EXAM FX MISSED ANSWERS

For how long after the death of the named insured must basic property insurance continue coverage? a. 30 days b. 90 days c. 180 days d. 1 year

c. 180 days

What is the term entity that an agent represents regarding contractual agreements with third parties a. designee b. insured c. principle d. client

c. principle

Pass Insurance sells a lot of crop insurance, Because they sell crop insurance, they are reinsured by who? a. the NAACP b. the FFA c. the FCA D. the FCIC

D. the FCIC

The National Do Not Call Registry was created to regulate a. Telemarketers b. field underwriters c. insurers d. insurance solicitors

a. Telemarketers

What is the highest level of protect available under a Federal Crop Insurance policy? a. 75% b. 65% c. 50% d. 100%

a. 75%

To comply with requirements for insurance for public liability under the Motor Carrier Act of 1980, which endorsement is added to motor carrier coverage form? a. MCS-70 b. MCS-90 c. MCS-80 d. garage

b. MCS-90

If an insurer terminates a producers appointment, the commissioner must be notified with in how many days? a. 10 b. 30 c. 60 d. 90

b. 30

A 100k house insured on a policy with 80% coinsurance requirement has a fire that cause 40k of damage, the owner has a policy with 60 k coverage. How much can the owner collect for his loss? a. 20k b. 30k c. 40k d. 60k

b. 30k

A specific coverage is listed on the commercial package policy declarations page, but there is no premium shown. What does that mean? a. coverage is automatic b. there is no coverage c. coverage applies with out premium d. this must be a misprint on the form

b. there is no coverage

What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine? a. 20 k all expenses incurred during a 12 month period b. 5k for all expensed insured during a 12 month period c. 10k for all expenses incurred during a 12 month period d. 15k

c. 10k for all expenses incurred during a 12 month period

Which bonds guarantee that the recipients of permits will comply with the ordinances associated with the use of such permits? a. injunction bonds b. nature of fidelity bonds c. license and permit bonds d. judicial bonds

c. license and permit bonds

Which coverage would a business owner need in a crime policy to cover money that may be stolen from a messenger? a. commercial general liability b. safe burglary c. outside the premises d. fidelity bond

c. outside the premises

What type of coverage is coverage E in Home owners policies? a. loss of use b. personal property c. personal liability d. additional coverage

c. personal liability

The ABC corporation has 100k of coverage on its building through insurance company A, and 50k of identical coverage on the same building insurance company B. Assuming co insurance is not an issue, when 24k loss occurs and the pro rate method is used, how much will each insurer pay. a. Company A will pa 20k, company B will pay 4k b company A will pay 12k, company B will 12k c. Company A will pay 24k, company B will pay $0 d. Company A will pay 16k , Company B will pay 8k

d. Company A will pay 16k , Company B will pay 8k

Which part of an insurance policy covers claims- related expenses, reasonable expenses incurred by an insured to protect property from further loss or defense expenses? a. exclusions b. declarations c. insuring agreement d. additional coverage

d. additional coverage

Which insurers are required to participate in the PA automobile insurance plan ( assigned risk plan) a. all domestic insurers b. only those that volunteer to provide coverage c. all insurers authorized to write insurance in the state d. all insurers authorized to write auto liability

d. all insurers authorized to write auto liability

In the event of a loss covered buy the policy, of the insurer requests a signed sworn proof of loss, the named insured is required to submit it within a. 1 year b. 5 business days c. 30 days d. specified time

d. specified time

What is the civil penalty for the first violation of the PA insurance faired prevent act a. 1k b. 5k c. 10k d. 15k

b. 5k

which of the following is true regarding continuing education required for this holding PA producer license a. 12 hours each annual period b. continuing education is optional c. varies from insurer to insurer d. 24hours each licensing period

d. 24hours each licensing period

To avoid violations of unfair claims settlement regulations required to acknowledge the receipt of a claim with in how many days? a. 10 days b. 15 days c. 30 days d. 45 days

a. 10 days

A contract for the transport of goods between the shipper and the carrier is called a. a bailment b. a binder c. a bill of sale d. a bill of lading

d. a bill of lading

Which of the following entities established the Do Not Call registry? a. the better Business bureau b. the NAIC c. the consumer protection agency d. the federal trade commission

d. the federal trade commission

An insured accounts receivable records have been damaged. The loss may be covered with a. Commercial property Insurance b. the commercials articles coverage c. the valuable papers coverage form d. the accounts receivable coverage form

D. the accounts receivable coverage form

Which of the following would be included in the farm liability coverage form? a. Bodily injury to residence employee b. any obligation of the insured under a worker compensation law c. bodily injury to any person who is an insured d. bodily injury to an employed farmer land

a. Bodily injury to residence employee

The policy conditions define a. how parties to the contract must act following a loss b. the basic underwriting information

a. how parties to the contract must act following a loss

The Business income coverage from covers consequential loss of business income that occurs when a business must suspend operations because of direct loss, Which of the following terms best describes the nature of this type of coverage a. occurence b. direct damage c. time element d. claims made

c. time element

Johanna purchased a National Flood Insurance policy 10 days after her community entered an emergency program. When would her coverage be effective? a. 30 days after application has been accepted b. 12:01 pm on the 5th day after the endorsement request has been mailed c. 5 days after the application and premium payment are mailed d. 12:01 am the day after the application and premium payment are mailed

d. 12:01 am the day after the application and premium payment are mailed

A home owner sells his house to a friend. The friend wants to keep the homeowners current policy in effect. Under the assignment provision, which of the following is most likely? a. the policy will have to be cancelled b. the homeowner should let the friend take over the premium payments c. the friend will have to apply for coinsurance from another insurance company d. the homeowner will need to get written consent from the insurer before the policy can be reassigned

d. the homeowner will need to get written consent from the insurer before the policy can be reassigned

Which of the following statements is true concerning a bonded contractor who defaults on a construction performance contract? a. the surety may cancel the bond avoid paying any losses or expenses b. the contractor will lose his license to operate in the state c. the principal ha son obligation to complete any remaining work or to pay for expenses d. the obligee may engage contractor and then seek reimbursement from the surety

d. the obligee may engage contractor and then seek reimbursement from the surety

When a producer died his surging spouse needed to maintain the insurance agency until it could be sold. Without testing, she could qualify for a temporary license for a maximum period of a. 90 days b. 180 days c. 1 year d. 2 years

b. 180 days

According to the loss payment condition in HO policies, losses must be paid with how many days of the insurer receiving proof of loss? a. 3o days b. 60 days c. 90 days d. 120 days

b. 60 days

If a licensed person is moving to Pennsylvania, he or she may become licensed as a resident if they submit a completed application within how many days of establishing residence in Pennsylvania with proof of licensing from their prior home state? a. 60 days b. 90 days c. 180 days d. 30 days

b. 90 days

Which of the following authorities is authorized to issue a temporary insurance producers license? a State Insurance board b. Commissioner c. NAIC

b. Commissioner

Which of the following terms refers to other insurance that is written on the same risk but not on the same coverage basis? a. Contribution by equal shares b. Non concurrency c. primary and excess d. pro rata

b. Non concurrency

Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract? a. representation b. Warranty c. concealment d. indemnity

b. Warranty

What is a Certificate of insurance? a. a written document allowing the insurer to inspect the insureds books b. a written document showing the types and amounts of Insurance that have been issued to the insured c. a written document obligating the insurer to the person to which the insurance was issued d. a written document among the insured beneficiary

b. a written document showing the types and amounts of Insurance that have been issued to the insured

which of the following does a producer NOT have the authority to do? A. negotiate contracts of insurance b. issue policies c. deliver policies d. solicit Insurance contracts

b. issue policies

Dwelling coverage includes all of the following EXCEPT a. building and outdoor equipment used to service the described location b. land on which the dwelling is located c. the dwelling used principally d. materials on the described location used alter or repair the dwelling

b. land on which the dwelling is located

A policy condition that states if a policy is broadened with no additional premium then the expanded coverage will be automatically applies to all policies if the same type is known as a. limit of insurance clause b. liberalization clause c. maximum indemnity clause d. loss control clause

b. liberalization clause

The term "fiduciary capacity" refers to producers a. need to keep policy holders personal information confidential b. position of financial trust to clients and insurance company c. responsibilities to communication the policy holders need to the insurer d. Responsibility to report a policy holder claims to the insurer

b. position of financial trust to clients and insurance company

The party to surety or fidelity bond who promises to fulfill the obligation is the a. obligee b. principal c. custodian d. surety

b. principal

All of the following are additional causes of loss included in the broad form of a commercial property policy EXCEPT a. water damage b. replacement cost c. falling objects d. eight of ice, snow, or sleet

b. replacement cost

Robbery is a. taking of property from with the premises leaving disable signs of forced entry b. taking property by use of force, violence or fear c. taking of property without causing property damage or bodily harm d. any act of stealing

b. taking property by use of force, violence or fear

Which of the following statements is true regarding a mobile equipment endorsement in commercial auto auto policies? a. mobile equipment is covered for property insurance b. the endorsement is available for additional premium c. the endorsement is automatic d. liability coverage is not provided on equipment that is being towed

b. the endorsement is available for additional premium

Under the provisions of the business income coverage form all the following EXCEPT a. the insured is reimbursed for payroll that continues after the loss begins b. the insured is reimbursed for the loss from the date of loss to the date of loss to the date restoration or policy expiration date, whichever comes first c. if the insured and insurer are unable to come to agreement as to the value of loss, either party may make appraisal d. the insured agree to resume all or part of operation as quickly as possible

b. the insured is reimbursed for the loss from the date of loss to the date of loss to the date restoration or policy expiration date, whichever comes first

A policyholder has an equipment breakdown policy with a 200k limit, If a boiler explosion causes 100k damage to the boiler itself 50k damage to the insured building and 30k of expediting expenses, how much will the insured collect under the policy? a. 200k b. 100k c. 175k d. 180k

c. 175k

A producer licensed in PA must notify the Insurance Department of any change of address in his or residence or business address within how many days? a. 15 b. 20 c. 30

c. 30

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? a.n 10 days b. 3 days c. 5 days d. 7 days

c. 5 days

What is the maximum length of time that an employee who is partially disabled can receive loss of time benefits under Workers Compensation? a. 104 weeks b. 156 weeks c. 500 weeks d. 1 year

c. 500 weeks

Which of the following would NOT be considered an exception to the National Do Not Call List? a. Calls which are not commercial or do not include unsolicited advertisements b. calls by or on behalf of tax exempt non profit organizations c. calls based from outside of the United States d. Calls for which the consumer has given prior written permission

c. calls based from outside of the United States

Which commercial crime from would provide coverage for a loss did not necessarily happen during the policy period but was revealed during the policy period? a. reporting form b. loss sustained form c. discovery form

c. discovery form

According to the standard workers compensation and employer liability policy form, a state should be listed in Part Three - other states Insurance of the workers compensation and employers liability policy when. a. the insurer is not licensed to write workers compensation in that state b. the state had a monopolistic workers compensation fund c. the insured expects to extend operations to that state d. the insured has operations in that state where the policy is written

c. the insured expects to extend operations to that state

All of the following are supplemental payments included in the liability section of personal auto policy EXCEPT a. premium on appeal bonds in any suit of insurer defends b. up to $250 for bail bonds c. up to $100 for the cost to secure the release a vehicle from an impoundment lot following a covered accident.

c. up to $100 for the cost to secure the release a vehicle from an impoundment lot following a covered accident.

Which inland marine coverage condition states that payment of any claim will not reduce the limit of Insurance, except in case of a total loss on scheduled item? a. legal action against the insurer b. privilege to adjust with the owner c. transfer of rights of recovery d. Reinstatement of limit

d. Reinstatement of limit

For how long must a company maintain a complete file of all advertisement used? a. 90 days after the advertisement is first used b. 30 days after the advertisement expires c. no more than 3 years d. at least 4 years

d. at least 4 years

How often must the commissioner examine rating organizations? a. annually b. every 2 years c. every 3 years d. every 5 years

d. every 5 years

Replacement cost is defined as a. the market value of property like kind and quality b. full replacement of property with like kind and quality, less an allowance for physical deterioration and deprecation c. payment of a full policy limit in the every of a total loss d. full replacement at its current cost, new and without reduction for depreciation

d. full replacement at its current cost, new and without reduction for depreciation

What provision in property policy applies when the insurer broadens coverage but does not increase the premium? a. insuring clause b. appraisal clause c. subrogation clause d. liberalization clause

d. liberalization clause

Which of the following is NOT a jury of the employer/ insured if an injury occurs at the workplace? a. provide immediate medical care required by the law b. notify the insurer at once c. provide the name and address of the injured worker and nay witnesses to the injury d. make voluntary payments for treatment of the workers injury

d. make voluntary payments for treatment of the workers injury

All of the following would be considered rebating EXCEPT A. an agent misrepresents policy benefits to convince a policy owner to replace policies b. an agent offers the use of his lake house to a client as an inducement to buy an insurance policy from him c. an agent offers to share his commission with policy holder d. an agent offers tickers to a baseball game as an inducement to buy insurance

A. an agent misrepresents policy benefits to convince a policy owner to replace policies

Elaborate homes and those with detailed designs or decorative architecture with replacement costs greater than ACV or market value are insured on a. HO-8 b. HO-8 with an inflation guard endorsement c. HO-3 d. HO-3 with an HO-15 endorsement

a. HO-8

On participating Insurance policy issued by a mutual insurance company, dividends paid to the policy holders are a. not taxable since the IRS treats them as a return of a portion of premium paid b. paid at a fixed rate every year c. taxable as ordinary income d. Guaranteed

a. not taxable since the IRS treats them as a return of a portion of premium paid

The insured's mother-in-law broke her leg falling down the front steps of the insured's premises. The insured's homeowners medical payments coverage will a. share equally in the cost with the mother in law b. apply to injuries of any guests or visitors c. pay as excess over the mother in laws insurance d. pay only if the mother in law has no health insurance of her own

b. apply to injuries of any guests or visitors

Under the Motor Vehicle financial responsibility Law, First Part benefit would NOT be denied which of the following injuries? a. injury that was intentionally self inflicted b. injury incurred while the person was under the influence of drugs or alcohol c. injury incurred while attempting to elude apprehension by law enforcement d. injury incurred during the commission of a felony

b. injury incurred while the person was under the influence of drugs or alcohol

Which of the following is the federal body that regulate truckers who travel across state lines? a. truckers and trade commission b. Federal Trade commission c. Federal Motor Carrier Safety administration d. Motor carriers commerce agency

c. Federal Motor Carrier Safety administration

if an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCPET the applicants a. Habits b. prior insurance c. ancestry d. credit history

c. ancestry

What type of coverage do umbrella policies provide? a. property coverage fort h basic perils of fire, wind and hail b. primary coverage for risks that are difficult to insurer c. excess coverage over an underlying primary policies d. property coverage fro those who do not qualify

c. excess coverage over an underlying primary policies

The major portion of premium for an equipment breakdown policy pays a. for coverage for bodily injury and property damage of others b. for replacement parts c. for inspections and examinations d. for repairs after a loss

c. for inspections and examinations

All of the following are requirements for producer license renewal EXCPET a. renewal fees b. record of fingerprints c. renewal examination d. up to date continuing education

c. renewal examination

Which of the following is a formal program developed by an employer to fund its losses as an alternative to the purchase of insurance? a. self funding b. employers liability c. self insurance d. voluntary market

c. self insurance

An insured stated on her application for life insurance that she had never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied? a. Waiver b. Utmost Good Faith c. Estoppel d. Material misrepresentation

d. Material misrepresentation

Professional photographers and musicians may insure their equipment with a. a theatrical property coverage form b. a contractor equipment floater c. an installation floater d. a commercial articles floater

d. a commercial articles floater

Which of the following describes contributory negligence? a. the time period in which a claim must be files b. negligence is apportioned between both parties in an accident c. the voluntary assumption of expose to risk d. any degree of negligence by the injured party may be recovery

d. any degree of negligence by the injured party may be recovery

Which of the following is NOT covered under accounts receivable coverage form? a. interest on loans required to offset uncollectible amounts pending payment of the insurance proceeds b. sums due the insured that are uncollectible due to covered loss c. expenses to reestablish the records, if possible and collection expenses that are in excess of normal cost d. any loans required to offset uncollectible amounts

d. any loans required to offset uncollectible amounts

A recent college graduate bought a new car and is trying to get automobile insurance on its as required by the lien holder. After being rejected by several insurance companies due his driving record, he finally talked to an agent who can get him coverage. His agent called him a residual market risk. From which type automobile insurance plan can the applicant purchase insurance? a. fair automobile insurance b. joint underwriting association c. voluntary Insurance plan d. assigned risk

d. assigned risk

The designation symbols used in commercial auto policies can be found in which policy section? a. liability coverage b. definitions c. conditions d. covered auto

d. covered auto

Which of the following examples of losses paid under the HO-3 also would be paid under the HO-2 home owners policy? a. Damage to the dwelling caused by the insured when moving furniture b. accidental scorching cause by a hot iron placed upon a bolt in counter top c. interior damage cause by water seeping under the shingles on the roof d. damage to the dwelling caused by lava or dust from a volcanic eruption

d. damage to the dwelling caused by lava or dust from a volcanic eruption

A passenger in a friends car is injured while getting into the car. Which of the following statement would apple if not the passenger and the driver had medical payment coverage under a personal auto policy? a. the drivers policy will act in excess of the passenger policy b. the passengers policy would be primary c. both policies will share equally in the loss d. the driver policy would be primary

d. the driver policy would be primary

All of the following situations would be covered under a professional liability EXCPET A. failure of a doctor to render the quality of care that is customary in the medical field b. an accountants error that inflated a bid and caused a client to lose a major account c. negligence of an architect who designed an unsafe building d. the failure of an attorney to property defend a client due to his person dislike of the client

d. the failure of an attorney to property defend a client due to his person dislike of the client

When a regular bill of lading is issued, who will be responsible for the invoice cost of any damaged property? a. The person to whom are being shipped b. The shipper c. the driver of the truck d. The Carrier

d. the carrier

Which of the following other coverages is NOT included int eh basic form dwelling policy? a Breakage of glass b. removal coverage c. personal property temporarily away from the insured premises d. tenants improvements altercation and additions

a. Breakage of glass

Which of the following regulatory authorities participated in creating the National Do Not Call Registry a. BBB B. FTC C. SEC D. NAIC

B. FTC

An uninsured motor vehicle includes all of the following EXCEPT a. a vehicle being used for public livery b. the accident was a hit and run c. the insurance company denies coverage d. The vehicle has no liability bond or insurance in force

a. a vehicle being used for public livery

Under the examinations of books and records condition, the insurance company has the right to examine and audit the insured's books and records related to the policy a. during the policy period and for up to 3 years after the termination of the policy b. only during the policy period c. during the policy period and for up to 5 years after the termination of the policy d. only after the policy period

a. during the policy period and for up to 3 years after the termination of the policy

Coverage A: Bodily Injury and Property Damage Liability in the commercial general liability policy will cover a. losses due to the insured negligence b. liquor liability c. Contractual liability d. damage to the insured product

a. losses due to the insured negligence

While an insured was towing a utility trailer with his auto, the trailer came loose and ran into a store front. What part of the insured's auto policy would pay for the damage to the store? a. property damage liability b. collision coverage c. other than collision coverage d. the loss would not be covered

a. property damage liability

Under the personal auto policy, liability for bodily injury resulting from the insured's use of a nonowned automobile is a. provided by the insureds policy on an excess basis b. not covered c. shared on a pro rata basis d. provided by the insureds policy on a primary basis

a. provided by the insureds policy on an excess basis

Which of the following symbols is available to an insured with vehicles subject to no fault coverage? a. symbol 5 b. symbol 6 c. symbol 7 d. symbol 9

a. symbol 5

Who is responsible for paying producer appointment fees? a. the appointing insurer b. the commissioner office c. the department of insurance d. the producer

a. the appointing insurer