Insurance

Policy A provides liability coverage to Fred's Grocery up to $500,000. Policy B provides coverage for the same risks up to $1.5 million. Both policies pay on a pro rata basis. If Fred's Grocery is determined to have a legal liability of $400,000 to a claimant who was injured on the property, how much will Policy A pay?

$100,000

J has a personal auto policy with Liability limits of 50/100/25, UM/UIM limits of 50/100, a Medical Payment limit of $5,000 and Comprehensive and Collision deductibles of $500. J's vehicle slides on ice and hits a guardrail causing $9,500 in damage to the vehicle and $11,000 damage to the guardrail. J also sustains $1,000 in injuries. How much will the policy pay for all damages?

$21,000

In New York, what are the minimum required limits of auto liability insurance for bodily injury?

$25,000 per person/$50,000 per accident

The Commercial Property policy applies a limit of what dollar amount for business personal property temporarily away from the premises?

10,000

It is considered an unfair claim settlement practice if an insurer fails to respond to a claim submission within:

15 business days of the date of receipt

For how many hours after the first tremor would earth movement damage be covered under the Businessowners Earthquake endorsement?

168 hours

After a storm, ABC Bakery suffers the following losses: $500 in damage to a free-standing sign, $500 in damage to a fence, and $1,500 in damage to a decorative Japanese maple tree. How much will ABC Bakery's BOP pay for these losses if the policy includes an Outdoor Property extension?

2,000

Under a Building and Personal Property Coverage Form, up to what percent of a partial loss would be available for debris removal?

25%

A change of address must be submitted to the Superintendent, by acceptable means, within how many days of the change?

30

Which Commercial auto symbol is unique to the Garage Coverage Form?

30

Within how many days must a licensee report any administrative action taken against them, in another jurisdiction, to the Superintendent?

30

Under the terms of a commercial crime policy, an individual is considered to be an employee until:

30 days after he or she is terminated

Transportation Expenses Coverage under Part D of the Personal Auto Policy begins how long after the covered auto has been stolen?

48 hours

What is the maximum penalty that can be imposed under the Insurance Frauds Prevention Act for a single violation?

5,000

The amount of insurance provided to cover personal property of a Homeowners Policy is what percentage of Coverage A?

50

Choose the false statement about the CGL policy.

A Products and Completed Operations Liability claim will reduce the General Aggregate Limit

Coverage C of the Homeowners policy would cover which of the following?

A camera stolen while the insured is on vacation

Which of the following statements is false with respect to a consultant?

A consultant may be licensed to sell insurance, but only for the lines for which they are licensed as a consultant

Section II of a Homeowners Policy covers which of the following for medical payments?

A guest of the insured on the residence premises

A crime insurance policy written with a discovery form will cover which of the following losses?

A loss that occurred and was discovered during the policy period

Which of the following defines "basic economic loss" under the Comprehensive Motor Vehicle Insurance Reparations Act, otherwise known as PIP coverage?

A medical and loss of earnings benefit up to $50,000

Which of the following statements regarding crime coverages is correct?

A robbery policy would cover theft in the presence of an employee

Which of the following is correct regarding a temporary license?

A temporary license may be issued to the surviving spouse of a disabled or deceased producer

Liability insurance is a two-party contract with payments made to which of the following?

A third party

Which of the following would be considered an attractive nuisance?

A trampoline

Which of the following is not eligible for coverage under the Personal Auto Policy?

A vehicle with fewer than four wheels

All of the following are covered under the Building and Personal Property Coverage Form, except:

Accounts, bills, currency, deeds, evidence of debt, money or securities

When are payment made from the Second Injury Fund?

After an employer has provided benefits for 260 weeks

Which term describes the maximum amount payable for loss from all occurrences within a policy period?

Aggregate limit

Which of the following is a duty required of the insured in the event of a loss under the PAP?

Allow an inspection and appraisal of the damage before an auto is repaired

Which of the following correctly describes the difference between a broker and an agent?

An agent represents an insurer, whereas a broker acts on behalf of an insured

Which of the following workers would be covered by The Federal Employees Compensation Act?

An employee of the Federal government

The following are excluded from compensation liability, except:

An employee's required participation in an off-duty athletic activity that is not part of his/her work-related duties

A Personal Auto Policy is designed to cover:

An individual's or family's personal use of an auto

Coverage C of a Homeowners Policy includes:

An owned camera used by the insured while on vacation in another country

When the insured and the insurer fail to agree on the amount to be paid for a property loss, the dispute resolution method is called a(n):

Appraisal

Under the Equipment Breakdown Protection Coverage Form EB 00 20 Endorsement, coverage for Newly Acquired Premises begins:

At the time the insured acquires the property

Which of the following requirements must be included in all claims-made commercial general liability policies issued in New York?

Automatic 60-day extended reporting period

Coverage E of a Homeowners Policy would cover which of the following?

Bodily Injury to a guest caused by the insured's pet dog

Which of the following terms best describes the crime of taking of property from inside the premises or a locked safe or vault by a person who commits forcible entry?

Burglary

For which of the following does the Earthquake and Volcanic Eruption CO 10 40 Endorsement modify insurance?

Commercial Property Coverage Part and Standard Property Policy

What type of insurance is provided by the Terrorism Insurance Program established by TRIA?

Commercial property and casualty

A business individual that carries people and property belonging to the general public for a fee from one place to another is called which of the following?

Common carrier

When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as a(n):

Conditional contract

What type of insurance indemnifies the legal liability of an insured for the actions of the insured's subcontractors?

Contingent Liability Insurance

Which of the following is not automatically included in a Garage Coverage Form?

Contractual Liability

The equal sharing of a loss by two or more insurers until the loss is paid, or until each insurer has exhausted its limits of insurance, whichever comes first, is the description of which of the following?

Contribution by equal shares

Detached structures on the insured premises are included in which coverage under a Dwelling Policy?

Coverage B

Which of the following statements about Coverage C under the Homeowners Policy is false?

Coverage C provides coverage for the property of roomers and boarders

Under the Homeowners policy, which coverage provides indirect loss coverage?

Coverage D

All of the following statements are correct regarding Coverage E, except:

Coverage E is available under all Dwelling policy forms

Which of the following statements about Section II of the Homeowners Policy is false?

Coverage F limits are subject to a deductible

Which of the following statements is true with respect to the Commercial Umbrella Liability CU 00 01 Endorsement?

Coverage applies only during the coverage period and only if the occurrence takes place within the coverage territory

Which of the following statements about the National Flood Insurance Program is false?

Coverage becomes effective after a 24-hour waiting period

Which of the following is true regarding Business Income Coverage under a BOP?

Coverage is provided for up to 12 months after the direct loss, with no limit on the amount of monthly indemnification, and no limit of insurance

Which of the following is true regarding the Musical Instrument Floater?

Covered instruments may not be played for remuneration during the policy term

Which of the following claims would be covered under the DP-3?

Damage by vandalism to a dwelling vacant for 30 days before the loss

Under a Dwelling Policy, which is correct regarding coverage of trees, shrubs, or plants?

Damage by wind, hail, weight of ice, snow, or sleet is not covered

For an antique insured under a Personal Articles Floater, coverage would not be provided for damage caused by:

Damage caused by the insured during a heated argument

Which of the following is not covered under Section II of the Garage Coverage Form?

Damage to the customer's car in the insured's care

Producer B tells their clients, falsely, that a rival insurer does not pay claims in a timely fashion. This is an example of what unfair trade practice?

Defamation

Water damage caused by which of the following is a covered loss under the Dwelling policy?

Discharge caused by a plumbing failure

Which of the equipment is covered under the Equipment Breakdown Protection Coverage Form?

Electrical and mechanical equipment used in the utilization of energy

Which of the following property is not covered under the Building and Personal Property Coverage Form?

Electronic data

Which of the following statements is false regarding Workers' Compensation law?

Employers are liable for injuries occurring outside the course of employment

Which of the following is attached to a property and casualty insurance policy to amend policy provisions or conditions?

Endorsement

Which coverage is not an Additional Coverage under the Businessowners Coverage Form?

Equipment breakdown

Which of the following is not true of the Fair Credit Reporting Act?

Errors in the report can only be changed by court action

Estoppel is defined as which of the following?

Estoppel prevents a party from denying a fact, if the fact was admitted to be true by a previous action

How often do individual producer licenses expire?

Every 2 years on the licensee's birthday

The act of selling does not include:

Exchanging an insurance policy by any means, for money, on behalf of a licensed preferred provider organization

The _________ endorsement covers the loss of money, securities, or property that results from a threat made to the insured, so long as the threat is reported to law enforcement.

Extortion

Which of the following is not considered a type of advertising injury?

Extortion

In the state of New York, the Superintendent may suspend, revoke or nonrenew any insurance agent's, broker consultant's or consultant's license if which of the following is determined?

Failed to comply with an administrative or court order imposing a child support obligation

Which of the following perils is not covered by Crop/Hail insurance?

Failure to harvest

Where in the Dwelling policy is it stated that earth movement, landslide, mine subsidence, and mudflow are not covered unless resulting from direct loss by fire or explosion?

General Exclusions

Losses that cannot be calculated objectively, such as pain and suffering or mental anguish, are considered:

General damages

Specified Causes of Loss under Physical Damage Coverage of the Business Auto Coverage Form includes all of the following, except:

Glass breakage

Which of the following would be considered an insured's product?

Goods sold by the insured at a trade show

Nonpublic personal information obtained in connection with a life settlement contract is subject to which applicable law relating to confidentiality of non-public personal information, including?

Gramm-Leach Bliley Act

Which of the following is false regarding the Commercial Property Conditions CP 00 90 Endorsement?

If two or more of the policy's coverages apply to the same loss or damage, the insurer may pay more than the actual amount of the loss or damage

Which of the following is true concerning monopolistic states regarding Workers' Compensation insurance?

In Monopolistic states, Workers' Compensation is only available through a state fund

Which of the following coverages is not provided by the Personal Liability endorsement?

Injury caused to a regular resident of the dwelling

Goods being transported would be covered by which of the following types of insurance?

Inland Marine

Which of the following statements is false regarding the Businessowners Policy?

Insurance losses are settled on an actual cash value basis

Which section lists the perils insured against by a property insurance policy?

Insuring Agreement

Each participant of a Lloyd's association:

Is individually liable for each risk they assume

Which of the following describes the Lay Up Warranty under the Yacht Policy?

It applies when the insured yacht is in storage and allows a return of premium due to the lower risk

All of the following are true of the Business Auto Coverage Form, except:

It covers injuries to employees

All of the following regarding the Garage Coverage Form are correct, except:

It provides coverage for product recall

Choose the true statement regarding the Value Reporting Form.

Late reporting or under-reporting will result in a penalty in the event of a loss

The Businessowners Liability Coverage Form includes coverage for bodily injury, property damage, personal injury and advertising injury to which coverage applies, plus:

Liability assumed under an insured contract

All of the following are true about liability, except:

Liability policies pay costs incurred by an insured to sue negligent third parties

Personal injury liability includes which of the following?

Libel and slander

Which of the following describes the person that has care and custody of insured property outside the insured premises?

Messenger

Which country is not included in the CGL coverage territory?

Mexico

A false statement in the application for insurance is called a:

Misrepresentation

Which statement is false under a Homeowners Policy?

Money is covered up to $500 per occurrence

Which provision specifies that no coverage applies if the loss benefits a person who has care, custody, or control of the insured's property?

No Benefit to Bailee

The termination of an insurance policy at the expiration of its term is known as:

Nonrenewal

The HO-3 dwelling and other structures coverages are insured on which basis?

Open perils

An HO-3 policy provides coverage on which basis?

Open perils coverage on the dwelling and broad form coverage on the personal property

Which of the following workers would be eligible for Workers' Compensation?

Part time worker

Employees exempted from Workers' Compensation laws include all of the following, except:

Part-time employees

All of the following are false concerning the National Flood Insurance Program, except:

Payment for losses are made by the federal government

A primary liability policy is one that:

Pays first with respect to other policies

The Extra Expense form pays the necessary expenses incurred by the insured during which of the following?

Period of Restoration

What coverage is not included under the Yacht policy?

Personal Injury Coverage

Which of the following is NOT a residence premises in the Homeowners Policy?

Premises rented occasionally to the named insured for nonbusiness purposes

Information identifying the producer's role in sale and whether the producer will receive compensation from that sale prior to application is referred to as:

Producer Compensation Transparency

Which of the following is not an unfair claims practice?

Promptly acknowledging communications pertinent to a claim

Crop/Hail Insurance is a specialized policy that:

Protects against reduced yield because of a covered loss before crops are harvested

Which of the following statements is false with respect to contribution rates for group self-insurers?

Rates cannot be nondiscriminatory

Under the Workers' Compensation policy, physical therapy benefits are a type of:

Rehabilitation benefit

Under Section II of the Homeowners Policy, a one or two family dwelling where the insured resides in one of the units, including other structures and grounds at that location, is defined as:

Residence premises

The risk management technique of an insured who continues to have responsibility for a loss is known as:

Retention

What is the correct risk management term for minimizing the chance of a loss?

Risk reduction

Choose the item that is not covered under the BOP.

Satellite dish located on the premises

Choose the false statement regarding commercial auto coverage.

Section II of the Garage Coverage Form - does not provide completed operations coverage

Under which section of the Workers' Compensation and Employers Liability policy would the insured's duties be found?

Section IV

Which of the following is automatically covered under the Businessowners Policy?

Signs attached to the building

K owns several buildings at different locations with each one insured on a separate policy. Which of the following methods of writing insurance does this describe?

Specific Limit

Which of the following statements is false regarding the New York Automobile Insurance Plan?

The Automobile Insurance Plan provides automobile liability insurance when an insurer becomes insolvent

All of the following are true in regard to commercial property coverage, except:

The Basic Form insures against water damage

Which of the following statements is correct concerning the New York State Insurance Fund?

The State Insurance Fund was expanded to include a separate fund called the Disability Benefits Fund

The Superintendent of Financial Services is the head of the insurance department. Which of the following is also correct?

The Superintendent is appointed by the governor and holds office until the end of the governor's term

Who among the following is required to display their license?

The broker or agent who is the supervising person responsible for that place of business

Which of the following are found in the Workers' Compensation Policy Conditions section?

The cancellation policy

Who is the obligee on a Fidelity Bond?

The employer

Which of the following is not a characteristic of the employer-employee relationship as it related to Workers' Compensation coverage?

The employer signs a contract with the employee

A Businessowners policy would cover which of the following?

The insured is sued for injury to a competitor caused by one of their advertisements

Which of the following statements regarding uninsured and underinsured motorist coverage is correct?

The maximum amount of supplementary uninsured/underinsured motorist coverage is $250,000/$500,000

Which of the following is not covered by commercial crime insurance?

The mysterious disappearance of property

All of the following statements regarding property insurance are correct, except:

The owner of clothing left in the care of a dry cleaner is called a bailee

What type of policy might cover an insurance producer's failure to renew a policy?

The producer's errors and omissions policy

Which statement is false regarding the Building and Personal Property Coverage Form?

The standard deductible is $100

Which of the following is false concerning provisions in health insurance policies?

The time limit on certain defenses is 3 years

Which of the following is true regarding commercial crime?

Theft includes any act of stealing, including burglary and robbery

Which of the following special limits of liability is provided under Coverage C?

Theft of furs are covered up to $1,500

Choose the claim that is not covered under the Dwelling Broad Form (DP-2).

Theft of personal property at the insured premises

All of the following are true of liability policies, except:

They will cover damage to the insured's own property

On the Personal Auto Policy, the Collision coverage provides payment for losses:

To your car, and regardless of liability

During a tornado, a factory is destroyed when the roof blows off, causing electrical wires to short and start a fire, burning down the building. The proximate cause of the loss is:

Tornado

All of the following are true of a Homeowners Policy, Coverage F, except:

Under Coverage F, payments apply to necessary medical expenses incurred within a maximum of 1 year

Which of the following is a physical hazard?

Uneven pavement in a sidewalk

Which of the following best describes the situation when a property has neither contents nor occupants?

Vacancy

Insured locations under a Homeowners Policy might include all of the following, except:

Vacant farm land

Policyholder G wants her PAP to insure her sedan, primarily used for sales calls, her husband's SUV for car-pooling, the station wagon that their daughter uses to drive to school, and the van their son uses part-time to deliver dry-cleaning. Which of the following cars will G's agent tell her is not eligible?

Van

Which of the following is least likely to be a factor when determining the eligibility of a person for property insurance?

Whether the premium will be paid in full or billed to the insured

K gets a horrible rash after using wrinkle-prevention cream for 2 months. This is considered:

an occurence