Property Practice Test

If a registered insurance agency moves across town, how long does the agency have to notify the Director of the move?

30 Days

Any licensed insurance producer, limited insurance representative, or temporary insurance producer who is convicted of a felony must report such conviction to the Director within ____ days of the judgment.

30 days

Charlotte has a whole life policy with a cash value of $100,000. Her agent told her that if she withdraws $35,000 of the cash value of her current policy and uses it to pay premium for another policy, she will have better coverage. This is an example of what?

Churning

The Fair Credit Reporting Act of 1970 requires which of the following?

Consumer reports cannot contain information on bankruptcies more than 10 years old.

Which of the following constitutes misrepresentation?

Stating that the state or federal government guarantees funds in any way

If Joseph breaks his leg falling down the stairs while playing at Sarah's house, what coverage would be the first to pay for emergency medical treatment he receives?

Sarah's family's Homeowner policy - Coverage F (medical payments)

Which commercial rating method uses charges and credits to modify class rates?

Schedule

Which insurance company department analyzes a wide range of statistical data to help predict losses and required income?

Actuarial

An umbrella policy:

Adds additional liability coverage of $1 million or more, covering activities that may not be covered by the underlying policies

HO Coverage C limits of special liability for certain types of personal property include all but which of the following?

$2,500 for loss by any cause of silverware, goldware, platinumware or pewterware

An insurance producer or registered firm which brokers insurance with a company with which it does not have an agency contract, must maintain what bond amount?

$2,500 or 5% of the premiums brokered in the previous year, whichever is greater.

In which section of an insurance policy can the insurance company's promise to indemnify the insured against losses suffered from covered perils be found?

Insuring Clause

R owns an HO-6 condo unit owner policy. If R's condo association assesses her a $2,000 fee toward payment of a liability claim for which the association has responsibility, which of the following coverages would pay for R's assessment?

Loss Assessment Coverage

Which of the following sections of a homeowners policy covers an indirect loss?

Loss of Use

The BOP Standard Form Policy insures against any of the following perils EXCEPT...

Loss to a building indirectly resulting from the escape of water

M's insurance license has not been in force for seven months due to non-payment of the necessary fees. How long does M have to reinstate her license through payment of the necessary fees before she will need to retake the insurance exam?

M needs to reinstate her license within the next 5 months.

Covered perils under a DP - 1 policy always include the following EXCEPT:

Theft coverage.

Which is a requirement of a Homeowner policy?

There can be no more than four-family occupancy.

How long after the event can information about credit transactions of $150,000 or more remain on a person's consumer report?

There is no limit.

How long after the event can negative information remain on a person's consumer report if the individual is purchasing life insurance?

There is no limit.

All of the following are correct about complaints against insurers EXCEPT:

There must be a 24-hour phone number provided to which customers may call complaints at their own expense.

J is found to be representing herself as a licensed insurance producer, when in fact she is not. Which of the following is not one of the penalties that might be assessed?

Up to five years in jail

Up to how much coverage is standard for Water Backup and Sump Pump Overflow?

Nothing

A(n) _______ policy pays after the limits of the primary policy have been reached.

excess

Standard Fire Policy perils include:

lightning.

No coverage is available under any circumstances without:

Payment of the initial premium.

A pool supply company has an increased amount of inventory on hand during Spring and Summer. Which of the following coverages would the store owner want to have in place to cover this increased inventory amount without needing to carry a high amount of coverage throughout the year?

Peak Season

What is a cause of a possible loss, such as fire, windstorm, theft, explosion, or riot, covered in an insurance policy called?

Peril

M insures his printing business with a business owner standard form policy. Due to a sewer backup problem, M's business suffered a power surge that caused the loss of electricity to his shop and a $6,000 loss to his machinery. If M's policy has the Utility Services- Direct Damage Coverage Form and a standard deductible, how much will the insurer pay for this loss?

$ 0

What is the minimum amount of liability coverage on an HO 00 03 (HO-3 Special form) policy?

$100,000

Several people were seriously injured in an accident at an insured's home. If the personal liability limit in the insured's homeowners policy is $100,000, the MAXIMUM that the insurance company will pay is:

$100,000 plus the insured's defense costs

An insurance company which fails to comply with the proper termination notice procedure of a limited insurance representative's appointment will be fined _____ for each violation.

$1,000

The HO-6 condominium unit owner coverage form includes what minimum level of loss assessment coverage?

$1,000

Under an HO-6 form, which of the following amounts of coverage is automatically included for loss assessment?

$1,000

The minimum medical coverage carried on all homeowner forms is:

$1,000.

How much coverage does the HO policy offer for electronic devices while they are in an auto?

$1,500

How much coverage on his HO policy does Sal have for personal property that he uses in his business if he brings it on a business trip to another city?

$1,500

Sherry's home was hit by hail and had $2,000 damage. How much will her insurer pay for repairs if Sherry has a standard deductible?

$1,750

G, an insurance producer, has been found guilty of misrepresentation. What possible fines may be assessed?

$100 to $5,000

The fee for reinstating a lapsed license is

$180

The penalty fee for reinstating a license that has lapsed because the agent did not pay the renewal fee before the license lapsed is:

$180

The fee for an insurance producer license is:

$180 every two years.

If an agent sells insurance for an insurer with whom he does not hold an agency contract, what is the minimum bond the agent must file with the Director?

$2,500

The HO policy coverage for theft of firearms and related equipment is:

$2,500

John has $15,000 coverage for ID theft on his homeowner policy though an endorsement. If John suffers a $5,000 loss due to identity theft, how much will John need to pay out of his own pocket for the damages?

$250

Once a city has registered with the NFIP for coverage, single family homes are eligible for ________ on the emergency plan and for __________ once the area has been approved under the regular plan.

$35,000 / $250,000

The insurer will provide up to what amount of coverage for a grave located away from the insured premises?

$5,000

Up to what amount of a fire department service charge will the insurer pay?

$500

J had two trees fall during the last windstorm. One fell in his backyard; the other fell across his driveway. How much coverage is available under his HO policy for removal of the trees?

$500 for removal of the tree across his driveway

The contents of a non-residential building may be covered up to what amount under the National Flood Insurance Program's non-emergency program?

$500,000

What is the annual aggregate business liability limit under a Business Owner Policy?

$600,000

If Frank's building is insured under a DP-1 policy for $80,000, for how much is the detached garage covered?

$8,000

P is an insurance producer and was convicted of a felony today. How long does he have to notify the Director of his conviction?

30 days

If a business owner has a BOP policy with a Protective Safeguards endorsement how soon must an insured notify the insurer if the insured's sprinkler system breaks down?

10 days

Within how many days of receipt must the Director forward a legal process to a non-registered agent's address of record?

10 days

After the insured makes a claim, the insurer has how long to open communications with the insured, acknowledge receipt of the claim, and provide necessary claim forms?

15 days

How many hours of pre-licensing education are required to obtain a license for motor vehicle insurance?

2 1/2 hours

Jim has $200,000 homeowner insurance coverage in each of two policies. Both policies pay out $25,000 in replacement costs on $50,000 of damage. What type of policies does Jim own?

2 primary policies.

How many hours of Continuing Education are required before renewal of an insurance license?

24 hours biennially

D has 3 children of her own and runs a home day care business from her home. If D has a Home Day Care endorsement on her policy, what is the maximum number of children she can watch in addition to her own without special permission?

3 children

E's license has been on inactive status for one year. How much longer can E's license remain inactive before she needs to meet all the standards of a new applicant to be restored to active status?

36 months

Property that has no residents or active business for more than ___ days is considered to be vacant or unoccupied.

60

How many days do the HO policies allow a home to be vacant before it is no longer covered for Vandalism and Malicious Mischief?

60 days

Consumer reports cannot contain information about most adverse information (i.e., arrests, liens or lawsuits) if it is how many years old?

7

For how long must a producer keep financial records available for audit purposes?

7 years

L, an insurance producer, has been called to active duty in the National Guard. When he renews his license, for how long will L's license be renewed?

90 days

Which of the following is NOT eligible for a Business Owner (BOP) policy?

A business with only three locations

The term insurance means:

A contractual coverage binding the insurer to indemnify the insured against a specified loss in return for paid premiums.

Which of the following motor vehicles would be covered by a homeowner's policy?

A tractor used to mow the lawn of the insured property

Which of the following boats is covered under Section II of an HO-3 form?

A twenty-horsepower outboard motorboat owned by the insured

Which Dwelling form is the least comprehensive that would cover damage caused by the weight of ice, snow, or sleet?

DP-2

Which Boiler and Machinery policy object definition form covers air conditioning units?

Pressure and Refrigeration Object Definition Form

Coverage for the building on an HO-8 policy is done on what type of basis?

ACV

If S owns a DP-1 policy what type of coverage does S have for Coverage C- Personal Property?

ACV

Which of the following concepts refers to the fact that an insured may not declare something a total loss and turn it over to the insurer and demand payment in full without the insurer's consent?

Abandonment

General Policy Exclusions include all of the following EXCEPT:

Above ground damage from volcanic eruption.

A fire in Spencer's office destroyed his computer and software, including the invoice records for his clients. Which of the Commercial Inland Marine coverages would pay for amounts due from customers that Spencer is now unable to collect because of the damaged records?

Accounts Receivable

Which of the following must a non-resident agent file with the Director of Insurance to assign him as the non-resident's agent in respect to any lawful process in any action, suit, or legal proceeding against the applicant?

Affidavit of agency

An insurer organized under the laws of a jurisdiction outside of the United States or its territories is called a what?

Alien Insurer

What is an operational item on a licensing exam?

An exam question which will be considered in determining an examinee's score.

Which of the following is an example of someone acting in a fiduciary capacity?

An insurance agent collecting renewal premiums

Which of the following would be considered discrimination?

An insurance company decides to increase the premium charge on life insurance policies issued to non-Catholics because of difference in beliefs.

If R owns an HO-3 policy for a single family house, what coverage does R have for Coverage D - Additional Living Expense?

Any necessary increase in living expenses.

What is NOT included in the definition of an insured in a homeowners policy?

Any occupant within the home at the time of accident or injury

Insurance privacy acts do NOT require:

Applicants to be given an opportunity to review information gathered on them that will be used for marketing purposes.

Evan wants to apply for an insurance license. How old does he need to be?

At least 18

Which of the following is a characteristic of the Dwelling Special form policy?

The building is covered for replacement value.

All of the following coverages are standard coverages available through a boat owner policy EXCEPT...

Beds or other furniture kept on the boat.

Aki was buying a house and needed a document at the closing to prove he had homeowners insurance on the building. Which of the following could he use if unable to acquire an actual policy by the time of closing?

Binder

All of the following are excluded from coverage on a homeowner's policy except loss due to:

Bodily injury to another person in a pick-up basketball game.

A Dwelling policy is most likely to cover...

Buildings.

To avoid adverse selection, an insurance company may not do which of the following?

Charge very high premiums for Jewish history teachers.

All BOP policies do NOT include which of the following additional coverages?

Collapse

If Carol opens a bakery in the bottom floor of her home, what type of coverage will she need?

Commercial coverage

Which of the following is NOT covered under the nationwide marine definition?

Commercial refrigeration unit coverage

Company A discovered that Agent Q was embezzling premium money. What is Company A's responsibility once it terminates Q's agency contract?

Company A must notify the Director of the termination within 30 days and give the Director copies of any evidence they have of the embezzlement

Which of the following is true about coverages in a DP-3 Special Form policy?

Coverages A, B, and D are each covered on an open-peril/all-risk basis.

Perils covered by the National Flood Insurance Program do not include which of the following?

Damage from rain

If an insured wants to verify that a resident relative is automatically covered under an HO-3 form, the insured should consult which of the following sections in the policy?

Definition of Insured

An Illinois producer must maintain a PFTA if the producer:

Deposits $300 collected premium into his bank and the same day sends a check to the insurer for the full premium amount.

Which of the following is not a function of the underwriting department?

Determine the proper rate to charge customers.

Which is NOT true of the NAIC?

Directors are responsible for passing legislation regarding insurance in their states.

An insurer transacting business in the state in which it is chartered is called a:

Domestic Insurer

Which of the following individuals would need to take a written examination in order to obtain an insurance producers license?

E has been widowed for four years, and her husband was licensed.

General Property policy exclusions include:

Earth movement, power failure, water damage by flood, and sewer back-up.

An agent that is appointed by an insurer to represent the company by selling and servicing policies on its behalf is called a what?

Exclusive Agent

The process of using a group's own premium and claims experience to calculate premium rates is called what rating method?

Experience Rating

Which is NOT a type of insurance agent?

Express agent

Tom operates a large-scale telemarketing company. What coverage should Tom buy if he is concerned that a fire might cause him to move his operations to another temporary location while his building is repaired?

Extra Expense

If an investigative consumer report is made on an insurance applicant, which of the following laws gives the applicant the right to request a personal interview?

Fair Credit Reporting Act

The federal insurance program that offers burglary and robbery insurance in certain urban high crime areas is called the...

Federal Crime Insurance Program (FCIP).

Which of the following insurers often offer insurance coverage for situations where standard insurers will not offer coverage because of particularly high risk or loss potential?

Federal or state government

Which of the following policy forms does not insure the actual building?

HO 4

What does the HO 5 policy form cover that the HO 3 form does not cover?

HO 5 Forms cover personal property on an open-peril/all-risk basis.

The owner of an older home who does not want to insure his home on a replacement cost basis because the replacement cost would far exceed it's market value would be BEST advised to purchase which of the following?

HO 8

Which homeowners policy offers the least insurance coverage but still covers damage caused by burglars?

HO-3

Which of the following homeowners policies gives an insured the BROADEST coverage on both dwelling and contents?

HO-3

When one of a home's main support beams cracks, causing the abrupt collapse of the building so that it cannot be occupied, the structural loss would be covered by all but which of the following HO (Homeowner's) policy forms?

HO-4

What is a condition that creates or increases the chance of loss?

Hazard

A Reinsurer:

Insures other insurance companies against catastrophic losses such as earthquakes.

Under which type of directive may an agent have business cards with the company logo made?

Implied

The right of an agent representative of an insurance company to have business cards with the company logo made is what?

Implied directive

Which of the following protects a trucking company from liability if the produce it is carrying spoils during transit?

Inherent Vice

The Commercial Inland Marine form that covers machinery while in-transit to a building where it will be used is called the:

Installation floater.

The Fair Credit Reporting Act provides for all of the following EXCEPT:

Insurance companies must send medical information directly to the insured.

All of the following are characteristics of "Write Your Own" flood insurance EXCEPT:

It is administered by the insurance company that writes the policy.

Which of the following statements about the Motor Truck Cargo Policy- Trucker's form is NOT true?

It is used to protect the shipper from legal liability arising from damage caused by the cargo

Up to how much coverage does the HO-4 policy allow toward Coverage D- Additional Living Expense?

It pays for the shortest time to repair or replace the damage or until the insured can relocate

David Mackay had a customer's diamond ring in his repair studio. What Commercial Inland Marine coverage form would cover Mr. Mackay's jewelry store in the event that the ring was damaged due to a covered peril?

Jeweler's Block

In a Business Owner Policy, the liability section covers:

Legal defense

Which is a financial responsibility of an insurance agent?

PFTA

The Personal Liability section of a homeowners policy covers which of the following potential expenses?

Medical payments to others

Property policies offer coverage in all but which of the following places?

Mexico

Each of the Dwelling policy forms is what type of policy?

Mono-line policy

An insured does not take steps to keep his yard free of debris because he knows that insurance will cover any claim if someone is injured on his property. This is an example of what type of hazard?

Morale

Limited Representatives in Illinois can sell all of the following EXCEPT:

Mortgage Insurance.

An insurance company owned by policyholders who can attend and vote at company meetings is known as a:

Mutual company

A fire at an office park caused a power outage and D's telemarketing company needed to temporarily relocate. Which of the following would NOT be covered if D owns a Utility Service - Time Element Coverage Form with his BOP policy?

New phones that D purchased to replace his older phones that are still at the main office

An insurer not authorized to transact business in the state because it either did not seek admission to the state or failed to comply with state requirements is called a what?

Non-admitted Insurer

Clair has a necklace worth $1,500 that she is concerned may be stolen. If she has an HO policy and feels that she can pay her deductible, what other coverage should she have to make sure her necklace is adequately covered?

None

Which is not a filing method that an insurance company could use to file its rates with the Illinois Department of Insurance?

Open Approval Rating

What coverage does the HO 05 policy offer as standard coverage that none of the other Homeowner policy forms offers?

Open-peril/Special-peril/All-risk coverage for personal property

For which of the following does the owner of an HO-4 policy have no coverage?

Other structures

Many states require a producer to maintain a ________ in which to deposit any cash they receive for an insurance policy premium before transmitting the money to the insurer.

PFTA

In a homeowners policy, which of the following coverages would NOT be subject to a deductible?

Personal Liability

The Livestock Coverage Form EXCLUDES all of the following from coverage EXCEPT:

Pigs kept in a pen on the farm

The maximum amount of total insurance that an insurer can issue is based upon:

Policy reserves.

All of the following are excluded from coverage on a BOP Special form policy EXCEPT...

Pollution caused by a covered risk.

Which of the following is NOT a contractual requirement?

Premium Consideration

Which of the following is not an example of misrepresentation?

Presenting the company's audited financial statements to gain the trust of a client

All but which of the following are requirements for FAIR plan eligibility?

Properties may not be located in inner city areas.

Which of the following statements about the Boiler and Machinery Coverage form is NOT correct?

Property covered under the policy includes property adjoining the insured's property that may be damaged by an exploding boiler.

Which of the following situations is not a liability exclusion under the HO policies?

R is bitten by the insured's dog as R is climbing through a window to burglarize the house

Agent Donna, in an effort to produce more business, decides to hold a drawing for a cruise for people who purchase a new policy within a specified time. This is an example of what?

Rebating

An insurer believes that citizens of downtown Burntville are dangerous and decides to increase rates to an unreasonable amount to discourage applicants from Burntville. This is an example of:

Redlining

If a trucking company wants to limit their liability exposure on the cargo it carries it would use a:

Released Bills of Lading policy.

J owns a building that is insured on a dwelling policy for $75,000. If he were to sell the building he could sell it for $60,000. If J insures the building under a DP-3 policy, what type of coverage does J have for Coverage A- Building?

Replacement Cost

While conducting an agency audit, which of the following does the Director or his designees NOT have authority to do?

Require the individual to indefinitely suspend operating the agency on the date of the audit as the result of improprieties found in the examination.

Which of the following is NOT one of the devices included in the Protective Safeguards Endorsement?

Service contract for a company to keep the burglar alarm in working order

Which of the following is NOT an allowable disbursement from a PFTA?

Small claims payments that the producer believes will be reimbursed.

Which of the following types of property policies is considered an "open peril" policy?

Special Form

Debit Insurers do what?

Specialize in industrial insurance with low face amounts of one or two thousand dollars.

The Consideration Clause does what?

States that the insured pay a premium, in return for which the insurer will provide coverage as stated in the policy

What clause in a property insurance policy prevents an insured from receiving payment for damages from both the insurer and a third party for the same damages?

Subrogation clause

Which of the following is not one of the possible penalties that may be assessed if T violates a written order issued by the Director regarding the audit of an insurance agency?

T may face up to one year in jail.

Each of the following is covered by the mold endorsement EXCEPT:

Tearing out and replacing boards around the entire home to prevent the spread of mold from one area to another

All of the following are correct about the Illinois FAIR Plan EXCEPT:

The Plan is administered by the Illinois Department of Insurance.

Which of the following coverages would be most needed to protect a small business owner against the possible loss of business income and extra expense that might occur if there is a loss as the result of utility service interruption?

The Utility Service -Time Element Coverage

No policy will ever be issued without:

The applicant's signature.

Who/What is it that decides what to do in the event of an insurer insolvency?

The commissioner/director of insurance

Which of the following is NOT required by most states that have privacy acts?

The company must not gather information from certain sources if the applicant tells them not to do so.

To whom does the insurance company send information about the policy such as renewal or premium notices or notices of changes?

The first named insured

S has been an agent with the same insurance company for 15 years. What will be the result if S has taken 20 hours of continuing education when his license comes up for renewal?

The insurer will not pay commissions to S.

What is included in a CPP's Common Policy Conditions?

The legal obligations and duties of the insurer and the insured

Which of the following is NOT a characteristic of the Fair Access to Insurance Requirements Program?

The program makes burglary and robbery coverage available through the federal government when it is not available through the regular market.

Which of the following rights was NOT given by the Fair Credit Reporting Act of 1970 to persons applying for an insurance policy?

The right to be given notice of certain activities that the insurer will perform in gathering information about them for underwriting purposes

All of the following rights for the mortgagee are found in the provisions of a property insurance policy EXCEPT:

The right to collect from the insurer if the insured defaults on payments

Which of the following is responsible for monitoring the financial stability of insurance companies?

The state's insurance commissioner/director

Which of the following must be communicated to applicants in order to comply with insurance privacy acts?

They must be told whether any information will be used for marketing purposes.

Which is NOT a financial responsibility of insurance agents?

To pay claims the insurer has approved.

Q showed an insurance applicant a policy illustration during a sales presentation. Why is it necessary for Q to obtain the applicant's signature on the illustration?

To show that non-guaranteed parts of the policy were explained as non-guaranteed

Which of the following types of business is eligible for a BOP policy?

Tobacco distributor

A foreign insurer:

Transacts business in one state but is chartered under the laws of a different state or one of the U.S. territories.

In order to get his prospect, Matthew, to drop his existing policy in favor of the one he sold, Dean Scamm told Matthew that his current policy would not last more than 10 years, knowing that the policy was with a good company and would last the insured's full life expectancy. Dean's action is an example of:

Twisting

Applicants who are rejected or denied coverage due to excessive risks which the insurance company does not want to accept are:

Uninsurable.

Which Commercial Form endorsement allows an insured to pay the premium on an average value over a year instead of needing to cover the amount of the highest property amount throughout the entire year?

Value Reporting Form

What is the result of a producer not completing continuing education during the required time?

Voluntary license termination

Waldo flies a 5-seat plane. If he buys a hull insurance policy that is open-peril ground and limited risk flight, for which of the following situations would he not have coverage?

Waldo looses control of his plane while flying and the plane crashes

Which of the following situations would be covered under Coverage E of a Homeowner policy?

While Maria's 18 year old son is playing soccer at the park down the street from their house he accidentally causes a teammate to fall. The teammate twists his ankle in the process and ends up having to go to the hospital with a bad sprain

Which of the following is an example of redlining?

YLR Insurance charges people in Metropolis an $800 premium for life insurance if they live in homes valued at $150,000, but $1,800 for people who live in homes less than that amount.

With the Windstorm or Hail endorsement, the deductible is:

a percentage deductible and is applied to the total loss caused by windstorm or hail.

The Assignment Clause of a property insurance policy:

allows the transfer of a policy from one insured to another by written authorization and signature of an officer of the insurance company.

An insurance broker who pays the insurer the customer premium and then allows the customer to pay the premium to the broker up to five months later:

may charge the customer up to an additional 1.5% per month on any unpaid premium balance after 90 days.

The Fair Credit Reporting Act requires that an:

applicant have the right to question the validity of a credit report

All of the following types of personal property are NOT covered in a BOP EXCEPT:

business equipment rented by the insured for use in the business

The Commercial Articles Floater covers:

cameras, projection machines, film and related equipment and accessories of others in the insured's care, custody, and control.

The premium that is submitted with an application to an insurance company is generally known as the:

consideration

A company's loss ratio is determined by dividing:

current losses by current earned premiums.

Which of the following is excluded from coverage under a homeowners policy:

damage caused by an auto.

An amount the insured must pay before the insurer will reimburse any money on a property insurance claim is called the:

deductible.

The HO forms allow for coverage of glass that is part of a covered building, storm door, or storm window when caused directly by all of the following EXCEPT:

flood.

The cost to rebuild damaged property, even if the actual cost is more than the stated value insurance amount is called the:

guaranteed replacement cost.

Representations are BEST defined as:

information that an applicant provides to an insurance company.

Valued Policy Laws require that:

insurers pay the full amount stated in the policy as the amount insured regardless of the property's actual cash value at the time of loss if property is totally lost or destroyed.

None of the following is true about "Write Your Own" flood insurance except that it:

is actually covered through the federal government's program.

The umpire appraiser:

is called on after 2 previous appraisers have not agreed on the value of the settlement amount, and gives a final binding decision.

Identity Fraud Expense Coverage covers all of the following expenses EXCEPT:

lost income up to $500 per day when the insured is required to appear in court or work with law enforcement officials to settle the fraud problem.

The insurer may cancel a policy before the policy's expiration date with a 31 day written notice in the case of all of the following EXCEPT:

non-payment of premium.

Which of the following could sell insurance in this state?

non-resident licensed producer.

To conditionally renew a policy means that the insurer may:

reduce or eliminate some coverages by giving a 30 day written notice.

A corporation, partnership, or limited liability company which transacts the business of insurance as an insurance agency is known as a/an:

registered firm.

In order for a life insurance agent to sell Variable Life contracts, the agent must also hold a:

registration with the National Association of Securities Dealers (NASD)

The Protective Safeguards endorsement...

requires the insured to keep the specified safeguards in working order or a claim will not be paid.

When an insurer pays a claim to replace damaged property and then uses its right to take possession of the property in an effort to sell it for some residual value, the insurer is claiming its right of:

salvage

In accordance with the Liberalization Clause:

the insured will automatically be extended new company coverages for already owned same-type policies without the need for additional forms.

An insured causes a fire in the insured's apartment that also damages other apartments in the building, destroys some of the insured's personal property, and severely burns both the insured and two other tenants. The insured's HO-4 form will provide coverage for all of the following expenses EXCEPT:

the insured's medical expenses

Pete and Sally were not able to sell their home before they needed to move to another city. When they moved they took all of their furniture with them and left their home for sale. After 75 days the insurer found out about the move and cancelled the policy because the home was considered to be:

vacant.