guarantee exam

which of the following would be eligible for homeowners coverage F - Medical payments in the event of injury at the insured's premises?

a full time maid.

the obligation to compensate injured workers without regard to fault or negligence is known as

absolute liability. absolute liability is the obligation to compensate injured workers regard or negligence.

The second injury fund will pay the benefits in which of the following situations?

an employee with a previous injury suffers a second injury that causes the disability to be more serious. second injury funds are designed to pay for any additional benefits that may be required when an employee with a previous injury or disability (whether work-related or not) suffers a second injury that causes the disability to be more serious than if there had been no prior disability.

which of the following exclusions would specifically fall under coverage E?

contractual liability.

which of the following provisions is usually found in homeowners policies and provides a replacement cost settlement to policyholders who carry adequate insurance?

insurance to value.

if an insurance policy has the additional coverage provision, how does it affect the policy premium?

there is no additional premium. additional coverage is a provision in an insurance policy that provides an additional amount of coverage for specific loss expense, at no additional premium.

what guarantees that the information explained in the insurance contract is true?

warranty. warranty is considered a statement of fact or something guaranteed to be true. breach of warranties can be considered grounds for voiding the policy.

which of the following is not considered an insurable peril?

a loss resulting from gambling. gambling is a speculative risk and is not insurable. insurance will only cover pure risks.

in a personal auto policy (PAP) a covered auto includes all of the following except

a van used in delivery business.

which valuation method takes into consideration what a willing buyer would pay for an insured property?

market value. if property is insured for market value, it is insured for what a willing buyer would pay prior to a loss.

which of the following is the other major coverage provided by the businessowners liability coverage form?

medical payments. every businessowners liabilty coverage form includes business liability and medical payments (to others) coverages.

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

employee theft. employee theft coverage covers loss by theft if committed by the insured's employees.

the defendant being released on a surety bail bond is the

principal. the defendant has made a promise to show up in court at the specified time. the principal makes a promise to perform.

an insured has a personal auto policy with the following limits: 50/100/25. the number refers to

property damage coverage. the last number in the coverage limits represents the maximum limit for property damage coverage per accident, in this case $25,000.

the purpose of the fair credit reporting act is to

protect consumers against the circulation of inaccurate or obsolete personal or financial information.

the insurance company requires that an insured installs a fire alarm and an automatic sprinkler system as a condition for coverage. this is an example of what?

protective safeguards endorsement.

An insurer's right to take possession of property after having paid for the loss is referred to as the right to

salvage. After payment of loss, the right to salvage allows the insurer to take possession of the property and sell it in whole or in part. by selling a salvaged good, the insurer reduces the initial claim.

coverage B - personal and advertising Liability responds to claims arising from

suits alleging infringement of a copyright. coverage B combines both personal injury and advertising injury into a single insuring agreement and limit of liability.

An insured was having a new home built. while digging the footings for the foundation, the contractor struck a solid rock formation and found that was necessary to blast the formation in order to remove the rocks. the force of the blast broke several windows and some chinaware in the neighbor's home several homes away. who pays for this damage?

the contractor. most states impose absolute liability when a person's actions are determined to be against public policy. damage caused by the use of explosives or damage caused by harboring poisonous snakes or wild animals are examples. the neighbor would not need to prove negligence, he would only need to prove that the damage occurred.

when does the insurer's duty to defend a suit or claim end in a commercial general liability policy?

when loss payments equal the applicable limit of insurance. claims related expense is paid over and above the limit of insurance. once the limit of insurance has been paid for loss, the insurer has no further obligation to the insured.