exam missed questions

An insured suffered a windstorm loss in which the insureds driveway is blocked by two of the insured trees and two of the neighbors trees. Total amount of the removal adds up to the following three threes at $300 per tree and one tree at $600. Hoe much will the insurer pay for the loss?

$1000

An insured has an automobile policy with limits of 100/300/50 and the deductible of $1,000. He is involved in an auto accident and crashes into another drivers auto. The other driver is awarded $125,000 for his injuries and $25,000 for the damages to his car. The insureds vehicle has damage in the amount of $1,200. The total payment made under the insured policy is

$125,200

The personal property off premises extension of dwelling forms provides limits of coverage up to

10% of coverage C anywhere in the world

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

24 hours Expense payments begin after 24 hour waiting period for reasons other than theft

Binders in Alabama can be issued for a term of up to

90 days

Of the following which is not defined in the personal auto policy as an uninsured motor vehicle

A vehicle owned by a government entity

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

A vehicle purchased 90 days ago A covered auto includes auto mobiles listed in the Dec, owned trailers, newly acquired autos (39 days) no owned temp. Vehicle and additional temporary vehicles due to repair servicing break down or loss

An insured has homeowners insurance on his detached garage and home. He just completed building another detached garage that he plans to use to store his boat and camper. The insured has also installed and alarm system in his home. I'm order to add coverage for the new garage and to receive a premium credit for the alarm system what will the insurer need to do for the insured

Add an endorsement

Which of the following insurance principles states that ambiguities in a policy will always be constructed in the favor of the insured

Adhesion

In a auto policy what is the term that defines parts that are used in repair of an insured vehicle by other than the original manufacturer

After market parts

Which of the following circumstances would be excluded under medical payment's coverage of a personal auto policy

An insured injured while driving his motorcycle on his residence premises

Under coverage B other structures a homeowners policy provides coverage for other structures on the residence premises. Which of the following statement is not true of this coverage

Any loss paid under coverage B reduces the coverage A limit of liability

When an insured and her insurer could not agree on the liability loss after her accident, the settlement was submitted to someone whose decision was then binding on both parties. What policy condition was applied?

Arbitration

The transfer of legal rights or interest in an insurance policy

Assignment

Answers to questions in an insurance application are called representations and such as they are

Believed to be true to the best of the applicant's knowledge

In order to receive transportation expenses under the personal auto policy following damages to an auto caused by collision and insured must have

Collision

An insured's limit of liability applies to a total of damages for bodily injury and property damage resulting from one accident, which may be used in any combination of amounts, not to exceed the single limit. What type of limit does this insured have?

Combined single

Which of the following elements of an insurance contract requires payment of premium

Consideration

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

Contractual liability

The personal property off premises extension of dwelling forms provide limits of coverage up to

Coverage C anywhere in the world

Other than perils, the difference in the three DP forms is in coverage provided. Which of the following coverage options is covered by the DP-2 and DP-3 but not DP-1?

Coverage E - Additional Living Expense

Other than perils, the difference in the three DP forms is in coverage provided. Which of the following coverage options is covered by the DP-2 and DP-3 but not DP-1?

Coverage E - Additional Living Expense Must be obtained through an endorsement in a DP-1 policy

Additional coverages in the liability section of a homeowners policy cover all of the following except

Damage to a third-party property for which the insured is legally liable.

I'm a DP1 if the insured elects to apply coverage B to a detached garage coverage A will

Decrease by 10%

With regard to fire insurance premiums, structures with which of the following type of construction would most likely have a the most favorable premium rate for the peril of fire?

Fire Resistive

The commissioner of insurance is appointed by who

Governor

Which homeowners form insures both building and personal property on an open peril basis

HO 5

When would a misrepresentation on an insurance application be considered fraud?

If it is intentional and material

What doctrine may reduce or bar the recovery from a defendant if another event beyond the control of the defendant sets in motion a new chain of events causing injury or damage

Intervening cause

How does insurance distribute the financial consequences of individual losses?

It transfers the risk to all persons insured

Which of the following exposures is not covered under a homeowner policy?

Medical payments to an insured

Several insureds have become liable because of a single loss. How will the policy's limit of liability be affected?

No more than the per occurrence limit applies, no matter how many insureds are involved.

The extended nonowned coverage provides protection to

Only the person(s) named on the policy

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

Other insurance

The deductible under earthquake coverage is stated as what

Percentage of loss

Which of the following statements is an accurate comparison between private and government insurers

Private insurers may be authorized to transact insurance by state insurance departments.

All of the following are considered parts of the policy except

Provisions

What type of insurer uses a formal sharing agreement

Reciprocal insurers

An applicant for a disability insurance policy has a heart condition of which they are unaware and therefore they answer no to the question pertaining to the heart problems on their application. There answer is considered to be a

Representation Representations are believed to be true but not guaranteed true.

If an insured purchases an insurance policy with a large deductible what risk management technique is the insured exercising

Retention

An insured's child ran into a neighbor's planter on his bicycle and broke the planter and ruined the plants. the cost to replace the planter was $400, and the cost to replace the plants was $100. Which section of the insured's homeowners policy would pay? a. Section II with no deductible b. Section I with no deductible c. Section I, subject to the deductible d. Section II, subject to the deductible

Section II with no deductible

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

Severability Means insurance applies separately to each insured

What does the application of contract of adhesion mean

Since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the insured.

if certain insurance coverages cannot be procured from authorized insurers, what can be procured from unauthorized insurers?

Surplus lines

All of the following statements regarding personal property coverage in the homeowners program are correct except

The HO-3 policy covers the mysterious disappearance of personal property

The amount an insurer will pay under Coverage D (Loss of Use) depends on

The amount of coverage on the dwelling. Loss of use is usually limited to a percentage of the overall dwelling or personal property coverage (when dealing with HO-4 and HO-6).

A golfer slices a tee shot and the ball goes through the window of a house beside the fairway. The broken glass is paid for by

The golfer's homeowners liability coverage

If the premiums collected by an insurer participating in the WYO flood program are insufficient to cover losses, which of the following would be true?

The insurer will be reimbursed for the excess costs by the NFIP

Am insured diner suffered a fire loss. In addition to the damage caused by the fire, the floor had to be replaced because of the water damage. It took 4 weeks for the repairs to be completed. The insured was without income for that period of time. The insured policy included both direct and indirect loss coverage. What part of the loss would be paid as an indirect loss?

The loss of income for the time of the diner was closed.

If an applicant submits the initial premium with an application which action constitutes acceptance

The underwriters approve the application

The owner of a rental dwelling, insured under a DP-2 turns off the heat in the insured dwelling during the winter months because the dwelling is not occupied. The building's water pipes freeze and break, causing damage. How will the policy react to this loss?

This loss is excluded from coverage

An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as

Twisting

An agent tells an insured that if he replaces Gaia 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 Twisting persuades and insured to their detriment, to cancel, lapse, or switch policies.

Rates for earthquake coverage in property policies are generally determined by which of the following?

Type of construction

A driver who has an auto policy within limits of liability lower than required by state law would be considered

Uninsured motorists

Which of the following is not part of section 2 of the boat owners policy

Watercraft damage

Insurance policies are not drawn up through negotiations and an insured has little to say about its provisions. What contract characteristics does this describe

adhesion

The HO-4 form designed for tenants covers losses on what basis

broad peril

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT

conditions

All of the following are additional coverages under a homeowners policy except

outbuildings

Which of the following types of property is not moveable

real property

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

riot

An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as

twisting