Insurance Exam 16

The standard deductible in Section I of the Homeowners forms is: Answer Choices: $500 $250 $100 $1000

$500

The NAIC Model Unfair Claim Settlement Practices Act specifies that the insurance company must provide the proper claim forms with a reasonable explanation of how to use them to the claimant within: Answer Choices: 15 calendar days of the request. 30 calendar days of the request. 20 working days of the request. 10 calendar days of the request.

15 calendar days of the request.

Businessowners policies provide "Preservation of Property" coverage when property is removed from the premises to protect it from a covered cause of loss. The coverage will apply at other locations for up to: Answer Choices: 60 days 30 days 10 days 20 days

30 days

In the insurance industry, which of the following terms refers to continuous or repeated exposure to conditions that may result in bodily injury or property damage neither expected nor intended? Answer Choices: An occurrence. An accident. An event. A condition.

An occurrence.

Brittany is a licensed adjuster in Texas. She failed to renew her license at the specified time, and now her license has been expired for 60 days. Which of the following best describes the next step Brittany should take? Answer Choices: Brittany can still apply to renew her license, subject to an automatic fine. Brittany will be required to apply to the Department for a new license. Brittany will be required to take the state licensing exam again. Brittany will need to do nothing because Texas Adjuster licenses are perpetual and her renewal will come through within 90 days of her license expiration date.

Brittany can still apply to renew her license, subject to an automatic fine.

Which of the following would be covered under Coverage A - Building of the Business and Personal Property coverage form if the damage was caused by a covered cause of loss? Answer Choices: Damage to a new window display built at the expense of the insured who is a tenant in the commercial building. Damage to the insured's lawn mower used by the company maintenance crew. Damage to a computer dropped off by the owner to be repaired by the insured computer repair shop. The value of the labor, materials, or supplies the insured business had already used to repair a lawn mower dropped off at the insured location by its owner for servicing when a fire destroyed it. location.

Damage to the insured's lawn mower used by the company maintenance crew.

Which of the following would be covered under employee dishonesty? Answer Choices: Money lost on the way to the bank Inventory shortages Embezzlement Robbery of the employee

Embezzlement

When a liability policy is contested, which of the following entities ultimately determines legal liability? I. The insurance company. II. A court of law. III. The claimant. Answer Choices: I or II I only II only III only

II only

Any misinformation provided by an applicant which is such that the insurance company would not have issued a policy if the true facts were known is: Answer Choices: Material misrepresentation. Malfeasance. Fraud. Concealment.

Material misrepresentation

The additional coverage under the Commercial Property policy for electronic data provides $2,500 for the cost of replacing and restoring lost information contained on electronic media. Which of the following types of electronic data is NOT included in this additional coverage? Answer Choices: Data controlling the building elevator Data controlling the heating, ventilation, lighting and air conditioning systems Data controlling the building security system None of these items are subject to this limit

None of these items are subject to this limit

Homeowner policies typically provide coverage for all of the following, EXCEPT: Answer Choices: Personal liability. Personal injury. Claim expenses. Medical payments.

Personal injury.

The Coverage C - Uninsured Motorists coverage of a standard, unendorsed Personal Automobile policy applies to all of the following, EXCEPT: Answer Choices: Bodily injury sustained by an insured or occupants of the insured vehicle. The vehicle that is responsible for the bodily injury sustained must meet the definition of an uninsured vehicle. The insured or occupants of the insured vehicle must be legally entitled to recover damages for bodily injury. Property damage sustained by the insured vehicle by an uninsured vehicle.

Property damage sustained by the insured vehicle by an uninsured vehicle.

Emma carries Commercial Property insurance to cover her commercial building, her personal property and the property belonging to others in her care, custody and control. Emma's insurance agent tells her that in case of a loss where she is negligent, the owner of the property belonging to others may want their property covered on a replacement cost basis. What coverage must Emma purchase to be properly covered? Answer Choices: She will need to purchase a "Bailee" policy, because her Commercial Property policy will not cover the personal property of others. It is not necessary for her to purchase any additional coverage because the Commercial Property form automatically covers the property of customers on a replacement cost basis. It is not necessary for her to purchase any additional coverage because the Commercial Property form automatically covers the property of others on an unlimited basis. She will need to carry a sufficient coverage limit to cover the amount of the personal property of others that she has on the premises, and then purchase additional replacement cost coverage for the customer's property.

She will need to carry a sufficient coverage limit to cover the amount of the personal property of others that she has on the premises, and then purchase additional replacement cost coverage for the customer's property.

When an insured is fulfilling the duty of proving a loss by taking an inventory of the damaged property, who pays the expenses incurred by the insured? Answer Choices: The insured. The insurer. The adjuster will provide funds to pay for these expenses. Who pays these expenses will be negotiated at the settlement of the claim.

The insured.

Which of the following would be covered under Coverage B of the Business and Personal Property coverage form? Answer Choices: A piece of drilling equipment that is drilled into the cement floor of the insured premises. The stock held for sale by the insured business. A lawn mower owned by the insured business, used by the maintenance crew to clear a vacant lot adjacent to the insured business about 200 yards from the building. The drawings of a client architect that were dropped off at the insured premises for the insured contractor to view

The stock held for sale by the insured business.

When the Agreed Value option is used with a Business Income form, the coinsurance requirement is: Answer Choices: Waived. Still applies. Converted to a reporting form. Never reinstated.

Waived.