PSI Help pt 1

Which of the following is EXCLUDED as a covered loss under the DP-3 coverage?

Damage by ice to outdoor radio and television antennas and aerials

Which of the following is EXEMPT from the Telemarketing Sales Rule that established the National Do Not Call Registry?

calls from or on behalf of political campaigns or organizations and charities

Which of the following situations under dwelling policy conditions describe how the insurance company will settle a loss?

company has the option to repair to pre-loss condition

All of the following are a covered cause of loss under the Homeowners HO-2 Broad form EXCEPT

discharge or overflow of water from a sump.

All of the following are Unfair Claims Settlement Practices EXCEPT

failure to respond to a first notice of loss within 24 hours.

The Gramm-Leach-Bliley Act was enacted to protect consumer's right to privacy and made mandatory which of the following?

financial institutions must have a privacy policy in place

All of the following are TRUE regarding underinsured motorists coverage EXCEPT

it is of little consequence who was at fault for the coverage to apply.

Which statement is INCORRECT regarding personal liability coverage?

it is standard coverage in a dwelling policy.

With which of the following methods are losses settled on an actual cash value (ACV) basis?

less depreciation

All of the following actions require post notification under the Fair Credit Reporting Act EXCEPT

lowering of the premium

All of the following are examples of conduct of an agent that is regulated by Department of Insurance EXCEPT

misappropriation or conversion of funds by an insurance agent

All of the following would be eligible expenses after a loss under Coverage E Additional Living Expense EXCEPT

mortgage expenses

All of the following is TRUE regarding vacancy and inoccupancy EXCEPT

premiums cost less for vacant or unoccupied property due to lower risk.

A woman slips on icy steps and breaks her leg. Which of the following is the peril in this situation

the fall

Which of the following is the standard amount of Coverage A-dwelling provided by the HO-6 Unit-Owners Policy?

$1,000

What does the term consideration refer to in an insurance contract?

An agent submits a new insurance application to be read.

Which of the following is correct for comparative negligence?

Both parties are found to have contributed to the loss

All of the following are TRUE regarding burglary EXCEPT

It must involve some action designed to escape any notice.

Which of the following makes use of market value in determining loss valuation?

Property is evaluated for what it sells for at the time of the loss.

Which of the following BEST describes through which fundamental principle of risk management the distribution of loss is handled for all insurance programs?

Sharing

All of the following situations represent additional personal liability exposures that can be met with an umbrella policy EXCEPT

liability arising out of business pursuits.

All of the following are TRUE of the emergency type of flood insurance under the National Flood Insurance Program EXCEPT

the insured may buy limited amounts of flood insurance coverage at subsidized rates for buildings only.

All the following are TRUE regarding assigned risk plans EXCEPT

the insurer participation in the assigned risk program is mandatory.

All of the following is TRUE regarding an umbrella policy EXCEPT

the policy can be issued alone without an underlying liability policy.

All of the following are correct for excess lines carriers EXCEPT

they offer better contracts at lower rates.

Which of the following are defined as a part of the policy and can void the policy if they are breached, whether the breach was intentional or unintentional?

warranties

Which of the following is the correct timeframe for earthquake shocks to be considered as single earthquake?

168

Which of the following types of policy BEST describes the DP-2 Broad form policy?

Named Perils

The Fair Credit Reporting Act permits consumer reporting agencies to include applicant information about bankruptcies MORE than 10 years old under which of the following circumstances?

The applicant is seeking a transaction greater than $150,000.

Which term BEST describes when the leather seats in the policyholder's car begins to wear and tear?

Occurrence

Why is an insurance contract a contract of adhesion?

The insurance company wields more power than the insured

All of the following are TRUE regarding binders EXCEPT

a binder guarantees that a policy will be issued.

Watercraft and boatowners who wish to insure for values over $1,500 can find coverage in all of the following EXCEPT

a homeowners policy.

Which type of loss does an exclusion describe?

a loss for which there is no protection under the policy terms

Which of the following describes an insurance company that meets the insurance department's standards and is authorized to do business in the state?

admitted

An insured has transportation expenses coverage under Part D of the personal auto policy when involved in a collision. Coverage provides which of the following?

rental reimbursement until claim is settled by insurance

Which of the following conditions best describes the type of home that the HO-8 modified coverage form was designed for?

replacement value far exceeding market value

The Terrorism Risk Insurance Act and the National Flood Insurance Program are similar by providing which of the following?

subsidies, loss sharing or excess coverage

What does the coinsurance condition encourage policy holders to do?

insure for a minimum total value of the property

An insurance company's right to cancel a policy is often limited by state laws but is generally permitted under which of the following conditions?

non-payment of premium

All of the following are covered for named perils under Coverage B EXCEPT

grave markers

Which of the following is how defense costs are paid in relation to the limit of insurance under the personal auto policy for bodily injury and property damage part A-liability coverage?

in excess of the limit

All of the following are listed in the duties of the insured following loss EXCEPT

contracting for restoration

All of the following are common exclusions in a liability policy EXCEPT

damage caused by acts of civil disobedience and riots.

What will an insurer do when a policy is in subrogation?

pay the claim, and then sue the party responsible for the damage