exam based study property insurance
the regular national flood insurance program would insure an eligible single family dwelling for up to 150,000 200,000 250,000 100,000
250,000
benefits must be paid within how many days after the insurer receives proof of loss 365 30 60 90
60
in Businessowners policies which of the following additional coverage will require a deductible fire department service charge debris removal extra expenses business income
debris removal
how much is an agents appointment fee $500 $1 $100 $5
$5
how long is the policy period for NFIP flood insurance 6 months 10 months 1 year 2 years
1 year
which of the following individuals could qualify for a temporary insurance license a retired producer an employee of a deceased producer the designee of a producer that is called to active service the navy a deceased producers brother who is employed by the department of insurance
a designee of a producer that is called to active service with the navy
which of the following types of valuation works best for property whose value does not fluctuate much inflation guard agreed value market value stated amount
agreed value
How much is covered for debris removal under the HO property additional coverages nothing unless added by endorsement all reasonable costs 90% of the total cost of clean up everything after the $200 deductible
all reasonable costs
under the examinations of books and records condition the insurance company has the right to examine and audit the insureds books and records related to the policy during the policy period and up to 5 years after only after the policy period during the policy period and up to 3 years after only during the policy period
during the policy period and up two 3 years after
all of the following are found in the declarations section of a policy except exclusions policy premiums name of the insured limits of insurance
exclusions
which of the following policy provisions would automatically broaden coverage under a policy without requiring additional premium assignment liberalization other insurance subrogation
liberalization
which of the following insurance options would be considered a risk sharing arrangement stock mutual surplus lines reciprocal
reciprocal
robbery is taking of property without causing property damage or bodily harm any act of stealing taking of property from within the premises leaving visible signs of forced entry taking of property by the use of force, violence, or fear
taking of property by use of force, violence, or fear
which of the following is an example of a producers fiduciary duty a duty to base all transactions upon the principle of utmost good faith the obligation to tell the truth to the best of ones knowledge the trust that a client places in the producer in regard to handling premiums an obligation to state every known fact about the policy the producer is selling
the trust that a client places in the producer in regard to handling premiums
all of the following are other coverages included in both the broad and special form dwelling policy except laws trees shrubs and plants theft of personal property collapse breakage of glass
theft of personal property
all of the following are other coverages included in both the broad and special form dwelling policy except theft of personal property collapse breakage of glass lawns trees shrubs and plants
theft of personal property
which of the following statements is not true regarding mobile agricultural machinery and equipment coverage it relates to devices used in the everyday farm operation it covers detached berets and accessories of mobile devices it insures eligible equipment for open perils this coverage must be written as part of farm coverage
this coverage must be written as part of farm coverage
which of the following is not one of the available additional coverages in the builders risk form vandalism debris removal fire department service charge pollutant cleanup
vandalism
which of the following is not an optional coverage available in a Businessowners policy mechanical breakdown employee dishonestly workers compensation outdoor signs and exterior grade floor glass
workers compensation
which of the following is the correct formula for computing a loss ratio (incurred losses-loss adjusting expense)/earned premium loss adjusting expenses-incurred expenses (incurred losses + loss adjusting expense)/earned premium (incurred expenses + loss adjusting expenses)/ earned premium
(incurred losses + loss adjusting expense)/earned premium
an insurer may cancel a fire insurance policy at any time by mailing notice of the cancellation to the insured no less than how many days before cancellation is effective 5 7 10 15
10
an insured has a homeowners policy and is required to be a member of the homeowners association. the associations community house has burned down and the insured has been assessed 1200 for her share. how much will her homeowners insurance pay nothing 500 1000 1200
1000
what is the minimum civil fine per violation of the insurance code of this state 500 1000 2000 5000
1000
within what time period after completing relicensing education must an applicant file a certificate of education completion with the commissioner 30 days 90 days 12 months 2 years
12 months
within what time period after completion of the prelicensing education must an applicant file a certificate of education completion with the commissioner 30 days 90 days 12 months 2 years
12 months
if an insurer wishes to appoint a producer it must file a notice of appointment within how many days of the date that the contract is executed 30 days 45 days 7 days 15 days
15 days
an insured has a standard ho-4 policy with a 30000 limit of coverage for personal property. while traveling a fire in his hotel destroys clothes and luggage with a replacement value of 10,000 and jewelry with a replacement cost of 10,000. assuming a depreciation of 20% has occurred in both what amount is the insurer obligated to pay
16,000
an insurance producer licensed two represent one or more insurers must as a condition of licensure -provide a quote that would pay the highest commission to the producer -provide each eligible person seeking insurance the lowest available premium quote for the form or type of insurance coverage offered by the insurers represented -provide each eligible person a reasonably competitive rate for the form or type of insurance coverage offered by the insurers represented - provide each person seeking insurance a quote based upon maintaining balance of coverage written among the insurers represented
2
an insurance policy has been in force for over 55 days when it was terminated by the insurer. within how many days of policy termination must the insurer mail or deliver a notice of termination to the named insured 30 5 10 20
30
an insurance policy has been in force for over 55 days when it was terminated by the insurer within how many days of policy termination must the insurer mail or deliver a notice of termination to the named insured 30 days 5 days 10 days 20 days
30 days
jean owns a craft store. the protective safeguards endorsement of her bop requires the store to have a functional automatic sprinkler system. a winter storm freezes the pipes to the sprinkler system causing it to shut down. how many hours does jean have to restore the system before she must notify her insurer 12 24 36 48
48
all of the following are special personal property limits under a homeowners policy except $500 for business personal property on the insured premises $1500 for securities accounts deed and evidences of debt $1500for trailers not used with watercraft $2500 for theft of firearms
500 for business personal property on the insured premises
an insurer has received satisfactory proof of loss from an insured how many days does the insurer have to pay benefits 20 30 35 60
60
vandalism and malicious mischief would bee covered if the insureds premises have been vacant for no more than how many days 30 60 100 365
60
coverage under the builders risk form will end in all of the following except the insured has sold the property 60 days after construction ended construction has been abandoned 60 days after the building is occupied
60 days after construction ended
if a licensee does not earn 24 hours of continuing education by the license review date the license will be suspended for up to how many days 30 60 90 120
90
a person who has reason to believe that an insurer has improperly denied him or her insurance or has charged an incorrect premium for insurance is entitled to a private informal managerial level conference with the insurer a formal review with the producer of the record a review held by the judge of the circuit court all the above
a private informal managerial level conference with the insurer
ABC Corp has $100,000 of coverage on its building through insurance comp A and $50,000 of identical coverage on the same building through insurance B assuming coinsurance is not an issue when a $24,000 loss occurs and the pro rata method is used how much will each insurance pay a will pay 24,000 and b will pay nothing a will pay 16,000 and b will pay 8,000 a will pay $20,000 and b will pay 4,000 a pay will 12,000 and b will pay 12,000
a will pay 16,000 and b will pay 8,000
in which of the following types of property valuation will the policy pay the full value was specified on the policy schedule regardless of the insured property's appreciation or depreciation replacement cost stated amount market value agreed value
agreed value
which is not eligible for coverage under a homeowners policy an applicant who lives in a duplex that she does not own an applicant who owns and lives in a duplex an applicant who owns and lives in a single family dwelling that also contains incidents business activities an applicant who owns and lives on a commercial farm
an applicant who owns and lives on a commercial farm
an installation flatter is used to insure dams power plants water plants and other such installations appliances intended to become a permanent part of the building buildings under construction all types of for sale merchandise
appliances intended to become a permanent part of the building
which of the following describes the transfer of a legal right or interest in an insurance policy abandonment obligation legal purpose assignment
assignment
which of the following statements regarding coverage for the flood and earthquake perils is true the coverage is available in all policies the coverage is available only through government insurance flood insurance is provided in property policies and earthquake coverage is available by endorsement only both are excluded perils in all property policies
both are excluded perils in all property policies
the proposed insured makes the premium payment on a new insurance policy. if the insured should die the insurer will pay the death benefit to the beneficiary if the policy is approved. this is an example of what kind of contract adhesion personal unilateral conditional
conditional
the difference in the contents coverage on an ho-3 nd ho-5 is which of the following contents are covered for replacement cost on ho-3 and acv on ho-5 contents are covered open peril on ho-5 and named peril on ho-3 contents are covered open peril on ho-3 and named peril on ho-5 contents are covered for replacement cost on ho-5 and acv on ho-3
contents are covered open peril on ho-5 and named peril on ho-3
an individuals construction company leaves mobile equipment and construction machinery on the job site until the project is completed. what could this individual use to insure it contractors equipment floater bailees customer form builders risk form general property form
contractors equipment floater
which of the following property coverages would provide protection to contents damaged by fire coverage b coverage c coverage d coverage a
coverage c
what type of insurance can be obtained through a surplus lines insurer commercial coverage coverage that provides dividends coverage that is unavailable through authorized insurers
coverage that is unavailable through authorized insurers
which of the following examples of losses paid under an ho-3 also would be paid under an ho-2 homeowners policy interior damage caused by water seeping under the shingles on the roof damage to the dwelling caused by ash or dust from a volcanic eruption damage to the dwelling caused by the insured when moving furniture accidental scorching caused when a hot iron is placed upon a built in counter top
damage to the dwelling caused by ash or dust from a volcanic eruption
following a covered loss if the insured and the insurer cannot agree on the actual cash value of the loss then the amount of the loss will be set by appraisal if requested by the insured only either the insured or insurer the commissioner the insurer only
either the insured or insurer
expenses that an organization would not have incurred if business interuption has not existed are known as continuing expenses additional expenses all inclusive expenses extra expenses
extra expenses
the major portion of the premium for an equipment breakdown policy pays coverage for bodily injury and property damage of others for replacement parts for inspections and examinations for repairs after a loss
for inspections and examinations
replacement cost is defined as the market value of property of like kind and quality full replacement of property with like kind and quality less an allowance for physical deterioration and depreciation payment of the full policy limits In the event of a total loss full replacement of property at its current cost new and without reduction for depreciation
full replacement of property at its current cost new and without reduction for depreciation
what insurance concept is associated with the names Weiss and fitch index used by stock companies guides describing company financial integrity policy dividends types mutual companies
guides describing company financial integrity
how soon after a direct loss does the peril of restoration for extra expense coverage under Businessowners property insurance begin immediately within 24 hours within 48 hours within 72 hours
immediately
the commissioner may waive prelicensing requirements or examinations for someone who has been a licensed insurance producer in the preceding 2 years in the last 5 years any time in the past in the preceding 12 months
in the preceding 12 months
thee commissioner may waive prelicensing require, emts or exams for someone who has been a licensed insurance producer in the preceding 12 months in the preceding 2 years in the last 5 years any time in the past
in the preceding 12 months
the pro rata liability clause us designed to protect the principle of waiver and estoppel indemnity subrogation insurable interest
indemnity
an additional loss that results from a direct loss of property is called a indirect loss proximate loss liability loss punitive loss
indirect loss
which of the following is true regarding a risk retention group it is a liability insurance company owned by its members it provides support for underwriters and is not an insurance company it is a benefit society formed to provide insurance for members of an affiliated lodge it is a company owned by the stockholders that provides nonparticipating policies
it is a liability insurance company owned by its members
which of the following statements concerning the builders risk coverage form is correct it usually continues in effect for one year after completion of the structure it covers the interest of the builder only and cannot include coverage for the owner it may not be written for perils other fire and extended coverage it may be written on a reporting form for the completed value of the structure
it may be written on a reporting form for the completed value of the structure
all of the following are true of coverage b other structures in homeowners policies except it must bee added by endorsement to a homeowners policy this coverage is not applicable on the ho-4 policy form the amount of coverage provided by coverage b is an amount equal to 10% of coverage a land where the other structures are located is not covered
it must be added by endorsement to a homeowners policy
all of the following statements are true regarding employee dishonestly optional coverage under the Businessowners Policy except it provides coverage for all employees even those employees who were terminated in the past 90 days it provides coverage for direct loss or damage two business personal property losses result from dishonest acts of any of the insureds employees coverage includes all property including money and securities owned or held by the insured
it provides coverage for all employees even those employees who were terminated in the past 90 days
according to the nationwide marine definitions risks that may be the subject of inland married insurance include all the following except cargo transported by truck large pleasure boats property while stored at a warehouse shipments made by freight train
large pleasure boats
under the dwelling policy coverage c personal property is limited to covering a servants property while at the insured location automatically provided as 50% of coverage a a prohibited coverage in the dwelling form limited to 50%of the amount of insurance that is written as coverage a
limited to covering a servants property while at the insured location
according to the standard mortgage clause who has the right to bring a suit in their own name to recover damages pay policy premiums and submit a proof of loss governor policyholder mortgagee insurance company
mortgagee
a business using its own trucks to move its own cargo would insure the cargo using motor truck cargo carriers form motor carrier form trip transit coverage motor truck cargo owners form
motor truck cargo owners form
an insured purchased an insurance policy 5 years ago last year she received a dividend check from the insurance company that was not taxable this year she did not. from what type of insurer did the insured purchase the policy reciprocal nonprofit service organization stock mutual
mutual
During renovations to a home a roof opening is left exposed. a heavy rainstorm causes $20000 of damage to the interior of the home. how much would the ho-2 policy pay for damages nothing 4000 20000 80% of replacement cost
nothing
an insured has a personal property replacement cost endorsement under her homeowners policy if an expensive painting and an antique chair are stolen from the insureds home what will the insured receive on the claim under that endorsement 70% of the replacement costs 80% of the replacement costs 100% of the actual cash value nothing
nothing
a property insurance policy that insures a commercial building on a replacement cost basis includes the ordinance law coverage endorsement. this endorsement will cover all the following expenses except any increased cost of repairs or reconstruction demolition and removal cost ordinance with which the insured was required to comply prior to the loss loss to the undamaged portion of the building
ordinance with which the insured was required two comply prior to the loss
which of the following commercial crime coverages would cover a loss resulting forgo theft of the company's money and securities from the armored vehicle making a delivery inside the premises outside the premises forgery or alteration robbery and safe burglary
outside the premises
a building insured with commercial property insurance haas been vacant for more. than 60 days which of the following is not true the insured has no coverage for losses caused by theft the insured has no coverage for losses caused by glass breakage payment for unnamed perils is reduced by 15% payment for unnamed perils is reduced by 25%
payment for unnamed perils is reduced by 25%
a building insured with commercial property insurance has been vacant for more than 60 days which of the following is not true the insured has no coverage for losses caused by theft the insured has no coverage for losses caused by glass breakage payment for unnamed perils is reduced by 15% payment for unnamed perils is reduced by 25%
payment for unnamed perils is reduced by 25%
which of the following statements is incorrect with regard to surplus lines insurance business placed with surplus lines insurer is subject to a premium tax that must be collected by the broker policies written by a surplus lines insurer typically contain standard coverages and forms to sell surplus lines insurance the licensee must obtain a surplus lines brokers license before coverage is placed with a surplus lines company diligent effort must be made to place the risk with admitted insurers
policies written by a surplus lines insurer typically contain standard coverages and forms
after a loss an insured covered by a business property coverage is not required to reconstruct for the insurer a timeline of activities leading up to the loss for use in an investigation resume business operations as soon as possible send the insurer a sworn proof of loss within 60 days take all reasonable steps to protect property from further damage
reconstruct for the insurer a timeline of activities leading up to the loss for use in an investigation
following a career change an insured is no longer required to preform many physical activities so he has implemented a program where he walks and jogs for 45 mins each morning the insured has also eliminated most fatty foods from his diet what method of dealing with risk does this scenario describe
reduction
what method do insurers use to protect themselves against catastrophic losses indemnity pro rata liability risk management reinsurance
reinsurance
All of the following statements regarding a boat owners policy are true except -replacements for the boat listed in the declarations are automatically covered if the insured notifies the insurer within 60 days and pays the additional premium -watercraft liability protects up to specified limits for claims against a covered person for damages due to bodily injury caused by a watercraft -physical damage coverage is provided on an actual cash value basis -perils are insured on an open peril basis providing that the insurer will pay for direct and accidental loss to the property insured
replacements for the boat listed in the declarations are automatically covered if the insured notifies the insurer within 60 days and pays the additional premium
when the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss the coverage is said to be written as actual cash value specific insurancee stated amount replacement cost
stated amount
when the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss the coverage is said to be written as specific insurance stated amount replacement cost actual cash value
stated amount
all of the following people would be considered insureds under the liability section of a homeowners policy except the legal representative of a deceased insured the 22 year old niece of the insured who is visiting a 15 year old foster child residing in the premises the mother of thee insured who is residing in the household
the 22 year old niece of the insured who is visiting
how much is the premium for the dwelling under construction endorsement under the dwelling policy 50% of the actual value premium the average amount of insurance during construction 75% of the gross premium the full value of the house
the average amount of insurance during construction
all of the following are characteristics of the dwelling policy except dwellings up to 4 units are eligible the dwelling must be owner occupied coverage includes the dwelling only contents only or both incidental occupancy of limited service types exposure is permitted
the dwelling must be owner occupied
the common policy condition is a modular part combined with other parts to create the contract the common policy condition section contains provisions that are applicable to all limes pf coverage that may be included in the policy. Which of the following provisions would be found in the common policy conditions section of the policy -prior to the insurer making inspections surveys and reports relating to the insurance approval from the insured must be obtained -requests for any changes in the policy from the insured may be made by the second named insured -the insurer is granted the right to audit books and records of the insured relating to the policy form a period of up to 5 yrs after the end of the policy -the first named insured may cancel the policy at any time by giving written notice to the insurer
the first named insured may cancel the policy at any time by giving written notice to the insurer
the most the insurer will pay for a loss under a Businessowners Policy is the limit of insurance after the deductible is paid the amount of the loss minus the deductible 80% of the loss 20% of the loss
the limit of insurance after the deductible is paid
the business income coverage form covers consequential loss of business income that occurs when a business must suspend operations because of a direct loss . which of the following terms best describes the nature of this type of coverage claims made occurence direct damage time element
time element
which of the following is not a goal of risk retention to fund losses that cannot be insured to minimize the insureds level of liability in the event of loss to reduce expenses and improve cash flow to increase control of claim reserving and claims settlements
to minimize the insureds level of liability in the event of loss
which of the following endorsements could be added to a businessowners policy to protect against loss of income due to lightning striking an electrical grid making the business unable to operate utility services direct damage endorsement utility services time element endorsement named peril endorsement protective safeguards endorsements
utility services time element endorsement
