Quiz ?'s I Got Wrong
Homeowners policy
A mobile home policy is structured the same as
Pay dividends to the policyowner
A participating insurance policy may do what
Stated amount
A property insurance policy that is not subject to any coinsurance requirements but has a set amount of insurance scheduled for the property would use what loss valuation method?
material misrepresentation
A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company
Insuring agreement
All of the following are conditions commonly found in the insurance policy EXCEPT 1. Appraisal 2. Insuring agreement 3. cancellation and nonrenewal 4. subrogation
explosion of steam boilers
All of the following are excluded in the equipment breakdown basic policy except: 1. loss of power, lights, heat, steam, or refrigeration 2. explosion of steam boilers 3. ordinance or law coverage 4. business interruption
It is 50% of the actual premium
All of the following are true regarding deposit premium EXCEPT: 1. it must be paid in advance 2. it is an estimated premium paid at the policy issue 3. it is 50% of the actual premium 4. it could be adjusted by the aduit
None
Damage to insured property caused by earth movement or earthquakes is covered under which of the following HO forms? 1. none 2. HO-2 3. HO-3 4. HO-5
Ban representation of an examinee by an attorney
During a hearing, the commissioner can do any of the following, EXCEPT: 1. subpoena witnesses 2. cross examine a witness 3. administer oaths 4. ban representation of an examinee by an attorney
Notify the insured in the event of financial difficulty
Duties of the insurer found in property policy conditions include all of the following EXCEPT: 1. Provide advance notice of cancellation 2. return any premiums to the insured 3. notify the insured in the event of financial difficulty 4. pay covered losses
Deliberate law violation
Employment practices liability insurance (EPLI) would NOT cover claims arising from
Renewal dates
Found in a policy's insuring agreement: 1. insurer's address 2. renewal dates 3. location of premises 4. policy limits
Replacement Cost
Full replacement of property at its current cost, new and without reduction for depreciation
Misrepresentation
Guaranteeing future dividends is considered to be an unfair or deceptive act known as __________
It removes the coverage
How does the mobilehome endorsement affect the other coverage of law or ordinance in a homeowners policy?
$500
If an insured covered under a Mobile Homeowners Policy moves the mobile home to protect it from a covered peril, the policy will pay up to
Other Insurance
If more than one policy is in force and covering the same risk at the time of loss, which provision defines how each policy will respond?
Nonresident producers only need to fulfill the CE requirements in their home state
In MN, what are the CE requirements for nonresident producers
when an underwriter approves coverage
In forming an insurance contract, when does acceptance usually occur
An applicant submits an application to the insurer
In insurance, an offer is usually made when
30 days
In the event of cancellation of an auto policy in place for 20 days, the insurer must give written notice of cancellation to the named insured at least how many day prior to the effective date of cancellation?
The insured
Liability insurance would pay for losses caused by
Ownership
Major difference between stock company and mutual company?
Mudflow and collapse
Meets the definition of flood and would be covered by a NFIP policy
30/60/10
Minimum auto liability numbers in Minnesota
Every 2 years
Once an agent has met the requirements to sell long-term care insurance, how often must they complete the 4 hours of ongoing training?
It prevents stacking of limits
One advantage of claims made liability forms from the insurers point of view is that
Special
Payment of medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages?
Insureds
Persons covered under an insurance policy, whether named or not are known as the: 1. First named insureds 2. Additional insureds 3. Insureds 4. Named insureds
Hazardous Activities
Strict liability is imposed on defendants engaged in ______________.
$1,000 on silverware
The broad theft coverage endorsement on the dwelling form specifies all of the following limitations EXCEPT: 1. $1,000 on silverware 2. $200 on money 3. $1,500 on securities 4. $1,500 on jewelry
1 year
The businessowners liability coverage form will cover medical expenses injured and reported within what max time period after the accident?
Description of the property insured
The commercial property declarations page contains which of the following information? 1. Common policy conditions 2. interline endorsements 3. cause of loss forms 4. description of the property insured
Within 45 days
The insured with a claims-made commercial general liability (CGL) policy may request in writing claim and occurrence information from the insurer at any time up to 60 days after the policy period ends. The insurer must provide the information _______________.
Insurance consultant
This licensee is not compensated directly related to the amount of insurance sold
30 days
Under the dwelling policy, if an insurer chooses to repair or replace damaged or lost property, it must inform the insured within how many days of receiving proof of loss?
8,000
Using the pro rata method, if a property is covered by Company A for $20,000 and Company B covers the same property for $40,000, how much will Company A pay on a $24,000 loss? 1. 20,000 2. 12,000 3. 8,000 d. 0
1. Domestic shipments and transportation risks 2. Bridges, tunnels and other instruments of transportation and communication 3. commercial property floater risks 4. Personal floater risks
What are the 4 classes of inland marine risk?
10% of Coverage A
What is the amount of coverage that would be available for a detached garage under the Coverage B - Other Structures of a homeowners policy?
HO-4
Which homeowners coverage form applies to personal property and does NOT include structure coverage
It provides errors and omissions coverage for an agency
Which of the following is not true regarding a personal umbrella liability policy? 1. it provides errors and omissions coverage for an agency 2. it may cover certain exposures not provided under the primary layer 3. it may require the payment of a SIR 4. it provides excess liability coverage over underlying personal liability
It is an additional coverage
Which of the following is true regarding the fire department service charge under the builders risk form? 1. It is an automatic coverage for $500. 2. It is not available in this form. 3. It is a high-deductible endorsement. 4.It is an additional coverage.
Coverage applies only to the extent that the underinsured motorist limits exceed the bodily injury limits carried by the operator of the other vehicle
Which of the following statements is true concerning underinsured motorist coverage under a personal auto policy? 1. limits must = the body injury limits of the policy 2. limits may differ from the limits for uninsured motorist coverage 3. Coverage applies only to the extent that the underinsured motorist limits exceed the bodily injury limits carried by the operator of the other vehicle 4. it will pay up to the limits of insurance for any loss which involves an underinsured driver
The insured would be responsible for the amount required as underlying limits in the event of a claim
Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy: 1. The insured would have to pay the SIR 2. the insured would be responsible for the amount required as underlying limits in the event of a claim 3. it would have no effect on the umbrella policy 4. the policy will be cancelled
Exclusions
Which section of a property policy outlines what or who will NOT be insured?
the owner of a car the insured borrows
Who is NOT an insured for liability on a BAP? 1. anyone liable for the conduct of the insured 2. the named insured in any covered auto 3. the owner of a car the insured borrows 4. anyone using a covered auto with permission
10 days
Within the first 60 days of coverage under a dwelling policy, how much notice is required for the cancellation of a policy?
After 3 days
Workers Comp disability benefit payments begin ______.
At any time
a policy written by a township mutual may be cancelled by the insured __________
Nonowned auto
a private passenger auto operated by the named insured that is not titled to the insurer and that borrowed from an employee or partner is considered a ________________
Warranty
a statement that is guaranteed to be true, and if untrue, may breach an insurance contract
the insured expects to extend operations to that state
according to the standard workers compensation and employer liability policy form, a state should be listed in Part 3 - other states' insurance of the workers comp and ELP when _____________
60 days
after an insurance company examination, the Commissioner or the examiner appointed by the Commissioner must file a written report of the examination within _______________.
15 days
after appointing an agent, how long does an insurer have to file with the Commissioner a notice of appointment?
The limit of liability is the greater of the acv of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle
all of the following are true regarding physical damage coverage except: 1. the limit of liability is the greater of the acv of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle 2. losses to nonowned autos will be covered the same as the broadest coverage available for any covered auto, except nonowned trailers are limited to $1500 3. the policy will pay up to $20 a day to a max of $600 for rental transportation d. the insurer will pay for direct and accidental loss to a covered auto minus any deductible
The injury or damage must occur within 90 days after the insured's work is completed.
all of the following conditions must exist for injury or damage to be included in the products and completed operations hazard of a commercial general liability policy EXCEPT: 1. the injury or damage must occur after the insured has released physical possession of the product to another 2. the injury or damage must occur within 90 days after the insured's work is completed 3. the injury or damage must occur away from the insured premises 4. the injury or damage must arise out of the insured's product or work
the general aggregate does not apply to fire damage legal liability
although a BOP will cover fire damage legal liability, which of the following statements is true: 1. pollution cuased by fire will be covered because pollution is covered in a BOP 2. there is a limit of $500 set on fire damage legal liability in all cases 3. the general aggregate applies to fire damage legal liability 4. the general aggregate does not apply to fire damage legal liability
$1,500
amount of coverage provided on HO policies for watercraft
Misrepresentation
an insurance agent visits a potential client and explains various types of policies. the customer displays a lack of interest, so the agent guarantees higher dividends than he knows would be possible. this is called ___________________
Liquidate an estate
annuities are purchased to _________.
MN standard fire policy
any homeowners policy issued in MN must include at least the contents of
Condtions
because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following EXCEPT 1. conditions 2. consideration 3. legal purpose 4. offer and acceptance
replacement cost
full replacement of property at its current cost, new and without reduction for depreciation
Replacement cost basis
how is property insured under the equipment breakdown coverage form
Governor
how is the Commissioner of Commerce chosen to serve?
30 days
how long is a waiting period upon purchase of flood coverage through NFIP
60 days
how many days prior to nonrenewing a standard fire insurance policy must an insurer provide notice to an insured
Policy conditions
how parties to the contract must act following a loss is defined in the
there is no additional premium
if an insurance policy has the additional coverage provision, how does it affect the policy premium
Auto Policy
if an insured has an umbrella policy in addition to his personal auto policy, which would be considered the underlying policy?
within 5 business days
if property is rejected by the FAIR plan based on an inspection, a copy of the notice of rejection must be provided to the applicant _____________
48 hours
in the event of theft of a covered vehicle, transportation expenses coverage in a personal auto policy will cover the expenses starting how many hours after theft?
$25
max fine for insurers who allow producers to transact insurance for them without appointments
3 years
once an individual has passed a licensing exam, for how many years are their results valid
Declarations
part of a property policy that shows the amount of insurance, premium, and policy term is the __________
10's days notice
policies issued by a township mutual may be cancelled by the insurer with
Policy
policy limits are the max amount an insured may collect, or for which an insured is protected under the terms of the ____________
Every 5 years
the Commissioner must examine the affairs and conditions of every insurer licensed in the state not less frequently than __________.
MN
the FAIR plan only insures real property located in
refrigeration interruption coverage
the endorsement that can be attached to an Equipment Breakdown policy to provide coverage for perishable property for spoilage or damaged caused by contact with refrigeration is called
Within 45 days (CGL)
the insured with a claims-made CGL policy may request in writing claim and occurrence info from the insurer at any time up to 60 days after the policy period ends. the insurer must provide the information ______________
Declarations
the part of a property policy that shows the amount of insurance, premium, and policy term is the
mobile equipment during transportation to and from the job site
this will be covered by the contractors equipment floater in an unfiled inland marine insurance
6 stories
to be eligible for BOP coverage, an office building cannot be higher than...
Discrimination
twin bothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This is considered ____________
Discovery and loss sustained
what are the two forms of crime insurance
$10,00 for all expenses incurred during a 12 month period
what is the max amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine policy
$50,000
what is the minimum required limit of uninsured motorist coverage in auto policies in this state for bodily injury to 2 or more persons in one accident
Experience modification factor
what method of premium computation relates and employer's losses, payroll, and premiums to the rating bureau's classifications of operations?
the carrier
when a regular bill of lading is issued, who will be responsible for the invoice cost of any damaged property?
consideration
when an insured makes thruthful statements on the application for insurance and pays the required premium, it is known has what ___________
The excess over the self-insured retention (SIR)
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 ___________________.
Only when the other party is legal liable but has no insurance
when would the uninsured motorist coverage apply
there must be at least $250,000 in property value
which of the following is NOT a requirement for establishing a Township Mutual? 1. there must be at least $250,000 in property value 2. the property cannot be located in a first of second class city 3. the insurer is limited to 150 townships 4. there must be at least 25 citizens
currency and unsold travelers checks
which of the following is covered under the Mail floater of a Commercial Inland Marine policy ONLY if it sent by registered mail: 1. money orders, checks, drafts, notes 2. bonds, stocks, stock certificates, coupons attached to bonds 3. currency and unsold travelers checks 4. postage and revenue stamps
coverage is commonly provided through a federally-funded program
which of the following is not true about earthquake coverage: 1. coverage may be added to property policies by endorsements 2. coverage may be written in a difference of conditions policy 3. coverage is commonly provided through a federally-funded program 4. coverage is excluded by most property forms
endorsements may only add coverage to a current policy, not remove
which of the following statements does NOT describe endorsements 1. endorsements must be signed by an executive officer 2. endorsements may only add coverage to a current policy, not remove 3. endorsements may be added during the policy term 4. endorsements are printed addenda to a policy
landlord furnishings in an on-premises apartment
which of the following would be covered in homeowners coverage: 1. structures rented to others who are not tenants of the dwelling 2. animals, fish 3. landlord furnishings in an on-premises apartment 4. structures used for business purposes
One part accepts the exact terms of the other party's offer
which statement best describes agreement as it relates to insurance contracts
The policyowner
who has all the rights in the insurance policy
