California Adjuster Exam Prep
Under a standard ISO homeowners HO3, real property and personal property are covered for the perils of:
"all risk" coverage applies to real property. Broad form named perils coverage applies only to personal property an applicant would like to buy a personal umbrella policy:/ your insurer may requires that he maintain underlying liability coverage by carrying auto and personal liabitly coverage
Under a standard (ISO)HO3, real property and personal property are covered for the perils on
"all risks", coverage applies to real property , broad form named perils coverage applies to personal property
A personal auto policy (PAP) insured's car was a total loss when the car was stolen and wrecked. The insured has the following coverage': liability, medical payments, and "other than collision". Her PAP
"other than collision" will pay for the loss
What are the three limits of liability coverage that are listed in the Commercial Umbrella Policy?
"per occurrence" limit, "personal and advertising injury" limit
X is in an accident with Y. X suffers $5000 of damage but it is determined that X is 60% responsible for the accident. How much would X receive under CONTRIBUTORY negligence rules?
$0
The PAP collision deductible is $1000 and other than collision deductible is $500. How much would the insurer pay for an accident involving the overturn of one vehicle resulting in $2000 of damage
$1000
The insured is covered under a DP-I dwelling form with coverage on the dwelling in the amount of $100k. He has a detached garage valued at $10k. Both structures are destroyed by a fire. What is the total amount recoverable under the policy?
$100k
Lee has a personal auto policy with $250 deductible collision coverage and $100 deductible other collision coverage. He runs a stop sign and hits another car. There is $1300 worth of damage to his(the insured's) car. How much would the insurer pay the damage to lee's car
$1050
Under the BOP, how much is paid for pollution clean-up and removal in case of a covered loss?
$10k
All of the following are incorrect regarding the CAARP,EXCEPT
$15,000/$30,000/$5,00 are the minimum liability limits required under this plan
What are the minimum motor vehicle policy limits to satisfy automobile financial responsibility in California?
$15/$30/$5
An apartment house is worth $500,000. The owner insurers it for $300,000; the policy has an 80% coinsurance clause. There is a $200,000 loss. The insurer will pay
$150,000
What is the limit for damage to a non-owned trailer under the PAP?
$1500
Very often the deductible amount under the collision and other than collision sections of a personal auto policy are different. With this in mind, what would be the amount that an insure would pay for a loss under the following circumstance:$500.00 dedecutible for other-than-collion, and $250.00 for collision losses? An accident occurs when an insured runs a red light and collides with another car, causing $1750.00 worth of damage to his vehicle
$1500.00
A farmer purchase crop hail policy with a limit of $10k on a 5k acre sustaining a 30% loss. Coverage with a 5% minimum loss before policy pay.
$1500; Merely a threshold not a deductible
In an insured has n Ho3 policy, with replacement cost coverage on the building, what minimum amount must the insured carry to ensure that he has dwelling--$200,00 and other structure --$40,000 replacement cost coverage for a partial loss to ensure the dwelling or other structures if the replacement cost is $10,000 on the dwelling and $32,000 on the other structures
$160,000 on the dwelling and $32,000 on the other structures.
If an insurer pays an insured $25000 in lost wages,$45,00o for physically visits and hospital cost and $15,000 for physical therapy treatments and later finds out that the claim was faudlent the insured may be fined as much as 000 in lost wages,$45,00o for physically visits and hospital cost and $15,000 for physical therapy treatments and later finds out that the claim was faudlent the insured may be fined as much as
$170000
An insured's home is covered by the DP3 form. The policy provides $20k in coverage on a home that would cost $50k to replace. When high winds destroy the roof, it is determined that it will cost $2k to replace it. Assuming the actual cash value of the roof is $750, how much will the insured collect for this loss?
$1k
Special limit that applies to damage to TV antenna and satellite dishes and outdoor radio
$1k
The standard deductible for the regular program under a flood insurance policy is:
$1k
How much coverage, if any, is available under HO3 for landlord's furnishes?
$2,500
What is the limit per day for a transportation expense in an unendorsed personal auto policy in the event of theft, after it is reported and automobile is not returned within 48 hours of theft
$20
Under the PAP, the insurer will pay for transportation expenses up to which of the following amounts?
$20 per day; $500 max
What is the limit for sound reproducing equipment under the coverage endorsement for excess sound reproducing equipment, audio, visual and data electronic, tapes , record, disks and other media
$200
The insured carries a Homeowner's Policy with an underlying liability limit of $300k as required by the insured providing the Personal Umbrella Policy. The umbrella limit is $1M with an SIR of $10k. After the policy is issued the insured reduces the limit to $100k and does not notify the insurer. The insured's dog bites a child causing severe facial injuries. The insured is sued for $300k and the court awards this amount. What will the insured have to pay before the Personal Umbrella Policy participates in the claim?
$200k
A building valued at $100k was insured for $80k with a policy containing 80% Coinsurance clause. Disregarding any deductibles, what would the company pay on a $20k loss?
$20k
The insured has purchased a DP3 form to cover his dwelling that is valued at a replacement cost of $100k. He insurers it for $60k and has a $30k fire loss. What can he expect to be paid?
$22,500
Under the regular program a national flood insurance policy will insure single family residences for up to:
$250k
An auto liability with a single limit of $30k would pay which of the following amounts in the event of a $10k loss to the insured vehicle and a $25k bodily injury settlement to a third party?
$25k
The maximum amount of coverage provided for spoilage to covered property caused by contamination under an Equipment Breakdown policy is:
$25k
Under California financial responsibility law the minimum financial responsibility for accidents that involve several people injured in one accident, is
$30,000
An auto liability policy with split limits of 15/30/5 would pay what maximum amount in the event of a covered bodily injury loss to three people?
$30k
Coverage for personal property under an HO4 with no deductible. Provide coverages for personal property for the insured while vacationing in Europe: the bed and breakfast inn. The hotel they are staying at burns down, the insured's chothing and suitcase are destroyed from the fire: clothing and suitcase--$ 20,000 (replacement cost), jewery--$ 20,000(replacement cost). Additionally , all of this property has depreciated by 20% in value. What will the insurer pay under this policy?
$32,000
The insured carries a CGL Policy with an aggregate limit of $500,000 and a per occurrence limit of $100,000 and a Personal and Advertising Injury limit of $100k. Two separate claims are filed. A claim for bodily injury in the amount of $150k occurs and a separate personal injury claim of $50,000 occurs. How much will be left of the aggregate limit if these claims are paid?
$350k
As a result of an auto accident, the insured sustains bodily injury worth $50k. The responsible party carries auto liability insurance in the amount of $15/$30/$5. The insured's $100k underinsurance coverage would pay:
$35k
Under the emergency program, a national flood insurance policy will insure single family residences for up to
$35k
If the limit of liability on a structure are $75,000 and the structure is worth$125,000, how much would be owed on fire loss of $50,000 if the policy has an 80% coinsurance requirement (disregard any deductibles?)
$37,500
If the limit of liability on a structure are $75,000 and the structure is worth$125,000, how much would be owed on fire loss of $50,000 if the policy has an 80% coinsurance requirement(disregard any deductibles?)
$37,500
The Now Company carries a special BOP policy with a liability limit of $500k. The company is involved in an occurrence causing $200k property damage. The total amount payable as damages under the policy is:
$400k
What would an insurer likey pay if the following were the details surrounding an accident for which the insured was at fault and had bodily injury policy limits of $25,000 per person and $50,000 per occurrence? Three people injured:#1-$11,00,#2-$26,000 and #3-$12,000
$48,000
Property and casualty losses must exceed for any one event to be certified as an Federal Terrorism Act
$5,000,000
A PAP contains the following limitations; $30,000person and $50,000/accident for bodily injury. An accident occurs that injures three people resulting in a number of lawsuits. The outcome of lawsuits found the insured to be liable and responsible for the following damages: $10,000 for the first person; 13,000 for the second person and $35,000 for the third person; what will the policy pay?
$50,000
In lieu of suspending or revoking the licensee of an adjuster for a violation, the Commissioner may impose a civil penalty not to exceed:
$500
The deductible under the revised Commercial Property form is:
$500
Calculate the amount the insurer would pay, under a PAP, for a loss in the following circumstances, with the following coverage limit: collision coverage--$500 deductible. Other- than collision-- $50 deductible; damage to the insured's vehicle-$1050 after insured misses a stop sign and hits another vehicle
$550
An auto liability policy with split limits of $10/$20/$5 would pay how much in the event of a $10k loss to the other person's damaged vehicle?
$5k
Mr. Jones purchases a policy on the dwelling in the amount of $40k. His wife also purchases a policy in the amount of $20k unbeknown to her husband from another company. In case of a $5k loss, what will her company pay on the loss?
$5k
Threshold of receipts requiring custom farm endorsement
$5k
Determine the actual cash valuing the following situation: original price of office when purchased(8 years ago-$9,000 depreciated amount at time of fire --$5,000; current replacement cost --$12,000
$7,000
A is an accident with B. A suffer$10000 of damage but it is determined that A is 25% responsible for accident. how much would a receive under COMPARATIVE negligence rules
$7500
Mary has an HO3 policy with replacement cost coverage on the insured buildings. The cost of replacement on the dwelling is $100,000, and the other structure (a garage) is $20,000. To be certain of replacement cost coverage on a partial loss to either structure, she must carry a minimum of
$80,000 on the dwelling; $16,000 garage
Mary has an HO3 policy with replacement cost coverage on the insured buildings. The cost of replacement on the dwelling is $100,000, and the other structure( a garage) is $20,000. To be certain of replacement cost coverage on a partial loss to either structure, she must carry a miniumum of
$80,000 on the dwelling; $16,000 garage
A water pipe has burst and the insured has suffered floor and ceiling damage in his two-story home. He is covered under a DP2 form with dwelling and contents coverage. The building codes now require that special piping installation is needed at an additional cost of $500 over and above the normal cost to repair. His dwelling limit is $100k. What will the policy pay if the normal cost to repair is $400?
$900
How much coverage, if any, is available under HO3 for landlord's furninshgs?
...$2,500
Which of the following events within the last three years would disqualify an individual from receiving a good driver discount?
.An at fault accident involving minor bodily injury
A homeowner has a fire that totally destroys a $200 typewriter before the fire is extinguished, if the fire coverage on contents contains a $250 deductible, the insurer will receive:
0
An insured has a personal auto policy and did not pay the initial insurance premium when it due. The insurer cancels the policy for non- payment. How much days' notice must the insure give?
10 days
What is the minimum number of days that an insurer must give an insured, prior to canceling a policy for non-payment?
10 days
The limited Mexico endorsement applies to trips to Mexico with duration of
10 days or less
Within how many days after receiving notification of a claim must an insurer start an investigation?
15 days
In case of a loss, how many days notice does the insured have after notification of a claim to submit the claim to the underwriters of the Ocean Marine coverage?
180 days
Registration of a non licensed adjuster in an emergency situation is valid for:
180 days
• All of the following factors can be used according to the insurance code in California to determine auto insurance policy rates in addition to any other factors the insurance commissioner is allowed to adopt; and include by regulation
1and 3 only
Before legal action may be taken against an insurer, an insured must have complied with all terms of the policy. Any legal action must begin within___following a loss.
2 yrs
What is the minimum discount percentage for the "good driver" discount?
20%
An applicant for an independent adjuster licensee must file with Commissioner a surety bond executed by a surety company authorized to do business in California in the sum of:
2000
An adjuster receives receive an inquiry from the Insurance of Department. How soon must the adjuster to respond?
21 days
• The continuing education requirements that a fire and casualty broker-agent must fulfill as required by the DOI are which of the following?
25 hour during each twelve month period for the first four years the licensee is licensed
• What is the minimum number of required continuing education hours that a fire and casualty broker-agent must meet?
25 hours each 12 month period following the date of the original license if license after 1/1/92
Under the BOP, up to how many years can the insurer request the insured's books and records?
3 years
Under the PAP Medical Payments, the time limit for incurring medical expenses is:
3 years
A licensee must notify the department of any change with her address within ___ of change.
30 days
Businessowners policies provide "Preservation of Property" coverage when property is removed from the premises to protect it from a covered cause of los. The coverage will apply at other locations for up to:
30 days
The insurer decides not to renew an insured's personal auto policy. How much notice must the insurer provide to the insured
30 days
The normal waiting period for coverage under a flood insurance policy is ___ from the date of the application and premium are sent to the NFIP.
30 days
Watercraft excluded from coverage uner Section II of the Homeowner Policy includes all of the following, except:
30 foot sailboat rented to the insured
Coverage D - Loss of Use provides which of the following percentages of Coverage A under the H0-2?
30%
An apartment buildings may be covered by a Businessowners Policy (BOP) if it does not have more than:
35k square feet
Under a personal auto policy. If a newly acquired auto is to replace the covered auto with liability coverage only, how long does the insured have to request collision coverage?
4 days
The insurer will pay transportation expenses under the PAP beginning____after a theft of the insured's automobile.
48 hours
Under the H0-3, what percentage of the amount of insurance written for Coverage A applies to Coverage C for a one or two family dwelling?
50%
Leased vehicles can be covered under the PAP if they are leased for a minimum of:
6 consecutive months
in an unendorsed claims-made general liability policy how long does an insured have to report a claim which occurred during the policy period
60 days
Under a value reporting form, if the insured has made no reports as required, what is the most that will paid in the event of a loss?
75% of the limit
Automatic coverage is provided for newly acquired equipment for:
90 days
The loss exposures in the following situations resulting in bodily injury or property damage claims are all excluded under a commercial general liability policy EXCEPT
A Patron of the insured business is injured by an employee of the insured, at the customer's residence. The employee was at the residence to perform the carpentry services that the business provides
The insured has transported a portion of his property to an exhibition trade show. It is destroyed by a fire. What coverage would apply?
A limit of $10k would apply to cover the loss
The concept of "pure risk" involves the possibly of chance of which of the following?
A loss only
The term "proximate clause " is best defined by which of the following?
A negligent act that causes bodily injury or property damage that follows a sequence of uninterrupted, but related chains of events
A Homeowner Policy can be purchase by:
A person buying a home under the installment plan, An individual who owns a home under the course of a construction, The owner of a seasonal welling who is insured under a Homeowner Policy for her primary dwelling
Which of the following best characterize a speculative risk?
A situation that offers the possibility for a loss or gain
Under the BOP, which type of business would not normally be eligible for coverage?
A small manufacturer
Incorporate insurance company with its capital divided into share is the definition of
A stock company
In crime insurance, all of the following situations would be considered theft, except:
A store's year end inventory coming upp short by 5%
Which of the following would be covered under a PAP?
A three wheel vehicle used in a medical emergency
An uninsured motorist vehicle under the PAP includes all of the following except:
A vehicle newly acquired by the named insured
All of the following are considered an uninsured motor vehicle according to policy definitions found in a personal auto policy, EXCEPT
A vehicle that is self-insured because it is owned by a state agency
a common formula that is used to establish cash value is
ACV=replacement cost minus depreciation
Under tort law a corporation can be subject to a claim for legal liability on the basis
Absolute liability
Which of the following commercial inland marine coverage form covers sums due the insured from customers which are uncollectible due to loss or damage of records?
Account Receivable
Which of the following is not covered property under a Commercial Property form?
Accounts, bills and currency, Animals not held for sale, Cost of foundations
Common carriers are responsible for damage to customer goods they transport except for damage resulting from:
Act of God
All events are considered acts of terrorism EXCEPT
Acts of riot and civil commotion
Cost of replacement minus depreciation
Actual cash value
Under the Commercial Building and Personal Property form, coverage for the "building" includes:
Additions and extensions to the building
Which of the following relieves the financial burden on the claimant by making certain payments to the claimant even before the claim can be negotiate?
Advance payment
The insured's building is protected by a sprinkler system. The system develops a problem and is inoperative. When does the insured have to report to the company the fact that the system does not work?
After 48 hours
The Earthquake and Volcanic Eruption endorsement provides coverage:
Against earthquake from volcanic eruption for commercial buildings and other covered property when used in conjunction with another Cause of Loss forms for damage caused by shocks that occur within 168-hours after policy expiration if these shocks began during the policy period
All are considered acts of rebating, EXCEPT:
Agent send holiday greeting cards to all clients on his mailing list
Under a Surety bond, the "Principal" is the party who:
Agrees to fulfill an obligation
Insurance contract that is contingent on an uncertain event is referred to as
Aleatory
Under the Business Auto Policy, each of the following is true about classification of "covered autos", except:
All classes of newly acquired autos are automatically covered
What type of policy protect against loss from any peril except those that are specially excluded
All-risk or open peril
Items that are paid on replacement cost is defined as the
Amount to replace the damage property without a deduction for depreciation
In crime insurance, a "custodian" is described by which one of the following?
An authorized person having care of insured property inside the premises
Which of the following individuals is likely to have a valid workers compensations claim?
An employee injured while performing an operation for which he had not yet been trained
Under a Fidelity Bond which of the following parties receives protection?
An employer
A written provision that modifies the provisions of the original contracts is know as
An endorsement
An insured's loss reserve for a claim is
An estimate or the amount that the insurer will pay
An uninsured motor vehicle includes:
An insured vehicle whose insurer denies coverage
The ______ is an ideal form of protection for the frequent shipper of goods.
Annual transit policy
An open peril policy protects against the loss from
Any peril, other than those specifically excluded
All of the following are considered insureds under the PAP, except:
Any person using an auto not owned by the insured
what of the following is not considered an intentional tort?
Auto accident
A Basic Extended reporting period is provided under the Claims-Made CGL:
Automatically without additional charge
Risk management technique that eliminates a loss exposure and reduces the chance of loss to zero is
Avoidance
Considered to be "small grains" in crop insurance
Barley
Volcanic action is covered under which of the following Cause of Loss forms?
Basic and Broad
Which of the following is the reason that an insured should not be making any kind of profit as the result of an insurance claim/loss being paid but rather, the payment should restore the insured to the financial status that existed prior to the loss with no chance of any type of profit.,
Basic principle of insurance
Sinkhole collapse is covered under which of the following cause of Loss forms?
Basic, Broad, Special
Sprinkler leakage is covered under which of the following Cause of Loss forms?
Basic, Broad, Special
Provides written evidence of coverage pending issuance of policy?
Binder
Under Coverage C of the Homeowner Policy, which of the following categories of property receive limited dollar coverage?
Boats, trailers, fur $1500 is the limit
NOT a factor in determining negligence on the part of insured?
Breach of protection
Which of the following losses would be covered under a crime's policy's "Inside the Premises Robbery or Safe Burglary of Other Property" coverage?
Broken windows on the insured premises caused by a burglar
What is generally excluded on the Condominium Commercial Unit-Owner form cover the same property, how will the loss be handled?
Building coverage
Which of items of real property under HO3 are valued on an actual cash value basis?
Built- in appliance
Which of the following statements is correct?
Business Auto Policy uses 10 symbols to define covered vehicles, Symbols 30 & 31 apply to the Garage Policy
the insurance department has been advised that an agent is guilty of an insurance code violation. The commissioner will:
Call for a hearing
Under the "Inside the Premises Theft of Money and Securities" insuring agreement of a Crime Policy, which of the following situations would NOT be covered?
Cash that is taken by employees
Which of the following is not a Business Auto endorsement?
Change Other Driver
Method of requiring insured to insure at least 80% of value covered in commercial property
Coinsurance clause
What causes is commonly used to requires purchase insurance close to the value of the property
Coinsurance clause
A car, travelling at high speed, skids at a turn and rolls over. The damage incurred would be covered under which of the following personal auto coverages?
Collision
An insured carries a Commercial Auto Policy. He leases a vehicle in Germany and has an accident. Which policy might respond to provide coverage on a worldwide basis?
Commercial Umbrella Policy
Employer's liability coverage in workers compensation insurance provides coverage for:
Common law claims against employer by the enmployee
Involved at fault accident and other party well. Method to determine damage due to each party based on percentage known as
Comparative negligence
which of the following is considered special damages
Compensation for time away from work
A contractor has borrowed funds from a bank in order to finance a construction project. A surety bond which guarantees the lender that the contractor will use the borrowed funds to finish the contract free and clear of liens is known as:
Completion bond
A deer crashes into the side of the insured's ar. Which of the following PAP coverages would cover this damage?
Comprehensive
A stolen car is covered under which of the following personal auto coverages?
Comprehensive
Damage to a windshield by a bird would be covered under:
Comprehensive
Part of the policy that establishes limits upon the insurer and the insured with the insurance policy
Conditions
Insurance company is author of policy and insured buys what is offered by company and accept it, is called:
Contract of adhesion
Insured contracts include all of the following except:
Contract with a business to do the service work
XYZ Road Construction Company has a fleet of equipment that consists of bulldozers, backhoes, and road scrapers. The owner desires physical damage coverage to cover the equipment. Which of the following types of insurance contracts would be appropriate to provide the proper coverage?
Contractor Equipment floater
Considered coarse grains
Corn
What is the purpose of freight insurance?
Cover shipper fees
Which of the following statements regarding the Equipment Dealer's Form is incorrect?
Coverage applies on a world wide basis
A steam boiler has been inspected and found to ne in serious need of repairs. The inspector "red tags" the item. This means:
Coverage is suspended until repairs are made
Under the Homeowner Policy, theft coverage does not cover theft of property:
Covered by tenants coverage
Not included in the declarations section of an insurance contract?
Covered perils
The BOP policy form does not cover:
Cracking of a steam boiler
A coverage that cannot be added to the farm insurance policy?
Crop coverage
In crime insurance terminology, a salesperson having possession of the insured's property on-premises is known as a:
Custodian
You are the agent for an insured that carries both a homeowners policy and a personal auto policy(PAP) with you through the same insurance carrier. The insured is driving home,(in the auto you have insured),after purchasing a brand new big- screen TV,VCR, stereo, CD
DVD player all in one unit. He collides with a parked car and destroys the new TV. How would this loss be covered?/ the homeowners policy-personal property coverage
What course of action does a party to a contract have if the other party is found to be breach of that contract
Damage for breach, reasonable attorney fee and cost
The PAP liability coverage excludes all of the following, except:
Damage to property of others due to the insured's motor vehicle negligence
Which of the following losses is not covered by either the personal auto policy collision or other than collision coverage?
David leaves his personal (non-business) laptop computer in his car overnight. Car is parked in the driveway outside of his home. Computer is stolen from his
The part of the policy that states the amount of coverage the insured property policy period is
Declaration
Under an umbrella policy, an insured has a retention limit which is a/an:
Deductible
The Commercial Inland Marine coverage form "valuable papers and records" includes coverage for:
Deeds, drawings, and maps, Books, files and mortgages
The process where by a mutual insurer becomes a stock company is called
Demutualization
States have adopted statuses regarding the claims adjusting. To avoid unfair treatment to a claimant the adjuster must not:
Deny the claim until a fair and prompt investigation has commenced
Mr. Simpson owns a dwelling in a rural area close to a small wooded area. He is covered under a DP3 form. A deer sees its a reflection in a picture window and jumps through and enters the dwelling causing severe wall and floor damages. Some of the furniture is damaged and must be replaced. He is covered for $100k on the dwelling and $50k on the contents. Which of the following would apply to this loss?
Deny the contents claims and pay the dwelling loss on a replacement cost basis.
All of the following are covered under Coverage A of a Homeowner Policy, except:
Detached garage
A loss that is a direct consequence of a particular peril is called an
Direct loss
A reduction in value of property that results immediately from damage to the property is know as
Direct loss
An insurance company that is formed and domiciled by the state is example of:
Domestic insurer
Which are the characteristics of negligence
Duty, breach, proximate cause, damages
Joseph Young, who is insured under a Business Auto Policy, is involved in an accident. He and the insurance company disaghgree on the amount to be paid for the damage to his car. Under the terms of the policy, which of the following statements is true:
Each party engages an appraiser, and the appraisers will select an umpire
The Commercial Inland Marine coverage form "jeweler's block" excludes loss resulting from:
Earthquake, shortage found upon taking inventory, unexplained disappearance
All of the following are areas that market regulation cover EXCEPT
Employee training
An innocent party relies on certain statements made by the adjuster and is damage as a result. The guilty party may be legally prohibited from asserting that the fact does not exist because of:
Estoppel
Which of the following is NOT a claim settlement option for liability claims?
Excessive amounts claimed
Under a special cause of loss form if a landslide is caused by an unnatural flow of water due to improper grading, the loss is,
Excluded under the concurrent causation
A characteristic of an contract where both parties must perform acts to make contractual enforceable
Executory
The insured has suffered a boiler explosion and desperately needs a replacement as soon as possible. What coverage would respond to assist the insured?
Expediting expenses
Which is not considered an unfair practice?
Failing to honor an uncovered claim
the responsibility of the federal government regulating the insurance industry is limited to:
Fair labor standards and antitrust matters
To determine the fact actual cash value of commercial bulding for coinsurance purposes uses
Fair market value
The cover the farmer should have, should he had been responsible damaging a private passenger carin roding his farm tractor.
Farm liability
Definition of custom farming:
Farming for others
Which of the following is the type of report indicates the initial results of a claim investigation?
Field report
What of the following is NOT one the three main types of insurance losses
Financial loss
Medical Payments under General Liability policies include:
First aid at the accident scene, Surgical expense, Funeral service
An insured has suffered a fire loss to his/ her dwelling. This insured is which party to the claim?
First party
A Homeowner Policy may be cancelled by the insured:
For any reason at any time
For how long must an adjusting firm maintain its claim files?
For current year and 4 prior years
Which of the following is not a claim settlement option?
Forcing the insure to sue by offering less than the claim is worth
If the civil authority blocks access to the insured's premises because of a covered peril that has damaged a building down the street, what period of time will he Business Income forms pay the insured for loss of income at his/her premises?
Four consecutive weeks
All of the following insurance company are private insurers; EXCEPT
Fraternal insurance company
Which of the following results in immediate payment when the claimant signs a release relinquishing his or her right to sue?
Full Release Settlement
All of the following are excluded under the Commercial Building Property form, except:
Furniture and fixtures
Property used to service the building, A heating system under the Commercial Building and Personal Property form, coverage for "business personal property" includes:
Furniture, Machinery, Stock
The BOP is designed to cover all of the following, EXCEPT:
Gas stations
Routinely delays all claim payment for 90 days and in doing so
Guilty of unfair claim settlement practice
An apartment dweller would be in the market for a:
H0-4
A condominium owner-occupant would be in the market for a:
H0-6
Which of the following homeowner forms provides the least amount of perils coverage?
H0-8
What type of homeowners's policy provides open peril coverage?
H03
The applicant wants a homeowner policy that has open peril coverage on his home(building structure) assuming he is eligible for the policy, which would you recommend?
HO3
The type of homeowners contract that should be considered and then purchased by one of your propectives insured's, who is a tenant renting 2,500sq foot 2 story house is which of the following
HO4
Which homeowners form is best for use on a brand- new single family dwelling?
HO5
Which of the following would be used for a new single-family dwelling?
HO5
Jack, a condo owners, wants a fire and allied lines coverage for personal property, liability coverage for him and family members, and protection for assessments or damage for the building structure and other common areas. Which homeowners form would you recommend
HO6
Jack, condo owners, wants a fire and allied lines coverage for personal property, liability coverage for him and family members, and protection for assessments or damage for the building structure and other common areas. Which homeowners form would you recommend
HO6
Which type of policy would provide both property and liability covergage for the owner of a condonminum as well as for assessments following damage to the building and other structures?
HO6
An adjuster's license will usually be revoked for which of the following reasons:
Having been convicted of a felony
A hired painting contractor leave brushes and rags used for painting materials in a small storage area. An example of:
Hazard
The personal liability coverage for Mr. Jones Homeowner Policy would cover Jones if:
He negligently bumped into his son while running to work
Under the BOP, what does the hired and non-owned auto liability endorsement cover?
Hired and non-owned auto coverage if the insured is not covered by a commercial auto policy
If a boiler explodes and damages a building, contents and property of others, what coverage would apply?
If proper limits are in place the entire loss is covered
What is the effect of "concurrent causation" exclusion under the "cause of loss-broad form in a commercial property policy?
If there is a loss resulting from two or more perils that occur at the same time to cause a loss then is no coverage is any of the perils are excluded
In the state of CA no rate will remain in effect if it is considered to be any of the following, EXCEPT
Impartial
Products Liability can involve:
Improper product design, Deceptive advertising, Improper assembly of the product
According to the Business Auto definitions, an "accident":
Includes continuous or repeated exposure to the same conditions
Contingent liability refers to liability that arises out of the work of their work done by:
Independent contractors
Savage Construction Company has delivered and installed a large boiler in a commercial building. The owner has not yet accepted nor paid for the work. What type of policy should Savage Construction purchase to cover the work until accepted?
Installation floater
The possibility of financial loss resulting from the ownership of property is know as
Insurable interest
What factor support the principle of indemnity?
Insurable interest
All powers and duties exercised by officers and employees of the California Department of Insurance are under the responsability of:
Insurance Commissioner
Which advisory organization(s) develop forms for the standard market?
Insurance service office and American association of insurances
Which part of the insurance contract summarize the major promises of the insurer
Insuring agreement
The Homeowner Policy excludes which of the following types of personal property?
Items that are more specifically covered by other insurance
In crime insurance, which of the following individuals is NOT considered to be a "custodian"?
Janitor
In Commercial Crime coverage, the "Inside the Premises Theft of Money and Securities" insuring agreement would cover loss of all of the following, except:
Jewelry
The named for a commercial package policy is " Jill koslin and Edward koslin DBA coastline photo shop" under the terms of the common policy conditions of the commercial package policy, who is responsible for the premium payments?
Jill
Kim's car is insured with a personal auto policy. The coverage includes medical payments with $2000 limits, which of the following is true statement about the medical payment coverage for necessary medical expenses?
Kim gives her neighbor ride to the store in the insured car. She has an auto accident in which they each incur over $2000 in medical expenses. The maximum that Kim's policy will pay is $2000 to her and $2000 to her neighbor
Protection and indemnity coverage contained in an Ocean Marine policy covers:
Liability against injuries to seamen, Injury to stevedores, longshoreman and harbor workers, Cargo, if lost or damaged through negligence
Which of the following types of loss would result in a claim for monetary damages due to injury to another or damage to another's property
Liability loss
What is the type of loss exposure that would include land and property attached to it
Liability loss exposure
A clause in property and casualty contracts states if a policy or endorsement forms are broadened and no additional premium is required then all existing similar policies or endorsements will be construed to include the broadened coverage?
Liberalization
Which of the following is not essential in determining if a salvage award is to be made?
Life-saving efforts
A personal auto policy is written for Lisa providing liability coverage. Which of the following auto liability situations would not be covered unless Lisa has an endorsement attached and paid an additional premium
Lisa destroys a mailbox while driving a (non-owned) company car furnished for Lisa's regular use
Basic coverage provided by farm coverage form includes the following EXCEPT
Livestock and farm machinery
Which of the following is not covered under the Flood Insurance Policy?
Livestock, motor vehicles, outdoor swimming pools
What is meant "break bulk" cargo?
Loose cargo such as cartons
The Special Cause of Loss form excludes all of the following, except:
Loss of market, loss due to artificially generated electric current, agricultural smudging
In Ocean Marine insurance, the term "average" means:
Loss or damage
Garage keepers coverage excludes all of the following losses, except:
Loss to a high value stereo system permanently installed in a customer auto
All of the following are Physical Damage exclusions, except:
Loss to permanently installed car telephone
All of the following are characteristics of an ideally insurable loss exposure" except"
Losses that are catastrophic
No act will be certified by Secretary as an act of terrorism under the Federal Terrorism Act if:
Losses that occur relate to life insurance
Which of the following would be considered special damages?
Lost wages
All of the following provide an additional amount of insurance under the Commercial Building and Personnel Property form, except:
Lottery tickets
Protection and Indemnity Coverage contained in an Ocean Marine Policy covers:
Marine legal liability for damages caused by the ship
The amount paid for damaged property which is equal to the price for which it could have been sold is called
Market value
Homeowner Medical Payments Coverage does not apply injury to which of the following?
Medical payments do not cover injuries to residents of the dwelling
In crime insurance terminology, an officer of the company having care and custody of insured property outside the insured premises is known as a:
Messenger
What do the initials S.T.A.R.R represent?
Methods of risk mamagement
The Personal Auto Policy provides coverage in all of the following locations, except:
Mexico
Insurer that distributes a statement that misrepresents the benefits advantages conditions or terms of any insurance policy would be guilty of
Misrepresentation and false advertising
The personal auto policy territory limits include
Montreal, Canada
Can be covered by the Federal Terrorism Act Insurance program, EXCEPT
Most commercial property and casualty risks
Is subsidized by federal government
Multiperil policies
a requirement for obtaining an agent or adjuster license?
Must satisfy the State Commissioner of trustworthiness
The process whereby a stock company a mutual insurer is called
Mutualization
The Dye's host a party. When the guests arrive, they place their coats in the bedroom. Two days later, Mr. Dye discovers that his ring is missing from the bedroom dresser. This loss is referred to as a:
Mysterious disappearance
The type of coverage on contents provided by the H0-3 is:
Named perils
What would be the reason(s) for $100 deductible versus a $1000 deductible
Neither of these apply
The insured carries a Commercial Auto Policy with the required underlying limit of $300k for bodily injury claims. The Commercial Umbrella Policy is written with a "per occurrence limit" of $5M and an "aggregate limit" of $25M. He is involved in an accident causing a passenger train derailment and hundreds are injured. Several individuals make claims in excess of $1M each. When will the aggregate limit under the umbrella policy be a factor in this auto claim?
Never
Under the PAP, a covered auto includes all of the following, except:
Non-owned auto
Earth movement is covered under which of the following Cause of Loss forms?
Not Basic, Not Broad
Which of the following forms cover flood and earthquake damage?
Not Building and Personal Property, Special, Broad
Sue Green has a Commercial Crime Policy on her restaurant, but she only chose the insuring agreement "Inside the Premises Robbery or Safe Burglary of Other Property." If an employer steals some equipment by breaking into the premises during the daytime on a holiday, the policy would:
Not cover the loss, since daytime burglaries are excluded
Applicants for an independent adjuster license must have had at least two years of claim experience in an adjusting insurance. One year of experience consists of:
Not less than 2000 hours of actual compensated work
The insured carries a DP2 with $10k contents coverage. He owns a canoe and stores it at a lake in a private non owned garage. Fire destroys the garage and the boat. How much coverage will his policy provide?
Nothing
Major difference between farm and broad is:
Offer broader coverage for livestock
If an initial "accident" to a boiler causes three other boilers to have accidents, under the insurance policy, all four events will be considered:
One event
Completed operations liability involves loss away from premises in all cases except those involving:
Ongoing operations
Named insured on a commercial insurance policy is "Sam Stone and Dan Sullivan DBA S&S bar and grill" if the insurer cancels the policy, they are required to mail or deliver written notice to
Only Sam Stone
The insured is covered under a DP3 with contents coverage. He has a hunting rifle stolen by forcible entry into the dwelling. The front door is severely damaged and must be replaced. Which of the following is a true statement regarding this loss?
Only the damage caused by the burglars will be paid
Which of the following coverage's is a property insurance coverage.
Other collision
Which of the following would be classified as a property insurance coverage
Other-than-collision coverage
The Forgery or Alteration insuring agreement protects the insured from losses resulting from forgery or alteration of:
Outgoing checks
The Equipment Breakdown policy is designed to cover equipment___ the insured.
Owned by, Leased to, Operated by
An owner of a construction job would probably need ____ coverage to cover their contingent liability as a result of work being performed on their behalf by contractors.
Owners and Contractors Protective
Which of the following would be covered under a Garage Liability Policy?
Ownership, maintenance or use of garage premises, Sale of products or services in connection with garage operations, Ownership or maintenance of covered autos
The insured has been involve in an automobile accident and has sustained bodily injuries and damage to the insured vehicle. The adjuster will usually:
Pay to repair the damage to the vehicle an obtain a partial release an settle the medical payments later then seek a final release.
In a commercial lines program policy common policy condition do not include which of the following as a condition?,
Perils insured
What exactly does a policy know as "open peril" protect against
Perils not specially named as exclusions in the policy
Which of the following coverages' does an open peril policy provide?
Perils other than those specifically named as being excluded
Workers compensation scheduled injury benefits are provided for:
Permanent partial disability, Temporary total disability, Permanent total disability
The most severe type of injury under workers compensation would be:
Permanent total
A Personal Umbrella Policy provides additional limits of liability for which of the following types of policies?
Personal Auto, Personal Liability, Watercraft Liability
Which of the following is also know as a human loss exposure
Personal loss exposure
Which type of exposure can be best be defined as a condition or situation for any exposure or financial loss is presented to an individual or family by such cause as injury disability, death or sickness
Personal loss exposure
Which type of loss is a business retirement or disability of key employee, exposed to death retirement or disability of key employee,
Personnel loss exposure
An induvial who loves next to nuclear power plant is exposed to which of the following types of hazard
Physical
The limit of liability of any property insurance contract in a given loss is the:
Policy limits
Insured carries 80% of the vaule on farm dwelling, in case of a partial loss of $50k, how much will the loss be paid?
Policy will pay 80% of the $5k loss
Which of the following pollution losses would be covered under the Garage Liability Policy?
Pollution of a creek caused by a gasoline leak from a ruptured fuel tank of a covered truck following a collision of another vehicle.
Cannot be covered under a livestock floater
Poultry
Which of the following losses to perishable stock would be covered by the Spoilage Endorsement?
Power outage, Mechanical breakdown or contamination, Changes in temperature, humidity, or contamination resulting from a power outage on or off the premises
All of the following are elements of negligence, except:
Premises
Coverage E of the Homeowner Policy involves:
Premises liability, Personal activities, Acts of residence employees
A salesman at a hardware store drops a hammer on a customer's foot. This loss would be classified as what hazard?
Premises-Operations
While working at a construction site a worker drops a hammer from a roof and hits a passerby. This loss would be classified under the _____ hazard.
Premises-Operations
Which of the following are parties to a contract bond?
Principal, Surety, Oblige
If the insurer cancels a Homeowner Policy, unearned premium is returned to the insured on what basis?
Pro rata
Which of the following exposures applies to bodily injury and property damage occurring away from the insured's premises and after possession of a washing machine has been relinquished to the customer?
Products
Which of the following would be covered under a Garage Liability Policy?
Products and completed operations
Farm liability coverage include each the following EXCEPT:
Professional liability
Workers compensation insurance provides coverage for all of the following except:
Property benefits
The Commercial Building and Personal Property Coverage form excludes all of the following types of property, except:
Property of others in the insured's care, custody and control
Surety bonds guarantee the fulfill of specific obligations. Each of the following may be the subject of a Surety bond, except:
Protection of funds handled by employees
The purpose of "underinsured motors" coverage is to:
Provide coverage for the insured when the at-fault driver carries auto limits less than the financial responsibility of the state in which the insured was injured
A situation is which there only the possibility of loss or no loss is considered a
Pure risk
RW and associates is an agency which represents BLG insuaracne corporation. RW and associates may leave the name BLG insurance corporation in its advetertisments by clearly stating the relationship between the two business in any of the following ways ; EXCEPT
RW And Associates underwriting for Blg insurance Corporation
Which of the following would be covered under a Robbery and Safe Burglary coverage?
Rare manuscripts are stolen from a locked safe that shows no signs of forced entry
Which of the following would be know as the process whereby an insurer determine appropriate changes for its policies
Rate-making
How would a "peril" best be defined?
Reason for the loss event that leads up to loss
What will the mortgage holder do in the event that an insurer does not pay claim as the result of the actions of the insured
Receive full payment for the loss, if the required premium has been paid
Extra expense insurance covers the cost of:
Relocation, temporary location, research costs to replace lost information
The amount to replace property with like property of the same quality and construction is the
Replacement cost
What is the formula for actual cash value (ACV) in determining loss values
Replacement cost less depreciation
The amount to replace property with " like property of the same quality and construction" is the properties
Replacement value
A basis for insuring property that allows the insured to report the value of the building contents to insurance company on a monthly basis?
Reporting form
With Commercial Property Insurance Property insurance, how would the insured receive replacement cost loss settlement on damage (as a result of a covered peril) to the Personal Property of Others left in the insured's care custody and control?
Request a separate replacement cost endorsement on the Personal Property of Others coverage on the policy
Which would be considered unfair or deceptive acts by an adjuster
Request first party claimant sign a release extends beyond the subject matter which gave rise to the claim payment advising claimant their rights may be impaired if a form of release is not completed within a specified period of time unless for purpose of notification statute of limitations issuing a check or draft in partial settlement of a loss or claim under specific coverage that contains language that releases the insurer or insured from total liability
All of the following would be considered benefits of insurance except
Retention of loss by the insured
All of the following would be considered benefits of insurance EXCEPT
Retention of the loss by the insured
A prospective insured wishes to protect her firm against criminals taking money from a messenger going from the firm to a bank. In this situation, the prospect should purchase coverage for:
Robbery
Which of the following loss exposures is not covered by section 2 of Ron's homeowners policy?
Ron's registered/ licensed personal auto while used on his own property which includes 10 acres of undeveloped land
In Ocean Marine insurance, which of the following is considered the most important implied warranty?
Seaworthiness
Insurance company would be which party when a pedestrian is injured by driver?
Second party
An act of terrorism must be certified to be such an act by
Secretary of the Treasury
Which of these is defined as "exclusive agent'
Sells for one insurance company and only that company's products.
Should an insured fail to report a claim in a timely fashion the adjuster will usually:
Send the insure a reservation of rights letter
Any person who makes a loan of money using real property as security
Shall no make available the information contained in a borrower's fire or causulaty policy if the borrower has filed a statement with the lender that they do not want the lender to disclose this informqation.
If the insured cancels a Homeowners Policy, unearned premium is returned to the insured on what basis?
Short rate
The Equipment Dealers Form covers all of the following types of property, except:
Snow removal truck
Coverage F of the Homeowner Policy applies to:
Social Invitees
In liability insurance, policy limits that apply one limit to each person injured, another for bodily injury claims of all persons injured in a single accident and a seperate limit for all property damage arising out of a single accident is:
Split limits
Example of a loss evaluation method
Stated amount
Personal injury includes all of the following, except:
Statements that are known by the insured to be false
In a commercial property the insurance claim is denied because of the insured action's. the mortgage holder will in most cases.,
Still have right to receive the full amount of the loss a payment
What type of insurance company is owned by individuals that are stockholder in the company; and share in the profits of the company?
Stock insurance companies
Under Coverage B - Other Structures of the Homeowner Policy, which of the following structures are not covered?
Structures use for business purposes, Structures rented to a non-tenant for other than a private garage, Attached garages
The insured is hit in the rear while stopped at a traffic light. The insurer's company pays for his repairs then seeks reimbursement from the responsible party. This is described as:
Subrogation
An "accident" under an Equipment Breakdown policy includes:
Sudden breakdown of an object
Mr. Jones has damage his vehicle by striking a tree. He can:
Take the car to a repair garage recommended by the insurer, Take the car to a garage of his/her choice, accept the payment based on the adjuster's estimate.
A severely sprained back rendering an employee unable to work for six weeks is an example of a ______disability.
Temporary total
Under the Condominium Association form, coverage is based on:
The Association agreement and bylaws
An insured is covered under a BOP policy and has a piece of equipment insured seperately under a floater policy. In case of a loss, what coverage will apply under the BOP policy?
The BOP will be excess over the floater policy
Which is the section of an insurance contract that contains the provisions, rules of conduct, duties and obligations of od the parties?
The Conditions
Federal law enacted to control ways to financial institutions and insurance companies deal with private information of individuals is:
The Gramm-Leach-Bliley Act
Responsibility to regulate insurance industry belongs to:
The State and State Insurance department
If both the Condominium Association form and he Condominium Unit Owner form cover the same property, how will the loss be handled?
The Unit Owners policy will be excess over the Association policy
What will happen when an agent's appointment to an insurance company is terminated and the agent has no other appointment with any other insurance company?
The agent's permanent license becomes inactive
Actual cash value is defined as the
The amount to replace damage property minus depreciation
A distinct feature of the alternative funding method know as self-funding is
The benefits are tailored to the group
What does a "pure risk" consist of ?
The chance of loss only
Under Section II - Additional Coverages of the Homeowner Policy, the insurer agrees to pay:
The cost of a legal defense, Premiums on bonds connected with liability suits, Investigation cost
In case of a total loss to a vehicle the adjuster will pay the insured/claimant which of the following?
The cost to replace the vehicle with like kind an quality if a current year model, Use the most recent publication of an "Official Used Car Guide", If not listed on the "guide" obtain quotations from automobile dealers
A public adjuster represents the interest of:
The insured
Who is considered the first party to an insurance contract
The insured
The PAP Medical Payments cover:
The insured as driver, The passenger, The insured as pedestrian
The ordinance or law limitation in a homeowner's policy may cause a gap in coverage in which of the following situations?
The insured's home is damaged by fire and must be rebuilt to meet present building codes. The additional cost of complying with the codes is 50%
A company adjuster primarily represents the interests of:
The insurer
The BOP contains liability coverage for the insured's business. On what basis is the coverage written?
The liability coverage under the BOP is written on an "occurrence" form basis
Should an agent or adjuster have a change of address the obligation to notify the insurance department lies with:
The licensee
The insured carries the "open peril" BOP policy. On a weekend thieves enter the building and steal all of the merchandise in the store. What coverages would apply?
The loss by burglary and loss of income would apply
The insured has suffered a loss as the result of a cracked steam boiler. What coverage would apply under the Commercial Property Cause of Loss forms?
The loss is not covered
The Premises Liability hazard applies to:
The owner of the premises, The renter of the premises
The insured is covered under a BOP and sustains a direct loss to his building and contents. What is the period of time the policy provides loss of income and extra expense coverage?
The policy pays for up to 12 months
Although Ocean Marine Hull and Cargo coverages are usually written on an open peril basis, they excluded losses caused by inherent vice. The term "inherent vice" means:
The potential of property to self-destruct
Why would an employer be held legally liable for the negligent operation by employee who is driving a vehicle on behalf of the employer and cause an injury to a pedestrian
The principle of vicarious liability
The term "undamaged stock" in Equipment Breakdown coverage refers to:
The reduction in the value of the stock
Which of the following combinations of characteristics should be considered when making a an insurance recommendation to a propective insured that has just purchased a new office building?
The structure that is exposed a loss, the perils that may occur, consequently causing a loss possible financial impact of loss
With regards to insurance applicability the word "risk" can be best defined as which of the following?
The uncertainty associated with a loss occurring
Which of the following terms provides the broadest definition of criminal activity?
Theft
All of the following explain the characters that are unique to insurance contracts EXCEPT
There is an equal exchange of amounts or values within the contract
What is the difference between per accident limit in a split limit policy and single limits
There is no difference
Which of the following statements is true regarding compensatory damages?
There is usually no direct correlation between the amount of general and special damages awarded to the victim
The commercial property conditions included a condition called " liberalization". The effect of this condition is
To automatically apply broader coverage to the commercial property coverage part if a policy form revision would broaden coverage without an addition premium
The purpose of Equipment Breakdown insurance:
To fill the gaps left by property insurance policies
In Ocean Marine Insurance, what is the purpose of the IVEL clause?
To provide excess hull and collision liability coverage
The territorial limits of a personal auto policy include which of the following
Toronto,Canada
A wrongful act other than a crime or breach of contract is law
Tort law
What gives an insured party the right to seek compensation if it is proven that another person with negligence contributed to the injury
Tort law
Under the Truckers Policy, which of the following is an additional coverage?
Trailer interchange
Method of risk management include
Transfer, sharing, avoidance
All of the following are exclusions under the standard BOP form, EXCEPT:
Transportation
An unethical act of persuading a policy owner to drop a policy to sell another policy is known as:
Twisting
Which of the following will be considered an unfair trade practice?
Twisting, rebating, coercion
Under the Damage to Property of Others coverage of a Homeowner Policy, section II, property damage caused intentionally by an insured is excluded if the insured is:
Under the age of 13
Whatis the process whereby insurers decides which customers to insure and what coverage to offer
Underwriting
An insurer that refuses to pay claims without conducting a reasonable investigation based upon availability is guilty of:
Unfair claims settlement practices
The provision in a property policy which states that the insured has been paid up to their insurable interest is
Valuation clause
Which of the following cities would fall within the policy territory limits of PAP issued by an insurer in the state of california?
Vancouver,Canada
An employee is operating their own car for their employer. The individual injures a person in a area as result of negligent driving. The reason why the employer would be held liable is because of which of the following?
Vicarious liability
Insured own a filling station and his employee causes injury to a third party. The insured is legally liable for his employee actions
Vicarious liability
Laura is driving her own car on behalf of her employer Laura's negligent operation of her car injures a member of public. The employer may be held liable because of what is called.,
Vicarious liability
To be defined as a burglary, an event must include which of the following conditions?
Visible signs of forced entry or exit
All of the following are exclusions under the Homeowner Policy, except:
Volcanic eruption
The giving up of a known right is called?
Waiver
The intentional relinquishment of known right is
Waivier
Which of the following collapse losses would be covered under an HO3
Weight of contents
Absolute risk(liability) is imposed
When there is negligence whether proven or not
Operations are completed when:
Work has been completed or, Work has been put into use
Which of the following is not a federal program
Worker' compensation
Which of the followig statements about workers compensation is correct?
Workers compensation is an exclusive remedy
A policy may not be transferred to another without
Written consent of the insured
In California, can an adjusting firm which contracts with a salvage company have any financial interest in the salvage firm and avoid a conflict of interest?
Yes but interest must be limited to 3% or less of ownership
If an independent adjuster that owns firm dies, do the remaining non-licensees employees have to notify the Depart of Insurance?
Yes within 30 days of owners death
Of the following loss scenarios, identify the one that is excluded from coverage under both the collision and other than collision coverage of an insured's PAP
a "palm pilot' computer (owned by the insured) is stolen from the vehicle while parked in the insured's driveway. There are forcible signs of the vehicle
A personal auto policy will cover all the following types of losses, EXCEPT:
a "palm- top" computer, personally owned by the insured, is stolen from the insured's car while it is parked in her driveway at home
What else must an applicant for a fire and causualty license . life agent license. Or personal lines agent license complete in addition to pre- classroom study?
a 12 hour course on ethics and CA code
All of the following meet the definaition of the insured under a HO3 policy, EXCEPT
a 70-year old grandparent residing in an adult care facility
Which of the following polices would provide coverage for a builder under construction?
a builder risk policy
• Which of the following best defines a binder
a contract of insurance that is temporary, only in writing, between the insured and the insurer
What is self- insured retention under an umbrella policy?
a deductible applicable to losses excluded by the underlying coverage and covered by the umbrella
All of the following would not be eligible for coverage under the California FAIR,EXCEPT
a home well taken care and is located in specially designated hazardous brush fire area
an insured's loss reserve for a claim is an estimate of the amount insurer will pay for present and future loss, which of the following is an example of loss prevention
a homeowner decides not to install a pool in the backyard
Of the following choices, which one would define the " replacement date" which is contained in the structure of a claims-made professional liability policy contract?
a loss occurs or event can occur and still be eligible for recover of payment under the terms of the policy, if it occurs after this date
All of the following vehicles are eligible for coverage under a personal auto policy, EXCEPT
a private passenger auto owned by a partnership
In California. Excess and surplus lines coverage needs to be placed through
a surplus lines broker
A business owners policy would be appropriate for which of the following types of business?
a three story office building
Which of the following is not an uninsured motor vehicle as defined by personal auto polices uninsured motorist coverage?
a vehicle owned by state agency which self-insures its auto
Which of the following is most likely to be eligible for CA FAIR plan?
a well- maintained dwelling located in a hazardous brush area
Under an unendorsed commercial property coverage form with no optimal coverage's, on what basis are buildings
actual cash value
The limit of liability under a personal auto policy under the section "coverage for damage to your automobile is typically the lesser of the dollar amount needed to replace or repair the damage property or the _____of the damaged property. From the following choices, fill In the blank with the correct answer.
actual cash value (ACV) or fair market value
The limit of liability in a personal auto policy proving coverage for "damage to your automobile" is stated as " the lesser of the amount necessary to replace or repair the damaged property (vehicle) or the ________(fill in the blank from the choice below
actual cash value of the damaged or stolen property
The personal auto policy" coverage for damage to your own automobile" states that the limit of liability is lesser of the amount necessary to repair or replace the property or the:
actual cash value of the stolen or damaged property
Which of the following losses would be excluded by the ordinance or law exclusion?
additional cost necessary to make a restroom ADA compliant
Which is an additional coverage does a DP2 have compared to a DP1
additional living expense
What additional coverage does a DP2 have compared to a DP1?
additional living expenses
If an insured rents vehicle while on vacation in the U.S, what coverage is provided under the personal auto policy?
all coverage is in force in the personal auto policy
What coverage is available under the miscellaneous type vehicle endorsement?
all coverage under the personal auto policy
Which peril(s) is/are included in vacancy permit endorsement?
all of the above
Which of the following is covered under section 2 of a homeowner's policy
all of these are covered
What perils are insured against under the "additional coverage's property removed" of a homeowners policy?
all perils
What perils are insured against under the "additional coverage's propery removed" of a homeowners policy?
all perils
When must insurance records for insurance agents and insurance broker be made available to the insurance commissioner?
all times
After a collision loss, the personal auto policy requires the insured to
allow the company to inspect the damaged property before it is repaired
An insurer that has a certificate of authority in California is
amitted
Which of the following is covered under worker's compensation policy
an employee accidently getting injured, at a customer's home while working at the customer's home
Which of the following bodily injury or property damage loss exposure is covered by an unendorsed commercial general liability policy?
an employee who causes an injury to a customer while working in home of that customer
Section 770 of the insurance code is true regardging unfair or trade practice?
an entity cannot demand the insurance be placed with a particurl agency
A representation in an insurance contract qualifies as which of the following?
an implied warranty
• How is an "insurance broker" defined according to the California insurance code?
an individual who receives compensation for transacting insurance on behalf of another person, but not on behalf of an insurance company
Of the following choices, which is correct regarding why a motorcycle is not automatically covered under a personal auto policy?
an unendorsed personally auto policy does not automatically cover two wheeled vehicles
which of the following describes the act of making a false entry in any book statement of report of any insurer with the intent to device any examiner lawfully appointed to examine the insured's
an unfair practice
• Insure' especially those with higher premiums very often have the immediate funds to pay required premiums such as automobile liability insurance. In many cases insurers will provide premium financing. Which of the following statements is correct regarding this financing according to the requirements of the California insurance code?
any agent that provides premium financing service is required to maintain all records regarding the financing if compensation is received for financing of the premium for three years after transaction.
A commercial building which is a combination office, retail, and warehouse space, has been left vacant by its owners for more than 60 consecutive days. In what manner will an insurance company respond to loss that occurs, which is covered under the commercial building and personal property coverage form which has a broad form cause of loss a on the building
any part of the loss which is caused by the perils of vandalism, theft or glass breakage, sprinkler leakage will not be covered
Under a personal auto policy, who qualifies as an insured while using a covered auto
any person
Which peril(s) is
are included in vacancy permit endorsement?/ all of the above
When is property and causulty agent required to in form an isured of any conditions which may be precedent to coverage regarding a personal auto policy?
at time of application
Under a personal umbrella policy, what underlying coverage's must an insured typically maintain?
auto and personal liability only
Symbol 7 in a business auto policy indicates that there is liability coverage for:
auto specially described in the policy are covered
Which of the following is not a type property commonly insured by using a comical coverage
automobiles while kept for the owner in a commercial parking garage
If a motor home is scheduled on a miscellaneous type of vehicle endorsement, all of the following property covered, EXCEPT
awnings
Community Cleaners is a new dry cleaning and laundry service business. They have vehicles that pick up customers property to be processed and then delivered back to the customer. What type of policy would you recommend they purchase to cover the customer's property?
bailee policy
In a claims-made commercial general liability policy, which of the following begins when the policy period ends, and is activated when the policy is cancelled or not renewed?
basic extended reporting period
Damaged caused by burglary of personal property is not covered under which dwelling form(except by endorsement)
basic form
Which cause of loss, under commercial property coverage, includes coverage for the peril of windstorm?
basic, broad and special
Under the commercial property coverage program, which causes of loss form(s) include coverage for peril of windstorm?
basic, broad, and special
The business income coverage form covers the actual loss of business income sustained due to necessary suspension of operations. The loss of income must
be caused by an insured peril, otherwise there is no coverage
Under a scheduled personal property endorsement, loss to stamps is excluded when they are:
being shipped with freight company
Coverage parts A,B & C of GCL is which of the following?
bodily injury and property damage liability, personal and advertising injury, and medical payments
The products and completed operations hazard would apply to which of the following situations
bodily injury to a customer as the result of a defective manufactured by the insured
All of the following are parties to surety bond, EXCEPT
bondsman
The coverage found under both a homeowners section 2and a comprehensive personal liability policy extends to which of the following?
both personal activities and premises of the insured as well as any activates of the insured that occurs off the named premises
How are the HO3 and HO5 Similar?
both provide open peril coverage for the dwelling
a person can base his/her claim for liability on the basis of all of the following EXCEPT
breach of liability
What additional coverage's are available under the scheduled personal property endorsement that is not available under an unendorsed homeowners policy?
breakage of glassware by an earthquake
What exactly do umbrella polices provide coverage for?
broad excess liability coverage over two or more underlying polies
Which of the following is reason why someone would purchase a Dwelling policy instead of an HO3?
broader coverage is desired
Why would an insured want to use HO3 policy instead of dwelling policy?
broader coverage is needed by the insured
If an insured timely requests coverage for a newly acquired auto under an existing personal auto policy, what coverage is provided before the request is made?
broadest coverage for any vehicle shown on the declarations
Thomas fry has insured a building under his commercial policy. The building was vacant for 75 consecutive days before a loss. The policy will not pay for the loss if caused by the perils of
building glass breakage and vandalism
A policy called "builder's risk" would be found in which of the following circumstances
building in the process of being constructed
under California insurance code marketing department is responsible for all of the following; except
bulk mailing
Which of the following lines of in insurance would cover the loss of net income a business incurs due to a fire
business income insurance
A dwelling fire policy's coverage is to a homeowners policy, as a commercial property policy's coverage is to a:
business owners policy
What type of policy is comparable to commercial property policy coverage as a dwelling policy's coverage is
business owners policy
If a named insured is not the owner of the building, improvements and betterments are covered under the
business personal property
A business owner, who is insured with a business auto policy, is interested in purchasing the necessary liability coverage for any losses and subsequent claims that result from an employee's use of their own vehicles. What would be the best way to do this?
buy employer's non ownership liability in the business auto policy
How can as insured ensure that she has protection against possible claims for libel, slander,and false arrest under an HO3 policy?
by adding a personal injury endorsement
Typically exclusions under any medical expense policy include all of the following EXCET
claims also covered by personal auto policy medical payment
What additional coverage is provided in DP3 that is not included in DP1?
collapse
Which of the following perils is insured against in the special form, but not in the basic form?
collapse
Business auto policies(BAP) Contain which of the following combinations of physical damage coverage's
collision coverage, comprehensive coverage, or specified peril coverage's
Diamonds Toy Company is being sued for a death caused by a child choking on a piece from one of its transformers. Where would diamond find coverage for the defense of this law suit
commercial general liability
JAE Computer Company is being sued by Stack Company for an advertising campaign stack computer feels false and misleading. JAE company would find coverage for losses which could result from this lawsuit under which category of insurance:
commercial general liability
Identify which of the following is always included in a commercial package policy?
common policy declaration and conditions
Employee dishonesty coverage forms would apply to which of the following?
company funds and securities that are stolen by an employee
In the business of insurance. The act of concealment is defined by all of the following statement EXCEPT
concealment does not occur if no inquiry is made
An applicant of insurance does not reveal information that the insurer would rely upon to issue the policy this is/an
consealment
All of the following are true of the workers compensation law, except:
cost paid by employees
What is the purpose of the Federal Employer's Liability Act?
cover railroad employees
Your insured has a ten year lease on his store. He has spent $50, 00 on shelving, wall-to-wall carpeting, partitions, and lighting, etc., all of which are part of the building and cannot be legally removed. He is concerned that a fire might damage these changes that he has made and wants to make sure he is protected for their value. He should might damage these changes that he has made and wants to make sure he is protected for their value. He should
coverage B personal property
What is the primary difference between an HO3 and an HO5?
coverage C broad named perils
If an insured with a personal auto policy has an accident in a state with personal injury protection, how does the policy respond?
coverage automatically is broadened to provide PIP
Of the following, which are included under the coverage provide by a worker' compensation policy?
coverage for sickness or injuries illnesses that are job related without regard to who is at fault or negligent
Damage which is the result of a hailstorm, in which of the following ways under a personal auto policy?
covered as an other-than- collision loss
A car is insured using a personal auto policy. The car is damages by hail. The loss is:
covered as other collision loss
How would the damage resulting from hail be covered under a personal auto policy
covered as other than collision loss
When must an injury occur for the medical payment coverage of a commercial general liability policy to apply?
customers being on the insured's premises
The collision coverage of a the personal auto policy covers?
damage caused by the insured, driving into a fallen tree, that fell during a storm
The personal property coverage part of an unendorsed HO3 form covers which of the following/
damage to the insured's living room furniture that is result of the furniture being removed from the insured premise to prevent it from further damage after a covered fire at the same premises
What must a licensee do in order to surrender for cancellation a license in their posseion?
deliver the document itself to the commissioner
The insured has forgotten to close an upstairs window. A strong storm blows through and wind and water severely damage the contents and floors of the dwelling. The insured carries a DP2 dwelling form. What will be the outcome of this loss?
denied
The insured lived close to Mount Saint Helens and carried a DP2 policy. The volcano erupted and the movement of the earth caused his home to collapse, he reports the claim as a volcanic eruption loss. What do you feel would be the result of this claim?
denied
The definition of "mobile equipment" and "automobile" are defined in both a commercial general liability policy and business auto policy to specify the coverage on any vehicle or equipment. These two coverage's
differ and therefore avoids any over- laps between the two contracts
Type of exposure can be best defined as a condition or situation where the exposure to financial loss is presented to a business owner by the injury
disability, death, sickness, of valuable employee, Personnel loss exposure
The medical expense coverage in workers' compensation policy
does not have a time nor a dollar limit
Which of the following statements is NOT true? A fire and casualty agent
does not have the authority to collect premiums from producing broker agents.
The commercial general liability (CGL) declaration pages display many different limits of insurance that apply to a policy. One limit shown is the insured's general aggregate limit. Which off the following is correct statement about the general aggregate limit? The general aggregate limit
does not included the products- completed operation aggregate limit
Grace has a homeowner's policy that includes section 1 coverage's A, B and C. A,B and C provide coverage for
dwelling, other structures, and personal property
Grace has a homeowners policy that includes section 1 coverage's A,B and C. A,B and C provide coverage for
dwelling, other structures, and personal property
All of the following are considered intentional torts
except, Assult
Where would an insured that is in the business of importing exotic animals from Africa most likey go to obtain
excess and surplus lines insurer
"umbrella polices "provide coverage for and are best defined as which of the following?
excess liability coverage, on a broader basis, above an underlying primary policy
Jackie's personal auto policy(which is unendorsed) would provide payment for which of the following?
expense of repairing a neighbor's wall, surrounding a garden, that Jackie accidentally backed through
What does a supplemental extended reporting period endorsement provide?
extends the filling reporting period indefinitely
What is one peril included in DP2 that is not included in a DP1
falling objects
Which of the following perils is included in the broad form, but not in the basic form
falling objects
A pickup or van with a gross vehicle weight of 9,500lbs. may be eligible for personal policy if it was used in the
farming or ranching
What must a life agent travel agent, or fire and casualty insurance agent do in order to act as an agent of a particular insurer?,
file a notice of appointment with the commissioner
When does a personal auto policy require the insured to notify the police?
for hit and run and thefts
What must an isurer do who accept from an agent who is not specifically appointed by the insurer and then issues a policy from that application
forward to the commissioner a notice of appointment with 14 days of receipt of application.
exclusive agents
generally represent only one insurer
You meet with a small furniture manufactuer and make a property and liability insurance recommendation. You have insured many risk of this type in the past and have a good idea of what their needs may be. There are several popular ways of determining business loss exposure. Which of the following ways are the least professional and least likely to correctly identify the loss exposure?
get a copy of all current polices and determine what coverages they have been carrying and how much they have been paying
what would be the result of a lower(250) deductible vs. the selection of a higher deductible ($1000)
greater number of smaller claims sent to the insurer
Which property is excluded under an HO3 policy?
guard dog
• A licensed fire and casualty broker-agent when properly appointed may transact all of the following except
health insurance
The best definition of the term "collision" as found in a personal auto policy is which of the following?
hitting any other vehicle or object with the insured vehicle, or the upset of the insured vehicle
What does the California FAIR plan provide coverage for?
homes located in a hazardous brush or high risk urban areas
for any type of risk exposure to be considered an ideally insurable riskwhich of the following characteristics does not have to exist , there is very little
if any chance a loss happening during the policy period
Damage done by an earthquake to an insured auto covered by the auto policy
if the other than collision coverage is purchased
In the state of CA no rate will reamin in effect if it is considered to be any of the following except
impartial
Your client owns a business that leases a warehouse and office space, in order to maximize the space and size of the building he has installed over $100, 00 of partitions, lighting, security equipment, carpeting, bookcases and storage cabinets. All of these features are permanently installed and therefore cannot be removed and taken when he moves upon expiration of these. To protect his financial interest in these items in the event of fire, which of the following should be utilized on his commercial property policy
improvements and betterments coverage
Your commercial auto policy insured needs coverage for his liability arising out of his employee using their o cars in his own cars in his business. The best way to be sure your insured is covered is to:
include employers non ownership liability coverage in employer's commercial auto policy
What are the licensing requirements for individuals that are permitted to sell the California FAIR plan?
individuals having a fire & causulty broker- agent license
All of the following causes of loss are covered by equipment breakdown insurance, EXCEPT:
inherent defect
Where would an insured find insurance coverage to protect against damage to a shipment of televisions shipped on a semi truck for the insured's business
inland marine
If a building damaged during an attempted burglar where money was stolen from a vault, which of the following coverage's would cover the loss of the money as well as the damage to the building?
inside the premises-theft of money and securities
Which of the following describes an insurer who has enough financial resources only to provide for all its liabilities and for all reinsurance of all outstanding risk?
insolvent
Which of the following describes an insurer who has enough financial resources only to provide for all of its liability and for all reinsurance of all outstanding risk?
insolvent
A possibility of financially loss resulting from the ownership of property is know as
insurable interest
Which party is allowed to cancel a commercial policy (assuming all legal requirements are met?
insurance company and/ or the first named insured in the policy
• Which of the following insurance professionals would be employed to aid an insurance broker
insurance solicitor
All of the following are common policy conditions under the commercial lines program, EXCPET
insured risk and peril
Which of the following suggest the need for an attachment of the additional residence rented to others endorsement to an insured's homeowners policy? The insured also owns a two family dwelling rents it our to two families. The insured
is concerned that she might be liable to the renter for liable to the renter for injuries that might occur in connection with the rental
This statement that is true regarding medical expense coverage in a worker's compensation policy is
it contains an unlimited amount of coverage for both time and dollar amount
The ordinance or law exclusion/limitation found in property policies such as the commercial property coverage, and in the homeowner policy have the following effect:
it excludes that part of the loss resulting from the enforcement of a building ordinance or law
The ordinance or law exclusionlimitation found in property policies such as the commercial property coverage, and in the homeowner policy have the following effect:/
it excludes that part of the loss resulting from the enforcement of a building ordinance or law
of the following which is true characteristic about insurance
it is considered a method of transferring risk
• Which of the following statements is true regarding the material of representations and concealment?
it is determine by the affect of the facts on each party to the contract in determining his or her estimate of the disadvantages of the contract
There is exclusion in an automobile insurance issued by admitted insurer in California regarding coverage in Mexico, which can only be provided through an endorsement to PAP. Which is true regarding this endorsement?
it is liability coverage, on an excess basis , provided for losses that occur in Mexico, within 25 miles of the California/Mexico international border
Which of the following is true regarding the loss of income that is result of a suspension of business's operations under the business income coverage form?
it must be the result of a peril that is insured under the policy, otherwise there will be no coverage
There is type of policy in the commercial insurance field know as a commercial lines package. Why would an insured purchase this structure of policy over a monoline policy
it provides the convenience of one policy for all exposures and risk
• How is an admitted insurer defined according to California DOI?
it transact insurance according to laws of the state of California
A homeowners policy that includes a "scheduled personal property endorsement " provides coverage which of the following?
jewelry, fur, musical instrumental, and camera for dollar value amounts decided by the insurer
The collision coverage of the personal auto policy does not cover the following loss situations; EXCEPT
large limbs and branches of a tree that have fallen into the street as a result of a windstorm. The insured collides with them
The amount to replace an insured's damaged property
less depreciation, is know as the, Actual cash value
Which of the following coverage's may you buy with a named non-owner liability policy?(choose the most complete answer)
liability and medical
What coverage is available under the extended non-owned liability coverage?
liability and medical payments
The watercraft endorsement on homeowners policy extends coverage for
liability coverage for watercraft listed on schedule
The watercraft endorsement on a homeowners policy extends coverage for
liability coverage for watercraft listed on the schedule
Max's personal auto policy (PAP) has liability and collision coverage. His neighbor's car has liability coverage only. Max borrows his neighbor's car to go the store and has an accident that is his fault. He damages his neighbor's car another car. Max PAP provides
liability coverage that is excess of his neighbor's liability coverage. His collision coverage also applies, but on primary basis
Which of the following coverage's may you buy with a NAMED OPERATOR POLICY?(chose the most complete answer)
liability, uninsured motorist, medical payments, collision and other than collision
Under a yacht policy, protection and indemnity provides coverage for
liabillty if the insured vessel strikes a marina and injures a dock worker
To be covered for a hit and run accident under the uninsured motorist property damage coverage of a PAP, what is required to be provided to the insurer
license number of hit and run vehicle
According to the CA insurance code a binder is deemed a valid insurance policy for the purpose of providing that the insurance coverage specified in the binder for each of the following types of insurance EXCEPT
life insurance
Mr. Jones owns a jewelry store. His wife takes a very valuable necklace and wears it to a party. It is stolen. How will the jeweler's block policy respond to cover this loss?
loss will be denied
• All of the following are characteristic of ideally insurable loss exposure EXCEPT:
losses that are catastrophic
• It can be very tempting for commission based insurance salespeople to perform unethical activities in order to make a sale. of the following which would not be a reason why and agent might be tempted to act unethically?
maintaining the best interest of customers first and foremost
An insured duties after a loss are described in the homeowner's section 1 conditions. Which of the following is NOT a correct statement about these duties? The insured must:
make all necessary repairs to protect the property from further damage. The excludes that part of the loss resulting from the enforcement of a building ordinance or law
An insured duties after a loss are described in the homeowner's section 1 conditions. Which of the following is NOT a correct statement about these duties? The insured must:
make all necessary repairs to protect the property from further damage. The expenses is paid by the insured
A private passenger vehicle is added to an insurance policy. The CA insurance code
make no mention of vehicle inspection requirement
An insured' duties after a loss are described in the homeowner's section 1 conditions. Which of the following is NOT correct statement about these duties? The insured must:
make sure all necessary repairs to protect the property from further damage. The expense is paid by the insured
An insured purchased a commercial policy on an owned building. The policy contains a coinsurance provision. The coinsurance clause
makes carrying insurance of percentage of the building value advisable to avoid a possible
Company that negotiates and binds ceding reinsurance on behalf of an insurer is considered
managing general agent
Coverage part A of a commercial package policy, specifically inland
marine coverage, includes coverage for all of the following types of property EXCEPT/ vehicles that are stored for the owner in a commercial public parking lot
The state law that regulates insurer practices regarding underwriting. Sales. rate-making and claims handling are called
market conduct regulation
the state laws that regulate insurer practice regarding underwriting sales, rate-making, and claims handling are called,
market conduct regulation
the amount paid for property damage which is equal to price for which it could have sold is
market value
If an insured purchased an all- terrain vehicle(ATV), what endorsement can be added to the personal auto policy to insure the vehicle?
miscellaneous type vehicle endorsement
What endorsement can be used to insure a motorcycle under a personal auto policy?
miscellaneous type vehicle endorsement
personal Umbrella policy:
modified form of excess liability coverage
A homeowners, specifically coverage C, has certain limits on various classifications of property, the lower sub limits apply for THEFT to the following of personal property; EXCEPT
money
Which is broader coverage
multi peril policy offer much broader coverage than crop hail policy
What is required of a broker- agent before appointing an insurance solicitior?
must hold a permanent license
If an individual does not own an auto, nor have regular use of an auto, what endorsement to a personal auto policy could be used to properly protect that individual
named non-owned liability coverage
Jim, your unmarried homeowner's insured does not own his car. He is planning a vacation trip to Florida and will be renting a car. He also drives cars belonging to friends occasionally. To protect Jim in theses situation, you would recommend a personal auto policy with a
named non-owner coverage endorsement
What kind of coverage would you recommend to one of your insured's who is single and does not own a car, but, she does , on occasion, drive cars that belong to her friends (both male and female). Additionally, she is planning a vacation to Florida and will be renting a car while there
named non-owner coverage endorsement
What is revenue minus expense?
net income
Business in come as, it is defined under a business in come coverage form provides coverage for actual losses of business income resulting from the suspension of the actual operation of the business. Which of the following is the formula to determine this dollar amount?
net income of the business plus normal operating expenses including payroll
Are standardized umbrella polices available?
no because each company want the ability to establish their own pricing
• The types of transactions and insurer that a surplus lines broker is involved with is/are
non-admitted insurer, property and casualty insurances
Under an unendorsed personal auto policy, what coverage is available for personal effects?
none
Which of the following would be covered by the physical damage section of a personal auto policy?
none of these are covered
• A fire and casualty managing general agent can do all of the following EXCEPT
none of these are excluded from the power and authority given to fire and casualty managing general agent
Which of these Dwelling policy types do not include coverage for burglary of personal property
none of these covers theft of personal property, except by endorsement
The limits of medical expense coverage in a workers' compensation policy is:
not limited for either the time and/or the dollar amount
all of the following are requirements for a notice by mail to an insured by insurer except
notice must be sent with return receipt required
All of the following are requirements for a notice by mail to an insured by an insurer EXCEPT
notice must be sent with return receipt reuired
All of the following are principal rating factors under proposition 103 for personal auto policies, EXCEPT
number of listed drivers
One example of a loss covered by business income insurance is a loss:
of profits due to suspension of business operations because of a premises fire
Which of the following types of businesses could utilize a business owners policy?
office building 2 stories high and containing about 5,000 square feet
When may a representation be withdrawn?
only before the insurance is in effect
There is a "changes" condition found in a commercial lines policy that says that the policy has within it all the agreements between the insured and the insurer regarding the insurance that is being provided. Additionally, this condition further provides that the policy terms can be waived of amended by which of the following terms?
only if an endorsement is attached to the policy and comes from the insurer
Insurers may purchase reinsurance for a variety of reason which of the following is not a good example of the use of reinsurance? Insurer purchases reinsurance
only on the below average business submitted to them keeping the good business for themselves
What type of coverage is usually provided by an inland marine policy
open or all-risk coverage
Inland marine polices nearly always provide________coverage
open peril/All Risk /Special form
If an Inland marine policy provides coverage for any loss unless it is specifically excluded, it would be considered which of the following?
open perils
Coverage's A and
or B of the commercial general liability (CGL) contract contains coverage for:/advertising injury
• In the state of California how is a domestic insurer defined according to the California DOI code?
organized, chartered, or incorporated under the law of state of California
An insured living in California has the following coverage's under PAP: with liability, medical payments, and loss other than collision. The individual vehicle is stolen from her driveway and then totally wrecked. Which of the following cover this loss?
other than collision coverage
There is a certain type of liability coverage referred to as P&I, which stands for protection & Indemnity. "what does this coverage offer protection for?
other vessels that receive collision damage from the insured vessel
The symbol "4" on a business auto policy indicates coverage for which of the following categories of vehicles?
owned autos other than private passenger auto
What items of personal property are included in a coverage A under HO3 policy
paint on the premises to be applied to the interior
What is the primary objective of workers compensation insurance?
payment of benefits to employees for injuries arising out of their employment.
What right does an insurer have as far as auditing the books and records of an insured according to the conditions of a commercial property policy?
perform an audit while policy is in force & up to three after expiration or termination of policy
What is one way in which the HO2, HO4, and HO6 are similar?
perils insured against under coverage C
A commercial lines policy contains a number of conditions. which of these is not one these conditions?
perils insured by the policy
• If an insured signs a claim form a claim which is fraudulent the insured may be guilty of
perjury
Medical payment coverage in boat owners policy cover injuries to:
permissive occupants of the insured's boat
Which inland marine floater is most similar to the scheduled personal property endorsement on a homeowners policy?
personal article floater
The theft of the insured would be covered under
physical damage coverage
Which coverage's are typically provided in a boat owners policy?
physical damage, liability and medical payments
The water damage exclusion in the cause of loss- special for applleies to all athe following, EXCEPT:
plubing system leakage
A home is damage exclusion in the cause of loss- special form applies to all the following EXCEPT:
plumbing system leakage
The water damage exclusion in the cause of loss- special for applies to all the following, EXCEPT:
plumbing system leakage
Every admitted insurer in the state of California is required to maintain a unit or division to investigate which of the following?
possible fraudulent claims made by insured's
All of the following expenses are covered in addition to the limits of a liability under coverage a of a personal auto policy except
pre judgment
Under section 2 of a homeowner's policy, comprehensive personal liability, coverage is extended to which of the following
premise described in the policy and all personal activities of the insured on or off the described premised
Under section 2 of homeowner's policy, comprehensive personal liability,coverage is extended to which of the following
premsies described in the policy and all personal activities of the insure on or off the described premises
All homeowners polices specifically describe the duties of the insured following a loss. Identify which of the following is not a duty of the insured following a loss
prepare an inventory of the property that has been damaged which included a description of the property, the quantity, the amount of the loss, and the actual cash value
A representation as to the past
present or future is an ,verified promise
Which rate approval filling system is used in California for most lines of insurance
prior approval
The method that the California DOI uses to approve or disapprove rate filing for various types of insurance such as homeowners and automobile is know as?
prior approval method
Professionals are exposed to liability for failure to perform their profession duties. Which of the following would be least likely prospect for a professional liability policy?
pro basketball player
Which of the following is not listed on a commercial general liability declarations page as an aggregate limit?
products/completed limit
Professional liability insurance should be purchased by all of the following categories of professions, EXCEPT
professional athletes and coaches
A practicing physician would need the type of professional liability coverage that is contained in a medical malpractice policy because:
professional liability and malpractice losses are excluded in commercial general liability policies
All of the following occupation are exposed to a chance of failing to properly fulfill professional duties and are therefore potential prospects for profession liability policies, except
professional sports player
Represention as to the future is considered which of the following
promise
What is the primary difference between a HO2 and a HO4 policy?
property insured under coverage A
Where is ocean marine liability insurance found?
protection and indemnity coverage
What is the requirement and what is provided under the Mexico coverage endorsement to a PAP in California?
provide liability coverage (excess) for any accident in Mexico with 25 miles of the us border
An umbrella policy:
provides broad excess liability coverage over one or more primary polcies
What would be the most optimal way to be sure your client, the owner of a commercial auto policy, would be able to obtain liability coverage exposures resulting from employee using their own vehicles in your client's business? To obtain liability coverage exposures resulting from employees using their own vehicle in your client's business?
purchase employer's non- ownership liability coverage in the commercial auto policy
All of the following are listed on a commercial liability declarations page, EXCEPT
rented to you limit
The CA insurance code
requires agents to keep records of any compensation they may have received for ther services involved with premium financing
One difference between a robbery peril and burglary peril is that he burglary peril:
requires physical signs of forcible entry or exit
Which of the following is an insurer's option when making a settlement with the insured under a personal auto policy?
return stolen property to the address shown in the policy
• It is vital that an insurance agent/broker fully assess analyze and review a particular risk in order to determine the proper insurance coverage needed. The least likely way to do this is to
review all coverage in their current insurance contracts as well as the premiums paid
Which of the following perils is covered by a "causes of loss-basic form"?
riot or civil commotion
Which of the following is best defined as "the taking of property from a person by someone who has caused or who has threatened to cause that person bodily harm"?
robbery
What is one of the principle rating factor under proposition 103 allowed for personal auto polices?
safety driving record
What is the term to describe the amount the insured must pay when the underlying coverage does not apply and the umbrella does apply but the insured must participate in part of the claim?
self insured retention
The negotiation of a policy involes which of the following
sending the propect an email suggesting that they buy a certain type of policy
The execution of a policy involes which of the following?
signing a covering note
A commercial property causes of loss forms do not cover any losses caused by
smoke damage from industrial operations
• The insurance code definition of "insurance broker" is
someone paid to transact insurance on behalf of another person, but not on behalf of the insurer
Which of the following losses would be covered under Dick's personal auto policy other than collision coverage?
someone shoots Dick's car rear window while the car is parked on the street overnight
The dwelling policy form that offers the broadest type of coverage is which of the following
special
• What type of insurance company has owners who are stockholder in company and who share in the profits of the company?
stock insurance companies
insurer's right to recover the payment of the claim after they paid the insured for their property losses a negligent 3rd party is know as,
subrogation
What would the commissioner likely do if an agent induces a client to co sign a loan
suspend the agent's license
Your HO3 insured wants to make sure he has liability protection against claims for false arrest, libel and slander. You should
tell him he should add the personal injury endorsement
An organization will cease too exsit as an entity eliglble to hold a liceense for all of the following reasons EXCEPT
termination of key employee
• With respect to premium finance compensation service which statement are /is true
the DOI require agents and brokers to maintain records of the compensation they receive for providing premium financing service for 3 years
What does it mean if an agent's license is inactive?
the agent cannot transact any insurance business for valid, active license is required
an insurance deductible is
the amount of covered expense that the insured pays before the insurer pays,
• For more serious offenses and conviction an application for a license can be denied without a hearing which of the following circumstances would allow for an application to be denied for an insurance license WITHOUT A HEARING
the applicant for the insurance has had no previous license denied for cause with previous 5 years
• Under which of the following circumstance can the insurance commissioner deny the application for an agents license without a hearing?
the applicant has previously has a licenses application denied for cause within the past five years
which of the following is the best definition of an insurer's loss reserve
the approximate dollar amount of an insurer's liability of at least one (or more)open claims
What is the primary medical payment coverage difference between a boat owners policy and HO3 policy?
the boat owners policy covers injuries to the people on the boat, and the HO3 covers injuries to other outside the home
In a commercial property policy, which causes of loss includes coverage for the peril of glass breakage?
the broad and special form
Plate glass coverage, which is found in a commercial property policy, (basic, broad and special cause of loss form), contains which of the following characteristics?
the broad and special forms have limited coverage for glass breakage
If an insured rents an auto while on vacation, what coverage if any will be available for physical damage coverage under a personal auto policy
the broadest coverage on any auto shown in the declarations
A personal auto policy contains the state required liability and medical payment coverage as well as "other-than- collision' coverage. How would a claim be paid if there were a loss after an insured is stolen and then wrecked
the claim would be paid under "other-than-collison" coverage
• An insurance company pays a loss and continues coverage under an auto policy under the following circumstances. An insured honestly thinking that he received his last traffic ticket more than 36 months ago. Applies for an auto policy stating that he has had not ticket or accidents in the past 36 months. Several days after the policy is issued the insured's car is stolen. While the claim is being processed the insurance company discovers that the insured had received his most recent traffic ticket for speeding 32 months ago. Why is the claim paid and the policy
the concealed facts were not material, they would paid the claims anyways
All of the following are true regarding the California standard form fire insurance policy, EXCEPT:
the content and wording of the policy is stated in the state insurance code
One of the major advantages to insured's of a commercial lines package program over purchasing coverage on a mono-line basis is:
the convenience of having all coverage in one policy
Steven's(unendorsed) personal auto liability coverage would pay for
the cost of repairing the neighbor's fence that Steven damage due to the negligent operation of his car
The personal auto policy towing and labor endorsement pays for
the cost of the labor only if the labor is performed at the place of disablement
Which of the following is not only reason that an insurer can cancel an automobile insurance policy?
the driver's license of the individual who usually operated the vehicle that is insured by the policy and who is insured by the policy has had his licenses suspended
• Which of the following is the only reason that an insurer can cancel an automobile insurance policy?
the driver's license of the individual who usually operates the vehicle that is insured by the policy and who is insured by the policy has had license suspended temporarily
Which of the following coverage parts is not found in standard commercial policy?
the dwelling property coverage part
The retroactive date of claims-made professional liability policy is always:
the earliest date an event/loss may occur and still be eligible for recovery
A claims-made professional liability policy contains a retroactive date. Which of these best describes this date?
the earliest date that a loss or event may occur and still be eligible for coverage under the policy
What is it about a liability policy that causes there to be a need for inland marine coverage
the exclusion for care, custody and control
Under the terms and conditions of the commercial package policy, who is responsible to make all premium payments, if there are four individuals named as insured's, which are all operating a business under a DBA, and are unincorporated
the first named insured
Who has the right to request cancellation of a commercial lines policy
the first named insured and the insurer
What is the coverage under a homeowners policy that is personal property of the insured, when personal property is away from the premises, while the insured is traveling anywhere in the world/
the identical coverage limits to that of coverage personal property on the premises
Ordinance or law coverage provides protection which of the following losses
the increased expense incurred for the insurer to repair or rebuild property according to building code specification
Where do most states require insurers to file policy forms?
the insurance department
The CA insurance code requires property insurance polices specify all of the following EXCEPT
the insured address
Define the term "we" as it is found in three types of property covered under a commercial building and personal property coverage form, specifically, business personal property
the insured as listed in the declaration page
The exclusion for liquor liability found in a commercial general liability policy excludes coverage for any liability claims that are the result of:
the insured being in the alcoholic beverage business
Which of the following choices is NOT covered under section 2 of a homeowners policy?
the insured being liable for a bodily injury to someone in the insured's immediate resident family
Which is a valid reason for an applicant to purchase a HO3 policy instead of dwelling policy?
the insured desires broader coverage
Your insured has a personal auto policy that provides medical payment coverage $2000. Of the following statements, which is true regarding the amount payable under this section of the policy?
the insured is car- pooling to work with her neighbor when they are in an accident. Both are injured and incur almost $3000 each in medical expenses. The insured and her neighbor would each be paid $2000 from the policy
All of the following loss exposures are covered under the liability section of a homeowner's policy, EXCEPT
the insured is using his new personal auto, fully registered and licensed, on his premises which includes a large parcel of undeveloped land
The phase "80% coinsurance" in the commercial property field refers to:
the insured must maintain insurance coverage equal to 80% of the value of the property as well as receiving a lower premium; otherwise a coinsurance penalty will be imposed in the event of a loss
An endorsement and an extra premium would be required for which of the following liability losses under a personal auto policy?
the insured regulary uses, at the permission of his employer, a company owned car and has an accident with the vehicle
The medical payments coverage found in a commercial general liability applies to which of the following categories of individuals
the insured's customers who are in the process of transacting business on the insured's premises
An automobile insurance company is permitted to cancel a personal auto policy for which of the following reasons?
the insured's drive license is suspended. This is the person that normally drives the vehicle
A standard "unendorsed" HO3 policy would cover which of the following types of losses/
the insured's furnitutre is damaged when it is removed from the insured's residence during the fire at the residence
The ordinance or law limitation in a homeowners policy may cause a gap in coverage in which of the following situations?
the insured's home is damaged by fire and must be rebuilt to meet present building codes. The additional cost of complying with the codes is 50%
the term "subrogation" refers to
the insured's right to recover payment from a responsible 3rd party
What is one of the main reasons the federal government insurance programs exist
the large amount of resources needed for some catastrophic losses
What steps need to taken to terminate a licensee's license that is in the possession of an employer?
the licensee needs to give written notice of intent to the insurance commissioner
Under a building and personal property coverage form, if the insured has been vacant for more than 60 consecutive days. What effect will this have on vandalism loss
the loss is excluded
Under abuilding and personal property coverage form, if the insured has been vacant for more than 60 consecutive days. What effect will this have on vandalism loss
the loss is excluded
• The word"materiality" applies to the concept of concealment and representation. Which of these is true in this regard?
the materiality of any information in this regard is determined by the influence of the fact on each party in determining their estimates of the disadvantages of the proposed contract
Which of the following is a true statement about CAARP
the minimum liability for CAARP policies are 15000/30000/5000
If the named insured has been charged with arson in reference to a total loss to the insured's building, what effect will the insured's action have on the mortgage holder's claim for damages?
the mortgagee is entitled to receive 100% of their loss
Fred is named insured on a commercial property policy insuring a commercial building. Fred burns the building down and is convicted of arson. Fred's commercial property policy conditions state that:
the mortgagee of the insured property can recover on this loss
The term "your was found in the definitions section of a commercial building and personal property coverage form referring to "your business personal property" is defined as which of the following?
the named insured from the declaration page, exclusive
Which of the following persons is not an insured under section1 of a homeowners policy?
the named insured's( non-resident) spouse
A single person does not own or lease an automobile. She occasionally drives her housemate's vehicle on an emergency basis. She is going on vacation and will have to rent a car. To obtain full automobile insurance coverage when this occurs, what should she purchase?
the named non-owned coverage endorsement
If an insured borrows a neighbor's vehicles to run a personal errand, how do the policies respond in the event of an auto accident?
the neighbor's policy is primary and the driver's policy is excess
What is one reason a person may purchase a dwelling policy instead of homeowners policy?
the owner does not reside in the dwelling
What is one reason a person may purchse a dwelling policy insyead of homeowners policy?
the owner does not reside in the dwelling
What is the primary difference between a HO2 and HO3 policy?
the perils insured against
In reference to the coverage's provided in basic form, the boat ownners policy is similar to what other policy?
the personal auto policy
In reference to the coverage's provided in the basic form, the boat owners policy is similar to what other policy
the personal auto policy
If an insured under a personal auto policy leaves a covered auto dealer for repairs, and the auto is involved in an accident while being test driven by employee of the dealer, how will the personal auto policy respond to liability claims
the personal auto policy is excess
State of California DOI minimums for liability coverage are $15,000 /$30,000/$5,000. An insured has an accident out of state that has higher financial responsibility limits than California. Which of these is true?/
the policy automatically provides the higher necessary limits without an extra premium
Under the liability portion of an unendorsed personal auto policy, what coverage is available if the named insured is operating a company car on a regular basis
the policy exclude this usage
Under the liability portion of an unendorsed personal auto policy, what coverage is available if the named insured is operating a company car a regular basis?
the policy excludes this usage
California has lower financial responsibility limits than most other states. If randy, a California personal auto policy insured, carrying minimum limits on coverage, has an accident in a state that quires higher limits then,
the policy will automatically provide the higher limits at no extra charge
An insured's vehicle is stolen. Following this the insured rents a replacement vehicles for two months until her auto is repaired by the insurer. Will her personal auto policy pay for the cost of the rental, and if so how?
the policy will pay all needed expense the insured incurs for the rental car to the stated limits found in the policy
Liability exposures that result from the location of a business in addition to the activities of that business, is known as which of the following?
the premises and operations exposure
It is a violation of CA insurance code to act as a producer for a non- admitted carrier unless
the producer is a surplus lines broker
It is a violation of the CA insurance code to act as a producer for a non admitted carreier unless
the producer is a surplus lines broker
• The California insurance code contains requirements concerning the requirements for name approval for all insurance licensees. These requirements included which of the following?
the professional designation "CPCU" is acceptable following the name of any fire and casualty underwriter
An unendorsed personal auto policy would cover which of the following under the liability coverage part?
the repair expenses that are needed to fix the damage to neighbor's fence that was the result the insured negligently driving through it while driving unsafely
When an automobile insurance policy is canceled at the request of the insured , and the insurance company keeps all earned premiums, in addition to an amount to an pay for overhead expense incurred by the insurer, it is referred to as what type of cancellation
the short rate type of cancellation
The coverage that is the broadest, is found in which of the following dwelling insurance contracts?
the special form
Section1 of a homeowners policy provides coverage for all of the following individuals EXCEPT
the spouse of the insured (not living in the same residence)
during the application process for a personal auto policy. the applicant says that he has not had any tickets or accidents. The insurance company accepts the risk and issues the policy. Shortyly after. the insured's vehicle is stolen resulting in the insurer paying the loss and canceling the policy. This despite the fact that they found out that the insured had received several traffic tickets that he neglected to mention. What is the reason for the course of action of the insurer
the traffic tickets that were not disclosed were not material. This is why the policy was not recinded and the claim was paid
the term "assignment" refers to
the transfer of the insured's interest in a policy to another party
What is the primary difference between umbrella and excess liability policies/
the umbrella covers most liabity exposure; the excess liability will cover only one line
"risk" is one of the most important terms in the insurance industry. How is it defined
the uncertainty of a loss
Newly acquired motorcycle are not automatically covered under a personal auto policy (PAP) because:
the unendorsed policy does not cover two wheeled vehicles
The los under a watercraft endorsement is covered if it arises out of:
the use of the watercraft for business party
What des ocean marine hull insurance cover?
the vessel itself
"other-than collision" coverage of personal auto policy covers which of the following types of losses?
the windshield of the vehicle is damaged while left overnight on a city street within 5 miles of the insured's residence
An agent who divert/comingles premium dollars for the agents's own use is guilty of
theft
The broadest form of crime coverage is:
theft
Which of the following types of crime insurance is the broadest in terms of coverage?
theft
"other-than-collision" coverage of a personal auto policy includes which of the following types of losses
theft of any of these would be covered
Which of these covered by an employee dishonesty coverage form?
theft of stock from the business, owned by the policyholder, by an employee
Under an unendorsed personal auto policy, transportation expense coverage applies to
theft only losses
A hoe is damages two hours after an earthquake, first by fire and then by fuel pipes bursting and causing an explosion. Under a homeowner's HO3 form:
there is coverage, but only for the damage caused by the ensuing fire and explosion
A home is damaged two hours after an earthquake, first by fire, then by fuel pipes bursting and causing an explosion. Under an HO3 form:
there is coverage, but only for the damage caused by the fire and explosion
A hoe is damags two hours after an earthquake, first by fire and then by fuel pipes burting and causing an explosion. Under a homeowner's HO3 form:
there is coverage, but only for the damge caused by the ensuing fire and explosion
What is one difference between a homeowners policy and dwelling policy for personal property coverage?
there is no appreciable difference
What is the difference between per accident limit in a split limits policy and single limits
there is no difference
What is the advantage to the insured of purchasing a commercial package policy instead of purchasing the coverage on a monoline basis
there is the convenience all coverage being contained in one policy, which typically contains package discounts
A homeowners policy contains liability insurance coverage under section 2. Which of these would be covered under this part of the policy/
these are all covered
In addition to paying legal damages, but without deducting from the policy's limits, which of these would be covered in a personal auto policy?
these are all covered in addition to the limits stated in the policy contract
Why is a newly acquired motorcycle not automatically covered under the tems and conditions of a persona auto policy?
these types of vehicles( motorcycles, and other types of non-automobiles) are not covered under a personal auto policy that is unendorsed
• Entitles or organizations that provide coverage for medical expenses in California are subject to the jurisdiction of the state department of insurance (with several exceptions) unless these entities or organizations can demonstrate that during the course of providing these services
they are subject to the, all of the above
Which of the following statement is true regading insurer with admitted status in California?
they may not use race color, religion, or national origin as condition to use higher rate
• The process of underwing a disability income insurance policy includes analyzing the risk associated with certain act ivies. Hobbies and hazardous sports. Therefore how does the California insurance code define and classify and act of an applicant who doesn't mention when applying for this type of insurance his recent interest and participation in bungee jumping
this is defined and classified as concealment
Your insured client has an auto policy with liability and collision coverage's. the insured experience an at fault accident the first time he uses the neighbor's truck which has liability coverage only. His PAP provides coverage and will pay for the entire loss since he was driving the truck
this is how the insurer would handle this claim.
The phase "aggregate limit" is found and defined in a commercial general liability policy. Which of the these is true about this limit?
this limit could reduce the products and completed operations
• How do insurance regulators view a statement made by an agent to a prospective insured that the dividends of an insurance contract are guaranteed each year?
this would be considered a misrepresentation
what is the main purpose of tort law
to determine financial responsibility for damage
What is the primary reason for co-insurance clauses in property polices
to encourage insured's to purchase coverages near the value of the property
Coverage under a comprehensive personal liability policy or a homeowners section 2 extends:
to the premises described and to the personal activities of the insured's on or off of the premises
Coverage under a comprehensive personal liabity policy or a homeowners section 2 extends:
to the premises described and to the personal activities of the insured's on or off of the premises
Under California insurance code a surplus lines broker
transact business only with non admitted insurers
What is an additional coverage provided by HO3 policy
tree, shrubs, and other plants
Global Electronics has a large piece of equipment that needs to be transported from their plant to their customer. They are using a rented U-Haul truck and one of their drivers is to make the delivery. What type of policy would be needed to cover this one time trip exposure?
trip transit policy
Which of the following does not have a standard coverage form in common use?
umbrella policy
Which of the following does not have a standard coverage form?
umbrella policy
Under a personal auto policy(PAP),how would the damage sustained to an insured vehicle as the result the insured smashing into a large fallen tree that had fallen several hours earlier as the result of a lightening striking is it covered?
under the collision section of the policy
Under a personal auto policy(PAP), how would the damage sustained to an insured vehicle as the result of an earthquake be covered?
under the other- than-collision section of the policy
Livery conveyance is best described as a
vehicle for hire to transport people
Which of these is not included in definition of the "uninsured motor vehicle" in a personal auto policy?
vehicles that are owned by an agency of the state that self-insures the vehicle
Which exclusion in the "causes of loss-special form" excludes coverage for mudflow
water(flood)
• All licensees must be appointed by the insurance companies they represent in order to sell the lines of insurance that a particular insurer may offer. Assuming that a licensed fire and casualty broker/agent has received the proper appointment
what type or types of insurance, from the following list, may this individual sell, auto, property insurance
If a property owner is insured under a building and personal property insurance form, when is the property considered vacant
when less than 31% of the building space is rented to other or in use by the insured
• When does the license of a fire and casualty broker- agent become inactive?
when the broker/agent has no appointment with any insurance company, but licensing renewal fee have paid and CE requirement have been met
• When does the authority to transact insurance that is granted to a licensee from an insurance company become effective
when the insurance company representative signs the notice of appointment
• All fire and casualty broker-agents must not only be licensed with the DOI but they must also be appointed with the insurance companies they will be representing. When does this authority resulting from the insurer appointment to transact insurance business become effective
when the notice of appointment is signed by the insurer
What is one the main factors that the insuruce commissioner uses while detereming whether a rate excessive or unfairly discriminatory?
wheter the rate mathematically reflects the insurance company's investment income
An individual is driving home from the store with a new 48- inch flat screen TV. An accident occurs and TV is destroyed. The driver carries a homeowners policy (HO) as well as a personal auto policy (PAP). Will the damaged TV be covered ? if yes , how?
yes under the personal property party of his HO policy
An individual is driving home from the store with a new 48- inch flat screen TV. An accident occurs and the TV is destroyed. The driver carries a homeowners policy (HO) as well as a personal auto policy (PAP). Will the damaged TV be covered? If yes, how?
yes, under the personal property part of his HO policy