Checkpoint Exams (C)

The insurance limit for coverage B-Other structures is:

10% of Coverage A

Heather decided that she wants to have a second car to drive in the winter. She buys a new car and automatically has the same auto coverage as her other car. How many days does Heather have to notify the insurance company if she wants her coverage on the new car to continue?

14 days

Coverage J - Medical payments to others pays medical expenses incurred within how many years of the accident or injury regardless of who is at fault?

3 years

Which of the following represents the two options for the basic extended reporting period that are available and included free of charge under specific conditions?

60 days or 5 years

Which of the following losses would be 100% covered under Coverage C-Personal property?

A 1,250 fur coat that was stolen from the premises

Self-insured retention limits work like

A deductible

L&M Construction Company signs a contract with a developer to build an office building. The developer wants L&M to guarantee that the work will be completed in accordance with contract specifications. What type of surety bond does L&M need to comply with this request?

A performance bond

What is NOT a defense against negligence?

Absolute Liability

Included losses in the covered cause of loss special form:

Accidental shooting of livestock

Which of the following losses would be covered under the products-completed operations coverage of the commercial general liability coverage form?

After a plumber installs a new sink in an office building, the sink falls from the wall, injuring one of the office workers

Which of the following liability limits is not applied on a per-occurrence basis?

Aggregate Limit

Participating insurance companies have agreed to share the risk of insuring individuals with poor driving records. This voluntary agreement is called:

An assigned risk plan

In order to call a CPP a package policy, it must include:

At least one property and one casualty coverage form

In a commercial inland marine policy, the property's value is determined:

At the time of the loss

NOT included in the basic farm property cause of life form?

Attacks on covered livestock by wild animals

In general, which of the following is included in a liability policy?

Bodily injury to another person caused by the insured

James broke windows and entered a TV and appliance store with a gun and stole two televisions. This is an example of

Burglary

Which of the following coverage forms is used to insure the private passenger and commercial exposures of all businesses other than garages, truckers, and motor carrier?

Business auto coverage form

Which of the following is a common commercial property coverage form?

Business income form

Which of the following Section II liability endorsements provides coverage for business conducted away from the residence premises?

Business pursuits endorsement

Which of the following offenses is covered under Coverage B of the commercial liability policy?

Calling a competitor a fraud

Which of the following additional coverages is only included in a certain homeowners form?

Collapse (included in HO-2, 3, 4, and 6)

Which of the following fidelity bonds would cover a loss arising from the dishonesty of one or more employees acting separately or together without listing their specific name or position?

Commercial blanket bonds

The phrase "put to its intended use" describes

Completed operations

According to the other insurance condition, which of the following are the methods used to decide how the claim will be divided?

Contribution by equal shares or contribution with limits

Heather, the insured, was texting and driving and caused an accident that injured a passenger in another vehicle. The passenger in the other vehicle cannot be held liable for any damages. Which of the following defenses of negligence confirms this statement?

Contributory Negligence

Which of the following coverage applies to the personal property owned or used by an insured and is included in all homeowners policies

Coverage C

The insured's home is severely damaged by a covered loss and must stay in a hotel for a month. Which coverage will pay for the hotel expenses?

Coverage D

Which of the following pays all necessary medical expenses to others incurred within 3 years of an accident that causes bodily injury?

Coverage F

Which of the following coverages covers farm personal property on a blanket basis on or away from the insureds location?

Coverage F- unscheduled farm personal property

When an insured adds a scheduled personal property endorsement to a homeowners policy:

Coverage is provided on an open peril basis

Coverage that is triggered when a claim is first made against the insured, regardless of when the injury took place, is known as

Coverage under the claims-made form

When an insurer is settling a physical damage claim for a total loss, the insurer will consider which of the following when determining the actual cash value?

Depreciation and physical condition

Included in the basic farm property cause of loss form:

Earthquake or flood loss to livestock, explosion, and smoke

Which of the following coverage forms is designed to cover dealers of mobile and construction equipment?

Equipment dealers coverage form

What would not be eligible for coverage under a homeowners policy?

Farm Dwellings

Tom and Cindy rent a space from a landlord to run a restaurant business. They negligently left candles burning at the restaurant one evening and caused a fire in the building. Under which general liability exposure would the loss most likely be covered?

Fire legal liability

Losses resulting from fraudulent instructions to a financial institution to pay money from an insured's account are covered by which of the following crime insurance coverage forms?

Funds transfer fraud

Which of the following is an example of a commercial casualty form that can be included a CPP?

General liability

The insured is renting a residential condominium. If the condominium owner requires all her tenants to buy insurance, which homeowners policy would the insured purchase?

HO-4

Which unendorsed policies provides open perils coverage on coverage C - Personal property?

HO-5

Supplementary payments of the homeowners policy Section II are paid:

In addition to the limit of liability

For a homeowners policy, which one of the following statements about insuring personal property normally kept at a residence other than the residence premises is CORRECT?

It is covered for up to 10% of the Coverage C limit

What is the purpose for MCS-90, the endorsement for motor carrier policies of insurance for public liability?

It provides proof that the company carries an amount of insurance required by law

Fiduciary bonds and court bonds are both a type of

Judicial bond

Kurt works for a jewelry store and his sole responsibility is to have care and custody of all of the property inside the store. Which of the following terms describes Kurt's role?

Kurt is a watchperson

All of the homeowners forms provide identical:

Liability coverage

Which of the following is NOT a common exclusion that applies to Coverage E and F in a homeowners policy?

Liability sustained while on an insured's premises with permission

Which of the following crime forms covers losses that occur during a policy period and are discovered either during the policy period or up to one year after?

Loss sustained form

Peril's covered under the personal property coverage in the HO-3 Special Form:

Malicious mischief, freezing, and hail

Which of the following limits of liability in commercial general liability policy is the most that will be paid for Coverage C because of bodily injury sustained to one person?

Medical Expense Limit

Judy arrived home from work one afternoon to find her jewelry box open and five pieces of gold jewelry missing. She knows that she did not wear the jewelry and it was there in the morning before she left. This is an example of

Mysterious disappearance

Which of the following personal auto policy endorsements may be issued to someone who does not own a vehicle but drives rented autos?

Named non-owner coverage endorsement

Jimmy was driving over the speed limit and almost caused a major accident. According to the definition of establishing negligence, Jimmy would be

Not legally liable

A retroactive date may provide coverage even if an occurrence took place prior to the effective date of the policy. An incident that leads to a claim must have occurred...

On or after the policy's retroactive date

Which of the following forms is designed for companies that transport their own goods and provides direct damage coverage instead of liability coverage?

Owner's goods on owner's truck form

Nia accidentally closes her car door on her fingers. Which coverage, if any, in the personal auto policy would cover the expenses arising out of this injury?

Part B

The personal auto policy included both property and liability coverages. Which of the following provides property coverage?

Part D

The standard mortgage clause specifies the rights and duties of the mortgagee which include:

Paying the premium if the insured fails to do so

Part D: Coverage for Damage to Your Auto covers all of the following (other than collision, collision, and direct and accidental loss to the covered auto) EXCEPT:

Personal property in the vehicle

The garage coverage form includes the following coverages:

Physical damage (property), garagekeepers (property), and liability (casualty)

Which of the following ways does ABC homestore cover its employees for theft if only certain jobs within the business are covered and the actual names of employees that fill those positions are not listed?

Position Scheduled

Marcus, an employee at the Beautiful Home Gift Store, dropped and broke a customer's purchase while carrying it to the customer's car. The resulting loss would be considered which of the following under the store's commercial general liability policy?

Premises-operations

What is the correct formula used to calculate actual cash value?

Replacement cost minus depreciation cost

George just returned from Europe with a beautiful Swiss watch valued at $10,000. He is concerned that his homeowners policy will not provide enough coverage. His insurance agent suggests that he add which endorsement to adequately cover his watch?

Scheduled personal property endorsement

Which of the following losses would be covered under the premises and operations coverage of the commercial general liability coverage form?

Scott, a construction worker, drops a pallet of bricks onto the hood of a vehicle parked at a job site

Garagekeepers insurance covers damage to property a customer leaves with the insured for:

Servicing, parking, and storage

Joyce was driving too fast on a busy highway during a snow storm. She caused a collision and totaled Ray's car. Ray suffered from a broken leg, broken arm, and lost wages after having to miss work for 6 weeks. Ray's specific and provable expenses are called

Special Damages

Customers autos left with the insured for service, repair, storage, or safekeeping is covered by

Symbol 30

An insured owns and uses trucks, trailers, buses, and motorcycles in the course of doing business. Which symbol covers this exposure?

Symbol 4

The most restrictive symbol is ___, because it applies only to specifically described autos listed in the declarations

Symbol 7

Which symbol is used for leased or rented autos?

Symbol 8 (Hired autos)

Patrick's Widget Company has a small fleet of owned cars used by local salespeople. Most of the salespeople, however, travel to other cities and rent cars to make sales calls. Which coverage should Patrick include on his commercial auto policy to cover this exposure?

Symbol 8 - hired autos only

A & A Glass company needs coverage for autos used in its business that are not leased, hired, rented, or borrowed. It also wants coverage on autos that are owned by its employees and used for business purposes. Which of the following symbols should be listed on A & A Glass company's declaration page?

Symbol 9- nonowned autos only

ABC insurance company and Mr. Smith, the insured, cannot agree on a claim settlement amount, so they each hire an appraiser. How does the dispute get resolved.

The appraisers select an umpire and the decision of two out of three is binding

The transfer of rights and duties under this policy condition is sometimes referred to as

The assignment clause

Who gets paid in a bailee policy?

The bailor

Which of the following common policy conditions states that only the first-named insured is authorized to make changes in the terms of the policy with the consent of the insurance company?

The changes condition

Brandon and Tiffany leave their wedding attire at local dry cleaners to be cleaned before their big day. In a bailee policy, which of the following statements is CORRECT?

The dry cleaner is the bailee

Under the cancellation condition, the insurer can cancel for any reason with 10 days written notice to the insured during

The first 60 days of a policy term

According to the out-of-state coverage provision in a personal auto policy, while temporarily driving in another state the insurer will pay

The higher amount of the insureds liability policy limit or the state's minimum liability requirements

What are the main advantages to the insured if the homeowners policy is a package policy?

The insured is less likely to have gaps in coverage by having property and liability insurance in one policy

Josephine has a $100,000 loss to her dwelling. She has insurance greater that 80% of the replacement cost and also agrees to replace the damaged property. Which of the following explains how the insurer will pay the HO-2 claim?

The insurer will pay replacement cost

The personal auto policy uses the words you and your in the declarations. This is referring to:

The named insured and resident spouse

Unlike surety bonds, fidelity bonds are purchased by

The obligee

Ricardo, the insured, is in a hurry to get to work. He fails to stop at a stop sign, speeds through an intersection, and strikes another vehicle injuring the passenger. The injured passenger sues Ricardo for the injuries she sustained. In this example, who is the third party?

The passenger

Nick and Melissa bought a homeowners policy and due to their special needs they attached an endorsement to the policy. The endorsement will override any exclusions that apply to Nick's business activities conducted at their home. Which of the following endorsements did they purchase?

The permitted incidental occupancies endorsement

Ken's Auto Shop had an occurrence form policy that expired on March 15. He obtained a new policy with a different insurance carrier on March 16. A customer was injured while in his shop on March 1 and waited to file a claim until March 30 because his injury got progressively worse. Which insurance policy would cover this claim?

The policy that expired on March 15 would cover the claim

Which of the following is found in the common policy conditions for a CPP?

The responsibilities and obligations of the first name insured

What would be covered under collision coverage?

The vehicle slid on ice and hit a tree

Which of the following crimes is described as taking of property by stealth?

Theft

Bob's Bait and Tackle has one or two large shipments each year he needs to insure. Which of the following property in transit policies should he purchase?

Trip transit policy

Insurance that provides additional liability over and above other owned policies and also covers some losses that are excluded by the underlying policy is known as:

Umbrella insurance

Which of the following coverages pays the difference between the insured's actual damages for bodily injury and the amount of liability insurance that the insured could collect from the at-fault driver?

Underinsured motorist coverage

Covered Auto: personal auto insurance follows the:

Vehicle, not the driver.

Jordan delivers lunches for the local deli, using his employer's vehicle. He is on his cell phone and swerves into oncoming traffic which causes an accident, injuring the driver and passengers of another vehicle. Jordan is directly liable for the accident. What type of liability, if any, might his employer incur?

Vicarious liability

Covered if the insured has broad peril coverage:

Weight of ice, sleet, or snow / Explosion / Falling objects

If the named insured is listed on the declarations pages as William Smith, an individual, which of the following individuals would be included as insureds in the commercial general liability policy?

William's wife Sofia who does accounting for his business

Covered causes of loss-special form for farms covers:

drowning of covered livestock, wild animal attacks on covered livestock, and electrocution of covered livestock

The term occupying includes:

getting into, onto, out of, or off a vehicle, being in a vehicle, and being upon a vehicle.