Missed ExamFX questions

In this state , what is the maximum fine for transacting insurance without a license ?

$1,000

Tom's Truck Service's vehicle is stolen . The policyholder may obtain coverage for transportation expenses subject to which of the following limits ?

$20 per day, $600 maximum

A commercial property special form covers property in transit up to

$5,000

What is the minimum amount of coverage that should be carried on an HO - 2 on a home that was purchased four years ago for $ 75,000 , which today has a replacement value of $ 100,000 ?

$80,000

Johanna purchased a National Flood Insurance policy 10 days after her community entered an emergency program . When would her coverage be effective ?

12:01 am the day after the application and premium payment are mailed

How long is a waiting period upon purchase of flood coverage through NFIP ?

30 days

With respect to the personal auto policy , which of the following vehicles could be classified as a nonowned auto ?

A vehicle that is titled to another person , but is being used with permission by an insured

An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch . The neighbor who was sitting on the porch , is injured . The insured's liability policy has a limit of $ 500,000 . This amount applies to the total of damages for any bodily injury and property damage resulting from one accident . Which type of limit of liability does the insured have ?

Combined Single

A builder's risk form is most often written as which of the following ?

Completed Value Form

A bank manager has had several instances of employee dishonesty involving transfer of funds . His risk manager is researching the best coverage for this situation . Which bond rider should he recommend to the bank manager ?

Computer systems rider

An individual's construction company leaves mobile equipment and construction machinery on the job site until the project is completed . What could this individual use to insure it ?

Contractors equipment floater

Which of the following special liability coverages will provide protection to managers of a corporation for claims arising from a wrongful act committed by the manager while in an official capacity ?

Directors and Officers liability

What is another name for liquor liability insurance ?

Dram shop insurance

Which of the following best describes the aleatory nature of an insurance contract ?

Exchange of unequal values

Which of the following statements would be an example of a product liability claim ?

Faulty packaging of a cereal caused spoilage that resulted in someone getting sick

Which federal act provides benefits to injured civilians who are employed by the federal government ?

Federal Employees Compensation Act

The major portion of the premium for an equipment breakdown policy pays

For inspections and examinations

Replacement cost is defined as

Full replacement of property at its current cost , new and without reduction for depreciation

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

Insurance premium paid

The part of the Insurance contract that describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured is called the

Insuring agreement

Which of the following would NOT be considered causes for flood conditions covered by the National Flood Insurance Program ?

Landslides

An agent commingled 500 of insurance premiums collected with new applications with his personal funds . The agent could be found guilty of a...

Misdemeanor

Rental Reimbursement is only available if the policy includes which coverage ?

Other than collision coverage

A building insured with commercial property insurance has been vacant for more than 60 consecutive days . Which of the following is NOT true ?

Payment for unnamed perils is reduced by 25 %

An insured has a liability policy that sets the amount for all claims that arise from a single incident at $ 50,000 . Which type of limit of liability does this insured's policy have?

Per Occurrence

Which of the following limits , shown in the declarations of a policy , applies to medical expenses ?

Per Person

All of the following are additional liability coverages automatically provided in a homeowners policy EXCEPT

Personal Injury

Who would participate in a Write Your Own ( WYO ) flood insurance program ?

Private Insurers that write and service National Flood Insurance policies on a no risk bearing basis

An insured owns several buildings , each at a different location and insured on a separate policy . What type of coverage does the insured have ?

Specific

When the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss , the coverage is said to be written as

Stated Amount

Who is NOT considered an employee in a commercial general liability ( CGL ) policy ?

Temporary worker

An insured's accounts receivable records have been damaged . The loss may be covered with

The accounts receivable coverage form

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

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

The date when injury or damage occurs

All of the following conditions must exist for injury or damage to be included in the products and completed operations hazard of a commercial general liability policy EXCEPT

The injury or damage must occur within 90 days after the insured's work is completed

In terms of parties to a contract , which of the following does NOT describe a competent party ?

The person must have at least completed secondary education .

Which of the following best expresses the purpose of a stated value contract ?

To pre - establish the amount of coverage available for property items that are difficult to value

Supplementary payments on a CGL provide all of the following EXCEPT

Up to $ 500 a day for lost earnings and $2,000 for the cost of ball bonds

An insured's 9 - year - old son threw a ball , accidentally breaking a neighbor's plate glass window . The insured was found legally liable for the cost of replacing the window . This is an example of

Vicarious Liability