Other Coverages and Options

Johanna purchased a National Flood Insurance policy 10 days after her community entered an emergency? 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

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

Residential structures, including condominium units, and their contents are insured by what part of the National Flood Insurance Program?

Dwelling policy form

Which of the following is true regarding the Difference in Conditions (DIC) policies?

Each DIC policy is an individually written contract that contains provisions unique to the particular risk that it covers

Professional liability coverage protects the insured against legal liability resulting from

Errors and omissions

How often is the exportable list published and made available to licensees?

Every 6 months

What type of coverage do umbrella policies provide?

Excess coverage over an underlying or primary policy

A specialized type of insurance that guarantees the faithful performance of a trustee of employee benefit plans is called

Fiduciary liability insurance

A specialized type of insurance that guarantees the faithful performance of a trustees of employee benefit plans is called

Fiduciary liability insurance

Bob's neighbor will not stop parking his motorcycle in Bob's rose garden no matter how many times he has been asked to quit parking there. Bob finally gets a court order requiring the neighbor to refrain from parking there. It turns out it was his neighbor's property all along. What bond was Bob required to post guaranteeing his neighbor's damages in this wrongful action will be paid?

Injunction

Which of the following statements is NOT true regarding a personal umbrella liability policy?

It provides errors and omissions coverage for an agency

An insurance producer fails to obtain automobile insurance for a client after agreeing to do so. The client is involved in an automobile accident after running a red light and is found to be at fault. The damage to the other vehicle totals $5,000. Which statement regarding the producer's errors and omissions liability policy is true?

It will provide coverage because the damage to the client resulted from the producer's negligence

The form of payment bond that protects an owner contracting for work against liens from subcontractors, suppliers, or laborers who are not paid for their services and materials by the general contractor is called

Labor and material bond

Which bonds guarantee that the recipients of permits will comply with the ordinances associated with the use of such permits?

License and permit bonds

An insured purchases a Difference in Conditions policy. It may contain all of the following characteristics EXCEPT

Low deductible

The type of professional liability coverage a medical doctor needs is

Malpractice coverage

Which professional liability form provides coverage for liability arising out of errors or mistakes made in rendering medical services?

Physicians, surgeons and dentists malpractice

Which of the following statements is INCORRECT with regard to surplus lines insurance?

Policies written by a surplus lines insurer typically contain standard coverages and forms

The party to a surety or fidelity bond who promises to fulfill the obligation is the

Principal

Who are the parties to a bond?

Principal, Obligee, Surety

Who would participate in a WYO program?

Private insurers that wish to write and service National Flood Insurance policies on a no risk-bearing basis

All of the following statements regarding a boatowners policy is true EXCEPT

Replacement for the boat listed in the Declarations are automatically covered, if the insured notifies the insurer within 60 days and pays the additional premium

A municipality can protect itself against the construction or repair of properties that do not conform to the building codes established by ordinance by requiring the contractors to obtain

Require to obtain License and permit bonds

In a personal umbrella policy, the amount paid by the insured for certain losses not covered under the primary coverage is called

Self-insured retention

When an employee benefit plan pays the premium for a fiduciary liability policy, what provision must be included in that policy?

Subrogation

To be eligible for coverage under the National Flood Insurance Program, an insured must live in which of the following communities?

That has met the minimum floodplain management guidelines

What is the deductible of a commercial liability umbrella policy called?

The SIR

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

All of the following situations would be covered under a professional liability policy EXCEPT

The failure of an attorney to properly defend a client due to his personal dislike of the client

Who must to sign the affidavit required in surplus lines insurance transactions?

The insured and the surplus lines broker

Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy?

The insured would be responsible for the amount required as underlying limits in the event of a claim

An insured invites his neighbors out for a day on the water in his boat powered with a 150 hp outboard motor. While attempting to tie the boat to dock, his neighbor's hand is broken when caught between the boat and dock. What coverage would apply to the broken hand?

The insured's boatowners policy

Which of the following statements is true concerning a bonded contractor who defaults on a construction performance contract?

The obligee may engage another contractor and then seek reimbursement from the surety

How much coverage can be available for watercraft damage in the homeowners policy?

Up to $1500

When does a business need to purchase a liquor liability policy?

When it is in the business of manufacturing, distributing, serving, or furnishing alcoholic beverages

Section I of a boatowners policy covers

physical damage

Which bonds may be required when a person appeals to a higher court after a judgement already has been entered to guarantee that a judgement will be paid?

Appeal bonds

Which bond is required by a court before allowing one to take the assets of another to satisfy a legal obligation?

Attachment bond

If an insured has an umbrella liability policy in addition to his personal auto policy, which would be considered the underlying policy?

Auto policy

What type of bond guarantees that a construction contractor will enter into a contract at a set price?

Bid bond

Which of the following is NOT a contract bond?

Bid bond

A professional who wants coverage for all liability exposures should purchase what form of liability insurance?

Commercial general and professional

What type of insurance can be obtained through a surplus lines insurer?

Coverage that is unavailable through authorized insurers