Insurance exam 12

The insured owns a one-family dwelling with a detached garage. The dwelling is insured for $200,000. How much coverage applies to the detached garage? Answer Choices: $10,000. $15,000. $20,000. $0.

$20,000.

Adjusters in Texas are required to keep records of the continuing education courses they have taken to meet the license renewal requirement. How long are licensees required to keep these records? Answer Choices: 7 years. 4 years. 2 years. 5 years.

4 years.

All of the following are Texas adjusters who are not permitted by law to adjust a loss related to roofing damage on behalf of an insurance company, EXCEPT: Answer Choices: An adjuster who is also a roofing contractor. An adjuster that has taken roofing classes and is capable of repairing a damaged roof. An adjuster who sells roofing products and services. An adjuster who also holds a controlling interest in a roofing-related business.

An adjuster that has taken roofing classes and is capable of repairing a damaged roof.

Under a personal property floater, a loss is covered when it occurs: Answer Choices: Anywhere in the world, except for fine arts. In the United States only. In the United States and Canada only. In the United States, Canada, and Mexico only.

Anywhere in the world, except for fine arts.

Which of the following statements is TRUE regarding the "debris removal" coverage of the Dwelling forms? Answer Choices: Debris removal is not covered. Debris removal coverage is in addition to the limits applicable to dwelling and contents coverage. There is a specific limit that applies. Coverage A and Coverage B both include an amount for debris removal.

Coverage A and Coverage B both include an amount for debris removal.

Bill may be negligent if he: Answer Choices: Fails to do what a reasonably prudent person would do in the same circumstance. Injures another person even though he acted prudently. Commits a deliberate act with the intent to injure another person. Hires a nefarious person to deliberately damage the property of another person.

Fails to do what a reasonably prudent person would do in the same circumstance.

What is the difference between a Businessowners policy and a Commercial Property policy? I. The Businessowners policy automatically provides earthquake coverage whereas a Commercial Property policy does not. II. The Businessowners policy includes liability coverage, while a Commercial Property policy would not. Answer Choices: I only II only Both I and II Neither I nor II

II only

Isabelle is covered under a standard HO-6 form and must vacate her condominium because an adjacent unit has suffered extensive fire damage. Isabelle will need to collect additional living expenses from Coverage D of her HO-6 form. How will this amount be calculated? Answer Choices: Isabelle will receive 50% of the Coverage C limit she selected when she purchased the policy. Isabelle will receive 30% of the Coverage C limit she selected when she purchased the policy. The HO-6 specifies a Coverage D limit of $5,000. The HO-6 specifies a Coverage D limit of $3,000.

Isabelle will receive 50% of the Coverage C limit she selected when she purchased the policy.

The insured is transporting his yacht on its trailer and pulling it with his truck. The trailer separates from the truck hitch and the boat strikes another vehicle. There is property damage and bodily injury to a third party. The yacht and trailer are a total loss. What coverage would apply under the yacht policy? Answer Choices: All the damages would be covered Only the third party damages would be covered Only the damage to the yacht and trailer None of the damages are covered

Only the damage to the yacht and trailer

What does "Transfer Of Your Rights And Duties Under This Policy" refer to in the BOP? Answer Choices: The Other Insurance Clause The Assignment Clause The Coinsurance Clause The Subrogation Clause

The Subrogation Clause the insurance company assumes the rights and duties of the insured to seek reimbursement from a third party that caused the loss. The subrogation clause within the policy transfers the rights and duties of the insured to the insurance company.

Most inland marine "all risk" forms exclude loss or damage caused by: Answer Choices: Smoke. Vandalism. War. Vehicles.

War.

Which of the following statements is FALSE regarding a released bill of lading? Answer Choices: The carrier agrees to over insure the cargo so that the shipper will be compensated for all losses. The common carrier may limit its liability by using this type of contract. The document serves as a receipt from the carrier to the shipper of the goods. No stated value is listed on a released bill of lading.

the carrier agrees to over insure the cargo so that the shipper will be compensated for all losses.

What is the limit of insurance that applies to "property in transit" under the extensions of coverage on the ISO standard BOP policy? Answer Choices: $1,000 $2,500 $5,000 $10,000

$10,000

All of the following would be considered an "insured" on a Homeowners policy, EXCEPT: Answer Choices: All residents who are related to the named insured. A trust. A non-related tenant living in the insured residence. A non-related minor being cared for by the named insured's family.

A non-related tenant living in the insured residence.

An inland marine coverage which covers the insured's merchandise held for sale, such property that is sold but not delivered, customers property in the care and custody of the insured, and property being transported to or from the insured, is a: Answer Choices: Dealers form Commercial articles floater. Floor plan merchandise coverage form. Bailee's customers policy.

Dealers form

All of the following statements are true of liability insurance, EXCEPT: Answer Choices: Legal liability does not have to be determined by a court of law before an insurer will pay. Liability insurance only indemnifies third parties. Liability insurance protects the policyholder against damages he/she causes a third party. Liability insurance provides indemnification for the insured.

Liability insurance provides indemnification for the insured.

Which of the following would NOT be excluded under the BOP? Answer Choices: Water seeps through the foundation of an insured's building causing damage. Additional expenses incurred when the insured's damaged building is required to be torn down and rebuilt due to a city ordinance. Loss caused by a power failure that occurs on the insured's premises. Loss that occurs to the insured's business due to a riot in the city.

Loss caused by a power failure that occurs on the insured's premises.

Which of the following is TRUE regarding nuclear energy loss coverage under a Personal Automobile policy? Answer Choices: The personal automobile policy will provide coverage for bodily injury or property damage caused by the insured's nuclear energy losses, but only if the nuclear energy loss occurs on a public roadway. The personal automobile policy will provide coverage for bodily injury or property damage caused by the insured's nuclear energy losses, if the limits of the insured's nuclear energy liability policy are exhausted. The personal automobile policy will not provide coverage for bodily injury or property damage caused by the insured's nuclear energy losses. The personal automobile policy will not provide coverage for bodily injury or property damage caused by the insured's nuclear energy losses, unless the nuclear energy loss is not radioactive.

The personal automobile policy will not provide coverage for bodily injury or property damage caused by the insured's nuclear energy losses.