Casualty

What is the per occurrence limit for manuscripts, drawings, and records under computer fraud crime coverage?

$5,000

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

$60 - policy will pay $20 per day after 48 hours, not to exceed 30 days in total

According to the financial responsibility requirements set by the Motor Carrier Act of 1980, what is the minimum amount of insurance the company must carry for the transportation of nonhazardous property?

$750,000

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

1 year

1. If insurer cancels or does not renew, the claim and occurrence information will be provided how many days before the last day of coverage? 2. The first named insured may request the report in writing at any time up to how many days after the policy ends? 3. The insurer will provide the report within how many days of the request?

1. 30 days 2. 60 days 3. 45 days

A workers compensation policy cannot be cancelled prior to its expiration date unless a notice of policy cancellation has been sent to the insured at least how many days in advance?

10 days

How many years can a person be imprisoned for who engages in the business of insurance whose activities affect interstate commerce and who knowingly makes false material statements?

10 years

How many days after passing their state exam does an applicant have to apply for a license?

180 days

How long must an agent keep available a notice reporting an insurer's known deficiencies?

5 years

All of the following are supplemental payments included in the liability section of a personal auto policy EXCEPT: A. Up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident B. Up to $200 a day for loss of earnings due to attendance at hearings or trials C. Premiums on appeal bonds in any suit the insurer defends D. Up to $250 for bail bonds required because of a covered accident

A. A personal auto policy does not pay the cost of the release of a vehicle impounded by a law enforcement agency

The commercial general liability coverage form excludes bodily injury or property damage that the insured has assumed under any contract or agreement. However, the exclusion does not apply to certain types of contracts, as long as the injury or damage occurs

After the execution of the contract

What is a method of claim settlement used in casualty insurance when the insured and the insurer cannot agree on how to settle a claim?

Arbitration - arbitrator's decision is binding to both parties

Which of the following would be named on the declarations page of a property or liability policy? A. Additional insureds B. First named insureds C. Beneficiaries D. All insureds

B. First named insured is the individual whose name appears first on the policy's declaration

To be effective, a notice of cancellation must be filed with A. Wisconsin Highway Patrol B. Secretary of State C. Transportation Department D. Commissioner of Insurance

B. Secretary of State

Which of the following would be covered under a business liability insurance policy? A. Bodily injury to an employee covered by workers comp insurance B. Damage to a watercraft while on shore at the insured's premises C. Bodily injury resulting from environmental pollution D. Loss of electronic data due to a burglary

D. A watercraft parked or stored on the shore of an insured's premises would be covered under a business liability policy

The Broad Form Products Coverage endorsement in commercial auto policies does which of the following? A. Adds the defective products exclusion B. Removes property coverage C. Adds property coverage D. Removes the defective products exclusion

D. Removes the defective products exclusion - the broad form products coverage endorsement changes the liability coverage on a form, and removes the defective products extension (makes it ineffective)

Which of the following exposures is insured under Coverage I - Personal and Advertising Injury Liability? A. Failure of goods to perform B. Statements made by an insured during their farm radio show C. Breach of a written contract D. Unintentional acts arising from the operation of a farming business

D. Unintentional acts - Coverage I provides coverage for suits arising from the operation of a farming business, provided the specific act is not otherwise excluded.

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

Federal Employees Compensation Act

The principle of immunity in cancellation or insurance policies applies to who?

Insurers and their agents

If a guest's property is lost or damaged while on an insured's premises or in their control, Guests' Property coverage covers the insured's

Legal Liability

Extended nonowned coverage endorsement in a PAP broadens which coverage?

Liability and medical payments

To comply with requirements of insurance for public liability under the Motor Carrier Act of 1980, which endorsement is added to motor carrier coverage form?

MCS-90

Which type of company is owned by the policyowners and issue participating policies?

Mutual

A deli owner has a businessowners liability policy. When a customer slipped and hurt herself at the deli, the liability policy paid for medical expenses. The customer, however, is suing the business owner because she claims there was no caution sign warning her that the floor was wet. What is the insurer obligated to do?

Pay to defend the policyowner in the lawsuit because liability coverage contains a duty-to-defend provision

Any person, other than an officer or employee of the ceding insurer (the insurer who purchases reinsurance) who solicits, negotiates, or places reinsurance on behalf of an insurance company

Reinsurance broker

Any person who has authority to bind, or manages all or part of the assumed reinsurance business of a reinsurer and acts as an agent for the reinsurer

Reinsurance manager

Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages?

Special - the two classes of compensatory damages that may be awarded are special and general damages. Special damages are tangible damages that can be specifically measured in dollar amounts (such as out-of-pocket expenses for medical, miscellaneous expenses, and loss of wages).

Which symbol is available to an insured with vehicles subject to no-fault coverage?

Symbol 5

In insurance terms, what are components?

The factors that determine rates

All of the following situations would be covered under a professional liability policy EXCEPT

The failure of an attorney to properly defend a client due to his personal dislike of the client - intentional breach of duty would not be covered

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

The injury or damage must occur within 90 days after the insured's work is completed - there is no time limit on the injury or damage

A notice of nonrenewal of an auto insurance policy must contain:

The specific reason for the nonrenewal

The commercial auto coverage form that is designed for insureds engaged in the business of transporting goods for others is a

Truckers coverage form

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

When loss payments equal the applicable limit of insurance - claim-related expense is paid over and above the limit of insurance. Once the limit of insurance has been paid for the loss, the insurer has no further obligation to the insured.

According to the common policy conditions for a commercial package policy, if the insured dies, the policy rights and duties . . .

automatically transfer to a legal representative - The Insurance Services Office, Inc (ISO) common policy conditions for the commercial package policy states that in the event of the insured's death, rights and duties are automatically transferred to the insured's legal representative

Under the employee theft coverage, when a covered employee is found to have participated in a dishonest act, the coverage for that employee will terminate . . .

immediately

Agreement

offer and acceptance - there must be a definite offer by one party and the other party must accept this offer in its exact terms -offer=when the applicant submits the application -acceptance=insurer's underwriter approves the application and issues a policy

Unilateral

one-sided, only one party makes a promise - insured makes no legally binding promises but insurer is legally bound to pay a loss

Adhesion

only one party (insurer) prepares a contract, and the other party (insured) accepts it as is (non-negotiable)

Consideration

something of value that each party gives to each other -insured=payment of premium and the representations made in the application -insurer=promise to pay in the event of loss

Aleatory

unequal exchange of values - paying monthly vs getting paid out for a claim could be very unequal

A trucking company owns a large fleet of trucks that transport oil across state lines. According to the financial responsibility requirements set by the Motor Carrier Act of 1980, what is the minimum amount of insurance the company must carry on vehicles that transport oil and certain categories of hazardous waste?

$1 million

What is the maximum dollar amount an insurer will pay for loss to sound equipment permanently installed in a vehicle insured under a business auto policy?

$1,000

If an individual willfully violates provisions of the Fair Credit Reporting Act, what is the maximum civil penatly?

$2,500

What is the amount of deductible that applies to the per accident limit by the Broad Form Products Coverage endorsement in commercial auto policies?

$250 - Other than auto coverage in garage operations, coverage applies a $250 deductible to the per accident limit

A premium discount is the term that describes when an insured owes a total standard premium greater than . . .

$5,000

How many years will a person be imprisoned if they knowingly obtain information on a consumer from a consumer reporting agency under false pretenses? How much $ will they be subject to penalty for?

2 years, $2500

A surplus lines licensee must maintain records that are open and available for inspection by the Commissioner for how long after the termination of the contract?

3 years

In the event an insurer intends not to renew a commercial general liability policy, the insurer must notify the insured within how many days?

30 days

According to the Fair Credit Reporting Act, consumer reports are prohibited from reporting negative information about a customer after how many years?

7 years (10 years for bankruptcies)

If the Commissioner disapproves a form used by an insurer, the use of the form must be discontinued within the maximum of how many days?

90 days

Which endorsement under the commercial auto policy provides the insured's employees additional protection while using a vehicle not owned, hired, or borrowed for the insured business?

Employees as insureds

What method of premium computation relates an employer's losses, payroll, and premiums to the rating bureau's classifications of operations?

Experience modification factor