PNC EXAM QUESTIONS
An HO policy will pay up to ____1______ for silverware by theft, ___2_____ for boats, motors, trailers/trailers not used with boats, but no more than ___3_____ for coins
(1)$2,500 (2)$1,500 (3)$200
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of
Misrepresentation
The business income form excludes coverage for the following:
off-premises services interruption, finished stock exclusion, antenna exclusion, delay exclusion (delay is caused by the interference of strikers), and loss of privilege.
If the actual values exceed the limit of insurance, the businessowners policy (BOP) contains a seasonal increase provision that automatically increases the limit of insurance for business personal property by
25%
How long must producer maintain records of continuing education course completion?
4 years
Insurers must file all rates and forms for Commissioner's approval within how many days prior to use?
60 days
In Texas, under Worker's Compensation Law, lifetime income benefits are paid at what rate?
75% of the employee's average weekly wage
An insured hits a deer and crashes his car into a tree. The total damage to the vehicle is $6,000. How will this loss be covered?
Because the proximate cause of the loss was contact with an animal, all of the $6,000 in damages would be paid under other-than-collision coverage.
The liability coverage of the businessowners policy is written on a ...?
Businessowners liability coverage form
Who will transport the property of anyone who hires them?
Common carriers
The difference in the contents coverage on an HO-3 and HO-5?
Contents are covered open peril on HO-5, and named peril on HO-3. -Replacement cost coverage is available only by endorsement to either form.
Which of the following is the Fair Rental Value coverage in the dwelling policy?
Coverage D
To perform work on a customer's car, a mechanic in an auto shop had to put the vehicle on a service hoist. The hoist collapsed, damaging the vehicle and injuring the mechanic. In regard to the garage coverage form, which of the following statements is true?
No coverage is applicable -the garage coverage form does not cover property damage for a customer's vehicle that is on a service hoist or for bodily injury.
An insurance agent wants for a client to replace her current annuities plan with another one. He presents the new one in an incomplete and dishonest way, which makes the new contract seem far more appealing than the original one. The policyowner ends up surrendering her original contract and replacing it with the new one. Which term best describes what the agent did?
Twisting
An applicant properly notifies her insurer of a straightforward claim, but the insurer waits an exceedingly long time to process it. Which of the below terms best describes the behavior of the insurer?
Unfair claims settlement practice