Insurance Pt 6

Which of the following persons is required to hold a producer license?

A person who negotiates insurance contracts

A person who, for a fee, examines, evaluates and assesses contracts of insurance for another and offers advice on methods on reducing risk, must be licensed as

A risk manager

Which of the following is NOT covered under accounts receivable coverage form?

Any loans required to offset uncollectible amounts

Homeowners policies provide coverage for

Business property wile on the residence premises

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

All of the following are conditions commonly found in the insurance policy EXCEPT

Insuring agreement

On its advertisements, 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

What is the major difference between a stock company and mutual company?

Ownership

For which of the following actions can an agent's license be suspended or revoked?

Rebates of premiums

Property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called

Specific coverage

Which of the following is NOT considered a residual market?

State property and Casualty Guaranty Association

When the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss, the coverage is said to be written as

Stated amount

An insured's accounts receivable records have been damaged. The loss may be covered with

The accounts receivable coverage form

With respect to commercial auto policies, the Garage coverage form provides liability protection for all of the following EXCEPT

The insured's business income losses due to personal injury

After attending a company party at the corporate headquarters , an employee causes a car accident, is injured and arrested for DUI. His medical injuries total $5,200, and his legal fees and fine for the DUI arrest total $12,000. How much will the company's workers compensation policy pay?

$0

What is the maximum portion of the state average weekly wage that workers compensation will pay for impairment income benefits?

70%

Under Workers compensation, an insurance carrier will pay death benefits to the legal beneficiary in an amount equal to what portion of the employee's average weekly wage?

75%

Insurance companies may be classified according to the legal form of their ownership. The type of company organized o return any surplus money to their policyholders is

A mutual insurer

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

Collapse

The ABC corporation has $100,000 of coverage on its building through insurance Company A, and $50,000 of identical coverage on the same building through insurance Company B. Assuming coinsurance is not an issue, when a $24,000 loss occurs and the pro rata method is used, how much will each insurer pay?

Company A will pay $16,000, Company B will pay $8,000.

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

The extra coverage expense form provides

Coverage that will permit the insured to continue in business without Interruption following a property damage loss

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

Circulating deceptive sales material to the public is what type of Unfair Trade Practice?

False advertising

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

Which of the following statements is INCORRECT with regard to surplus lines insurance?

Policies written by a surplus lines insurer typically contain standard coverages and forms?

An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of

Rebating

In case of a loss, the indemnity provision in insurance policies

Restores an insured person to the same financial state as before the loss

A insurance policy that is not subject to any coinsurance requirements but has a set amount of insurance scheduled for the property would use what loss valuation method

Stated amount

Under the provisions of the business income coverage form, all of the following are true EXCEPT

The insured is reimbursed for the loss from the date of loss to the date of restoration or policy expiration date, whichever comes first