insurance

The maximum payable for damage or loss to signs attached to the building covered under an ISO standardized Businessowners policy is:

$1,000

The insured carries an unendorsed DP-3 dwelling policy on his home and personal contents. While traveling abroad someone broke into the home and stole $200 in cash, a shotgun valued at $1,000, and other household items valued at $2,000. Damage caused by the burglars is $1,500. Assuming no deductible applies to their coverage how much would be paid?

$1,500.

An agent wrote a homeowners policy for a policyholder in the amount of $150,000 on the real estate, $75,000 personal property and $300,000 liability limits. The policy has been if effect for three years, and recently, the home was totally destroyed by fire. The actual cash value of the home is $90,000 and the replacement cost is $195,000. Personal property has an actual cash value of $55,000 and replacement cost of $125,000. Under West Virginia's Valued Policy Law, how much is the insurer required to pay the insured for the dwelling loss?

$150,000

What is the limit that is paid for water damage under an Equipment Breakdown policy?

25,000

To receive temporary total disability payments under Workers Compensation in West Virginia, the injured worker must be unable to work for:

3 consecutive calendar days following the injury.

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:

30 days

Stephen has a personal auto policy with liability limits of $25/50/25. He strikes a car with four occupants from Ohio, all of whom are injured. The first sues for $20,000, the second sues for $35,000, the third sues for $22,000, and the fourth sues for $18,000. The car Stephen hit has $8,000 in damage. The company spends $20,000 on a law firm for defense. Ignoring any PIP or medical payments coverage, what is the total cost to the company for the claim?

78,000

The coverage extension "Business Personal Property Temporarily in Portable Storage Units" will provide $10,000 of coverage for up to:

90 days

Which of the following most accurately describes an indirect loss?

: After a loss, an insured homeowner incurs a hotel bill while the house is being repaired..

An insurer was cited and found guilty of unfair discrimination. The carrier paid its fine for the offense and was also issued a cease and desist order. If the insurer continued with the practice of unfair discrimination, the additional penalty would be:

A penalty of up to $10,000 for each violation and/or revoke or suspend the person's license

Watercraft that are eligible for coverage under the Watercraft endorsement of the Homeowners policy, include all of the following, EXCEPT:

A small fishing boat powered by an outboard engine of 15 horsepower or less. .

An insurance company held its annual meeting in Florida so attendees could have an opportunity to visit tourist spots as well as spend time on company business. At the meeting, three new directors were added after the attending stockholder's votes and mailed-in proxies were counted. This insurance company is:

A stock insurance company

An insured owns very old equipment. Much of it is no longer manufactured but is still functional. The insurer may wish to insure the equipment under an Equipment Breakdown policy by attaching the:

Actual cash value endorsement

Which of the following describes a moral hazard?

An arsonist applying for property insurance.

Al has an umbrella liability policy which does not pay damages until such time as Al is legally obligated to pay them. This type of policy is known as:

An indemnification policy.

Which of the following losses would be covered under a crime policy's "Inside the Premises - Robbery or Safe Burglary of Other Property?"

Broken windows and damage to a door.

All of the following are exclusions under Section I - Forms HO-2 and HO-3, EXCEPT:

Collapse.

Mr. Smith's bicycle shop enters into many written and oral agreements with customers. Mr. Smith's agent informs him that the liability on his BOP contains:

Contractual Liability

Under the HO-3 form there is no coverage for loss resulting from "earth movement" except when endorsed by which of the following?

Earthquake endorsement.

One purpose of a deductible is to:

Eliminate small claims

Fidelity bonds are used to cover

Employee dishonesty

Flood coverage can be purchased under the Commercial Property policy using endorsement CP 10 65, if the property is eligible. If this Commercial Property endorsement is purchased and the property is already covered under a flood policy from the National Flood Insurance Program, then the coverage under this endorsement is considered to be:

Excess over the NFIP maximum limits

A customer in a restaurant becomes ill after they return home after eating. Which policy would respond to handle the claim?

General Liability policy that is unendorsed .

Which of the following are true statements regarding mine subsidence coverage in West Virginia? I. It does not include loss caused by earthquake, landslide, volcanic eruption or collapse of storm and sewer drains and rapid transit tunnels. II. Mine subsidence coverage may be waived by the insured. III. The total insured value reinsured by the mine subsidence insurance fund may not exceed $200,000. IV. The deductible under mine subsidence coverage may not exceed $500.

I, II, III and IV

A basic Commercial General Liability policy would exclude coverage for: I. A newly acquired business. II. Liability assumed in a contract other than an "insured contract". III. Liability assumed in an elevator maintenance agreement.

II only

Pollutant cleanup under the commercial building and personal property form:

Is an additional coverage

towing and labor coverage in auto insurance?

It covers mechanic's charges for work done at the scene of a breakdown. .

The maximum amount a policy will pay in the event of a loss is called the:

Limits of liability.

What coverage under the BOP automatically applies if a customer slips and falls on the named insured's premises, regardless of legal liability?

Medical expense coverage

Which of the following statements is FALSE concerning covrerage under the Business Auto policy?

Medical payments coverage is automatically provided

The claimant and insurer have agreed on a settlement of a claim. What is the time limit on the payment of the claim according to West Virginia law?

No later than 15 working days of the receipt of such agreement

Which of the following is true regarding coal mine subsidence coverage in West Virginia?

Offered by the agent in specific counties in the state, but coverage may be waived by the insured..

In a Physicians Professional liability policy two separate errors cause several claims. How is the deductible determined?

Per Claim

What is found in Section I of the homeowner form?

Personal Property Coverage and other structures

In commercial property insurance, how would the insured receive replacement cost lost settlement on damage (as a result of a covered peril) to the personal property of others left in the insured's care custody and control?

Request a separate replacement cost endorsement on the Personal Property of Others coverage on the policy.

An office building is limited in the number of stories it may contain be eligible for coverage under the Businessowners Policy?

Six stories

A dry cleaner wants to insure the pressure boilers used in the business. They also would like to cover some equipment and accessories that can be used in the boilers but have not yet been installed. Which of the following, if any, can be used to cover this exposure?

Spare Parts and Equipment Coverage

What coverage is provided under the BOP for a steam boiler explosion?

Steam boiler explosions are excluded under the BOP

What type of liability is specifically addressed by statute?

Strict Liability

The insured has suffered a sizable covered property insurance claim with an insurer that has become insolvent. Where can the insured seek assistance with a claim?

The West Virginia Property and Casualty Guaranty Association. .

Robert boards his dog at a kennel while he is on vacation. While at the kennel, the dog bites a meter reader. How would Robert's HO-3 policy respond to the meter reader's request for repayment of his emergency room costs?

The insurer will pay for necessary emergency room expenses under the Medical Payments to Others provision

How are the HO-2, HO-4 and HO-6 forms similar

The perils covered

How much additional coverage under a Commercial Property Policy is provided for debris removal?

The policy will pay an additional limit of %25

Which of the following best describes the purpose of an "insuring agreement"?

To describe the promises of the insurer and the insured and the coverages provided

The definition of "occupying" in the personal auto definitions means all of the following, EXCEPT:

Under the vehicle.

An insured's boat is struck by another boat. He and his family are injured. His boat sinks because of the damage. An investigation determines that the party that caused the accident is not insured. If the insured carries a watercraft policy

Uninsured boater's coverage and hull insuranc

The limit of a bond is known as its:

bond penalty.

Which of the following is the principal in a bond?

contractor doing the work.

Which of the following is NOT true regarding the legal effect of a mistake in an insurance contract?

coverage can be voided by the insurer under any circumstance involving a mistake.

To cover lawn mowing equipment under a HO form an insured must:

do nothing because its already covered

What is the exception to a flood insurance claim being paid on an ACV basis?

dwelling insured to 80% of replacement cost value

Personal Injury coverage insures against liability for:

injury arising out of slander and libel..

Which statement is true concerning auto Physical Damage coverage in a Personal Auto Policy?

it can cover owned and nonowned automobiles

The custom farming endorsement is usually attached to a farmowners policy when receipts exceed:

$5,000

A building with an actual cash value of $240,000 is insured for $200,000. The policy has an 80% coinsurance requirement. If there are no deductibles, how much would be paid for a $60,000 loss?

$60,000 is correct.

When an HO-3 is issued with a $75,000 dwelling limit on a one-family dwelling, what is the automatic amount of insurance on Other Structures?

$7,500. Other Structures (Coverage B) are automatically covered for 10% of the limit that applies to the dwelling. Insureds can request higher limits if the other structures on their premises are worth more than 10% of the dwelling limit.

An insured received notice of cancellation of his malpractice insurance policy. A hearing to contest must be granted if the insured's request for a hearing is made within a maximum of

30 days

Which of the following would be covered under Coverage A of a Farm insurance policy?

A structure attached to the dwelling.

Surplus lines refer to insurers that are considered non-admitted carriers that are permitted to insure risks or exposures in the state. Who is permitted to offer their products?

A surplus lines agent

Which section of the Commercial Package Policy varies based on the lines of coverage included?

Coverage Part.

Under the provisions of the standard BOP policy, what happens when an insured fails to advise the insurance company that the insured's sprinkler system is inoperative beyond a 48 hour period?

Coverage for fire losses will be excluded.

A department store has a large inventory of costume jewelry and watches. No single item is valued for more than $100.00. A customer steals most of the items and flees the scene. What theft coverage would be provided by an unendorsed ISO standardized BOP policy?

Full contents limit.

Which of the following may be included in the Commercial Package Policy? I. Commercial Auto. II. Commercial Inland Marine. III. Equipment Breakdown coverage.

I, II, and III only

Which of the following would be excluded under Coverage E - Personal Liability of the Homeowners forms? I. Business activities II. Use of aircraft III. Personal activities in Paris, France IV. Use of licensed motor vehicles

I, II, and IV only.

All of the following are factors in establishing negligence

Negligence is the lack of reasonable care that is required to protect others from the unreasonable chance of harm. The factors used to establish negligence are legal duty owed, breach of legal duty owed, proximate cause, and damages

Under a Mobile Homeowners package policy, how is the mobile home itself covered in case of a total loss?

On a Replacement Cost basis..

Which of the following is NOT provided by the farm employers liability and farm employees medical payments insurance endorsement?

Payment of statutory workers compensation bene

Under an HO-4 policy, which of the following would be covered by Section I?

Personal property used by the insured in Switzerland..

A dead tree beside Jerry's home is best described as which of the following types of hazards?

Physical hazard.

Paul and Michael are defendants in a lawsuit filed by Sherry. Sherry is suing the defendants for damages totaling $100,000. The defendants and the plaintiff are residents of West Virginia. Paul is found to be 40% at fault and liable for $40,000 of the damages. Michael is found to be 60% at fault and liable for $60,000. This is an example of:

Several liability

What is found in Section 2 of the homeowner form?

liability coverages and medical payments

All of the following would be considered "property damage", EXCEPT:

pedestrian injured by the insured and off work one week..

Owners and contractors protective liability protects against which of the following?

potential or Contingent Liability

A couple recently borrowed money to do some major renovations to their home. While they were renovating their home, they decided to make some changes in their estate planning as well. The couple had their attorney draft papers naming two of their three sons, Bill and Drew, owners of the property with the parents retaining a life estate in the property. The third son, Rick, understood when he reached legal age, he would be named as an owner as well. In May, a tornado destroyed the house. Which of the following does not have an insurable interest in the house

rick

The auto liability limits $100/300/50 are an example of

split limits

The Standard Fire policy (SFP) contains an assignment clause. Which of the following statements is true regarding the assignment clause?

the clause states that assignment is permitted with the written consent of the insurer

To receive workers compensation benefits, an employee's bodily injury by disease must be caused by:

the conditions of employment

If an insurer in West Virginia requires that an insured obtain an estimate or estimates of vehicle damage, the reasonable charges, if any, of the estimates must be borne by the:

the insurer