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What is the maximum amount an insurer will pay under the equipment dealers pollution clean up and removal extension of an inland marine policy?

$10,000 for all expenses incurred during a 12 - month period

The date of "maximum medical improvements" is defined as the earliest of the date that, based on medical probability, further medical improvement to an injury can no longer be reasonably anticipated, or

104 weeks

The commissioner of insurance issues a Cease and Desist Order to an agent. If the agent whishes to contest the charges in court, How many days after the order was issued does the agent have to make the request?

30 days

Jean owns a craft store. The protective safeguards endorsement of her BOP requires the store to have a functional automatic sprinkler system. A winter storm freezes the pipes to the sprinkler system, causing the system to shut down. How many hours does Jean have to restore the system before she must notify her insurer?

48 hrs.

An insurer may cancel a personal auto policy if the policy has been in effect for at least how many days?

60 days

Assuming the insurer and the insured agree to the amount payable for a loss covered under a dwelling policy, how soon after the insurer has received proof of loss must it make payment?

60 days

Multiple incidents of terrorism would be deemed one incident If they occurred within

72 hours

The employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to

90 days

A contract for the transport of goods between the shipper and the carrier is called

A bill of lading

Which of the following is Not a possible penalty for a violation of the Insurance code?

A fine up to $100,000

In a participation plan, the insured may be eligible for which of the following

A partial premium refund

What type of liability would a person who owns a swimming pool have?

Absolute

All of the following would be considered an insurance transaction

Advising a policyholder regarding a claim, Negotiating Coverage, Soliciting a policy.

Which of the following types of valuation works best for property whose value does not fluctuate much?

Agreed Value

What is covered by the business liability Insurance?

An auto parked at the insured's premises, watercraft while on shore at a premises owned by the insured, and no owned watercraft 50 ft. long used for transporting personal property of the insured.

which of the following is Not covered under accounts receivable coverage form?

Any loans required to offset uncollectible amounts.

In Texas, the Commissioner of Insurance is

Appointed by the governor

A policy condition that stipulates how the amount of damaged or loss property will be determined if the insurer and the principal do not agree on the value of a property loss is known as

Appraisal

Which of the following describes the transfer of a legal right or interest in an insurance policy?

Assignment

An employee is injured while visiting the employer's out of state site. How will the workers compensation benefits be determined

Benefits will be provided if the state was listed on the policy information page.

The crime of forced entry into the premises of another by a person or persons with felonious intent is defined as a ?

Burglary

Which of the following must an insurer obtain in order to transact insurance within a given state

Certificate of Authority

Which of the following is an additional coverage that is covered by the broad cause of loss from?

Collapse

When applying for an individual life insurance policy, an applicant states that he went to the doctor for nausea but fails to mention that he was also having severe chest pains. This is an example of ?

Concealment

Which of the following is Not an essential element of an insurance contract?

Counteroffer

Which of the following is covered under the Mail Floater of a Commercial Inland Marine policy Only if is sent by registered mail?

Currency and unsold travelers checks

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

Declarations

Employment practices liability insurance (EPL) would Not cover claims arising from

Deliberate Law Violation

An Insured has four separate but identical policies written by different insurers to cover her $100,000 building. Each policy is written fro $100,000, and each has pro rata liability other insurance clause. In the event of a total loss to the building, What would each insurer pay

Each policy will pay $25,000 of the loss.

Individuals in the business of selling construction equipment should insure with an/a

Equipment Dealers Coverage Form.

What method of premium computation relates an employer's losses, payroll and premiums to the rating bureau's classifications of operations?

Experience modification factor

The major portion of the premium for an equipment breakdown policy pays

For Inspections and examinations

What type of compensatory damages will pay for pain and suffering and disfigurement?

General

Events or conditions that increase the chances of an insured loss occurring are referred to as

Hazards

An insured is involved in an auto accident in another state. The state has a financial responsibility law that specifies limits of liability higher than the limits shown in the declarations. What amount will the insured's policy pay?

Higher Limits

The Texas windstorm insurance association provides windstorm and hail insurance

In the seacoast territory of this state only.

All of the following are factors in the determined of actual cash value Except

Insurance Premium Paid

WHO IS RESPONSIBLE for filling out a notice of claim form?

Insured

persons covered under a insurance policy, whether named or not, are known as the

Insured's

All of the following are true regarding deposit premium

It could be adjusted by the audit, It must be paid in advance, It is an estimated premium paid at the policy issue, but except that it is 50% of the actual premium.

An insurance producer fails to obtain automobile insurance for a client after agreeing to do so. The client is involved in an automobile accident after running a red light and is found to be at fault. The damage to the other vehicle total $5,000. Which statement regarding the producer's errors and omissions liability policy is true.

It will provide coverage because the damage to the client resulted from the producer's negligence

Insurance is a contract by which one seeks to protect another form

Loss

The type of professional liability coverage a medical doctor needs is

Malpractice Coverage.

According to the Texas Financial Responsibility Law, Operating a motor vehicle without the required liability insurance is considered a/an

Misdemeanor

If an insured bakery is used because its marketing states that the products of another bakery may not be safe? which coverage of a commercial general liability policy will defend the suit?

Personal and advertising injury liability

Valuable papers and records form provides coverage for the reconstruction of all of the following types of records Except

Prepackage software

the party to a surety or fidelity bond who promises to fulfill the obligation is the

Principal

Who are the parties to a bond?

Principal - obligee - surety The principal makes a promise to perform for the obligee; the surety pays loss to obligee if the promise is not kept.

The other insurance provision that limits the liability of the insurer to a portion of the loss no greater than the amount the insurer bears to all the insurance covering the property is called

Pro Rata Liability

Pertaining to insurance, what is the definition of a fiduciary Responsibility

Promptly forwarding premiums to the insurance company

What type of damages may be awarded by the court to create disincentives that discourage behavior that is deemed highly undesirable by society?

Punitive

The risk of loss may be classified as

Pure risk and speculative risk

Insurance is the transfer of

RISK

All of the following are true regarding rebates Except

Rebates are allowed if it's in the best interest of the client.

The Federal Fair Credit Reporting Act

Regulates consumer Reports

What type of information would be found in a policy's insuring agreement?

Renewal dates

For insurance purposes, when insured loses property to another because the person used violence or threat of violence to gain the property, this is defined as

Robbery

What are two types of compensatory damages?

Special and general

Property Insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called

Specific coverage

Under the commercial property coverage program, the basic cause of loss form insures against loss caused by

Sprinkler Leakage

An insured under a homeowners policy who has filed two or more claims in the preceding policy year may be ?

Surcharged on the premium amount.

Which of the following symbols is available to an insured with vehicles subject to no - fault coverage?

Symbol 5

Surety bonds are written for a definite limit called

The Bond Penalty

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information

The Fair Credit Reporting Act

If more than one person has an insurable interest in the property covered under a dwelling policy.

The Insurer will be liable for only the insured's interest in the damaged property.

Which of the following is a requirement for eligibility for coverage in the Texas automobile Insurance plan?

The applicant must have a valid driver's license, The applicant must be able to pay the premium, the applicant must be rejected by at least two insurers in the normal market.

Peril is most easily defined as

The cause of a loss insured against

When an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays

The excess over the self- insured retention

All of the following statements concerning coinsurance are true

The insured agrees to maintain insurance equal to some specified percentage of the value of the property, If the insurance carried is less than required, the insurance may not cover the whole loss. It is used to help adequacy and equity in rates.

which of the following losses would be covered under the property damage liability coverage of a personal auto policy?

The insured damages a rented garage when he failed to stop in time.

Which of the following circumstances would be EXCLUDED under medical payments coverage of a personal auto policy?

The insured is injured while driving his motorcycle on his resident premises.

When a mortgagee is named in a mortgagee clause attached to a fire or other direct damage policy

The loss reimbursement will be paid to the mortgagee as their interest may appear, The mortgagee's rights of recovery will not be defeated by any act or neglect of the insured, the mortgagee may bring a suit in their own name to recover damages to covered property.

An insurer can cancel a personal auto policy by giving the insured 10 days prior written notice for any of the following reasons

The named insured does not pay a premium when due, the named insured submits a fraudulent claim, and the board finds that continuing the policy would violate the insurance laws of Texas.

What is the primary objective of workers compensation?

The payment of benefits to employees for injuries arising out of their employment.

An agent tries to sell insurance over the phone to an applicant who appears to be confused, but is eventually able to give enough information for the application to be completed. After the policy was issued, the agent talked to the insured's family, and they explained that the insured was recovering from surgery and might have been under the influence of medication at the time of application .

The policy may be voided if it can be proven tha the applicant was not capable of making a buying decision at the time of application.

Which of the following is an example of a producer's fiduciary duty?

The trust that a client places in the producer in regard to handling premiums

An Insured is driving her auto and strikes a large pothole, causing a flat tire. Which coverage of the insured's personal auto policy will pay for the repair?

This loss is not covered

which common policy condition prohibits the insured from changing the rights or duties as defined under the policy to any other person or entity without the written consent of the insurance company?

Transfer of rights and duties under the policy

When a parent is required to pay for damages caused by his or her children, this is an example of

Vicarious Liability

The policy conditions define

a) How parties to the contract must act following a loss. b) The basic underwriting information. c) The excluded perils. d) The amount of coverage.

which of the following statements is Not true regarding a personal umbrella Liability policy?

a) it provides excess liability coverage over underlying personal liability. b) It provides errors and omissions coverage for an agency c) it may cover certain exposures not provided under the premium layer. d) it may require the payment of a self- insured retention.

Employment practices liability insurance (EPL) would Not cover claims arising from

a)wrongful termination b)discrimination c) Deliberate Law Violation d) Sexual Harassment.

In order for an insurer to legally transact insurance, it must obtain which of the following?

certificate of Authority

If the death of an employee results from a compensable injury, the insurance carrier will pay

up to $10,000 for the cost of burial