Guarantee Exam Missed questions

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

$2,500

An insured was judged at fault in an automobile accident. He has the 100/300 bodily injury liability coverage. Three other individuals were injured in the vehicle hit by the insured. They were awarded damages of $150,000, $75,000 and $75,000. What mount, if any, was not covered by his insurance policy?

$50,000

Once an insurer receives a claim, within how many days must the insurer provide claims forms to the insured?

10

What is the minimum age to apply for a resident producer's license in the state?

18

How many excess continuing education credit hours may a licensee carry forward from one licensing period to the next?

24

Under Business Personal Property Limit - Seasonal Increase, if no percentage is specified in the declarations, seasonal fluctuations will automaticall increase the limit for business personal property by

25%

An insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request?

3 days

Which of the follwoign would be eligible for homeowners Coverage F - Medical Payments in the event of injury at the insured premises

A full-time maid

Homeowners policies permit all of the following incidental occupancies EXCEPT

A retail sales operation run by the insured from his garage.

Homeowners policies consider all of the following insured locations Except

A strawberry patch owned by the insured

In a personal auto policy (PAP), a covered auto includes all of the following EXCEPT

A van used in the delivery business

If an insurance policy prohibits the insured from relinquishing ownership of insured property that has been damaged, it is prohibiting

Abandonment

Who acts on behalf of the principal?

Agent

Coverage for which of the following perils must be contained in all Standard Fire Policies

All of the above

A personal umbrella policy may act as excess over any of the following insurance coverage policies EXCEPT

Auto collision coverage.

Which of the following commercial auto coverages provides protection for most commercial auto exposures except truckers, garages, and motor carriers?

Business auto coverage

In order to receive transportation expenses under the personal auto policy following damage to your auto caused by collision, you must have

Collision coverage

A performance bond is an example of which of the following types of bonds

Contract

The supplementary payments section of the commercial genral liability policy would cover

Court costs assessed against the insured in a suit

Employers liability coverage under a workers compensation policy includes

Damages claimed by third parties.

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

Employee Theft

What policy would a business owner whose business fills scuba tanks most likely need to insure unfired pressure vessels and compressors

Equipment breakdown

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

Fair Credit Reporting Act

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

Growing Crops

A scheduled personal property endorsement will be used to insure

Higher limits of coverage for fine arts items.

What coverage form in the farm policy insures equipment on an open peril basis?

Mobile agriculture machinery and equipment

How is the premium paid for the business owners policy?

One indivisible Premium

The deductible under earthquake coverage is stated as what?

Percentage of loss

In reference to insurable interest, which of the following is NOT an element of insurable risk?

Personal.

Which of the following is NOT a cause of loss form for commercial property coverage?

Specific

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 re will be reimbursed for the excess costs by the NFIP.

An insured has decided to never drive another vehicle and wants to transfer his auto insurance policy to his wife. What does the insured need to transfer the policy?

The written consent of the insurer

Supplementary payments under the personal auto policy include all of the following EXCEPT

Unlimited cost of bail bonds

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

Which of the following exclusions applies to both personal injury and advertising injury in the business owners policy?

Willful violation of a penal statute or ordinance committed by the insured.

What is the maximum civil penalty per violation of the regulations of the Insurance Code that define acts that are subject to fines, or license suspension or revocation?

$5,000

An insurer who transacts insurance in this state but whose articles of incorporation are registered in Canada is considered what type of insurer?

Alien

A general liability policy will respond to claims against an insured when bodily injury or property damage is caused by

An insureds negligence

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

Bodily injury liability

An insured rents out a bedroom in his residence for $50 per week. The residence is badly damaged by fires. During the three weeks required the fire damage, the insured pays $900 in rent for a short-term apartment, and the renter is forced to find other accommodations. Disregarding any extra expense for meals, how much would an HO-3 will pay under Coverage D?

$1,050

The personal property off-premises extension of dwelling forms provides limits of coverage up to

10% of Coverage A anywhere in the U.S. or Canada

The personal property off-premises extension of dwelling forms provides limits of coverage up to

10% of Coverage C anywhere in the world

Which of the following is covered under a dwelling policy

Fire Cause By Earthquake

Which homeowners form provides open peril coverage for dwelling (Coverage A) and contents (Coverage C)?

HO-5

Policy limits are the maximum amount an insured may collect, or for which an insured is protected under the terms of the

Insuring agreement.

What do you all a limit of liability offered as a combined single limit of coverage for all bodily injury to passengers and nonpassengers of an aircraft and property damage?

Smooth Limit

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

A customer service representative who solicits no more than one policy a year.

A house insured with a homeowners policy has been blown off its foundation by a tornado. It must be demolished and removed so a replacement house can be built. Which of the following is true about debris removal?

An additional 5% of the policy limit may be paid for debris removal.

Which of the following would NOT be covered as a loss under Coverage D of a homeowners policy?

An insured leased a dwelling for 5 years. Two years later, the property owner died, and the new property owners wanted to make the property their principal residence, so the lease was canceled.

Under Coverage B -Other Structures, a homeowners policy provides coverage for other structures on the residence premises. Which of the following statements is NOT true of this coverage?

Any loss paid under Coverage B reduces the Coverage A limit of liability.

Two men are partners in a moving company. They have two trucks used to move property of others. They should insure their trucks under a

Business auto policy

The statutory law defense that reduces injury and awards for damages proportionately when the plaintiff and defendant are both responsible is called

Comparative negligence

An insured believes that his insurer is not properly fulfilling its obligations regarding his policy. What section of the policy will give the insured more information about specific duties of the insurer?

Conditions

Which of the following dwelling policies require insurance equal to at least 80% of the replacement value of the dwelling at the time of loss in order to provide replacement cost coverage?

DP-2 and DP-3

Which of the following would NOT generally be included in the supplementary payments portion of a liability policy?

Damage to property owned by the insured

All of the following are optional endorsements that may be added to the standard equipment breakdown coverage form EXCEPT

Debris removal.

Which of the following losses would be excluded from coverage under the farm property special form?

Fire caused by curing tobacco

An insured was involved in an accident that was caused by a tire blowing out. The insured was severely injured and incurred medical expenses of $100,000. The insured brought a recovery action against the manufacturers of the auto and the tires. The court held that the tire was the cause of the accident. Who is required to pay for this loss?

Manufacturer of the tire.

Lost Treasures has a guard dog in a fenced lot to protect the salvage yard. The dog scared a passerby, who now claims that it was a traumatic experience and that he now suffers from recurring nightmares. A claim for personal injury of $5,000 is filed against Lost Treasures. Why will the personal and advertising injury liability section (Coverage B) of the CGL policy cover the claim?

Mental anguish is a covered injury.

An insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest, so the agent guarantees higher dividends than he knows would be possible. Which term describes what the agent has done?

Misrepresentation

What are the two sources for workers compensation insurance?

Monopolistic state fund and competitive market.

A person has a history of DUI's. To his insurer, this presents what type of hazard?

Morale

Among the applicants in the same class and life expectancy, which of the following factors can be used to influence premium rates?

Occupation

The defendant being released on a surety bail bond is the

Principal

All of the following are true about the cancellatio nprovision of a commercial insurance policy EXCEPT

The insurer is required to provide proof that the insured recevied the cancellation notice prior to cancelling the policy

Under the common policy conditions of a policy, all of the following are TRUE about changes in a policy EXCEPT

The insurer must obtain permission from all named insured to make a change

Which of the following would be a proper choice of policy for a company that transports goods that are irreplaceable in nature?

Valued policy

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

When loss payments equal the applicable limit of insurance.

If a car is stole and left in a snow bank and the radiator freezes...

YES, Freezing exclusion IS removed if the car is stolen

If a car is stolen and left in a snow bank and the radiator freezes and does a lot of damage, is the damage covered by the auto policy?

Yes, there is no exclusion for freezing.

The other states' insurance section of a workers compensation policy provides coverage

Only for those other states listed in the policy.

The extended nonowner coverage provides protection to

Only the persons named on the policy.

What kind of coverage does Form DP-3 provide?

Open Peril

Which of the following would be covered under a building and personal property coverage form

Outdoor sign

Late one night on his way home from a local bar, a man runs his covered auto into an insured car. The man was operating his vehicle while under the influence of alcohol. The insured had no personal injuries, but her car had damage. her insurance policy paid for the damages to her car. The subrogation provision in her policy allows

The insurer to attempt to recover the damages from the man and/or his insurance company.

All of the following are factors in the determination of actual cash value EXCEPT

Insurance premium paid

Which is NOT true of workers compensation coverage?

Medical payments benefits are limited

When reviewing a standard workers compensation and employers liability policy, the limits of coverage are described in Part One of the policy. The dollar limits of the benefits provided are stated

In the state workers compensation law itself.

Section III of the business auto policy provides physical damage coverage. All of the follwoing are physical damages that may be selected coverages EXCEPT

Limited peril coverage

Which of the following would NOT be covered under the directors and officers liability coverage?

Reimbursement for fines and penalties

Which of the following types of property would be covered under Coverage C - Personal Property in a dwelling policy?

Rowboats

Due to appreciation, the amount of insurance on a business is less than 80% of its actual value on the date of the loss. Which of the following is ture?

The coinsurance penalty applies.

Which of the follwing is FALSE concerning liability coverage of a business auto policy

The company will reimburse the insured for all loss of earnings

Which would NOT be covered by an insured's uninsured motorist coverage?

The insured causes a head-on collision with the car of an uninsured motorist.

An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as

Twisting

Your friend's dog that you are keeping while the friend is out of a town bit a visitor in your home. Does your homeowners liability coverage apply?

Yes. the coverage would apply for any animal in your care.

Which of the following would NOT be eligible for coverage under a personal auto policy

A vehicle purchased 90 days ago

An insured's limit of liability applies to a total of damages for bodily injury and property damage resulting from one accident, which may be used in any combination of amounts, not to exceed the single limit. What type of limit does this insured have?

Combined Single

According to the principles of ocean marine insurance, a total loss may occur in which of the following ways?

Actual

An insured has a maximum limit of coverage available under her liability policy during a policy year, regardless of the number of claims made or the number of accidents. Her limits are restored at the policy anniversary. What type of limit does this insured have?

Aggregate