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Collapse is not covered under which of the following property forms? A Commercial Basic Cause of Loss Form B DP-3 C Commercial Broad Cause of Loss Form D HO-2

Commercial Broad Cause of Loss Form

Any person acting as a producer without a license is guilty of:

Committing an unfair trade practice

Which of the following defenses against negligence reduces damages in proportion to the degree of negligence? A Assumption of Risk B Comparative Negligence C Statute of Limitation D Contributory Negligence

Comparative Negligence

Which of the following reduces an award in proportion to the amount of negligence? A Comparative risk B Contributory negligence C Contributory risk D Comparative negligence

Comparative negligence

Which of the following types of liability limits allow the most to be paid for a single occurrence without regard for the number of claimants? A Split Limits B Per Person Limit C Combined Single Limit D Comprehensive Limits

Comprehensive Limits

Under the Homeowners Forms, Coverage C includes which type of coverage?

Contents and Personal Property

When damages are reduced in proportion to the degree of negligence, this is an example of:

Contributory Negligence

Which of the following prevents recovery for injuries caused by a negligent party if the claimant was also negligent? A Gross negligence B Absolute liability C Contributory negligence D Comparative negligence

Contributory negligence

Damaged household and personal property in transit between the insured's old and new residences is covered by the Dwelling Policy under:

Coverage C-Coverage C is the coverage for Personal Property. 10% of the Coverage C limits apply to the Insured's Personal Property away from the premises anywhere in the world.

All of the following are sections of the Garage Coverage Form, except: A Physical Damage Insurance B Garagekeepers Insurance C Liability Insurance D Comprehensive Insurance

D. Comprehensive InsuranceComprehensive coverage is part of the Physical Damage coverage provided by Section IV. 10.7

All of the following about the CGL's products liability coverage are correct, except: A Coverage applies to bodily injury the product causes B Coverage applies to bodily injury occurring away from premises the insured owns or rents C Coverage applies to property damage the product causes D Damage to the product itself is covered

Damage to the product itself is covered

The part of a property policy that gives basic information such as the named insured, a description of the property, the location of the property, and the amount of premium involved, is known as the:

Declarations

The part of an insurance contract that varies with each individual policy, but is still a mandatory part of the policy, is the

Declarations

In use of credit information, an insurer offering personal property and casualty insurance may not:

Deny, cancel, or non-renew such policy solely because of credit information

Which of the following would be eligible for a Businessowners policy? A Credit Union B Go-Cart Racing Facility C RV Storage Facility D Funeral Home

RV Storage Facility

The respective minimum limits of liability under Uninsured and Underinsured Motorist must be at least:

$25,000, $50,000, $20,000

Driver D slid into another car causing an accident in which three people in the other car were injured. Two injured parties claimed $15,000 in medical expenses and the third person claimed $25,000. How much will D's insurance company pay if her policy has 25/50 limits for bodily injury?

$50k

Reasonable medical expenses incurred and reported within how many years following an accident are covered under Medical Payments coverage of the CGL?

1

How many days may a producer hold a premium before depositing it into a premium fund trust account?

15

Underinsured motorist insurance must provide policy limits of at least:

25/50/25

In the event an apartment attached to the insured's home is damaged and unlivable, what percentage of Coverage A does the HO-3 provide for the rental value?

30%

Transportation Expenses coverage under the Personal Auto Policy begins how long after a covered auto has been stolen?

48 hours

An auto policy that has been in force for 5 or more years may be nonrenewed for the same reasons as for cancellation as long as the insurer provides how many days' notice?

60

The Crime Coverage Form offers how many optional insuring agreements?

8

All of the following would be included in the definition of 'insured location', except: A A summer vacation home rented by the insured B A 5-family dwelling in which the insured lives in one of the units, including the structures and grounds C Land upon which a 4-family dwelling is being built as a residence for the named insured D A boat slip used by the named insured

A boat slip used by the named insured

Which of the following vehicles IS covered under Part B - Medical Payments of the PAP? A 3-wheel vehicle used off-road B A van used as a residence C A car used to carpool with colleagues D A company car issued to a family member

A car used to carpool with colleagues

Which vehicle would not be eligible for a Business Auto Coverage Form? A A van that is used by a delivery firm B A private passenger auto that is used in the business C A forklift used in the business D A trailer that is used to carry a backhoe

A forklift used in the business

Which of the following statements is true? A A policy of fire and extended coverage insurance may not be cancelled without allowing the insured up to 90 days to make repairs sufficient to continue coverage B An insurer may cancel or nonrenew an automobile policy due the fact that an agent or broker is not located in geographical proximity to the applicant C A personal policy may not be canceled or nonrenewed based on credit information D An insurer may nonrenew or cancel a policy on a day care home on the basis that the insured operates a licensed day care home on the insured premises

A policy of fire and extended coverage insurance may not be cancelled without allowing the insured up to 90 days to make repairs sufficient to continue coverage

Under Section II of the Homeowners Policy, an employee whose duties are related to the maintenance or use of the residence premises, is defined as:

A residence employee - 'Residence employee' means any employee of an insured, whose duties are related to the maintenance or use of the residence premises. These duties include household and domestic services, such as those of a gardener or nanny. The definition also includes a person who performs similar duties elsewhere that are not related to any business of the insured, such as a person hired to paint the insured's house, as so long as the insured doesn't own a business that paints houses.

Which of the following best describes a surplus lines broker? A A surplus lines broker deals with admitted carriers only B A surplus lines broker deals with direct writing companies only C A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers D A surplus lines broker accepts business only from non-resident agents

A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers

Which of the following is not eligible for coverage under the Personal Auto Policy? A van weighing 5,200 pounds B A vehicle with fewer than four wheels C A pickup D A vehicle being used in a share-the-expense carpool

A van weighing 5,200 pounds

Under a policy with limits of 25/50/10, what would be the insurer's liability arising out of a single accident where claimant A has injuries in the amount of $25,000; claimant B, $20,500; and claimant C $4,000?

A)$49,500-The policy would pay up to the BI limit of $25,000 for A; $20,500 for B; and $4,000 for C. $25,000 + $20,500 + $4,000 = $49,500.

Under the Building and Personal Property Coverage Form, when is abandonment allowed?

Abandonment is never allowed

Under the Basic Dwelling Form, losses are paid on which basis?

Actual Cash Value

Under the BOP, the additional coverage for preservation of property is covered in which of the following ways? A Against open perils for 30 days B Against the broad perils for 30 days C Against open for 60 days D Against the broad perils for 60 days

Against open perils for 30 days

The maximum amount payable for all losses within a policy period is known as the:

Aggregate limit

Which of the following is an example of vicarious liability?

An employer's liability for the acts of an employee

An insurance company may refuse to issue, renew, or to cancel a policy for which of the following reasons? A The applicant is eligible for placement under the Illinois Automobile Insurance Plan B The insured or applicant was previously refused issuance or renewal by another insurer C An insured filed a false claim D An agent is not located in geographical proximity to the residence of an applicant for auto Insurance

An insured filed a false claim

Which of the following statements is false with regard to Mine Subsidence Coverage? A Mine subsidence coverage may be applied to buildings, service structures and septic systems B All property policies in Illinois must cover mine subsidence unless exempt or waived by the insured C An insured may always waive mine subsidence coverage D Structures with unrepaired mine subsidence damage may be deemed uninsurable until the damage is repaired

An insured may always waive mine subsidence coverage idk

If a fire burns the home and property of an insured, what must the insured provide?

An inventory of the damaged property

If the insured and insurer do not agree on the value of a property loss, what condition would apply?

Appraisal

Under the HO-4 and HO-6, personal property is covered on which basis?

Basic perils coverage

Under the Garage Coverage Form, covered autos are usually written on which of the following basis?

Blanket

Which of the following is not one of the limits of liability provided by the CGL? A Medical expense limit B Bodily injury limit C Personal and advertising injury limit D General aggregate limit

Bodily injury limit

All of the following are true of the Dwelling Special Form, except: A Mobile homes are not eligible B The dwelling must be used principally for residential dwelling purposes C Both the dwelling and contents are covered on an open perils basis D Losses to the dwelling are paid on a replacement cost basis

Both the dwelling and contents are covered on an open perils basis

All of the following types of property may be covered by a Personal Articles Floater, except: a Stamps B Golf equipment C Jewelry D Buildings

Buildings

Which of the following is covered as business personal property under the BOP? A Outdoor furniture B Carpeting C Permanently installed machinery D Built-in bookcases installed by a tenant

Built-in bookcases installed by a tenant

Which of the following is true regarding the Business Auto Coverage Form? Non-owned Autos Coverage covers rental private passenger type vehicles B Non-owned Autos Coverage covers autos leased for a term of 12 months or more by the insured C The main distinction between a hired auto and a non-owned auto is whether or not the auto is owned by an employee D Non-owned Autos Coverage covers autos hired for specific purposes by the insured

C The main distinction between a hired auto and a non-owned auto is whether or not the auto is owned by an employee The primary use of Symbol 9, Non-owned Autos Only Coverage is to protect the insured when employees use their autos in the insured's business, but are not paid to do so.

A loss caused by which of the following would be covered under a BOP? A Mechanical breakdown B Increased cost of construction C Earth movement D Off-premises power failure

Earth movement

In which type of system does an employer have the choice to provide Workers' Compensation benefits at its own option?

Elective

Exclusive remedy means that

Employees covered by Workers' Compensation insurance cannot sue for work-related injury

Which of the following relationships involves vicarious liability? A Husband and wife B Wholesaler and retailer C Employer and employee D Teacher and student

Employer and employee

The Extra Expense Coverage Form covers:

Expense of removing the debris of a covered direct loss

Employers Liability Insurance is designed to do all of the following, except: A Extend policy benefits to states not listed on the Declarations page B Cover claims that are not subject to compensation laws C Fill in gaps of compensation coverage D Protect the employer against common law claims

Extend policy benefits to states not listed on the Declarations page

After being rejected by an insurer due to underwriting guidelines an applicant may request homeowners coverage under which of the following? FAIR Plan B Write Your Own Homeowners Program C An Umbrella policy D A DP-3 Special Dwelling Plan

FAIR plan

Which of the following property may be covered under a Building and Personal Property Coverage Form? A Grain stored inside a building B Vehicles licensed for road use C Personal property that is covered elsewhere D Personal property while waterborne

Grain stored inside a building

When filing a claim, the insured is required to do all of the following, except: A Cooperate with the insurance company B Hire an appraiser C Protect property from further damage D Give notice of loss as soon as possible

Hire an appraiser

When is a producer considered to be financing premiums?

If the producer accepts over 10% of total accounts in installments and any portion of the accounts is collected 90 days or more after the premium due date

The Illinois Automobile Insurance Plan provides auto coverage for:

Insurable individuals who reside in an underserved area

The rules and procedures to be followed by the insured and the insurer are found in which section of an insurance policy?

Insuring Agreement

Under Coverage A of a Dwelling Policy, all of the following are covered, except: A Land, including the land on which the dwelling is located B Outdoor equipment on the location used to service the dwelling C Fire or lightning damage to outdoor television antennas D Materials for repairing the dwelling, located on the described location

Land, including the land on which the dwelling is located

Which of the following is not covered under the Building and Personal Property Coverage Form? A Business personal property B Personal property of others C Liability D Buildings

Liability

Which clause broadens coverage of an existing policy with no increase in premium?

Liberalization

For a claim to be paid, insurable interest for a property or casualty contract must exist at the time of:

Loss

Which of the following clauses protects the interests of the loss payee? A Loss payable clause B Mortgagee clause C Loss settlement clause D Abandonment clause

Loss payable clause

Bodily injury liability coverage includes all of the following, except: A Breach of contract B Lost wages C Mental anguish D Medical bills

Lost wages

Which country is not included in the CGL coverage territory? A Puerto Rico B United States C Canada D Mexico

Mexico

Which provision stipulates that coverage will not benefit a party that is holding, storing, or moving insured property for a fee?

No Benefit to Bailee

After Company B's computer network is damaged during an intrusion by hackers, which coverage would indemnify the loss? Fund transfer fraud B No crime coverage is available for this loss C Computer fraud D Inside the premises: Robbery or safe burglary coverage

No crime coverage is available for this loss

A Businessowners policy would cover which of the following? A The insured is sued for injury to a competitor caused by one of their advertisements B One of the insured's employees is injured on the job C The insured signed a contract with a competitor agreeing not to advertise in that zip code D One of the insured's products was recalled due to a mechanical imperfection

One of the insured's products was recalled due to a mechanical imperfection

The Business Auto Coverage Form is intended for which of the following businesses? A Owned, leased, hired or borrowed private passenger autos, trucks, trailers and semi-trailers B Owned, leased, hired or borrowed private passenger autos only C Owned or hired trucks, trailers and semi-trailers only D Owned, leased, or hired trucks, trailers and semi-trailers only

Owned, leased, hired or borrowed private passenger autos, trucks, trailers and semi-trailers

Which of the following is not a Supplementary Payment under Part A of the Personal Auto Policy? A Reasonable expenses incurred at the insurer's request B Up to $250 for the cost of bail bonds C Payment for lost earnings up to $200/day D Medical payments for an occupant of an insured vehicle

Payment for lost earnings up to $200/day

The insuring agreement of a policy describes:

Perils that are covered

Liability coverage is designed to: A Permit the insured to countersue the insurer for losses not covered B Protect the insured from bodily injury and property damage they are legally obligated to pay C Protect an insured from being sued by an injured party D Cover injuries and damages caused by the insured's intentional and unintentional actions

Permit the insured to countersue the insurer for losses not covered

Hull insurance on an ocean marine policy covers the vessel for which of the following? A Cargo damage B Liability C Seaworthiness D Physical damage

Physical damage

What is the term for the first event in the unbroken chain of events, that resulted in a loss?

Proximate cause

Under the Workers' Compensation policy, vocational training benefits are a type of:

Rehabilitation benefit

What is the principle of liability that imposes legal liability for injury and damage by products?

Strict liability

Which of the following is not true about the Mine Subsidence Insurance Fund? A It consists of separate sub-funds for residential and commercial risks B Policy limits must be no less than $500,000 per residence C All insurers must enter into an agreement with the Fund D The Mine Subsidence Insurance Fund is a reinsurance fund

The Mine Subsidence Insurance Fund is a reinsurance fund

In Liability Insurance, which of the following is the maximum amount that the coverage will pay for loss to any one person regardless of overall policy limits? A The Per Person Limit B The Aggregate Limit C The Per Occurrence Limit D The Split Limit

The Per Person Limit

Which of the following is NOT true of an examination by the Director? A The Department of Insurance must pay the costs associated with an examination B The Director has the power to compel attendance by subpoena C The director may appoint other examiners to investigate on his behalf D Examinees have 10 days to request a hearing upon receipt of the Director's report

The director may appoint other examiners to investigate on his behalf idk

Which statement is not true of Temporary Total Disability? A Retroactive benefits will be paid if disability exceeds the waiting period B The length of the disability must exceed the waiting period C The employee can work while recovering D The employee is expected to return to work

The employee can work while recovering

An injury would not be covered by Workers' Compensation under which of the following circumstances? A worker is injured during assigned hours B The injury occurs while a worker is performing his work duties C The injury occurs on the way to work D The risk causing the injury is employment-related

The injury occurs on the way to work

the assignment provision requires that: A No requirements may be placed upon the insured without legal action B The naming of parties other than the insured on loss payment checks is prohibited C The insured may not transfer ownership of the policy without the insurer's written permission D The insured must give prompt notice to the company upon loss

The insured may not transfer ownership of the policy without the insurer's written permission

Which of the following best defines short rate cancellation? A The premium is fully earned by the insurance company B The insured will receive exactly half of the unearned premium C The insured will receive none of the unearned premium D The insured will receive less than the full amount of the unearned premium

The insured will receive less than the full amount of the unearned premium

Policyholder J has a no-fault auto policy. Upon being hit by a driver that ran a stop light, J suffers a broken leg. Whose insurance company will pay for J's injury?

The insurer of the at-fault driver

Which of the following is not true about an insurance policy? A The insuring agreement includes the name of the insured B An insurance policy that pays before all other coverage is called primary coverage C A deductible is a specified amount of loss that is retained by the insured D An application is a document that provides information for underwriting purposes

The insuring agreement includes the name of the insured

Which of the following property is not covered under Coverage A of a Dwelling Policy?

The land on which the dwelling is located

Choose the true statement regarding Out of State Coverage in the Personal Auto Policy. A The liability limits of the policy will be the lesser of home state coverage or the minimum liability requirement of the state in which the vehicle is being used B When being used in any state other than the one in which the vehicle is licensed, the liability limits are automatically the minimum financial responsibility limits of the state in which the vehicle is licensed C The limit of liability will be the same as the coverage provided in the home state or the minimum liability requirements in the state where the covered auto is being used, whichever is greater D The insured should be sure that the liability limits of the policy equal or exceed the minimum limits of the compulsory insurance or financial responsibility laws of any other state where the vehicle might travel

The limit of liability will be the same as the coverage provided in the home state or the minimum liability requirements in the state where the covered auto is being used, whichever is greater

Which of the following is not included in the Declarations of a Property Policy? A The perils that are not insured against B The amount of coverage C The expiration date of the policy D The amount of premium

The perils that are not insured against

All of the following must be listed on Form MCS-90, except: A The policy number and policy dates B The names of the motor carrier and the insurance company C The policy premium amount D The limits of liability provided by the policy

The policy premium amount

A nonresident producer may be licensed without taking a written exam if: A The producer has over 15 years experience in his/her home state B Less than 30% of the producer's business is written out of state C The producer's home state permits reciprocal non-resident licensing D The producer swears an oath to abide by the law.

The producer's home state permits reciprocal non-resident licensing

All of the following are true of Supplementary Payments under the CGL, except: A They pay defense costs incurred by the insurer B They apply to bodily injury and property damage liability C They include the cost of bail bonds up to $250 D They reduce the limits of insurance

They apply to bodily injury and property damage liability

The common policy declarations of the CPP contain all of the following, except: A Name and address of the named insured B Description of the business being insured C The policy period D Transfer of rights and duties

Transfer of rights and duties

What is the term for a dwelling that is uninhabited, but has household furniture inside?

Unoccupied

Which of the following constitutes the acceptance of an offer? A When the insurer makes a counteroffer B When the agent assures the applicant he or she will be covered C When the applicant completes the application D When an insurer issues a binder

When an insurer issues a binder

Which of the following best describes the reason to purchase an HO-8? When looking for a policy that covers the dwelling on an ACV basis B When insuring homes with a replacement cost exceeding $250,000 C When insuring homes namely located on farms D When insuring an older home that might create a moral hazard when insurance is written at replacement cost

When insuring an older home that might create a moral hazard when insurance is written at replacement cost

Which of the following is not an element of negligence? A Assumption of risk B Forseeable consequence C Duty owed D Proximate cause

duty owned

A manufacturer is held liable if a product caused an injury whether the product was or was not defective. This describes what type of liability?

strict

Which of the following is not covered under the Dwelling Broad Form (DP-2)? A Accidental discharge B Falling objects C Theft D Artificial electric current

theft


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