Guarantee Missed Questions P&C

Which of the following is a method of establishing a premium on large commercial accounts:

Retrospective rating.

An insured's diner suffered a fire loss. In addition to the damage caused by the fire, the floor covering 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's policy includes both direct and indirect loss coverage. What part of the loss would be paid as indirect loss?

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

If an insurance policy has the additional coverage provision how does it affect the policy?

There is no additional premium.

Which of the following is NOT true regarding insurance consultants:

They may be employed by licensed producers or brokers

An insured is the owner of a clothing boutique. She has a Floor Plan Merchandise Floater to cover the property that is financed until it is sold. At closing time a month ago, she noticed that very expensive dresses had been stolen. However, she did not file a report to her insurance company until recently. How much will her insurer pay for this loss?

90% of the limit written

Which of the following would be required to become licensed as an insurance producer?

A customer service representative who solicits no more than one policy a year.

All of the following persons would be covered under a business auto policy EXCEPT:

An employee of the named insured operating an auto that is owned by the employees spouse.

The Second Injury Fund will pay the benefits in which of the following situations:

An employee with a previous injury suffers a second injury that causes the disability to be more serious.

You are at fault in an auto wreck out of state. How does your company adjust?

At least to the minimum required by state.

Which of the following describes an insurers responsibility for payment under a policy, as stated in the common policy provisions.

Limits of Liability

In a BOP which of the following would be covered?

Medical Expenses

Which of the following is the other major coverage provided by the business owners liability coverage form?

Medical Payments

Guaranteeing future dividends is considered to be an unfair or deceptive act known as

Misrepresentation

Among people in the same class and life expectancy, which of the following factors can be used to influence premium rates?

Occupation

The BOP extension coverage form for personal property off premises is limited to:

$10000

In terms of Workers Compensation, which of the following would NOT be considered an employee:

A Theatrical Performer

Which of the following entities is eligible for a business owners policy?

Convenience Stores

In a DP-1, if the insured elects to apply Coverage B to detached garage, Coverage A will:

Be reduced by 10%

The commercial crime coverage that would cover losses resulting from theft of money, securities and other property by employees is:

Employee Theft

Space Age Rockets makes model rocket supplies and has 12 employees. The company is located in Atlanta, GA. Georgia has 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:

Forced payment of billing for services rendered by any private insurer that "binds" coverage based on an employee's request for coverage

Under the employee theft coverage, when a covered employee is found to have participated in a dishonest act, the coverage for that employee will terminate:

Immediately

An insured has extended coverage on her dwelling that includes coverage for vandalism and malicious mischief. One evening, she is sitting in her living room when she hears a crash and the sound of glass breaking. She runs to the door and discovers a brick has been thrown through her glass door. What is the name of the form she must file:

Notice of Claim

In reference to insurable interest, which of the following is NOT an element of insurable risk:

Personal

A small appliance manufacturer in this state provides products around the globe. A customer in Switzerland is injured using one of its products. If the appliance manufacturer is found liable for the damages, why would its commercial general liability policy cover the customers claim for BI?

The appliance was manufactured in the United States.

Which of the following policies can be written by a nonresident agent without a resident agents countersignature:

Life Insurance

All of the following are considerations in determining which state's law applies when a worker is required to travel into another state and is injured while working in the other state EXCEPT:

The insureds chartered or domicile

If a car is stolen and left in a snow bank and the radiator freezes and does a lot of damage, is the damage covered by the auto policy?

Yes, freezing exclusion is removed if the car is stolen.