Auto Insurance

If the vessel has already sailed from her loading port, automatic termination may be deferred until 15 days after arrival at the final port of discharge

A part of The American Institute Hull's Clause (AIHC) states

All the above

A property insurance policy that insures a commercial building on a replacement cost basis includes the ordinance or law coverage endorsement. Following a loss to the structure, the endorsement would cover expenses incurred by the insured because of enforcement of any building, zoning, or land use law that result in This endorsement incorporates the coverages that were provided by contingent liability endorsement, demolition cost endorsement, and increased cost of construction endorsement. Oftentimes, if the insured has an exposure to one of these coverages, there will be exposure to all of them.

60

Advanced personal auto policies issued in GA require that the insurer collect an advance payment for coverage for the first _____ days.

Common carrier cargo liability

All of the following are classes of inland marine risks EXCEPT

Insuring agreement

All of the following are conditions commonly found in the insurance policy EXCEPT Insuring agreement provides information on the policy's coverages. Conditions state the legal obligations and duties of the parties to the contract. The part of the insurance contract that describes the covered perils, and the nature of coverage of the contractual agreement between the insurer and the insured is called the

A fire in the kitchen of a home

All of the following are examples of hazards EXCEPT A fire is a peril

Up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident

All of the following are supplemental payments included in the liability section of a personal auto policy EXCEPT A personal auto policy does not pay the cost of a release of a vehicle impounded by a law enforcement agency.

The limit of liability is the greater of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle.

All of the following are true regarding physical damage coverage, EXCEPT The limit of liability is the lesser of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle.

Newly Acquired or Constructed Property

All of the following coverages are included in the BOP standard form without requesting coverage extensions, EXCEPT Newly Acquired or Constructed Property is a coverage extension available under the BOP. The BOP extension applies to personal property at those premises with a limit of $100,000 at each location, and newly acquired or constructed buildings up to $250,000.

Replacements for the boat listed in the Declarations are automatically covered, if the insured notifies the insurer within 60 days and pays the additional premium.

All of the following statements regarding a boatowners policy are true EXCEPT Automatic coverage is provided on replacements for the boat listed in the declarations provided the insured notifies the insurer within 45 days of purchase and pays any additional premium required.

Tools 50ft away from the building

All of the following types of property are covered by a standard builders risk form EXCEPT Property covered under a builder's risk coverage form includes the building or structure, temporary structures, foundations, fixtures, machinery, equipment, materials, and supplies within 100 feet of the premises if intended to become a permanent part of the building. Tools that are not intended to become permanent part of the structure will not be covered, no matter how close they are to the building.

Misdemeanor.

An agent commingled $300 of insurance premiums collected with new applications with his personal funds. The agent could be found guilty of a Any willful violation will be considered a misdemeanor unless the amount involved exceeds $500, in which case the violation will be considered a felony.

Rebating

An agent offers his client free tickets to the Super Bowl game in exchange for the purchase of an insurance policy. The agent is guilty of - When producers give or promise anything of value that is not specified in the policy, they are guilty of rebating.

Contractors equipment floater

An individual's construction company leaves mobile equipment and construction machinery on the job site until the project is completed. What could this individual use to insure it? The contractors equipment floater covers equipment left unattended on a job site until the project is finished.

Waiver

An insurance company receives an application with some information missing and issues the policy anyway. What is this called? In insurance policies, a waiver is giving up one's known right or privilege.

$14,000

An insured has $5,000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000 for the first passenger, and $8,000 for the third passenger. How much will the policy pay under medical payments coverage? The limit is not more than $5,000 per person per accident.

Per occurrence

An insured has a liability policy that sets the amount for all claims that arise from a single incident at $50,000. Which type of limit of liability does this insured's policy have? Per occurrence sets the amount for all claims that arise from a single incident at a certain number.

Unoccupied

An insured relocated to another state for work. However, she still owns and insures a house in New York, but has had no one living in it for 3 months. She is also storing some of furniture and clothes in the house. From the insurance standpoint, the insured's house is considered Unoccupancy refers to an insured structure in which no people have been living or working within the required period of time, but the structure contains contents.

Consideration

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following terms best describes what the insurer has violated? The binding force in any contract is consideration. Consideration on the part of the insured is the payment of premiums and the health representations made in the application. Consideration on the part of the insurer is the promise to pay in the event of loss. 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 is something of value that each party gives to the other. The consideration on the part of the insured is the payment of premium and the representations made in the application.

Coverage C limits will no longer apply to the jewelry insured by the endorsement.

Because an insured owns a lot of expensive jewelry, her insurance agent has advised her to purchase a scheduled personal property endorsement. If the insured adds this endorsement to her homeowners policy, which of the following statements would be correct? When items are scheduled, they are excluded from Coverage C as insured items, and are covered only under the scheduled personal property endorsement.

Loose cargo

Bulk carriers are used to transport this type of cargo. The ship itself is the container for the cargo (ex: coal, grain, phosphates) Break bulk cargo=General cargo

Salvage loss

Cargo damaged short of its destination port, an agent of the insurer at an intermediate port may agree to sell it at the best price. Settlement will be based on the difference between insured value and the net proceeds of the sale.

Standard Institute Cargo Clause

Cargo has been insured from warehouse to warehouse. This is a true statement

Containerized Cargo

Container ships also called "boxed ships" are used to transport cargo carried in 20 to 40 foot containers.

The Jones Act

Crews of ships are covered by The Jones Act is a federal law that provides remedies to seamen who are injured while working on a vessel. It extends the provisions of FELA.

None

Damage to insured property caused by earth movement or earthquake is covered under which of the following homeowner forms? Damage by earthquake is specifically excluded from coverage in all homeowner forms. However, coverage may be purchased by endorsement. If purchased, the coverage will be subject to a different deductible than other property losses.

Location schedule

Employee fidelity may be written in all the following ways EXCEPT Fidelity bonds are purchased by employers and may be written for individual named employees, on a named schedule basis where one bond is issued for several employees listed by name, or position schedule where several positions are listed and whoever is occupying a scheduled position is covered.

Speculative risk

Events in which a person has both the chance of winning or losing are classified as Speculative risk involves the chance of gain or loss and is not insurable.

Private insurers

FAIR plans are provided by FAIR plan coverage is provided and sold by private insurance companies operating in a state. While the State will determine acceptable minimum and maximum coverage limits, as well as the types of property that may be eligible for coverage, FAIR plans are administered by private insurers.

Blanket basis

Financial Institution bonds are written on a: Financial Institution bonds are normally written on a blanket basis covering all employees of that institution.

Break bulk cargo

General cargo ships are used to transport cargo that is too large to be carried in a container or boxed goods or too small to justify use of a full container General-cargo ships are used to transport....General cargo ships are generally used to carry break-bulk cargo. Break-bulk cargo is cargo that is too large to be carried in a container or boxed goods, or too small to justify use of a full container.

30 days

If an agent changes his residence address, within how many days must the agent notify the Commissioner of the change? The Commissioner must be notified of any changes of names or addresses (including business and residential) within 30 days of the change.

Experience rating plan

If the premium charged for a particular insured is increased or decreased for a future period based on that insured's loss experience for a period in the recent past, the policy uses a(n) An experience rating plan adjusts the premiums charges based on the claims history, positive or negative, of the individual insured.

Injured in an auto accident.

In a personal auto policy, Coverage C: Uninsured Motorist defines an insured person as any of the following persons EXCEPT As defined under Coverage C: Uninsured/Underinsured Motorist, the term insured includes the named insured and family members, any other person while occupying a covered vehicle, and any person entitled to recover damages because of injuries to the named insured or family members (such as parents of a deceased minor).

Injured in an auto accident

In a personal auto policy, Coverage C: Uninsured Motorist defines an insured person as any of the following persons EXCEPT As defined under Coverage C: Uninsured/Underinsured Motorist, the term insured includes the named insured and family members, any other person while occupying a covered vehicle, and any person entitled to recover damages because of injuries to the named insured or family members (such as parents of a deceased minor).

Accident insurance because it pays medical expenses regardless of fault

In an auto policy medical payments coverage is similar to

The application is submitted

In insurance, an offer is usually made when In insurance, the offer is usually made by the applicant in the form of the application. Acceptance takes place when an insurer's underwriter approves the application and issues a policy.

The insured must be legally liable for the loss

In order for a Protection and Indemnity (P&I) to cover a loss. The vessel owner may be held liable for the actions of the master, officers and crew of the ship

The insured must be legally liable for the loss.

In order for a Protection and Indemnity policy to cover a loss which of the following must be TRUE? For the P&I policy to cover a loss, the insured must be legally liable for the loss. The vessel owner may be held liable for the actions of the master, officers, and crew of their ship.

Deductible

In property and casualty insurance, what is the term for the amount of a loss that the insured must cover out of pocket, and the insurer will only pay for the additional amount of the loss above this limit? In property insurance, the amount of loss retained by the insured is called the deductible; in liability insurance, it is called retention. Most property coverages include a deductible; most liability policies do not include retention.

Uninsured Motorist Coverage

In the Personal Auto Policy, owned trailers being towed by an insured auto are automatically covered for..... Trailers, while being towed by an insured auto, are covered automatically for BI/PD and U/M under Part A of a Personal Auto Policy.

The applicant has a prior felony conviction.

In which of the following examples would a contract between an insurer and prospective insured be legal? When an insurer and insured enter into a contract, both parties must be of legal age and mentally competent. It is legal for a person convicted of a felony to buy an insurance contract. An intoxicated person, however, may not be mentally competent, and a 12-year-old student is considered to be underage in most states.

Umbrella policy

Increased value and excess liability (IVEL) clauses work like this policy. They provide excess coverage for the same losses covered by an underlining policy they are written to go with. The underlining policy must pay up to its limit before the IVEL pays anything at all.

$1,000

La Casa Pizza Shoppe has a neon sign attached to its building that features a man playing a guitar. During a severe thunderstorm, the sign is damaged by wind and hail. What is the maximum amount La Casa's Building and Personal Property policy will pay for the damage to the sign? There is a $1,000 limitation for loss or damage to outdoor signs attached to the building.

The coinsurance formula also will be applied to total losses.

NOT A TRUE statement concerning coinsurance TRUE STATEMENTS FOR coinsurance. -In the event of a total loss, the coinsurance clause does not operate, and the face amount of the policy is paid. - If the insurance carried is less than required, the insurance may not cover the whole loss; The insured agrees to maintain insurance equal to some specified percentage of the value of the property.; -It is used to help adequacy and equity in rates.;

Assured

Ocean marine policies commonly refer to the person covered by the policy (From common ocean marine terms in use since 1689)

Prevents stacking of claims

One advantage of claims made liability forms from the insurer's point of view is Because of the occurrence trigger, if an occurrence happened in more than one policy period, claims could be filed on all policies. Because of the claims made trigger, only the policy in force would be in play.

Special

Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages? The two classes of compensatory damages that may be awarded are special and general damages. Special damages are tangible damages that can be specifically measured in dollar amounts (such as out-of-pocket expenses for medical, miscellaneous expenses, and loss of wages).

Transacting insurance

Soliciting insurance, making an insurance contract effective, and dealing with matters arising from that contract are all examples of what insurance term? Any of the following acts is considered to constitute an act of "transacting insurance" in Georgia: solicitation and inducement to insurance, preliminary insurance negotiations, effectuation of an insurance contract, and transactions of matters subsequent to and arising out of effectuation of an insurance contract.

Up to $500 a day for lost earnings and $2000 for the cost of bail bonds

Supplemental payments on a CGL provide all the following EXCEPT Supplemental payments will cover only $250 for these.

Each 30-day period

The American Institute Hull's Clause (AIHC) standard conditions state for the Return of Premium will apply if a vessel has been laid up in port not under repair and not used for storage or lighting.

Goes into effect after the community has received a Flood Hazard Boundary Map and ends when the normal program begins. Provides limited amounts of coverage at subsidized rates.

The NFIP emergency program The NFIP's emergency program goes into effect when a community has applied for the program and requested a study of the area's flood potential. It ends when the normal program begins. It provides limited amounts of coverage at subsidized rates. These are standard conditions of the NFIP.

20 days

The appraisal clause of the standard fire policy allows for the process of settling disputes over the ACV of the property or the amount of loss. When disputes arise, each party (insurer and the insured) must select an impartial appraisal within In most cases, the insurer pays the actual cash value of a loss, up to the policy limit. If the insured and insurer cannot agree on the actual cash value (ACV) of the property or the amount of the loss, the appraisal clause provides a method of settling the dispute. Upon a written demand from either party, each party selects an impartial appraisal within 20 days.

1 year

The businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period? Medical payments coverage of a BOP will pay medical, dental, hospital, and funeral services incurred within one year from the date of an accident to a person who suffers bodily injury by accident on or next to the insured's premises, or because of the insured's operations.

Robbery and burglary

The definition of "theft" encompasses both Theft is the act of removing property from its rightful owner. This definition encompasses both burglary and robbery.

Extra expenses

The extra expenses that an organization would not have incurred if the business interruption had not existed is known as Extra expenses are expenses that an organization would not have incurred if the business interruption had not occurred. Examples include additional overtime labor costs or renting similar building to continue operations as opposed to waiting until existing building is rebuilt.

Concealment

The failure to disclose all known facts is called - Withholding information that is material to the risk to be insured is concealment and makes a policy voidable.

Burglary

The forced entry into the premises of another person with felonious intent is the definition of which of the following terms?

Foundation cracks

The homeowners policy covers collapse caused by all of the following EXCEPT Collapse must be caused by some sudden, unexpected reason. The foundation cracks would take years to cause collapse, meaning there would be plenty of time to find and repair them.

The limit of insurance after the deductible is paid.

The most the insurer will pay for a loss under a businessowners policy is For losses covered under a businessowners policy, the insured must pay a deductible, after which the insurer will pay up to the limit of insurance.

Definitions

The part of a policy that clarifies terms in the policy is the - The component of a policy that clarifies terms is the definitions.

Federal bond

The requirement that managers and/or trustees of employee benefit plans that come under the Employee Retirement Income Act must be covered by a fiduciary bond. Because this requirement is mandated by the U.S. Government, the bond would be classified as a These bonds are required by federal law, therefore, are classified as a federal bond.

Symbol #5

The symbol available to an insured with vehicles subject to no-fault coverage

In the event of a total loss by fire to a one or two family residential building or structure

The valued policy statute applies in which of the following events? The valued policy statute applies in the event of total loss by fire to a one or two family residential building or structure.

Any loans required to offset uncollectible amounts

This amount is not covered under accounts receivable coverage form...interest on necessary loans are covered

2 weeks

Under the additional living expenses coverage, if a civil authority prohibits the insured from using the dwelling because of direct damage to a neighboring location from a peril covered in the insured's policy, loss would be covered for up to A dwelling policy will pay loss of use due to civil authority for a maximum of 2 weeks.

$5,000

Under the commercial crime coverage inside the premises - robbery or safe burglary of other property, what is the special per occurrence limit that applies to loss or damage to precious metals, precious and semiprecious stones, pearls, furs, manuscripts, drawings, or records? A special limit of $5,000 per occurrence applies to loss or damage to precious metals, precious and semiprecious stones, pearls, furs, manuscripts, drawings or records.

Limited to covering a servant's property while at the insured location.

Under the dwelling policy, Coverage C - Personal Property is Dwelling Coverage C is limited to covering property owned by a guest or servant while the property is at the insured location. Under a homeowners policy, the property would be covered the same while on or off the premises.

$100

Vandals do damage to glass that is a part of a covered building. Under the broad form of a building and personal property policy, each glass pate will be covered for up to Damage to glass that is a part of the covered building (excluding neon tubing) is covered for up to $100 for each plate or $500 per occurrence if caused by vandalism or one of the other causes of loss.

The loss settlement would be based on the reasonable and fair proportion that the damaged part bears to the total value of the set.

Victoria keeps a set of china figurines on top of the piano. One afternoon, Victoria's two-year-old daughter climbs up on top of the piano to play with the figurines. As she is reaching for one of them, it slips out of her hands and breaks. According to the pair and set clause, how much will Victoria's insurance policy pay? The loss settlement would be based on the reasonable and fair proportion that the lost or damaged part bears to the total value of the set.

Commercial Property Floater Risks, Liability, Domestic Shipments and Transportation Risks, Personal Property Floater Risks, Instrumentalities of Transportation and Communication

What are the 4 classes of inland marine risks

Names the points of the voyage

What does the transit clause do?

Other insurance

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 is a provision in an insurance policy that defines how the policy will respond if there is other valid insurance written on the same risk.

$10,000 for all expenses incurred during a 12-month period

What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine policy? The maximum the insurer will pay under this extension is $10,000 for all expenses incurred during a 12-month period.

Encourage insurance to value

What is the purpose of the coinsurance clause found in property insurance policies? In return for the insured's promise to insure the property to some certain percent of its value, the insurer agrees to give the insured a reduced rate per hundred on the insurance and pay partial losses in full.

Negligence

What other term is used to refer to unintentional torts? An unintentional tort is the result of acting without proper care. This is generally referred to as negligence.

General

What type of compensatory damages will pay for pain and suffering and disfigurement? General compensatory damages are for intangible elements that cannot be specifically measured in terms of dollars.

When it is in the business of manufacturing, distributing, serving, or furnishing alcoholic beverages

When does a business need to purchase a liquor liability policy? Homeowners and general liability policies provide host liquor liability coverage to insureds that entertain guests, employees, or organizations at events where liquor is served, but those "in the business of" manufacturing, distributing, selling, serving, or furnishing alcoholic beverage need to purchase liquor liability coverage.

The craft clause

Which clause provides coverage for the cargo while being transported to or from a vessel in another craft, raft or lighter?

Commercial blanket position

Which employee fidelity bond pays no more than its limit of liability for each separate occurrence no matter that several separately identifiable employees were involved in a single loss? The commercial blanket bond has a per occurrence limit meaning it will pay no more for any one loss no matter how many separately identifiable employees were involved.

Federal Employees Compensation Act

Which federal act provides benefits to injured civilians who are employed by the federal government? The Federal Employees Compensation Act provides benefits to injured civilians who are employed by the federal government - no private insurers are involved.

DP-2 and DP-3

Which of the following dwelling coverage forms would pay replacement cost for the dwelling? DP-2 and DP-3 pay replacement as long as the house is insured for at least 80% of its value on the date of loss

Excess coverage

Which of the following is NOT a P&I exclusion? Under the coverage of damage to docks, buoys, and other structures, after the limit of liability for a covered loss, the P&I policy will provide excess coverage.

It must be valued at an amount under the maximum value amount set by the state

Which of the following is NOT one of the 3 requirements for property to be eligible for FAIR plan coverage? -Property eligible for FAIR plan coverage must be located in a specific area defined by the state, -Must be considered insurable based on reasonable underwriting standards -Must not have been able to purchase coverage through the normal insurance market.

Vandalism

Which of the following is NOT one of the available additional coverages in the builders risk form? The 4 additional coverages offered by the builders risk form are debris removal, fire department service charge, pollutant cleanup and removal, and preservation of property.

Warranty

Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract? A warranty in insurance is a statement guaranteed to be true. When an applicant is applying for an insurance contract, the statements he or she makes are generally not warranties, but representations. Representations are statements that are true to the best of the applicant's knowledge.Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?

Admitted

Which of the following is the most precise synonym for an "authorized" insurer? Insurers who meet the state's financial requirements and are approved to transact business in the state are considered authorized or admitted into the state as a legal insurer.

Land on which the property is located

Which of the following is the type of property NOT covered by the homeowners policy? HO policies do not cover land on which the property is located.

Each DIC policy is an individually written contract that contains provisions unique to the particular risk that it covers.

Which of the following is true regarding the Difference in Conditions (DIC) policies? Each DIC contract is unique to the risk that it covers. No two contracts are the same. However, one of the features of most DIC policies is that the policy needs to be accompanied by a named peril property policy to provide the all-risk coverage that is intended.

None of the above

Which of the following losses is covered under an ocean marine policy? Losses due to war, strikers, riot, civil commotion, decay, deterioration, and inherent vice are not covered.

A coin collection valued at $500 lost in a fire

Which of the following losses would NOT be covered by a homeowner's policy? HO will pay up to $2,500 for silverware by theft; $1,500 for boats, motors, trailers; $1,500 for loss of trailers not used with boats; but no more than $200 for coins.

The insured damages a rented garage when he failed to stop in time.

Which of the following losses would be covered under the property damage liability coverage of a Personal Auto Policy? Damage to a nonowned structure would be covered under PD

Coverage C

Which of the following property coverages would provide protection to contents damaged by fire? Coverage C - Personal Property provides coverage for the contents of an insured dwelling.

Directors and officers liability

Which of the following special liability coverages will provide protection to managers of a corporation for claims arising from a wrongful act committed by the manager while in an official capacity? Directors and officers liability policies will pay those damages that the corporation or nonprofit entity would, under the law, be required to reimburse the individual director or officer for judgments arising from actions alleging wrongful acts.

Medical payments coverage applies per person, per accident.

Which of the following statements concerning a personal auto policy is true? Medical payments coverage is always written per person, per accident.

Coverage A is for all-risk perils, and Coverage C is for the broad form perils.

Which of the following statements is true concerning the special form dwelling policy? The all-risk coverage applied to property insured under Coverages A and B only

Additional coverage

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? The additional coverage portion of a policy provides an additional amount of coverage for specific loss expense, at no additional premium.

Severability of insurance

Which policy condition in HO policies states that insurance applies separately to each insured? Severability of insurance means that the insurance applies separately to each insured. This condition does not increase the insurer's liability for any one occurrence.

The Underwriter

Who has the rights to veto the repair facility for a vessel according to standard hull policy conditions

Often any person occupying a commercial vehicle would be covered under a workers compensation policy.

Why don't commercial auto coverage forms automatically include medical payment coverage Commercial auto coverage forms do not automatically include medical payment coverage. (Often, any person who would occupy the vehicle would be covered under a workers compensation policy.)