Order 3 - Part 3

An insured travels to Europe and has her fur coat stolen. The fur is worth $1,500. She is insured under an HO-4 contents policy. What will be paid by the insurer? A. $1,500 less the deductible B. Nothing because the property is out of the US C. $500 D. Furs are excluded for theft coverage

$1,500 less the deductible

An insured had a $300,000 underlying liability policy and a $1 million umbrella liability policy with a $300,000 retained limit and a $2,000 self-insured retained limit. An occurrence resulted in $400,000 in personal injury damages which are not excluded by either policy. Shortly thereafter the insurer providing the underlying policy became insolvent. How much of the damages would be covered by the umbrella liability policy? A. $100,000 B. $300,000 C. $398,000 D. $400,000

$100,000

The California Insurance Code requires that a third party claimant be advised of the statute of limitations by the insurer within: A. 30 days of expiration of statute B. 60 days of expiration of statute C. 90 days of expiration of statute D. 6 months of receipt of claim

60 days of expiration of statute

A fire in an insured's restaurant burns the kitchen walls and causes smoke damage to the entire interior. Water used to extinguish the fire causes extensive damage to floors and furnishings. The water damage is BEST described as: A. A direct loss. B. A time element loss. C. A consequential loss. D. An indirect loss.

A direct loss

Assume that the auto in each of the following examples is insured for comprehensive coverage. Which of the losses would be excluded under the BAP? A. A fire destroys 10 CD's in the auto. B. A thief removes a cassette player from under the auto's dash. The tape player had been permanently installed. C. A CB radio is damaged in a flood. The radio was permanently mounted in the auto's dash where the factory installs the radio. D. All of the losses are excluded.

A fire destroys 10 CD's in the auto

Which of the following represents an indirect loss? A. A tree fell on a house, causing a hole in the roof, which later allowed rain to enter B. Rain entered a house after a tree fell onto it, later causing mold to develop C. Mold developed in a house, later causing the occupants to become very ill D. A kitchen fire made a house untenable, causing the occupants to incur hotel charges

A kitchen fire made a house untenable, causing the occupants to incur hotel charges

Under the discovery clause in a loss sustained bond, which of the following is covered? A. A loss discovered up to one year after the policy expired but that occurred during the policy period. B. A loss that is discovered after the policy has expired. C. A loss that occurred prior to the inception date of the policy. D. A loss that occurred during the policy period but was not discovered until five years after the expiration date.

A loss discovered up to one year after the policy expired but that occurred during the policy period

A newspaper company is interested in protecting against the additional costs of continuing to print the newspaper at a temporary location in the event its buildings were destroyed. Which of the following coverages should the newspaper company purchase? A. Extra Expense B. Open Perils C. Loss of Rents D. Contingent Gross Earnings

Extra Expense

In which of the following does a claimant relinquish his or her right to sue? A. Scheduled Payment Release B. Advance Payment C. Full Release Settlement D. Structured Settlement

Full Release Settlement

Which of the following results in immediate payment when the claimant signs a release relinquishing his or her right to sue? A. Full Release Settlement B. Scheduled Payment Release C. Advance Payment D. Structured Settlement

Full Release Settlement

To receive workers compensation benefits, an employee's bodily injury by disease must be caused by: A. The conditions of employment B. An industrial injury C. Conditions that also exist directly outside the workplace D. Bodily injury by disease is not covered.

The conditions of employment

An adjuster must report any change in his or her address to the DOI: A. within 48 hours. B. within 15 days. C. within 30 days. D. immediately.

within 30 days

Under the farm forms, "half a head" of livestock is an animal: A. $3,000. B. $2,500. C. $1,000. D. $500.

$1,000

A new home costing $500,000 to build would have to be covered for what minimum limit according to the loss settlement provision of the policy in order for the insured to receive full replacement cost coverage in the event of a $50,000 fire loss? A. $400,000 B. $50,000 C. $250,000 D. $500,000

$400,000

How much coverage is available under the homeowner forms for charges made as a result of a stolen credit card? A. $500 B. $250 C. $750 D. $1,000

$500

The deductible under the "regular" flood insurance program for each coverage (building and contents) is: A. $1,000 B. $5,000. C. $2,000. D. $750.

-

If an insured carries coverage C under a dwelling form, how much coverage applies on a worldwide basis? A. 10% of the Coverage C limit B. 20% of the Coverage C limit C. 40% of the Coverage C limit D. 50% of the Coverage C limit

10% of the Coverage C limit

Brian Hendricks is adequately insured with a homeowner policy containing a requirement to carry at least 80% of replacement cost value. If he suffered a partial loss to his dwelling structure he would be able to collect which of the following percentages of loss? A. 100% B. 75% C. 80% D. 90%

100%.

Rudy, a licensed California adjuster, has received a letter from a claimant requesting information about a claim. Rudy is required to respond within: A. 30 calendar days. B. 15 working days. C. 15 calendar days. D. 10 days.

15 calendar days

How may days' notice are required in the case of cancellation of an auto policy in California which has been in effect for more than 60 days? A. 20 days, except for 10 days in the case of nonpayment of premium. B. 30 days, except for 10 days in the case of nonpayment of premium. C. 45 days, except for 10 days in the case of nonpayment of premium. D. 10 days in any case.

20 days, except for 10 days in the case of nonpayment of premium.

The BOP has limitations on the square footage in regard to eligible risks. What is the maximum square footage a building can contain and still be eligible for the policy? A. 15,000 square feet B. 20,000 square feet C. 35,000 square feet D. 30,000 square feet

35,000 square feet

An insurance company must give how many days notice of cancellation for a vacancy of more than 60 days, when the government has ordered demolition, or when fixed items are being removed and not replaced? A. 5 B. 21 C. 10 D. 30

5

How long after the expiration date may a licensee, who has met all the requirements to renew a license, be allowed to operate under the existing license? A. 14 calendar days B. 6 months C. 30 days D. 60 days

60 days

An incorporated insurance company with its capital divided into shares and owned by its shareholders is known as: A. A stock company. B. A mutual company. C. A fraternal benefit society. D. An association group.

A stock company

Under the specified causes of loss coverage in the garagekeeper's coverage, which of the following losses is excluded as a covered loss? A. A suppliers auto suffers flood damage when torrential rains cause a stream to overflow as he is making a delivery. B. A covered auto is damaged when an explosion occurs. C.Lightning strikes a covered auto and causes a fire. D. Several teenagers use baseball bats to break out windshields of covered autos when dared to do so as part of initiation into a club.

A suppliers auto suffers flood damage when torrential rains cause a stream to overflow as he is making a delivery.

Which of the following relieves the financial burden on the claimant by making certain payments to the claimant even before the claim is negotiated? A. Advance Payment B. Rehabilitation C. Partial Release D. Partial Release With Conditions

Advance Payment.

Which of the following statements is correct under the California insurance code regarding notices of automobile coverage? A. All of the Responses are Correct B. A 10-day notice is required when an insurer cancels an automobile policy for non- payment of premium. C. A 20-day notice is required to cancel for other than non-payment of premium. D. A 20-day notice is required for offer to renew an automobile policy.

All of the Responses are Correct

In a situation where liability is obviously clear and an insurer refuses to settle, which of the following is correct? A. In a bodily injury claim, the insurer could be responsible for the final award amount even if above the policy limits B. In an uninsured motorist claim, the insurer could be responsible for damages above the limit C. In a fire loss, the insurer could be responsible for damages above the policy limit D. All of the responses are correct.

All of the responses are correct

Business Income Protection is designed to: A. Provide continued income to the policyholder after a covered loss. B. Provide the same income the business would have received if there had been no loss. C. Pay what the net profit or loss before income taxes would have been. D. All of the responses are correct.

All of the responses are correct.

The Common Policy Conditions apply to which coverage parts of a Commercial Package Policy? A. All parts of the policy. B. The property insurance coverages. C. The optional insurance coverages. D. The liability insurance coverages.

All parts of the policy

The Commercial Building and Personal Property Coverage Form provides five extensions of coverage, but only if: A. An 80% or higher coinsurance percentage is shown in the declarations. B. They are shown in the declarations and an additional premium is paid. C. The coverage for buildings is written on a replacement basis. D. All coverages are written on a blanket basis.

An 80% or higher coinsurance percentage is shown in the declarations.

All of the following are excluded under the CGL coverage for bodily injury and property damage liability, EXCEPT: A. Bodily Injury or Property Damage caused by the operation of mobile equipment B. An injury to an employee of the insured that is work related C. Damage to property rented to the named insured D. Liability resulting from intentional acts of the insured

Bodily Injury or Property Damage caused by the operation of mobile equipment.

Cyber liability coverage provides all of the following, EXCEPT: A.Data security breach caused unintentionally by an employee. B. Defense costs and damages brought against an insured for the mishandling of personal customer information. C. An employee intentionally downloading a program containing a virus onto the company computer which compromises customer information. D. Data breach caused by an insured or an outside firm hired by the insured to perform services on the company computer systems.

An employee intentionally downloading a program containing a virus onto the company computer which compromises customer information.

Which of the following would be covered by the advertising injury coverage under the farm forms? A. An insured farmer who unknowingly disparaged the crops grown by another farm B. Advertising the wrong price of the goods C. Advertising the wrong description of the goods D. Intentionally making disparaging remarks about another's farm products

An insured farmer who unknowingly disparaged the crops grown by another farm.

Which of the following would not be covered under a workers compensation policy for injury? A. An intoxicated employee injures an innocent bystander because of horseplay. B. A person injured in a work related accident. C. A person who contracts a disease as a result of his/her job. D. A truck driver working for his/her employer.

An intoxicated employee injures an innocent bystander because of horseplay

The physical damage coverage for an auto dealer's vehicles held for sale is covered on the garage policy: A. Blanket basis B. Scheduled basis C. All owned autos D. All owned and non owned autos

Blanket basis

Coverage for a compensable injury under workers compensation: I. Must arise out of employment. II. Must arise in the course of employment. A. Both I and II. B. I only. C. II only. D. Neither I nor II.

Both I and II.

Which of the following is not a basic claims handling activity? A. Investigating to determine if the alleged damages qualify for payment under the contract B. Communicating sympathy to the party suffering a loss C. Evaluating the facts to determine fair payment in accordance with the contract and applicable law D. Negotiating a fair settlement based on facts discovered during the evaluation process

Communicating sympathy to the party suffering a loss

An insured whose legally parked car is damaged by a mudslide may collect for damages under which of the following coverages? A. Comprehensive (other than collision) coverage B. Property damage liability coverage C. Medical payments coverage D. Collision coverage

Comprehensive (other than collision) coverage.

Because an insurance policy is based on rules, regulations, and requirements of the parties, it is considered to be a: A. Personal contract. B. Contract of adhesion. C. Unilateral contract. D. Conditional contract.

Conditional contract

A shopper injured in a slip and fall hires an attorney to represent her. Although her injuries have healed, and the policy limit is $50,000, her attorney believes the case is worth considerably more and is demanding a $50,000 settlement. The insurance company has given you $45,000 settlement authority. As an independent adjuster you should: A. Offer the additional $5,000 and retire the file. B. Offer the additional $5,000 to prevent "uncapping" the policy. C. Contact the company, review the facts, and await their decision. D. Attempt to split the difference and resolve for $47,500.

Contact the company, review the facts, and await their decision.

Traditionally, the most common type of crop insurance sold prior to the creation of the Multi-Peril Crop Insurance Program was: A. Coverage for hail damage. B. Coverage for fire and lightning losses. C. Coverage for losses caused by windstorm. D. "All risk" crop insurance

Coverage for hail damage

Who is covered under the Jones Act? A. Crew members of a ship B. Tourists on a cruise ship C. Repairers of ships D. Loaders of ships

Crew members of a ship

Under a motor truck cargo policy, which of the following would be covered? A. Damage to the shipper's goods during the course of transit B. Damage to another vehicle that is the caused by the insured's products C. Spillage of hazardous materials from the insured's vehicle D. Spoilage of the cargo due to the shippers packing

Damage to the shipper's goods during the course of transit.

Which of the following losses is not excluded under trailer interchange coverage? A. Mechanical breakdown B. Road damage to tires C. Damage to trailers while not connected to a power unit D. Loss of use

Damage to trailers while not connected to a power unit

What do you call evidence, presented in court that can be seen and felt? A. Testimonial evidence B. Direct evidence C. Tangible evidence D. Demonstrative evidence

Demonstrative evidence

In claims adjusting during the interviewing of a party involved in a liability claim, there are three types of questions. These are "direct" questions, "open-ended" questions and "leading" questions. A direct question is seeking brief answers about the facts; an open-ended question is seeking more elaboration of the facts and leading questions are suggesting to the person being interviewed that a particular answer would be what the adjuster would prefer. Which of the following would be considered a direct question? A.Did the Pontiac skid before impact? How far? B. What was the red car doing? C. What did you see? D. The red car stopped at the stoplight. Didn't it?

Did the Pontiac skid before impact? How far?

A weather report would be considered what type of evidence? A. Documentary B. Demonstrative C. Interrogatory D. Material

Documentary

Henry is the first named insured on a $1 million umbrella liability policy. His wife, Dorothy, is also an insured. Both Henry and Dorothy were sued for $1 million in separate, unrelated suits by separate third parties. Both insureds lost their suits on the same day. In this possible but rare situation, if the umbrella policy is applicable and the self-insured retention is not applicable: A. Henry will receive more protection from the policy than Dorothy because he is the first named insured. B. The policy will pay $500,000 toward each award. C. The policy will only honor Henry's claim. D. Henry will not receive more protection than Dorothy and the policy could pay a total of the $2 million amount for the two awards, subject to the "aggregate limit".

Henry will not receive more protection than Dorothy and the policy could pay a total of the $2 million amount for the two awards, subject to the "aggregate limit".

The commercial auto policy form provides for "worldwide liability coverage" for private passenger autos that the insured: A. Hires, leases, rents or borrows without a driver. B. Purchases. C. Sells. D. Occupies.

Hires, leases, rents or borrows without a driver

Which of the following statements is correct? I. Both DP-2 and DP-3 settle losses to covered personal property at actual cash value (ACV). II. Both DP-2 and DP-3 settle partial losses to covered dwellings at replacement value in all situations. A. I only B. II only C. Both I and II D. Neither I nor II

I only

Which of the following is included in the definition of a first party claimant: I. An individual II. A corporation III. A partnership A. I only B. I and II only C. II and III only D. I, II, and III

I, II, and III

What are the automatic perils covered under every dwelling policy form? I. Fire. II. Lightning. III. Internal explosion. IV. Flood. A. I, II, and III only B. I and II only C. I, III, and IV only D. I and III only

I, II, and III only

Which of the following injuries would be paid under the Liability section of the Personal Auto Policy? A. Injuries to the insured B. Injuries to the person the insured hit C. Injuries to a member of the insured's family D. Damage to the personal property transported by the insured.

Injuries to the person the insured hit.

A company's promise to "pay for damage caused by or resulting from any covered cause of loss" would be found in which of the following sections of an insurance policy? A. Insuring Agreement B. Declarations C. Conditions D. Exclusions

Insuring Agreement

The insured is a large super market and maintains a large checking account balance. An employee has a friend that was told in confidence that the "transfer account" contained $200,000. The friend, without the employee's knowledge, pretends that he is the employee with the authority to conduct transactions on behalf of the insured and sends a fraudulent electronic request to the bank to transfer the funds with the intent of stealing them. What coverage would the insured need to cover this claim? A. Insuring Agreement 3 "Inside the Premises Theft of Money and Securities." B. Employee dishonesty C. Insuring Agreement 7 "Funds Transfer Fraud" D. Insuring Agreement 5 "Outside the Premises" Coverage

Insuring Agreement 7 "Funds Transfer Fraud".

In claims adjusting, what are the most difficult types of damages to evaluate? A. Intangible Damages B. Medical Expenses C. Loss of Wages D. Property Damages

Intangible Damages

In workers compensation the term "willful" means which of the following? A. Unsupervised B. Negligent C. With good reason D. Intentional

Intentional

When someone dies without a will they are said to have died: A. In Replevin. B. Testate. C. Without a Principal. D. Intestate.

Intestate

What is not covered by "extra expense" coverage in commercial property insurance? A. Rent Payments at a Temporary Location B. Moving Expenses C. Overtime Pay Required to Make Repairs D: Loss of Income

Loss of Income

What does the phrase "free on board destination" mean? A. Makes the seller responsible to the buyer until the goods have been delivered as agreed. B. An ocean term referring to jettison. C. The title to the goods to be shipped is transferred to the buyer at the shipping point. D. The term is in reference to a cruise ship agreement for passengers.

Makes the seller responsible to the buyer until the goods have been delivered as agreed.

Which of the following is not considered an act of terrorism under the Terrorism Risk Insurance Act, now known as the Terrorism Risk Insurance Extension Act? A.Losses must be at least $5 million to be considered an act or acts of terrorism B.Must be a violent act or an act that is dangerous to human life, property or infrastructure C. Must result in damage within the United States and certain areas outside the Unites States D. Must not have been committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or the policies or affect the conduct of the United States government

Must not have been committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or the policies or affect the conduct of the United States government

In commercial property what is the effect of exercising the "agreed value" option? A. Negates coinsurance B. Pays replacement cost C. The insurer and insured must agree on the value of all insured property after a loss D. The insured reports values at an agreed upon date

Negates coinsurance

If an adjusting firm opens a new location, when may it start doing business? A. After a branch manager is appointed B. After 10 days C. Immediately D. Not until a branch office certificate has been issued

Not until a branch office certificate has been issued

How are crop insurance premiums calculated? A. Number of fields B. Number of crops C. Number of acres D. Per farm

Number of acres

Under a surety bond, the owner of the project is called the: A. Obligee. B. Surety. C. Principal. D. Administrator

Obligee

What is an "Open Policy" according the California Insurance Law? A. One in which the value of the subject matter is not agreed upon until there is a covered loss. B. One which covers the subject matter on an open perils or all-risk basis. C. One in which the expiration date is not set and remains open. D. A liability policy with an open-ended insuring agreement.

One in which the value of the subject matter is not agreed upon until there is a covered loss.

Under an HO-3, materials and supplies to be used in the construction, alteration or repair of the structure and kept next to the residence premises are covered: A. If they have been at the location more than 30 days B. If they have been at the location less than 30 days C. Only if they are lost due to an insured peril D. Only if they are lost due to fire

Only if they are lost due to an insured peril

A contractor in need of a bid bond to obtain a contract is an example of a(n): A. Principal. B. Obligee. C. Surety. D. Fiduciary.

Principal

Controlled business includes insurance procured by agents on: A. Property or risks of close relatives. B. Property owned by friends. C. Property formerly owned by employees. D. Accounts they have had for more than three years.

Property or risks of close relatives

A ship owner wanting coverage in case crew members bring liability suits for injuries sustained while working would purchase: A. Workers Compensation B. Hull Coverage C. Freight Coverage D. Protection and Indemnity

Protection and Indemnity

You and your son, who lives with you, are crossing the street when both of you are struck by a drunk driver. The Medical Payments coverage under your auto policy will: A. Provide coverage for you, but not your son B. Provide coverage for both you and your son C. Will not apply as you were pedestrians when struck D. Will be deferred to the driver of the vehicle that struck you

Provide coverage for both you and your son

The limited coverage for Mexico endorsement to the personal auto policy: A. Provides coverage for accidents that occur in Mexico within 25 miles of the United States border. B. Covers Mexican citizens while visiting the United States on a temporary basis. C. Eliminates the territory restriction in the PAP for travel within Mexico. D. Makes it unnecessry for a United States resident driving in Mexico to purchase Mexican auto insurance.

Provides coverage for accidents that occur in Mexico within 25 miles of the United States border.

An insured who wishes to cover a mobile home while it is being transported from one location to another would: A. Purchase an endorsement on the auto policy transporting the mobile home. B. Purchase the "mobile home transportation coverage" endorsement for the homeowner policy. C. Purchase inland marine coverage since the mobile home is in motion on the land. D. Purchase motor truck cargo coverage from the company transporting the mobile home.

Purchase the "mobile home transportation coverage" endorsement for the homeowner policy

As respects flood insurance the RCBAP (residential condominium building association policy) will settle claims on what basis? A. Functional Replacement Cost B. Replacement Cost C. Actual Cash Value D. Market Value

Replacement Cost

What is the limit on the number of stories an office building risk can have and still be eligible for the Businessowners Policy? A. Five stories B. Six stories C. Four stories D. Seven stories

Six stories

Under a CGL policy, personal and advertising injury liability coverage does NOT apply to damages resulting from: A. Slanderous statements made by an advertising firm. B. Copyright infringement by a department store. C. Harmful, truthful information published by a realtor. D. Invasion of an individual's privacy.

Slanderous statements made by an advertising firm.

Which of the following statements defines the role of a bailee? A. A property owner who willingly entrusts the property to another person. B. Someone, other than the owner, to whom property is entrusted. C. A property owner who is in the business of renting property to others. D. Someone to whom property is sold on an installment basis.

Someone, other than the owner, to whom property is entrusted.

The term " subrogation" refers to: A. Substitution B. Negligence C. Legal liability D. Strict liability

Substitution

Mr. Thompson carries the minimum auto limits in his state. He drives his car to New York which requires bodily injury limits of $25/50 and a wrongful death limit of $50/100 and no fault coverage. If he has an accident in New York what coverage would he have? A. The coverage will automatically be modified to comply with the New York requirements. B. The insurance company will not raise the limits to those required in New York. C. The insured must pay an additional premium to have their limits increased before entering the state. D. Mr. Thompson will have to ask his company for higher limits before the trip.

The coverage will automatically be modified to comply with the New York requirements.

Under the Equipment Breakdown policy loss settlement provisions, what date is used to determine value? A. The date of the loss B. The inception date of the policy C. The original date of the equipment purchase D. The market value of the equipment

The date of the loss

Workers compensation policies also include employer's liability coverage. Which of the following claims would be covered by this coverage? A. The employer fails to maintain the equipment and an employee is injured. B. A worker falls from a ladder and sustains injuries. C. A fellow worker accidentally injuries another employee. D. A worker dies from an occupational disease.

The employer fails to maintain the equipment and an employee is injured.

A non-waiver is issued by which party? A. The claimant B. The insurer C. The court D. The commissioner

The insurer

What would most likely be the effect of an insured's breach of warranty? A. The insurer might void the entire policy. B. The insurer is entitled to a rate increase. C. The insured will convert the policy to an open-valued form. D. The insurer may raise the deductible if a loss occurs.

The insurer might void the entire policy.

The California Insurance Commissioner may deny a license following a hearing for all of the following reasons, EXCEPT: A. The license applicant has been convicted of a speeding violation. B. The applicant does not have a good business reputation. C. The applicant is not properly qualified. D. The granting of the license would be against public interest.

The license applicant has been convicted of a speeding violation.

Which of the following is generally not considered to be a legal defense against claims of negligence? A. The loss to the plaintiff was caused intentionally by the defendant. B. A state law gives specific immunity from liability to the defendant. C. An intervening cause was the proximate cause of the plaintiff's injury rather than the defendant's action (or inaction). D. The relevant statute of limitation for filing a lawsuit has expired.

The loss to the plaintiff was caused intentionally by the defendant.

Each of the following is true about commercial property floaters filed by the Insurance Service Office (ISO), EXCEPT: A. The rates for these coverages are unregulated. B. Individual insurers are not required to use the ISO forms. C. The coverages may be written as a monoline or part of a package policy. D. The coverages are usually written on an open perils basis.

The rates for these coverages are unregulated.

The insurance industry in the United States is regulated primarily by: A. The U.S. Congress B. The President C. The states D. The Supreme Court

The states

Under the BOP, up to how many years can the insurer request to examine the books and records of an insured? A. Three Years B. One Year C. Two Years D. Four Years

Three Years.

The purpose of asking the court to make a declaratory judgment is: A. To make a binding decision as to the relationship between the parties and their rights with respect to the matter before the court. B. To avoid going to court with a lawsuit. C. To make a final decision as to who is liable. D. To make a final decision as to damages.

To make a binding decision as to the relationship between the parties and their rights with respect to the matter before the court.

An adjuster's license expires every: A. Year B. Three years C. Two years D. Four years

Two years

The definition of "occupying" in the personal auto definitions means all of the following, EXCEPT: A. In the vehicle B. Upon the vehicle C. Out or off the vehicle D. Under the vehicle

Under the vehicle

An insurance company can audit the named insured's books and records: A. Only during the policy period. B. Up to one year after the termination of the policy. C. Up to three years after the termination of the policy. D. Up to five years after the termination of the policy.

Up to three years after the termination of the policy

Under the terms of a homeowner policy, a dwelling in which people are not currently living and which contains no furniture or contents is considered: A. Abandoned B. Unoccupied C. Deserted D. Vacant

Vacant

Which of the following is not excluded under Section II-Liability of the BOP? A. Aircraft, auto or watercraft bodily injury B. Professional services bodily injury C. Pollution property damage D. Valet parking bodily injury

Valet parking bodily injury

The "claims-made" form of a CGL policy provides coverage for bodily injury and property damage: A. That occurs during the policy period regardless of when claim is made. B. That occurs during the policy period as long as claim is made during the policy period. C. When damages are first claimed during the policy period regardless of when the occurrence happened, subject to the retroactive date in the policy. D. All of the responses are true

When damages are first claimed during the policy period regardless of when the occurrence happened, subject to the retroactive date in the policy.

The cost of defense is paid without limitation and does not affect the limit of liability for damages. When does the insurer's duty to defend and pay these defense costs end? A. There are no limitations. B. When the cost of defense and the requested demands reach the policy limit. C. After the statute of limitations is exhausted. D. When the limit of liability is exhausted through the payment of settlements or judgments.

When the limit of liability is exhausted through the payment of settlements or judgments.

The Terrorism Risk Insurance Act excludes all acts of terrorism if the act is committed as part of the course of a war declared by Congress with the exception of one line of insurance. Which of the following is the only line of insurance that would still provide coverage in case of a war. A. Commercial property B. Burglary/theft C. Riot and civil commotion D. Workers compensation coverage

Workers compensation coverage

The HO-4 provides ____ coverage on the dwelling and ____ peril coverage on personal property. A. no / broad B. full / open C. limited / basic D. named peril / open

no / broad

"Notice of legal action" can mean all of the following, EXCEPT: A. notice of action against the agent. B. notice of action against the insured received by the insurer. C. notice of action commenced against an insurer with respect to a claim. D. notice of action against the principal under a bond.

notice of action against the agent.