Practice Test #5

a policy holder has an quipment breakdown policy with a $200,000 limit. if a boiler explosion causes $100,000 damage to the boiler itself, $50,000 damage to the insured's building, and $30,000 of expediting expenses, how much will the insured collect under the policy?

$175,000

Under businessowners policy Section I, if an insurer wants to nonrenew a policy, how many days before the expiration date must the insurer notify the mortgageholder?

10 days

when insureds are injured on the job in CT, they must wait how long for disability benefits to begin under workers compensation?

3 days

An insured with a Homeowners policy has removed property from the insured location to protect it from loss that could be caused by a covered peril. The removal coverage applies for how many days?

30 days

in CT, if an insurer plans to nonrenew a dwelling policy that has been in effect for more than 60 days, the insurer must provide an advance written notice to the insured of at least how many days?

60 days

in business income additional coverage in a BOP, the waiting period that must occur before the period of restoration may begin is

72 hours

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

with regards to a homeowners policy, which ocverage for indirect or consequential losses?

Coverage D

which federal act provides benefits to injured civilians who are employed by the federal government?

Federal Employees Compensation Act

An insured runs a day care in her home. She has purchased the home day care endorsement under her homeowners policy. Which of the following losses would her coverage cover?

a child trips over a toy in the driveway, cuts her knee, and requires stitches

all of the following would be eligible for coverage under the dwelling policy EXCEPT

a house that has 5 residential units

all of the following statements concerning CT's Automobile Insurance Plan are true EXCEPT

applicants applying for coverage must have applied for and been rejected in the voluntary market within the last 10 days

in order to get a nonresident license in CT, a producer must do which of the following?

apply and pay a fee to a nonresident state that reciprocates

following a property loss that is covered under a businessowners policy, if the insurer and insured cannot agree on the amount of the loss, what method is used to resolve the issue?

appraisal

Which inland marine form would provide the best protection for a dry cleaning company against loss or damage to their customer's property while in the care, custody, and control of the dry cleaners?

bailee's customer policy

the liability coverage of the businessowners policy is written on a

business owners liabiliity coverage form

each insurer's capacity to write new business in the state is limited by its current level of

capital and surplus

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

collapse

The part of the policy that sets forth the rules of conduct, duties, and obligations of the parties is called the

conditions

which of the following risk is eligible for coverage under a BOP?

condominiums

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?

consideration

all of the following are supplemental payments found in liability policies EXCEPT

costs the insured incurred in hiring an attorney

the designation symbols used in commercial auto policies can found in which policy section?

covered auto

which of the following examples of losses paid under an HO-3 also would be paid under an HO-2 homeowners policy?

damage to the dwelling caused by lava or dust from a volcanic eruption

which of the following is a mandatory part of an insurance policy that varies with each individual policy?

declarations

which of the following special liability coverages will provide protection to managers of a corporation for claims arising from a wrongful act committed by the manager while in an official capacity?

directors and officers liability

residential structures, including individual condominium units, and their contents are insured by what part of the National Flood Insurance Program?

dwelling policy form

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?

implied

which of the following endorsements is used by individual business owners who use company vehicles for personal use rather than purchasing a personal vehicle?

individual named insured

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

insuring agreement

which of the following would be covered under the Broad Form (DP-2) Policy's falling object peril?

interior building damage if the exterior was damaged first

according to the nationwide marine definitions, risks that may be the subject of inland marine insurance include all of the following EXCEPT

large pleasure boats

For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become

larger

a policy condition that states if a policy is broadened with no additional premium, then the expanded coverage will be automatically applied to all policies of the same type is known as

liberalization clause

Under the dwelling policy, Coverage C - Personal Property is

limited to covering a servant's property while at the insured location

If a person is using an auto with the belief that he 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 not be a violation of state insurance regulations?

producer c uses her license to write uncontrolled business only

in a personal umbrella policy, the amount paid by the insured for certain losses not covered under the primary coverage is called

self-insured retention

applicants for a license must furnish satisfactory evidence of all of the following to the Commissioner EXCEPT

state residency

to be eligible for coverage under the National Flood Insurance Program, an insured must live in which of the following communities?

that has met the minimum floodplain management guidelines

an insurance agency could purchase an errors and omissions insurance policy which would provide protection in the event of any of the following events EXCEPT

the agency loses commission income from policies that were not issued by the insurer

the amount an insurer will pay under Coverage D (loss of use) depends on

the amount of coverage on the dwelling

peril is most easily defined as

the cause of loss insured against

A parking garage owner completed major renovations to a parking garage just prior to selling it to another company. Three months later, overhead concrete fell onto cars in the second floor level. Under the garage coverage policy conditions, which of the following is true?

the damage occurred when the concrete fell

according to business owners policy section !, which of the following is NOT condition to be met for the terms of the policy to apply to mortgage holders?

the mortgage holder must petition the state department of insurance for named status

which of the following claims does NOT fall under the scope of liability coverage of Section II of a homeowners policy?

the named insured is borrowing a friend's jacket which is later damaged

what is required of a nonresident producer who moves to CT from another state?

the producer must report a change of address to the DOI within 30 days of the change

which of the following losses would most likely NOT be covered under Coverage A in the dwelling policy?

theft of a renter's lawnmower used to service the premises

The insured with a claims-made commercial general liability (CGL) policy may request in writing claim and occurrence information from the insurer at any time up to 60 days after the policy period ends. The insurer must provide the information

within 45 days

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce

without receiving written consent from an insurance regulatory authority

which of the following would NOT be covered by medical payments to others in Section II of your HO policy?

you cut your leg while whacking weeds in your backyard with your neighbor's weed whacker