Insurance Test

In a Worker Compensation claim, there is no compensation for how many days after the injury?

7 days

Two man are partners in a moving company. They have two trucks used to move property of others. They should insure their trucks under a

Business auto policy

Which of the following is NOT an indicator of a competent party?

Business profession

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

Employee theft

What policy would a business owner whose business fills scuba tanks most likely need insure uniformed pressure versed and compressors?

Equipment breakdown

To have insurable interested in the person or property covered by a property insurance policy, which of the following potential risk must the policy owner face?

Financial loss

Which of the following would be considered a peril?

Fire

Which of the following is covered under dwelling policy?

Fire caused by an earthquake

According to the Insurance Code definition, which of the following coverages in NOT considered casualty insurance

Flood insurance

In a businessowners policy (BOP), which of the following would be covered?

Medical expenses

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

Misrepresentation

When does the federal emergency flood insurance program go into effect?

When a community applies for the program

Which of the following is indicated on a certificate of insurance

Amounts and types of insurance

The HO-4 form designed for tenants covers losses on what basis?

Broad peril

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

Builders risk

Business auto coverages apply only to those autos that are identified as covered autos in the declarations by entry of the appropriate numerical symbol. Which symbol affords the boards coverage?

1

The business liability coverage form will cover medical expenses incurred and reported within what a maximum time period after the accident

1 year

What guarantees that information explained in the insurance contract true?

A warranty

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

Abandon the property involved to the insurer

The businessowners liability coverage form would respond to a claim arising from which of the following events?

An injury arising out of a customer falling because of a wet floor

If a producer's license has been terminated, what is the producer required to do?

Return the license to the Commissioner immediately

What types of injuries could incur additional penalties and/or increased benefits paid by the employer?

The employer's willful failure to provide required safety goggles

All of the following are TREUE regarding the cancellation condition of a policy EXCEPT

The insurer must provide proof that the insured that the insured received the notice

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

There is no additional premium

Which of the following exclusions applies to both personal injury and advertising injury in the businessowners policy?

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

In less additional coverages are added to the businessowners policy (BOP), the maximum amount of coverage on an outdoor sign attached to a building is limited to

$1000

Harold is remodeling his home, and because of the distraction caused by the work, he forgot to mail in his insurance premium when it was due. How many days' noticed is he entitled to before the insurer can cancel policy

10

When a hearing regarding an insurance matter is requested, all parties must receive

10 days

If an insurer receives an inquiry from the Department of Insurance regarding a pending claim, the insurer must provide a response within

15 working days

An insurer needs to cancel a driver's personal auto insurance politics for multiple convictions of driving while intoxicated. What type of noticed to the insured is required?

20 days

What is the waiting period for transportation expenses coverage for a loss other than theft of a covered vehicle

24

Under the Business Personal Property Limit- Seasonal Increase, if no percentage is specified in their declarations, seasonal fluctuations will automatically increase the limit for business personal property by

25%

John had a disagreement with his insurer on the value of his damaged property. After making a written demand, both John and the insurer each selected an appraiser. The appraisers then agreed on a fair value without having to select an umpire. What condition did John use?

Appraisal

All admitted insurance companies in Arkansas are subject to fiscal examinations by the Commissioner

At least every 5 years

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

At least to the minimum required by that sate

Which of the following would be considered adequate proof of financial responsibility?

Certificate of Insurance

Which of the following provisions usually found in homeowners policies and provides a replacement cost settlement to policy holders who carry adequate insurance

Insurance value

Which of the following is NOT found in the common policy declarations of as commercial policy?

Insuring agreement

A structure may be eligible for coverage under the National Flood Insurance Program if it meets all of the following requirements EXCEPT

Is entirely over water

How does insurance distribute the financial consequences of individual losses?

It transfers the risk to all persons insured

Which of the following contract elements best describes insurance written in support of public policy

Legal purpose

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

Which of the following describes an insurer's responsibility for payment under policy, as stated in the common policy provision?

Limits of liability

Regarding worker compensation, what term is given to a situation that is more than 50% of the cause of an injury?

Major cause

What type of insurance protects against loss or damage to bridges, tunnels and other similar transportation facilities?

Marine insurance

All of the following are additional coverages under homeowners policy EXCEPT

Outbuildings.

Which of the following would be covered under the building and personal property coverage form?

Outdoor sign

Which of the following is consideration on the part of an insurer

Paying a claim

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

Personal

Which of the following is NOT available in a package policy?

Professional liability

According to the Insured Duties after a Loss provision in homeowners policies, in the event of loss, the insured must do all of the following EXCEPT

Promptly hire an adjuster to evaluate the property damage.

What is a bailee responsible for?

Property of others in his custody

Who administers the Fair Credit Reporting Act?

The Federal Trade Commission

Jane was granted a temporary license for her deceased's husband's agency on March 1st. On May 1st she processed an application for life insurance on a new applicant.

The application was processed without a valid license

Which of the following statements is CORRECT regarding business income coverage under businessowners policy (BOP)?

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

Late one night on his way home from a local bar, a man run his covered auto into an insured's car. The man was operating his car while under the influence of alcohol. The insured had no personal injuries, but her car had damage. Her insurance policy paid for the damages to her car. The Subrogation provision in her policy allows

The insurer to attempt to recover the damages from the man and/or his insurance company

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

The insurer's charted location or domicile

Which of the following statements regarding surety bonds is true?

The purpose of the surety bonds is to guarantee that specific duties or obligations will be fulfilled.

What is the purpose of the Terrorism Risk Insurance Act?

To share the risk of loss from terrorist attacks with the insurance industry

An agent tells an insured that if he replaces his current insurance policy with a newer one, his dividends will be higher and his premiums will slightly lower. The policy, however would not offer either one of these things. What type of misrepresentation is being committed?

Twisting

Supplementary payments under the personal auto policy included all of the following EXCEPT

Unlimited cost of bail bonds.

The board cause of loss form in the commercial property policy contains three perils in addition to basic form perils. Which of the following is NOT one of those three perils/

Utility services

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

What amount of coverage is provided on HO policies for watercraft?

Up to $1,500

An insured's limit of liability applies to a total of damage for bodily injury and property damage resulting from one accident, which may be used in any combination of amounts, not to exceed the single limit. What type of limit does this insured have?

Combined single

To be valid, an insurance policy must have all of the following Except

Countersignature

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 dwelling policies require insurance equal to at least 80% of replacement value of the dwelling at the time of loss in order to provide replacement cost coverage?

DP-2 and DP-3

To determine the actual cash value of an insured property, what must be deducted from current replacement cost?

Deprecated value

Loss valuation is best described as the process of

Determining the premium charged and the amount of insurance required on a specific property

Which valuation method tasked into consideration what a willing buyer would pay for an insured property?

Market value

The other states's insurance section of a workers compensation policy provides coverage

Ok hey for those other states listed in the policy

Which statement best describes agreement as it relates to insurance contracts

One party accepts the exact terms of the other party's offer.

The purpose of the Fair Credit Act is to

Protect consumers against the circulation of inaccurate or obsolete or financial information

The purpose of Fair Credit Reporting Act is to

Protect consumers against the circulation of inaccurate or obsolete personal or financial information.

Which of the following NOT a classification of a hazard?

Speculative

Which of the following actions does NOT constitute false advertising?

Stating that dividends are not guaranteed

Upon payment for a loss, the insured is obligated to surrender to the insurer the right to sue a negligent third party. This is called

Subrogation

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

Suit alleging infringement of a copyright

An insured was backing his car out of the drive way and hit a fire hydrant. The automobile sustained $1,330 of damage tot he bumper. The insured's auto policy has a $500 deductible. Which of the following is true?

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

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 water damage. It took 4 weeks for 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 loss would be paid indirect loss?

The loss of income for the time the diner was closed

Each of the following may be insured under HO-3 homeowners policy EXCEPT

The owner-occupant of a condominium unit

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

Twisting.