d) It covers property in premises considered vacant for fewer than 60 days.
It is automatically covered under DP-3 - Special Form
A homeowner lives in a 150-year-old adobe building that is on the National Register of Historic Places. The homeowner has HO-8 coverage. If a fire destroys part of the roof, which of the following describes the insurer's responsibility? A) Replacement of the roof to the condition prior to the fire B) Full roof replacement to current code specifications C) Partial roof replacement to current code specifications D) None
Partial roof replacement to current code specifications
A property is insured against damage from hail. Hail would be considered A) Condition. B) Loss. C) Peril. D) Hazard.
Peril?
An insured operates a photography studio in an outbuilding in the backyard of the insured's house. What endorsement would be added to the homeowners policy to cover this business? a) Mortgage holders clause b) Permitted incidental occupancies c) Scheduled personal property d) Dwelling replacement cost
Permitted incidental occupancies
Which of the following is NOT a coverage part of a commercial package policy? A)Personal articles floater B)Inland marine C)Commercial auto D)Equipment breakdown
Personal articles floater
Which of the following liability coverages must be added by endorsement to a homeowners policy in order to apply? A) Personal injury B) Bodily injury C) Property damage liability D)Medical payments to others
Personal injury
The Guaranty Association is formed to protect which of the following? A) Policyowners B) Regulators C) Members of the Association D) Insurance companies
Policyowners
What is the purpose of requiring licenses for persons who transact insurance? A) Protect insurers from liability and lawsuits B) Be able to collect commissions C) Protect the general public D) Generate income for the insurance regulatory entities
Protect the general public
All of the following would be defined as an insured contract under a CGL coverage form EXCEPT a) Sidetrack agreements. b) Property leases. c) Railroad indemnification agreement. d) Elevator maintenance agreements
Railroad indemnification agreement
Under which of the following circumstances would a loss be covered under an HO-2 policy form? A) An insured drives a car into a wooden plat fence on the insured's property B) A home that has been vacant for 65 days is damaged when a water heater bursts C) A hail storm pokes a hole in a roof and a bedroom has hail damage D) Rain enters a house through an open door, warping the wooden floors
Rain enters a house through an open door, warping the wooden floors
Which of the following is NOT required of an insured after a loss in a homeowners policy? a) Allow insurers to inspect the property b) Replace lost property within 30 days c) Notify police if the loss is caused by theft d) Protect property from continued damage
Replace lost property within 30 days
In insurance, the uncertainty of an individual sustaining a loss in the future is classified as a/an A) Hazard. B) Peril. C) Unknown event. D) Risk.
Risk
For which of the following reasons can the Department of Financial Services issue a temporary license? a) Licensing a business entity b) Soliciting new business c) Servicing existing business d) Partnering with a licensed agent Temporary licenses are granted mainly due to death or disablement of an agent. A temporary license does not forego the requirement to eventually obtain a permanent license and comes with limitations
Servicing existing business
Which of the following is considered the maximum amount an insurer will pay for a loss, without an insured having to meet coinsurance requirements? A) Salvage value B) Stated value C) Actual cash value D) Replacement cost
Stated value
Under a workers compensation policy, premiums will be determined when a) The policy period ends. b) The application is accepted. c) The policy is delivered. d) The first claim is filed.
The policy period ends
Which of the following limitations does a homeowners policy place on a home-run business? a) The business is limited to $10,000 in retail sales. b) The home business may operate only between the hours of 7 a.m. and 6 p.m. local time. c) An additional premium is charged based on the income of a home-run business. d) There can be no more than 2 people working at any one time.
There can be no more than 2 people working at any one time
How are premiums handled on a prepackage businessowners policy? a) Property premiums are set at a fixed rate, while liability premiums increase over time. b) There is one premium for property and liability coverage. c) Only property coverage requires premium payments. d) Premiums may vary between property and liability coverage
There is one premium for property and liability coverage
How are premiums handled on a prepackage businessowners policy? a) Only property coverage requires premium payments. b) Premiums may vary between property and liability coverage. c) Property premiums are set at a fixed rate, while liability premiums increase over time. d) There is one premium for property and liability coverage.
There is one premium for property and liability coverage.
What is the purpose of Medigap policies? a) To provide supplement coverage for Social Security disability benefits b) To provide health insurance to low-income senior citizens c) To cover expenses for Medicare deductibles and coinsurance d) To regulate unfair marketing practices
To cover expenses for Medicare deductibles and coinsurance
Which of the following is a coverage part of a personal auto policy? A) Uninsured motorist coverage B) Additional living expense coverage C) Truckers coverage D) Garage coverage
Uninsured motorist coverage
According the cancellation and nonrenewal condition in homeowners policies, if an insurer needs to cancel a policy due to a change in risk after the policy has been in effect for more than 60 days, the insurer must provide the insured a notice of cancellation of at least a) 10 days. b) 20 days. c) 30 days. d) 60 days.
30 days
An insured buys a new camera and wants to have it covered under the scheduled personal property endorsement under a homeowners policy. How long does the insured have to report the purchase to the insurer? A) 30 days B) 45 days C) 60 days D) 90 days
30 days
If a driver cancels his auto insurance and does not replace it, how long does the insurer have to report this to the Commissioner of the Department of Motor Vehicles? a) 15 days b) 20 days c) 30 days d) 45 days
30 days
In the event an insurer intends not to renew a commercial general liability policy, the insurer must notify the insured within a) 10 days. b) 20 days. c) 30 days. d) 60 days.
30 days
What is the required limit of insurance in the coinsurance clause for Coverage F - Unscheduled Farm Personal Property? A) 20% B) 50% C) 80% D) 100%
80%
In order for a dwelling to be covered on a replacement cost basis, the dwelling must be insured up to at least A)20% of the replacement cost. B)40% of the replacement cost. C)60% of the replacement cost. D)80% of the replacement cost.
80% of the replacement cost
in order for a dwelling to be covered on a replacement cost basis, the dwelling must be insured up to at least A) 20% of the replacement cost. B) 40% of the replacement cost. C) 60% of the replacement cost. D) 80% of the replacement cost.
80% of the replacement cost.
Limits of liability for a covered dwelling under construction are based on the A) Completed value of the structure. B) Completed value of the structure minus the repair costs. C) Estimated value of the structure, prior to construction. D) Current value of the structure.
?
Which of the following businesses would be INELIGIBLE for coverage under a BOP? A) A medium-size retail business B) A bank C) A convenience store with gas pumps D) An office building
A bank
A license and permit bond is designed to guarantee a recipient A) Accepts a business contract. B) Pays court costs and any resulting damages if the plaintiff loses a case. C) Accepts a contract and allows the issuance of a performance bond. D) Complies with laws and regulations associated with their profession.
Complies with laws and regulations associated with their profession.
What type of law requires employers to provide workers compensation coverage to employees? 01. Compulsory 02. Labor О3. Civil O4. Elective
Compulsory
What type of law requires employers to provide workers compensation coverage to employees? a) Civil b) Elective c) Compulsory d) Labor
Compulsory
Which of the following commercial coverage forms covers losses to permanent fixtures located in a condominium? a) Building and personal property coverage form b) Business income and extra expense coverage form c) Condominium association coverage form d) Condominiums unit-owners coverage form
Condominium association coverage form
Which of the following risks are eligible for coverage under a businessowners policy (BOP)? A) Banks B) Automobile dealers C) Bars or taverns D) Condominiums
Condominiums
Which of the following provisions requires an insurer to receive an insured's approval, prior to paying out a professional liability policy claim? A) Consent to settle a loss B) Claimant approval C) Legal action provision D) Transfer of right of recovery
Consent to settle a loss
Which of the following entities is eligible for a businessowners policy?
Convenience stores
Under the Commercial General Liability form, which of the following coverages provides protection for bodily injury and property damage suffered by third parties? A) Coverage B B) Coverage C C) All coverages D) Coverage A
Coverage A
When an insured wishes to add a personal property replacement cost endorsement to a homeowners policy, an insurer may require the insured increase the amount of A) Coverage A. B) Coverage B. C) Coverage C. D) Coverage D.
Coverage C ?
Which section of an insurance policy lists perils that are not covered by the policy? a) Declarations b) Insuring agreement c) Conditions d) Exclusions
Exclusions
An employer has agreed to be legally responsible for all work-related injuries and diseases. In return, the employees know that they will not be able to sue the employer for work-related incidents caused by the employer's negligence. This is called a) Diffusion of fault. b) Reciprocity. c) Exclusive remedy. d) Exchange of liability.
Exclusive remedy
The provision in workers compensation coverage that requires an employer to pay compensation without regard to negligence and according to a compensation schedule set by law, and for the injured employee to agree to limit the employer's responsibility to the amount of workers compensation to which he or she is entitled, is called a) Exclusive remedy. b) Waiver of indemnification. c) Voluntary negligence assumption. d) No-loss, no-gain regulation.
Exclusive remedy
An employer has agreed to be legally responsible for all work-related injuries and diseases. In return, the employees know that they will not be able to sue the employer for work-related incidents caused by the employer's negligence. This is called A) Diffusion of fault. B) Reciprocity. C) Exclusive remedy. D) Exchange of liability.
Exclusive remedy.
In group health insurance, which of the following terms applies to the calculation of premiums based on the experience of the group as a whole? A) Injury ranking B) Compensation rate C) Experience rate D) Claims ranking
Experience rate
Which of the following commercial forms would cover costs associated with a temporary worksite while damages to an office building are being repaired? A) Legal liability B) Extra expense C) Builders risk D) Business income
Extra expense
Which special liability insurance is designed to protect a business from financial mismanagement claims? A) Employment practices liability B) Directors and officers liability C) Errors and omissions D) Fiduciary liability
Fiduciary liability
Where must an insurer's home office be located for it to be considered an alien insurer? A) In another state B) In more than one state C) In another country D) In this state
In this state
Which of the following principles describes restoring the insured to their original financial status after a loss? A) Indemnity B) Warranty C) Utmost good faith D) Reasonable expectations
Indemnity
Which of the following insurers must be members of the New York Property Insurance Underwriting Association? A) Insurers who transact fire and extended coverage insurance B) Surplus Ines insurers C) Auto insurers D) All authorized insurers in this state
Insurers who transact fire and extended coverage insurance
Which of the following sections of a contract contains the insurer's promise to pay in the event of a loss? A) Insuring Agreement B) Endorsements C) Conditions D) Declarations
Insuring Agreement
Which endorsement in the businessowners coverage form requires insureds to maintain certain security features as a condition for coverage? a) Utility services - direct damage b) Utility services - time element c) Inspections and survey d) Protective safeguards
Protective safeguards
The chance of loss without any possibility for gain is known as a/an A) Uninsurable risk. B) Pure risk. C) Insurable interest. D) Speculative risk.
Pure risk
All of the following would be defined as an insured contract under a CGL coverage form EXCEPT a) Railroad indemnification agreement. b) Elevator maintenance agreements. c) Sidetrack agreements. d) Property leases.
Railroad indemnification agreement
What is a primary difference between an HMO and a traditional insurance company? A) The HMO is financed primarily through the government, while traditional companies receive their funding from premium payments. B) Traditional companies receive their funding from a combination of premiums and government subsidies. C) HMOs receive their funding from a combination of premiums and government subsidies. D) The HMO provides both the financing and patient care for its members, while traditional companies provide the financing only.
The HMO provides both the financing and patient care for its members, while traditional companies provide the financing only.
The cancellation provision in a businessowners policy specifies all of the following EXCEPT a) The insured's cancellation requirements. b) The insurance company's cancellation requirements. c) The method of transferring the owner's rights. d) The method of refund of unearned premiums
The method of transferring the owner's rights.
The premium for a home day care coverage endorsement to a homeowners policy is based on A) The number of care providers over the age of 16. B)The ages of children under care. C)The square footage of the residence. D)The number of children cared for on the premises.
The number of children cared for on the premises
In insurance contracts, consideration on the part of the insured is A) Warranties made in the application. B) The submission of proof of loss. C) Transferring policy rights to another person. D) The payment of premiums and representations made in the application.
The payment of premiums and representations made in the application.
Which of the following is a requirement for standard Medicare supplement plans? a) Core benefits are only required in Plan A. b) Plans A through N are mandatory. c) Plan A is optional. d) All plans must offer the core benefits.
All plans must offer the core benefits
Limits of liability for a covered dwelling under construction are based on the a) Estimated value of the structure, prior to construction. b) Current value of the structure. c) Completed value of the structure. d) Completed value of the structure minus the repair costs. If added by endorsement, damages to dwellings under construction may be covered, up to the completed value of the structure.
Completed value of the structure
Which of the following perils is NOT covered the DP-2? a) Damage caused by burglars b) Damage caused by the weight of ice and snow c) Damage caused by falling objects d) Damage to pets, birds, or fish
Damage to pets, birds, or fish
All of the following statements are true regarding fire department service charge additional coverage under the businessowners policy EXCEPT a) This coverage is not subject to any deductible. b) This coverage provides an additional $2,500 amount of insurance. c) This coverage limit pays in place of the limit of insurance shown in the declarations. d) This coverage limit is payable in addition to the limit of insurance shown in the declarations.
This coverage limit pays in place of the limit of insurance shown in the declarations
Which of the following causes of loss is covered under a commercial property basic form? A)Dry rot B)Volcanic eruption C)Earth movement D)Nuclear hazard
Volcanic eruption
In insurance, the principle of subrogation is defined as A)The required amount to pay for property loss that is calculated based on the property's current replacement value minus depreciation. B)A unit of measure used to determine rates charged for insurance coverage. C)When an insurer who pays a claim can seek damages to recover the loss from a third party. D)When an insurer may deny paving a claim because of fraud on the part of an insured.
When an insurer who pays a claim can seek damages to recover the loss from a third party
Which of the following types of insurance companies issue participating policies? A)Authorized B)Stock C)Mutual D)Reciprocal
Mutual
An individual was involved in a head-on collision while driving home one day. His injuries were not serious, and he recovered. However, he decided that in order to never be involved in another accident, he would not drive or ride in a car ever again. Which method of risk management does this describe? a) Sharing b) Retention c) Avoidance d) Reduction
Avoidance
Which of the following refers to the upper limit a liability policy will pay out for all claims that arise from a single accident? A)Per person B)Per occurrence C)Combined single limits D)Split limits
Per occurrence
The replacement cost method of loss valuation is defined as a) The lessening of value of real and personal property due to age and wear and tear. b) The required amount to pay damages or for property loss, which is calculated based on the property's current replacement value minus depreciation. c) The cost to replace damaged property with like kind and quality at today's price, without any deduction for depreciation. d) The amount a willing buyer would pay to a willing seller for the property prior to the loss.
The cost to replace damaged property with like kind and quality at today's price, without any deduction for depreciation
