BBQ chicken

Which statement best describes agreement as it relates to insurance contracts?

One party accepts the exact terms of the other party's offer

The extended nonowned coverage provides protection to

Only the person(s) named on the policy

Which of the following would be covered under a building and personal property coverage form

Outdoor sign, $2,500 limit

Which of the following would be covered under a building and personal property coverage form?

Outdoor signs

When does the insurer's duty to defend a suit or claim end in a commercial general liability policy?

When loss payments equal the applicable limit of insurance

An agent received some inaccurate information, and, as a result, he publicly misstated the financial condition of another entity 12 times over a period of 3 months. If this fact is revealed, the agent may face up to

$10,000. $1,000 for each statement, 10k maximum

What is the maximum civil penalty per violation of the regulations of the insurance code that define acts that are subject to fines, or license suspension or revocation?

$5,000

Which of the following statements is correct regarding the replacement cost coverages under the BOP?

80% insurance to value

In aircraft hull coverage, all of the following perils are covered while the aircraft is in flight except?

Collision

Which of the following authorities determines whether a Cease and Desist order should be issued

Commission

Under which legal defense is there an appointment of damages based upon the degree of fault of each of the plaintiffs and the defendant?

Comparative negligence

Which of the following includes information regarding a person's credit, character, reputation, and habits?

Consumer Report

Which of the following entities is eligible for a business owners policy?

Convenience stores

In dwelling policies, automatic increase in insurance is

Coverage by endorsement

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?

Deductible

A producer's license must be renewed

Every 2 years

Which of the following is covered under a dwelling policy

Fire caused by an earthquake

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?

Implied

When reviewing a standard workers compensation and employers liability policy, the limits of coverage are described in Part one of the policy. THe dollar limits of the benefits provided are stated:

In the state workers compensation law itself

In order to reject uninsured motorist coverage, the first named insured must make the rejection

In writing at the time of application

If it appears that a person has violated an insurance law, the commission would:

Issue a cease and desist order

What type of coverage does a homeowners policy include that a dwelling policy does not

Liability

Which of the following describes an insurer's responsibility for payment under a policy, as stated in the common policy provisions?

Limits of liability

Under Commercial Crime Coverage Form K- Liability for Guests' Property- Safe Deposit Box, which covered is included?

Loss resulting from acts of employee dishonesty

Coverage A - Bodily Injury and Property Damage in the commercial general liability policy will cover

Losses due to the insured's negligence

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. What is the company guilty of?

Misrepresentation

What are the two sources for workers compensation insurance

Monopolistic state fund and competitive market

The livestock coverage form covers Which of the following losses?

Named peril coverage for death of livestock

If an insured bakery is sued because its marketing states that the products of another bakery may not be safe, which coverage of a commercial general liability policy will defend the suit?

Personal and advertising injury liability

Which of the following is an endorsement that changes the actual value settlement on personal property to a replacement cost basis?

Personal property replacement cost

If a person is using an auto with the belief that he is entitled to do so, subrogation rights under a personal auto policy would apply to all coverages EXCEPT

Physical damage

Limited Fungi, Wet or Dry Rot, or Bacteria Coverage Endorsement in HO policies applies to

Priority and liability losses

The purpose of the fair credit reporting act is to

Protect consumers against the circulation of inaccurate or obsolete personal or financial information

Which method of loss valuation is contrary to the basic concept of indemnity?

Replacement cost

An insured owns several buildings, each at a different location and insured on a separate policy. What type of coverage does the insured have?

Specific

Which clause of a hull policy says that if the insured does not take immediate steps as soon as possible to minimize the loss and protect the property from further loss the coverage may be invalidated?

Sue and Labor

Which of the following is a federal act that covers crews of ships the same as railroad workers

The Jones Act

Who is responsible for paying producer appointment fees?

The appointing insurer

A golfer slices a tee shot and the ball goes through the window of a house besides the fairway. The broken glass is paid by

The golfer's homeowners liability coverage

Each of the following may be insured under HO-3 homeowners policy except

The owner occupant of a condo unit

If it appears that a person has violated an insurance law, the commission would

issue a cease and desist order

An insurance company that is owned by the policyholders is called a

mutual insurer

What do you call a limit of liability offered as a combined single limit for all bodily injury to passengers and nonpassengers of an aircraft and property damage

smooth limit

A structure that is not inhabited by anyone and stores no property is considered

vacant

In a personal auto policy (PAP), a covered auto includes the following

-A nonowned temporary substitute vehicle -A trailer owned by the insured - A farm implement being towed behind the insured's pickup

All advertisements, regardless of their source of creation are the responsibility of the

Insurer

Which would be covered by an insured's UM coverage?

-The insured's car is hit by someone whose auto insurer is insolvent -The insured's son is struck by a hit and run driver -The insured's neighbor borrowed the insured's car and was hit by an Uninsured motorist

All of the following are true about the cancellation provision of a commercial insurance policy

-The insurer is required to give advance notice of its intended cancellation to the insured -The insurer may cancel the policy by mailing or delivering written notice of cancellation to the first named insured -The insured may cancel the policy at any time by mailing or delivering written notice of cancellation to the insurer

All of the following are true regarding the cancellation of a policy

-The insurer may cancel the policy by mailing a written notice to the first named insured only -The insurer is required to give advance notice of its cancellation to the insured -The insured may cancel the policy at any time by mailing a written notice of cancellation to the company

When does HO personal property coverage Cover?

-The spouse's personal property -The insured's personal property in another country -The resident's son's personal property

Which of the following exposures are covered under HO policy

-Unscheduled personal property damage -Bodily injury to others -Personal liability

The businessowners liability coverage form will cover medical expenses incurred and reported within what maximum time period after the accident?

1 Year

Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to

10 years

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 Coverages

Which of the following is the closest term to an authorized insurer?

Admitted

Coverage D additional living expenses is intended to

Allow the family to maintain their normal standard of living

The inspections and surveys in a businessowners policy

Allows the insurer the right to inspect the insured's premises

Which of the following is indicated on certificate of insurance?

Amounts and types of insurance

Which of the following statements is true concerning a workers compensation and employers liability policy

Exposures in states listed on the information page covered

Which federal act provides benefits to injured civilians who are employed by the federal government?

Federal employees compensation act

If an insurance policy has the additional coverage provision, how does it affect the policy premium?

There is no additional premium

The business income coverage form covers consequential loss of business income that occurs when a business must suspend operations because of a direct loss. Which of the following terms best describes the nature of this type of coverage?

Time element

What was the purpose of the Motor Carrier Act of 1980?

To establish financial responsibility requirements for interstate motor carriers

An agent tells an insured that if he replaces his current insurance policy with a newer one, his dividends will be higher and his premiums will be slightly lower. The policy, however, would not offer either one of these things. What type of misrepresentation is being committed?

Twisting

What is the business auto coverage territory for?

USA and its territories, Canada, or worldwide private passenger hired autos

When an insured's gardener was spraying weeds in his lawn, he failed to notice that the wind was drifting the spray into the neighbor's yard where he damaged their flower bed. The insured was found to be legally liable for this damage. This is an example of

Vicarious Liability

In order to satisfy the Pennsylvania Motor Vehicle Financial Responsibility Law, an auto liability policy issued for delivery in the state must have bodily injury and property damage limits not less than

$15,000/$30,000/$5,000

An insured has $5,000 of medical coverage under a personal auto policy at the time of a covered accident. The insured and 3 passengers are injured. The insured's medical expenses are $8,000. The first passenger's total $4,000, the second passenger's total $6,500, and the third passenger's total $1,200. How much will the policy pay under the medical payments coverage?

$15,200

An insured has $5,000 of medical coverage under a personal auto policy at the time of covered accident. The insured and 3 passengers are injured. The insured's medical expenses are $8,000. The first passenger's total $4,000 the second passenger's total $6,500 and the third passenger's total $1,200. How much will the policy pay under the medical payment?

$15,200

The insured's home is covered by an HO-3. Two years ago, the insured bought the home for $58,000. Today, its replacement value is $60,000. How much coverage A does the insured need to qualify for the replacement cost coverage?

$48,000

Insureds covered under a mobile homeowner policy move their mobile home to prevent it from being damaged by a fire. What is the maximum amount the policy will pay for this?

$500

An insured has a personal auto policy with both comprehensive (other-than-collision) and collision coverage. His car is stolen and recovered five days later. If the insured claims transportation expenses of $20 per day, how much will his policy pay?

$60, starts after 48 hours

With regard to homeowners Section II, Which of the following meets the definition of insured location?

-A secondary residence acquired by the insured during the policy period -A meeting hall rented to the insured to hold a reception for his daughter's wedding -A cabin rented to the insured for use on a family vacation

Homeowners policies consider all of the following insured locations

-An individual cemetery plot -The hotel ballroom rented by the insured for a family reunion -Land owned by the insured on which his new home is under construction

All of the following are conditions commonly found in the insurance policy

-Appraisal -Cancellation -Subrogation

Which of the following would be considered an exception to the national do not call list

-Calls by or on behalf of tax-exempt nonprofit organizations -calls for which the consumer has given prior written permission -calls which are not commercial or do not include unsolicited advertisements

Section III of the business auto policy provides physical damage coverage. All of the following are physical damages that may be selected coverages

-Collision coverage -Specified causes of loss coverage -Comprehensive coverage

Section III of the business auto policy provides physical damage coverage. All of the following are physical damages that may be selected coverages:

-Comprehensive coverage -Collision coverage -Specified causes of loss coverage

Coverage C in homeowners policy forms offers all of the following

-Coverage for property located at another residence premises -worldwide coverage -coverage for property of other

All of the following statements are True about earthquake coverage in property policies

-Coverage is by excluded by most property forms -Coverage may be added to by endorsements -Coverage can be purchased separately for an additional premium

All of the following statements regarding personal property coverage in the HO program are correct

-Coverage on money limit is $200 -Personal property coverage is usually 50% of the coverage A limit -Earthquake coverage may be added by endorsement

Which of the following components is part of a policy structer

-Declarations -Additional Coverage -Definitions

An insured purchases a Difference in Conditions policy. It may contain all of the following characteristics

-Flood and earthquake coverage -exclusion for named perils -no coinsurance clause

The declarations section in a homeowners policy provides all of the following information

-Insured locations -Basic underwriting information -Amount of a deductible applied to a loss

Which of the following statements are true regarding a personal umbrella liability policy?

-It may cover certain exposures not provided under the primary layer -It may require the payment of a self-insured retention -It provides excess liability coverage over underlying personal liability

Which is true of workers compensation coverage?

-It offers rehabilitation benefits -Medical payment benefits are unlimited -it offers death benefits

All of the following are requirements for producer license renewal

-Record of fingerprints -up to date continuing education -renewal fees

Which of the following actions constitutes false advertising?

-Representing an insurance policy as a share of stock -Using names that disguise the true nature of a policy -Misrepresenting the terms of a policy

Under a commercial general liability policy, which of the following is considered mobile equipment:

-The department of transportation's resurfacing equipment -The bulldozer used by an excavating company -A combine used on a farm

All of the following conditions must exist for injury or damage to be included in the products and completed operations hazard of a commercial general liability policy

-The injury or damage must arise out of the insured's product or work -The injury or damage must occur after the insured has released physical possession of the product to another -The injury or damage must occur away from the insured premises

Which of the following risks would be eligible for coverage under a dwelling policy form?

A duplex that is occupied by two families, each of which have a bedroom rented to a boarder

Which of the following would most likely be accepted for coverage under the FAIR plan

An insured who can't find an insurer to cover his/her property because of its location

In farm insurance, Coverage I - Personal and Advertising Injury Liability for suits alleging personal injury is most similar to the coverage found in which coverage form?

General Liability

When an insured has multiple autos insured, what effect does the stacking of UM and UIM coverage have in terms of the benefits available?

Increases the limit of bodily injury coverage available to an insured to a total equal to the sum of the bodily injury available on all autos insured

Which of the following endorsements is used by individual business owners who use company vehicles rather than purchasing a personal vehicle?

Individual named insured

Which of the following symbols in a business auto policy indicates that coverage for newly acquired vehicles applies if the insurer already covers all autos owned by the insured?

Symbol 7

When does the federal emergency flood insurance program go into effect?

When a community applies for the program

Which of the following is an example of a physical hazard

diabetes

Which of the following injuries may be covered under Coverage C- Medical Payments of a commercial general liability policy?

injuries to a member of the general public that occurs on premises

The other states' insurance section of a workers compensation policy provides coverage

only for those other states listed in the policy