Property Insurance
The insured purchased a $200,000 extra expense policy. If the percentages applying to the limit of insurance are 40%, 80%, and 100%, what would be the maximum payable for a 47-day loss?
$160,000
An insured's building has an actual cash value of $200,000 and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?
$30,000
The businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period?
1 year
If a producer's license lapses,, how much time does the producer have to apply for reinstatement without having to take an exam?
12 months
How long must insurers keep records related to advertisement of insurance policies?
3 years
How long is the waiting period after the application has been accepted before flood coverage goes into effect?
30 days
Under Coverage C of a homeowners policy, the amount of insurance provided to cover personal property of the insured is
50% of the amount provided as Coverage A
A contract for the transport of goods between the shipper and the carrier is called
A bill of lading
Which of these is defined as the maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claims that may be made or the number of accidents that may occur?
Aggregate limit of liability
When coverage is provided under a Homeowners policy for day care operation, it must be evidenced by
An endorsement
Marlene is a self-employed adjuster who adjusts claims for various insurers under contract. She is
An independent adjuster
Which of the following endorsements under an Equipment Breakdown policy is used for calculating the amount to be paid on a lost business claim after a direct loss?
Business Income - Report of Values
Which of the following would provide coverage for loss of income when an insured rental dwelling is rendered uninhabitable because of a covered loss?
Coverage D
What is the purpose of the coinsurance clause found in property insurance policies?
Encourage the insured to insure the property closer to its full value
All of the following are excluded in the equipment breakdown basic policy EXCEPT
Explosion of steam boilers
An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming?
Foreign
Replacement cost is defined as
Full replacement of property at its current cost, new and without reduction for depreciation
An insured has a personal property replacement cost endorsement under her homeowners policy. If an expensive painting and an antique chair are stolen from the insured's home, what will the insured receive on the claim under that endorsement?
Nothing
Regarding a commercial general liability policy, which of the following types of hazards applies to injuries or damages that occur after the insured has completed a job and left the site, relinquished control of a product he or she manufactured, or sold or performed services?
Products and Completed Operations
A sworn written statement that must be furnished by the insured to the insurer before any loss under a policy can be paid is called
Proof of loss
Which of the following is NOT the consideration in a policy?
The application given to a prospective insured
Which of the following items is NOT a requirement for establishing a Township Mutual?
There must be at least $250,000
All of the following are purposes of the FAIR Plan EXCEPT
To provide competition for the normal market in Minnesota
All of the following are essential elements of a commercial package policy (CPP) EXCEPT
Valuations and/or settlement provisions
When applying for an individual life insurance policy, an applicant states that he went to the doctor for nausea, but fails to mention that he was also having severe chest pains. This is an example of
Conealment
Which of the following homeowners coverage forms applies to condominium unit owners?
HO-6
Events or conditions that increase the chances of an insured loss occurring are referred to as
Hazards
A Mobile Homeowners Policy is structured the same as a
Homeowners Policy
An additional loss that results from a direct loss of property is called a/an
Indirect loss
What do individuals use to transfer their risk of loss to a larger group?
Insurance
Which of the following would be covered under the Broad Form (DP-2) policy's falling object peril?
Interior building damage if the exterior was damaged first
Which of the following individuals would be eligible for coverage under the FAIR Plan?
Joe has been rejected for property insurance by multiple insurers in the Minnesota Market
A house insured under a dwelling policy has been vacant for 70 consecutive days. Which of the following statements is true?
Loss by vandalism and malicious mischief is excluded
All of the following are major coverages included in the homeowners policy EXCEPT
Loss of income
Which policy consists of the declarations and conditions, endorsements, and other attachments applicable to a single line of insurance?
Monoline
Which section of the policy explains the rights and characteristics of the contract?
Provisions
The Federal Fair Credit Reporting Act
Regulates consumer reports
In property insurance, actual cash value is defined as which of the following?
Replacement cost at the time of the loss, less depreciation
Which situation would NOT be covered by the basic Causes of Loss form under a commercial property policy?
The Surf Side Club Waterfront Restaurant is damaged when flood waters rise and seep into the restaurant
A small restaurant was forced to close for 10 days in August when the power company's transformer was destroyed by lightning, and the restaurant was without electricity. Which of the following endorsements could be added to the businessowners policy that would provide protection against loss of income for from such events?
Utility services - time element endorsement