guaranteed exam
The maximum monetary penalty for an agent who violates an insurance law, rule, or order is
$25,000
The personal property off -premises extension of dwelling forms provides limits of coverage up to
10% of Coverage C anywhere in the world
According to business property coverage form vacancy condition, if a policy is issued to the owner of a building will be considered vacant if what portion of the square footage is unused
69%
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? a. 100% of the limit written b. nothing c. 50% of the limit written d. 90% of the limit written
90% of the limit written
Which of the following risks would be eligible for coverage under a dwelling policy form?
A duplex that is occupied by two families, each of which have a bedroom rented to a boarder
With regard to homeowners Section II, which of the following does NOT meet the definition of insured location?
A plot of farmland owned or rented by the insured
Homeowners policies consider all of the following insured locations EXCEPT
A strawberry owned by the insured
Under the garment Contractor Floater of an inland Marine policy, coverage while the property is in transit between the insured and the subcontractor is usually written on which basis
All-risk
Under a commercial general liability policy, which of the following is NOT considered mobile equipment?
An automobile used as a company car by a real estate company
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 employee's spouse
When an insured and her insurer could not agree on the amount of liability loss after the accident, the settlement was submitted to someone whose decision was then binding on both parties. What policy condition was applied?
Arbitration
A personal umbrella policy may act as excess over any of the following insurance coverage policies EXCEPT
Auto collision coverage
Which of the following components is NOT part of a policy structure
Benefits
Which of the following will be covered by businessowners property coverage form?
Buildings and business personal property
Insurers CANNOT transact insurance in this state without a?
Certificate of Authority
What two policy components are part of every commercial package policy?
Common policy declarations and common policy conditions
Which of the following exclusions would specifically fall under Coverage E in Homeowners inurance?
Contractual liability
The supplementary payments section of the commercial general liability policy would cover
Court costs assessed against the insured in a suit
Which of the following would NOT generally be included in the supplementary payments portion of a liability policy?
Damage to property's owned by the insured
The commercial crime coverage that would cover losses resulting from the theft of money, securities and other property by employees is
Employee Theft
An executive is accused of sexual harassment. What type of coverage would respond?
Employment practices liability
Which of the following statements is true regarding personal injury (PIP) coverage in auto liability policies issued in this state
The insured may reject this coverage in writing
All of the following are considered insured under the hired and nonowned auto liability endorsement added to a business owners policy EXCEPT
The owner of a nonowned vehicle
Under an H0-2 policy, the insurer will pay no more than the actual cash value of the property damage until
The property repair or replacement is complete
Which of the following statements regarding surety bonds is true
The purpose of the surety bond is to guarantee that specific duties or obligations will be fulfilled
An insured has decided to never drive another vehicle and wants to transfer his auto insurance policy to his wife. What does the insured need to transfer the policy?
The written consent of the insurer
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 agreement that is enforceable by law is known as what kind of contract?
legal
A general liability policy will respond to claims against an insured when bodily injury or property damage is caused by
An insured's negligance
When would uninsured motorist coverage apply under a personal auto policy?
An insured is involved in an auto accident with another motorist who is at fault and does not have any insurance
What policy would a business owner whose business fills scuba tanks most likely need to insure unfired pressure vessels and compressors
Equipment breakdown
Which of the following injuries may be covered under Coverage C-Medical Payments of a commercial general liability policy?
Injuries to a member of the general public that occurs on premises
Which of the following provisions is usually found in homeowners policies and provides a replacement cost settlement to policyholders who carry adequate insurance?
Insurance to value
Which of the following describes an insurer's responsibility for payment under a policy, as stated in the common policy provision
Limits of liability
Agents may be found guilty of defamation if they make a false statement that is intended to? A) malign another insurance company. B) mislead a prospect about a policy's term of coverage. C) misrepresent the benefits payable under a policy. D) defraud an insured or a claimant.
Maliciously criticize another insurance company
An insurance company that is owned by the policyholder is called a
Mutual Insurer
Which statement best describes agreement as it relates to insurance contracts?
One party accepts the exact terms of the other party's offer
What kind of coverages does From DP-3 provide
Open Peril
Policy limits are the maximum amount an insured may collect, or which an insured is protected under the terms of the
Policy
Which of the following is NOT available in a package policy?
Professional policy
Which of the following would NOT be covered under the directors and officers liability coverage
Reimbursement for fines and penalties
An applicant for a disability insurance policy has a heart condition of which they are unaware and therefore they answer no to the question pertaining to heart problems on their application. their answer is considered to be a
Representation
Which of the following is a method of establishing a premium on large commercial land
Retrospective rating
The amount of loss the insured is willing to absorb without insurance protection is
Self-insured retention
All of the following statements regarding personal property coverage in the homeowners program are correct EXCEPT
The H0-3 policy covers the mysterious disappearance of personal property
If an insurance policy has the additional coverage provision, how does it affect the policy premium?
There is no additional premium
An insurer may decline to renew a homeowners policy if the insured has filed how many claims under the policy in any 3-year period?
Three or more
What is the main distinction between a hired auto and a nonowned auto?
Who owns the auto
Claims from which of the following types of insurance will be covered by the Texas Property and Casualty Insurance Guaranty Associates?
Workers Compensatin
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?
Yes, medical payments coverage also applies off the insured premises
Your friend's dog that you are keeping while the friend is out of town bit a visitor in your home. Does your homeowners liability coverage apply?
Yes, the coverage would apply for any animal in your care