Insurance pt 9

Which of the following dwelling policy forms primarily insures a structure on an actual cash value basis?

DP-1

Persons covered under an insurance policy, whether named or not, are known as the

Insureds

Which of the following is true regarding the fire department service charge under the builders risk form?

It is an additional coverage

Which of the following would be covered under the crime coverage inside the premises- theft of money and securities?

Loss or damage to a locked safe, vault, or cash register

What type of liability would a person who owns a swimming pool have?

absolute

Something of value exchanged between the insurer and the insured is considered an

consideration

A bond is written for a set limit, and the surety will be liable only for this amount of the limit. This limit is known as the

penalty

A dealership loans a car to its customer to use while the dealership is repairing the customer's car. If the dealership has business auto physical damage coverage a customers automobile insurance does not cover damages to loaner cars, which of the following is true?

the loaner vehicle is covered by the business auto policy

Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?

warranty

If an insured is in the process of moving to a new location, his personal property coverage under the dwelling policy will apply on a pro rata basis at both locations for

30 days

Insurable Interest in the property covered in a policy must be proven

At time of loss

The extra expense coverage form provides

Coverage that will permit the insured to continue in business without interruption following a property damage loss.

CGL Coverage B (Personal Injury and Advertising Injury) will cover

Inadvertent injury to others caused in the course of advertising the insured's product.

In which type of commercial crime policy coverage is triggered by a loss that happens during the policy period but is not necessarily discovered during the policy period?

Loss sustained form

Which of the following coverages is included in an unendorsed homeowners policy?

Medical Payments to Others

The Physicians and Surgeons Equipment Floater in NOT intended for which of the following?

Medical supplies located in a hospital... This coverage form protects individuals in the medical or dental profession for loss to valuable medical and dental equipment, materials and supplies, including office equipment and furniture, and similar property of others. Coverage is not intended for hospitals, schools or other institutions.

An insurance agency could purchase an errors and omission insurance policy which would provide protection in the event of any of the following events EXCEPT

The agency loses commission income from policies that were not issued by the insurer.

All of the following statements concerning coinsurance are true EXCEPT

The coinsurance formula also will be applied to total losses

In insurance, an offer is usually made when

The completed application is submitted

Which of the following statements is true regarding the commercial general liability policy's Coverage C- Medical Payments?

The coverage is considered good will because payments are made without regard to fault.

The occurrence form trigger is based on which of the following?

The date when injury or damage occurs

Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy?

The insured would be responsible for the amount required as underlying limits in the event of a claim.

A commercial package policy (CPP) allows the insured to select the coverage needed and customize the policy to meet the needs if the insured'a business in a CPP the business owner may select from all of the following types of coverage EXCEPT

Workers compensation coverage

What method of premium computation relates an employer's losses, payroll, and premiums to the rating bureau's classification of operations?

Experience modification factor

ABC Trucking hauls products for Acme, Inc. as a contract carrier. On one shipment, the driver stopped at a truck stop for lunch. Leaving the truck in the parking lot, he made certain that the truck was locked before leaving it. Upon returning to the truck, he discovered that someone had broken into the truck and stolen the cargo. Is ABC legally liable for this loss?

No, the driver had taken reasonable measures to protect the property by locking the truck

When does the coverage begin under the builders risk form?

On the date construction starts

According to the businessowner policy (BOP) definitions, which of the following does NOT mean valuable papers and records?

Securities

With respect to commercial auto policies, the Garage Coverage Form provides liability protection for all of the following EXCEPT

The insured's business income losses due to personal injury.

All of the following are true regarding physical damage coverage EXCEPT

The limit of liability is the greater of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle.

A claim considered to have been made

When notice is received and recorded by any insured or the insurer whichever comes first