Property and Casualty Fl Exam

The Coverage B limit of insurance is up to _______ of the Coverage A limit and is automatically provided under each of the dwelling forms.

10%

The automatic limit of insurance for Coverage B - Other Structures is ______ of the Coverage A limit of insurance.

10%

The Coverage D limit of insurance is up to ______of the Coverage A limit and is automatically provided under each of the dwelling forms.

20%

Trees, Shrubs, and Other Plants is an additional coverage that provides insurance at a limit of up to _______ of the Coverage A limit, with a maximum of $500 for any one tree, shrub, or plant.

5%

The automatic limit of insurance for Coverage C - Personal Property is ___ of the limit for Coverage A.

50%

____________ Personal Property applies to personal property owned or used by an insured while it is anywhere in the world. If personal property is usually located at a residence other than the residence premises, coverage is limited to 10% of Coverage C or $1,000, whichever amount is greater.

HO Coverage C

The ______________________ is designed for the owners of condominium and cooperative units. Coverage is provided for the building and personal property; other structures coverage is included in Coverage A - Dwelling.

HO-6, Unit-owners Form

The _________________________ is used when insuring older homes where replacement value and market value are disproportionate or when a moral hazard would be created if insurance were written in an amount equal to 100% of a dwelling's replacement value.

HO-8, Modified Coverage Form

The Businessowners Policy will cover damage to the building on which settlement basis?

One of the very attractive features of the Businessowners Policy is that it covers both building and contents on a Replacement Cost basis.

The ______________ perils are the DP-1 perils, the EC perils, VMM, and the following: damage by burglars, falling objects, weight of ice, snow, or sleet, and accidental discharge or overflow of water or steam.

DP-2 Broad Forms

Which of the following homeowners coverage does not have a deductible?

Damage to Property of Others

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?

Expenses that have been incurred and reported within one year of the date of the accident are covered under this section.

The authority of a producer that is stated in his/her agency contract, are said to be:

Express Powers

______________________ includes libel; slander; false arrest, detention, or imprisonment; malicious prosecution; wrongful entry; wrongful eviction; and invasion of privacy.

Personal Injury

Office of Financial Regulation (OFR), which is responsible for:

Regulating the following: ○ Banks, credit unions, savings association, international bank agencies ○ Financial service companies and Securities industry

In most cases, the insurer requires the named insured to purchase insurance in an amount that is no less than ____ of the dwelling's replacement value.value.

80%

Which of the following is a function of the Bureau of Financial Investigations?

Act as a criminal justice agency within the Department of Financial Services

_____________________includes the use of another's idea in the insured's "advertisement" and infringement of copyright, trade dress, or slogan in the insured's "advertisement."

Advertising Injury

Under Equipment Breakdown Insurance, which of the following is considered 'one breakdown'?

All breakdowns occurring at the same time that are the direct result of the same cause

How much must be covered at a minimum under a unit owner's residential property policy in property loss assessment coverage?

At least $2,000 must be covered under a unit owner's residential property policy in property loss assessment coverage.

Under a CGL, at what point in time is the earned premium determined by the premium audit?

At the end of the policy period

______________________ Personal and Advertising Injury provides protection for liability arising from personal and advertising injury offense committed in the coverage territory and during the policy period.

CGL Coverage B

______________ Medical Expense pays for medical expenses for bodily injury incurred in the covered territory and during the policy period that are caused by an accident on the insured's premises or because of the insured's operations.

CGL Coverage C

An agent who induces a client to use the cash value of an existing policy to buy an additional but unneeded policy is guilty of _______________.

Churning is the practice whereby policy values, such as cash value, in an existing life insurance policy, annuity contract, and/or any riders, are used to purchase another insurance policy or annuity contract with that same insurer for the purpose of earning additional premiums, fees, commissions, or other compensation.

The ____________ trigger is an occurrence that takes place after the retroactive date, before the end of the policy period, AND for which a claim is reported within the policy period or during any applicable extended reporting period.

Claims-made Form

The ____________________ states that the insurer will pay if the insured is legally obligated to pay for covered bodily injury and/or property damage, provided the occurrence took place during the policy period and in the United States of America including its territories and possessions, Puerto Rico, and Canada.

Commercial General Liability's Coverage A Insuring Agreement

Every _______________________ includes a Common Policy Declarations and Common Policy Conditions that apply to the entire policy regardless of the types of coverage written or the endorsements added to the policy.

Commercial Package Policy

The _________________________ contains the legal obligations and duties of the insured and insurer, including cancellation, changes, examination of your books and records, inspections and surveys, premiums, and transfer of your rights and duties under this policy.

Common Policy Conditions

The __________________________ Page shows the who, what, when, where, and how much of the entire policy, each of the coverage parts included on the policy, and a Declarations page for each coverage part.

Common Policy Declarations

Which of the following statements about the Dwelling Special Form is true?

Contents are covered on an actual cash value basis

Department of Financial Services

Controls unfair trade practices, supervise methods to obtain licenses, may interrogate applicant, penalties, liquidate insurance companies, and unclaimed property.

_____________applies to the dwelling described in the declarations, used principally for residential purposes, including structures attached to the dwelling, such as an attached garage, carport, breezeway or deck.

Coverage A

_____________ applies to other structures on the described location if they are separated or detached from the dwelling by clear space, a fence, or a utility line.

Coverage B

____________ applies to household and personal property usual to the occupancy as a dwelling if it is owned by the insured or by members of the insured's family who reside with the insured.

Coverage C

__________ provides insurance for indirect losses that occur as a result of direct losses to property insured under Coverages A, B, or C that are covered by the policy.

Coverage D

Which of the following is true regarding the Products exposure of the CGL?

Coverage applies to the bodily injury (BI) and property damage (PD) the product causes but not to the product itself

Which of the following is an element of fiduciary responsibility?

Duty of loyalty

Coverage A Exclusions include

Expected or Intended Injury, Contractual Liability, Liquor Liability, Workers' Compensation, Employer's Liability, Pollution, Aircraft, Auto, and Watercraft, Transportation of Mobile Equipment, and War. Also, Damage to Property, Damage to Insured's Product, Damage to Insured's Work, Damage to Impaired Property or Property Not Physically Injured, Product Recall, Personal and Advertising Injury, and Electronic Data.

___________ Other Structures does not provide insurance for other structures that are rented or held for rental to anyone who isn't a tenant of the dwelling, from which business is conducted, or in which business personal property is stored.

HO Coverage B

Certain types of property are not covered under _____________________________, such as property insured elsewhere, animals, birds, fish, motor vehicles, aircraft, hovercraft, property or roomers and boarders, property located in apartments rented to others, business data, credit cards and electronic fund transfer cards, and water or steam.

HO Coverage C - Personal Property

If a property loss covered by Section I of the policy makes the residence premises unfit to live in, ____________________ Loss of Use pays for any necessary increase in living expenses required by the named insured to maintain the household's normal standard of living. Coverage is also provided for the fair rental value of the portion of the dwelling rented to others and in the event a civil authority prevents the use of the residence premises.

HO Coverage D

____________________ - Personal Liability, insurance is provided for claims made and suits brought against an insured because of bodily injury or property damage caused by an occurrence to which the insurance applies. The policy pays up to the limit of liability for the damages for which an insured is legally liable, including prejudgment interest awarded against an insured.

HO Coverage E

______________ - Medical Payments to Others pays for the necessary medical expenses incurred within 3 years from the date of an accident causing bodily injury without regard to fault. Coverage is provided for injury to a person on the insured location with permission, or off the insured location if the injury is caused by the insured or a residence employee in the course of employment, or by an animal owned by or in the care of an insured.

HO Coverage F

The ________________ is designed for tenants of a residential unit and provides no coverage for buildings and other structures.

HO-4 Contents Broad Form

The _______________________ insures the dwelling, other structures, and personal property on an open perils basis. Loss valuation for the dwelling and other structures is on a replacement cost basis and loss valuation for personal property is on an actual cash value basis.

HO-5, Comprehensive Form

Under an HO-3 policy, what is the coinsurance requirement?

If Coverage A is less than 80% at the time of a loss to the dwelling, a penalty will be applied to the partial dwelling loss claim payment.

Under which of the following scenarios will Policyholder J's injuries be covered by her unendorsed Personal Auto Policy under Medical Payments Coverage?

J was driving her own car from the Post Office after retrieving her employer's mail; Business use of private passenger cars is NOT excluded under Medical Payments Coverage.

The State Legislature does what?

Makes and amends laws that comprise the Insurance Code.

Which statement regarding the Medical Payments Coverage of the Business Auto Policy is true?

Medical Payments Coverage is available by endorsement to the Business Coverage Form. The coverage is not automatically included in the commercial auto forms.

The ___________________ trigger is an occurrence that takes place during the policy period and within the coverage territory. No requirement exists with respect to the reporting of a covered loss.

Occurrence Form

Which of the following describes the loss settlement basis for a fire damage claim to a dwelling insured under a DP-3 policy?

Replacement cost up to the Coverage A limit

Which insurance provision prevents the insured from collecting twice for the same loss?

Subrogation may take place when a negligent third party is the cause of a loss. Once the insurance company has paid the loss, it receives the insured's right of recovery from the third party, preventing the insured from collecting from both the insurer and the culpable party.

The Annual Transit Form is designed for which of the following?

The Annual Transit Form is designed for firms that send or receive substantial amounts of shipments by common carrier.

Which state entity is responsible for approving a Certificate of Authority for an insurance company?

The Commissioner of the Office of Insurance Regulation also regulates insurance licensing, rates, policy forms, market conduct, claims, and company solvency.

The administration of state insurance law is the responsibility of which of the following?

The administration of state insurance law is the responsibility of the Chief Financial Officer (CFO), Financial Services Commission and Director of the Office of Insurance Regulation.

Livestock is not eligible for coverage on which Farm policy?

The Special Cause of Loss Form specifically excludes coverage for livestock. The Basic form covers flood and earthquake loss to livestock and the Broad form covers electrocution of covered livestock.

Which state entity decides conflicts between insurance companies and policyholders?

The State judicial system also enforces the code by administering criminal penalties and decides if new laws are constitutional.

Which of the following is stated in the insuring agreement?

The insuring agreement states the insurance company's promise to pay the insured, including the exact perils insured against by the policy.

The maximum amount that a coverage will pay for loss to any one injured party regardless of overall policy limits, is known as the:

The per person limit is the maximum amount of coverage available for each person that sustains bodily injuries in an occurrence.

Which of the following is not one of the limits of liability provided by the CGL?

There is no unique limit for bodily injury losses, though payment for such losses would be subject to other policy limits, such as the per occurrence limit, the general aggregate limit, the products-completed operations aggregate limit, or the medical expenses limit.

Which of the following is a duty required of the insured in the event of a loss under the PAP?

Under Part E - Duties After a Coverage D Loss, the insured must also allow and inspection an appraisal before the damage is repaired and promptly notify the police if the car was stolen.

Which statement concerning the Dwelling Special Form is true?

Under the Special Form, the dwelling and other structures are covered against open perils on a replacement cost basis, while personal property is covered against the broad perils on an actual cash value basis.

Losses to the DP-1 dwelling, other structures, and contents are paid on an ________________ basis to the insured.

actual cash value

The HO-2, -3, -4, -6, and -8 forms insure personal property for the 16 named perils and losses are valued on an ___________________________.

actual cash value basis

The _________________________ coordinate the coverage in multiple coverage parts of the policy to prevent redundancy.

interline endorsements

The DP-3 Special Form covers the dwelling and other structures on an _______________ , except for the perils specifically excluded.

open perils basis

The HO-3, Special Form insures the dwelling and other structures on an ___________________ and losses are valued on a _______________________________.

open perils basis; replacement cost basis

The HO-2, Broad Form insures the dwelling and other structures for the 16 named perils and losses. Valuation is on a ______________________________.

replacement cost basis

The State Judicial System, which:

• Decides conflicts between companies and policyholders • Enforces the code by administering criminal penalties Decides if new laws are constitutional

Office of Insurance Regulation (OIR) which is responsible for:

• Regulating the following areas of insurance industry: ○ Licensing ○ Rates ○ Policy forms ○ Market conduct ○ Claims ○ Certificates of Authority • Protecting the public through oversight of insurance company solvency. Maintaining expertise related to life and health, property and casualty, specialty lines, and other insurance entities.

the Bureau of Financial Investigations:

○ Functions as a criminal justice agency Conducts investigations to protect consumers from financial entities that violate state laws and rules