Policy School Practice Exams
Which of the following coverages may be written with Workers Compensation? A. Employers liability B. Medical payments C. General damages D. Property damages
A
Which of the following coverages would an insured need t be protected against liability assumed by written and oral contracts: A. Contractual liability B. Fidelity bond C. Premises and operations liability D. Products and completed operations liability
A
Which of the following phrases BEST defines a hazard? A. A condition that increases the chance of a loss B. The uncertainty of a loss C. The cause of a loss D. An unexpected loss
A
Which HO form does not provide Coverage A? A. HO-4 B. HO-3 C. HO-2 D. HO-1
A
Which of the following statements is true about additional coverages? A. They are included at no extra cost B They are included for a minimum premium C. They are optional on the part of the insured D. They are automatically included only if medical payments coverage is purchased
A
Which of the following perils is covered by Broad Form perils but is not covered by the Basic Form? A. Vandalism B. Weight of ice and snow C. Riot D. Windstorm
B
A Personal (family) Auto policy provides coverage for all of the following drivers of an insured car EXCEPT: A. A thief who steals the car B. The insured's child who attends school in another state C. The insured's spouse D. A neighbor who uses the car with the insured's permission
A
A building adjacent to an insured's business is severely damaged by fire. Because of the nature of the damage to the adjoining property, the insured is denied access to the business by the fire department. If the insured's property is covered under a Business Income Coverage Form, the insurer will cover the loss of earnings for a MAXIMUM of: A. Three weeks B. Thirty days C. Sixty days D. Six months
A
A business insured under a Commercial General Liability policy has a General Aggregate limit of $1,000,000 and an Occurrence limit of $100,000. An injured party is awarded $100,000. What limits will remain available to the insured? A.$900,000 General Aggregate; $100,000 Occurrence B. $1,000,000 General Aggregate; $0 Occurrence C. $1,000,000 General Aggregate; $100,000 Occurrence D. $900,000 General Aggregate; $0 Occurrence
A
A person is acting negligently if they: A. Fail to act prudently B. Do what is right C. Obey the traffic laws D. Misrepresent someone else
A
A primary obligation of an insurer is to: A. Pay the claims covered under the policy B. Provide a financial statement with each policy C. Make inspections and surveys of insured property D. Prepare an inventory after a loss
A
Actual cash value is most often defined as: A. RCV less depreciation B. Market value less depreciation C. Diminished value D. Replacement Cost
A
All of the following would have an insurable interest in a home and be insurable under the Homeowners Program, EXCEPT: A. A non-occupant realtor B. A co-owner of a 2 family house occupying the second floor apartment C. An individual who owns a house under construction D. The owner of a seasonal dwelling who has his primary dwelling insured under an HO-3
A
An insurable binder is best described as: A. Temporary short-term evidence of coverage B. Evidence of coverage as long as you own the property C. Evidence of coverage for 1 week D. Evidence of coverage until you cancel
A
An insurance contract is: I. Aleatory II. Unilateral III. Adhesive IV. Conditional A. I II III IV B. II III and IV only C. I and II only D. I II and IV only
A
An insured has an HO-3 Form. When using a snowblower borrowed from a neighbor, the insured strikes a large rock and causes $2,000 worth of damage to the snowblower. Under which section of the policy could payment be made on the insured's behalf? A. Personal Property B. Building C. Personal Liability D. Loss of Use
A
An insured may cancel a Personal Auto Policy by taking which of the following actions? A. Give written notice to the insurer B. Calling the insurer C. Selling the auto D. Buying a new auto
A
Anything that increases the chance of loss is known as a(n): A. Hazard B. Peril C. Cause of loss D. Pure risk
A
Businessowners policies provide removal coverage when property is removed from the premises to protect it from loss. The coverage will apply at other locations for up to: A. 30 days B. 60 days C. 10 days D. 20 days
A
In a state where minimum auto bodily injury liability limits are 20/40, S is driving with limits of 20/40. S is responsible for an accident with T in which T suffers bodily injury in the amount of $120,000. T has non-stacked Underinsured Motorists limits of 100/300. How much will T's policy pay toward T's injuries? A. $20,000 B. $80,000 C. $100,000 D. $120,000
A
Information provided by the insured in a Proof of Loss is considered: A. A warranty B. A representation C. An assignment D. An agreement
A
Inland Marine insurance is commonly used to insure all of the following items EXCEPT: A. Automobiles B. Stamps C. Camera equipment D. Jewelry
A
Investment consultants should purchase which of the following policies to protect themselves from errors and omissions claims? A. Professional liability B. General liability C. Products liability D. Homeowners
A
Joe Taylor has the automobile coverages listed below under a personal (family) auto policy. Select the coverage that would apply when Mr. Taylor runs over a log and damages his auto: A. Collision B. Comprehensive (other than collision) C. Bodily injury and property damage liability D. Medical payments
A
Poe loans his car, covered under the personal auto policy, the assistant coach Tom to take several members of the Lake Recreation team home. In the event of an accident, the liability section of the personal auto policy would cover all of the following EXCEPT: A. The manufacturer of Joe's auto B. Joe C. Lake recreation D. Tom
A
Premises liability exposure is faced by: I. Banks II. Landlords III. Retail stores IV. Car Sales A. I II III and IV B. I and II only C. II and III only D. I II and III only
A
Products Liability coverage would insure damages that arise from which of the following situations? A. A bicycle rider is injured when a wheel malfunctions B. An employer fired an employee C. A customer fell on a wet floor D. An employee dropped a TV he was working on
A
Risk is best defined as A. Uncertainty of loss B. Certainty of loss C. Loss of profits D. Gain
A
Should an agent die in North Carolina, the Commissioner may issue what type of license to the surviving spouse, next of kin, administrator or executor or employee thereof? A. Temporary B. Adjusters C. Agents D. Continuation
A
Subrogation may follow which of the following events: A. An insured collects from her insurance company for damages caused by a third party B. Firefighters damage the insured's property while putting out a fire C. Nature damages the insured's property D. An insured causes damage to her own goods
A
The Arbitration clause in a Personal Auto policy would be used in which of the following circumstances? A. The insured and the insurance company cannot reach an agreement regarding the settlement of a claim B. The insurer pays the insured for a loss caused by someone else C. The insured and the insurance company cannot reach an agreement on a UN/UIM claim D. Allows the insured to abandon salvage
A
The Fair Credit Reporting Act requires the: A. Insurance company to inform the applicant a credit report may be obtained B. Insurance company to run a DMV check C. Insurance company to run a credit report D. Insured to list all assets
A
The Now Company carries a Special BOP policy with a limited limit of $500,000. The company is involved in an accident causing $200,000 bodily injury damage and $200,000 property damage. The total amount collectible under the policy is: A. 400,000 B. 500,000 C. 200,000 D. 100,000
A
The maximum amount a policy will pay in the event of a loss is called the: A. Limits of Liability B. Coinsurance amount C. Pro Rata return D. Deductible
A
The principle of actual cash value is applied to claims for which of the following policies? A. Physical Damage Coverage B. Underinsured Motorist Coverage C. Uninsured Bodily Injury Coverage D. Medical Payments Coverage
A
Under the HO-3 Form, if an insured and an insurance company cannot agree on the amount of a loss, the insurance company may take which of the following actions: A. Demand an appraisal of the loss B. Demand an inquiry by the state insurance department C. Refer the dispute to an independent public adjuster D. Submit the dispute to a small claims court
A
Under the nationwide marine definition, motor truck cargo insurance is classified as what type of risk: A. Domestic shipments and transportation risk B. Transportation and communication instruments risk C. Personal property floater risk D. Commercial property floater risk
A
Which of the following Homeowners coverages does not generally contain a deductible: A. Loss of use B. Personal property C. Dwelling D. Other structures
A
Which of the following claims may be covered under Bodily Injury Liability coverage? A. Physical Impairment B. Loss of Value C. Property Damages D. Collision
A
Which of the following occurrences would be included under the definition of a personal injury? A. A tenant evicted by his landlord sues the landlord for invasion of privacy and wrongful eviction B. Medical bills as a result of an automobile accident C. Slip and fall at the insured's residence D. Insured shoots and kills and intruded
A
Which of the following policies is intended to broaden the coverage and increase the limits of underlying insurance? A. Umbrella insurance B. Primary insurance C. Liability insurance D. Risk insurance
A
Which of the following policy forms would BEST protect a ubusiness that must keep operating after a loss? A. Extra expense B. Business income C. Gross earnings D. Contingent Business Interruption
A
Which of the following sections of an insurance policy states who may be insured in addition to the named insured: A. Definition of the insured B. Obligations of the insurance company C. Declarations D. Insuring agreements
A
Which of the following statements best describes a representation in an insurance application? A. It is a statement made by the insured that certain conditions exist at the time of application B. It is a statement made by an agent that his policy is better than your current policy C. It Is a statement that is guaranteed as to accuracy D. It is a statement that is false
A
Which of the following terms is defined as the uncertainty of future outcome? A. Risk B. Hazard C. Peril D. Cause
A
Which of the following vehicles is considered a temporary substitute auto under a Personal Auto policy? A. An auto rented by an insured when the insured's car is in a garage for repairs B. An auto you newly acquired C. An auto you just sold D. An auto you borrow from your neighbor without his permission
A
Which part of an insurance policy sets the rules of conduct, duties and obligations of the insured and insurer under the terms of the contract: A. Conditions B. Exclusions C. Declarations D. Insuring agreement
A
X insures a home for $100,000 under a Dwelling Property Broad Form (DP-2). If a flood causes $1,000 in damage to the home's contents, which of the following MAXIMUM amounts will X's insurer pay? A. $0 B. $800 C. $900 D. $1,000
A
You're at a party and you run out of soft drinks. Your car is at the front of the driveway so you borrow a friend's car which is parked in the driveway nearest the street. From a coverage perspective, this car is known as a: A. Owned auto. B. Non-owned auto. C. Temporary substitute. D. All of the above.
A
a store, all of the following situations would be considered theft EXCEPT: A. Shortage of Inventory B. Shoplifting C. Robbery D. Embezzlement
A
A Commercial Building and Personal Property form provides coverage for: A. A patio attached to the building B. Business personal property C. Personal auto held for sale D. Guard dogs
B
A Commercial Package policy must include at least how many coverage parts? A. One B. Two C. Three D. Four
B
A commercial Property policy specifies which of the following responsibilities as a duty of the insured? A. To return the policy if it is canceled by the insurer B. To provide a sworn Proof of Loss statement if requested by the company C. To pay the mortgagee in full in the event of a total loss D. To pay premiums within thirty days after receiving an invoice
B
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 a Commercial Property policy? A. Declarations B. Insuring Agreement C. Conditions D. Exclusions
B
A contractor needing a bid bond to obtain a contract is an example of a(n): A. Obligee B. Principle C. Surety D. Fiduciary
B
A policyholder would expect to find which of the following information in the Insuring Agreement section of an auto policy? A. The amount of coverage B. The insurance company's promise to pay on the behalf of the insured C. The deductible D. The exclusions
B
Although CGL policies exclude liquor liability for bars, the policy would provide the coverage for: A. A catering service with a liquor license B. A textile manufacturer that serve beer at an annual company picnic C. A restaurant with a cocktail lounge D. A poolhall with half its revenues coming from beer sales
B
An apartment dweller would be the focus of: A. HO-6 B. HO-4 C. HO-1 D. HO-8
B
An insured's HO-2 Form has a $100,000 coverage limit on the dwelling and a $50,000 Personal Property limit with the standard deductible. If a sailboat valued at $1,500 is stolen from the insured's premises, the insured will collect a MAXIMUM of which of the following amounts? A. $1,000 B. $1,250 C. $1,400 D. $1,500
B
Extra expense insurance covers which of the following: A. The extra money needed to cover a firm's loss of earnings B. Unusual costs incurred to reduce the downtime in the event of a direct property loss C. The additional cost of taking safety measures before a loss D. The extra money needed to cover a landlord's loss of rental income
B
If an insured intentionally conceals a material fact about an auto to be covered by a policy, coverage may be: A. Unaffected B. Voided C. Premium increased D. Cancelled at renewal
B
In an application for marine insurance, a yacht owner states that the yacht will only be sailed on inland waters. If the insured subsequently sails the yacht on the seas, coverage may be denied because the insured has breached: A. A misrepresentation B. A warranty C. A promise D. A representation
B
In insurance, all of the following losses are examples of pure risk EXCEPT: A. Wind/Hail B. Decline of stock values on the stock market C. Fire D. Theft
B
In the event of a loss under a Personal Auto Policy, an insured is required to submit to the insurance company all of the following information EXCEPT: A. Notice of Loss B. Get an appraisal of damages C. Proof of Loss D. List of witnesses
B
Insurance purchased to protect an insured from death, injury, disability or property damage of another is defined as: A. First party coverage B. Liability insurance C. Comprehensive D. Medical payments
B
J drives L's car. Both J and L have a Personal Auto Policy. Which of the following statements is CORRECT concerning coverage if J causes an accident? A. J's policy is primary and J's is excess B. L's policy is primary and J's is excess C. J's policy is primary and Ls is excess D. L's policy does not pay anything
B
The ABC Office Supply Co. carries $100,000 insurance on a storage building held under a $50,000 mortgage acknowledged in the policy. ABC stores dynamite in the building without information the insurance company. An explosion destroys the building. What is the maximum the mortgagee can recover? A. $100,000 B. $50,000 C. $0 D. $25,000
B
The Commissioner serves a four year term and if a vacancy occurs, the position will: A. Be filled by a state ranking senior legislator B. Be filled by the governor C. Be filled by an experienced insurance agent D. Not be filled until the next election cycle
B
The conditions section of an insurance contract specifies which of the following: I. The property location II. The insurance company's responsibilities III. The insured's responsibilities IV. The policy duration A. I and IV only B. II and III only C. I and II only D. I II III and IV
B
The owner-operator of a computer store often leaves expensive computers balanced negligently on the edges of tables, believing that any damage to the computers will be paid by the insurance policy. The situation is BEST described as a: A. Moral hazard B. Morale hazard C. Catastrophic hazard D. Psychological hazard
B
The principle of indemnity is designed to avoid: A. Two policies sharing payment for a loss B. Overpayment of a claim C. The return of earned premiums D. A Coinsurance clause of less than 80 percent
B
Under Workers Compensation insurance, the insurance company has notice of an accident when: A. The employee informs the insurance company B. The employer has notice C. The insurance company receives notice by certified mail from the employee D. The employer informs the insurance company
B
Under a Commercial General Liability policy, Personal and Advertising Injury Liability coverage does NOT apply to damages resulting from: A. False arrest B. Stealing another's logo C. Invasion of their rights D. Slanderous statements made by an advertising firm
B
Under a Commercial General Liability 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. Invasion of an individual's privacy D. Harmful, truthful information published by a realtor
B
Under a Homeowners policy, an insured is required to take all of the following actions when a covered loss occurs EXCEPT: A. Give prompt notice to the insurer or its producer B. Hire an appraiser to determine the amount of loss C. Notify the police if the loss is the result of theft D. Protect the property from further loss
B
When insurance is written on a dwelling form, each of the following types of property would be insured under coverage A (dwelling coverage) EXCEPT: A. A laundry room attached to the dwelling B. A barn separated from the dwelling by no more than 10 feet C. Material and supplies used for construction or repair of the dwelling D. A garage attached to the dwelling
B
Which of the following coverages may be added by endorsement to a Boiler and Machinery policy? A. Expediting Expenses B. Extra Expense C. Property Damage Liability D. Damage to Property of the Insured
B
Which of the following individuals is a named insured under a Personal Auto policy? A. Anyone driving the insured vehicle B. A person who is listed in the Declarations section C. Your child under the legal driving age D. The mechanic working on your car
B
Which of the following individuals is likely to have a valid Workers Compensation claim? A. A customer is injured in the store B. An employee injured while undergoing job training C. An employee is injured at home D. An employee becomes a diabetic
B
Which of the following losses would be covered under an Inside the Premises - Robbery and Safe Burglary or Other Property Form? A. Money stolen from an unlocked vehicle B. Gold bars are stolen from a locked safe that shows signs of forces entry C. Missing inventory D. Shoplifting
B
Which of the following perils is covered under the Commercial Property Basic Cause of Loss form? A. Collapse B. Sinkhole collapse C. Falling objects D. Breakage of glass
B
Which of the following sections of a policy limits coverage? A. Insuring Agreement B. Exclusions C. Definitions D. Conditions
B
Which of the following sources may be used to provide property insurability information? A. Police records B. Physical inspections C. Checking account statements D. Lie detector tests
B
While examining a saw at Elmer's Hardware, a customer accidentally cuts her hand. Elmer's liability exposure would be addressed by the following coverage: A. Products and completed operations liability B. Premises and operations liability C. Contractual liability D. Owners and contractors protective liability
B
Workers Compensation benefits include all of the following EXCEPT: A. Lost wages B. Property damage C. Death benefit D. Medical
B
A family takes their 50 horsepower outboard motor boat to the lake on a trailer towed behind their personal auto. The pleasure boat is appropriately covered for physical damage under which of the following policies? A. Dwelling B. Homeowners C. Boatowners D. Yacht
C
A deer jumps through the window of an insured's home, damaging the interior and exterior walls. Which of the following Homeowners Forms listed below is the LEAST comprehensive form that will still provide coverage for this loss? A. HO-1 Form B. HO-2 Form C. HO-3 Form D. HO-5 Form
C
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 described as: A. A time element loss B. A consequential loss C. A direct loss D. an indirect loss
C
After paying a claim, an insurance company may have the right to pursue legal action against the negligent party. This right is called: A. Appraisal B. Arbitration C. Subrogation D. Twisting
C
An applicant's statement included in the insurance contract that the property to be insured has an operable sprinkler system is: A. Agency binding authority B. A warranty C. A representation D. An affidavit
C
An insured owns a set of six drawing pens designed and used by Benjamin Franklin. Each pen is worth $1,000 alone, but the set is worth $12,000. One pen is destroyed by a covered peril. Under the Paid and Set clause, the insurance company will pay a maximum of which of the following amounts: A. $12,000 B. $1,000 C. $7,000 D. $2,000
C
Bob is purchasing a commercial property policy to cover contents of a building valued at $100,000. The policy includes an 80 percent coinsurance clause. To avoid a coinsurance penalty in the event of a partial loss, Bob should purchase a policy with minimum limits of at least: A. $100,000 B. $20,000 C. $80,000 D. $90,000
C
During a tornado, a barn is destroyed when a section of its wall is blown down, knocking over a lantern which sets the barn on fire. The proximate cause of the loss is the A. Fire B. Collapse of the wall C. Tornado D. Smoke
C
Fly-By-Night Construction Company has a CGL policy with a coverage dates of 03/01/01 to 03/01/02. The per occurrence limit is $500,000 and the General Aggregate Limit of $1,000,000. The maximum that can be paid out on the insured's behalf is: A. 2,000,000 B. 500,000 C. 1,000,000 D. 1,500,000
C
G insurers G's television repair shop under a Building and Personal Property Coverage Form with limits of $100,000 on the building and $50,000 on business personal property. A fire causes $10,000 in damage to the building and $20,000 losses to the contents. G also has to pay $1,000 for debris removal. If the policy has a deductible of $250, G will receive a MAXIMUM of which of the following amounts from his insurer? A. $29,750 B. $30,000 C. $30,750 D. $31,000
C
If an insurance agent, broker or administrator embezzled or fraudulently converts to his/her own use, money or other consideration received, and is valued at $100,000 or less, the agent will be punished as a: A. Administrative suspension and temporary loss of his/her insurance license B. Violator of north carolina's consumer protection act and subject to a $250,000 fine by the insurance commissioner C. Class h felony D. Misdemeanor act
C
In a Commercial General Liability policy, medical payment expenses MUST be: A. Incurred within 3 years B. Reported within 3 years C. Reported within one year D. Incurred immediately
C
In a Commercial Property Form, if a building is left vacant, coverage for vandalism will continue for up to how many days? A. 30 B. 45 C. 60 D. 90
C
Information provided by the insured in a proof of loss is considered: A. A representation B. An agreement C. A warranty D. An assignment
C
S is purchasing a Commercial Property policy to cover a commercial building with a replacement cost of $100,000. The policy includes an 80 percent Coinsurance clause. To avoid a coinsurance penalty in the event of a partial loss, S should purchase a policy with minimum limits of AT LEAST which of the following amounts? A. $100,000 B. $90,000 C. $80,000 D. $20,000
C
Special Form or Open Perils coverage: A. Provides coverage against the named perils B. Provides coverage against scheduled risks C. Is limited by the named exclusions D. Includes no exclusions
C
The Conditions section of an insurance policy states the: A. Insuring Agreement B. Definitions C. Duties of the insured D. Declarations
C
The MAXIMUM amount a policy will pay in the event of a loss is called the: A. Coinsurance amount B. Deductible C. Limit of Liability D. Pro Rata Return
C
The limits of liability are found in which of the following sections of a casualty policy? A. Conditions B. Insuring Agreement C. Declarations D. Exclusions
C
The plumbing in Mrs. Sander's home suddenly burst and the ceilings were damaged by water. All of the following Homeowners Forms would cover the loss EXCEPT an? A. HO 2 Form B. HO 3 Form C. HO 1 Form D. HO 5 Form
C
The procedure for resolving a disagreement between an insured and an insurer about a loss is A. Declarations B. Insuring Agreement C. Conditions D. Exclusions
C
To be defined as a burglary, an event must include which of the following conditions? A. Bodily injury B. Fear or threat of violence C. Visible signs of forced entry or exit D. Mysterious disappearance
C
Under a Fidelity Bond, which of the following individuals is considered the obligee? A. An employee B. A visitor to the property C. An employer D. A secretary
C
Under the dwelling forms, personal property moved to a new principal residence will be automatically covered at the new location (subject to policy expiration) for a period of: A. 10 days B. 60 days C. 30 days D. 20 days
C
W, an electrician, caused damage to the main wiring of a shopping center while working on another building. As a result, the shopping center was forced to close early for the day. The loss resulting from this damage would be considered which of the following types under W's Commercial General Liability policy? A. Completed Operations B. Premises Liability C. Operations D. Employee Liability
C
Which of the following Homeowners coverages does NOT generally contain a deductible? A. Personal property B. Other structures C. Liability D. Dwelling
C
Which of the following injuries is covered under the Medical Payments section of an insured's Commercial General Liability policy? A. An employee injured on the job B. The insured injured in his showroom C. A supplier is injured while visiting the insured's showroom D. A thief cuts his arm while breaking into the business
C
Which of the following liability coverages may require the insured's consent before the insurance company settles and pays a loss? A. Automobile B. Homeowners C. Professional D. Commercial General
C
Which of the following perils is covered under the commercial property basic cause of loss form? A. Collapse B. Falling objects C. Sinkhole collapse D. Breakage of glass
C
Which of the following sections of an insurance policy would explain the term "auto"? A. Declarations B. Conditions C. Deciditions D. Exclusions
C
A Commercial General Liability policy provides coverage for which of the following hazards? A. Auto liability B. Homeowners liability C. Truckers Liability D. Premises Liability
D
A legal obligation for injured that are sustained due to failure to perform a duty is known as: A. Negligence B. Medical payments C. Rebating D. Liability
D
A temporary license is issued for a maximum of how many days in a 12 month period? A. 30 days B. 60 days C. 90 days D. 180 days
D
All of the following are additional coverages under the homeowners program EXCEPT: A. Reasonable repairs B. Debris removal C. Loss assessment D. Special damages
D
All of the following options are examples of insurable interest EXCEPT: A. A person's interest in property she is buying on contract B. A tenant's interest in improvements she has made to a leased building C. A TV repairman's interest in a customer's TV which has been repaired but is still on premises D. An individual's interest in property her parents will someday leave to her
D
All of the following perils are covered under a Building and Business Personal Property Coverage Form with a Causes of Loss-Basic Form attached EXCEPT: A. Smoke B. Sprinkler leakage C. Sinkhole collapse D. Earth movement
D
An insured has an automobile policy with a combined single limit of $500,000 for bodily injury and property damage. After an accident, a court awards $300,000 bodily injury and $25,000 property damage to Claimant A, and $200,000 bodily injury and $25,000 property damage to CLaimant B. In this situation, the insurance company's limit for liability is: A. $550,000 B. $0 C. $600,000 D. $500,000
D
An insured is required to take which of the following actions immediately after an occurrence? A. Call the police B. Get an appraisal C. Repair the damages and turn in a bill to the insurer D. Give notice to the insurer
D
An insured owns an antique marble statue valued at $3,000., which is covered under a Personal Articles Floater. Damage to the statue would be covered in all of the following situations EXCEPT: A. It was accidently damaged by a housekeeper B. It was damaged in a flood C. A guest of the insured maliciously damaged it D. The insured threw it
D
Commercial general liability coverage provides medical expense payments for accidental injuries if the expenses are incurred and reported to the insurer within: A. Two years after the accident date B. Three years after the accident date C. Six months after the accident date D. One year after the accident date
D
Coverage for a compensable injury under Workers Compensation: I. Must arise out of employment II. Must arise in the course of employment A. I only B. II only C. Neither I or II D. Both I and II
D
DP-2 is considered to be which of the following types of forms A. Special B. Basic C. All-risk D. Broad
D
If a dwelling insured under an HO-3 is destroyed by fire, the insured will likely be paid: A. The market value of the dwelling B. The assessed value of the dwelling C. A depreciated value of the dwelling D. The policy limits
D
In insurance, which of the following terms refers to continuous or repeated exposure to conditions that may result in bodily injury or damage neither expected nor inteded? A. A hazard B. A peril C. A risk D. An occurrence
D
In order to issue a written binder for a commercial property policy, what is the MINIMUM consideration a producer must secure from an applicant? A. A promise to pay the premium B. A signature on a premium finance agreement C. Payment of six months' premium D. Payment of twelve months' premium
D
Medical payments under commercial general liability policies include reimbursement for all of the following EXCEPT: A. Funeral services following a fatal injury B. First aid at the time of the personal injury C. X-rays following a personal injury D. Employee claims for on-the-job injuries
D
N's next door neighbor, S, dumps hot ashes in N's trash dumpster, starting a fire and causing severe damage to N's home. N's company pays the loss and then goes after S for payment. This is an example of: A. pro rata liability B. assignment C. appraisal D. subrogation
D
Premium costs for standard Workers Compensation insurance are paid by: A. Employees B. Public C. Injured Parties D. Employers
D
Pro-rata cancellation occurs when A. A policy is non renewed B. A mortgage has been satisfied C. An insured cancels a policy at inception D. An insurer cancels a policy at any time
D
The Insurance Information and Privacy Protection Act is designed to protect the general public form abuse in regard to the gathering of personal information practices to all applicants or policyholders in connections with insurance transactions for all of the following EXCEPT: A. In the case for an application for insurance, a notice shall be provided no later than the time of policy deliver. B. In the case of a policy reinstatement, or change in insurance benefits, a notice shall be provided no later than the time a request for a policy reinstatement or change in insurance benefit is received by the insurance institution C. In the case of a policy renewal, a notice shall be provided no later than the policy renewal date D. Information gathered on an insured must be made available to the public
D
The National Flood Insurance Program provides coverage for losses caused by all of the following occurrences EXCEPT: A. Mudslides B. Runoff from heavy rain C. Overflow of tidal waters D. Water-main breakage
D
The Personal Liability section of a Homeowners policy covers which of the following options? A. Damage to an insured's property caused by a visitor B. Bodily injury to a resident caused by a neighbor's dog C. Property damage caused by war D. Bodily injury caused by the personal activities of an insured
D
The act of intentionally withholding from an insurance application a fact that would affect issuance of the policy is referred to as: A. Waiver B. Estoppel C. Rebating D. Concealment
D
The attempt to restore an insured to the insured's previous financial condition before the loss occurred is BEST described as: A. Gain B. Repayment C. Rebating D. Indemnification
D
The inland marine coverage form which provides open peril insurance for specific classes of personal property on an itemized and scheduled basis is called a: A. Personal effect floater B. Personal property floater C. Personal transportation floater D. Personal article floater
D
The professional liability of a lawyer would be addressed by: A. Errors and omissions B. Contractual liability C. Commercial general liability D. Malpractice
D
Under a Personal Property Floater, a loss is covered when it occurs: A. In the insured's home only B. In the United States only C. In the United States or Canada only D. Anywhere in the world
D
Under a personal auto policy, newly acquired additional vehicles are covered automatically for a limited period of time. This automatic coverage: A. Is limited to the lowest coverage for any vehicles shown in the policy B. Only includes liability coverage C. Only includes liability and uninsured motorists coverage D. Is a broad as the broadest coverage for any vehicle shown in the policy
D
Which of the following businesses would be eligible for a Business owners policy? A. Auto body shop B. Theater C. Branch bank D. Barber shop
D
Which of the following statements about a mortgagee's rights under the Dwelling Property Basic Form (DP-1) is INCORRECT? A. No act by the insured will jeopardize the mortgagee's rights B. The mortgagee may file a Proof of Loss if the insured fails to do so C. The mortgagee is entitles to receive prior notice of a policy's cancellation D. The mortgagee may abandon the insured property to the insurer
D
Which of the following statements is CORRECT about the Fair Credit Reporting Act? A. It requires an insurer to send to an applicant a copy of the applicant's credit report B. It requires an insurer to obtain a credit report on an applicant C. It allows an insurer to obtain a credit report without the applicant's permission D. It provides a method for an applicant to correct any incorrect information in the credit report.
D
Which of the following terms BEST describes continuous and repeated exposure to conditions that are neither expected not intended by the insured? A. Negligence B. Liability C. Accident D. Occurrence
D
Which of the following terms can be defined as a policy provision that omits certain risks from coverage? A. Declarations B. Insuring Agreements C. Conditions D. Exclusions
D
Which of the following vehicles is considered a covered auto under a Personal Auto Policy? A. Replacement vehicle bought Jan. 1 and wrecked Feb. 3 and not reported to agent B. A vehicle titles in your son's name C. A vehicle you owned insured by another carrier D. Replacement vehicle bought one week before the accident but not yet reported to agent
D
