Missed Question For Guarantee Exam

An insured has $5,000 of medical coverage under a personal auto policy at the time of a covered accident. The insured and 3 passengers are injured. The insured's medical expenses are $8,000. The first passenger's total $4,000; the second passenger's total $6,500; and the third passenger's total $1,200. How much will the policy pay under the medical payments coverage?

$15,200

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

1 year

What guarantees that the information explained in the insurance contract is true?

A warranty

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 this insured have?

Aggregate

When do binders expire?

As soon as the policy is issued

Which of the following elements of an insurance contract requires payment of premium?

Consideration

A sworn statement must usually be furnished by the insured to an insurer, and must include what information about the occurrence and the amount of indemnity claimed?

Date and description

Which of the following statements does NOT describe endorsements?

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

An insured just purchased an auto policy for his new car . He wants to understand what perils are not insured against. Which section of his policy should the insured check?

Exclusions

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

Insurance to value

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

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

Legal purpose

Fair rental value coverage in the dwelling policy is similar to which homeowners policy form?

Loss of use

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

Maliciously criticize another insurer company

Which of the following is the other major coverage provided by the businessowner liability coverage form?

Medical payment

Which of the following exposures is NOT covered under a homeowners policy?

Medical payments to an insured

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

Protective safeguards endorsement

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 rock 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 neighbor's home several blocks away. Who pays for this damage?

The contractor

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

When is the company responsible for actions of its agents?

Whenever the agent is acting within the conditions of the contract

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

Depreciated value

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

Employee theft

An agent's license has been suspended, but he continues to transact insurance for his existing clients. This will be considered a(n)?

Misdemeanor

Which of the following is a method of establishing a premium on large commercial accounts?

Retrospective rating

Although a bsuinessowners policy (BOP) will cover fire damage legal liability, which of the following statements is true?

The general aggregate does not apply to fire damage legal liability

Under an HO-2 policy, the insurer will pay no more than the actual cash value of the property damage until?

The property repair or replacement is complete

What is the maximum number of days that binders for temporary insurance may be valid in this state?

90 days

Which of the following would be eligible for Homeowners Coverage F - Medical Payments in the event of injury at the insured's premises?

A full-time maid

Which of the following is most likely INELIGIBLE for coverage under the businessowners policy?

An auto mechanic shop

A general liability policy will respond to claims against an insured when bodily injury or property damage is caused by?

An insured's negligence

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

Misrepresentation

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

Notice of claim

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

Occupation

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

Outdoor sign

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

Policy exclusions

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

Professional liability

If the premiums collected by an insurer participating in the WYO flood program are insufficient to cover losses, which of the following would be true?

The insurer will be reimbursed for the excess costs by the NFIP

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

Insureds covered under a Mobile Homeowners Policy move their mobile home to prevent it from being damaged by a fire. What is the maximum amount the policy will pay for this?

$500

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

15 days notice

The Georgia Insurers Insolvency Pool is divided into how many separate accounts?

3

An injured worker covered by workers compensation laws in Georgia may receive medical treatment for a maximum of?

400 weeks

If a mortgagee is named in a mortgagee clause, how would a property policy pay claims on a home damaged in a fire?

The mortgagee would receive loss reimbursement

Which of the following would be considered a covered auto on your personal auto policy?

Your farm wagon being towed by your pick up truck

How is the premium paid for the businessowners policy?

One indivisible premium

Which statement best describes agreement as it relates to insurance contracts?

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

All of the following are considered insured under the hired and nonowned auto liability endorsement added to a businessowners policy EXCEPT?

The owner of a nonowned vehicle

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

There is no additional premium

What is the purpose of the ordinance or law coverage endorsement?

To remove the exclusion of losses resulting from ordinances or laws

Medical benefits under workers compensation statutes are provided?

Without limit