exam stuff i dont know 2

To avoid violations of unfair claims settlement regulations, insurers are required to acknowledge the receipt of a claim within how many days?

10 days

Coverage for medical payments under a personal auto policy applies to expenses following a covered accident that are incurred and services rendered within what maximum time period?

3 years

When a producer holding a certificate or a broker's license has a change in his/her residence or business address, he/she must notify the Department of Insurance and any company for which the producer holds an appointment within

30 days.

What is the maximum length of time that an employee who is partially disabled can receive loss of time benefits under Workers Compensation?

500 weeks

Coverage under the builders risk form will end in all of the following situations EXCEPT

60 days after the construction has ended.

What is the required limit of insurance in the coinsurance clause for Coverage F - Unscheduled Farm Personal Property?

80%

Which of the following statements is true regarding the premium computation for workers compensation insurance?

A premium auditor has the right to examine the insured's compensation records at the end of the policy period to determine the actual premium basis.

Which loss listed below would be fully covered by a homeowners policy?

$2,000 silver tea set stolen

In a personal auto policy, the medical payments coverage is similar to

Accident insurance, because it pays medical expenses regardless of fault.

In insurance, an offer is usually made when

An applicant submits an application to the insurer.

The ABC Corporation has $100,000 of coverage on its building through insurance Company A, and $50,000 of identical coverage on the same building through insurance Company B. Assuming coinsurance is not an issue, when a $24,000 loss occurs and the pro rata method is used, how much will each insurer pay?

Company A will pay $16,000; Company B will pay $8,000.

In which of the following sections of a commercial auto policy will you find specific information about the policy period?

Conditions

States with monopolistic state workers compensation funds

Do not allow private insurers to be licensed to write workers compensation coverage.

All of the following are licensing requirements for a business entity, EXCEPT

Having all employees complete continuing education courses once every 2 years.

An insured is involved in an auto accident in another state. The state has a financial responsibility law that specifies limits of liability higher than the limits shown in the declarations. What amount will the insured's policy pay?

Higher limits

Under which of the following conditions can broad theft coverage be added to a dwelling policy?

If the insured is owner-occupant of the dwelling

In order to reject uninsured motorist coverage, the first named insured must make the rejection

In writing at the time of application.

When an insured has multiple autos insured, what effect does the stacking of UM and UIM coverage have in terms of the benefits available?

Increases the limit of bodily injury coverage available to an insured to a total equal to the sum of the bodily injury available on all autos insured

Which of the following endorsements is used by individual business owners who use company vehicles for personal use rather than purchasing a personal vehicle?

Individual named insured

Which of the following is NOT true regarding a Certificate of Authority?

It is issued to group insurance participants.

Which of the following lists all the required elements for establishing a charge of negligence?

Legal duty owed, standard of care, proximate cause, damages

All of the following are exclusions under farm property coverage EXCEPT

Loss of use.

Untrue statements on the application unintentionally made by insureds that, if discovered, would alter the underwriting decision of the insurance company, are called

Material misrepresentations.

A business using its own trucks to move its own cargo would insure the cargo using

Motor truck cargo - owners form.

When is a hired and nonowned auto liability endorsement available in a businessowners policy (BOP)?

Only if the insured does not have commercial auto coverage

Limited fungi, wet or dry rot, or bacteria endorsement in HO policies applies to

Property and liability losses

All of the following may be covered by the miscellaneous type vehicle endorsement EXCEPT

Rented recreational vehicles

Adverse selection is a concept best described as

Risks with higher probability of loss seeking insurance more often than other risks.

All of the following are considered unfair trade practices in the business of insurance EXCEPT

Sharing commissions.

Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages?

Special

Which of the following insurers are owned by stockholders?

Stock

Which of the following acts created a federal program that would share the risk of loss from potential terrorist attacks with the insurance industry?

TRIA

Burglary is defined as

Taking of property from within the premises leaving visible signs of forced entry.

All of the following conditions must exist for injury or damage to be included in the products and completed operations hazard of a commercial general liability policy EXCEPT

The injury or damage must occur within 90 days after the insured's work is completed.

In Ocean Marine insurance, who pays all reasonable expenses if sue and labor is required to lessen a loss?

The insurer

Which of the following is an example of a producer's fiduciary duty?

The trust that a client places in the producer in regard to handling premiums.

All of the following are true statements regarding the supplementary payments of a commercial general liability policy EXCEPT

They pay defense costs even after the aggregate limit has been reached.

All of the following types of property are covered by a standard builders risk form EXCEPT

Tools 50 feet away from the building.

Supplementary payments on a CGL provide all of the following EXCEPT

Up to $500 a day for lost earnings and $2,000 for the cost of bail bonds.

Which of the following is NOT one of the available additional coverages in the builders risk form?

Vandalism