Property and Casualty Chapter by Chapter Quizzes 6-10

The limit of insurance that the insurer will pay for a physical damage loss is the: A Actual Cash Value B Lesser of the ACV or the cost to repair or replace with like kind and quality C Greater of the ACV or the cost to repair or replace with like kind and quality D Replacement cost The most the insurer will pay for damaged or stolen property in any one accident is the lesser of the ACV or the cost of repairing or replacing with property of like kind and quality.

B

Which Statement is true regarding a Difference In Conditions Policy? A There is always a coinsurance clause B There is no standard form C The standard deductible is $250 D There is a pro rata clause There is no coinsurance or pro rata clause and the standard deductible is in the range of $10,000.

B

Which coverage protects the insured against drivers who do not have auto liability insurance limits adequate to cover a loss? A Medical Payments Coverage B Underinsured Motorist Coverage C Uninsured Motorist Coverage D Liability Coverage

B

Which of the following is not an insured contract under CGL? A Sidetrack agreement B An advertising contract C Lease for a new store location D Elevator maintenance agreement

B

All of the following are an 'insured' under Larry's Business Auto Policy, except: A Bob, the sales director at Larry's company using a covered auto with permission B Tim, an employee driving a car Larry rented for business purposes C Ed, who owns a car Larry borrowed D Larry, the named insured Under the BAP, the owner of a vehicle borrowed by the named insured is NOT an 'insured.'

C

Which of the following conditions under a Building and Personal Property Coverage Form determines how losses will be paid? A Appraisal B Loss Conditions C Valuation Clause D Deductible The Valuation Clause sets forth the method of evaluating losses, and treats valuation of unusual property such as stock that has been sold, glass, outdoor equipment, and valuable papers.

C

Which of the following covers physical damage to non-owned trailers and their equipment? A Truckers Coverage B Interline Coverage C Trailer Interchange Coverage D Other Insurance Clause

C

Section II of the Garage Coverage Form does not cover: A Completed operations liability B Premise and operations liability C Products liability D Damage to the customer's car in the insured's care Section II (Liability) Coverage does not cover vehicles in the insured's care, custody or control. Section III (Garagekeepers Coverage) provides this coverage.

D

A building valued at $200,000 is insured for $150,000 with an 80% coinsurance requirement and a $1,000 deductible. After the building is totally destroyed, incurring debris removal expenses of $10,000, how much will the Building and Personal Property Coverage Form pay? A $159,000 B $155,000 C $154,000 D $160,000 After a total loss, the policy will pay the face amount less the deductible, plus up to $10,000 for debris removal. The coinsurance requirement only penalizes the insured for not carrying insurance to value in the case of a partial loss.

A

What coverage is not included under the Boatowners Policy? A Personal Property Coverage B Medical Payments C Property Coverage D Hull Like the PAP, a boatowners policy does not cover loss or damage to personal property.

A

Which of the following is included in the building coverage provided by the Building and Personal Property Coverage Form? A Completed additions, fixtures, including outdoor fixtures, permanently installed machinery and equipment B Property that is located in or on the building described in the Declarations or in the open (or in a vehicle) within 100 feet of the premises C Tenant's interest in Improvements and Betterments D Furniture, fixtures, machinery and equipment

A

Which of the following is not a Supplementary Payment under Part A of the Personal Auto Policy? A Medical payments for an occupant of an insured vehicle B Payment for lost earnings up to $200/day C Up to $250 for the cost of bail bonds D Reasonable expenses incurred at the insurer's request Medical payments are paid out of Part B of the policy and are not considered Supplementary Payments.

A

All of the following are considered uninsured motor vehicles, except: A A hit and run vehicle B A vehicle that is being used as a residence C A vehicle to which the insuring company becomes insolvent D A vehicle to which no liability policy applies

B

All of the following are sections of the Garage Coverage Form, except: A Garagekeepers Insurance B Comprehensive Insurance C Liability Insurance D Physical Damage Insurance Comprehensive coverage is part of the Physical Damage coverage provided by Section IV.

B

All of the following are true of the Business Auto Coverage Form, except: A It covers liability from mobile equipment while being towed B It covers injuries to employees C It does not include contractual liability coverage D It provides no-fault coverage in states that require it Injuries to employees would be covered under Workers' Compensation.

B

Comprehensive Coverage under Physical Damage Coverage of the Business Auto Coverage Form, includes all of the following, except: A Lightning B Collision C Glass Breakage D Theft Comprehensive Coverage under the Business Auto Coverage Form is a broad open perils coverage that covers damage from perils not excluded. Collision is excluded under the policy

B

M and C both have Personal Auto policies with liability limits of 20/30/10. If M borrows C's car and injures a pedestrian, causing injuries that will cost $5,000 to treat, which policy will provide coverage for the injured party? A Both policies will share the loss pro-rata B C's policy C Neither policy, since C's car was not on M's policy D M's policy The owner's coverage is primary (insurance follows the car not the driver). Coverage for a non-owned vehicle is excess.

B

Medical payments coverage under the Commercial General Liability Coverage Forms includes reasonable medical expenses if they are incurred and reported within how many years following an accident? A 2 B 1 C 3 D 5 Expenses that have been incurred and reported within one year of the date of the accident are covered under this section.

B

Which of the following may be insured on a replacement cost basis under the National Flood Insurance Program? A Nonresidential or commercial buildings less than 3 stories high B 1- to 4-family residences and residential condominiums C Nonresidential or commercial buildings valued at less than $250,000 D Money and securities Under the National Flood Insurance Program, property is insured on an actual cash value basis, except one- to four- family residences and residential condominiums may be insured on a replacement cost basis.

B

Which of the following vehicle uses is not excluded under Personal Auto Medical Payments? A Livery B Farm use C Occupying a vehicle as a residence D Racing

B

Which section of the Garage Coverage Form provides physical damage coverage for the insured's covered autos? A Section III B Section IV C Section I D Section II

B

A boat and trailer worth $20,000 is damaged at a lake when the insured drove over a log. The physical damage is covered under which of the following policies? A Dwelling B Homeowners C Boatowners D Umbrella Physical damage to the boat will only be covered under the Boatowners policy.

C

All of the following are common policy conditions under the CPP, except: A Cancellations B Changes C Interline endorsement D Examinations of books and records Interline endorsements coordinate coverage contained in one part of the policy with other coverage parts to prevent duplication and are not considered a policy condition.

C

In commercial liability policies, the word 'tail' is synonymous with: A Retroactive date B Supplementary payments C Extended reporting period D Endorsement

C

Under a Mobile Home policy, if the mobile home is insured under Coverage A for $70,000, how much coverage would ordinarily apply to personal property under Coverage C? A $30,000 B $42,000 C $28,000 D $35,000 Under the Mobile Homeowners Policy, Coverage C (Personal Property) is generally written at 40% of Coverage A, instead of 50% under the Homeowners Policy. 40% of $70,000 = $28,000.

C

Under the Personal Auto Policy, medical payments do not apply to passengers occupying which of the following? A A non-owned vehicle B A van being used for shared car pools C A van used in the insured's business in the course of employment D A newly acquired vehicle Workers' Compensation coverage is an exclusive remedy for injuries incurred in the course of employment. Therefore, these injuries are excluded under Medical Payments coverage.

C

When an auto has two auto policies with the same insurer, the insurer's liability would not exceed: A The limit of the last one purchased B The combined limit of the two policies C The highest limit of the two policies D The limit of the first one purchased

C

Which of the following is true of the Towing coverage provided under Section III of the BAP? A Coverage applies to all vehicle types B Towing coverage is only available for an added premium C Labor must be performed at the place of disablement D Only towing costs are covered The policy automatically pays for the costs of towing and labor incurred each time a covered private passenger type auto is disabled. Labor must be performed at the place of disablement.

C

Which of the following is true regarding the Musical Instrument Floater? A The insured must report newly acquired items immediately B It provides blanket coverage on musical instruments owned by the insured C Insured instruments may not be played for remuneration during the policy term D The insured must report newly acquired items within 120 days If coverage is desired for musical instruments played for hire, the policy must be endorsed for such usage and an additional premium paid.

C

Which of the following would not be considered an insured under a CGL? A Volunteer worker B Executor of the CEO's estate after his death C An LLC employee's spouse assisting in cleaning the office so they can leave for vacation more quickly D Real Estate Manager acting on behalf of the insured The spouse of an LLC employee is not considered an insured. The LLC, its members and managers are considered insureds.

C

After being rejected by an insurer due to underwriting guidelines an applicant may request homeowners coverage under which of the following? A A DP-3 Special Dwelling Plan B Write Your Own Homeowners Program C An Umbrella policy D FAIR Plan

D

All the following are true regarding commercial property coverage, except: A The Broad Causes of Loss Form does not include settling, cracking, bulging or expansion B Vandalism coverage is limited to 60 days if the property is vacant C The Special Causes of Loss Form covers open peril of direct loss except those specifically excluded D The Basic Causes of Loss Form covers water damage

D

Which of the following statements regarding Multi-Peril Crop Insurance is correct: A Multi-peril crop insurance protects against the perils of lightning, wind, and pollution B Insects and plant disease are excluded from coverage C Multi-peril crop insurance is not reinsured by the federal government, but through CHIAA D Multi-peril crop insurance is reinsured by the federal government by FCIC

D

Which of the following would be included in the definition of Business Personal Property under the Building and Personal Property Coverage Form? A Business Personal Property of others rented to the insured B Stock on consignment held for sale by the insured C Accounts, bills, and currency of others on the premises in the insured's trust D Furniture and machinery owned by the insured Business Personal Property covers only personal property owned by the insured, plus the insured's interest in improvements and betterments the insured has made to rented real property.

D

ABC industries has insured a factory building for $80,000. The replacement value is $150,000. If the commercial property policy insuring the building has an 80% coinsurance clause, how much will ABC's insurer pay for a $12,000 covered loss? A $8,000 B $12,000 C $9,600 D $10,000 The coinsurance clause requires insurance at 80% of the replacement value, or $120,000. Because the policy limit of insurance is only $80,000, or 2/3 of $120,000, the claim payment would be 2/3 of $12,000, or $8,000.

A

In which of the following circumstances would the insured be required to pay a self-insured retention on an umbrella policy? A The umbrella drops down to act as the primary policy B There is a substantial change in the risk C The insurance carrier is declared insolvent D The limits of the underlying policy have been exhausted The insured is only required to pay a self-insured retention when the umbrella drops down to serve as the primary policy--which happens when the underlying policy doesn't cover a loss.

A

On a commercial property coverage form, outdoor signs attached to the building are covered up to what amount? A $2,500 B $5,000 C $1,000 D $3,000

A

Personal Article Floater claims are normally settled on a(n): A Actual cash value basis with some exceptions B Market value basis C Replacement Cost basis D Functional Replacement Cost basis

A

Regarding Medical Payments under the Personal Auto Policy, the liability limit shown in the Declarations is the maximum the policy will pay for which of the following? A Each person injured in any one accident B All persons injured in any one accident C Each person injured during the policy term D All claims during the policy term The Medical Payments limit is a per person limit that applies to each accident.

A

Section I of the Boatowners policy provides which type of coverage and settlement option? A It provides open perils coverage, and losses are settled on an actual cash value basis B It provides named perils coverage, and losses are settled on a replacement cost basis C It provides named perils coverage, and losses are settled on an actual cash value basis D It provides open perils coverage, and losses are settled on a replacement cost basis Section I of the policy provides open perils coverage for the hull, motor, trailer, equipment, and accessories manufactured for marine use. Losses are settled on an actual cash value (ACV) basis.

A

The Garagekeepers Coverage of the Garage Coverage Form covers the liability of: A Physical damage to a customer's car that is in the care and custody of an insured B Damage to autos held for sale C Product liability exposures D Owned vehicles that are used in the business

A

Under the Building and Personal Property Coverage Form, a limit of how much is applied to business personal property temporarily away from the premises. A $10,000 B $5,000 C $15,000 D $2,500

A

Uninsured Motorist Coverage under a Personal Auto Policy covers which of the following vehicles? A A vehicle owned by the named insured B A vehicle used primarily for use off public roads C A vehicle being driven without permission D Any vehicle being used to carry property or persons for a fee Coverage does not apply to non covered vehicles, nor when a person is using the vehicle without permission.

A

Which Cause of Loss form for the Commercial Property Coverage Part will cover loss of sales merchandise due to a burglary? A The Special Form B The Broad Form C There is no burglary coverage provided by the Commercial Property Policy D The Broad Form and The Special Form The perils of Burglary and Theft are not excluded under the Special Form.

A

Which of the following is found in the Common Policy Declarations of the CPP? A The deductible B The insurer's cancellation right C The provision that the first named insured is responsible for all premiums D The provision granting the insurer the right to make inspections of insured property Sorry!

A

Which statement regarding the Medical Payments Coverage of the Business Auto Policy is true? A The BAP does not automatically include Medical Payments Coverage B Coverage is limited to medical expenses incurred in the first year after the accident C Medical Payments Coverage is designed to provide medical payments coverage for employees D Medical Payments Coverage also pays loss of income during disability arising from a covered accident Medical Payments Coverage is available by endorsement to the Business Coverage Form. The coverage is not automatically included in the commercial auto forms.

A

Choose the false statement about a newly acquired additional vehicle under the PAP: A It must be reported to the insurer within a specified period B It may be used to transport goods for hire if receipts are less than $10,000 C It may be used on a farm D Coverage will be as broad as the broadest coverage on any insured vehicle in the household Vehicles used to carry goods for hire cannot be insured under a Personal Auto Policy.

B

Policyholder J hit a deer with his Honda. J has collision coverage with a $250 deductible and Other Than Collision coverage with a $50 deductible. The damage to J's car was $450. How much will the policy pay? A Nothing B $400 C $150 D $200 Collision with a bird or animal is covered by Other Than Collision coverage. The $50 deductible would apply.

B

Which of the following is not covered under the Condominium Commercial Unit-Owners Coverage Form? A Appliances B Building exterior wall C Business personal property D Improvements The exterior wall is part of the common property covered by the Condominium Association Coverage Form.

B

Which of the following would NOT be found in the Common Policy Declarations page of a Commercial Package Policy? A The named insured B The occurence form C The expiration date D The mortgagee The Declarations Page shows the Who, What, When, Where, and How Much regarding the insurance provided by the policy. An occurrence form is a separate form used for claim-filing.

B

Which of the following would be found in Section I of a CGL? A The policy definitions B Coverage for bodily injury and property damage C The Commercial General Liability conditions D List of insureds under the policy Coverage A provides coverage for bodily injury and property damage liability. The conditions are found in Section IV, the definitions are found in Section V, and Who Is An Insured is found in Section II.

B

All of the following are true about extended reporting periods, except: A The basic extended reporting period allows a claim to be reported after the policy period for a specified number of days B The basic extended reporting period does not increase the policy limits C The supplemental tail requires an annual premium D Under the supplemental tail, the insured must request coverage within 60 days after the end of the policy term The supplemental extended reporting period has a one-time premium.

C

Choose the false statement about the CGL policy. A Changes to a Commercial General Liability Coverage Part may be made only by endorsement issued by the insurer B Under the insuring agreement of the Commercial General Liability Coverage Part, a bodily injury claim must be caused by an occurrence and it must have taken place in covered territory C A Products and Completed Operations Liability claim will reduce the General Aggregate Limit of the Commercial General Liability Coverage Part D Under the Commercial General Liability Coverage Part, the General Aggregate Limit will be reduced by a medical payment Products & Completed Operations claims have their own aggregate limit and these claims do not reduce the General Aggregate.

C

Fine arts and antiques are classes of property insured on a: A Actual cash basis B Replacement cost basis C Valued basis D Market value basis Fine arts are typically insured on a valued basis, whereby the insured and insurer agree, at time of insuring, on an amount of insurance to be paid in the event of a loss.

C

The Business Auto Coverage Form is intended for which of the following businesses? A Owned or hired trucks, trailers and semi-trailers only B Owned, leased, hired or borrowed private passenger autos only C Owned, leased, hired or borrowed private passenger autos, trucks, trailers and semi-trailers D Owned, leased, or hired trucks, trailers and semi-trailers only The Business Auto Coverage Form is used for insuring owned, leased, hired or borrowed private passenger autos, trucks, trailers and semi-trailers used in the business of the insured.

C

The CGL's general aggregate limit does not cover which of the following? A Medical expenses B Bodily injury C Product recall D Advertising injury

C

The Commercial Property Basic Cause of Loss Form will cover losses caused by which of the following? A Falling Objects B Weight of Ice, Snow or Sleet C Sprinkler leakage D Water Damage Caused by Accidental Discharge of Water

C

Which of the following is covered under a Personal Auto Policy? A Liability for damage caused by a vehicle designed mainly for off road use B Use of a non-owned vehicle used without permission C A vehicle driven with permission by an unlicensed driver D Intentional damage done by the insured The policy defines insured as used in Part A, as the named insured or another person using the covered auto with permission, even if not licensed.

C

Which of the following is false regarding the Building and Personal Property Coverage Form? A Business personal property includes property that is either in the building or within 100 feet of the building B Newly acquired or constructed property is automatically included for 30 days, not exceeding $250,000 for each building C The policy covers vehicles licensed for road use D Trees, shrubs and plants are covered up to $1,000 with a sublimit of $250 for any one tree, shrub or plant Autos for sale and those licensed for road use are excluded.

C

Which of the following is not a covered peril under the Basic Cause of Loss Form? A Sinkhole collapse B Volcanic action C Earthquake D Sprinkler leakage

C

Which of the following is not a provision found in Section IV of the CGL? A Other insurance B Bankruptcy C Inspection and surveys D Premium audit

C

Which type of Commercial Auto policy would be best suited for a company whose employees used their own vehicles to make sales calls? A Truckers Coverage Form B Motor Carrier Coverage Form C Business Auto Coverage Form D Garage Coverage Form The BAP covers owned, leased, hired, rented, or borrowed private passenger autos, trucks, trailers, and semi-trailers that are owned or used by the insured. This includes autos owned by employees while being used in the business.

C

Coverage B of the CGL would cover which of the following claims? A A new business misappropriates the insured's slogan B A competitor illegally uses the insured's copyright material C A customer falls on the insured's premises and breaks his leg D The insured was accused of causing a business associate to be falsely arrested False arrest is included in the definition of Personal Injury. The copyright and slogan infringement claims would be covered under the wrongdoer's policy, not the person who was wronged.

D

Coverage for recreational vehicles can be added to the Personal Auto Policy by the: A Named Non-Owner Endorsement B Cross Terrain Endorsement C Recreational Vehicles Endorsement D Miscellaneous Type Vehicle Endorsement

D

The Personal Articles Floater is used to do which of the following? A Insure individual personal property on a scheduled basis B Provide replacement cost coverage on personal property C Replace Coverage B of the Homeowners Policy D Insure personal property on a blanket basis The Personal Articles Floater is used to insure personal property on a scheduled (or itemized) basis. Articles covered under this floater are no longer covered under Coverage C of the Homeowners Policy.

D

Which of the following is covered under Part D of the Personal Auto Policy? A Theft loss to a portable CD player B Damage to a van used as a livery C Damage to a radar detector D Water or flood damage to a convertible when the top is left down Water or flood damage is covered under Other Than Collision coverage. Damage to audio electronics and radar detection equipment is excluded.

D

Which of the following is false about the CGL's two coverage forms? A Coverage is triggered when an occurrence takes place during the policy period B The retroactive date is unique to the Claims-Made form C The claims-made form covers losses that occur after the retroactive date and before the policy expiration date D Coverage under the occurrence form is based on when the loss is reported With the Occurrence form it doesn't matter when the loss is reported, but the date the loss occurred must be during the policy period.

D

Which of the following is true concerning the Premium Audit condition of the Commercial General Coverage Part to the Commercial Package Policy? A Premium Audit is the action taken by the insurer to see that the insured's rating is properly classified B Premium Audit is the comparison of the insured's premium with the average premium in the insured's rating classification C Premium Audit refers to the right of the insured to contest the premium after policy issuance D Premium audit determines what the earned premium will be at the end of the policy period The insured must keep records sufficient for the insurer to compute premiums based upon sales, receipts, or payroll. After an audit, an additional premium is required if these records show that these items are greater than the estimates that developed the deposit premium.

D

Which of the following is true regarding Completed Operations coverage? A Bodily injury arising from negligent or faulty work of the insured is not covered if it occurs after the work is completed and turned over to its owner B Coverage applies only during the period that the insured has custody and control of the work deemed faulty or inadequately performed C If faulty work causes damage to other property of the claimant, then coverage extends to include the faulty work D The coverage will pay for bodily injury and/or property damage caused by negligent or faulty work by the insured, but not for the cost of replacing the work that caused the loss

D

Which of the following vehicles IS covered under Part B - Medical Payments of the PAP? A A van used as a residence B A company car issued to a family member C 3-wheel vehicle used off-road D A car used to carpool with colleagues A share-the-expense vehicle is not considered a public or livery conveyance, and is therefore not excluded under the policy.

D

Which of the following would be considered an insured's product? A Merchandise held by the insured as inventory B A remodeled building C Goods shipped out to a retail location for sale D Goods sold by the insured at a trade show' A business's goods become covered products once they are sold by the insured and in the possession of a buyer. Before that time, liability for the goods is found in premises and operations coverage.

D

All of the following are general conditions of the BAP, except: A Duties in the event of an accident B No benefit to bailee for physical damage C Concealment, misrepresentation, or fraud D Premium audit Duties in the event of an accident is a loss condition under the BAP, not a general condition.

A

Damages from which of the following would apply to the per occurrence limit under a Commercial General Liability policy? A Medical payments B False arrest C Libel and slander D Invasion of privacy The Per Occurrence Limit only applies to certain damages under Coverages A and C. The three wrong options are examples of Personal Injury, which is under Coverage B and counts toward a different limit.

A

Which form responds to losses that occur while the policy is in force, regardless of when the claim is made? A Occurrence B Products C Claims-Made D Premises and Operations An occurrence form provides coverage for losses that take place during the policy period. It doesn't matter when the loss is reported; what matters is when the loss occurred. The key in this form is the date the loss actually happened and if it happened when the policy was in effect.

A

Which of the following is FALSE about a claim payment for a Part D under Personal Auto? A If the insurer returns a stolen car to the insured, it doesn't have to pay claims for vehicle damage B The insurance company can decide whether to pay cash or repair the vehicle C The insurance company can keep or return a stolen car D The claim payment will include any applicable sales tax If the insurance company returns a stolen car to the insured, it must pay for any damage that occurred as a result of the theft.

A

Which of the following is not an example of contingent liability exposure? A Premises liability exposure B Liability exposure of an insured's sub-contractors C Contractual liability exposure D Owners and Contractors Protective liability exposure

A

Which of the following is not covered under the Building and Personal Property Coverage Form? A Accounts, bills, currency, deeds, evidence of debt, money or securities B Completed additions C Personal property owned and used to service and maintain the building D Building materials that are on or within 100 feet of the described premises

A

Which of the following is true regarding the Supplemental Extended Reporting Period? A The premium is a one-time charge B It covers occurrences that take place after the policy term, during the Supplemental Extended Reporting Period C The charge for the Supplemental Extended Reporting Period may not exceed the annual premium of the expiring policy D Cancellation by the insurer requires 90 days notice of cancellation The cost of the endorsement may be up to 200% of the CGL's annual premium. This is a one-time charge and is fully earned at issuance.

A

Which of the following is true regarding the Yacht Policy? A It has navigational limits that describe the area where the yacht is allowed to operate B It is written on an Inland Marine form C It is designed for boats that can be towed by automobiles D It covers damage to the hull and fittings. Liability coverage may be attached by endorsement The Yacht policy is designed for larger vessels such as yachts, excursion vessels, etc. It is written on an Ocean Marine Form and includes Hull, Protection and Indemnity, Medical Payments and Jones Act coverages.

A

Which of the following losses would not be covered under a NFIP policy? A A water main in the street breaks, flooding the insured's basement B Tidal waters flood a coastal home following a hurricane C A home on a seaside cliff falls to the beach resulting from swift erosion D Mudslides cover a garage on the banks of a major river following torrential rains A water main break does not meet the definition of a covered flood.

A

Which of the following statements is true regarding the eligibility of flood insurance? A In order to qualify for a federal loan, the property owner must purchase flood insurance if the property is located in a flood area B All property located in a flood area must be insured against flood by law C Industrial buildings are not eligible for flood insurance D Banks and Savings and Loan Associations may exempt an individual from purchasing the flood insurance that is required for a federal loan

A

Which of the following would not be covered under Coverage A of the CGL? A An insured's employee is injured when a bookcase in the office falls on her B An insured's client was injured when she slipped on a loose rug on the insured's premises C An insured was visiting a client in Canada, who was injured after he tripped over the insured's briefcase D While working at a trade show, an insured's employee started a small fire Workers' Compensation insurance will cover the injuries to an employee arising out of work activities.

A

Which statement is false regarding the Building and Personal Property Coverage Form? A The standard deductible is $100 B The Peak Season Endorsement can be provided for a specified increase for a certain period C If either the insurer or the insured submits a written demand for appraisal, each will choose and pay for his or her own appraiser D Coverage does not apply to money or securities The standard deductible is $500.

A

Which section of the BAP provides coverage for autos in the care, custody and control of the insured? A Section I B This coverage is not provided under the Business Auto Coverage Form C Section III D Section II Coverage for loss or damage to a customer's vehicle in the insured's care is excluded under the BAP. It is found in Section III of the Garage Coverage Form.

B

Choose the false statement regarding the application of coverage under the Products Exposure Liability Coverage. A Coverage applies to bodily injury the product causes B Coverage applies to bodily injury occurring away from premises the insured owns or rents C Coverage applies to damage to the product itself D Coverage applies to property damage the product causes Products Liability Coverage as relates to Commercial General Liability Insurance covers damage or injuries caused by the product, but does not include damage to the product itself.

C

Time Element is best defined as: A The requirements for either pre-certification or continuing education B The period between Notice of Loss and Payment of Loss C Business Income and Extra Expense Coverage Form D Fair Rental Value and Additional Living Expense Time element losses are indirect losses covering loss of business income and extra expenses.

C

Under Part F of the Personal Auto Policy, the Legal Action Against Us provision states that: A Legal action against the insurer is permitted only when arbitration is unsuccessful B Legal action brought against the insurer must be brought within 90 days of the loss C Legal action may not be brought against the insurer until the insured has complied with all the terms of the policy D Legal action brought against the insurer must be brought within 180 days of the loss

C

When an insured's boat is in storage, which warranty allows for a return on premium? A Storage B Dry Dock C Lay Up D Houseboat A 'Lay Up Warranty' applies when the insured boat is in storage and allows for a return of premium due to the reduced risk of the boat not being used when laid up. If the insured operates the yacht during the lay-up period (or lives on it), no coverage is provided.

C

Which is a TRUE statement about the Boatowners Policy? A Losses are always settled on a ACV basis B It can be used to insure any owned marine vessel C It provides both property and liability coverage, similar to a PAP D It provides named perils coverage for the hull and motor only Similar to a PAP, the Boatowners policy provides both property and liability coverage. It is generally used to insure boats under 26 feet that can be towed by a car.

C

Which of the following businesses would not be eligible for coverage under the Garage Coverage Form? A Public parking lot B Car dealer C Service station D Rental car agency The Garage Coverage Form provides automobile liability and physical damage coverage, as well as General Liability Protection for businesses in the sale, service, or storage of automobiles.

C

All of the following are true of the Building and Personal Property Coverage Form, except: A Personal property owned and used to service the building is included in the building coverage B Building Coverage includes the building structure, completed additions, permanently installed fixtures, machinery and equipment C Personal property of others that is in the insured's care, custody, and control is automatically included up to $2,500 D Tenant's improvements that are not legally removable are included in the Personal Property of Others Coverage Tenants Improvements & Betterments are covered under Business Personal Property, not Personal Property of Others Coverage. flag question

D

If Policyholder J has no added endorsements, under which of the following scenarios will Policyholder J's injuries be covered by her Personal Auto Policy under Medical Payments Coverage? A J broke her leg during an accident that occurred during a demolition derby B J slid into a tree while driving her company car on a personal errand C J was using her car as a taxi when the vehicle overturned D J was driving her own car from the Post Office after retrieving her employer's mail

D

If property under a Personal Floater risk is insured at a $5,000 valued basis, how much would the insured receive if the item is a total loss, the actual cash value is $4,000, and an auction is selling the same item for $3,500? A $4,000 less the deductible B $4,000 C $3,500 D $5,000 If an item is insured on a valued basis, that is how much the policy will pay for a loss.

D

On the Personal Auto Policy, the Collision coverage provides payment for losses: A To the car you run into, regardless of liability B To your car, but only if you are legally liable C To your car and the car you run into D To your car, and regardless of liability Collision coverage only applies to a vehicle of the insured and is applied regardless of fault. (Damage to another vehicle would fall under Liability coverage.)

D

Physical damage to the insured auto that is not covered under collision, and is not otherwise excluded, would be covered under: A Transportation Expenses B Named perils C Property Damage Liability D Comprehensive The Other than Collision coverage, also known as Comprehensive, provides coverage for damages not caused by collision and not excluded in the exclusions.

D

S carries a Personal Auto Policy with Liability limits of 50/100/25. What is the maximum the policy will pay if S struck another vehicle causing injury to the occupants as follows: Driver - $70,000; Passenger 1-$30,000; Passenger 2-$50,000 and property damage to the other vehicle - $20,000? A $125,000 B $120,000 C $170,000 D $150,000 Coverage is as follows: Driver - $50,000; Passenger 1 - $30,000; Passenger 2 - $20,000, since the policy will only pay $50,000 per person and a total of $100,000 per accident. The property damage is fully covered, totaling $120,000.

D

The Scheduled Articles Floater provides which of the following coverages to described property? A Blanket coverage B Replacement cost C Named Perils D Open Perils The Scheduled Articles Floater is written on open perils basis, with very few exclusions.

D

Which of the following best describes the Towing and Labor Costs endorsement to the Personal Auto Policy? A It provides coverage for labor costs incurred after being towed to a repair shop B It provides coverage for towing charges incurred when towing a disabled vehicle to the insured's home C It provides coverage for towing a covered auto involved in a collision D It provides payment for towing to a garage, or for labor that is performed at the site of a mechanical disablement

D

Which of the following is a covered auto under Personal Auto liability? A A vehicle owned by the insured's employer B The insured's ATV C An airport shuttle van which charges a fee to passengers D A new vehicle purchased 7 days ago to replace an old vehicle but not yet reported to the insurer A replacement auto for another is covered for liability and medical payments for the remainder of the policy period even of the insured does not report the replacement.

D

Which of the following is true regarding the Earthquake Cause of Loss Form? A It includes coverage for earthquakes that start within 168 hours after the expiration of the policy B It can be used by itself to provide a stand alone Earthquake policy C It provides coverage for mudslides D It can be used only with another Causes of Loss Form The Earthquake Causes of Loss Form cannot be used alone to provide an Earthquake policy. It is intended only to add the Earthquake peril to one of the other Causes of Loss Forms.

D

Which of the following regarding the value reporting form is true? A The form may be attached to any Commercial Property Part coverage forms B The final premium is based on the values reported in the last report of the policy term C The Value Reporting Form contains an 80% coinsurance clause D Late reporting or under-reporting will result in a penalty in the event of a loss This endorsement may be attached to the Building and Personal Property Form and the Condominium Commercial Unit-Owners Form. The insured is required to report 100% of values with each report. Late reporting or under-reporting will result in a penalty in the event of a loss.

D

Which of the following statements about the National Flood Insurance Program is false? A Property removed to protect it from flood is covered for 45 days at other locations B Two deductibles apply separately to the building and contents C Mudflow is covered; mudslide is not covered D Coverage becomes effective after a 24-hour waiting period Coverage usually become effective after a 30-day waiting period; some exceptions apply.

D