guarantee exam questions
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
The commercial crime coverage that would cover losses resulting from the theft of money, securities, and other property by employees is
Employee Theft
What sublimit in a liability policy puts a ceiling on the payment for all claims that arise from a single accident?
Per occurrence
During the 120 day period after receiving notice of cancellation in an agency contract, the agency can continue to perform which of the following transactions?
Perform routine adjustment of losses
What type of insurer uses a formal sharing agreement?
Reciprocal Insurers
The equipment breakdown coverage form covers loss on a(n)
Replacement cost basis
How long must an agent, broker, or adjuster maintain records of transaction under their license?
5 years
In the event that an insurer cancels a Fire policy due to nonpayment of the premium, how much prior written notice must be given to the named insured?
5 days
Whenever a notice of cancellation, nonrenewal, or offer to renew is furnished to an insured, a copy of the notice or offer must be provided to the insured's agent or broker of record within
5 working days
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
An executive is accused of sexual harassment. What type of coverage would respond?
Employment practices liability
A structure may be eligible for coverage under the National Flood Insurance Program if it meets all of the following requirements EXCEPT
Is entirely over water
Which of the following describes an insurer's responsibility for payment under the policy, as stated in the common policy provisions?
Limits of liability
Which of the following exposures is NOT covered under a homeowners policy?
Medical payments to an insured
All of the following are true regarding the federal Fair Credit Reporting Act except
Reports may be sent to anyone who requests one.
Who is responsible for verifying that an insurer is authorized to sell insurance policies in this state?
Soliciting producer
Before an insurer may transact business in a specific state, they must apply for a license or Certificate of Authority from the state department of insurance and meet
Solvency requirements
The businessowners policy (BOP) extension coverage form for personal property off-premises is limited to
$10,000
If an individual willfully violates provisions of the Fair Credit Reporting Act, what is the maximum civil penalty?
$2,500
When an insured auto is damaged by a hit and run or phantom vehicle, repairs made under the Underinsured Motorist property damage may be subject to a maximum deductible of
$300
Using the pro rata method, if a property is covered by Company A for $20,000 and Company B covers the same property for $40,000, how much will Company A pay on a $24,000 loss?
$8,000
Within how many business days must an insurance producer reply to an inquiry of the Commissioner relative to the business of insurance?
15
How much notice must an insurer give if it is cancelling or non renewing a medical malpractice policy?
90 days
What two policy components are part of every commercial package policy?
Common policy declarations and common policy conditions
Which homeowners form provides open peril coverage for dwelling (Coverage A) and contents (Coverage C)?
Form 5
How does insurance distribute the financial consequences of individual losses?
It transfers the risk to all persons insured
Which of the following statements is NOT true of a commercial umbrella liability policy?
It would automatically cover all losses as they occur.
Which of the following describes an insurer's responsibility for payment under a policy, as stated in the common policy provisions?
Limits of Liability
An insured is injured while driving his own car. Which of the following coverages will pay for the loss?
Part B- Medical Payments
An automobile liability insurance policy is written with a(n)
Per accident limit
In contrasting stock insurers with mutual insurers, which statement is true?
Stock insurers are owned by the shareholders and issue nonparticipating parties
Which of the following symbols in a business auto policy indicates that coverage for newly acquired vehicles applies if the insurer already covers all autos owned by the insured?
Symbol 17
Who acts on behalf of the principal?
agent
All advertisements, regardless of their source of creation, are the responsibility of the
insurer
Which of the following would not be eligible for coverage under a personal auto policy?
A vehicle purchased 90 days ago
A general liability policy will respond to claims against an insured when bodily injury or property damage is caused by
An insured's negligence
What does HO personal property coverage NOT cover?
Personal property of roomers not related to the insured
The commercial general liability coverage Part A- Bodily injury and Property Damage provides coverage for which of the following?
Premises
When does the federal emergency flood insurance program go into effect?
When a community applies for the program.
An insured is at fault in an auto accident, damaging the insured's own car. The damage to the car is covered by
The insured's collision coverage
Producer licenses are valid from the initial licensing or reinstatement period until
The last day of the licensee's birth month plus one year
An insured has decided to never drive another vehicle and wants to transfer his auto policy insurance to his wife. What does the insured need to transfer the policy?
The written consent of the insurer
When symbol 7 is provided, which of the following statements is true with regards to newly acquired autos?
They are covered if they are used to replace previously owned autos with that coverage
What is an insured contract?
Those contracts that are automatically covered under the exposure of premises coverage in a general liability insurance contract
Fair rental value coverage in the dwelling policy is similar to which homeowners policy form?
Loss of use
Policies insuring against loss resulting from liability for bodily injury, death, or property damage must also cover damages from owners or operators of all of the following EXCEPT
Motorcycles
Which statement best describes agreement as it relates to insurance contracts?
One party accepts the exact terms of the other party's offer
Which of the following would be covered under a building and personal property coverage form?
Outdoor sign
in reference to insurable interest, which of the following is NOT an element of insurable risk?
Personal
An insured has a personal auto policy with the following limits: 50/100/25. The number 25 refers to
Property Damage Coverage
The exact, direct, uninterrupted cause of the loss is the
Proximate cause
What is a sudden, unplanned and unexpected event, not under the control of the insured resulting in injury or damage that is neither expected nor intended called?
Accident
Under a Commercial General Liability policy, which of the following is NOT considered mobile equipment?
An automobile used as a company car by a real estate company
A performance bond is an example of which of the following types of bonds?
Contract
Which of the following exclusions would specifically fall under Coverage E?
Contractual liability
An insurance producer just decided to change his email address. How long does he have to notify the Commissioner of this change?
30 days
In Washington, after an insurance contract goes into effect, it can be cancelled for any reason within
60 days
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
Which of the following is FALSE concerning liability coverage of a business auto policy?
The company will reimburse the insured for loss of all earnings
If an insurance policy has the additional coverage provision, how does it affect the policy premium?
There is no additional premium
The transfer of a legal right or interest in an insurance policy is called
Assignment
A golfer slices a tee shot and the ball goes through the window of a house beside the fairway. The broken glass is paid for by
The golfer's homeowners liability coverage
For there to be a negligent liability, all of the following must exist except?
A reasonable expectation that the act may cause injury or damage
