guarantee questions

an insurer that operates for one or more social, educational, charitable, benevolent, or religious purposes for the benefit of its members is known as a a) mutual insurer b) reciprocal insurer c) stock insurer d) fraternal insurer

fraternal insurer

for an additional premium, the extended coverages written on the basic form dwelling policy would cover which of the following? a) vandalism b) glass breakage c) fire d) riot

riot

which of the following is most likely INELIGIBLE for coverage under the businessowners policy? a) a bank b) a fast-food restaurant c) a retailer with gross annual sales of $100,000 d) an office with total floor area of 5,000 square feet

a bank

homeowners policies limit the amount of property and liability coverage available for boatowners. How much coverage is provided in the homeowners policy for damage to watercraft, accessories, equipment, and trailers? a) $2,000 b) $2,500 c) $1,000 d) $1,500

$1,500

the personal property off-premises extension of dwelling forms provides limits of coverage up to a) 10% of Coverage A anywhere in the US or Canada b) 10% of Coverage A anywhere in the world c) 10% of Coverage C anywhere in the US or Canada d) 10% of Coverage C anywhere in the world

10% of Coverage C anywhere in the world

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? a) nothing b) 50% of half of the limit of insurance, or 25% c) 50% of the limit of insurance d) all of the cost, up to the limit of insurance

50% of the limit of insurance

Which homeowners form provides open peril coverage for dwelling (Coverage A) and contents (Coverage C)? a) Form 2 b) Form 3 c) Form 5 d) Form 8

Form 5

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

collision coverage

under which legal defense may a claimant's recovery be defeated if the defendant can show that claimant contributed, no matter how slightly, to the injury or damage? a) presumed negligence b) contributory negligence c) comparative negligence d) pro rata liability

contributory negligence

employers liability coverage under a workers compensation policy includes a) injury caused intentionally by the insured b) damages claimed by third parties c) injury occurring outside the United States d) punitive damages awarded because a worker was employed in violation of law

damages claimed by third parties

the commercial crime coverage that would cover losses resulting from the theft of money, securities and other property by employees is a) funds transfer fraud b) forgery or alteration c) inside the premises - theft of money and securities d) employee theft

employee theft

which of the following is NOT true regarding the automatic increase in insurance endorsement in dwelling policies? a) it increases the amount of coverage by an annual percentage b) it is optional c) it provides protection from inflation d) it does not require additional premium

it does not require additional premium

which of the following covers the interest of a secured lender in personal property? a) loss payable clause b) Fair value clause c) Third-party clause d) Indemnity clause

loss payable clause

guaranteeing future dividends is considered to be an unfair or deceptive act known as a) False financial statements b) rebating c) misrepresentation d) churning

misrepresentation

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

an insured is injured while driving his own car. Which of the following coverages will pay for the loss? a) part A - Liability b) part B - Medical Payments c) part C - Uninsured Motorist d) part D - Damage to your auto

part B - Medical Payments

which of the following would NOT be considered an unfair claim settlement practice? a) advertising benefits not representative of actual benefits b) circulating false claims regarding another insurer c) failing to address claim issues in a reasonable time period d) refusing to pay claims following an investigation

refusing to pay claims following an investigation

which would NOT be covered by an insured's uninsured motorist coverage? a) the insured's neighbor borrowed the insured's car and was hit by an uninsured motorist b) the insured's car is hit by someone whose auto insurer is insolvent c) the insured's son is stuck by a hit and run driver d) the insured causes a head on collision with the car of an uninsured motorist

the insured causes a head on collision with the car of an uninsured motorist

which of the following is true regarding an insured's rights after the insurer fails to provide 60 days written notice before terminating a policy? a) the insured must be allowed an additional 30 days before termination takes effect b) the insured is entitled to a refund of any unearned premium c) the insured is entitled to maintain the insurance coverage for another year d) the insurer must refund any premiums made after the written notice of termination is received

the insured is entitled to maintain the insurance coverage for another year

each of the following may be insured under an HO-3 homeowners policy EXCEPT a) an occupant of a dwelling under a life estate arrangement when dwelling coverage is at least 80% of the current replacement cost b) one co-owner when each distinct portion of a two family dwelling is occupied by co-owners c) the intended owner-occupant of a dwelling under construction d) the owner-occupant of a condominium unit

the owner-occupant of a condominium unit

rates for earthquake coverage in property policies are generally determined by which of the following? a) the type of construction b) county property taxes c) the number of liens on the property d) the age of the dwelling

the type of construction

which of the following would be considered a covered auto on your personal auto policy? a) your farm wagon being towed by your tractor b) your farm wagon being towed by your pick up truck c) your pickup truck used for deliveries of your retail business d) your farm tractor

your farm wagon being towed by your pick up truck

An insurance agent who represents multiple companies on a nonexclusive basis and earns commissions on personal sales is working in what kind of marketing system? a) Managerial System b) Independent Agency System c) Exclusive Agency System d) General Agency System

Independent Agency System

which of the following symbols in a business auto policy indicates that coverage for newly acquired vehicles applies if the insurer already covers all autos owned by the insured? a) Symbol 1 b) Symbol 2 c) Symbol 7 d) Symbol 19

Symbol 7

which of the following risks would be eligible for coverage under a dwelling policy form? a) a duplex that is occupied by two families, each of which have a bedroom rented to a boarder b) a single-family dwelling occupied by a single person who operates a business of buying and selling firearms in the basement c) a single-family dwelling that contains a beauty shop that employs three full time operators d) a single-family dwelling that is located on farm premises

a duplex that is occupied by two families, each of which have a bedroom rented to a boarder

which of the following would NOT be eligible for coverage under a personal auto policy? a) a trailer owned by the insured b) a vehicle purchased 90 days ago c) a vehicle listed on the declarations page d) a nonowned temporary substitute vehicle

a vehicle purchased 90 days ago

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 a) while sweeping the floors, an insured's resident maid trips and falls down the stairs, breaking her leg b) an insured's boat stored in the garage slips off of its supports and injures a visitor c) an insured's dog left in the car of a friend bites a salesman d) an insured's 14 year old son was throwing rocks at the neighbors house and broke several windows

an insured's 14 year old son was throwing rocks at the neighbors house and broke several windows

You are at fault in an auto wreck out of state. How does your company adjust? a) by the other states highest form b) will not pay at all c) at least to the minimum required by that state d) the limit of your policy, no matter what the other states minimum

at least to the minimum required by that state

the purpose of the Connecticut Automobile Assigned Risk Plan is to provide a) auto insurance to those who otherwise qualify, but are unable to purchase coverage in the normal market b) auto insurance to everyone who wants it c) a method to ensure that everyone has affordable auto insurance d) a guarantee that every insurer will have a share of the auto insurance market

auto insurance to those who otherwise qualify, but are unable to purchase coverage in the normal market

Roger owned a grocery store and had a reporting form policy with a $100,000 limit for the stores inventory. The last report Roger submitted was during a slow period and showed a value of $50,000. The value increased to $75,000, and Roger failed to submit his next report when due. What is the maximum amount of coverage Roger has? a) $75,000 b) $100,000 c) $25,000 d) $50,000

$50,000

a personal umbrella policy may act as excess over any of the following insurance coverage policies EXCEPT a) auto liability coverage b) comprehensive personal liability c) auto collision coverage d) homeowners Section II coverage

Auto collision coverage

Homeowners policies consider all of the following insured locations EXCEPT a) a strawberry patch owned by the insured b) land owned by the insured on which his new home is under construction c) an individual cemetery plot d) the hotel ballroom rented by the insured for a family reunion

a strawberry patch owned by the insured

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) HO policies do not cover debris removal b) an additional 5% of the policy limit may be paid for debris removal c) because the full policy limit must be paid for the house, there is no coverage for debris removal d) it will be paid if the debris removal endorsement has been added

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

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

endorsements may only add coverage to a current policy, not remove

what policy would a business owner whose business fills scuba tanks most likely need to insure unfired pressure vessels and compressors? a) contractors equipment floater b) equipment breakdown c) inland marine scuba floater d) commercial general liability

equipment breakdown

M works for a manufacturing company that makes ball bearings. The company has a comprehensive Workers Compensation program. M slipped on a dropped ball bearing and had to be off work for 3 months. To assure the maximum compensation available, M should a) file a workers compensation claim with the company b) sue the company's insurer for the maximum punitive damage claim c) sue the employer for negligence and be awarded damages d) file a claim for short-term disability payments with the employee-sponsored policy

file a workers compensation claim with the company

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 a) in 30 days b) on the anniversary of the bond c) upon employee's conviction d) immediately

immediately

when reviewing a standard workers compensation and employers liability policy, the limits of coverage are described in Part One of the policy. The dollar limits of the benefits provided are stated a) in Line Item 3(A) of the policy information page b) in paragraph 1 of Part One as directed by law c) in the state workers compensation law itself d) on the face of the policy declarations page

in the state workers compensation law itself

second-injury funds of workers compensation allow employers to hire previously injured employees which have a partial, yet permanent, impairment and a) allow an insured to make sequential claims from two separate companies for the same insurable loss b) limit the employer's potential loss payable for an injury c) require the employer to retain a specific amount of loss during a specified period of time d) allow an employer to deny ALL claims that might have been possible if the prior injury have not occurred

limit the employer's potential loss payable for an injury

which is NOT true of workers compensation coverage? a) it offers death benefits b) it offers rehabilitation benefits c) medical payment benefits are limited d) medical payment benefits are unlimited

medical payment benefits are limited

Lost Treasures has a guard dog in a fenced lot to protect the salvage yard. The dog scared a passerby, who now claims that it was a traumatic experience and that he now suffers from recurring nightmares. A claim for personal injury of $5,000 is filed against Lost Treasures. Why will the personal and advertising injury liability section (Coverage B) of the CGL policy cover this claim? a) the injury was expected or intended b) the occurrence was off premises c) mental anguish is a covered injury d) animals are excluded from coverage

mental anguish is a covered injury

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

mobile agriculture machinery and equipment

in CT an employer unable to obtain workers compensation through a private insurer may a) obtain insurance through the Connecticut Workers Compensation Insurance Plan after being rejected by 2 insurers b) obtain insurance through the Connecticut Workers Compensation Insurance Plan after being rejected by any other insurer c) obtain insurance through the National Workers Compensation Fund d) be exempted from the requirements of the law

obtain insurance through the Connecticut Workers Compensation Insurance Plan after being rejected by 2 insurers

the individual named insured endorsement offers liability coverage to the sole proprietor of a business and his or her family members. Which coverage is also provided under the individual named insured endorsement of a commercial auto policy for owned passenger vehicles and nonowned autos? a) mobile equipment coverage b) physical damage coverage c) medical payments coverage d) broadened coverage

physical damage coverage

businessowners liability coverage automatically includes all of the following liability coverages EXCEPT a) contractual b) host liquor c) product d) pollution

pollution

which of the following is NOT available in a package policy? a) fire legal liability b) medical payments c) professional liability d) business auto liability

professional liability

the purpose of the Fair Credit Reporting Act is to a) ensure the consumers receive a copy of investigative consumer reports b) ensure coverage for all applicants c) protect consumers against the circulation of inaccurate or obsolete personal or financial information d) protect the insurer from adverse selection

protect consumers against the circulation of inaccurate or obsolete personal or financial information

all of the following are true regarding the federal Fair Credit Reporting Act EXCEPT a) the customer must be notified if adverse action is taken as a result of a report b) reports may be sent to anyone who requests one c) insurers are not required to give customers a copy of the report d) it applies to credit reports ordered in connection with insurance, banking and employment

reports may be sent to anyone who requests one

Coverage B - Personal and Advertising Injury Liability responds to claims arising from a) suits alleging infringement of a copyright b) scope of patent protection c) failure of products to perform as advertised d) premises and operations injury claims

suits alleging infringement of a copyright

which of the following statements is CORRECT regarding business income coverage under the businessowners policy (BOP)? a) the business income coverage has a monthly limitation and a set benefit period b) the business income losses are payable for 12 consecutive months following the occurrence c) the business income coverage is subject to coinsurance limitations of 50% d) the business income coverage has an aggregate dollar limit

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

an insured was backing his car out of the driveway and hit a fire hydrant. The automobile sustained $1,300 of damages to the bumper. The insured's auto policy has a $500 deductible. Which of the following is true? a) the insured will pay all but $500 of any claims he makes on his policy b) the insured is responsible for the first $500 of any claim that he makes on his policy c) the insured is responsible for the total of $500 on claims made for the calendar year on the policy d) the insured will receive a $500 discount on all repair work that is contracted by his insurer

the insured is responsible for the first $500 of any claim that he makes on his policy

what is an insured contract? a) those contracts that are automatically covered under the exposure of premises coverage in a general liability insurance contract b) those contracts for which specific individual policies are written c) only those contracts for which a specific premium is charged in the policy d) only those contracts that specifically name both parties to the contract in the policy

those contracts that are automatically covered under the exposure of premises coverage in a general liability insurance contract

what is the purpose of the ordinance or law coverage endorsement? a) to enforce ordinances or laws as they pertain to insurance policies b) to protect the insured against losses caused by laws c) to remove the exclusion of losses resulting from ordinances or laws d) to exclude losses resulting from newly issued ordinances or laws

to remove the exclusion of losses resulting from ordinances or laws

under Coverage C, and at the request of an 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

what is the main distinction between a hired auto and a nonowned auto? a) who owns the auto b) the length of time the insured uses the auto c) the amount of premium d) whether a payment is made for the use of the auto

who owns the auto

which of the following exclusions applies to both personal injury and advertising injury in the businessowners policy? a) an offense committed by an insured whose business is advertising b) the wrong description of the price of the goods, products, or services c) willful violation of a penal statute or ordinance committed by the insured d) breach of contract under an implied contract

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

medical benefits under workers compensation statutes are provided a) for up to $500,000 per injury or disease b) for a certain percentage of the worker's annual income c) for up to $100,000 per injury or disease d) without limit

without limit