GUARANTEED EXAM

What type of policy, which may be added by endorsement or purchased separately, may an insured purchase in order to provide coverage for other types of contracts?

A constructual liability policy

Which of the following persons is required to hold a producer's license in this state?

A salary employee who advertises and solicited insurance

After a covered loss on a homeowners policy, the insured must do all of the following EXCEPT

Abandon the property involved to the insurer

For negligent liability to exist, which is NOT a requirement?

An intervening clause

A driver who has an auto policy with limits of liability lower than required by state law would be considered

An uninsured motorist

In order to get a nonresident license in Louisiana, producers must

Apply and pay a few to a nonresident state that reciprocates

Chris, who is unlicensed, works part time in her father's insurance agency. She may perform all the following activities except,

Collect premium for in force policies

Under which legal defense may a claimant's recovery be defeated if the defendant can show that the claimant contributed, no matter how slightly, to the injury or damage?

Comparative negligence

Which of the following exclusions would specifically fall under Coverage E?

Contractual liability

Which of the following is not covered under the garage liability coverage form?

Contractual liability

The supplementary payments section of the commercial general liability policy would cover?

Court costs assessed against the insured in a suit

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

Employee theft

More favorable benefits for interstate railroad workers

FELA Federal Employers Liability Act

What is an insured contract?

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 of the law coverage endorsement?

to remove the exclusion of losses resulting from ordinances or laws

Which of the following is NOT part of Section II of the boatowners policy?

watercraft damage

Under coverage C, and at the request of an insured, personal property of a guest or residence employee is covered

while it is in any residence premises occupied by the insured

Under Worker's Compensation Act

widow alone- 32 1/2 % widow w/ one child- 46 1/2% widow w/ 2 children 65%

When reviewing a standard workers compensation and liability policy, the limits of coverage are described as Part One of the policy. The dollar limits of the benefits provided are stated

in the workers compensation law itself

Which of the following would NOT be covered by commercial inland marine policies?

Property lost due to military action

Which of the following types of property is NOT moveable?

REAL PROPERTY

If an insured purchases an insurance policy with.a large deductible, what risk management technique is the insured exercising?

Retention

Business auto coverages apply only to those autos that are identified as covered autos in the DEC by entry Which symbol afford the broadest coverage?

1

If a producer allows his license to LAPSE..

2 years

If a producer allows his license to lapse, within what time period may the producer reinstate the same license?

2 years

How long is the period of time in which a licensee must renew his or her license?

90 days prior to expiration

An extended nonowned coverage endorsement provides protection to

Only the person(s) named on the policy

In reference to insurable interest, which of the following is not an element of insurable risk?

Personal

When an insured's gardener was spraying weeds in his lawn , he failed to notice that the wind was drifting the spray into the neighbor's yard where he damaged they flower bed. The insured was found legally liable for this damage. This is an example of

Vicarious liability

Which of the following would be considered a covered auto on your personal auto policy?

Your farm wagon being towed by your pickup truck

Which commercial property form is used to ensure buildings while under construction?

builder's risk

In order to receive transportation expenses under the personal auto policy following damage to your auto caused by collision, you must have

collision coverage

What two policy components are part of every commercial policy package?

common policy declarations and common policy conditions

An agent suspects that his insurer is committing insurance fraud. Within how many days of that discovery must the agent report the fraud to the Department of Insurance?

60 days

Section III of the business auto policy provides physical damage coverage. All of the following are physical damages that may be selected coverages EXCEPT

Limited peril coverage

Fair rental value coverage in the dwelling policy is similar to what homeowners policy form?

Loss of use

Which is not true of workers compensation coverage?

Medical payment benefits are limited

Loss Treasures has a guard dog in a fenced lot to protect a salvage area...

Mental anguish is a covered injury

What are two sources for workers compensation insurance?

Monopolistic state fund and competitive market

Policy limits are the maximum amount an insured may collect, or for which an insured is protected under the terms of the

Policy

All of the following are true about the cancellation provision of a commercial insurance policy EXCEPT

The insurer is required to provide proof that the insured received the cancellation notice prior to CX the policy

Which of the following coverages are not included in a garage policy?

physical damage on a customers auto

Coverage B- Personal and Advertising Injury Liability responds to claims arising from

suits alleging infringement of a copyright

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

Garagekeepers insurance provides coverage for the insureds liability for

damage to autos left in the insureds car for repair

What kind of coverage does for DP-3 provide?

open peril

A farm owner policy is usually what type of policy?

package policy

The personal property off-premises extension of dwelling forms provides limits of coverage up to

!0% of Coverage C anywhere in the world

An insured has a personal umbrella with a $2,000 self-insured retention (SIR). Assuming no other policy is involved, how much would the umbrella pay after a $12,000 personal injury liability claim?

$10,000

The Association's obligation for unearned premium resulting from the insolvency of a member insurers the amount of unearned premium or

$10,000

If an individual willfully violates provisions of the Fair Credit Reporting Act, what is the maximum civil penalty?

$2500

The obligation to compensate injured workers without regard to fault or negligence is known as

Absolute liability

Which of the following terms describes replacement nonmechanical sheet metal or plastic parts on the exterior of a motor vehicle?

Aftermarket crash parts

A general liability policy will respond to claims against an insured when bodily injury or property damage is caused by

An insured's negligence

Which of the following conditions is NOT included for farm liability in addition to the common policy conditions?

Arbitration

A personal umbrella policy may act as excess over any of the following insurance coverage policies except

Auto collision coverage

In the event of a loss, the most an insurer will pay is

The amount of the loss or the limits as stated in the policy, whichever is less

What was the purpose of the Motor Carrier Act of 1980?

To establish financial responsibility requirements for interstate motor carriers

An agent who knowingly misrepresents material information for the purpose of an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as

Twisting

When does the insurer's duty to defend a suit or claim end in commercial general lability policy?

When loss payments equal the applicable amount of insurance

While engaged in a pick-up soccer game in the neighborhood park, the insured collides with another player, breaking his nose. Would the insureds homeowners medical payments cover the injury?

Yes, medical payments coverage also applies off the insured premises

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

employee theft

An insurer incorporated under the laws of another state but doing business in this state is considered

foreign