Insurance pt. 7

Super Value Store has a commercial general liability policy written with a general aggregate limit of $300,000 and an occurrence limit of $100,000. A customer injured on the premises was awarded $45,000 for medical expenses and loss of earnings, and $60,000 for pain and suffering. The court costs and attorney fees were $15,000. How much will the CGL policy pay?

$115,000

The insured purchased a $200,000 extra expense policy. If the percentages applying to the limit of insurance are 40%, 80%, and 100%, what would be the maximum payable for a 47-day loss?

$160,000

Which loss listed below would be fully covered by a homeowners policy?

$2,000 silver tea set stolen

Using the pro rata method, if a property is covered by Company A for $20,000 and company B covers the same property for $40,000, how much will company A pay on a $24,000 loss?

$8,000

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

80% of the property's replacement cost or more

Professional photographers and musicians may insure their equipment with

A commercial articles floater

How much is covered for debris removal under the HO property additional coverages?

All reasonable costs

Which of the following is a method of claim settlement used when the insured and insurer cannot agree on how to settle claim?

Arbitration

If an insurer makes a change to broaden coverage in a dwelling policy while it is in effect, the changes will apply

Automatically

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

Beneficiary consent

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

Commercial general and professional

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

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

Coverage E

Employment practices liability insurance (EPLI) would NOT cover claims arising from

Deliberate law violation

An insured is applying for a casualty insurance policy. One of the conditions of the policy allows the insurance company to inspect the insured's books at the end of the policy term to make sure sufficient premium has been collected for the exposure she plans to insure. Which condition is part of the insured's policy?

Deposit premium audit

In a commercial package policy, who may cancel the policy in writing and make changes to the policy with the consent of the insurer?

First named insured

Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost?

Indemnity

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

Insureds

For a contract to be enforceable by law, the purpose of the contract must be

Legal and not against public policy

If a person is using an auto with the belief that is entitled to do so, subrogation rights under a personal auto policy would apply to all coverages EXCEPT

Physical damage

Which of the following would be an insured's duty in the event of a loss according to the duties in event of occurrence, claim, or suit condition?

Providing specific details regarding an occurrence

Which of the following would NOT be considered a flood?

Sewer backup

An insured owns several buildings, each at a different location and insured on a separate policy. What type of coverage does the insured have?

Specific

In the event of a loss covered by the policy, if the insurer requests a signed sworn proof of loss, the named insured is required to submit it within

Specific time

Which of the following perils is covered by the HO-2 and HO-3?

Sudden and accidental rupture of a heating system

The medical payments coverage in a personal auto policy will pay reasonable medical expenses for all of the following EXCEPT

The insured is injured while exiting a friend's mobile home

All of the following types of property are covered by a standard builders risk form EXCEPT

Tools 50 ft away from the building

Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?

Warranty

All of the following statements are true regarding employee dishonesty optional coverage under the businessowners (BOP) policy EXCEPT

it provides coverage for all employees, even those employees who were terminated in the past 90 days

The members of a limited liability company are insureds under a businessowners policy (BOP) if

the limited liability company is designated as the named insured