insurance practice questions

which of the following licensees is classified as a representative of the insurance company and not allowed to represent an insured or claimant

producer

in insurance terms what are components

the actors that determine rates

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

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be

authrorized

an insurance contract must contain all of the following to be considered legally binding EXCEPT

beneficiary's consent

Under the HO-4 and HO-6 homeowners policy forms, property is insured against

broad form perils

the liability coverage of the business owners policy is written on a

business owners liability coverage form

homeowners policies provide coverage for

business property while on the residence premises

which of the following is an additional coverage that is covered by the broad causes of loss form

collapse

which statement regarding insurable risk is not correct

insureds cannot be randomly selected

Which inland marine coverage condition says that an insurer will settle with the actual owners of property involved in a loss?

privilege to adjust with the owner

the Limited Fungi, wet or dry rot, or bacteria coverage endorsement applies to which type of losses

property and liability

limited fungi, wet or dry rot, or bacteria endorsement in HO policies applies to

property and liability losses

While an insured was towing a utility trailer with his auto, the trailer came loose and ran into a store front. What part of the insured's auto policy would pay for the damage to the store?

property damage liability

Who would participate in a Write Your Own (WYO) flood insurance program?

private insurers that wish to write and service National Flood Insurance policies on a no risk-bearing basis

according to the loss payment condition in HO policies, losses must be paid within how many days of the insurer receiving proof of loss

60 days

Ocean marine policies commonly refer to the person covered by the policy as the

assured`

for how long must a company maintain a complete file of all advertisements used

at least 4 years

insurable interest in a property policy must be proven

at the lime of loss

under the personal auto policy, liability for bodily injury resulting from the insured's use of a non owned automobile is

provided by the insured's policy on an excess basis

All of the following are considered parts of the policy structure EXCEPT

provisions

all of the following are considered parts of the policy structure except

provisions

All of the following are regarding rebates EXCEPT

rebates are allowed if it's in the best interest of the client

all of the following are true regarding rebates EXCEPT

rebates are allowed if it's in the best interest of the client

what type of information would be found in a policy's insuring agreement

renewal dates

which method of loss valuation is contrary to the basic concept of indemnity

replacement cost

In property insurance, actual cash value is defined as which of the following?

replacement cost at the time of the loss, less depreciation

a business owner whose inventory changes significantly throughout the year should consider having coverage written on what type of form

reporting form

adverse selection is a concept best described as

risks with higher probability of loss seeking insurance more often than other risks

If the insured owns a watch valued at $10,000, full coverage can be provided on a homeowners policy by purchasing the

scheduled personal property endoresment

If the insured owns a watch valued at $10,000 full coverage can be provided on a home owners policy by purchasing the

scheduled personal property endorsement

in a farm policy, any cost incurred by the insurer for the investigation or defense of a claim will be paid by

the insurer

if more than one person has an insurable interest in the property covered under a dwelling policy

the insurer will be liable for only the insured's interest in the damage property

a licensee serving in the military is unable to fulfill her continuing education requirement. What would the licensee have to do to renew the license

the licensee may submit a request to the department to have requirements and fees waived. The department will then determine if the request is permissible

the members of a limited liability company are insureds under a business owners policy (BOP) if

the limited liability company is designated as the name insured

on a DP-3 dwelling property special form policy, the coverage provided for personal property is

the same as provided on the DP-2 Broad form

which of the following would determine minimum and maximum limits for FAIR plan rates

the state

all of the following are perils covered under the broad form dwelling policy except

theft

all of the following are other coverages included in both the broad and special form dwelling policy EXCEPT

theft of personal property

when an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following

consideration

which of the following reports will provide the underwriter with the information about an insurance applicant's credit

consumer report

the designation symbols used in commercial auto policies can be found in which policy section

covered auto

under the examinations of books and records condition, the insurance company has the right to examine and audit the insured's books and records related to the policy

during the policy period and for up to 3 years after the termination of the policy

the section of an insurance policy that details what perils are not insured against and what persons are not insured is known as the

exclusions

a house insured under a dwelling policy has been vacant for 70 consecutive days. Which of the following statements is true

loss by vandalism and malicious mischief is excluded

an insured is driving her automobile and strike a large pothole that causes a flat tire. Which coverage of the insured's personal auto policy will pay for the repair

loss is not covered

when a vehicle travels from one state to another, what happens to the limits of policy liability in a personal auto policy

they do not change

a $100,000 house insured on a policy with an 80% coinsurance requirement has a fire that cause $40,000 of damage; the owner has a policy with $60,000 coverage. How much can the owner collect for his loss

$30,000

a grave marker was damaged by vandals. it would cost $3,000 to have the damage repaired. under these circumstances, how much would a homeowners policy pay

$3000

A common exclusion found under physical damage to your auto includes

mechanical breakdown

a common exclusion found under physical damage to your auto includes

mechanical breakdown

on its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. the company is guilty of

misrepresentation

an insured's business is damaged because of a fire, and he is forced to close the business temporarily for repairs. As a result, the insured lost income. What type of loss is this?

consequential

the difference in the contents coverage on an HO-3 and HO-5 is which of the following

contents are covered open peril on HO-5, and named peril on HO-3

which of the following would NOT be considered an unfair and deceptive practice

controlled business

because an insured owns a lot of expensive jewelry, her insurance agent has advised her purchase a scheduled personal property endorsement. If the insured adds this endorsement to her homeowners policy, which of the following would be correct

coverage C limits will no longer apply to the jewelry insured by the endorsement

in a farm policy, which of the following coverages would reimburse the insured for loss of rental income following damages to the insured dwelling by an insured peril

coverage D

with regards to a homeowners policy, which coverage provides for indirect or consequential losses

coverage D

in dwelling policies, automatic increase in insurance is

coverage by endorsement

which of the following is a unit of measurement an underwriter uses when determining the premium rates for insurance

exposure

which of the following is an example of an unfair claims settlement practice

failure to promptly settled a claim when liability has been clearly established

an insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. what is an examply of

false advertising

if an insurer changes a form that it uses to transact insurance, it must do which of the following

file the form with the Commissioner for approval

which of the following claims would be included under the dwelling policy

fire damage to the insured's stored in the attached garage

which of the following will be covered by aviation hull insurance

fuselage and wings In aviation insurance, hull refers to the fuselage, wings, tail, rudders, and other major structural features of an aircraft. The hull policy covers the airplane and its parts

what type of compensatory damages will pay for pain and suffering disfigurement

general

Events or conditions that increase the chances of an insured loss occurring are referred to as

hazards

the Pennsylvania Property and Casualty Insurance Guaranty Association provides protection to insureds in the event of

insurance company insolvency

a deliberate act that causes harm to another person, regardless of whether the harm is intended is called a

intentional tort

which of the following would NOT be covered by HO liability insurance

intentional tort

which of the following does a producer not have the authority to do

issue policies

all of the following statements describe the concept of strict liability EXCEPT

it is imposed on defendants engaged in hazardous activities

in a dwelling policy, which of the following is true regarding personal liability coverage

it must be added as a supplement or written as a separate policy

all of the following are true of coverage B- other structure except

it must be added by endorsement to a homeowners policy

extended non owned coverage endorsement in a PAP broadens which of the following coverages

liability and medical payments

extended nonowned coverage endorsement in a PAP broadens which of the following coverages

liability and medical payments

which of the following policy provisions would automatically broaden coverage under a policy without requiring additional premium

liberalization

what provision in a property policy applies when the insurer broadens coverage but does not increase the premium

liberalization clause

Under the dwelling policy, Coverage C - Personal Property is

limited to covering a servant's property while at the insured location

the regular National Flood Insurance Program would insure an eligible single-family dwelling for up to

$250,000

Equipment breakdown coverages is written with a single limit of insurance per accident. What is the sublimit for hazardous substance cleanup or repair or replacement of contaminated property

$25000

a premium discount is the term that describes when an insured owes a total standard premium greater than

$5,000

under the commercial crime coverage inside the premises- robbery or safe burglary of other property, what is the special per occurrence limit that applies to loss or damage to precious metals, precious and semiprecious stones, pearls, furs, manuscripts, drawings, or records

$5,000

when a producer holding a certificate or a broker's license has a change in his/ her residence or business address, he/ she must notify the department of insurance and any company for which the producer holds an appointment within

30 days

if a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply

5 days

Under workers compensation, the employer or insurance company must designate how many health care providers from which an injured employee may seek care

6

the 1980 Act requires FCIC to offer one price election that is not less than what percent of the projected market price for the commodity

90%

which inland marine form would provide the best protection for a dry cleaning company against loss or damage to their customer's property while in the care, custody, and control of the dry cleaners

Bailees customer policy

which of the following statement regarding coverage for the flood and earthquake perils is true

Both flood and earthquake are excluded perils in all property policies

which of the following is eligible for a business owners policy

a 6-story office building with less than 100,000 square feet total area

a contract for the transport of goods between the shipper and the carrier is called

a bill of lading

a tornado that destroys property would be an example of which of the following

a peril

which of the following statements is true regarding the premium computation for workers compensation insurance

a premium auditor has the right to examine the insured's compensation records at the end of the policy period to determine the actual premium basis

when other insurance is written on the same basis as a commercial property policy, the obligation of the insurer is to cover

a share of the loss

a unique feature in a bailee form is that it covers

customers property whether or not the insured has been negligent

what term includes damage where the insured peril was the proximate cause of loss

direct loss

which commercial crime form would provide coverage for a loss that did not necessarily happen during the policy period but was revealed during the policy period

discovery form

According to the appraisal condition of a homeowners policy, what procedure may be followed if the insurer and insured do not agree as to the size of a loss?

either party may make a written request for an appraisal

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

notify the insured in the event of financial difficulty

a producer has become disabled. In order to keep his business going, what may his designee do

obtain a temporary license

ABC Insurance Company wishes to begin transacting business in Pennsylvania. Before it can do so, it must do which of the following

obtain certificate of authority

in order for a Protection and Indemnity policy to cover a loss which of the following must be TRUE

the insured must be legally liable for the loss

what will happen if a house covered by a standard mortgage clause is a total loss

the insurer pays the mortgagee according to the mortgagees interest in the property

if more than one person has an insurable interest in the property covered under a dwelling policy

the insurer will be liable for only the insured's interest in the damaged property

the most the insurer will pay for a loss under a business owners policy is

the limit of insurance after the deductible is paid

the individual named insured endorsement under a commercial auto policy provides coverage for which of the following

the sole proprietor of the business and his or her family members

A specific coverage part is listed on the commercial package policy declarations page, but there is no premium shown. What does that mean

there is no coverage

the declarations page of the homeowners policy provides all of the following information EXCEPT

a statement that the earthquake damage is not covered

for the purpose of insurance, an owner-occupied residential dwelling is

a structure of not more than 4 units, one of which is occupied by the owner

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

an unfair trade practice

insurers are required to keep records. When may the Department examine these records

at any time

a producers license must be renewed

biennially - every 2 years

a professional who wants coverage for all liability exposures should purchase what form of liability insurance

commercial general and professional

a producer who fails to segregate premium monies from his own personal funds is guilty of

commingling

which of the following authorities is authorized to issue a temporary insurance producer's license

commisioner

the insurance code identifies all of these as prohibited acts that can cause suspension, revocation or denial of an insurance producer license for a licensee or applicant, with the exception of

commission of any misdemeanor

what terms best describes the act of withholding material information that would be crucial to an underwriting decision

concealment

in which of the following sections of a commercial auto policy will you find specific information about the policy period

conditions

the requirement that agents not commingle insurance monies with their own funds is known as

fiduciary responsibility

with regard to fire insurance premiums, structures with which of the following type of construction would most likely have the most favorable premium rate for the peril of fire

fire resistive

which of the following would be named on the declarations page of a property or a liability policy

first name insured

in farm insurance, Coverage I- Personal and Advertising injury liability for suits alleging personal injury is most similar to the coverage found in which coverage form

general liability

which coverage would a business owner need in a crime policy to cover money that may be stolen from a messengar

outside the premises

an insured has a liability policy that sets the amount for all claims that arise from a single incident at $50,000. which type of limit of liability does this insured's policy have

per occurrence

a customer was injured in a supermarket parking lot when a grocery cart collided with the customers leg. coverage for this claim would be provided under

premises and operations

the policy conditions define

how parties to the contract must act following a loss

in liability insurance policies, supplementary payments are made

in addition to the limit of liability

a basic dwelling policy automatically provides coverage against fire, lightning, and

internal explosion

when is a hired and non owned auto liability endorsement available in business owners policy (BOP)

only if the insured does not have commercial auto coverage

what method of premium computation relates an employers losses, payroll, and premiums to the rating bureau's classifications of operations

experience modification factor

to comply with requirements for insurance for public liability under the motor carrier act of 1980, which endorsement is added to motor carrier coverage form

MCS 90

Which crime coverage form is used to cover securities held in trust by another party as collateral for some obligation

coverage J- securities deposited with others

Another person has alleged that you are responsible for damage to their property. You notify your homeowners insurer. The insurer will

either pay or defend as it decides

What is the purpose of the coinsurance clause found in property insurance policies

encourage the insured to insure the property closer to its full value

a producer sold an insurance policy. Subsequently, his license was suspended. In this case, how much of the commission will the producer recieve

all

the insured with a homeowners policy has had damage to his property caused by a volcano. Which of the following is true

all volcanic eruptions within a 72- hour period will be considered one occurrence

the inspections and surveys condition in a business owners policy

allows the insurer the right to inspect the insured's premises

in insurance, an offer is usually made when

an applicants submits an application to the insurer

in order to reject uninsured motorist coverage, the first named insured must make the rejection

in writing at the time of application

the Pennsylvania Property and Casualty Insurance Guaranty Association provides protection to insureds in event of

insurance company insolvency

which of the following would be covered under the Broad Form (DP-2) policy's falling object

interior building damage if the exterior was damaged first

for the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become

larger

the transfer of an insured's right to seek damages from a negligent parry to the insurer is found in which of the following clauses

subrogation

an insured suffers a windstorm loss in which the insured's driveway is blocked by two of the insured's trees and two of the neighbor's trees. The total amount of the removal adds up the following: three trees at $300 per tree, and one tree at $600. How much will the insurer pay for the loss

$1,000

the pollutant cleanup and removal coverage in the business owners policy has a limit of

$10,000 in any 12-month period

A policyholder has an equipment breakdown policy with a $200,000 limit. If a boiler explosion causes $100,000 damage to the boiler itself, $50,000 damage to the insured's buildings, and $30,000 of expediting expenses, how much will the insured collect under the policy

$175,000

which of the following types of valuation works best for property whose value does not fluctuate much

Agreed value

an installation floater is used to insure

Appliances intended to become a permanent part of the building

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

Conditions

in a dwelling policy, which of the following provides coverage for additional living expenses incurred by an owner- occupant in the event of a covered peril makes the premises uninhabitable due to a covered loss

Coverage E

which of these is defined as the maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claims that may be made or the number of accidents that may occur

aggregate limit of liability

which of the following is a mandatory part of an insurance policy that varies with each individual policy

Declarations

FAIR plans are state insurance pools that provide property insurance to high risk areas, such as neighbors that have deteriorated or are in urban decay. What does FAIR stand for

Fair Access to Insurance Requirements

which of the following is the federal body that regulates truckers who travel across state lines

Federal Motor Carrier Safety Administration

An insured condominium unit owner wants to purchase fire and extended coverage for personal property and liability coverage for himself and his family members. He should purchase

Ho-6

an insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act

Illegal under any circumstances

which of the following is NOT a contract bond

Litigation Bond:

when a parent is required to pay for damages caused by his or her children, this is an example of

Vicarious liability

professional photographers and musicians may insure the equipment with

a commercial articles floater

An automobile that is owned by a nontraditional household, not consisting of a husband and wife, may be insured under a personal auto policy if

a joint ownership coverage endorsement is added

when an insurance company uses a policy form that has been developed by an organization, such as ISO, what is usually required to be added to the form so that the policy will conform to the state's insurance regulation

a special provisions endorsement

the personal injury liability endorsement to an HO policy applies to all of the following EXCEPT

a third party breaks a leg when the insured knocks him down

what is a certificate of insurance

a written document showing the types and amounts of insurance that haven been issued to the insured

in a personal auto policy, the medical payments coverage is similar to

accident insurance, because it pays medical expenses regardless of fault

what is a reinsurance

an agreement between a ceding insurer an assuming insurer

which coverage form would provide coverage for all incoming and outgoing shipments

annual transits

which of the following describes contributory negligence

any degree of negligence by the insured party may bar recovery

which of the following would be considered an insured under a business auto coverage form

anyone while using, with permission, a covered auto owned by the named insured

because an agent is using stationery with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe

apparent

which of the following clauses establishes the procedure for determining the amount of a loss when the insurer and the insured cannot agree on the value of property or amount of loss

appraisal clause

which of the following is a statutory defense

comparative negligence

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. from what type of insurer did the insured purchase the policy?

mutual

an insured who has coverage for all this personal property has his TV stolen from the shop of the repairman. The owner of the repair shop filed a claim under the insured's policy, but it paid nothing to the owner of the store. Which provision does the policy have

no benefit to bailee clause

on a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are

not taxable since the IRS treats them as a return of a portion of the premium

an insured has a liability policy that sets the amount for all claims that arise from a single incident at $50,000. Which type of limit of liability does this insured's policy have

per occurrence

which of the following limits, shown in the declarations of a policy, applies to medical expenses

per person a combined single limit of insurance is applicable for all bodily injury and property damage losses that arise from a single occurrence. Medical expenses are limited to the per person limit shown on the declarations

the insurance consultation services exemption act protects insurers from liability actions resulting from

performing or failing to perform services

which of the following symbols is available to an insured with vehicles subject to no-fault coverage

symbol 5

burglary is defined as

taking of property from within the premises leaving visible signs of forced entry

an example of a producer being involved in an unfair trade practice of rebating

telling a client that his first premium will be waived if he purchases the insurance policy today

an insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay

$30,000

all of the following are special personal property limits under a homeowners policy except

$500 for business personal property on the insured premises

what is the civil penalty for the first violation of the Pennsylvania Insurance Fraud Prevention Act

$5000

once it has been reasonably proven that a person has knowingly violated the Insurance Code regarding unfair methods of competition, the Department may impose a civil penalty of

$5000 for each violation

under business owners policy Section I, if an insurer wants to non renew a policy for nonpayment of premium, how many days before the expiration date must the insurer notify the mortgage holder

10 days

what is the maximum number of boarders per unit that would be allowed in the homeowners policy

2

under the additional living expenses coverage, is a civil authority prohibits the insured from using the dwelling because of direct damage to a neighboring location from a peril covered in the insured's policy, loss would be covered up to

2 weeks

coverage for medical payments under a personal auto policy applies to expenses following a covered accident that are incurred and services rendered within what maximum time period

3 years

an insured with a homeowners policy has removed property from the insured location to protect it from loss that could be caused by a covered peril. the removal coverage applies for

30 days

how long is the waiting period upon purchase of flood coverage through NFIP

30 days

within how many days must a producer respond to an inquiry from the commissioner

30 days

what is the maximum length of time that an employee who is partially disabled can receive a loss of time benefits under Workers Compensation

500 weeks

vandalism and malicious mischief would be covered if the insured's premises have been vacant for no more than how many days

60

assuming the insurer and the insured agree to the amount payable for a loss covered under a dwelling policy, how soon after the insurer has received proof of loss must it make payment

60 days

Coverage under the Builders Risk form will end in all of the following situations EXCEPT a) Construction has been abandoned. b) 60 days after the building became occupied. c) The insured has sold the property. d) 60 days after the construction has ended.

60 days after the construction has ended

the dwelling insured on H0-2, H0-3, or H0-5 forms is covered for replacement, provided that it is insured for at least what percentage of replacement cost on the date of loss

80%

the dwelling insured on a HO-2, HO-3, or HO-5 forms is covered for replacement, provided that it is insured for at least what percentage of replacement cost on the date of loss

80%

an insured owns a building that is valued at $400,000. To comply with an 80% coinsurance provision of his insurance policy, how much should he insure the property for

80% of the property's replacement cost or more

an insured owns a building that is valued at $400,000. To comply with the 80% coinsurance provision of his insurance policy, how much should he insure the property form

80% of the property's replacement cost or more

if a licensed person is moving to Pennsylvania, he or she may become licensed as a resident if they submit a completed application within how many days of establishing residence in Pennsylvania with proof of licensing from their prior home state

90

all of the following situations would be covered under a professional liability policy EXCEPT

The failure of an attorney to properly defend a client due to his personal dislike of the client

Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses

additional coverage

an insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. the neighbor, who was sitting on the porch, is injured. the insured's liability policy has a limit of $500,000. this amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit liability does the insured have

combined single

all of the following are classes of inland marine risks except

common carrier cargo liability

a builders risk form is most often written as which of the following

completed value form

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

additional coverages in the liability section of a homeowners policy cover all of the following except

damage to a third-party property for which the insured is legally liable

the part of a property policy that shows the amount of insurance, premium, and policy term is the

declarations

if an insurer appoints a producer, which authority must be notified

department of insurance

a beauty parlor burns to the ground. What type of loss is this to the owner

direct

all of the following are optional coverages that may be attached to an H0-3 policy EXCEPT

dwelling replacement cost

which of the following is true regarding the Difference in Conditions (DIC) policies

each DIC policy is an individually written contract that contains provisions unique to the particular risk that it covers

The Subsequent Injury Fund was established to

encourage employers to hire workers who had suffered prior compensable injuries

how often must the commissioner examine rating organizations

every 5 years

which of the following is NOT a P&I exclusion

excess coverage

the provision in Pennsylvania workers compensation that requires an employer to pay compensation, without regard to negligence, according to compensation schedule set by law, and for the injured employee to agree to limit the employer's responsibility to the amount of workers compensation to which he or she is entitled, is callled

exclusive remedy

under which of the following circumstances can financial institutions share insurance coverage information with third parties, for the purpose of soliciting the purchase of insurance

if a consumer does not sign and return the notice of disclosure within 30 days

which of the following endorsements is used by individual business owners who use company vehicles for personal use rather than purchasing a personal vehicle

individual named insured

persons covered under an insurance policy, whether named or not, are known as the

insureds

after a storm dumps several inches of snow, an insured spend several hours clearing his sidewalk and driveway. Later that night it begins to sleet. Before the insured can clear his walks again, his neighbor slips and falls while walking past the insured's house, breaking his arm. Which defense will reduce recovery for the neighbor's injury

intervening cause

which of the following is NOT true regarding a certificate of authority

it it issue to group insurance participants

which of the following statements concerning the builder risk coverage form is correct

it may be written on a reporting form for the completed value of structure

Which of the following is NOT one of the 3 requirements for property to be eligible for FAIR plan coverage

it must be valued at an amount under the maximum value amount set by the state

if an employer in a state with elective workers compensation laws chooses not to subject to those laws, what does the employer lose

its common law defense against liability suits

the form of payment bond that protects an owner contracting for work against liens from subcontractors, suppliers, or laborers who are not paid for their services and materials by the general contract is called

labor and material bond

which of the following lists all the required elements for establishing a charge of negligence

legal duty owed, breach of legal duty owed, proximate cause, damages

which rating method provides an insurer with that portion of a rate that does not include provisions of expenses (other than adjusting expenses) or profit and is based on historical aggregate loss and loss adjustment expenses projected through development to their ultimate value and through trending to a future point in time

loss costs rating

A shipload of cement has bee damaged by water and has become concrete. According to general cargo insurance terms in Ocean Marine policies, this is considered

loss of specie

all of the following are exclusions under farm property coverage EXCEPT

loss of use

which of the following is NOT true concerning the fair rental value coverage provided in a dwelling policy

loss or expenses caused by the cancellation of a lease is covered

The process of determining the premium charged and how much insurance is required for a particular loss is called

loss valuation

the process of determining the premium charged and how much insurance is required for a particular loss is called

loss valuation

what losses are considered when computing individual FMHA emergency loan eligibility

losses on crops which the farmer chose to insure will be considered

An insured's home is mortgaged by the local bank. The insured is required to carry insurance on the home, showing the bank as the mortgagee. If the home is damaged by a covered peril, which of the following is true?

losses will be paid to the mortgagee and mortgagor as their interest appears

rates that are established based on the similarities of the risk with other risks are known as

manual rates

An insured stated on her application for life insurance that she had never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied

material misrepresentation

which of the following homeowners endorsements covers liability exposures arising from an incidental business conducted within a building on the residence premises

permitted incidental occupancies

all of the following are additional liability coverages automatically provided in a homeowners policy EXCEPT

personal injury

who might receive dividends from a mutual insurer

policyholders

all of the following are examples of risk rention except

premiums

what is the term for the entity that an agent represents regarding contractual agreements with third parties

principal

FAIR plans are provided by

private insurers

Which of the following endorsements is used to insure coverage C (personal property) for values beyond the limitations of the homeowners policy

scheduled personal property endorsement

workers compensation statues require employers to meet capital reserves requirement sufficient to pay any claims that might arise. Employers can meet such obligations through all of the following EXCEPT

second injury funds programs

in a personal umbrella policy, the amount paid by the insured for certain losses not covered under the primary coverage is called

self insured retention

which policy condition in H0 policies states that insurance applies separately to each insured

severability of insurance

payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages

special

events in which a person has both the chance of winning or losing are classified as

speculative risk

which of the following insurers are owned by stockholders who have the usual rights of ownership, including the right of voting

stock

which of the following terms describes a reduced or limited amount of coverages, other than the combined single limit, that is available to pay claims resulting from passenger bodily injury

sublimit

the legal process that gives the insurer, after payment of a loss, the right o seek recover from a third party that was responsible for the loss is known as

subrogation

the legal process that gives the insurer, after payment of a loss, the right to seek recovery from a third party that was responsible for the loss is known as

subrogation

an apartment occupants personal property would be insured under which homeowners form

tenant broad form (HO-4)

which of the following may NOT be included in an insurance company's advertisement

that its policies are covered by a state Guaranty Association

the amount an insurer will pay under coverage D (Loss of Use) depends on

the amount of coverage on the dwelling

replacement cost coverage is provided in both the broad and special form dwelling policies when

the amount of insurance on the dwelling is at least 80% of its replacement cost at the time

what is the maximum amount of protection available to insureds under the Pennsylvania Property and Casualty Insurance Guaranty Association

the amount of loss up to the amount of coverage in the original policy, not exceed $300,000 (per claimant)

When a regular bill of lading is issued, who will be responsible for the invoice cost of any damaged property?

the carrier

which of the following entities must approve all continuing education courses in this state

the commissioner

which of the following statements is true regarding the commercial general liability policy's coverage C- Medical Payments

the coverage is considered good will because payments are made without regard to fault

the claims- made trigger is based on which of the following

the date the claim is first made in writing against an insured for injury or damage that occurred on or after the policy's retroactive date

the occurrence form trigger is based on which of the following

the date when injury or damage occurs

the contents coverage on a homeowners policy would pay how much after the loss of one of a pair of golden candlesticks

the difference in the actual cash value as a pair and as a single

When an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays

the excess over the self insured retention

under the "limited tort insurance" option, an insured may not seek recovery for pain and suffering or other nonmonetary damages UNLESS

the injuries fall within the definition of "serious injury"

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

according to the standard workers compensation and employer liability policy form, a state should be listed in Part Three- other states' insurance of the workers compensation and employers liability policy when

the insured expects to extend operation to that state

the abandonment provision in property insurance policies state that

the insured may not relinquish ownership of damaged property to claim a total loss, but must protect damaged property from further loss

all of the following statements regarding the supplementary payments of a commercial general liability policy EXCEPT,

they pay defense costs even after the aggregate limit has been reached

which of the following statements is NOT true regarding mobile agriculture machinery and equipment coverage

this coverage must be written as part of farm coverage

the business income coverage form covers consequential loss of business income that occurs when a business must suspend operations because of a direct loss. Which of the following terms best describes the nature of this type of coverage

time element

an insured covered under a mobile homeowners policy wants to move the location of the covered mobile home. which of the following must the insured obtain from the insurer

transportation/ permission to move endorsement

In the personal auto policy, owned trailers being towed by an insured auto are automatically covered for

uninsured motorist coverage

Pete wants to have separate insurance coverage for separate acreages. What kind of insurance should Pete get

unit insurance

An insured relocated to another state for work. However, she still owns and insures a house in this state, but has had no one living in it for 3 months. She is also storing some furniture and clothes in the house. From an insurance standpoint, the insured's house is considered

unoccupied

one of the primary benefits to the insured in selecting the "full tort option" under their auto insurance coverage is

unrestricted ability to sue for pain and suffering

all of the following are supplemental payments included in the liability section of a personal auto policy EXCEPT

up to $100 for the cost to secure the release of a vehicle form an impoundment lot following a covered accident

all of the following are supplemental payments included in the liability section of a personal auto policy except

up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident

the cost of restoring farm records is an additional coverage offered under a farm policy. How much will the policy pay to restore the records

up to $2,000

An insured is a member of the neighborhood association, and has become liable for damage to a third party. Each member of the association has been assessed a portion of the loss equal to $2,000. How much will the Loss Assessment additional coverage of the insured's homeowners liability policy pay?

up to 1,000

which of the following would NOT be considered part of the insured location under the liability section of a homeowners policy

vacant farmland owned by the insured

a type of policy that is used to provide a specific amount of replacement cost for a given risk after an insured property has been destroyed is called a

valued poicy

a type of policy that is used to provide a specific amount of replacement cost for a given risk after an insured property has been destroyed is called a

valued policy

when would uninsured motorist coverage apply

when the other party is legally liable but has no insurance

The bankruptcy provision found in the personal auto policy states that bankruptcy of the insured

will not relieve the insurer of its policy obligations

the bankruptcy provision found in the personal auto policy states that the bankruptcy of the insured

will not relieve the insurer of its policy obligations

how soon after the due date should the insurer pay the agent appointment fees

within 30 days

the insured with a claims- made commercial general liability (CGL) policy may request in writing claim and occurrence information from the insurer at any time up to 60 days after the policy period ends. The insurer must provide the information

within 45 days

A commercial package policy (CCP) allows the insured to select the coverage needed and customize the policy to meet the needs of the insured's business. in a CCP, the business owner may select from all of the following types of coverage EXCEPT

workers compensation coverage

which of the following would NOT be covered by medical payments to other in Section II of your HO policy

you cut your leg while whacking weeds in your backyard with your neighbor's weed whacker