Simulation Exam Property quiz
a producer enrolls in continuing education course that is taught by his immediate supervisor. the course is worth a total of 10 credit hours. how many hours will the producer be able to count towards his total of 24 required CE hours
0
the pollutant cleanup and removal coverage in the businessowners policy has a limit of
10,000 in any 12-month period
when a producer's license is terminated, the producer must remit the license to the commissioner within how many days
15 days
The Division of Insurance has requested information regarding an insurer's underwriting policies via e-mail. How many days does the insurer have to respond to this request?
20 days
the war, military act, terrorism exclusion will only apply to an incident of terrorism in which of the total of insured damage to all types of property in the US, its territories and possessions, Puerto Rico and Canada exceeds
25,000,000
All insurers that terminate employment with a producer are required to notify the Commissioner within how many days following the effective date of the termination?
30 days
if an insurer decides that it will not renew a commercial fire policy at the expiration date of the policy, how many days' prior notice must they give to the insured of their intention
45
An insured's roof cost $4,000 when installed 5 years ago. It has been damaged by hail and must be replaced. The new roof will cost $6,000 at today's prices. If the roof has been depreciating at $200 per year and his policy is ACV, how much will it pay toward the insured's new roof?
5,000
what us the minimum amount of coverage that should be carried on an HO-s2 on a home that was purchased four years ago 75,000, which today has a replacement value of 100,000
80,000
all of the following statements are true regarding producer appointments EXCEPT
a producer mayu only hold an appointment with one insurer
What type of liability would a person who owns wild animals have?
absolute
the commissioner may revoke a producer license for all of the following reasons EXCEPT
acting in a fiduciary capacity
Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses?
additional coverage
which of the following types of valuation works best for property whose value does not fluctuate much
agreed value
an insurance producer just sold an insurance policy to his sister. what kind of business is this
controlled
a commercial property special form covers property in transit up to
5,000
which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance
defamation
an insured owns several building, each at a different location and insured on a seperate policy, what type of coverage does the insure have
specific
a specific coverage part is listed on the commercial package policy declarations page, but there is no premium shown, what does that mean
there is no coverage
all of the following statements are true regarding fire department service charge additional coverage under the businessowners policy EXCEPT
this coverage limit pays in place of the limit of insurance shown in the declarations
which of the following best expresses the purpose of a stated value contract
to pre-establish the amount of caoverage available for property items that are difficult to value
Frank's Steaks furnishes meat to steakhouses. An accident on the premises causes the building to lose refrigeration for 32 hours. The state inspectors will not allow the meat in the refrigerating units to be sold for human consumption, and Frank loses $18,500 in disposing of the meat. What coverage under Frank's BOP policy will cover the loss?
utility service- direct damage
an endorsement added to a business owners policy that provides coverage for direct damage caused by utility service disruption when such disruption stemming from a covered peril is called
utility service- direct damage
a small restaurant was forced to close for 10 days in august when the power company's transformer was destroyed by lightning, and the restaurant was without electricity. which of the following endorsements could be added to the business owners policy that would provide protection against loss of income from such events
utility services- time element endorsment
An insured suffers a windstorm loss in which the insured's driveway is blocked by two of the insured's trees and two of the neighbor's trees. The total amount of the removal adds up to the following: three trees at $300 per tree, and one tree at $600. How much will the insurer pay for the loss?
1000
inder the additional living expenses coverage, if a civil authority prohibits the insured from using the dwelling because of direct damage to neighboring location from a peril covered int he insured,s policy, loss would be covered for up to
2 weeks
a commerical property special form covers property in transit up to
5,000
If a liability policy had split limits of 50/100/30, what is the maximum amount that would be payable in the event of injury to a single person?
50,000
to be eligible for business owners policy coverage, an office building CANNOT be higher than
6 stories
which of the following would NOT be a violation of state insurance regulations
agent C uses her license to write only business other than controlled
all of the following would be considered rebating EXCEPT
an agent misrepresents policy benefits to convince a policyowner to replace policies
in equipment breakdown coverage, all accident would be considered a single accidents would be considered a single accident if they occur
at a single location at the same time and from the same cause
uner a businessowners policy, an insured can cancel the policy
at any time by mailing the a written notice of cancellation
all of the following are requirements for obtaining a producer's license EXCEPT
attaining age 21
accoding to the common policy conditions for a commercial package policy, if the insured dies, the policy rights and duties
automatically transfer to a legal representative
business personal property coverage form covers all of the following EXCEPT
automobiles held for sale
homeowners policies provide coverage for
business property while on the residence premises
which of the following is NOT a primary coverage in homeowners coverage
collapse
an unlicensed assistant works full time in an insurance agency, she may perform all of the following activities EXCEPT
collect premium for in-force policies
all of the following are considered to be misuses of fiduciary funds EXCEPT
collecting interest on a customer balances held in a producer's trust account
what term best describes the act of withholding material infrmation that would be crucial to an underwriting decision?
concealment
which of the following risks is eligible for coverage under a business owners policy
condominiums
An insured's business is damaged by a fire, and temporarily shut down for repairs. As a result, the insured suffers loss of income. What type of loss is the loss of income?
consequential
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
consideration
an insurer neglects to pay a legitimate claim that is covered under the terms of the policy. which of the following insurance principles has the insurer violated
consideration
when an insred makes truthful statements on the application for insurance and pays the rewuires premium, it is known as which of the following
consideration
when an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following
consideration
the extra expense coverage form provides
coverage that will permit the insured to continue in business without interruption following a property damage loss
a unique feature in a bailee form is that it covers
customer's property whether or not the insured has been negligent
all of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT
dividends from a mutual insurer
all of the following are othger coverages under the dwelling policy EXCEPT
earth movement
which of the following would modify the original insurance contract by either adding or removing coverage
endorsements
how often must an insurer who sells personal lines in property and casualty policies recalculate a consumer's insurance score or obtain an updated credit report
every 36 months
which of the following claims would be included under the dwelling policy
fire damage to the insured's rowboat stored in the attached garage
When would a misrepresentation on the insurance application be considered fraud?
if it intentional and material
which of the following is NOT a penalty for violating provisions of the insurance code
imprisonment
the pro rata liability clause is designed to protect the principle of
indemnity
who is responsible for filling out a notice of claim form
insured
all of the following are conditions commonly found in the insurance policy EXCEPT
insuring agreement
all of the following statements describe the concept of strict liability EXCEPT
it is imposed on defendants engaged in hazardous activities
for the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become
larger
an insurance producer mist renew his or her license by which of the following dates
last day of the producer's birth month every 2 years
a policy condition that states if a policy is broadened with no additional premium, then the expanded coverage will automatically be applied to all policies of the same type
liberation clause
which of the following would be allowable reason for an insurer to refuse to issue a fire insurance policy
location in an immediately threatened area
which of the following coverages in dwelling and homeowners policies is for indirect losses
loss of use
which policy consists of the declarations and conditions, endorsements, and other attachments applicable to a single line of insurance
monoline
If an insurer offering personal lines of property and casualty insurance uses credit information in underwriting or rating a consumer, the insurer or producer must disclose to the consumer that it may obtain credit information. Such disclosure
must be given in writing or in the same medium as the application for insurance is taken
duties of the insurer found in property policy conditions include all of the following EXCEPT
notify the insured in the event of financial difficulty
When is a hired and nonowned auto liability endorsement available in a businessowners policy (BOP)?
only if the insures does not have commercial auto coverage
what insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk
other insurance
the causes of loss insured against in an insurance policy are known as
perils
a producer's license has been suspended for noncompliance with continuing education requirements. what is the producer's duty regarding the license?
promptly return it to the commissioner
a sworn written statement that must be furnished by the insured to the insurer before any loss under policy can be paid is called
proof of loss
what type of information would be found in policy's insuring agreement
renewal dates
which method of loss valuation in contrary to the basic concept of indemnity
replacement cost
in case of a loss, the indemnity provision in insurance policies
restores an insured person to the same financial state as before the loss
an insured owns several buildings, each at a different location and insured on a sperate policy. what type of coverage does the insured have
specific
When the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss, the coverage is said to be written as
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
stated amount
the transfer of an insured's right to seek damages from a negligent party to the insurer is found in which of the following clauses
subrogation
a company has a businessowners policy on a building with an estimated replacement cost of 300,000 the company carries 150,000 of insurance. if a loss occurs, how much will the insured comapny be paid?
the coinsurance formula would apply
if a company has transacted insurance in this state without a certificate of authority, which of the following is true of its obligations for the policies sold
the company can still be liable for its policies in any court of this state
The contents coverage on a homeowners policy would pay how much after the loss of one of a pair of golden candlesticks?
the difference in the actual cash value as a pair and as a single
the cancellation provision in a businessowners policy specifies all of the following EXCEPT
the method of transferring the owne,s rights
what is a requirement for notifying the commissioner of any change of address
within 30 days, in writing
which of the following is NOT an optional coverage available ina business owners policy
workers compensation
Who will transport the property of anyone who hires them?
common carriers