EXAMFXPROPERTYANDCASUALTYFINALPRACTICEQUESTIONS
express authority
if an agent follows the rules and terms of his contract he is exercising___ is legitimate authority written into an agent contract.
13 years or older
intentional damage by any insured ___ or older is not covered.
Nonoriginal equipment manufacturer aftermarket crash part or NON-OEM
is a part not made for or by the manufacturer of the motor vehicle.
additional coverage
is a provision in an insurance policy that provides an additional amount of coverage for specific loss expense, at no additional premium.
Form 8
is named peril (basic perils) coverage for both.
insurance
is the transfer of the possibility of a loss (risk) to an insurance company which in turn spreads the costs of unexpected losses to many individuals.
Form 2
named peril (broad form perils) coverage for both dwelling and contents.
basic form (fire lightning, explosion, windstorm, hail, smoke, aircraft, vehicles, riot, civil commotion, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action.) in addition BOP covers transportation.
The BOP standard property coverage form covers the same causes of loss in ___.
HO-5
covers misplacing or losing as a theft of loss.
Form 5
Which homeowners for provides open peril coverage for dwelling (coverage A) and contents (coverage C)?
fire caused by curing tobacco
Which of the following losses would be excluded from coverage under the farm property special form?
risk eligible for coverage under a dwelling policy form
A duplex that is occupied by two families each who have a bedroom rented to a boarder. Is a risk eligible for coverage under a ___form.
The golfers homeowners liability coverage
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
proximate cause
Is an act or event that is the natural and reasonably foreseeable cause of damage or event that occurs and damages property or bodily injury.
8000
A home is insured for 200,000 under an HO-3. Last week the owner purchased a new home and began to move his personal property to the new residence. last night vandals did 8,000 of damage to the property that had been moved to his new residence. disregarding any deductible how much will the HO-3 pay?
HO-5
A homeowner has misplaced some of her insured personal property and has no idea what may have happened to it. Which HO policy form would cover such a loss?
DIC policy
Some usual characteristics of a ___ are that it provides all risk coverage but excludes the named perils provided by the policy it supplements; contains no coinsurance clause or pro rata sharing provision and is written with a high deductible. (10,000 or more)
COverage C
The HO policy will cover loss to personal property under coverage__ up to 100,000 in the newly acquired principal residence for 30 days from the time the owner begins to move the property there. After 30 days the property coverage would be limited to 10% of Coverage C or 1000 whichever is greater.
60 days
The ISO commercial general liability claims-made form provides an additional__ to report claims at no additional cost.
turkeys and chickens
The Livestock coverage form provides coverage for livestock. Livestock means any of the following EXCEPT?
self insured retention
The amount of loss the insured is willing to absorb without insurance protection is known as__
10%
The automatic limit for Coverage B is __ of the limit of liability that applies to Coverage A.
the claim will not be covered
The insured's guest cottage which is insured under his farm policy, is being rented by a young couple. When one of the renters is injured in the rented property, the insured files a claim under his farm liability coverage. How will the coverage respond?
in the state workers compensation law itself
When reviewing a standard workers comp and employer liability policy, the limits of coverage are described in Part One of the policy. The dollar limits of the benefits provided are stated ___
arbitration
Which of the following conditions is NOT included for farm liability in addition to the common policy conditions. A. arbitration B. Bankruptcy of the insured C. Duties in the event of an occurence, claim, or suit D. Liberalization
the insured's limit of liability is 25% of the sum of the direct loss payment plus the deductible amount
Which of the following statements is correct regarding the debris removal coverage under the BOP?
signed form
a __ becomes a part of the policy and is valid for the life of the policy
transportation
the BOP standard property coverage form covers which of the following losses?
umbrella policy
the __ is designed to pay excess above the base auto policy
the first named insured
A commercial policy has several named insureds. when servicing the policy, with whom does the insurer deal?
an additional 5% of the policy limit may be paid for debris removal
A house insured with a homeowners policy has been blown off its foundation by a tornado. It must be demolished and removed so a replacement house can be built. Which of the following is true about debris removal?
coercion
A lender who conditions approval of a loan on the condition that the borrower purchase insurance from that lender may be guilty of ___.
occurence policy
A liability insurance policy that covers all claims arising out of incidents occuring during the policy period, regardless of whether the policy is still in effect at the time that the claim is made is called?
claims made form
A liability policy that provides coverage for a claim for injury or damage only if the claim is first reported or filed against the insured during the policy period is called___
auto collision coverage
A personal umbrella policy may act in excess over any of the following insurance coverage policies EXCEPT? A. auto collision coverage B. Homeowners Section II coverage C. Auto liability coverage D.COmprehenesive personal liability
higher limits of coverage for fine art items
A scheduled personal property endorsement will be used to insure?
products/completed operations hazard
A seperate aggregate limit of insurance also applies to the __ and a general aggregate applies to all other injuries or damages, including medical expenses.
absolute liability
All are legal defenses against a claim of negligence EXCEPT?
outbuildings
All of the following are additional coverages under a homeowners policy except?
The insurer is required to provide proof that the insured received the cancellation notice prior to cancelling the policy
All of the following are true about the cancellation provision of a commercial insurance policy EXCEPT?
The general aggregate does not apply to fire damage legal liability
Although a BOP will cover fire damage legal liability which of the following statements is true?
consideration
An agent delivers a policy to an applicant who pays the initial premium but refuses to submit a statement of Good Health. Which of the following best describes what the applicant has violated?
twisting
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?
fiduciary liability policy paid by the pension fund
An audit revealed the administrator for a pension plan has made investments that were not consistent with the risk tolerance set forth in the plan for its members. The earnings for the past year are substantially below the average for comparable funds. The governing board wants to take action against the administrator. What type of commercial liability would the board need to provide for this risk?
express authority
An employee cannot contract for workers comp coverage for an employer without the ___ of that employer.
Mexico
An example of an alien insurer doing business in this state is one formed under the laws of?
employment practices liability
An executive is accused of sexual harrassment. What type of coverage would respond?
conditions
An insured believes that his insurer is not properly fulfilling its obligations regarding his policy. What section of the policy will give the insured more information about specific duties of the insurer?
10,000
An insured has a personal umbrella with a 2,000 SIR. assuming no other policy is involved, how much would the umbrella pay after a 12,000 personal injury liability claim?
50%
An insured has extended her business income coverage part to a newly acquired location. The insured was able to take this action because her coinsurance percentage is at least?
Part B Medical payments
An insured is injured while driving his own car. Which of the following coverages will pay for the loss?
liability coverage
Auto collision is not a ___ therefore the personal umbrella will not act as excess.
allow the family to maintain their normal standard of living
Coverage D, additional living expenses is intended to?
the coinsurance penalty applies
Due to appreciation the amount of insurance on a business is less than 80% of its actual value on the date of the loss. which of the following is true?
the owner occupant of a condiminium unit
Each of the following may be insured under an HO-3 policy EXCEPT?
business liability and medical payments (to others) coverage
Every businessowners liability coverage form includes __ and ___
50 % of the limit of insurance
Farmer Steve's shed has been vacant for an entire year. When he files a claim to cover some recent damage to the shed, how much will his farm policy pay?
an intervening cause
For negligent liability to exist which is NOT a requirement?
A reasonable expectation that the act may cause injury or damage
For there to be negligent liability all of the following must exist EXCEPT?
farmland
HO Insured location cannot include __ or any premises used for business purposes.
a strawberry patch owned by the insured
Homeowners policies consider all of the following insured location except?
claims made
How is a professional liability policy written?
The FIA pays back the difference
If an insurer participating in the WYO flood program pays more in flood claims than it has collected in flood premiums,
subrogation
If the premiums for fiduciary liability insurance are paid by the fund by law the policy must allow for ___ against individual trustees involved in the loss.
intervening cause
If there is an ___ then something has changed the course of events, so negligent liability cannot exist.
be reduced by 10%
In a DP-1 if the insured elects to apply coverage B to a detached garage coverage A will?
business auto policy
Jack and Jim are partners in JJ transfer company. They have two trucks used to move property of others. They should insure their trucks under a ___.
No because symbol 1 is for liability coverage only
Jay insured under symbol 1- business auto coverage form for liability coverage leases a car. The lease aggrement specifies that jay is responsible for any property damage he causes because of the use of the leased car. Late one night as he is going home, he runs into the neighbors mailbox. Will jays business auto coverage form provide coverage for the damage to the car?
off the insured premises
Medical pay also applies___
CUSTOMERS injury
Medical payments and bodily injury liability coverage is available to settle a claim arising from a ___.
absolute liability
Most states impose___ when a persons actions are determined to be against public policy. Damage caused by the use of explosives or damage caused by harboring poisonous snake or wild animals are examples.
professional liability, contractual liability
NOT included in garage policy?
other than work
Only a limited amount of lost earnings per day will be paid and only on those days the insurer requires the insured to be somewhere other than __
Form 3
Open peril for dwelling and named peril for contents.
damage to an insureds car caused by wind or hail
Other than collision would cover financial losses due to
policy
Policy limits are the maximum amount an insured may collect or for which an insured is protected under the terms of the __
forced payment of billing for services rendered by any private insurer that "binds" coverage based on an employees request for coverage.
Space Age rockets makes model rocket supplies and has 12 employees. The company is located in Atlanta Georgia. Georgia has a compulsory workers compensation laws. Space Age's owner thinks that his company is too small and unprofitable to carry the workers comp plan mandated by the state. possible consequences of noncompliance include all of the following EXCEPT?
10,000
The associations obligation for payment of unearned premium resulting for the insolvency of a member insurer is the amount of the unearned premium or?
utility services is not Water damage, weight of snow ice or sleet, falling objects is the three perils added in broad form.
The broad cause of loss form in the commercial property policy contains 3 perils in addition to the basic form perils. Which of the following is NOT one of those 3 perils?
1
The businessowners liability coverage form will cover medical expenses incurred and reported within how many years of the accident date?
an injury arising out of a CUSTOMER falling because of wet floor
The businessowners liability coverage would respond to a claim arising from which of the following events?
10,000
The businessowners policy extension coverage form for personal property off premises is limited to?
premises
The commercial General Liability coverage Part A- BI and PD provides coverage for which of the following?
physical damage
The damage to the car would be covered under the __ section of a business auto policy.
replacement cost basis
The equipment breakdown coverage form values loss on a?
only the person(s) named on the policy
The extended nonowned coverage provides protection to
professional liability
The garage coverage form is written to address the insurance needs of an insured in the business of selling, repairing, servicing, or storing automobiles. Which of the following coverages is NOT included in a garage policy? A. product liability B. Professional liability C. Auto liability D. Premises and operations liability
30 days
The insured must inform the insurer that coverage is requested within 30 days of acquiring the vehicle.
only for those other states listed in the policy
The other states insurance section of a workers compensation policy provides coverage
10% of coverage C anywhere in the world.
The personal property off premises extension of dwelling forms provides limits of coverage up to?
business income coverage form
The primary purpose of the __ coverage form is to reimburse the insured for loss of income resulting from property damage at the insured's property.
an employee with a previous injury suffers a second injury that causes the disability to be more serious
The second injury fund will pay the benefits in which of the following situations
comparative negligence
The statutory law defense that reduces injury and awards for damages proportionately when the plaintiff and defendant are both responsible is called?
court costs assessed against the insured in a suit
The supplementary payments section of the commercial general liability policy would cover?
assignment
The transfer of a legal right or interest in an insurance policy is called?
insurance contracts
There must be a definite offer by one party, and this offer must be accepted in its exact terms by the other part.
interline endorsement
They are prepared to eliminate redundancy and to minimize the number or endorsements in the CPP package.
only accepting a small percentage of applicants
Underwriters use all of the following methods to protect the insurer against adverse selection EXCEPT? A. Accepting certain risks only at a higher rate B. Restricting coverage C. refusing to accept a risk D. Only accepting a small percentage of applicants
subrogation
Upon payment of a loss the insured is obligated to surrender to the insurer the right to sue a negligent third party. This is called?
direct damage and time element
What are the 2 types of utility services endorsements
monopolistic state fund and competitive market
What are the two sources for workers comp insurance?
property of others in his custody
What is a bailee responsible for?
5,000
What is the maximum fine a producer will face for using an unapproved trade name?
insuring agreement
What part of the insurance contract describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured?
per occurence
What sublimit in a liability policy sets the maximum amount that will be paid for all claims arising from a single accident? puts a ceiling on the payment for all claims
as a fiduciary
When agents, brokers, or solicitors handle premiums for an insurer, they are acting in which capacity.
when loss payments equal the applicable limit of insurance
When does the insurer's duty to defend a suit or claim end in a commercial general liability policy?
a garage separated from the dwelling
When insurance is written on a dwelling form, which of the following types of property would be insured under Coverage B (other structures)?
a license and permit bond
When sally got her new job she was told that the local government required her to get a bond to guarantee that she would follow the city laws and regulations associated with her job. What kind of bond does Sally need?
they are covered if they are used to replace previously owned autos with that coverage
When symbol 7 is provided which of the following statements is true with regards to newly acquired autos?
Miscellaneous type vehicle endorsement
Which endorsement when added to the personal auto policy, after the definition of covered auto to include motor homes, golf carts, or motorcycles?
HO-5
Which form insures both buildings and personal property on an open peril basis?
Form 5
Which homeowners form provides open peril coverage for Dwelling (coverage A) and contents (Coverage C)?
medical payment benefits are limited
Which is NOT true of workers comp coverage?
offering an inducement of something of value not specified in the policy
Which of the following best defines the unfair trade practices of rebating?
No benefit to bailee clause
Which of the following clauses excludes assignment or granting of policy provisions to any person who repairs property for a fee?
business auto coverage
Which of the following commercial auto coverages provides for most commercial auto exposures except truckers, garages, and motor carriers?
Coverage E-Additional Living Expenses
Which of the following coverage options is covered by the DP-2 and DP-3 but not DP-1?
convenience stores
Which of the following entities is eligible for a businessowners policy?
contractual liability
Which of the following exclusions would specifically fall under the Coverage E?
contractual liability
Which of the following exposures is NOT covered under the garage liability coverage form? A. Contractual liability B. Premises and operation liability C. Products and completed operations liability D. Auto liability
The company will reimburse the insured for all loss of earnings
Which of the following is FALSE concerning liability coverage of a business auto policy? A. the company will reimburse the insured for all loss of earnings B. The company will pay premium on any appeal bond C. The company will pay any interest accruing between the time of judgement and payment D. The company will defend any suit alleging BI or PD covered by the policy
It does not require additional premiums
Which of the following is NOT true regarding the automatic increase in insurance endorsement dwelling policies? A. it is optional B. It provides protection from inflation C. it does not require additional premium' D. It increases the amount of coverage by an annual percentage
Fire caused by an earthquake
Which of the following is covered under a dwelling policy?
26%
Which of the following is the least amount of controlled business taht would be considered illegal?
ocean marine
Which of the following is the oldest known type of insurance
medical payments
Which of the following is the other major coverage provided by the businessowners liability coverage form?
Damage to pets, birds or fish
Which of the following perils is NOT covered by the DP-2?
an 80% insurance to value requirement is in place
Which of the following statements is CORRECT regarding the replacement cost coverages under the businessowners policy (BOP)?
exposures in states listed on the information page are covered
Which of the following statements is true concerning a workers compensation and employers liability policy?
insurance transaction
Which of the following terms refers to solicitation, negotiation, effectuation or advising relate to an insurance contract?
supply bond
Which of the following types of bonds guarantees that a supplier will furnish supplies, materials, products, and equipment as specified in the written contract.
real property
Which of the following types of property is NOT moveable?
valued policy
Which of the following would be a proper choice of policy for a company that transports goods that are irreplaceable in nature?
A full time maid
Which of the following would be eligible for Homeowners Coverage F-Medical Payments in the event of injury at the insured's premises?
one party accepts the exact terms of the other party's officer
Which statement best describes "agreement" as it relates to insurance contracts?
they are not taxable and are not guaranteed
Which statement is an accurate description of life insurance policy dividends?
may apply to more than one line of insurance that is included in the package
With respect to the commercial package policy, an interline endorsement is one that?
100 of payroll
Workers comp rating is developed by applying a rating bureau job classification rate to each ___.
payroll
Workers comp rating is developed by applying a rating bureau job classification rate to which of the following?
Yes, the coverage would apply for any animal in your care
Your friends dog that you are keeping while your friend is out of town bit a visitor in your home. Does your HO liability coverage apply?
the crewmember was on shore leave when injured
a ship owner is not required to pay maintenance and cure if
blanket insurance
a single property insurance policy that can provide coverage for multiple classes of property at one location, or one or more classes of property at multiple locations with one total amount of coverage and no single item assigned a specific amount of coverage is called?
defamation
agents may be found guilty of __ if they make false statements that are intended to maliciously criticize another insurance company.
30
an individual just applied for national flood insurance. How many days can she expect to wait before coverage is effective?
misrepresentation
an insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest so the agent guarantees higher dividends than he knows would be possible. Which term describes what this agent has done?
mutual insurer
an insurance company that is owned by the policyholders is called a?
named peril coverage
an insurance policy that lists specific covered perils provides
apportionment clause
anothony has insured his dwelling under two fire policies. If anthony suffers a fire loss, what provision in the policies will prevent anthony from collecting more than the actual amount of the fire damage?
premises, operations, products, and completed operations coverage
are included in a general liability coverage part A.
supplementary payments
are the amounts the insurer will pay in addition to the stated policy limits. They include any expenses the insurer incurs. up to 250 for the cost of required bail bonds, up to 250 a day for loss of income, cost taxed against the insured; prejudgment interest that accrues on any judgment.
fiduciary liability
covers individuals who administer pension or employee benefit plans and have a fiduciary responsibility to manage the funds in the best interest of the plan participants.
up to 250 a day
for loss of income in a supplementary payment
reduced by 50%
if a building or structure is vacant or unoccupied for more than 120 consecutive days the limits of insurance applicable to the buildng and its contents are ___.
notice of cancellation
if the ___ is mailed the insurance compnay is not required to prove that the insured actually received the notice. It is only required to prove only that it was mailed to the first named insured at the mailing address shown on the policy
classes of hazards
in addition to providing commercial auto liability and auto physical damage coverage, the garage coverage form includes in the basic premium coverage for legal liability arising out of 3 classes of ___ : premises and operations, product and completed operations, and automobile liability coverage.
apply and pay a fee to a nonresident state that reciprocates
in order to get a nonresident license in Louisiana, producers must?
mental anguish
is a covered injury under the personal and advertising liability section (Coverage B) of the CGL policy cover this claim?
automatic increase in insurance
is an optional endorsement that may be added to a dwelling policy to increase the amount of insurance by an annual percentage to offset the effects of inflation. This endorsement requires additional premium.
absolute liability
is imposed on one who owns something that is or does something that is inherently dangerous. An injured party does not need to prove negligence.
claim related expense
is paid over and above the limit of insurance. Once the limit of insurance has been paid for loss. The insurer has no further obligation to the insured.
Miscellaneous type vehicle endorsement
modifies the definition of covered auto to include motorcycles, motor homes, dune buggies, golf carts, but also restricts the coverage for nonowned vehicles.
consideration
on the part of the insured is the payment of premiums and the health representations made in the application. On the part of the insurer is the promise to pay in the event of loss.
motor carrier act of 1980
purpose of ___ is to establish financial responsibility requirements for interstate motor carriers.
up to 250
required bail bonds in a supplementary payment
absolute liability
the obligation to compensate injured workers without regard to fault or negligence is known as?
Section II additional coverage damage to property of others
the policy would provide replacement cost coverage up to 1000 to pay for damage to property caused by an insured.
perform
the principal makes a promise to__
fair credit reporting act
the purpose of the __ is to protect consumers against the circulation of inaccurate or obsolete information.
intrastate
truckers operate only within the boundaries of a single state
interstate
truckers travel across state lines
up to 1500
what amount of coverage is provided on HO policies for watercraft and their trailers, furnishings, equipment and outboard motors?
license and permit bond
which are usually required by state and local governments guarantee that the laws and regulations of a particular profession are followed. guarantees that the recipient of a permit will comply with the laws, regulations, and ordinances associated with the use of the permit.
FIA
which of the following agencies administers the National Flood Insurance Program?
a single family home
which of the following could be insured with replacement cost coverage under the flood insurance program?
directors and officers liability policies
will pay only for damages that the corporation would, under the law, be required to reimburse the individual director or officer. The policy generally will not pay for fines, penalties, or punitive damages.
personal liability coverage in Section II
will respond to any claim made against an insured for damages due to BI or PD. your liability coverage would apply to damage caused by your animals as well as any other animals in your care.
basic extended reporting period
A provision found in most claims-made liability policy forms that provides a specified period of time following the policy expiration during which claims arising out of occurences during the policy period may be made against the policy at no extra cost is called?
service
Eligible dwelling properties need not be exclusively residential, but any incidental business must provide__ rather than sales and must not have more than 2 persons working on the premises. Risk cannot be located on a farm.
an insured's 14 year old son throws rocks at the neighbors house breaking several windows?
Coverage E (personal Liability) and or Coverage F (medical payments to others) would respond to a claim arising from all of the following situations EXCEPT?
defamation
During policy solicitation an insurer exaggerates the financial condition of one of its competitors and makes it sound worse than it is. This is an example of?
aftermarket crash parts
Which of the following terms describes replacement nonmechanical sheet metal or plastic parts on the exterior of a motor vehicle.
auto liability policy 200,000 umbrella liability policy 700,000
an insured owns an automobile liability policy with bodily injury limits of 200,000 and an umbrella liability policy with a limit of 1,000,000. The insured is involved in an auto accident and is found liable for injuries totaling 900,000. which of the following examples best describes how the benefits will be paid?
1050 Coverage D would pay as additional living expenses 900 and as loss of rent 150 a total of 1050
an insured rents out a bedroom in his residence for 50 per week. The residence is badly damaged by fire. During the 3 weeks required to repair the fire damage the insured pays 900 in rent for a short term apartment and the renter is forced to find other accomodations. disregarding any extra expense for meals, how much would an HO-3 pay under Coverage D?
1100 The insured will collect the difference between this claim and the amount of his deductible. collision deductible apply to each collision.
an insured was traveling down an icy road and hit a sign causing 1350 damage to his own car. If the insured has a 250 deductible and already collected on a 1500 claim, how much will he collect on this claim?
liability insurance
covers injury or damage to others that is neither intended nor expected by the insured.
riot
for an additional premium the extended coverages written on the basic form dwelling policy would cover which of the following?
rebating
is offering anything of value that is not specified in the policy as an inducement to purchase insurance.
uninsured motorists
An insured with limits lower than required by law would be considered___
Section II with no deductible
An insured's child ran into a neighbors 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 insureds HO policy would pay.
resident employees
HO coverage Medical payments does not apply to any insured or a regular resident of the premises except__ not covered by workers comp.
it transfer the risk to all persons insured
How does insurance distribute the financial consequences of individual losses?
there is no additional premium
If an insurance policy has the additional coverage provision how does it affect the premium?
25% This increase is only applicable only if the insured carries insurance equal to 100% of the average monthly values for the past 12 months
If the actual values exceed the limit of insurance the BOP contains a seasonal increase provision that automatically increases the limit of insurance for business personal property by?
3 years
Medical Payments on the HO cover costs incurred for up to ___ after the accident.
smaller of the ACV or the cost to repair or replace
Property is insured on a replacement cost basis. However if damaged property is not repaired or replaced within 24 months after the accident, settlement is at the__.
farm policies
Rental or holding for rental of an insured location is excluded from coverage in a___ policies.
180 days
The debris removal must be reported within __ of the loss.
principal
The defendant being released on a surety bail bond is the__
proximate cause
The exact, direct, uninterrupted cause of loss is the
BOP
The insured automobile is not covered item under the ___. It would be covered under an auto policy.
homeowners liability coverage
The insured's ___ is worldwide and covers damages for BI and PD to others that occurs while the insured is engaged in activity.
insured contract
Those contracts that are automatically covered under the exposure of premises coverage in general liability insurance contract.
at least to the minimum required by that state
You are at fault in an auto wreck out of state. How does your company adjust?
physical damage or watercraft damage
___ in boatowners policy is covered in section I.
25%
controlled business must not exceed___ of a producers transactions.
Medical payments coverage
pays all necessary medical and funeral expenses incurred and services rendered to the insured or any other person while occupying a covered auto.
employers liability coverage
protects employer against suits arising out of an employees injuries that are brought by third parties.
The additional condition other insurance-primary and excess isurance provision
states that the truckers auto liability coverage will be considered primary when a covered auto is borrowed or hired by the insured for use in business as a trucker and used according to operating rights granted by a public authority.
damages claimed by third parties
Employers liability coverage under a workers compensations policy includes?
The policy for the company that borrowed the truck will be primary and the titled owner of the truck will be excess
A trucking companys truck is out of service for repairs. While making the delivery in a borrowed truck, the driver is responsible for an accident that causes 55,000 in property damage to the other vehicles and injuries to 2 individuals. under the commercial auto liability policy conditions which policy will pay for this?
Pollution
Businessowners liability coverage automatically includes all of the following liability coverages EXCEPT A. Host liquor B. Product C. Pollution D. Contractual
The contractor
James was having a new home built. While digging the footings for the foundation the contractor struck a solid rock formation and found that was necessary to blast the formation in order to remove the rocks. The concussion of the blast broke several windows and some chinaware in Bill's home several blocks away. Who pays for this damage?
moveable
Personal property is property that is ___
liability coverages
Section II of the boatowners policy covers__ Physical damage to the watercraft is covered in section I of the boatowners policy.
location
The insurer's ___ is irrelevant to the processing of workers compensation claims. The critical components relate to the employer and the employee and their locations.
Government insurance programs are partially or totally funded by taxes
The major difference between private and government insurance programs?
aftermarket crash parts
The term__ refers to a replacement for any of the nonmechanical sheet metal or plastic parts that constitute the exterior of a motor vehicle including inner and outer panels.
standard policy difference
There is no ___ in conditions policy and the policies are usually manuscripted and tailored to the specific needs of the insured.
any loss paid under coverage B reduces the Coverage A limit of liability
Under COverage B- Other structures, a HO policy provides coverage for other structures on the residence premises. Which of the following statements is NOT true?
while it is in any residence premises occupied by an insured
Under Coverage C, and at the request of an insured, personal property of a guest or residence employee is covered?
2,000 per head
Under Coverage E- Scheduled Farm Personal Property, livestock that is not specifically insured is limited to a coverage limit of?
intervening clause
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?
open Peril
What kind of coverage does Form DP-3 provide for structures insured under coverages A and B?
for the life of that policy
When a named insured files a form with the application selecting a different level or absence of Uninsured Motorist Coverage, The selection is valid for?
120,000 ACV is determined by taking todays replacement cost, minus depreciation. The equation is (200,000-[(200,000X 4%) X 10 years] = 120,000)
When an insured purchased his home 10 years ago for 80,000 it had a replacement cost of 100,000. Today his home has a replacement cost of 200,000 and has depreciated by 4 % each year. The insured's home has an ACV of?
15,200 The medical payment coverage is provided by a limit of liability per person. In this example the limit for the policy is 5,000 per person. So the policy will pay the maximum (10,000) for the insured and passenger 2 because their medical expenses exceed the limit. all of passenger 1's and 3's expenses would be paid (5200).
an insured has 5000 of medical coverage under a personal auto policy at the time of a covered accident. The insured and 3 passengers are injured. The insured's medical expenses are 8,000. The first passenger's total 4,000 the second passenger total 6500 and the third passenger total 1200. How much will the policy pay under the medical payment coverage?