license study set
Gertrude's television set was stolen from her home. She bought it five years ago, which is half the TV's expected 10-year lifespan. A similar TV costs $1,200 today. Using the actual cash value loss valuation method, how much will Gertrude recover for this loss? $1,200 less deductible $600 less deductible $800 less deductible salvage value
$600 less deductible
Which of the following statements correctly describes the difference between an open perils policy and a named perils policy? A named perils policy covers many more causes of loss than an open perils policy. A named perils policy requires the policyowner to show the cause of loss is covered, while the insurer has the burden of proving that the loss is excluded with an open perils policy. A named peril policy excludes certain types of peril, while an open perils policy covers virtually every possible cause of loss. Open peril policies are less expensive than named peril policies.
A named perils policy requires the policyowner to show the cause of loss is covered, while the insurer has the burden of proving that the loss is excluded with an open perils policy.
Which of the following correctly describes the premium grace period of a personal auto policy? Personal auto policies do I not have a premium grace period. Personal auto policies have a standard 10-day grace period that can be extended upon request by the policyowner Personal auto policies have a standard 31-day grace period that cannot be extended. Personal auto policies have a premium grace period that varies by state
Personal auto policies do I not have a premium grace period.
What is the basic principle underlying the law of large numbers? Prediction becomes more accurate as the number of exposure units decreases Prediction becomes less accurate as the number of exposure units increases. Prediction becomes more accurate as the number of exposure units increases. I Prediction is most accurate when the number of exposure units stabilizes.
Prediction becomes more accurate as the number of exposure units increases.
insur adjuster may require any person seeking coverage for property loss to submit proof of loss containing detailed info as specified in the policy. which one of the followings is not among the items required by proof of loss SS # insured interest in the property other insur covering the property leins against the property
SS #
All of the following persons are entitled to coverage under a property insurance policy EXCEPT a mortgagee a bailee a loss payee an additional insured
a bailee
The counterfeit money insuring agreement of a U.S. bank's financial institution bond covered the loss resulting from its acceptance of counterfeit money in Guatemala, which means that National Bank must have: worldwide coverage coverage that extends to Central America at least one customer residing in Guatemala a branch office in Guatemala
a branch office in Guatemala
If the insurer intends to nonrenew personal auto policy (PAP) coverage, it is required to notify the named insured: no more than 30 days before the policy expires at least 90 days before the policy expiresno more than 15 days before the policy expires at least 20 days before the policy expires
at least 20 days before the policy expires
All of the following parties can be protected by a property or casualty insurance policy without the need for a special endorsement EXCEPT. secured creditors bailees mortgage holders loss payees
bailees
In addition to a property owner, what other parties might have an insurable interest in the property? next-door neighbor local municipalitylocal political representative bank or mortgage holder
bank or mortgage holder
With respect to property insurance underwriting, what type of rating system is used when insureds share similar characteristics? individual rating class rating group rating state-based rating
class rating
Which section of an insurance policy sets forth the rules that determine what is required to qualify for coverage under the policy? declarations definitions conditions exclusions
conditions
Which of the following property insurance policy provisions states where coverage does and does not apply? liberalization policy period policy territory assignment
policy territory
kerrie is indep adjusted licensed who resides in FL, on sept 1 a hurricane cause extensive damage in tc and the call went out for out of state catastrophe adjuster to come to tx and assist in the claim load. on sept 3 she arrived in tx and immediately began claims work. by what date would it be necessary for kerrie to apply for emergency adjuster license in this case she should have applied for an emergency license before arriving in tx sept 3 sept 8 it is not necessary for a non resident adjuster to apply for an emergency license in the cases of catastrophe
sept 8
In an insurance contract, only the insurer makes a legally enforceable promise (to pay covered claims). The policyholder makes no legally enforceable promise, which means insurance policies are: personal contracts conditional contracts aleatory contracts unilateral contracts
unilateral contracts
all of the following are recognized as perils except wear and tear collision of 2 ships sinking of a vessel heavy weather
wear and tear
Cameron was a part-time employee at Simon's fast food store. Simon discovers Cameron stealing money from the cash register and fires him. Simon wrote Cameron a final paycheck for $500. Before cashing the check, Cameron altered the amount of the check so it read $2,500. How much of the $2,500 will be covered under Simon's businessowners policy? 50 $500 $2,000 $2,500
$2,000
molly who worked for a cosmo a demolition contractor was killed when a wall collapsed on her at the time of the accident t=her avd weeky wage was 800 what death benefits if any is her husband entitled to received from cosmo workers comp insur nothing b/c this was a freak accident nothing b/c ther is no evidence that the accident arose from cosmo negligence 600/wk for life 800/wk until johnny remarries
600/wk for life
All the following would be considered an 'insured' under a Hired Auto and Nonowned Auto Liability Endorsement in a businessowners policy (BOP) EXCEPT: Leonard, the owner of a small consulting business whose only automobile is a hired auto Perla, Leonard's business partner who drives a hired auto for business purposes Carl, a business owner when conducting personal business while using a nonowned auto Cleo, an employee of the insured business who drives the hired auto to conduct business with permission of both his employer and the hired auto's owner
Carl, a business owner when conducting personal business while using a nonowned auto
Clark sued his insurance company because it didn't pay his claim, saying he found the wording in his policy vague and ambiguous. Based only on this information, in whose favor did the Court render judgment? the insurance company's, because the Courts alwavs favor insurers the insurance company's, because Clark should have understood the policy Clark's, because the Courts always favor policyholders Clark's, because the policy is a contract of adhesion
Clark's, because the policy is a contract of adhesion
Samantha causes an auto accident. An injured party makes a claim against her for $30,000. She discovers that she has two concurrent policies that provide coverage. The limit of liability for Company A's policy is $50,000 while the limit of liability for Company B's policy is $100,000. How will the companies pay the claim? Each company pays one-half of the claim, or $15,000. Company A pays $10,000 and Company B pays $20,000. Company A pays the entire $30,000 because it is within the limit of liability of $50,000. Company B pays the entire $30,000 because it has the greater limit of liability.
Company A pays $10,000 and Company B pays $20,000.
All of the following statements regarding the rights of a mortgagee under the standard mortgage clause in a property insurance policy are correct EXCEPT: Payment for loss to the mortgaged property is made to the mortgagee as well as the insured. Exclusions that apply to the insured do not apply to the mortgagee. The mortgagee remains covered if the policy is voided by some act of the insured. The mortgagee will have advance written notice of a policy cancellation.
Exclusions that apply to the insured do not apply to the mortgagee.
Which of the following correctly describes the basic purpose of the MCS-90 endorsement? It confirms that the trucker is an approved motor carrier. It confirms that the trucker is a for hire carrier. It certifies that the trucker has completed the required driver safety courses It amends the truckers auto liability policy to comply with requirements of the Motor Carrier Act of 1980.
It amends the truckers auto liability policy to comply with requirements of the Motor Carrier Act of 1980.
Percy injured his knee in an auto accident five years ago when he was a passenger in his girlfriend's car. He just received follow-up treatment for his knee and submits the bill to his girlfriend's insurance company. How does the auto policy respond? It pays the bill. It pays the bill subject to a $500 deductible. It doesn't pay the bill because Percy wasn't an "insured" at the time of the accident. It doesn't pay the bill because it wasn't incurred within three years of the accident.
It doesn't pay the bill because it wasn't incurred within three years of the accident.
Jack and Mel are involved in an auto accident in which Jack is injured and incurs medical expenses. Jack sues Mel, and the court determines that Jack is 30 percent at fault and Mel is 70 percent at fault. If the state apportions liability under a comparative negligence law, what will happen? Jack will recover 30 percent of his damages. Jack will recover 70 percent of his damages. Jack will not recover because he was also at fault. Jack will recover all of his damages because Mel's fault was greater.
Jack will recover 70 percent of his damages.
Jeremy leaves his watch at a watch repair shop to have the battery replaced. When he picks it up, he learns it was accidently damaged beyond repair by the shop owner, who suggests Jeremy file a claim with his own insurance company. Is Jeremy's insurer likely to pay this claim? Yes, because it was the insured's property that was damaged Yes, because it does not matter who or what caused the damage No, because the policy has a no benefit to bailee provision No, because the property was damaged by someone other than the insured
No, because the policy has a no benefit to bailee provision
Ron bought a homeowners policy for the house he and his wife Sue own jointly. Sue noticed that only Ron's name is listed as an insured in the declarations. What should she do, if anything, to make sure she is also recognized as an insured? She must have her name added through an endorsement to the policy to obtain coverage. Nothing. The named insured's spouse is also considered a named insured in a homeowners policy. She must buy a separate homeowners policy in her name She must qualify for coverage before she can be added to the policy.
Nothing. The named insured's spouse is also considered a named insured in a homeowners policy.
Mary's new refrigerator was delivered a few days ago. It catches fire due to an electrical short in the refrigerator. The fire causes extensive damage to the appliance as well as to her kitchen. The adjuster investigates the claim and tells Mary that subrogation is appropriate in this case. What will occur if the claim is subrogated? A public adjuster will represent the insured The claim will go to arbitration. The insurer can recover its claim payment from the responsible party. The refrigerator will be sold for salvage
The insurer can recover its claim payment from the responsible party.
Which of the following statements comparing the mortgage clause and a loss payable clause in a property insurance policy covering real property is correct? Both clauses are identical with respect to the rights granted to the loss payee and the mortgagee. The loss payee has greater rights under the policy than the mortgagee. The mortgage clause is simply another name for the loss payable clause. The mortgagee has more rights under the mortgage clause than the loss payee has under the loss payable clause.
The mortgagee has more rights under the mortgage clause than the loss payee has under the loss payable clause.
Tina borrows a neighbor's car to run a personal errand. She collides with another car and injures the other driver. The injured driver files a liability claim against Tina and the neighbor. Whose policy will handle the claim? Both policies will rescond on a pro rata basis Since Tina was at fault, only her policy will respond The neighbor's colicy will be primary, Tina's policy will be excess. Tina's policy will be primary. the neighioods policy will be excess.
The neighbor's colicy will be primary, Tina's policy will be excess.
santiago is a tx employer if he does not want to self insure his workers compensation benefits he may obtain a required coverage from any state bank TDI national council on compensation insur a licensed insur co
a licensed insur co
janice inherited her mothers diamond earring, which are valved at 25,000. why would her agent recommend that janice insure the earring on a personal articles floaters rather than under coverage C - personal property on her homeowners policy. premium will be lower a limit of 1,500 applies to the loss by theft of jewelry on the homeowners policy homeowners policy doesn't cover jewelry homeowners policy contains a max limit of 10,000 for jewelry
a limit of 1,500 applies to the loss by theft of jewelry on the homeowners policy
homeowners believed that jackson's statement that he was a licensed poroperty claims adjuster. in reality he was a roofing contractor who saw insurance claimsn as a good source of business. b/c he misrepresented himself as an insurance adjuster jackson may be subject to any of the following except a year in the state penirerntiary 500 fine and 6 mon in the county jail 6 mo county jail 500 fine
a year in the state penirerntiary
When Mr. Huan's piano was damaged by vandals who broke into his house, the insurance company subtracted $200 for depreciation when it made its settlement offer. On what basis did the insurer value Mr. Huan's loss? replacement value market value actual cash value agreed value
actual cash value
if the claimant files a compliant with the tx dept of insur against his insur agent the adjuster and his insur company b/c he is upset about the way his claim was handled the TDI may take disciplinary action against adjuster only agent only both the insur company and its agent not the adjuster adjuster, agent and the insur company
adjuster, agent and the insur company
When Mr. and Mrs. Unger lived in New Hampshire, they didn't buy earthquake insurance because they believed they were unlikely to suffer an earthquake loss. When they moved to California, however, they bought earthquake coverage immediately because of their high exposure to earthquakes in that state. What underwriting principle do their actions characterize? adverse selection misrepresentation redlining field underwriting
adverse selection
Robin has a valuable porcelain collection she wants to insure. Because it's difficult to assess the collection's value, Robin and her insurer have worked out a schedule listing the value of each insured item. What valuation method have they used? agreed value actual cash value market value replacement cost
agreed value
Jane's insurance policy contains a stated amount valuation provision. This provision states that she will receive the lowest of three amounts if her covered property is stolen or destroyed. Which of the following is NOT one of those three amounts? the property's actual cash value at the time of the loss an amount agreed upon by the insurer and Jane the cost to repair or replace the property with similar property the dollar amount of insurance specified in the policy schedule
an amount agreed upon by the insurer and Jane
John and his insurer disagree over the value of John's damaged property and the amount the insurer is willing to pay for the damaged property. What is the best recourse for John to pursue? lawsuit complaint with the state insurance department subrogation appraisal
appraisal
Which of the following property insurance policy provisions describes the circumstances under which policy ownership may possibly be transferred to another party? loss payable clause assignment provision no benefit to bailee provision mortgage clause
assignment provision
what is the name given to the insured party in an ocean marine policy? named insured assured secured party nautical ensured
assured
all of the following are considered unfair claims practice except failing to respond to a claim promptly delaying payment of the claim while the insurers investigates the circumstances around it misrepresenting the terms of the policy so as it deny liability unreasonably denying so regularly that the insurers is freq subject of complaints or lawsuits
delaying payment of the claim while the insurers investigates the circumstances around it
tiff works for an excavation contractor whole operating a piece of heavy equip she is involved in an accident that leaves her paralyzed from waist down she now lives in a wheelchair and works as a clerk w/ same contractor but with a significantly lower rate of pay. according to tx labor code tiff has a sch'd benefit noncompensable injury disability basis for special damages claim
disability
In a liability policy, the insurer typically has two essential duties with regard to protecting the insured. These duties are the: duty to cooperate with the insured and pay covered claims duty to pay damages and defend the insured duty to make supplementary payments and pay damages duty to represent the insured at the insured's expense
duty to pay damages and defend the insured
The fidelity insuring agreement of a standard Financial Institution Bond provides coverage for dishonest acts relating to what peril? theft computer fraud burglary embezzlement
embezzlement
All of the following are standard provisions in all property or casualty insurance policies EXCEPT. endorsement insuring agreement definitions exclusions
endorsement
Which of the following indemnifies an employer for loss resulting from the dishonest acts of an employee who occupies a position of trust in the company? surety bond public official bond fidelity bond permit bond
fidelity bond
lanny is licensed tx adjuster who has been accused of violating tx insur code. the commissioner order lanny to cease and desist from adjusting claims. now prevented from carrying on his livelihood, lanny requests a hearing. what is the purpose of the hearing. for lanny to show why the cease and desist order should not be affirmed to identify who accused lanny of violating the code for lanny to show why the commission er should be held in contempt for lanny to obtain a plea bargain
for lanny to show why the cease and desist order should not be affirmed
with respect to the ocean marine insurance, when an insured vessel becomes damaged and a portion of cargo is thrown overboard to save the ship this is known as particular avg loss general avg loss incharee loss maritime loss
general avg loss
jackson was injured when he fell down the stairs in his house, he submits a claim for medical payments under his homeowners policy, accompanied by copies of medical bills. soon he receives phone call in which teri a claim adjuster informs him that his policy does not cover his kind of claim. what else should teri do in response to jackson's claim. give a reasonable and accurate basis for denying the claim off a compromise settlement to keep jackson from filing an unfair claims practices compliant inform jackson insurance agent inform jackson insurance agent so the agent can sell jackson another policy that provides broader coverage
give a reasonable and accurate basis for denying the claim
Which of the following is an example of risk reduction? setting up a self-insurance program not owning a car to avoid losses related to automobile ownership a homeowner who chooses not to buy flood insurance having fire extinguishers in place to limit the extent of a fire loss
having fire extinguishers in place to limit the extent of a fire loss
julian was unaware of any tornados in the amarillo area occuring on the date reggie claims his barn sustained windstorm damage. therefore when adjusting the loss, julian did not examined reggies barn before denying the claim, which statement is correct about julians's conduct. he closed the case in a timely manner he denied the claim without conduction reasonable investigation his own knowledge of the matter cannot influence his decision to reject or accept the claim he protected the insurance company from a fraudulent claim
he denied the claim without conduction reasonable investigation
the tx commissioner believes newton ins company is acting in a manner that could cause immediate and irreparable damage to the public safety. what is the best course of action for the commissioner to take in this situation issue an emergency cease and desist order order and investigation by FBI imprison the company's principle order the states attorney general to sue the company
issue an emergency cease and desist order
jillian dwelling is insured on a standard fire policy. when she moved to an apt and began selling fireworks there she failed to report the change in occupancy to her insur co. how if at all does this increase in hazard affect her coverage jillian coverage is not affected as long as the building is not vacant or unoccupied jilliann would have no coverage for a firework explosion but all other losses would be covered jilian could loser her coverage b/c the policy states the the insurer is not liable for loss occurring while the hazard is increase by any means within the insured knowledge or control jillian could lose her coverage b/c business occupied building fails to meet SFP eligibility requirements
jilian could loser her coverage b/c the policy states the the insurer is not liable for loss occurring while the hazard is increase by any means within the insured knowledge or control
june 1 peter insur company requested add'tl info about a claim he had submitted;. he repsonded on june 4 and the insurer received the info on june 5. the insurer is expected to acknowledge receipt of the info by june 2 1 business day june 8 7 business days june 26 15 business days july 12 30 business days
june 26 15 business days
Underwriters know that as the number of units of exposure increases, loss prediction becomes more accurate. This basic insurance principle is known as: pure risk speculative risk adverse selection law of large numbers
law of large numbers
if glenns apt building were covered by an unmodified standard fire policy glenn would have coverage against damage caused by the perils of fire and vandalism riot lightning explosion
lightning
The additional BOP coverage for loss from fungi, wet or dry rot, or bacteria that results from one of the specified causes of loss, applies to all of the following EXCEPT: direct physical loss loss from fungi resulting from fire and lightning cost of tearing out and replacing property to gain access to the fungi, wet or dry rot, or bacteria cost of testing performed after restoration of the damaged property, if there is a reason to believe that fungi, wet or dry rot, or bacteria are present
loss from fungi resulting from fire and lightning
Jeremy owns and manages a small two-story motel on a main street in the city. After the local college football team wins a game, celebrating fans break the motel's front plate glass window and glass in the front door. The additional coverage for glass under Jeremy's businessowners policy (BOP) will cover all of the following expenses EXCEPT: loss of income to the motel while repair work is underway expense of putting up temporary plates expense of boarding up openings expense of replacing the glass in the door
loss of income to the motel while repair work is underway
Which of the following property insurance policy clauses ensures that a loss payee will be included in any claim payment related to the insured property? loss payable clause mortgage clause additional insured endorsement bailee provision
loss payable clause
personal articles floaters will cover all the following golf equipment except lost golf cubs lost golf balls lost golf bags lost golf clothing
lost golf balls
The purpose of the abandonment provision in a property insurance policy is to: obligate the insurer to accept unrepaired damaged property from the insured require the insurer to pay a claim for damaged property even if the insured abandons it allow the insurer to sue an insured who abandons insured property that is damaged make it clear that the insured cannot simply walk away from damaged property
make it clear that the insured cannot simply walk away from damaged property
guillermo's emergency adjusters license took effect feb 1, unless the commissioners extends the license, it will expire on or about mar 1 may 1 aug 1 mar 1 next year
may 1
Salvador, a carpenter, is a contractor for Coogan Construction Company, which builds houses. After Salvador completes a large framing job, Coogan has financial problems and cannot pay him. Through which of the following might Salvador recover some payment for his labor? mechanics lien license and permit bond performance bond Fiduciary bond
mechanics lien
When dealing with insurance policies, a producer's false statement of material fact is called a: misrepresentation fraudulent representation act of concealment false promise
misrepresentation
Under an unendorsed businessowners policy (BOP), business personal property coverage covers all he following EXCEPT: inventory owned and used by the insured in the business business equipment rented by the insured for use in the business tenants improvements and betterments money and securities kept in the business owner's office
money and securities kept in the business owner's office
State Bank has a financial institution bond with seven separate insuring agreements. Which of these agreements is the bank's only source of recovery for money and securities lost in a fire, windstorm, or explosion? fidelity insuring agreement in-transit insuring agreement on-premises insuring agreement securities insuring agreement
on-premises insuring agreement
Sean posts a notice on the bulletin board at his apartment complex to advertise the sale of his car, noting that he will transfer the remaining eight months of his auto insurance policy to the new owner. How may Sean assign his auto insurance policy? only with the written consent of the insurer only if the purchaser agrees to this transfer only if the purchaser pays additional consideration for this assignment only if the seller purchases eight months of coverage for the buyer
only with the written consent of the insurer
Tumbleweed Tim travels around the United States singing country music and playing his guitar free of charge. Occasionally, he offers private lessons for a fee and sometimes accepts payment for his performances. Tim buys a personal articles floater to insure his guitar. His insurance agent advises him that he should also, for an extra premium, buy a: personal articles agreed value loss settlement form personal articles standard loss settlement form performance for pay coverage option policy with blanket coverage
performance for pay coverage option
a person who wants to purchase the most comprehensive insurance coverage avail for a valuable diamond ring would be best served by unendorsed homeowners policy homeowners policy with a personal property replacement cost loss settlement endorsement dwelling policy personal articles floaters
personal articles floaters
tom is chicago based proptery claims adjuster for prairieland insur company. if he is assigned to catastrophe dyty to handle prairieland's tx policyholders claims after a hurricane strikes tx gulf coast, how will tom qualify for an emergency adjuster's license in the state prairieland must certify his license application he much become a licensed property and casuality producer in tx he must pass a physical exam he must becoma licensed adjuster in tx
prairieland must certify his license application
Shoveling snow and ice off an icy sidewalk is an example of what type of risk management technique? reduction prevention transfer avoidance
prevention
daphne who lives in a an old mobile home in a trailer court submitted a theft claim for several expensive dresses and shoes. given her apparent lifestyle, gregg the adjuster questions whether daphne could afford to buy expensive items and requests that she furnish a copy of her most recent federal tx return gregg request is relevant b/c daphne is entitled to a tax deduction for his casualty loss permitted b/c daphnes claim involved a theft loss permitted as part of fraud investigation prohibited under any circumstances
prohibited under any circumstances
a typical property insur policy describes the insured duties after a loss, one of these duties is to submit a signed sworn doc that includes the specific types of info stated in the policy concerning the loss. the doc is know as insured's statement proof of loss list of particulars claim
proof of loss
inur adjuster may require a person making a claim for a property loss to submit a sign sworn doc providing detailed info concerning the loss, this doc is know as request for payment proof of loss demand for payment claim
proof of loss
which of the following correctly described the type of property covered by inland marine insurance, as defined in the nationwide inland marine definition? property transported by ships on US lakes property in transit with some other relationship to transportation or communication property transported on any body of water, including the oceans personal property of businesses shipped by air
property in transit with some other relationship to transportation or communication
a large private party university want to self insure its workers compensation benefits. which of the following is not something the university must do to qualify as a self insurer provide a list of all affected employees present an audited financial statement or other financial info obtain a certificate of authority e develop an acceptable plan for claims admin
provide a list of all affected employees
All of the following are purposes of exclusions in property and liability insurance policies EXCEPT. eliminate or reduce overlapping coverage remove coverage that is not needed by a typical insured provide an incentive to prevent losses provide coverage for otherwise uninsurable risks
provide coverage for otherwise uninsurable risks
in ocean marine insurance, the sue and labor clause refers to the insured's obligation to protect a ship or its cargo from loss or to minimize losses that occur after an accident. under the clause, the insurer agrees to pay for cost of packing, loading, and unloading cargo reasonable cost incurred to prevent further loss to damaged property cost to transport cargo cost of litigation
reasonable cost incurred to prevent further loss to damaged property
Mrs. Grant's home suffered a fire. The contractor tells Mrs. Grant it will cost $10,000 to repair the damage and restore her home so it's exactly the same as it was before the fire. What valuation basis did the contractor explain to Mrs. Grant? replacement value market value actual cash value agreed value
replacement value
tx insur commissioner notifies gale a licensed tx claims adjuster that the commissioner has decided to bring disciplinary action against him for violating the insur code. gale believes the charges are inaccurate and would like to defend himself. what should gale do sue the commissioner request a hearing find a new job submit the dispute to arbitration
request a hearing
jeri paid the entire 800 annual premium for her 1 year standard fire policy when the policy was issued with an effective date of may 1. several months later alpha insur co notified jeri that it intended to cancel the policy on nov 1. how much if any of the premium can jeri expect to get back return the entire 800 premium return 400 of 800 premium return 400 of 800 premium minus a short rate penalty jeri is not entitled to premium refund
return 400 of 800 premium
A business setting up a self-insurance program is an example of which method of risk management? risk retention risk avoidance risk transfer risky control
risk retention
Julia and her family own a large manufacturing business. She convinced her family to set aside funds for a self-insurance program instead of buying a commercial insurance policy. This would be considered what form of risk management? risk retention risk control risk transfer risk reduction
risk retention
Main Street Corp. owns a shopping center. It buys liability and property insurance to cover losses stemming from its business. This is an example of which method of handling risk? risk retention risk avoidance risk transfer risk reduction
risk transfer
tx laws that prohibit unfair claims settlement practice do not apply to mutual aid association life insur road hazard warranties sold by tire companies farm mutual insur companies
road hazard warranties sold by tire companies
in ocean marine insurance, what types of charges are paid to third parties who help save property exposed to loss particular avg inchmaree sue and labor salvage
salvage
all of the following ppl work in tx, which of one of them would not be subject to tx workers comp law auditor employed by federal IRS roustabout on land based oil rig school bus driver employed by school district seasonal employee in small tx vineyard
seasonal employee in small tx vineyard
cathleen was a licensed tx adjustered until her license was revoked as a result of her drug abuse. she has now avoided drugs for 5 yrs and would like to resume her career as a adjuster, what can she do nothing, a license that has been suspended or revoked may never be reinstated although revoked license may be reinstated under some circumstances a hx of drug abuse disqualifies catheen from reinstatement she may have her license reinstated if the commissioner finds that the reason for the suspension or revocation no longer exists she must wait at least 10 yrs before applying for reinstatement
she may have her license reinstated if the commissioner finds that the reason for the suspension or revocation no longer exists
the tx dept of insur examined nadir insur com last sept so nadir is required to maintain a complete record of all complaints received since jan 1 of current year since last sept since sept 3 yrs ago forever
since last sept
Which of the following types of liability holds an insured legally responsible if another party is injured or damaged because its operations, or other conditions pertaining to the insured, are considered inherently dangerous? 4 vicarious liability property damage liability bodily injury liability strict liability
strict liability
Matt is planning a vacation in Greece. He wonders if his casualty insurance policy will cover a loss in Greece. Which provision within the policy should he check to answer this question? liberalization clause assignment provision loss payable clause territory provision
territory provision
who is responsible for setting the rules that define when a tx adjuster's license expires and must be renewed state legislature sets the rules, the commissioner has no authority to modify them the commissioner of any applicable provision of tx insurance law set license exp and renewal rules the commissioner is the only one empowered to set licensing rules the national association of insur commissioners sets them through it models laws and regulations
the commissioner of any applicable provision of tx insurance law set license exp and renewal rules
TDI is required to investigate an insur company if # of complaints against the company indicate that it meets only min performance standards type of complaints against the company indicate that it meets only min performance standards the company receives a comparatively large # of complaints when compared w/ similar insurers the company receives a relatively small # of complaints about the company when compared w/ similar insurers
the company receives a comparatively large # of complaints when compared w/ similar insurers
Under the terms of an insurance policy's liberalization clause, an insurer may revise a standard policy form at the time of renewal for all the following reasons EXCEPT: new exposures court decisions the insurer's need to make the policy more profitable the need to clarify the insurer's intentions
the insurer's need to make the policy more profitable
phantastic insur company writes all of loyds business insur. when money is stolen form loyds safe, he makes a claim under his commercial property policy. tony the claims adjuster to whom loyds claim is assigned , denies the claim b/c money is not covered by loyd commercial property policy. tony discovers that loyd also has a crime insurance policy w/ phantastic, which might cover money stolen form a safe. what, if anything should tony do in this case to avoid possible accusation of engaging in an unfair claims settlement practice tony need not do anything since he properly denies loyd commercial property claim tony should notify loyd that he appears to have coverage under another of his phantastic insur policies tony should contact state insur regulators and notify them of loyds mistake tony should not do anything as failure to mention potential coverage is concealment and the unfair claims settlement practice ac
tony should notify loyd that he appears to have coverage under another of his phantastic insur policies
The conditions section of a property insurance policy describes: what perils are excluded what coverages are provided what the policy number is when and where coverage applies
when and where coverage applies
All of the following are described in the cancellation provision in property and casualty insurance policies EXCEPT. why the policy may be canceled who may cancel the policy when the policy may be canceled where the policy may be canceled
where the policy may be canceled
misty is licensed in tx property casualty and surety adjuster. her employer begins assigning her some workers comp claims, however she is not licensed to work on them. therefore misty may be subject to any of the following sanctions except a 500 fine and 6 mo in county jail 500 fine year in state penitentiary 6 mo in county jail
year in state penitentiary
