Iowa Commercial Lines

grant lost a hand in a work-related accident. what is he entitled to receive, if anything, while he is taking rehabilitation classes in addition to disability and medical benefits?

$100 a week for up to 13 week s

if a producer knowingly violates an insurance law, the producer may be fined up to what mount per violation?

$5,000

applications for a producer license must be accompanied by licensing fee of

$50

Using the pro rata method, if a property is covered by Company A for $20,000 and Company B covers the same property for $40,000, how much will Company A pay on a $24,000 loss?

$8,000

a temporary producer license is valid for up to

180 days

how soon from the effective date of cancellation of a commercial property policy must an insurer provide notice to an insured?

20 days

Insurance licenses in Iowa are issued for

3 years

if a producer changes his address, the commissioner must be notified within

30 days

which of the following is correct regarding continuing education requirement for producers in this state?

36 hours including 3 hours of ethics every 3 years

for how long must producer maintain record of completing continuing education

4 years

the commissioner serves for a term of

4 years

according to business property coverage form vacancy condition, if a policy is issued to the owner of a building, the building will be considered vacant if what portion of the square footage is unused?

65%

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?

90% of the limit written

which of the following statements about policy cancellation or nonrenewal of a commercial property policy is TRUE?

Any action by the insured that increases the risk of the insured peril is grounds for cancellation

an insured was injured at work on June 1. what is the latest date that his employer must be notified of the accident if the insured is to retain his worker compensation benefit's?

September 1

for there to be negligent expectation that the act may cause injury or damage

a reasonable expectation that the act may cause injury or damage

which of the following could be insured with replacement cost coverage under the flood insurance program?

a single-family home

an insured has a maximum limit of coverage available under her liability policy during a policy year, regardless of the number of claims made or the number of accidents. Her limits are restored at the policy anniversary. What type of limit does the insured have?

aggregate

an insurer who transacts insurance in this state but whose articles of incorporation are registered in Canada is considered what type of insurer?

alien

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

an insureds negligence

in order to get a nonresident license in this state a producer must

apply and pay a fee to nonresident state that reciprocates

When do binders expire?

as soon as the policy is issued

which of the following is NOT an example of the company's location of incorporation?

authorized

the definition of "theft" encompasses which of the following?

both burglary and robbery

Two men 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

insurers CANNOT transact insurance in this state without a

certificate of authority

which of the following would be an example of an insurer participating in the unfair trades practice of discrimination?

charging the insured higher premium based on her race

how is a professional liability policy written

claims-made

A lender who conditions approval of a loan on the condition that the borrower purchase insurance from that lender may be guilty of

coercion

Insurance producers can only receive commissions for insurance written with

companies that have appointed them to act as insurance producers

An insured believes that his insurer is not properly fulfilling its obligations regarding his policy. What section of the policy will give the insured more information about specific duties of the insurer?

conditions

an insureds home catches fire. As a result the insureds family must stay in a motel until the home is repaired. The cost of the more stay would be considered

consequential loss

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 assesses against the insured in a suit

all of the following are optional endorsements that may be added to the standard equipment breakdown coverage form EXCEPT

debris removal

during policy solicitation, an insurer exaggerates the financial condition of one of its competitors, and makes it sounds worse than it is. This is an example of an unfair trade practice of

defamation

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

employee theft

which of the following statements does NPT describe endorsements?

endorsements may only add coverage to a current policy, not remove

how often is the commissioner of insurance required to examine domestic insurers?

every 5 years

which of the following is an example of an unfair claims settlement practice?

failure to promptly settle a claim when liability has been clearly established

burglary is the forced entry into the premises of another person with

felonious intent

to have insurable interest in the person or property covered by a property insurance policy, which of the following potential risks must the policy owner face?

financial loss

which of the following would be considered a peril?

fire

Harold died in an accident at work leaving behind a wife and an autistic child. for how long will the child survivor benefits continue under the states workers compensation law?

for the remainder of the Childs life

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

foreign

the commissioner is appointed to a 4 year term by the

governor

restoring an insured financially after a claim is known as

indemnity

all of the following are factors in the determination of actual cash value EXCEPT

insurance premium paid

which of the following is NOT found in the common policy declarations of a commercial package policy?

insuring agreement

a structure may be eligible for coverage under the national flood insurance program if it meets all of the following requirement 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 statements is Not true of a commercial umbrella liability policy?

it would automatically cover all losses as they occur

an agreement that is enforceable by law is known as what kind of contract?

legal

agents may be found guilty of defamation if they make false statements that are intended to

maliciously criticize insurance company

which of the following workers compensation benefits are unlimited?

medical expense

lost treasures has a guard dog in a fenced lot to protect the salvage yard. The dog scared a passerby, who now claims that it was a traumatic experience and that he now suffers from recurring nightmares, A claim for personal injury of $5,000 is filed against lost treasures. Why will tHe personal and advertising injury liability section(coverage B) of the CGL policy cover this claim?

mental anguish is a covered injury

an example of an alien insurer doing business in this state is formed under the laws of

mexico

an insurance agent visits a potential client and explains various types of policies. the customer displays a lack of interest, so the agent guarantees higher dividends that he knows would be possible. which term describes what the agent has done?

misrepresentation

an applicant for property insurance owns a building in which combustible materials are carelessly stored in the furnace room. From an underwriting standpoint, this risk would likely be considered a

morale hazard

M hired L to mow the grass on his lawn twice a month for 9nmonths of the year. M paid L $50 each time the grass is mowed. Is M required to provide workers compensation insurance?

no, this type of employment is specifically exempt

which of the following terms means termination of an insurance policy at it expiration date by not offering a policy continuation or replacement?

nonrenewal

which of the following documents notifies the insurer of events that may lead to a possible claim?

notice of claim

prior to paying a claimant under a professional liability policy, the insurer must

obtain consent of the insured

among people in the same class and life expectancy, which of the following factors can be used to influence premium rates?

occupation

what term includes losses caused by continuous or repeated exposure to conditions resulting in injury to persons or damage to property that is neither intended nor expected?

occurrence

which of the following best defines the unfair trade practice of rebating?

offering an inducement of something of value not specified in the policy

before submitting your application for a resident license, you must first

pass a written examination

workers compensation rating is developed by applying a rating bureau job classification rate to which of the following?

payroll

what sublimit in a liability policy sets to maximum amount that will be paid for all claims arising from a single accident?

per occurrence

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

personal

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

policy

the declarations section in a homeowners policy provides all of the following information EXCEPT

policy exclusions

the insurance company requires that an insured installs a fire alarm and an automatic sprinkler system as condition for coverage. This is an example of what?

protective safeguards endorsement

which of the following is NOT a cause of loss form for commercial property coverage?

specific

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

in a liability policy with split limits of 25/50/25, which number is the maximum amount that would be payable in the event of damage to a person's property?

the amount of the third number, $25,000

a small appliance manufacturer in this state provides products around the globe. A customer in Switzerland is injured using one of its products. If the appliance manufacturer is found liable for the damages, why would its commercial general liability policy cover the customers claim for bodily injury?

the appliance was manufactured in the United States

due to appreciation, the amount of insurance on a business is less than 80% of its actual value on the date of the loss. Which of the following is true?

the coinsurance penalty applies

an insured was having a new home built. While digging the footings for the foundation, the contractor struck a solid formation and found that was necessary to blast the formation in order to remove the rocks. The force of the blast broke several windows and some chinaware in a neighbors home several blocks away. who pays for this damage?

the contractor

what information is found in the conditions part of an insurance policy?

the description of the duties and a obligation of the insured

Who must an insurer notify when they receive a fraudulent claim?

the insurance fraud bureau

which would not be covered by an insured's uninsured motorist coverage?

the insured causes a head on collision with the car of an uninsured motorist

an insured was backing his car out of the driveway and hit a fire hydrant. The automobile sustained $1,300 of damage to the 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 is at fault in an auto accident, damaging the insured's own car, The damage to the car is covered by

the insureds collision coverage

which of the following best depicts the law of large numbers?

the larger the pool of risks under study, the more accurate the predictions will be

if an applicant submits the initial premium with an application, which action constitutes acceptance?

the underwriters approve the application

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

there is no additional premium

When Symbol 7 is provided, which of the following statements is true with regards to newly acquired autos?

they are covered if they are used to replace previously owned autos with that coverage

two individuals of the same age, health status and life expectancy apply for individual insurance coverage> when policies are issued by the same insurer, the premium rates are different based n the insured race, what practice odes this describe?

unfair discrimination

which of the following terms best describes the home of an insured who goes on vacation for 3 months?

unoccupied

a structure that is not inhabited by anyone and stores no property is considered

vacant

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

when a community applies for the program

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

when loss payments equal the applicable limit of insurance

the commissioner may examine an insurers records

whenever necessary order to enforce insurance laws and regulations