insurance exam (part 5)

within how many years of a loss may an insured bring a lawsuit against an insurer, according to the dwelling policy?

2 years

in return for premium, an insurance company must

Be fair in underwriting and pay covered losses.

Which of the following statements is true concerning the special form dwelling policy?

Coverage A is for all-risk perils, and Coverage C is for the broad form perils

An insured's house becomes uninhabitable due to damage by a fire. As a result, the insured has to rent an apartment until repairs are made. Which type of coverage under the dwelling policy will pay for the expense of renting the apartment?

Coverage E- additional living expense

which of the following would NOT qualify as a hired auto?

an auto borrowed from an employee

A policy that insures all property at multiple locations for a single amount is referred to as

blanket

a liability policy that provides coverage for a claim for injury or damage if the claim is first reported or filed against the insured during the policy period is called

claims-made form

what is the title of the chief of the Department of Insurance?

commissioner

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT

conditions

an insurance company has published a *brochure* that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?

false advertising

Duties of the insurer found in property policy conditions include all of the following EXCEPT

notify the insured in the event of financial difficulty

Which of the following would NOT be considered a flood?

sewer backup

which of the following losses *would* be covered under the property damage liability coverage of a personal auto policy?

the insured damages a rented garage when he failed to stop in time

under which of the following circumstances would an insurer be allowed to cancel a dwelling policy midterm?

the insured knowingly lied about the year the property was constructed

In forming an insurance contract, when does acceptance usually occur?

when an insurer's underwriter approves coverage