Pre-study Assessment Exam (not complete)

The insured's home is covered by an HO-3 policy. Two years ago, the insured bought the home for $58,000. Today, it's replacement value is $60,000. How much Coverage A does the insured need to qualify for replacement cost coverage?

$48,000 - 80% of it's value needs to be covered.

Which policy clause gives insurers the exclusive right to declare damaged property a total loss, thereby restricting the insured's ability to walk away from damaged property?

Abandonment

Which of the following is NOT an Extended Coverage peril?

Burglary

Which of the following is NOT covered under Coverage B - Other Structures in the homeowners policy?

Detached buildings used for business purposes only.

All of the following are basic parts of an insurance policy EXCEPT

Endorsements

What type of policy would cover lost revenue for a business that is forced to close during a period of restoration after a covered physical damage loss?

Extra expense

Which of the following bonds protects an employer from the actions of dishonest employees?

Fidelity

Truckers who transport hazardous materials are required to have an endorsement called a

Form MCS-90

Which homeowner policy form is for dwelling owners who do not wish to insure their older homes for replacement cost?

HO-8

An insurance policy covers fire, will not cover nuclear contamination, and loss must be reported as soon as possible. In this order, where are these facts found in the policy?

Insuring agreement, exclusions, and conditions.

Which of the following is NOT a benefit of workers' compensation insurance?

Pain and suffering

Which one of the following is NOT an agent responsibility?

Prepaying the initial premium.

Self-insurance is an example of what type of risk management?

Retention

Which of the following is NOT covered under the basic dwelling policy form?

Smoke

Which of the following is NOT a use of auto symbols in the commercial auto policy?

To determine which rating territory applies to the covered autos.

A voluntary relinquishment of a known right is called

a waiver

In a CGL policy, an occurrence is defined as

an accident, including continuous or repeated exposure to the same general harmful conditions.

Which of the following auto coverages insures only the policyholder's legal liability?

bodily injury/ property damage

The BOP Coverage B protects against loss to

business personal property

A personal automobile policy's medical payments coverage will pay for

damage to the insured's car caused by a collision with another car

The conditions section of an insurance policy

describes the duties of the insured and the insurance company.

Dwelling policies may be used to insure all of the following EXCEPT

farm dwellings

The attempt to restore an insured to his pre-loss condition is known as

indemnification

The commercial package policy interline endorsements

provide coverage for interline handlers

Under the commercial package policy, the person whose name is listed first in the declarations and is assigned certain responsibilities and obligations is

the first named insured

The insured's property insurance policy has a deductible clause. This means that

the insured must pay a certain amount for each loss incurred under the policy.