Guarantee Exam Missed Questions

Eligibility requirements for obtaining property coverage in the FAIR plan include all of the following EXCEPT a. risk must be located in a specific area b. risk must be owner occupied c. risk must be insurable d.the applicant must have made an unsuccessful effort to obtain coverage in the normal market

risk must be owner occupied

Under coverage C at the request of the insured, personal property of a guest or residence employee is covered a. while it is in any residence premises occupied by a named insured b. anywhere in the world c. only while on a residence premises d. while it is in any residence premises occupied by an insured

while it is in any residence premises occupied by an insured

The business owners policy extension coverage form for personal property off-premises is limited to A.2,500 B. 5,000 C. 10,000 D. 15,000

10,000

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 damage, the insured pays $900 in rent for a short-term apartment and the renter is forced to find other accomidations. Disregarding any extra expense for meals, how much would an HO-3 pay under coverage D? a. 150 b. 300 c. 900 d. 1050

1050

Homeowners policy limte the amount of property and liability coverage available for boatowners only $____ of coverage is provided in the HO policy for damage to watercraft, accessories, equipment, and trailers a. 1500 b, 2000 C. 2500 d. 1000

1500

Under Coverage E-Scheduled Farm Personal Property, livestock that is not specifically insured is limited to a coverage limit of A. $500 per head B. 1,000 per head C. 2,000 per head D. 2,500 per head

2,000 per head

If the Department of Insurance requests information from an agent regarding a claim, the information must be provided within how many days? a. 10 days b.15 days c. 21 days d. 30 days

21 days

Costs to repair, recover, or recondition will exceed the policy limits, so the insurer pays the policy's agreed value. This is called

A constructive total loss

The limited theft endorsement designed for a landlord excludes all of the following EXCEPT A. money stolen from the tenant's apartment B. silverware stolen from the landlord's china cabinet C. a lawnmower the landlord owns and keeps at rented premises D. Jewelry stolen from the landlord's home

A lawn mower the landlord owns and keeps at the rented premises

If the ocean marine contract insures the property for an amount agreed to by the insured and insurer at the time the contract is made, it is considered A. a valued contract B. a replacement cost contract C. a demurrage contract D. An indemnity contract

A valued contract

All are legal defenses against a claim of negligence EXCEPT A. contributory negligence B. assumption of risk c. Absolute liability d. intervening cause

Absolute liability

Which commercial property form is used to insure buildings while under construction? A. business income B. builders risk C. legal liability D. Building and personal property

Builders risk

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 the DP-1? A. Coverage B-other structures B. coverage D-fair rental value C. coverage E- additional living expense D. Coverage A-dwelling

Coverage E- additional living expense must be obtained through an endorsement in DP-1

Coverage C in homeowners policy forms offers all of the following EXCEPT A. coverage for property located at another residence premises B. Coverage for loss of use C. Worldwide coverage D. coverage for property of others

Coverage for loss of use

What policy would a business owner whose business fills scuba tanks most likely need to insure unfired pressure vessels and compressors? A. commercial general liability B. Contractors equipment floater C. Equipment breakdown D. inland marine scuba floater

Equipment breakdown

Under the farm property and livestock coverage forms, which of the following property is covered for loss by the perils of earthquake or flood? A. farm animals B. farm machinery C. Attacks by dogs of the insured D. Household contents

Farm animals

All advertisements, regardless of their source of creation, are the responsibility of the A. department of insurance B. Insurer C.Insured D. Advertising agency

Insurer

which statement best describes agreement as it relates to insurance contracts? A. one party accepts the exact terms of the other party's offer B. The intent of the contract must be legally acceptable to both parties C. All parties must be capable of entering into a contract D. Each party must offer something of value

One party accepts the exact terms of the other party's offer

What kind of coverage does a Form DP-3 provide? A. broad peril B. Open peril C. Basic peril d. named peril

Open peril

The exact, direct, uninterrupted cause of the loss is the A. absolute cause B. Proximate cause C. Actual cause D. Intervening cause

Proximate Cause

Upon payment for a loss, the insured is obligated to surrender to the insurer the right to sue a negligent third party. This is called A. insurable interest b. entirety C. subrogation D. indemnity

Subrogation

What amount of coverage is provided on HO policies for watercraft A. up to 1,500 B. up to 10,000 C. up to 2,000 D. None

Up to 1,500

When insurance is written on a dwelling form, which of the following types of property would be insured under coverage b-other structures? A. building equipment and outdoor equipment B. a garage separated from the dwelling C. materials and supplies used for construction or repair of the dwelling D. a laundry room attached to the dwelling

a garage separated from the dwelling

what is a sudden, unplanned, and unexpected event, not under the control of the insured, resulting in injury or damage that is neither expected or intended called? a. burglary b. peril c. hazard d. accident

accident

Two men are partners in a moving company. They have two trucks used to move property of others. They should insure their trucks under a A. Commercial auto fleet policy B. Business Auto policy C. personal auto policy D. garage liability coverage form

business auto policy

in order to receive transportation expenses under the personal auto policy following damage to your auto caused by collision, you must have a. collision coverage b. uninsured motorist property damage c. supplementary payments d. other-than-collision coverage

collision coverage

A scheduled personal property endorsement will be used to insure A. high value items only within the US B. Personal vehicles used by travelers anywhere in the world C. personal items at their actual cash value D. higher limits of coverage for fine arts items

higher limits of coverage for fine arts items

what coverage form in the farm policy insures equipment on an open peril basis a. livestock b. farm property c. farm liability d. mobile agriculture machinery and equipment

mobile agriculture machinery and equipment

All of the following are additional coverages under a homeowners policy EXCEPT A Outbuildings B. fire department service charge C. coverage for trees, shrubs, and other plants D. payment for reasonable repairs and debris removal following a covered loss

outbuildings

For an additional premium, the extended coverages written on the basic form dwelling policy would cover which of the following? A. riot B. vandalism C. glass breakage D. Fire

riot

a trucking company's 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 other vehicles and injuries to 2 individuals. Under the commercial auto liability conditions, which policy pays for this loss? a. the policy for the company that borrowed the truck will be primary, and the titled owner of the truck will be excess b.the insurance companies will share in the settlement based on the other insurance conditions c. only the insurance company for the borrower of the truck will pay for damages and injuries d. the policy for the titled owner of the truck will be primary, the borrowers will be secondary

the policy of the company that borrowed the truck will be primary and the titled owner will be secondary

an individual skilled in the process of selecting risks that will not create adverse selection for an insurance company is called a. general agent b. actuary c. underwriter d. adjuster

underwriter

The insured's product under a commercial general liability policy does NOT include which of the following? A. vending machines rented to others B. containers furnished in connection with the product C. Warranties made with respect to the fitness or quality of the product D. any goods or products manufactured by the insured

vending machines rented to others

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? A. it will be paid if the debris removal endorsement has been added B. HO policies do not cover debris removal C.An additional 5% of the policy limit may be paid for debris removal D. because the full policy limit must be paid for the house, there is no coverage for debris removal

An additional 5% of the policy limit may be paid for debris removal

All of the following persons would be covered under a business auto policy EXCEPT A. the owner from whom a trailer is borrowed and connected to an auto owned by the named insured B. An employee of the named insured operating an auto that is owned by the employee's spouse C. a person operating an auto borrowed by the named insured, with permission D. A person operating a covered auto with permission of the insured

An employee of the named insured operating an auto that is owned by the employee's spouse

Workers compensation rating is developed by applying a rating bureau job classification rate to which of the following A. minimum wage B. Job tible C. Payroll D. Noncash compensation

Payroll

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 A. the liability policy of the golf course B. the property coverage of the golf course C. the golfer's homeowners liability coverage D. the homeowners property coverage on the house

The golfer's homeowners liability coverage

an insureds home catches fire. As a result the insureds family must stay in a motel until the home is repaired. The cost would be considered a a. consequential loss b. resulting loss c. direct loss d. negligent loss

consequential loss

Under coverage B-other structures, a homeowners policy provides coverage for other structures on the residence premises. Which of the following statements is NOT true of this coverage? A. a detached garage may be covered if rented to others as a private garage B. Other structures may not be used to store business property of others, even though a business is not conducted from the structure C. Any loss paid under Coverage B reduces the Coverage A limit of liabilty D. other structures covered under coverage B must be set apart from the dwelling by clear space

Any loss paid under coverage b reduces the coverage A limit of lability

You are at fault in an auto wreck out of state. How does your company adjust? A. The limit of your policy no matter what the other state's minimum B. By the other state's highest form C. Will not pay at all D. to at least the minimum required by that state

At least the minimum required by that state

Which of the following is the best definition of "indemnification" A. a contract whereby one undertakes to indemnify another against loss, damage, or liability B. The act of one person who agrees to restore an injured person to the condition he/she enjoyed prior to the loss C. A legal entity which acts on behalf of itself, accepting legal and civil responsibility for the actions it performs and making contract in its own name D. a contract whereby the two parties involved agree to what things of value will be exchanged by the parties to the contract

The act of one person who agrees to restore an injured person to the condition he/she enjoyed prior to the loss

Employers liability coverage under a workers compensation policy includes a. Damages caused by third parties b. injury occurring outside the US c. punitive damages awarded because a worker was employed in violation of law d. injury caused intentionally by the insured

damages claimed by third parties

which of the following statements does NOT describe endorsements? a. endorsements are printed addenda to a policy b. endorsements must be signed by an executive officer c. endorsements only add coverage to a current policy, not remove d. endorsements may be added during the policy term

endorsements only add coverage to a current policy, not remove

An insured's diner suffered a fire loss. In addition to the damge caused by teh fire, the floor covering had to be replaced because of the water damage. It took 4 weeks for the repaires to completed, the insured was without income for that period of time. The insured's policy included both direct and indirect loss coverage. What part of the loss would be paid as indirect loss? A.the cost of replacing the floor covering due to the water damage B. both the loss of income and the cost of the floor covering C. the entire loss would be paid as a direct loss by fire D. the loss of income for the time the diner was closed

the loss of income for the time the diner was closed

which of the following exclusions applies to both personal injury and advertising injury in the business owners policy A. the wrong description of the price of goods, products, or services B. willful violation of a penal statue or ordinance committed by the insured C. breach of contract under an implied contract D. an offense committed by an insured whose business is advertising

willful violation of a penal statute or ordinance committed by the insured

which of the following statements is CORRECT regarding business income coverage under the business owners policy A. the business income losses are payable for 12 consecutive months following the occurrence B. the business income coverage is subject to coinsurance limitations of 50% C. The business income coverage has and aggregate dollar limit D. the business income coverage has a monthly limitation and a set benefit period

The business losses are payable for 12 consecutive months following the occurrence

Which of the following is covered by auto other-than-collision (comprehensive) coverage A. radar detector B. portable CD player C. Awning attached to the car for camping D. electric equipment required for the normal operation of the car

Electric equipment required for the normal operation of the car

Which of the following describes an insurer's responsibility for payment under a policy, as stated in the common policy provisions? A. consideration B. Utmost good faith C. premiums D. limits of liability

Limits of liability

Which of the following is FALSE concerning liability coverage of a business auto policy? A. The company will pay any interest accruing between time of judgement and payment B. the company will defend any suit alleging bodily injury or property damage covered by the policy C. The company will reimburse the insured for all loss of earning D. The company will pay the premium on any appeal bond

The company will reimburse the insured for all loss of earnings

While engaged in a pick-up soccer game in the neighborhood park, the insured collides with another player, breaking his nose. Would the insured's homeowners medical payments cover the injury? A. no, because even though it was a pick-up game it was an organized event B. no, personal liability applies on -premises only C. no, the insured was not negligent D. yes, medical payments coverage also applies off the insured premises

yes, medical payments coverage also applies off the insureds premises