test 5
Supplementary payments under the liability section of a commercial auto policy include the cost of a bail bond up to
2,000
If the company decides to rebuild or repair the property destroyed or injured, it must begin to do so within _____ days after adjusting the loss, and must prosecute the work with reasonable diligence until it is completed.
20 days
Hannah must take time away from work to help assist in the investigation of a claim that was made against her BOP policy. The policy will pay for Hannah's actual loss of earnings up to:
250 per day
The standard BOP policy will provide coverage for all of the following incidental occupancies in a covered apartment building, EXCEPT:
A contractor's office is not classified as a "incidental occupancy" for a covered apartment building if it occupies more than 15% of the total floor area of the building.
Which of the following is a type of roof with one slope only that is built against a higher wall?
A roof with one slope only that is built against a higher wall is a "lean-to" roof.
A settlement in which the claimant receives payment in installments over a period of time instead of a lump sum is:
A structured settlement is usually reserved for large settlements. Structured settlements may call for part of the full amount to be paid as a lump sum.
Which of the following people is committing "hard fraud"?
Ally intentionally pushing her truck off a cliff in order to file an auto claim and get a new vehicle is an example of "hard fraud" because it was a fraudulent activity from start to finish and it took planning. The other choices are all legitimate claims that have been exaggerated or enhanced to increase payment, which is the definition of "soft fraud".
The insuring agreements of an Equipment Breakdown policy, provides coverage for:
An Equipment Breakdown Policy provides, in essence, loss or breakdown coverage for electrical, mechanical, heating/air conditioning and business equipment systems. This coverage is most noteworthy because it covers certain perils that are excluded by other policies. And, it's not just the physical damage caused by the explosion or breakdown that's of importance. Valuable time and profits which might normally be lost because the cause of loss was an excluded peril can, under this coverage, be reimbursed under Business Interruption and Extra Expenses coverage until repair of the damaged or broken boiler or machinery is completed. Damage to the personal property of others is also included.
Which of the following NFIP( national flood insurance) policies is required to include the Increased Cost of Compliance (ICC) coverage?
An NFIP Dwelling policy under the Regular Program.
Which of the following would be "an insured" under a Business Auto policy?
Any person who is driving a covered auto owned by the named insured after receiving permission
Unless otherwise provided by law, every insurer must pay all or part of a claim within ____ working days from date of agreement with an insured or claimant, or within ____ working days after receipt from the insured or claimant, of documentation needed to process the claim for payment as requested by the insurer.
Both require action within five working days.
Section I of the Businessowners policy places limitations on coverage for certain losses if they are not caused by a specified cause of loss. All of the following are specified causes of loss under the policy, EXCEPT:
Building glass breakage
Which of the following is a general summary of a policy?
Certificate of Insurance
The basic limit for Coverage F -- Medical Payments of the standard Homeowners forms is:
Coverage F -- Medical Payments to Others under the standardized forms has a limit of $1,000 per person, per occurrence.
All of the following would be included on the proof of loss statement of a property loss claim, EXCEPT:
Documentation of the pain and suffering the insured has experienced due to the property loss
When is the unit of measurement used when measuring for, purchasing and installing cabinets?
Inches
With inland marine insurance bridges, tunnels, and communication towers are referred to as:
Instrumentalities
While in England an insured has her purse stolen and files a claim for $500 of cash, $1,000 in airline tickets, $250 for miscellaneous items and $50 for the value of the purse. How much of this loss would be covered under a DP-1 dwelling form?
None of the dwelling forms provide theft coverage of personal property unless the theft coverage endorsement is purchased.
Which one of the following situations may be considered "advertising injury"?
Only the libel of an organization would be covered under "advertising injury"
The insured and her 18-year-old son, who lives in the insured's household, are crossing the street when both of them are struck by a drunk driver. The Part B - Medical Payments coverage of the insured's personal auto policy will:
Part B - Medical Payments of the insured's personal auto policy would cover the insured and her son for treatment for the injuries they sustained.
Part D of the Personal Auto policy provides coverage for all of the following, EXCEPT:
Part D does not cover all direct losses to the insured's covered auto, it covers only those direct losses that are also accidental.
Sally Roe's vehicle is rear-ended by John Doe. Sally and John are good friends. Sally tells John not to worry about the damage. She says she has insurance and will tell her insurance company to pay for the damage. She will waive her subrogation right so that John won't have to pay anything. Her insurer will:
Proceed with subrogation against John Doe and will not honor the waiver
The HO-3 form insures for direct physical loss to covered property involving collapse of a building caused by all of the following, EXCEPT:
Settling or earth movement is excluded under the policy.
Which of the following Business Automobile policy symbols permits the insured to purchase coverage for both liability and physical damage?
Symbol 3 is the only BAP symbol that covers the automobile for both liability and physical damage coverage. Symbols 6,7, and 19 (among others) provides only liability coverage.
What limit of liability would be needed for a risk that transports radio active materials as required by the Motor Carrier Act under the MCS-90 endorsement?
The MCS-90 endorsement requires the insured to carry a minimum of $5,000,000 in liability coverage. The endorsement provides for environmental restoration coverage as a result of pollution damages. The higher limit is required if transporting extra hazardous material.
All of the following are reasons that an adjuster should keep very detailed log notes, EXCEPT:
The adjuster's log notes are used to determine negligent parties, to assist in detecting fraud, to become a part of the claims file, and to be used in future proceedings. The log notes are not intended to produce a fraudulent record to deny a claim.
Which of the following statements is TRUE regarding the auto dealers' physical damage coverage under the Garage policy?
The coverage is provided by a blanket limit for covered autos
The insured is covered under a BOP policy. Contents coverage is included. If the insured buys a separate piece of machinery and insures it separately, how will the BOP policy respond to a loss to this machinery?
The equipment policy will be primary and the BOP will be excess if the separate policy does not provide adequate limits of coverage..
Jones Construction Company has a CGL policy with coverage dates of 03/01/17 to 03/01/18. The per occurrence limit is $500,000 and the general aggregate limit of $1,000,000. The maximum that can be paid out on the insured's behalf is:
The maximum per claim is $500,000 but, the maximum for all claims paid during the policy period is the aggregate limit of $1,000,000
The time period after the policy inception and before the policy expiration is known as
The policy period is stated on the Declarations page and is the period of time when coverage is in effect. The time period between the policy inception and the policy expiration.
The insured owns a one-family dwelling with a detached garage. The dwelling is insured for $200,000. How much coverage applies to the detached garage?
The policy provides for 10% of the dwelling (Coverage A) limit. Therefore, the garage is insured for $20,000 for the same perils that apply to the dwelling.
Under Coverage E - Scheduled Farm Property, how is the property covered?
The property is covered for the limit shown on the declarations page of the policy for the property specifically scheduled.
If a shed roof is 10 X 20 feet, how many bundles of shingles would be needed to roof the shed?
The shed is 200 square feet. Two squares are needed. One square covers 100 square feet. There are 3 bundles per square so a total of 6 bundles are needed.
A customer in a restaurant becomes ill after they return home after eating. Which policy would respond to handle the claim?
The standard CGL would provide coverage without an endorsement. Products coverage is included unless excluded.
Equipment Breakdown coverage does not apply to which of the following losses?
Vandals have destroyed a boiler
Under a Businessowners policy, the "Hired and Nonowned Auto Liability" endorsement would cover:
Vehicles borrowed by the insured.
Jerusha has her business automobiles covered under a Business Auto policy. She has purchased a new business automobile recently but was not required under her policy provisions to report her newly acquired auto. Based on this information, which BAP symbol is listed on the Declarations page of Jerusha's policy?
When Symbol 1 is listed on the Declarations page, the insured is not required to report "newly acquired autos" to the insurer. This is because Symbol 1 covers "any auto".
The claims-made form of a CGL policy provides coverage for bodily injury and property damage:
When damages are first claimed during the policy period regardless of when the occurrence happened, subject to the retroactive date in the policy
Under the CGL coverage part as it relates to products liability coverage, which of the following would apply?
Worldwide coverage is provided as long as the product is manufactured or sold in the covered territory and the claim is brought within the coverage territory.
The additional coverage on the Building and Personal Property coverage of a Commercial Property policy for electronic data provides _________ for the cost of replacing and restoring electronic data that has been destroyed or corrupted by a covered cause of loss.
Your answer: $2,500 in the aggregate. is correct.
In order for a "full release settlement" to become closed, what MUST occur?
check must be cashed by claimant
Which of the following types of carriers must assume the broadest liability under common law?
common carriers must assume the broadest liability under common law. They are not responsible for acts of God such as floods, hurricanes or for the negligence of the shipper (poor packing).
