Property Insurance

Homeowners Policy, order to receive replacement cost on partial loss, amount of insurance carried must be:

80% of replacement cost

Extra Expense Coverage Form Provides:

Coverage that will permit the insured to continue in business without interruption following a property damage loss.

The utility services (direct damage coverage) endorsement for the BOP provides coverage for?

Direct damage to insured property caused by utility failure

Fair Credit Reporting Act

Obligates insures that use third party source to acquire credit info to inform applicants who have been denied coverage of the identity of that source

An insurance policy that contains unclear language will be:

interpreted against the party who wrote the contract

The farm covered causes of loss board form includes all risks of:

- attacks on covered livestock by dogs or wild animals - accidental shooting of covered livestock - drowning of covered livestock

Condominium Association Coverage forms insure all against direct physical loss or damage to:

- personal property owned, or controlled by the association - outdoor fixtures - personal property of others on the premises in the care

In an insurance transaction, who does a licensed agent legally represent?

Insurer

Insurance broker contacts insurance agent to place large homeowners policy, when insurance broker involved, agent represents what?

Insurer

Flood Insurance Covers:

Leaking of Pipes

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

Retention

Property Insurance, an insurable interest must be:

present at the time the policy is written and also at the time of loss

The method used to determine the value of a loss, should the adjuster and the insured disagree, is called...

Appraisal Method

Individual who owns and lives in a condominium can obtain broad coverage for personal property in the condo under which homeowners form?

HO-6

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

The first named insured

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

indemnification

Who is responsible for enforcing state insurance laws and regulations?

The commissioner, director, or superintendent

Maximum limits for flood insurance coverage (regular program)

$250,000

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

$48,000

what is an authorized insurer?

A company that is approved by the state's department of insurance to transact insurance business in a state.

voluntary relinquishment of a known right is called

A waiver

What is the purpose of the ordinance or law coverage?

Additional coverage provides additional amount of insurance for the increased costs of repair due to zoning law.

An agents license can be terminated for which of the following reasons?

After receiving verbal permission, the agent signed the insured's name on the insurance application

BOP coverage B protects against loss to

Business Personal Property

What is basic difference between the dwelling DP-2 and DP-3

DP-3 provides open peril coverage on the dwelling and other structures

Which part of the insurance contract contains information about the location of the insured property?

Declarations Pages

Agent tells client that homeowners policy covers earthquake, it does not. What unfair practice is this?

Misrepresentation

Which of the following actions is considered rebating?

Offering a client anything of value for purchasing insurance

Which property form should be used when difficult provide insurance company accurate statement values b/c fluctuations month to month?

Reporting form

Temp, short-term evidence of coverage is provided by:

a binder

What type of insurer pays dividends that are taxable and not guaranteed to shareholders?

a stock insurer

Conditions section of an insurance policy

describes the duties of the insured and the insurance company

Insurance Company may examine and audit commercial package policy CPP insures books and records for up to:

3 Years

what type of clause protects a lender when an insured purchases a new car?

A Loss payable clause

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

Business Income Policy

Which part of the dwelling property policy would cover lost rental revenue if the dwelling was being used as a rental property?

Coverage D

Businessowners Policy (BOP) provides crime coverage parts to:

Employee Theft

Which of the following is NOT a condition that appears in the commercial property conditions form?

Extended reporting period

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

Farm dwellings

Which of the following businesses would best be written on a businessowner policy?

Hardware store

Which of the following statements about the standard mortgage clause is TRUE

Nothing the insured does, can prevent the mortgagee from collecting under the policy

When would misrepresentations in an application be a basis for voiding an insurance policy?

Only if they were materials misrepresentations

What type of insurance policy insures against all risks of loss that are not specifically excluded by the policy?

Open peril policy

Chief Officer of insurance department issue penalties to licensees for unfair/deceptive practices EXCEPT:

Order imprisonment for willful violators

Which is not included in Nationwide Marine Definition?

Personal Shipments

Condominium Association Coverage forms insure all against direct physical loss or damage EXCEPT

Personal property owned, used, or controlled by the condo unit owner

Who are the owners of a mutual insurance company?

Policyowners

Homeowners Policy TRUE

Property coverage is broken down into dwelling, other structures, personal property, and loss of use

The commercial package policy interline endorsements

are those endorsements that apply to more than one coverage form

The difference between (additional) and (optional) coverages on a business owners policy is:

optional coverages usually require an additional premium

What is the meaning of actual cash value (ACV)

replacement cost less depreciation

The farm covered causes of loss board form includes all risks EXCEPT:

voluntary parting with covered livestock