Casualty Practice Test

which of the following is not a cause of loss form for commercial property coverage?

specific

alll the following are true regarding the cancellation condition of a policy except

the insurer must provide proof that the insured received the notice

For an additional premium, the extended coverages written on the basic form dwelling policy would cover which of the following?

riot

which symbol affords the broadest coverage

1

nfip floor insurance policies have a term period of

1 year

how many hours of prelicening education are required for an insurance agent licensed

20'hours

What is the waiting period for transportation expenses coverage for a loss other then theft of covered vehicle?

24 hours

If a deceased employee was living with surviving natural parents, they will receive

3,000

an insured was told to leave his home because of endangerment by a brush fire. how long will the homeowners policy provide coverage for the stored property?

30 days

Which of the following would not be eligible for coverage under a personal auto policy?

A vehicle purchased 90 days ago

which of the following exclusions would specifically fall under coverage e in homeowners insurance

Contractual liability

According to the Fair Credit reporting act, all the following statements are true except

If an applicant is declined for an insurance policy, he or she has no right to know what was in the report

How does insurance distribute the financial consequences of individual losses?

It transfers the risk to all persons insured

which is not true of workers compensation coverage?

Medical payments benefits are limited

Which of the following is not available for a package policy?

Professional liability

What is an insured contract?

Those contracts that are automatically covered under the exposure of premises coverage in a general liability insurance contract

which of the following risks would be eligible for coverage under a dwelling policy forms?

a duplex that is occupied by two families, each of which a bedroom rented to a boader

homeowners policies permits all the following incidentals occupancies except

a retail sales operation run by the insured garage

after a coverage loss on a homeowners policy, the insured must do all the following except

abandon the property involved to the insurer

which of the following entities is eligible for business owners policy?

convenience stores

Other than collision would cover financial losses due to

damages to the insured car caused by wind or hair

all of the following are optional endorsement that may be added to the standard equipment breakdown coverage except

debris removal

a homeowners policy conditions that states that insurance applies separately to each insured is known as

severability

an insured has the scheduled personal property endorsement attached to his homeowners policy. if the insured acquires new works of art, when must the insurer be notified for the new works of art?

within 90 days

medical benefits under workers compensation statutes are provided

without limit

what kind of coverage does form DP-3 provide?

open peril

which of the following exposures is not covered under a homeowners policy?

Medical payments to an insured

Agents may be found guilty of defamation if they make false statements that are intended to

Misinform prospective clients about policy coverages

What are the two sources for workers compensation insurance?

Monopolistic state fund and competitive market

which provisions defines how the policy will respond if there is other valid insurance written on the same risk

other insurance

Among the applicants in the same class and life expectancy, which of the following factors can be used to influence premium rates?

occupation

the state statue that gives to employees a definite remedy for injuries and diseases arising out of or suffered in the course of their employment, in exchange for the employees right to seek remedy against their employer, is known as the

exclusive remedy statute

under the farm property and livestock coverage forms, which of the following is covered for loss by the perils of earthquake or flood?

farm animals

premium collected on behalf of the insurance company by an agent will be held in what capacity?

fiduciary

to have insurable interest, what risks must the policyowner face in the event of a loss?

financial loss

What is the purpose of the motor carrier act of 1980?

to establish financial responsibility for interstate motor carriers

What amount of coverage is provided on HO policies for watercraft?

up to 2,000

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

when loss payments equal applicable limit of insurance

under coverage c, and the request of an insured personal property of a guest or residence is employee is covered

while it is in any residence premises occupied by an insured

business owners liability coverage automatically includes of the following liability coverages except

pollution

what policy would a business owner whose business fills scuba tanks most likely need to insure unfired pressure vessels and compressors

Equipment breakdown

according to the law of agency, insurance producers represent

Insurers

Insurance rates developed by the underwriters based on his skill and experience instead of actuarial analysis known as

Judgement rates

Upon payment for a loss, the insured is obligated to surrender to the insurer the right to sue a negligent third party. This is called

Subrogation

A trucking company truck is out of service for repairs. While making the delivery in a borrowed truck, the driver is responsible for an accident that causes $55k in PD to other vehicles and injured to 2 individuals. Under commercial auto liability, which policy pays for this loss?

The policy for the company that borrowed that truck will be primary, titled owner of the truck will be excess.

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

Twisting

The ownership of a vessel insured by ocean marine insurance changes while the vessel is at sea. When will the hull policy terminate?

Upon the ship's arrival at the final port

A house insured with a homeowners policy has been blown off its foundation by a tornado. It must be demolished and removed so a replacement house can be built. Which of the following is true about debris removal?

an additional 5% of the policy limit may be paid for debris removal

in DP-1, i'd the insured elects to apply coverage b to a detached garage, coverage a will

be reduced by 10%

all of these types of property may be covered on a farm property coverage except

growing crops

which of the following term refers to solicitation, negotiation, effectuation, or advertising related to an insurance contract?

insurance transaction

the garage coverage form is written to cover the insurance needs of the insured in the business of selling, repairing, servicing or storing automobiles, which of the following coverages are not included in garage coverage?

physical damage on the customers auto