first time taking

Under the additional coverages of the standardized Businessowners policy, how much is the limit for "Pollutant Clean-Up and Removal" if caused by a covered loss?

$10,000 in any 12-month period

Mr. York had his pickup truck stolen while it was parked in a "no parking" zone outside his office. The value of the truck was $18,500. In addition, tools valued at $200, extra tires and hubcaps for the truck valued at $550 and a tarp worth $50 were in the truck. Mr. York has a collision deductible of $500 and a comprehensive deductible of $250. The insurance company will pay what amount?

$18,800

At the time of fire damage to a covered auto under a business auto policy, the auto's actual cash value is $9,200. The cost to fully repair the damage would be $11,500. If the policy has a $250 comprehensive deductible, what amount will the insurer pay for the loss?

$8,950

In New Hampshire, when an insurer cancels an auto policy for non-payment of premium, a _____ day notice of cancellation must be sent to the named insured.

10 days

The insured has a CGL policy with a $600,000 aggregate limit and a $300,000 per occurrence limit. The insured has one claim for $400,000 and another separate claim for $200,000. After paying these two losses, how much of the aggregate limit will remain for future claims?

100,000

unless otherwise provided by law, within___ days from the receipt of the notice of claim, the insurer must make a complete decision regarding coverage, acceptance, denial or payment of a claim and communicate this to the insured or claimant.

30

An insurer that wishes to cancel or non-renew a policy OTHER THAN an automobile, workers compensation or commercial policy may do so for the approved reasons by sending the insured a _____ day advance notice.

45

Unless otherwise provided by law, every insurer must establish procedures to commence an investigation of any notice of a claim filed by an insured or claimant not later than _____ working days from receipt of the notice of a claim.

5 days

When a commercial property or casualty policy is cancelled or not renewed by an insurer in New Hampshire, the insurer is required to give advance written notice to the first named insured at least:

60 days in advance

Whenever the Commissioner has reason to believe that any person involved in the insurance business in New Hampshire is engaging in any method of competition, or any act or practice that appears to be unfair or deceptive may call for a hearing. A ____day notice must be sent to the involved parties.

A 10-day notice is required

The bulldozer is considered to be mobile equipment covered under the CGL policy for liability coverages unless it is registered and licensed. If registered and licensed as required by certain states, Symbol 19 would be used under the Business Auto policy. If the bulldozer does not require registration BUT is used on the public roads as a method of transportation, the Mobile Equipment endorsement will be required to make it a covered vehicle under the Business Auto policy.

A bulldozer

Except as otherwise provided, every policy providing fire insurance in New Hampshire must contain:

A contract of fire insurance must contain all the provisions of the New Hampshire Standard Fire Policy. The Commissioner may suspend or revoke the license of any insurer using any other form of fire policy.

The standard BOP policy will provide coverage for all of the following incidental occupancies in a covered apartment building, EXCEPT:

A contractor whose office occupies 20% of the floor area of the building.

A loss reserving method that establishes aggregate reserves for all claims for a single-type of insurance is known as:

A loss reserving method that establishes aggregate reserves for all claims for a single-type of insurance is known as the loss ratio method.

An additional coverage provided by Part D of the Personal Watercraft policy includes coverage for "salvage liability". This is best described as:

A maritime law requiring watercraft owners to recover items that have gone overboard

What is the purpose of a window muntin?

A muntin is a strip of material, often wood, plastic, or aluminum that holds panes of glass inside the larger frame of the window. When window panes needed to be made of smaller pieces of glass, they were a necessary feature for holding the window together. Today, muntins are more of a decorative feature for traditionally-styled homes rather than a necessary feature.

A standard Homeowners policy is best described as:

A package policy that provides both property and liability insurance

The "Part B - Medical Payments" coverage of a personal automobile policy covers injuries for all of the following, EXCEPT:

A passenger who is injured in another vehicle that is struck by the insured's vehicle in an accident is NOT covered by Part B of the Personal Automobile policy. Passengers in other vehicles who are injured in an accident with the insured are covered under Part A of the policy.

Trevor purchases a condemned house in a run-down neighborhood that is scheduled for demolition by the city. He paid $10,000 for the house and wants to protect his financial investment by purchasing insurance. Which of the following statements is true?

A property scheduled to be demolished is an expected loss and losses must be uncertain or not expected in order to be insurable.

Coverage A of a Homeowners policy would cover all of the following, EXCEPT:

A storage shed connected to the dwelling by a utility line.

An insured's car is damaged in an auto accident. While it is being repaired, the body shop loans the insured a replacement. From a coverage standpoint, this replacement vehicle is known as:

A temporary substitute.

Under the business auto policy, the endorsement used to protect the owner of a leased vehicle is:

Additional Insured - Lessor.

All of the following are part of the "entire contract", EXCEPT:

An agreement made between the insured and the agent stated verbally, that the agent will personally service the insured's policy, and it will not be delegated to a staff member is NOT part of the entire contract. This agreement between the agent and the insured is an outside stipulation.

A home is insured by an unendorsed HO-3 form. The home burns and all of the policyholder's jewelry is destroyed. The maximum the insured can collect under the HO-3 policy for the jewelry is:

An unendorsed HO form provides actual cash value coverage for personal property. The limit of $1,500 for jewelry, watches, furs, precious and semi-precious stones pertains only to loss by theft. In this case, the jewelry would be covered up to the policy limit for personal property.

Monique lives in Texas and is covered under a standard Personal Automobile policy. Her policy was issued by Binders Keepers Insurance, a company that is domiciled in North Carolina and also transacts insurance in Texas, New Mexico, California, and Arizona. Binders Keepers has broadened their coverage under the policy without additional premium, as of April 1st. They are rolling out the change in coverage as follows: North Carolina - April 1st Texas - April 15th New Mexico - April 20th California - April 30th When can Monique expect her coverage to be broadened?

April 15th, because when a company broadens their coverage with no additional premium charge, it takes effect on the date it is implemented in an insured's state of residence.

Catherine suffered a covered cause of loss that resulted in water in her basement along with other damage. Alan, an adjuster for Binders Keepers Insurance, tells Catherine to immediately have the water damaged carpeting and wall paneling removed from her basement, so that mold will not cause further damage. At the same time, Alan discloses to Catherine that he is not sure yet if the carpeting or wall paneling will be covered and has her sign a nonwaiver agreement stating that he is not waiving the insurer's right to deny the claim. When Alan begins the process of identifying coverage under the policy, he finds that the water damage to the carpeting and wall paneling is not covered. Which of the following statements is TRUE regarding this claim?

Because Alan told Catherine that he didn't know if the water damage was covered and had her sign a nonwaiver agreement, coverage will be denied because water damage was not covered by the policy

When Chris' car is stolen from his apartment's parking lot, he heads down to the local dealership and buys a new car. Three months later, Chris decides he may as well report the stolen car to his insurer, so he can get some money for it. What is the most likely reason the insurer might deny his claim?

Chris did not promptly report the stolen vehicle.

Chris is insured through Binders Keepers Insurance Company and his policy period ends in 12 months. However, Chris has decided that he wants to cancel his policy in order to purchase another one from a company that advertises with cute commercials on television. Chris calls his agent to cancel the policy and is informed that the unearned premium on the cancelled policy will be returned to him by mail in a couple of weeks. When Chris receives the check, he is surprised to find that it's made out for less than the amount of unearned premium he should have received. What is the most likely reason for this?

Chris' policy had a provision stating that UEP must be returned on a short-rate basis

Which of the following offers the broadest physical damage coverage under a Commercial Auto policy?

Comprehensive

In a contract, something of value exchanged between the parties is referred to as:

Consideration is something of value exchanged between the parties. The insured pays a premium, known as consideration and the insurer promises a larger amount in the event of a claim.

Which of the following would be covered under Coverage A of a Farm insurance policy?

Coverage A covers the dwelling and any attached structures such as a garage.

The definition of collapse in the policy is the "abrupt falling down or caving in of the structure or part of the structure" and it must render the building as unusable as intended. Pete's business is covered by a standard Businessowners policy. He has been accused by a customer of displaying inaccurate pricing on his website. Which of the following statements best describes how this claim would be handled by the BOP?

Coverage for any claim caused by a wrong description of the price of goods, products or services is excluded by the personal and advertising injury coverage of the BOP..

Which of the following businesses is NOT eligible to be covered by a Businessowners policy?

Credit unions, banks and savings and loan companies are not eligible for the BOP because the crime exposure would be too large for the Businessowners policy to cover. The office building, small gift shop, and apartment building are all acceptable risks for a BOP policy.

Which of the following would be covered under Section II - Liability of the Homeowner policy?

Damage to rented premises occupied by the insured caused by a fire accidentally set by the insured

Which of the following is covered under Part A of the Personal Auto policy?

Damage to the attached garage of a dwelling rented by the insured.

Fidelity bonds are used to cover:

Employee dishonesty

Which of the following coverages of a standard Equipment Breakdown policy pays for the extra costs that are incurred to make temporary repairs and any extra costs to have the permanent repairs completed faster?

Expediting expense coverage.

An insured has purchased BAP physical damage coverage against specified causes of loss. Protection applies to all of the following perils, EXCEPT:

Falling objects

The insured has a barn on his premises. The dwelling is insured for $200,000 under a DP-2 dwelling policy. How much coverage applies to the barn?

Farm property, including farm dwellings are not eligible under the dwelling policy. The barn is farm property and cannot be covered. Farm property forms must be used.

What is the definition of custom farming?

Farming for others.

Virtually all inland marine named perils forms include coverage for

Fire and lightening.

Which of the following coverages is NOT included for a $25,000 limit of insurance under the standard Equipment Breakdown policy.

Fire damage is not included. Commercial property forms include this coverage.

Under which of the following Commercial Crime insuring agreements are defense costs covered?

Forgery or Alteration

A customer in a restaurant becomes ill after they return home after eating. Which policy would respond to handle the claim?

General Liability policy that is unendorsed .

Sue buys a microwave at Quality Department Store, takes it home, plugs it into the wall outlet, and is injured when it explodes. Quality's liability exposure would be addressed by the which of the following coverages?

If a claim occurs off the insured's premises AFTER the product has been sold and the purchaser has the product in their possession, any injury caused by the defective product becomes a Products Liability loss.

Which of the following sentence which best describes the term "fiduciary".

Insurance companies, agents, producers and adjusters have a fiduciary responsibility to their clients in the collection and handling of premiums, claim payments, and return of unearned premium. All of these items are "assets" that the fiduciary has been entrusted to handle. There is not a "fiduciary's license".

Meg has filed a claim with her insurance company. Conrad, the staff adjuster assigned to her claim, feels there is not coverage under the policy to address Meg's claim, but he is not sure because he has not investigated the claim. The next step that Conrad will most likely take is to:

Issue a reservation of rights letter to Meg

The insured carries a yacht policy. One of the crew members is injured while performing a work related task. What coverage must be added under the policy that would respond to cover the crew member's injuries?

Jones Act (crew coverage)

Garagekeeper's coverage excludes all of the following losses, EXCEPT:

Loss to a high-value audio system permanently installed in a covered auto.

Which of the following conditions is not found in the commercial inland marine conditions form?

Maintenance of Security Systems.

If an insurer is neglectful in adjusting a property claim or commence repairs within 20 days after the adjustment of the loss, the insured

May proceed with the repairs on their own.

Common and Contract Carriers Liability that covers damage to cargo, may be insured under:

Motor truck cargo forms.

The "occurrence" form of a CGL policy provides coverage for bodily injury and property damage that:

Occurs during the policy period regardless of when the claim is made.

Spencer is covered under a standard Personal Automobile policy with a policy inception date of October 15th. Additionally, the policy will expire on October 15th of the current year. Spencer contacts his agent on October 7th and asks to have an new endorsement added to his policy. The agent agrees, adds the coverage the same day, and informs Spencer that there will be an additional premium of $20 per month charged. When will the adjustment of premium be effective for Spencer?

October 7th

Which of the following would not be eligible for coverage under a livestock floater?

Poultry

The ABC Contracting Company built a porch on a building for an insured. One year after the porch was completed it collapsed, causing injury to the homeowner. This type of accident would be considered a:

Products and Completed Operations Liability loss.

All of the following statements are true regarding the "Building Additions and Alterations" additional coverage of the Homeowners forms, EXCEPT:

Provides up to $2,500 to cover fixtures, installations and improvements made or acquired at the insured tenant's expense

The Motor Carrier Act of 1980

Requires trucking operators to file proof of liability insurance

Under a claims made CGL form, the earliest date an occurrence can take place and be covered is the:

Retroactive date

Roger accidentally hits a tree in his owned vehicle and it is a total loss. His car was three years old and in pristine condition with an actual cash value of $12,250. To replace the car with a new one of the same make and model, it would cost $19,400. To purchase a used car of the same make and model that is also 3 years old with similar mileage, it would cost $11,200. Disregarding any deductible, how would Roger's claim be settled under Part D of his standard Personal Auto policy?

Roger will receive a check for $11,200 to purchase a used car of like kind and quality to the vehicle that was wrecked

A customer deposits items in a safe deposit box at the bank. These items are missing the next time the customer opens the box. What crime coverage is necessary to cover this loss?

Safe Depository

Wyatt is a blasting contractor who set off a blasting charge, damaging several buildings in the area and causing severe bodily injury to several people. Which of the following types of liability apply in this scenario?

Strict (Absolute) liability would be applied here without any need to prove negligence. Strict liability (also known as absolute liability) is imposed by law (statute) on those who participate in especially hazardous activities

Under the "Money Orders and Counterfeit Money" insuring agreement of a standard Commercial Crime form, all would be covered, EXCEPT:

Taking a forged check from a customer in exchange for merchandise

Which of the following best defines an "insured"?

The "insured" is a person or entity that pays premiums in exchange for financial protection.

All of the following are true regarding supplementary payments provided by a Commercial General Liability policy, EXCEPT:

The CGL provides up to $250 per day for loss of earnings as a supplementary payment.

The insured is covered under an ISO HO-5 policy. What coverage does the insured have for personal property?

The HO-5 form provides open peril coverage on both the dwelling and personal property.

The Valued Policy Law of New Hampshire means which of the following?

The The insurer must pay the limit of the coverage on the structures in case of a total loss." is the definition.

Fred owns two commercial buildings and carries NFIP coverage on them. The area where the buildings are located is a full-risk zone in the Regular Program. Both buildings are 30 years old and when they are damaged by flood, Fred finds that the cost to comply with the new Floodplain Management Ordinance will be quite expensive. What is the total amount of coverage Fred could receive for the Increased Cost of Compliance?

The amount of coverage for ICC under the policy is $30,000 per building and no deductible applies. Therefore, Fred could receive $60,000

All of the following would NOT be covered under any section of the Business and Personal Property coverage form, EXCEPT:

The cost to restore electronic data that was corrupted by a covered cause of loss..

Which of the following is NOT a coverage extension on the Building and Personal Property coverage form?

The coverage extension for outdoor property provides coverage up to a maximum of $1,000, not $500.

Mr. Thompson carries the minimum auto limits in his state. He drives his car to New York which requires bodily injury limits of $25/50 and a wrongful death limit of $50/100 and no-fault coverage. If he has an accident in New York what coverage would he have?

The coverage will automatically be modified to comply with the New York requirements.

Which of the following would NOT be excluded under Part A of a standard Personal Automobile policy?

The covered auto while being used to transport passengers to work as part of a share-the-expense carpool.

The "Business Income" additional coverage of the standard Businessowners policy provides coverage for "ordinary payroll coverage" for:

The insurance company pays for only the loss of business income sustained during the restoration period that takes place within 12 consecutive months after the date of the covered loss or damage. However, it pays for ordinary payroll expenses for only 60 days after the date of loss unless a higher number of days is on the declarations.

An insured building suffers a total loss as a result of fire or lightning without criminal fault of the insured. The insurance company is required to pay:

The insurer is required to pay the total limit of the policy on the building.

The standard Personal Automobile policy provisions state that the insurance company has subrogation rights against any person permitted to use a covered auto, under all coverages, EXCEPT:

The insurer would not have subrogation rights under Part D - Physical Damage, because this coverage applies to the insured that is covered by the company. Part D specifies that any person who has permission to drive the covered vehicle is considered an insured and cannot be subrogated against. This caveat does not apply to any other coverage of the Personal Automobile policy.

Under the livestock coverage form, how must livestock be covered

The livestock form requires that the livestock must be insured at least 80% to value

How much can be paid on any one claim, excluding workers compensation claims, under the New Hampshire Guaranty Fund?

The maximum the Association can pay, excluding workers compensation claims is $300,000.

The Declarations section of an insurance policy contains:

The name and address of the insured and the duration of the policy.

At the discretion of the Commissioner, they may suspend or revoke an adjuster's license or subject that person to an administrative penalty of:

The penalty can be as much as $2,500.

Which of the following would be considered the purpose of the New Hampshire Insurance Guaranty Association?

The primary purpose of the Guaranty Association is to pay the covered claims of insolvent insurers.

A tornado blows over a wall of a barn which, in turn, knocks over a lamp and starts a fire. What is the proximate cause of loss?

The proximate cause of loss would be the tornado (wind).

Imogene has purchased a personal auto policy including Parts A through D. She is driving to work one day and rolls through a stop sign, crashing into the car that had the right-of-way in an intersection. Imogene submits a claim for the accident. Which of the following would NOT be included in her claims payment?

The transmission problem Imogene was having prior to the accident would not be covered as it did not occur as a result of the accident. If Imogene was covered under a mechanical breakdown policy, the transmission would most likely be covered under that policy.

What is the purpose of an adjuster's interim report?

This report merely provides the status of a claim prior to finalization.

To be eligible for a standardized Watercraft policy, the insured watercraft must be used on inland or coastal waters within:

To be eligible for coverage under the standardized ISO Watercraft policy, the watercraft must be used on inland or coastal waters that are within 12 miles of the shore or in the Great Lakes, but only when within the United States and its territories, Puerto Rico, or Canada.

All of the following items may be covered by a Commercial Inland Marine policy, EXCEPT:

Transport vehicles

Jerry's car is involved in an accident that has left him without a vehicle to drive. How much, if any, can he collect for his transportation expenses under Part D of his policy?

Transportation expenses are an additional coverage if the insured has purchased collision and/or other than collision coverage. $20 per day up to $600 is available. Coverage begins 48 hours after a theft loss and 24 hours for any other covered loss

Under the definitions section of the CGL policy, the term "your product" does not include:

Vending machines rented to or located for use by others

The cost of defense is paid without limitation and does not affect the limit of liability for damages. When does the insurer's duty to defend and pay these defense costs end ?

When the limit of liability is exhausted through the payment of settlements or judgments

Which of the following zones is not expected to flood during the "base flood"?

X zones

When a liability policy is contested, which of the following entities ultimately determines legal liability?

a court of law

The '' part B medical payments'' coverage of a personal automobile policy covers injuries for all of the following except

a passenger who is injured in another vehicle that is struck by the insured's vehicle in an accident.

Which of the following expenses would be covered, in full or in part, by the "supplementary payments" section of the Personal Automobile policy?

bail bonds loss of earnings for attendance at trials or hearings post judgment interest

On a standard BOP policy, all of the following items have a limitation on the coverage amount if the cause of loss is theft, EXCEPT:

computers

A guest on vacation deposits cash and traveler's checks in the hotel safe deposit box located behind the front desk. When the guest attempts to retrieve them, the box is empty. What coverage is required to cover this loss for the hotel?

guests property

The "standard fire policy" does not cover which of the following?

money, deeds, currency

All of the following items are given a "special limit of liability" under Coverage C of the Homeowners policies, EXCEPT:

motorized land vehicles

All of the following are reasons the federal government encouraged private insurance carriers to participate in the WYO program, EXCEPT:

provide federal government jobs to insurance agents who would be in charge of selling the WYO policies

After paying a claim an insurance company may have the right to pursue legal action against the negligent party. This is known as:

subrogation

David has damaged his vehicle by striking a tree. He can:

take the car to a repair garage recommended by the insurer take the car to a repair garage of his choice accept payment based on the adjuster's estimate

A new Hampshire insured has wrecked his vehicle. The insurer has asked for an estimate of damage. Who is responsible for the fee for this first estimate.

the insured