Property and Casualty

The fine which the Commissioner may levy for violating any provision of the Insurance Code is?

$1,000

Makisha's home sustains $10,000 damage when it is struck by lightning. The home is insured under a homeowners policy for $90,000. At the time of the loss, the home's replacement cost is$150,000. How much will Makisha's homeowners policy pay for this loss?

$10,000

Summer owns a home with a replacement cost of $150,000. For the replacement cost provisions of a homeowners contract to apply, Summer must carry how much minimum coverage?

$120,000

If an HO3 policy has a coverage limit of $100,000 on the dwelling, how much coverage would automatically apply to cover the insured's personal property under coverage C?

$50,000

Jamie has an automobile policy with limits of $50,000 per person and $100,000 per occurrence. An accident occurs, and 2 people are injured, one with $25,000 in injuries and the other $75,000 in injuries. I Jamie is found responsible, what is the maximum amount his policy will pay for the injuries?

$75,000

According to the cancellation condition in the Common Policy Conditions form, if the insurance company y is canceling a Commercial Package polcy for any reason other than nonpayment of premium. the insured must be give at least how many days notice of cancellation?

30 days

Up to how many days may an auto insurance policy be in force and still be cancelled by the insurer for any reason?

60

To be eligible for coverage under the MS Automobile Assigned Risk Plan, an applicant must certify that he/she has sought unsuccessfully to obtain coverage with the preceding?

60 days

which of the following have liability coverage under Marty's personal auto policy?

A group of teenagers who steal Marty's car from a parking lot and take it for a joy ride.

Which of the following policies include Liability coverage?

All Homewoners forms

The Causes of Loss-Special form of the Commercial Property coverage part insured against?

All risks of direct physical loss unless specifically excluded

Which of the following lines of insurance CANNOT be included in the Commercial Package policy?

Aviation

the owner of a Laundromat who dry cleans clothing belonging to to ohers would purchase which of the following?

Bailee Policy

A short-term proof of insurance coverage provided to an applicant until a policy can be produced is known as a?

Binder

Which of the following provides temporary protection for the insured between the time the application is made and when the policy is issued?

Binder

Uninsured motorist coverage in an auto policy provides payments for which of the following?

Bodily injuries to the insured

In ALL states, an UNENDORSED Personal Auto policy's Uninsured Motorists coverage covers what type of loss caused by an uninsured motorist?

Bodily injury

Widget Enterprises wants property insurance for a new warehouse it is building also wants the policy's limit of insurance to gradually increase as the value of the building under construction increases. Which Commercial Property coverage form would best fill Widget's needs?

Builders Risk Reporting form

Which one of the following is a prepackaged policy of property and liability coverages designed specifically for certain types of small businesses?

Businessowners policy

Harriet was driving the wrong way down a one-way street when she collided with Melody, who pulled out directly into the path of Harriet's car. Since they each contributed to their loss through their own negligence, neither party can collect damages from the other. This is an example of?

Contributory negligence

Which of the following Commerical Auto coverages would insure trucks that have been leased by the insured's house painting business?

Coverage for hired autos

A business is sued because a wall constructed on its property 12 years ago collapsed and injured a child last week. Which of the following statements is not correct?

Coverage is provided under the completed liability section of the CGL policy

Which one of the following is used to modify the coverage provided under an insurance policy?

Endorsement

All of the following perils are covered by a basic insurance policy except?

Explosion

Which of the following is NOT one of the components that is required in all Commercial Package policies?

Extended Reporting Period endorsement

An individual who rents an apartment can obtain broad coverage for personal property in the apartment under which Homewoners form?

H04

Which homeowners form should someone who lives in an apartment purchase to cover his personal property?

H04

A homeowner who wants the maximum protection for her home and personal property should purchase the?

HO5

Which Commercial Property coverage form covers the insured's liability for damage to the property of others in the insured's care, custody or control?

Legal Liability coverage form

Each of the following is a primary coverage provided under the Commercial General Liability policy EXCEPT?

Liquor Liability

Which of the following would not be covered under a policy providing coverage for farm property?

Livestock being transported by a contract carrier

A fire causes extensive damage to the interior of a small delicatessen. The building was covered by a commercial package policy with a building and personal property form. Which of the following losses was covered by this contract?

Loss of profits while customers are unable to make purchases

Which of the following represent pure risks?

Margaret's dog is temperamental. She's afraid it will bite a neighbor someday and she will be held responsible/

Each of the following is a covered territory under the CGL policy except?

Mexico

Medical payments coverage provides protection for all of the following Except?

Occupants of a vehicle that is struck by the insured's vehicle.

Which of the following commercial general liability policy versions covers injuries sustained during the policy period even if the claim is not actually filed until years after the policy has been cancelled?

Occurance form

Which one of the following losses would be covered by Coverage A of the Commercial General Liability coverage form?

One of the insured's competitors sues the insured for slander

Each of the following may be covered under commercial general liability insurance except?

Personal liability

Which of the following is protected by coverage A in a commercial general liability policy?

Products and completed operations

If a driver loses control of his auto and damages the fence of a neighbor, the damages will be paid for by the driver's?

Property Damage Liability

Name the type of insurance company that is a voluntary association of members, managed by an attorney in fact, in which members insure each other?

Reciprocal Company

Uncertainty concerning financial loss best describes the concept of?

Risk

Which one of the following is NOT an element of insurability?

Risk of loss must not represent a financial A. hardship.

Which Homewoners endorsement is used to schedule separate coverage for one or more of nine categories of personal property?

Scheduled Personal Property

For a contract to be valid, the parties involved must be competent to contract. Each of the following is considered a competent party except?

Someone who is not sane

Who is responsible for licensing insurance agents?

State Ins. Dept

Which of the following businesses could be eligible for a Business owners policy?

Sweet Dreams Motel

Who of the following can cancel an insurance policy at any time without advance notice, and for any reason?

The insured

With experience rating, premiums are based on collected statistics that are published in manuals.

The premium is established based on careful evaluation of the risk, without the use of manuals

Trailer Interchange coverage is a part of the?

Truckers coverage form

Xavier's car is insured by ABC Insurance Company. Xavier took out a loan with First City Bank to purchase the car and is still making payments on the car loan. Who has an insurable interest in the car?

Xavier and First City Bank

Assume the following items were stolen from the insured's home. Which one of these losses would be fully covered under Coverage C of the homeowners policy, assuming the loss was for the full value of the property described?

a $1,000 emerald bracelet

An insurer formed under the laws of any state other than Mississippi would be known as?

a foreign insurer

Under the Commercial Property coverage part, the Causes of Loss-Basic form insures against?

a list of basic named perils ONLY

All of the following losses would be covered by a personal auto policy except?

a medical payment claim reported 4 years after the accident causing the injury.

An insured needs coverage for it's liability arising out of pollution losses, including coverage for pollution clean up costs. This insured should purchase?

a pollution liability coverage form

Ocean Marine policies provide coverage for a number of unique perils. One of those perils is Jettison, which is?

a voluntary action to rid the ship of cargo to prevent further loss

Liability imposed by law on those participating in activities that are considered to be especially hazardous is?

absolute liability

According to the principle of indemnity?

an insured should be restored to approximately the same financial position after the loss as before.

Coverage for which of the following is excluded by a Dwelling policy?

animals

Insurable interest with casualty insurance must exist?

at the time of loss

All of the following losses are excluded under a commercial auto policy Except?

bodily injury caused by an undisclosed driver using an insured vehicle with permission

A loss that occurs when an individual breaks into a safe and leaves visible signs of forcible entry best describes?

burglary

The Pair or Set condition in Personal Inland Marine forms gives the insurance company the option of reimbursing the insured for the actual cash value of the entire set when any part is damaged.

cash value of the full set and the actual cash value of the undamaged part.

A list of the insured's duties following a loss can be found in which of the following sections?

conditions

A portion of insurance contract that informs who and what is covered, in addition to when coverage is effective, is know as the?

declaration page

An insurer formed under the laws of Mississippi is known as?

domestic insurer

Both the structure and the contents of a mobile home can be insured by purchasing?

either a mobile home package policy or an HO2 or HO3 with the mobile homeowners endorsement

The pair and set clause found in property policies states that in the event of a loss to only part of pair or set, losses will be settled

either by repairing or replacing the damaged part or by paying the difference between the actual cash value before and after the loss

Under the Personal Auto policy, injuries to the insured's employees while they are using the insured's auto for business purposes are?

excluded under Liability coverage

In a particular state, an insurance company may begin using new rates as soon as they are filed with the insurance department. The department eventually reviews the filing and officially accepts or rejects it. This is an example of a/an?

file and use state

Under the commercial package policy, the person whos name is listed first in the Declarations and is assigned certain responsibilities and obligations is the?

first named insured

Before the national flood program was created by congress in 1968, flood damage was covered by?

flood coverage was generally unavailable

A condition creating or increasing the chance of loss is known as a?

hazard

An increase in the possibility that a loss might occur is a/an?

hazard

When the insured's home is damaged in a tornado, she is forced to move into a hotel for several days while repairs are made. The additional expenses the insured incurs for the hotel are considered a/an?

indirect/consequential loss

Liability insurance policies sometimes cover personal injury, which is defined as?

injury arising out of such things as slander, libel and invasion of privacy

Each of the following is true about the Mississippi Rural Underwriting Association EXCEPT?

insurance company membership in the association is voluntary

A basic dwelling policy automatically includes coverage for fire, lightning and ?

internal explosion

The Commercial Property Policy condition that automatically provides broader coverage when an insurer makes revisions to a current policy edition without charging the insured additional premium is called the?

liberalization clause

Which one of the following types of benefits is generally not provided by a state's workers compensation law?

pain and suffering

The type of inland marine floater that would be used to protect property of tourists and travelers is known as?

personal effects floater

In the Building And Personal coverage form, coverage for pollutant clean up and removal is?

provided as an additional coverage

To close a sale for a Homeowners policy, agent Susan agrees to split her commission with the customer, Nancy. This is an illegal practice known as?

rebating

The chance or uncertainty of loss is called?

risk

J&M Industries does not have an insurance plan for its employees. Instead, it pays employees medical expenses out of a fund specifally created for this purpose. This is an example of?

self-insurance

Which of the following is excluded from flood insurance?

sewer backup

Replacement cost coverage is provided under a flood policy covering?

single family dwellings insured for 80% of replacement cost or $250,000

The type of insurance company that is owned by stockholders and does not allow its policy holders to share in company profits is a?

stock company

Court bonds, fiduciary bonds and supply bonds are all types of ?

surety bonds

Deductibles are used for all of the following purposes EXCEPT?

to eliminate small losses

The purpose of insurance is to?

transfer risk

Which term best describes a building that contains nothing in which no normal activities are taking place?

vacant

The physical Damage section of the Personal Auto policy excludes losses arising from?

wear and tear