AD Banker Property and Casualty

11.1 Under a Commercial Crime policy, the definition of securities includes all of the following, except: A. Bank notes B. Evidences of debt C. Tokens D. Revenue stamps

Bank notes

10.7 Under the Garage Coverage Form, covered autos are usually written on which of the following basis? A. Scheduled B. Blanket C. Comprehensive D. Specific

Blanket (By writing coverage on a blanket basis, the insured may be sure that all autos used in the business are covered, whether they are owned, non-owned, customers cars, or other.)

Elements Of A Contract (CLOAC)

C- Competent Parties L- Legal Purpose O- Offer & Acceptance C- Consideration $$$

15.1 Which of the following is incorrect with regard to insurance rates in Colorado? A. Considering past and prospective loss experience when setting rates is unfairly discriminatory B. Workers' Compensation and assigned risk auto are regulated by prior filing and approval C. Rates must not be excessive, inadequate, or unfairly discriminatory D. Type II coverages are regulated by open competition, meaning that prior approval is not require

Considering past and prospective loss experience when setting rates is unfairly discriminatory (Considering past and prospective loss experience is an allowable method of setting rates and is not unfairly discriminatory.)

9.1 What type of insurance indemnifies the legal liability of an insured for the actions of the insured's subcontractors? A. Completed Operations Insurance B. Contingent Liability Insurance C. Contractors Liability Insurance D. Contractual Liability Insurance

Contingent Liability Insurance

9.1 Which of the following insurance forms is designed for the person who has the potential for a liability exposure caused by negligent acts of the contractor or subcontractor he hires to make repairs, construction, or alterations? A. Contractual Liability Insurance B. Completed Operations Insurance C. Contingent Liability Insurance D. Contractors Liability Insurance

Contingent Liability Insurance

8.4 Under the Builders Risk Coverage Form, all of the following are true, except: A. Coverage includes trees, plants, outside antennas and signs that are not attached to the building B. There is no vacancy provision in the Commercial Builders Risk Coverage Form C. Coverage terminates 90 days after completion, or when the building is occupied D. Coverage on the structures under construction includes materials, supplies, and equipment intended to become a permanent part of the building.

Coverage includes trees, plants, outside antennas and signs that are not attached to the building

13.3 Which of the following is true regarding Extra Expense Coverage under a BOP? A. Coverage is for 12 months after the direct loss B. Extra Expense coverage is provided until the Property Limit of Insurance is exhausted C. There is a monthly limitation equal to 1/12th of the Property Limit of Insurance D. Extra Expense coverage is not available to commercial tenants

Coverage is for 12 months after the direct loss

13.3 Which of the following is true regarding Business Income Coverage under a BOP? A. Coverage is provided for up to 12 months after the direct loss, with no limit on the amount of monthly indemnification, and no limit of insurance B. The monthly limitation is 1/12th of the limit of insurance applying to Buildings and Business Personal Property C. Coverage is for 12 months after the direct loss, starting 24 hours after the direct loss D. The monthly limitation is 1/12th of the limit of insurance applying to Buildings

Coverage is provided for up to 12 months after the direct loss, with no limit on the amount of monthly indemnification, and no limit of insurance

Parts Of An Insurance Policy (DICE)

Declarations Insuring Agreement Conditions Exclusions

2.1 Which of the following statements regarding deductibles is true? A. Deductibles apply only to larger losses B. Deductibles help reduce the number of frivolous or small claims C. Deductibles tend to increase premiums D. Deductibles reduce the total amount of insurance available

Deductibles help reduce the number of frivolous or small claims

1.7 Which Federal entity administers the Terrorism Risk Insurance Program Reauthorization Act?

Department of the Treasury

8.7 All of the following are correct in regards to Extra Expense coverage, except: A. It is considered to be a Time Element Coverage B. Extra Expense coverage cannot be included in the Business Income Coverage Form C. It covers necessary expenses incurred during the period of restoration that would not have occurred if there had been no direct physical loss D. It includes costs to equip a temporary location

Extra Expense coverage cannot be included in the Business Income Coverage Form (Extra Expense coverage can also be written in the Business Income Coverage Form.)

8.3 The Outdoor Property Extension under the Building and Personal Coverage Form insures against which perils? A. Fire, lightning, riot, civil commotion, aircraft, and vandalism B. Fire, lightning, explosion, riot, civil commotion and aircraft C. Fire, lightning, windstorm, hail, riot, civil commotion and aircraft D. Fire, lightning, windstorm, hail, explosion, aircraft, and vehicles

Fire, lightning, explosion, riot, civil commotion and aircraft (The most that is paid under the Outdoor Property Extension is $1,000 per Occurrence, but not more than $250 on any one tree, shrub, or plant. The perils covered by this extension are fire, lightning, explosion, riot or civil commotion, and aircraft.)

12.4 Ocean marine Hull Coverage and Cargo Coverage are written on which basis? A. Market Value B. Full valued basis C. Actual Cash Value D. Replacement Cost

Full valued basis (Cargo and Hull Insurance are written on a full valued basis. The valuation of the cargo includes the stated value of the invoice, import duties, and freight charges.)

All of the following are excluded under the BOP, except: A. Losses caused by earth movement B. Increased cost of construction C. Losses caused by off-premises power failure D. Losses caused by mechanical breakdown

Increased cost of construction (The Increased Cost of Construction Additional Coverage provides $10,000 coverage for costs incurred to comply with an ordinance or law regulating repairing or replacing damaged building parts.)

2.4 Which of the following is not a condition found in an insurance policy? A. Subrogation B. Assignment C. Insuring Agreement D. Liberalization

Insuring Agreement

12.1 Which of the following is covered under Aircraft Liability Insurance? A. Legal liability of owners and operators of aircraft hangers and aircraft repair shops B. The incidental auto liability exposure of private pilots C. Liability claims arising from the ownership, maintenance or use of an aircraft D. Owners of private, municipal, and commercial airports

Liability claims arising from the ownership, maintenance or use of an aircraft (Aviation Insurance Liability includes Aircraft Liability, Airport Liability and Hangerkeepers' Liability. Aircraft Liability insurance covers claims arising from the ownership, maintenance, or use of an aircraft.)

13.3 Under a Businessowners policy, if an insured acquires a building on April 1st, it is automatically covered until which date? A. April 10 B. April 21 C. June 1 D. May 1

May 1

13.3 The BOP's optional coverage for money and securities will cover which of the following? A. Accounts receivable records necessary to prove amounts owed the insured B. Money and securities against theft, disappearance or destruction C. Business personal property D. Loss of money or securities resulting from dishonest acts of employees

Money and securities against theft, disappearance or destruction (The optional coverage for money and securities is necessary to provide coverage for these items, since money and securities are listed as property not covered under the policy proper.)

2.4 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

4.5 All of the following are true regarding the Broad Theft Endorsement on a Dwelling policy, except: A. It may be added to any of the Dwelling forms B. It also includes vandalism resulting from theft C.Only on-premises coverage is available D. It applies only to owner-occupied structures

Only on-premises coverage is available (The Broad Form Theft endorsement is attached to owner-occupied Dwelling policies to provide theft coverage for the owner-occupant's Personal Property. On-premises and off-premises coverage is available.)

10.1 The Business Auto Coverage Form is intended for which of the following businesses? A. Owned or hired trucks, trailers and semi-trailers only B. Owned, leased, hired or borrowed private passenger autos, trucks, trailers and semi-trailers C. Owned, leased, hired or borrowed private passenger autos 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 (The Business Auto Coverage Form is used for insuring owned, leased, hired or borrowed private passenger autos, trucks, trailers and semi-trailers used in the business of the insured.)

7.5 All of the following are false concerning the National Flood Insurance Program, except: A. Dwelling coverage includes trees, shrubs, and plants B. Payment for losses are made by the federal government C. Flood policies are available only from the National Flood Insurance Program D. Agents may bind flood insurance for up to 15 days prior to submitting the final application

Payment for losses are made by the federal government (Although private insurers sell and service flood insurance in addition to that provided by the National Flood Insurance Program, the federal government reinsures all flood insurance.)

14.4 The Workers' Compensation Insurance Schedule of Benefits applies to: A. Permanent Total disabilities B. Temporary Partial disabilities C. Temporary Total disabilities D. Permanent Partial disabilities

Permanent Partial disabilities

5.3 An insured has a homeowners broad form with a $200,000 limit on the dwelling and the standard deductible. If the insured's $2,500 boat and trailer are stolen from his driveway, what is the most the insured will collect from the policy? A. $1,500 B. $2,250 C. $1,250 D. $2,500

$1,250

7.1 B is traveling to Europe for a month's vacation. Which of the following coverage's might her agent recommend to cover personal items? A. Camera floater B. Personal articles floater C. Personal effects floater D. Scheduled personal property

Personal effects floater

12.7 In surety bonding, the party whose obligation is guaranteed is called the: A. Obligee B. Surety C. Principal D. Guarantor

Principal (The principal is the party whose obligation is guaranteed. The principal might be a contractor, an administrator, a guardian, or a business subject to municipal or other laws and regulations.)

5.7 All of the following are covered under Section II of the Homeowners Policy, except: A. Medical expenses for an accident arising out of the premises or non-business activities of an insured B. Property of the insured C. The insured's liability for damages to property of others D. The insured's liability for bodily injury to others

Property of the insured

7.5 Which of the following is true about the National Flood Insurance Program? A. Coverage on trees, shrubs, and plants is limited to $500 for any one tree, shrub, or plant B. Coverage is available for above ground buildings, wharves, piers, and docks C. For dwelling structures, coverage includes direct and indirect loss D. Property removed to protect it from flood is covered for 45 days at other locations

Property removed to protect it from flood is covered for 45 days at other locations (Property removed to protect it from flood is covered at other locations for 45 days, but only for the peril of flood.)

Negligence (SLAP)

S- Standard Of Care L- Legal Duty A- Actual Loss P- Proximate Cause

5.8 In respect to Section II of a Homeowners Policy, all of the following are true, except: A. Damage to Property of Others pays up to $1,000 per occurrence B. Bodily injury or property damage arising from a vehicle used to assist the handicapped, such as a wheelchair, is covered C. Individual and family cemetery plots qualify as an insured location D. Section II losses are subject to a standard $250 deductible

Section II losses are subject to a standard $250 deductible

2.4 X's neighbor shoots off fireworks on July 4th and puts the shells in X's trash can, causing a fire and damaging X's garage. X's company pays the loss and contacts the neighbor for reimbursement. This is an example of: A. Subrogation B. Reimbursement C. Loss Settlement D. Appraisal

Subrogation

15.1 The Primary purpose of the insurance is to protect who?

The general public

8.9 Which of the following is not true of the value reporting form under a Commercial Property policy? A. An advance premium is required at the beginning of the policy period B. Late reporting or under-reporting will result in a penalty in the event of a loss C. Reports may be filed daily, weekly, monthly, or quarterly D. The insured is only required to report up to 80% of value of the property

The insured is only required to report up to 80% of value of the property (Reporting of 100% of values is required to guarantee that adequate insurance is being provided and charged.)

12.11 Which of the following is not correct about the Crop/Hail policy? A. Crops are covered for fire, lightning, freezing, drought, insects, and disease B. The policy coverage begins at 12:01 a.m. on the day before the crop breaks through the ground C. Failure to harvest a mature crop is not covered D. The payment of a loss reduces the total amount of available insurance

The policy coverage begins at 12:01 a.m. on the day before the crop breaks through the ground

4.2 Which of the following is true regarding Coverage A under the Dwelling Policy? A. The policy does not include coverage for wind loss of television antennas B. Coverage for land is restricted to the land upon which the dwelling is sitting C. Outdoor equipment is not covered D. Coverage A includes a detached carport

The policy does not include coverage for wind loss of television antennas

9.2 Which of the following is true regarding the Supplemental Extended Reporting Period? A. It covers occurrences that take place after the policy term, during the Supplemental Extended Reporting Period B. The charge for the Supplemental Extended Reporting Period may not exceed the annual premium of the expiring policy C. Cancellation by the insurer requires 90 days notice of cancellation D. The premium is a one-time charge

The premium is a one-time charge (The cost of the endorsement may be up to 200% of the CGL's annual premium. This is a one-time charge and is fully earned at issuance.)

15.1 All of the following apply to a Summary Disclosure form, except: A. Each insurer must file a Summary Disclosure Form for dwelling, fire, homeowners or auto coverage with the Division B. Producers and insurers must have an insured's express consent to add optional or enhanced coverage, other than UM/UIM or medical payments, that increases the premium C. The producer must provide the form within 30 days of purchase if doing so by mail D. Specify who initiated optional coverage, and keep the consumer consent on file for at least 3 years

The producer must provide the form within 30 days of purchase if doing so by mail (A producer must provide the Summary Disclosure form within 48 hours of purchase if doing so by mail and not within 30 days of purchase)

10.3 Which section of the BAP provides coverage for autos in the care, custody and control of the insured? A. Section III B. This coverage is not provided under the Business Auto Coverage Form C. Section I D. Section II

This coverage is not provided under the Business Auto Coverage Form (Coverage for loss or damage to a customer's vehicle in the insured's care is excluded under the BAP. It is found in Section III of the Garage Coverage Form.)

12.5 What is the purpose of an Umbrella Liability Policy? A. To provide liquor liability coverage B. To cover large and catastrophic losses C. To combine all the insured's insurance exposures under a single policy D. To provide professional liability coverage

To cover large and catastrophic losses

14.4 Most states provide Workers' Compensation medical benefits coverage up to what limit? A. $125,000 B. $250,000 C. Unlimited coverage D. $500,000

Unlimited coverage

13.4 Under the BOP, which of the following types of property is not covered? A. Building materials, equipment or supplies located in the open B. Business Personal Property located outside the building C. Vehicles subject to motor vehicle registration D. Tenants improvements made to structures not owned by the tenant

Vehicles subject to motor vehicle registration (Vehicles subject to motor vehicle registration are eligible for coverage under a commercial automobile policy.)

DP (HO) Exclusions W.E.P.I.N. (G.) N.O.W.

Water Earth Movement Power Failure Intentional Loss Neglect (G)overnment Action Nuclear Hazard Ordinance or Law War

4.1 Under the Basic Dwelling Form, when is damage caused by vandalism included as covered peril? A. When the Extended Coverage perils are added to the DP-1 B. This coverage is not available in the Basic Dwelling Policy C. Under the unendorsed DP-1 D. When the V&MM endorsement is added to the DP-1

When the V&MM endorsement is added to the DP-1 (The DP-1 provides coverage against three perils: fire, lightning, and internal explosion. The Vandalism and Malicious Mischief endorsement adds coverage for damage caused by vandalism.)

DP Extended Coverage's W.H.A.R.V.V.E.S

Wind Hail Aircraft Riot Vehicles Volcanic Eruption Explosion Smoke

11.3 While traveling by train, a marketing director for a watch manufacturer discovers that someone has stolen her briefcase while she was away from her seat. The briefcase contained sample watches valued at $2,000, marketing materials valued at $200, and miscellaneous company property valued at $50. How much will the watch manufacturer's crime policy pay under the Outside The Premises insuring agreement? A. Zero B. $2,250 C. $250 D. $2,000

Zero

5.5 An insured with a $500,000 HO-5 policy incurs $1,500 in damages due to a flood destroying the wood flooring. The policy will pay: A. Zero B. $1,500 C. $1,000 D. $1,250

Zero

5.4 Policyholder S has a HO-5 policy with a $250,000 Coverage A limit. After a strong wind blows a mailbox into S's front picture window, causing $2,500 damage, S immediately buys $250 of wood and plastic sheeting to cover the damaged window and prevent further damage. How much would S's policy reimburse? A. $2,750 B. $500 C. $250 D. $2,500

$2,750

10.2 Which Business Auto Symbol provides the broadest coverage? A. 2 B. 3 C. 9 D. 1

1 (Symbol 1 includes any auto, whether owned or not by the insured if it is used in the insured's business. The other choices refer only to owned autos only (2 and 3) or non-owned autos only (9).)

6.3 Under the PAP, how long does an injured party have following an accident to report a Medical Payments claim? A. 48 hours B. 1 year C. 3 years D. 6 months

3 years (The insurer will pay reasonable expenses incurred for necessary medical or funeral services incurred within 3 years of the date of the accident.)

1.8 Possibility of Loss is called?

A Risk

12.6 Which of the following would be covered by a law firm's professional liability policy? A. An angry client sideswipes a lawyer's car B. A lawyer causes property damage when visiting a client's home C. A client sues a lawyer for purposely losing his case D. A lawyer causes bodily injury to a witness

A client sues a lawyer for purposely losing his case (Professional Liability Insurance protects professionals from losses that arise specifically out of their professional conduct. It covers losses other than BI or PD, such as: Fraud or breach of contract, Conflict of interest, Malpractice or neglect, Government investigation, and Errors and omissions.)

8.3 Which of the following losses would the Building and Personal Property Coverage Form NOT pay on an actual cash value basis? A. A loss to appliances, whether attached or not B. A loss to outdoor equipment or furniture C. A loss of $2,500 or less to a building D. A loss to awnings and floor coverings

A loss of $2,500 or less to a building (A loss to the building of $2,500 or less would be paid at replacement cost, all others mentioned are paid at actual cash value.)

11.2 A crime insurance policy written with a discovery form will cover which of the following losses? A. A loss that occurred and was discovered during the policy period B. A loss that took place during the policy period and was discovered within one year after the termination of the policy period C. A loss that occurred and was discovered prior to the policy period D. A loss discovered after the policy termination

A loss that occurred and was discovered during the policy period (The discovery form provides coverage for losses discovered during the policy period if the loss occurred between the policy's retroactive date and the policy termination.)

6.1 Under the Personal Auto Policy, a family member is defined as which of the following? A. A person who is a resident of a household and related by blood, marriage or adoption B. A member of the named insured's immediate family, regardless of place of residence C. A person related to the named insured who has frequent use of the insured automobile D. A person using the insured automobile with the named insured's permission

A person who is a resident of a household and related by blood, marriage or adoption

7.5 Which of the following losses would not be covered under a NFIP policy? A. A water main in the street breaks, flooding the insured's basement B. Mudslides cover a garage on the banks of a major river following torrential rains C. A home on a seaside cliff falls to the beach resulting from swift erosion D. Tidal waters flood a coastal home following a hurricane

A water main in the street breaks, flooding the insured's basement

Broadform Named Perils "A Vanilla Bean Frappuccino Will Top Every Flavor"

Accidental Discharge Vandalism Burglary Damage Falling Objects Weight of Ice, Sleet, Snow Tearing Electrical Freezing

4.2 The Basic (DP-1) Dwelling Form does not include which coverage?\ A. Worldwide coverage on personal property with a limit up to 10% of Coverage C B. Additional living expenses C. Property removed to a newly acquired residence for 30 days or policy expiration, which ever occurs sooner D. Fair rental value

Additional living expenses (Coverage for Additional Living Expenses is only available under the DP-2 and DP-3 forms.)

12.1 Under Marine Policies, the term uncontrolled means forms that: A. Are not standardized by any rating bureau B. Are filed with the State Insurance Department C. Are not approved by the National Association of Insurance Commissioners D. Must be tailored to the individual insured by endorsement

Are not standardized by any rating bureau

12.1 Under Marine Policies, the term uncontrolled means forms that: A. Must be tailored to the individual insured by endorsement B. Are filed with the State Insurance Department C. Are not approved by the National Association of Insurance Commissioners D. Are not standardized by any rating bureau

Are not standardized by any rating bureau (Uncontrolled forms are developed by individual companies to meet the needs of the company and its target market. They will normally differ from insurer to insurer.)

11.1 The Inside The Premises Theft of Money and Securities insuring agreement will cover all of the following losses, except: A. Disappearance of money B. Damage to a bank caused during a theft C. Attempted robbery of a custodian D. Damage to a locked safe

Attempted robbery of a custodian (Attempted robbery of a custodian would be covered under the Inside The Premises Robbery or Safe Burglary insuring agreement.)

5.3 An insured has a homeowners broad form with a $200,000 limit on the dwelling and the standard deductible. If the insured's $2,500 boat and trailer are stolen from his driveway, what is the most the insured will collect from the policy? A. $1,500 B. $1,250 C. $2,500 D. $2,250

$1,250 (The limit for watercraft including trailers is $1,500. The policy will pay the limit less the standard deductible of $250.)

9.6 Intrepid Industries carries a CGL with a General Aggregate Limit of $300,000 and an Occurrence Limit of $100,000. After an occurrence resulting in a $200,000 loss, followed by a second occurrence resulting a $100,000 loss, how much of the General Aggregate Limit remains available against future claims? A. $100,000 B. None C. $200,000 D. $300,000

$100,000 (Following the first occurrence, the policy would pay $100,000 of the $200,000 loss, because the occurrence limit is $100,000. The second loss of $100,000 would be paid in full, leaving $100,000 in the Aggregate limit.)

13.6 Under the Earthquake Endorsement to the BOP, if an earthquake begins before the policy expiration, coverage continues for up to how many hours? A. 168 B. 72 C. 128 D. 48

168

11.1 Which of the following is a necessary element of robbery? A. Shoplifting B. Taking of property from a person by someone who caused them injury C. A face to face confrontation D. Theft from a messenger

A face to face confrontation (Robbery involves a theft witnessed by the person being robbed in which there is the threat of bodily harm. Only the threat of harm need be enacted. Not all robberies involve messengers, and not all thefts of property in a messenger's custody are robberies.)

6.2 Which of the following would not be covered under a Personal Auto Policy? A. An eight passenger van with a gross vehicle weight of 7,600 pounds B. A motorcycle C. A pickup truck with a gross vehicle weight of 7,600 pounds D. Any trailer that the insured owns

A motorcycle

12.4 Which of the following describes the term General Average under Ocean Marine Insurance? A. A partial loss where the loss is shared B. A partial loss where the loss is not shared C. The average value per item of all the cargo on the ship D. The average freight charges on the entire cargo of the ship

A partial loss where the loss is shared (General Average refers to loss resulting from a voluntary sacrifice of any part of the vessel or cargo to safeguard the vessel and the rest of the cargo. When such a loss occurs, the ship owner and all cargo owners pay it on a pro rata basis.)

15.1 Each of the following is a component of the legal responsibility of maintaining an insurance license, except: A. A producer must inform the Commissioner of any change in address within 30 days B. A producer must register any assumed name in writing to the Commissioner within 30 days of use C. An insurer must notify the Commissioner within 30 days of terminating a producer's appointment D. The producer must be given a copy of the termination within 15 days of the Commissioner's notification, but has 30 days to file comments about that termination with the Commissioner

A producer must register any assumed name in writing to the Commissioner within 30 days of use

8.3 Under the Building and Personal Property Coverage Form, when is abandonment allowed? A. Abandonment is allowed only after written notice to the company B. Abandonment is allowed whenever the insured and insurer fail to reach agreement on the amount of a loss C. Abandonment is allowed only in the cases of total loss D. Abandonment is never allowed

Abandonment is never allowed

14.5 Employers Liability Insurance will pay all the following claims, except: A. An employee's daughter is claiming mental anguish because she is so upset about her mother's injury caused by a defective machine B. An employee must hire transportation to take her daughter to school since she can't drive due to her injury C. An employee is injured while attending a company picnic at a nearby park D. After paying benefits to an employee injured by a defective machine, an employer files a claim against the machine manufacturer

An employee is injured while attending a company picnic at a nearby park

9.3 Which of the following would not be covered under Coverage A of the CGL? A. An insured was visiting a client in Canada, who was injured after he tripped over the insured's briefcase B. While working at a trade show, an insured's employee started a small fire C. An insured's client was injured when she slipped on a loose rug on the insured's premises D. An insured's employee is injured when a bookcase in the office falls on her

An insured's employee is injured when a bookcase in the office falls on her (Workers' Compensation insurance will cover the injuries to an employee arising out of work activities. )

15.1 of the following apply in a Summary Disclosure form? A. It prevents financial loss to policyholders when an insurer becomes insolvent B. A producer must register any assumed name with the Commissioner before use and notify the Commissioner before discontinuing its use C. An insurer or producer must have the insured's consent to add optional and enhanced coverage, other than UM/UIM that increases premium D. Every insurer writing any kind of property and casualty insurance must be a member of the Association

An insurer or producer must have the insured's consent to add optional and enhanced coverage, other than UM/UIM that increases premium (An insurer or producer must have an insured's consent to add optional or enhanced coverage, other than uninsured or underinsured motorist coverage, that increases the premium.)

10.1 Non-owned autos under the Business Auto Coverage Form include: A. Any auto not used in the insured's business B. Autos borrowed by the insured C. Autos leased or hired by the insured D. Autos owned by the insured's employees while being used in the insured's business

Autos owned by the insured's employees while being used in the insured's business (Non-owned Autos Only Coverage, Symbol 9, provides coverage for only those autos the insured does not own, lease, hire, rent or borrow, which are used in connection with the insured's business. This includes autos owned by the employees or members of their household.)

14.1 Which of the following is true concerning Workers' Compensation benefits? A. Benefits are paid only if there was no negligence on the part of the employee B. Benefits are paid for injuries sustained on or off the job C. Benefits are paid only upon determination of negligence on the part of the employer D. Benefits are to be paid to employees for their on-the-job injuries, regardless of negligence on anyone's part

Benefits are to be paid to employees for their on-the-job injuries, regardless of negligence on anyone's part (Workers' Compensation benefits are paid for on-the-job injuries regardless of whether there was negligence involved by the employer or the employee.)

12.4 The Collision or Running Down Clause in Ocean Marine Insurance covers: A. Damage to the insured vessel caused by running aground B. Collision damage to the insured vessel when it collides with a pier or fixed object C. Collision damage to another vessel when the shipper is liable D. Collision damage to the insured vessel when it collides with another vessel

Collision damage to another vessel when the shipper is liable

12.4 The Collision or Running Down Clause in Ocean Marine Insurance covers: A. Collision damage to another vessel when the shipper is liable B. Collision damage to the insured vessel when it collides with a pier or fixed object C. Collision damage to the insured vessel when it collides with another vessel D. Damage to the insured vessel caused by running aground

Collision damage to another vessel when the shipper is liable (A Collision and Running Down Provision is contained in the standard Hull Policy to cover liability incurred for damage to another vessel or structure.)

12.4 The Collision or Running Down Clause in Ocean Marine Insurance covers: A. Collision damage to the insured vessel when it collides with another vessel B. Damage to the insured vessel caused by running aground C. Collision damage to the insured vessel when it collides with a pier or fixed object D. Collision damage to another vessel when the shipper is liable

Collision damage to another vessel when the shipper is liable (A Collision and Running Down Provision is contained in the standard Hull Policy to cover liability incurred for damage to another vessel or structure.)

4.2 Which is true of Coverage C of the Dwelling Policy? A. Coverage C provides coverage for passports, tickets, and deeds B. Coverage C provides coverage for coins and currency C. Coverage C provides coverage for grave markers D. Coverage C provides coverage for the personal property of a guest

Coverage C provides coverage for the personal property of a guest (At the insured's request, Coverage C will apply to personal property of a guest or servant while located on the described location. Personal property of a tenant or boarder is not covered.)

Water Earth Movement Power Failure Intentional Loss Neglect (G)overnment Action Nuclear Hazard Ordinance or Law War

DP Homeowners Exclusions

6.5Collision Coverage under Part D of the Personal Auto Policy would cover which of the following? A. Breakage of the windshield caused by collision with a stone or other missile B. Damage to the insured auto's bumper sustained when the auto crashed into a tree C. Damage to the auto caused by objects blown into it during a severe windstorm or tornado D. Damage to the auto caused by collision with an animal on the roadway

Damage to the insured auto's bumper sustained when the auto crashed into a tree

10.3 All of the following are an 'insured' under Larry's Business Auto Policy, except: A. Tim, an employee driving a car Larry rented for business purposes B. Ed, who owns a car Larry borrowed C. Larry, the named insured D. Bob, the sales director at Larry's company using a covered auto with permission

Ed, who owns a car Larry borrowed

12.2 Which of the following coverage forms covers equipment during transportation, unloading and installation until control is given to the purchaser? A. Equipment Dealer's Coverage Form B. Electronic Data Processing Floater C. Contractor's Equipment Floater D. Installation Floater

Installation Floater (The Installation Floater is designed to cover contractors for the equipment they are installing on contracted jobs while that equipment is being transported or being installed on the job site.)

7.2 Which of the following describes the Lay Up Warranty under the Yacht Policy? A. It is an additional coverage that applies when the yacht is being repaired or serviced B. It states that coverage is suspended while the yacht is laid up C. It applies when the insured yacht is in storage and allows a return of premium due to the lower risk D. It is a limitation of coverage on the yacht that applies when the yacht is outside its navigational limits

It applies when the insured yacht is in storage and allows a return of premium due to the lower risk (The Lay Up Warranty allows a reduction of premium for the period during which the yacht is in storage. This reduction of premium reflects the reduced risk during lay up.)

5.11 Which of the following is true concerning the Home Day Care Coverage Endorsement to the Homeowners Policy? A. It provides Commercial General Liability coverage for the day care operation B. It extends Section II coverage's to the insured's home day care business C. It covers injury to attendees while loading or unloading them from draft or saddle animals D. It covers injury to an employee, as well as attendees, arising out of day care operations

It extends Section II coverage's to the insured's home day care business (The Home Day Care Coverage Endorsement extends the coverage of the Homeowners Section II to the Day Care Business.)

10.9 Under the Motor Carrier Coverage Form, Trailer Interchange Coverage would cover which of the following losses? A. Joe's truck causes property damage in a collision B. Joe's company is legally liable for physical damage sustained by a non-owned trailer C. Joe's company is legally liable for bodily injury sustained by an employee D. Joe's truck sustains damage in a collision

Joe's company is legally liable for physical damage sustained by a non-owned trailer

13.4 The Businessowners Liability Coverage Form includes coverage for bodily injury, property damage, personal injury and advertising injury to which coverage applies, plus: A. Employers liability B. Liquor liability C. Liability assumed under an insured contract D. Mobile equipment being transported on an auto owned or operated by an insured

Liability assumed under an insured contract (Liability coverage is provided for sums for which the insured becomes legally liable to pay as damages for bodily injury, property damage, or personal injury and advertising injury, including liability assumed under an insured contract.)

An insurance producer, who writes bail bonds in Colorado must meet which of the following premium or commission criteria? A. May not charge a premium or commission of more than the greater of $50 or 15% of the amount of bail furnished B. May not charge the greater of $50 or 10% of the amount of the bail furnished C. May charge the greater of $50 or 10% of the amount of the bail furnished D. May charge a premium or commission of more than $50 or less than 15% of the amount of the bail furnished

May not charge a premium or commission of more than the greater of $50 or 15% of the amount of bail furnished

9.6 Which of the following is true concerning the Premium Audit condition of the Commercial General Coverage Part to the Commercial Package Policy? A. Premium Audit is the comparison of the insured's premium with the average premium in the insured's rating classification B. Premium Audit refers to the right of the insured to contest the premium after policy issuance C. Premium audit determines what the earned premium will be at the end of the policy period D. Premium Audit is the action taken by the insurer to see that the insured's rating is properly classified

Premium audit determines what the earned premium will be at the end of the policy period (The insured must keep records sufficient for the insurer to compute premiums based upon sales, receipts, or payroll. After an audit, an additional premium is required if these records show that these items are greater than the estimates that developed the deposit premium.)

12.9 Which of the following is NOT a type of coverage provided under a farm liability policy? A. Medical payments B. Personal and advertising injury C. Bodily injury and property damage liability D. Professional liability

Professional liability

8.3 Which of the following is true regarding Property Off Premises coverage under the Building and Personal Property Coverage Form? A. Property Off Premises is covered only for 30 days after its removal from the premises B. It is offered as an Additional Coverage C. Property in a motor vehicle or in the care, custody, and control of a salesperson is included D. There is a coverage limit of $5,000 on Property Off Premises

Property in a motor vehicle or in the care, custody, and control of a salesperson is included

6.6 Part E of the Personal Auto Policy states that after a loss the insured must: A. Give notice of the accident to the insurer within 30 days B. Immediately initiate repairs to the vehicle to protect it from further damage C. Protect the auto from further damage D. If the vehicle was stolen, contact the insurer for permission to report the theft to the police

Protect the auto from further damage (In the event of a covered loss, Persons submitting claims to the insurance company are required to: Notify the insurer promptly about how, when, and where the accident or loss occurred; Cooperate with the investigation and settlement of any claim; Promptly send to the insurer any copies of notices or legal papers received; Submit to a physical exam as reasonably required by the insurer; Authorize the insurer to obtain copies of medical reports and other pertinent records; Submit a proof of loss when required by the insurer.)

9.6 Which of the following conditions would not be found in a CGL policy written on the occurrence form? A. The Insured's Right to Claim Information B. Duties in the Event of Occurrence, Claim, or Suit C. Representations D. Severability

The Insured's Right to Claim Information

12.7 In Surety bonding, the party to whom the surety is answerable is the: A. The Obligee B. The Guarantor C. The Obligor D. The Surety

The Obligee

14.2 Which of the following is not a characteristic of the employer-employee relationship as it related to Workers' Compensation coverage? A. The employer directs the way work will be completed B. The employer signs a contract with the employee C. The employer supplies the necessary tools and equipment D. The employer determines the work hours

The employer signs a contract with the employee

13.4 A Business owners 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. One of the insured's products was recalled due to a mechanical imperfection D. The insured signed a contract with a competitor agreeing not to advertise in that zip code

The insured is sued for injury to a competitor caused by one of their advertisements

Which section of the BAP provides auto medical payments coverage? A.This coverage is available by endorsement only B. Section II C. Section I D. Section III

This coverage is available by endorsement only (Commercial auto policies do not automatically provide medical payments coverage, which must be added by endorsement.)

Denying health coverage solely because the insured uses a motorcycle is an example of what type of unfair trade practice? A. Unfair claim practice B. Prohibited underwriting C. Unfair discrimination D. Boycott

Unfair discrimination

8.3 Which of the following conditions under a Building and Personal Property Coverage Form determines how losses will be paid? A. Valuation Clause B. Appraisal C. Deductible D. Loss Conditions

Valuation Clause (The Valuation Clause sets forth the method of evaluating losses, and treats valuation of unusual property such as stock that has been sold, glass, outdoor equipment, and valuable papers.)

8.3 Under the Building and Personal Property Coverage Form, coverage applies to all of the following, except: A. Materials that are within 75 feet of the premises B. A tenant's interest in a built-in wall cabinet C. Windstorm damage to outdoor signs not attached to the building D. Personal property used to service and maintain the building

Windstorm damage to outdoor signs not attached to the building