P&C insurance

The death of an employee from comprehensive injury, the insurance carrier will pay

$10,000 for burial expenses

limit of coverage for forgery under a business owners policy?

$2,500

HO-4

(contents broad form): covers a tenant's personal property on a named perils basis

Coverage B

10% of coverage A

within how many years of a loss may an insured bring a lawsuit against an insurer, according to the dwelling policy?

2 years

a risk manager's license does not require

2 years of insurance experience

How many CE hours are agents required to complete?

24 hours

What is the minimum percentage of a licensees total volume of premiums that must come from business other that controlled business

25%

Medical payments under a PAP applies to expenses within what maximum time period ?

3 years

Minimum Auto Liability Limits

30/60/25

An insurer may cancel a personal auto policy if the policy has been in effect for at least how many days?

60 days

How soon after proof of loss must insurer make payment?

60 days

Insurers must file all rates and forms for Commissioner's approval within how many days prior to use?

60 days

Insured owns a building at $1,000,000. To comply with the 80% coinsurance how much should he insure his property for?

80% of the replacement cost or more

An example of an uninsured vehicle

A vehicle fleeing in a hit-and-run

Fair Credit Reporting Act

Act that protects privacy of background information and regulates consumer reports

Stated Amount

An amount of insurance scheduled in a property policy which is not subject to any coinsurance requirements in the event of a covered loss.

In insurance an offer is usually made when

An applicant submits an application to the insurer

Surplus Lines Insurance

An insurance co that is authorized to sell unauthorized insurance. You can only go to a surplus lines co if you cant get it from a regular insurance company

An insurance contract does not need

Beneficiary's consent

Ho 2

Broad / named

What is not found in a commercial package policy (CPP)

Certificate of Authority

HO-5

Comprehensive Form / open

Licensed agent receives criminal conviction must report it to

Department of insurance

a beauty parlor burns to the ground what type of loss is this?

Direct

A fire erupts in the kitchen and spreads upstairs bedroom, resulting in damage to furniture, what type of loss is this?

Direct loss

What is covered by under a dwelling policy?

Fire caused by earthquake

Elaborate homes and those with detailed designs or decorative architecture with replacement costs greater than ACV or market value are insured on

HO-8

The policy conditions define

How parties to the contract must act following a loss.

HO-8

Modified / named (ACV)

A participating insurance policy may

Pay dividends to the policy owner

Created to pay benefits due to insurance company being insolvent

Property and Casualty Guaranty Association

What is not in a policy structure

Provisions

What method of loss valuation is contrary to the basic concept of indemnity?

Replacement cost

Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages?

Special

HO 3

Special/ open

Insured who has filed two or more claims under a HO policy

Surcharged premium amount

What is not true about coinsurance

The coinsurance formula will also be applied to total losses

Replacement Cost

The cost to repair or replace property using new materials of like kind and quality with no deduction for depreciation.

the claims-made trigger is based on

The date the claim is first made

An insured was backing his car out of the driveway, hit his car, and sustained $1,300 of damage. The insured's auto policy has a $500 deductible. What does this mean

The insured is responsible for the first $500 of any claim he makes on his policy

The most the insurer will pay for a loss under a businessowners policy is

The limit of insurance after the deductible is paid

The cancellation in a BOP doesn't include

The method of transferring the owner's rights

The purpose of a stated value contract

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

Common carriers

Transports property of anyone that hires them

insurer waits exceedingly long to process claims

Unfair claims settlement practice

When are rebates allowed?

When in best interest of client

What term best describes an insurance professional that advises a client regarding benefits of her life insurance policy in exchange for a fee?

a counselor

Who would be eligible for HO coverage - F medical payments in event of an injury at the insured's premises? a. full time maid b. name- insured's wife c. a guest hurt at a party 5 years ago d. a person regularly residing at insured's location

a full time maid

in a participation plan the insured may be eligible for

a partial premium refund

What would not be insured under a PAP

a two-ton truck with a 6,500 pound capacity

In a PAP a covered auto does NOT include

a van used in the delivery business

An uninsured motor vehicle includes all of the following EXCEPT

a vehicle owned and operated by a self-insurer

What is another term for an authorized insurer

admitted

A small appliance manufacturer has injured customer in Switzerland from use of their product. Why would CGL policy cover the customer's claim for bodily injury if found liable?

appliance was manufactured in the US

The insured's mother-in-law broke her leg falling down the front steps of the insured's premises. The insured's homeowners medical payments coverage will

apply to injuries of any guests or visitors

An umbrella policy may NOT act as excess over what insurance coverage policy ?

auto-collision coverage

what is NOT included in the basic form of a dwelling policy

breakage of glass

a producer who fails to separate premium monies from their personal funds is guilty of?

commingling

What two policy components are part of every commercial package policy?

common policy declarations and common policy conditions

What type of coverage will pay for loss or damage to a covered auto by any cause other than collision or over-turn?

comprehensive

In insurance contracts do not need

conditions

HO-6

condominium / named

Not an essential element of an insurance contract

counteroffer

In dwelling policies, automatic increase is

coverage by endorsement

What property coverage would provide protection to contents damaged by fire?

coverage c - personal property

The designation symbols used in commercial auto policies can be found in which policy section?

covered autos

additional coverages in the liability section of a homeowners policy covers everything except

damage to a third-party where the insured is legally liable

Loss valuations is best described as

determining the premium charged and the amount of insurance required on specific property

What term includes damage where the insured peril was the proximate cause of loss?

direct loss

What are not considered rebates?

dividends from mutual insurers

temporary licenses issued in Texas

expire in 180 days

The HO policy does not cover collapse caused by what?

foundation cracks

What would NOT directly help qualify someone for the office of commissioner of Insurance

insurance agent

What is NOT included in the determination of ACV

insurance premium paid

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

insurance to value

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

insuring agreement

What is NOT a condition commonly found in an insurance policy?

insuring agreement

Certificate of Authority

issued to group insurance participants

When is liability coverage included in a homeowners policy?

it is included automatically

what type of adjuster's license is not available in this state?

life and health claims adjuster

Insurance is a contract that protects the insured from what?

loss

In which type of commercial crime policy coverage is triggered by a loss that happens during a policy but is not necessarily discovered during a policy period?

loss sustained form

professional coverage a medical doctor needs?

malpractice insurance

What exposure is NOT covered under a homeowners policy?

medical payments to an insured

The medical expense coverage of a business owners policy does not cover

mental health counseling

an insured wants to transfer his rights to his wife

needs consent from insurer

Strict liability

not imposed for defendants engaged in hazardous activities

Rental reimbursement endorsement is available only if an auto policy has what type of coverage?

other-than-collision coverage

What is consideration on the part of an insurer?

paying a claim

Under a PAP, liability resulting from the insured's use of a non-owned auto is:

provided by the insured's policy on an excess basis

When can agents license be suspended or revoked?

rebates of premiums

A person who, for a fee, evaluates & assesses contracts of insurance for another and offers advice on methods of reducing risk, must be licensed as a

risk manager

policy provision that prevents the insured from collecting twice for the same loss

subrogation

replacement cost is provided in both the broad and special form dwelling policies when

the amount of insurance on the dwelling is at least 80% of its replacement cost at the time of loss

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

How much will a policy pay for loss of assessment?

up to $1,000

Homeowners liability coverage

up to $1,000 per occurrence

What is NOT an essential element of a CPP

valuations and/ or settlement provisions

Under the business auto coverage form, mobile equipment is covered for liability insurance

when being carried or towed by a covered auto