missed questions-1
A bond is written for a set limit, and the surety will be liable only for this amount of the limit. This limit is known as the a) Penalty. b) Face value. c) Stated amount. d) Limit of liability.
a
Which professional liability form provides form coverage for liability arising out of malpractice, error, or mistakes made in rendering professional services? a) Lawyers professional liability b) Directors and officers liability c) Medical malpractice d) Physicians, surgeons and dentists malpractice
d
A contract for the transport of goods between the shipper and the carrier is called a) A bill of lading b) A bailment c) A binder d) A bill of sale
a
What is the minimum number of continuing education hours that must be completed on the topics of ethics? a) 3 b) 4 c) 5 d) 2
a
A participating insurance policy may do which of the following? a) Require 80% participation b) Pay dividends to the policyowner c) Provide group coverage d) Pay dividends to the stockholder
b
After passing the licensing examination a person must apply for a producer's license within a) Six months. b) Two years. c) 30 days. d) 90 days.
b
All of the following are supplemental payments found in liability policies EXCEPT a) Limited amounts for bail bonds and other bonds related to a claim. b) Costs the insured incurred in hiring an attorney. c) All expenses and defense costs incurred by the insurer. d) Reasonable expenses incurred by the insured.
b
All of the following statements describe the concept of strict liability EXCEPT a) It is applied in product liability cases. b) It is imposed on defendants engaged in hazardous activities. c) Claimants may need to provide proof that a product defect caused an injury. d) It is imposed regardless of fault.
b
An insured's accounts receivable records have been damaged. The loss may be covered with a) The valuable papers coverage form. b) The accounts receivable coverage form. c) Commercial property insurance. d) The commercial articles coverage form.
b
If an insured bakery is sued because its marketing states that the products of another bakery may not be safe, which coverage of a commercial general liability policy will defend the suit? a) Completed operations b) Personal and advertising injury liability c) Premises and operations d) Product liability
b
Which of the following insurers are owned by stockholders who have the usual rights of ownership, including the right of voting? a) Fraternal b) Stock c) Mutual d) Reciprocal
b
All of the following are accounts of the Maine Property and Casualty Insurance Guaranty Association EXCEPT a) The Automobile insurance account b) The account for all other applied insurance c) The Title insurance account d) The Worker Compensation insurance account
c
The designation symbols used in commercial auto policies can be found in which policy section? a) Covered Auto b) Liability Coverage c) Definitions d) Conditions
c
Which of the following risks is eligible for coverage under a businessowners policy? a) Automobile dealers b) Bars or taverns c) Condominiums d) Banks
c
The rental vehicle coverage in a personal auto policy only applies to rental agreements that are a) 30 days or more. b) 4 days or less. c) 15 days or more. d) 45 days or less.
d
What are common carriers required to issue to every shipper that it transports goods for? a) A transit coverage form b) A motor truck cargo form c) A common carrier cargo liability notice d) A uniform bill of lading
d
What is the purpose of the Insurance Guaranty Association? a) To protect insurance companies against insurance fraud b) To provide double indemnity for the insured's loss c) To prevent unfair trade practices d) To protect policyowners against insurer insolvency
d
An insured has a special form dwelling policy written for $100,000 on a dwelling. The dwelling's replacement cost is $115,000. Fire causes $75,000 in damage to the dwelling, $15,000 damage to a separate garage, and kills 10 trees valued at $600 each. How much will the policy pay for the trees? a) $5,000 b) $10,000 c) $60,000 d) $75,000
a
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? a) Mutual b) Reciprocal c) Nonprofit service organization d) Stock
a
If an insurer becomes insolvent, which of the following would pay benefits to policyholders? a) The Guaranty Association b) The NAIC fund c) The State d) A federal reserve fund
a
To be considered an "authorized" or "admitted" insurer in a specific state, what must the insurer obtain from the state department of insurance? a) A Certificate of Authority b) A warranty c) A contract with the state d) All of the above
a
Under the dwelling policy, Coverage C - Personal Property is a) Limited to covering a servant's property while at the insured location. b) Automatically provided as 50% of Coverage A. c) A prohibited coverage in the dwelling form. d) Limited to 50% of the amount of insurance that is written as Coverage A
a
What type of damages may be awarded by the court to create disincentives that discourage behavior that is deemed highly undesirable by society? a) Punitive b) General c) Compensatory d) Specific
a
In which of the following situations would the jewelers block extension cover a loss? a) An employee of a jewelry store is wearing a cameo brooch and ring set to display to customers. During the day, she discovered the brooch has fallen off, and she can't find it. b) A jeweler fixes a necklace and sends it by registered mail to the owner. When the necklace arrives, it has been damaged. c) A jewelry store is robbed while displaying bracelets and necklaces at a public exhibition. d) A jeweler agrees to exhibit a necklace and earrings set in a showcase away from the premises. The case is broken into, and the set is stolen.
b
When can a properly licensed producer without an appointment with an insurer share in the commission on the policies sold by that insurer? a) Upon a written request for an appointment b) When placing coverage through another appointed producer c) When placing coverage with that insurer on regular basis d) Upon a written permission from the insurer
b
When can an insurance producer who does not have an appointment with an insurer place insurance coverage with that insurer? a) When the producers represents the insurer b) When the producer does not receives a fee from the insured for his/her service c) When the transaction does not involve a commission d) Never; producers may only place coverage with the insurers who appoint them
b
Which of the following is NOT the consideration in a policy? a) The promise to pay covered losses b) The application given to a prospective insured c) Something of value exchanged between parties d) The premium amount paid at the time of application
b
Which of the following is the type of property NOT covered by the homeowners policy? a) Attached structures b) Land on which the property is located c) Dwellings d) Materials and supplies
b
The Superintendent can issue a temporary license that can be effective for a maximum of a) 90 days. b) 180 days. c) 1 year. d) 2 years.
b, 180 days
All of the following are unfair claims settlement practices EXCEPT a) Failing to adopt and implement reasonable standards for settling claims. b) Failing to acknowledge pertinent communication pertaining to a claim. c) Suggesting negotiations in settling the claim. d) Refusing to pay claims without conducting a reasonable investigation
c
All of the following conditions must exist for injury or damage to be included in the products and completed operations hazard of a commercial general liability policy EXCEPT a) The injury or damage must arise out of the insured's product or work. b) The injury or damage must occur after the insured has released physical possession of the product to another. c) The injury or damage must occur within 90 days after the insured's work is completed. d) The injury or damage must occur away from the insured premises
c
An insurance producer fails to obtain automobile insurance for a client after agreeing to do so. The client is involved in an automobile accident after running a red light and is found to be at fault. The damage to the other vehicle totals $5,000. Which statement regarding the producer's errors and omissions liability policy is true? a) It will not provide coverage because the property damage resulted from the client breaking the law. b) It will provide coverage because punitive damages have been awarded. c) It will provide coverage because the damage to the client resulted from the producer's negligence. d) It will not provide coverage; such physical damage to property is not covered.
c
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? a) Loss of Use Coverage b) Additional Coverage Property Removed Endorsement c) Transportation/Permission to Move Endorsement d) Housing and Transportation Coverage
c
Both the broad theft and limited theft endorsements on the dwelling program exclude all of the following types of property EXCEPT a) Motor vehicles licensed for the road. b) Aircraft. c) Watercraft. d) Credit cards.
c
In the event of a claim under a commercial general liability policy, the insured has all of the following duties to the insurer EXCEPT a) Furnishing the insurer with copies of any demands, notices, or other legal papers received in connection with a claim or suit. b) Assisting the insurer upon request in the enforcement of any right against any person or organization that may be liable to the insured. c) Submitting to a medical exam when requested. d) Providing prompt written notice of any claim or suit actually filed against the insured.
c
In the personal auto policy, owned trailers being towed by an insured auto are automatically covered for a) Comprehensive (other-than-collision) coverage. b) Collision coverage. c) Uninsured motorist coverage. d) Towing coverage.
c
Individuals in the business of selling construction equipment and mobile equipment should insure with a/an a) Installation floater. b) Personal property floater. c) Equipment dealers coverage form. d) Contractors equipment floater.
c
The employee's average weekly wage is determined by finding the average of a) The employee's past wages. b) The total benefits, including insurance, received by the employee. c) The total income produced by the employee per week. d) The employee's total lifetime wages.
c
The garage coverage form is used to insure a) All types of organizations other than auto businesses and motor carriers. b) Owner-operators who use their own trucks to haul property for the motor carriers that hire them. c) Auto businesses, such as auto dealers, service stations, and auto repair shops. d) Businesses that use automobiles to transport property of others or their own property.
c
The members of a limited liability company are insureds under a businessowners policy (BOP) if a) A single individual member of the limited liability company is listed as the named insured. b) Members of a limited liability company cannot be insureds under a BOP. c) The limited liability company is designated as the named insured. d) Each individual is listed as a named insured on the policy.
c
Under the additional coverages of a businessowners policy, property removed to protect it from loss will be covered at another location for up to a) 10 days. b) 14 days. c) 30 days. d) 45 days.
c
What insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk? a) Nonconcurrency b) Primary and excess c) Other insurance d) Valid insurance
c
Which of the following is eligible for a businessowners policy? a) A convenience store with gas pumps with 60% of gross sales from gasoline sales b) A mercantile risk with gross sales of $4 million c) A 6-story office building with less than 100,000 square feet total area d) An 8-story office building
c
Which of the following statements is true regarding the premium computation for workers compensation insurance? a) The insured pays a guaranteed premium based on an estimated value of the annual income received. b) The premium is set at the beginning of the policy period and will not change. c) 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. d) The premium basis for workers compensation insurance varies by the type of industry in which the insured is involved.
c
Which of the following would be required to obtain a Maine Insurance Producer's license? a) A person acting as a special agent who assists insurance producers by providing technical advice and assistance b) A person who underwrites applications for insurance for the insurer c) A trustee of an employee trust plan that is compensated indirectly by the company issuing the contract d) A clerical employee that is only indirectly involved in the sale and solicitation of insurance and who is paid a fixed salary
c
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT a) An offer of employment. b) Stocks, securities, or bonds. c) An offer to share in commissions generated by the sale. d) Dividends from a mutual insurer.
d
An employee drives a company auto, but does not own a vehicle herself. What endorsement could be added to the insurance policy covering the company auto that would provide coverage to the employee when she drives someone else's car for her personal use? a) Bobtail coverage b) Rental car coverage c) Personal injury protection d) Drive other car coverage
d
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 of liability does the insured have? a) Split b) Aggregate c) Per occurrence d) Combined single
d
Bill was injured while at work. Because of this injury he was unable to work for 5 days. Workers compensation will pay loss of time benefits to Bill for a) 2 days. b) 3 days. c) 5 days. d) 0 days.
d
In a participation plan, the insured may be eligible for which of the following? a) An increase in insurance over time b) Lower premiums c) Guaranteed dividends d) A partial premium refund
d
In insurance, an offer is usually made when a) The insurer approves the application and receives the initial premium. b) The agent hands the policy to the policyholder. c) An agent explains a policy to a potential applicant. d) The completed application is submitted.
d
Persons covered under an insurance policy, whether named or not, are known as the a) Named insureds. b) First named insureds. c) Additional insureds. d) Insureds.
d
The part of the insurance contract that describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured is called the a) Conditions. b) Exclusions. c) Declarations. d) Insuring agreement.
d
Which of the following does the term proximate cause refer to? a) Injury that leads to monetary compensation b) Duty of the defendant to act c) Reason for filing a lawsuit d) Negligence that leads to an injury
d
Which of the following is covered under the Mail floater of a Commercial Inland Marine policy ONLY if is sent by registered mail? a) Postage and revenue stamps b) Money orders, checks, drafts, notes c) Bonds, stocks, stock certificates, coupons attached to bonds d) Currency and unsold travelers checks
d
