questions i got wrong 3

19

#15. What is the minimum age for a driver who is hired by a transportation network company (TNC)? a) 18 b) 19 c) 21 d) 25

Hospital room and board

#91. Which of the following services and benefits would basic medical expense coverage NOT cover? a) Hospice care b) Hospital room and board c) Mental illness treatment d) Maternity benefits

Internal explosion.

A basic dwelling policy automatically provides coverage against fire, lightning, and a) Riot. b) Windstorm. c) Internal explosion. d) Smoke.

$50,000

A policyowner wants to purchase as much additional personal injury protection (APIP) coverage as he can. What is the maximum APIP available? a) $25,000 b) $50,000 c) $100,000 d) $150,000

Ordinance with which the insured was required to comply prior to the loss. . No coverage will be provided for ordinances or laws the insured was required to comply with prior to the loss.

A property insurance policy that insures a commercial building on a replacement cost basis includes the ordinance or law coverage endorsement. This endorsement will cover all of the following expenses EXCEPT a) Ordinance with which the insured was required to comply prior to the loss. b) Loss to the undamaged portion of the building. c) Any increased cost of repairs or reconstruction. d) Demolition and removal cost.

Business auto coverage form may apply.

A small trucking company stops transporting hay for area farmers and begins to haul hay for its own farm exclusively. In regard to the coverage on its trucks, which of the following is true? a) Business auto coverage form may apply. b) Any coverage form applies. c) Coverage can continue under the truckers coverage form. d) Farm liability coverage applies.

There is no coverage.

A specific coverage part is listed on the commercial package policy declarations page, but there is no premium shown. What does that mean? a) Coverage is automatic. b) There is no coverage. c) Coverage applies without premium. d) This must be a misprint on the form.

Motor carrier coverage is needed.

ABC trucking company recently purchased XYZ manufacturing company. ABC wants to transport the new company's freight with their trucking division. The company also wants to continue to haul freight for the clients it has served for many years. In regard to coverage, which of the following is true? a) The company must choose between being a private carrier and a common or contract carrier. b) Truckers coverage form is needed. c) A truckers coverage form is needed along with the business auto coverage form. d) Motor carrier coverage is needed.

Large pleasure boats.

According to the Nationwide Marine definitions, risks that may be the subject of inland marine insurance include all of the following EXCEPT a) Large pleasure boats. b) Property while stored at a warehouse. c) Shipments made by freight train. d) Cargo transported by truck.

The insurer must pay a deductible that equals a percentage of the earned premiums for the previous year.

According to the Terrorism Risk Insurance Act of 2002, which of the following is true about the reimbursement for the insured losses? a) The insurer must pay a deductible that equals a percentage of the earned premiums for the previous year. b) The government will reimburse the insurer in a single lump sum. c) Losses from terrorist acts do not qualify for reimbursement. d) The federal government covers 100% of the losses in excess of $5 million.

Either party may make a written request for an appraisal.

According to the appraisal condition of a homeowners policy, what procedure may be followed if the insurer and insured do not agree as to the size of a loss? a) The parties must pursue a lawsuit. b) The policyholder is allowed to hire an appraiser, and the insurer will pay the amount determined. c) Either party may make a written request for an appraisal. d) The insured is required to accept what the insurer is willing to pay.

At any time.

According to the conditions of a workers compensation policy, the insurer has the right to inspect the insured workplace a) With the consent of the insured. b) With at least 5 days' notice. c) At any time. d) With at least 10 days' notice.

$750,000

According to the financial responsibility requirements set by the Motor Carrier Act of 1980, what is the minimum amount of insurance the company must carry for the transportation of nonhazardous property? (Choose from the following options) O 1. $250,000 O 2. $500,000 O 3. $750,000 O 4. $1 million

Mortgagee

According to the standard mortgage clause, who has the right to bring a suit in their own name to recover damages, pay policy premiums, and submit a proof of loss? a) Governor b) Policyholder c) Mortgagee d) Insurance company

Damage to a third-party property for which the insured is legally liable.

Additional coverages in the liability section of a homeowners policy cover all of the following EXCEPT a) Damage to the property of others. b) Damage to a third-party property for which the insured is legally liable. c) Claims expense. d) Expenses the insured incurs rendering first aid for bodily injury to third parties.

Personal injury.

All of the following are additional liability coverages automatically provided in a homeowners policy EXCEPT (Choose from the following options) O1. Claims expenses. O 2. Damage to the property of others. O 3. Loss assessment coverage. O 4. Personal injury.

Common carrier cargo liability.

All of the following are classes of inland marine risks EXCEPT a) Bridges, tunnels, and other instrumentalities of transportation and communication. b) Common carrier cargo liability. c) Commercial property floater risks. d) Domestic shipments and transportation risks.

Theft.

All of the following are perils covered under the broad form dwelling policy EXCEPT (Choose from the following options) O 1. Theft. O 2. Fire. O 3. Lightning. O 4. Collapse.

Every insurer must file a fraud prevention plan within 150 days. Every insurer must file a fraud prevention plan within 120 days.

All of the following are true about the Insurance Frauds Prevention Act EXCEPT a) The Superintendent has the power to conduct investigations outside of the state. b) Every insurer must file a fraud prevention plan within 150 days. c) The Act is intended to permit the Superintendent and department to utilize their expertise to investigate and discover insurance fraud. d) The Superintendent has the power to designate one or more units for the purpose of preventing fraud.

It must be added by endorsement to a homeowners policy. Homeowners policies automatically provide an amount of insurance in Coverage B that is equal to 10% of the amount written as Coverage A. This amount may be increased by endorsement.

All of the following are true of Coverage B - Other Structures in homeowners policies EXCEPT a) The amount of coverage provided by Coverage B is an amount equal to 10% of Coverage A. b) Land where the other structures are located is not covered. c) It must be added by endorsement to a homeowners policy. d) This coverage is not applicable on the HO-4 policy form.

Contractors equipment floater

An individual's construction company leaves mobile equipment and construction machinery on the job site until the project is completed. What could this individual use to insure it? (Choose from the following options) O1. Bailee's customers form O 2. Builders risk form O 3. General property form O 4. Contractors equipment floater

It will provide coverage because the damage to the client resulted from the producer's negligence.

An insurance producer fails to obtain automobile insurance for a client after agreeing to do so. The client is involved in an automobile accident after running a red light and is found to be at fault. The damage to the other vehicle totals $5,000. Which statement regarding the producer's errors and omissions liability policy is true? a) It will provide coverage because punitive damages have been awarded. b) It will provide coverage because the damage to the client resulted from the producer's negligence. c) It will not provide coverage; such physical damage to property is not covered. d) It will not provide coverage because the property damage resulted from the client breaking the law.

Limited coverage

An insured has a history of heart disease in his family, so he would like to buy a health insurance policy that strictly covers heart disease. What type of policy is this? (Choose from the following options) O 1. Isolated coverage O 2. Limited coverage O 3. Single protection O 4. Unilateral protection

None

An insured neglected to pay his premiums, so his policy lapsed. He filed a reinstatement application and another premium and was reinstated shortly thereafter. Five days after the reinstatement, he had a consultation with a general surgeon. Which part of the consultation costs will be covered? (Choose from the following options) O 1. None O 2. There is not enough information to answer this question. O 3. The fullest amount allowed by the policy O 4. The fullest amount allowed by the policy, after his new deductible is met.

Unoccupied Unoccupancy refers to an insured structure in which no people have been living or working within the required period of time, but the structure contains contents.

An insured relocated to another state for work. However, she still owns and insures a house in this state, but has had no one living in it for 3 months. She is also storing some furniture and clothes in the house. From an insurance standpoint, the insured's house is considered a) Unoccupied. b) Condemned. c) Under repair. d) Vacant.

Losses will be paid to the mortgagee and mortgagor as their interest appears.

An insured's home is mortgaged by the local bank. The insured is required to carry insurance on the home, showing the bank as the mortgagee. If the home is damaged by a covered peril, which of the following is true? O1. The mortgagee must settle with the mortgagor in the event of a loss. O 2. The additional premium required for the mortgage endorsement must be paid by the mortgagee. O 3. Losses will be paid to the mortgagee and mortgagor as their interest appears. O 4. Coverage is suspended if the building is mortgaged and the insurer is not told of this indebtedness.

Volcanic eruption

Besides the peril of earthquake, which other peril is covered by the earthquake cause of loss form under a commercial property policy? (Choose from the following options) 0 1. Tidal wave 0 2. Hurricane O 3. Lightning O 4. Volcanic eruption

Losses due to the insured's negligence.

Coverage A - Bodily Injury and Property Damage in the commercial general liability policy will cover a) Damage to the insured's product. b) Losses due to the insured's negligence. c) Liquor liability. d) Contractual liability.

3 years

Coverage for medical payments under a personal auto policy applies to expenses following a covered accident that are incurred and services rendered within what maximum time period? (Choose from the following options) O 1. 90 days O 2. 1 year O 3. 3 years O 4. 5 vears

Up to $1,000

Farm policy Coverage B - Structures would pay how much for loss of an outside antenna, tower, or satellite dish? (Choose from the following options) O1 Not more than $250 © 2. Up to $1,000 O 3. ACV on date of loss O 4. Full replacement cost

Are paid in addition to the liability limit.

First aid costs for others injured on the insured's premises (Choose from the following options) O 1. Are paid in addition to the liability limit. O 2. Apply only if the insured is legally liable. O 3. Also cover injuries to the insured's family members. O 4. Are deducted from the liability limit.

By their members - authorized insurers

How are state Insurance Guaranty Associations funded? (Choose from the following options) O1. By the Department of Insurance O 2. By NAIC O 3. By the Government O 4. By their members - authorized insurers

The average amount of insurance during construction

How much is the premium for the dwelling under construction endorsement under the dwelling policy? a) 75% of the gross premium b) The full value of the house c) 50% of the actual value premium d) The average amount of insurance during construction

120 days.

If a person has been found liable for a civil penalty in a hearing, that ruling can be entered as a judgment and enforced after 45 days. 60 days. 90 days. 120 days.

Physical damage.

If a person is using an auto with the belief that he is entitled to do so, subrogation rights under a personal auto policy would apply to all coverages EXCEPT (Choose from the following options) O 1. Physical damage. O 2. Uninsured motorist. O 3. No-fault medical payments. O 4. Liability.

After 1 year of the revocation

If an individual's license has been revoked, how soon can he or she obtain a new license? a) Never; once revoked, the license cannot be reinstated b) After 1 year of the revocation c) Within 12 months, based on the original violation d) After 60 days of the revocation

First named insured

In a commercial package policy, who may cancel the policy in writing and make changes to the policy with the consent of the insurer? a) Beneficiary b) Insurer c) First named insured d) Last named insured

4. It must be added as a supplement or written as a separate policy.

In a dwelling policy, which of the following is true regarding personal liability coverage? (Choose from the following options) O 1. It does not cover medical payments to others. O 2. It is included in all dwelling policies. O 3. It is the same as in homeowners policies. O 4. It must be added as a supplement or written as a separate policy.

Replacement cost at the time of the loss, less depreciation

In property insurance, actual cash value is defined as which of the following? a) The actual amount of a loss payable, less the policy deductible b) Replacement cost at the time of the loss, less depreciation c) Market value of the property at the time of the loss d) Stated value of the property as shown on the declaration

Public school aides. Public school aides are excluded from the required workers compensation coverage. All the other types of employees listed must be covered by the employer's workers compensation insurance.

In this state, all of the following employees must be covered by the employer's workers compensation insurance EXCEPT a) Full-time domestic workers. b) Public school aides. c) Workers of a nonprofit organization. d) State employees.

Agreed value

In which of the following types of property valuation will the policy pay the full value as specified on the policy schedule, regardless of the insured property's appreciation or depreciation? a) Replacement cost b) Stated amount c) Market value d) Agreed value

The cause of loss insured against.

Peril is most easily defined as (Choose from the following options) O 1. Something that increases the chance of loss. O 2. The cause of loss insured against. O 3. An unhealthy attitude about safety. O 4. The chance of a loss occurring.

Errors and omissions.

Professional liability coverage protects the insured against legal liability resulting from (Choose from the following options) 01. Dishonest acts. O 2. The unprofessional conduct of an employee. O 3. Errors and omissions. O 4. Liability assumed under a contract.

It does not protect the individual owner from loss to personal property owned exclusively by the unit owner.

The Residential Condominium Building Association Policy (RCBAP) is used for residential condominium building associations to cover the entire building under one policy. Which of the following statements about RCBAP is true? a) This policy form is not approved for use in the states of New York or New Jersey. b) It does not protect the individual owner from loss to personal property owned exclusively by the unit owner. c) It provides limited coverage for personal property owned exclusively by the unit owner. d) It is designed to provide exclusive coverage for the individual owner and provides not coverage for the unit owner.

3 years.

The Superintendent can examine an authorized fraternal benefit society and property/casualty insurance company once every a) 12 months. b) 18 months. c) 3 years. d) 5 years.

The method of transferring the owner's rights.

The cancellation provision in a businessowners policy specifies all of the following EXCEPT (Choose from the following options) O1. The method of refund of unearned premiums. O 2. The insured's cancellation requirements. O 3. The insurance company's cancellation requirements. O 4. The method of transferring the owner's rights.

The limited liability company is designated as the named insured.

The members of a limited liability company are insureds under a businessowners policy (BOP) if a) A single individual member of the limited liability company is listed as the named insured. b) Members of a limited liability company cannot be insureds under a BOP. c) The limited liability company is designated as the named insured. d) Each individual is listed as a named insured on the policy.

The date when injury or damage occurs

The occurrence form trigger is based on which of the following? a) The amount of the insured's deductible b) The number of claims made during the policy period c) The date when injury or damage occurs d) The place where the injury or damage occurs

$10.000 in any 12-month period.

The pollutant cleanup and removal coverage in the businessowners policy has a limit of (Choose from the following options) O 1. $2,500 in any 12-month period. O 2. $5,000 in any 6-month period. O 3. $20,000 in any 6-month period. O 4. $10.000 in any 12-month period.

Abandonment.

The property condition that precludes the insured from simply turning over damaged property to the insurer and claiming a total loss is called a) Arbitration. b) Abandonment. c) Assignment. d) Appraisal.

Occupational disease.

The type of an illness resulting from the nature of the employment and contracted while performing certain types of work for the employer is called an a) Employment injury. b) Occupational disease. c) Employer liability. d) Occupational hazard.

MCS-90

To comply with requirements for insurance for public liability under the Motor Carrier Act of 1980, which endorsement is added to motor carrier coverage form? (Choose from the following options) O 1. Garage O 2. MCS-70 O 3. MCS-90 O 4. MCS-80

Bodily injury.

Under farm liability, Coverage H includes a) Bodily injury. b) Loss of use. c) Medical payments. d) Other farm structures.

2 weeks.

Under the additional living expenses coverage, if a civil authority prohibits the insured from using the dwelling because of direct damage to a neighboring location from a peril covered in the insured's policy, loss would be covered for up to (Choose from the following options) O 1. 2 weeks. O 2.1 month. 0 3.90 days. 0 4.1 week.

10% of Coverage A

What is the amount of coverage that would be available for a detached garage under the Coverage B - Other Structures of a homeowners policy? a) No coverage b) 10% of Coverage A c) 20% of Coverage A d) A flat amount listed in the policy Declarations

$10.000 for all expenses incurred during a 12-month period

What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine policy? (Choose from the following options) O1. $15,000 all expenses incurred during a 12-month period O 2. $20.000 all expenses incurred during a 12-month period O 3. $5,000 for all expenses incurred during a 12-month period O 4. $10.000 for all expenses incurred during a 12-month period

Bid bond

What type of bond guarantees that a construction contractor will enter into a contract at a set price? a) Payment bond b) Maintenance bond c) Bid bond d) Performance bond

Liability

What type of coverage does a homeowners policy include that a dwelling policy does not? a) Personal property b) Other structures c) Broad form d) Liability

Absolute

What type of liability would a person who owns wild animals have? a) Implied b) Direct c) Absolute d) Vicarious

The insurer pays the mortgagee according to the mortgagee's interest in the property. The standard mortgage clause ensures that benefits will go to the insured and the mortgagee as their interest appears in the event of a loss to real property.

What will happen if a house covered by a standard mortgage clause is a total loss? a) The mortgagee receives the full benefit and passes the insured's share to the insured. b) The insurer pays the mortgagee according to the mortgagee's interest in the property. c) The mortgagee retains no rights to any contracts involving the policy. d) The insured receives the full benefit and passes the mortgagee's share to the mortgagee.

The excess over the self-insured retention.

When an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays a) A percentage of the loss as described on the declarations. b) The excess over the self-insured retention. c) The amount specified in the policy under the additional coverage provisions. d) The amount in excess of the policy's limits of liability.

Hired and nonowned auto liability

Which endorsement adds coverage for employee use of automobiles in the insured's business land the insured's use of rented autos if no coverage is provided on a business auto policy? (Choose from the following options) O 1. Substitute auto liability O 2. Newly acquired auto exposure liability O 3. Additional insured O 4. Hired and nonowned auto liability

Bailee's customer policy

Which inland marine form would provide the best protection for a dry cleaning company against loss or damage to their customer's property while in the care, custody, and control of the dry cleaners? (Choose from the following options) O 1. Bailee's customer policy O 2. Furriers block policy O 3. Personal property coverage part O 4 Vendor's single interest policy

Express and implied

Which of the following are the authorities that an agent can hold? a) Primary and secondary b) Express and implied c) Apparent and allowed d) Authorized and admitted

An oriental rug in an on-premises apartment

Which of the following could be covered by an HO policy? (Choose from the following options) 01. A sports car kept in an attached garage O 2. Property of a tenant not related to the insured O 3. An oriental rug in an on-premises apartment O4. Birds, fish, and animals

Medical payment to others Medical payment to others is automatically included in Section II of all HO policies.

Which of the following coverages is included in an unendorsed homeowners policy? a) Earthquake b) Medical payment to others c) Personal property replacement coverage d) Fungi, wet or dry rot, or bacteria

Negligence that leads to an injury

Which of the following does the term proximate cause refer to? a) Injury that leads to monetary compensation b) Duty of the defendant to act c) Reason for filing a lawsuit d) Negligence that leads to an injury

Insurance Guaranty Association

Which of the following entities protects policyowners, insureds, and beneficiaries under insurance contracts when insurers fail to perform contractual obligations due to financial impairment? a) Insurance Solvency Association b) Consumer Protection Agency c) Insurance Guaranty Association d) Insurance Consumer Protectorate

Unintentional acts arising from the operation of a farming business

Which of the following exposures is insured under Coverage I - Personal and Advertising Injury Liability? a) Statements made by an insured during their farm radio show b) Breach of a written contract c) Unintentional acts arising from the operation of a farming business d) Failure of goods to perform

Permitted incidental occupancies

Which of the following homeowners endorsements covers liability exposures arising from an incidental business conducted within a building on the residence premises? a) Business income - report of values b) Permitted incidental occupancies c) Special limit of liability d) Professional liability

The application given to a prospective insured Consideration is something of value that is transferred between the two parties to form a legal contract.

Which of the following is NOT the consideration in a policy? a) The application given to a prospective insured b) Something of value exchanged between parties c) The premium amount paid at the time of application d) The promise to pay covered losses

Loss of electronic data is excluded under a business liability policy.

Which of the following is TRUE regarding business liability and medical payments coverage? a) Mobile equipment may be covered, as long as it is attached to an insured auto. b) Loss of electronic data is excluded under a business liability policy. c) Liability arising from alcohol intoxication is only covered for alcohol distributors. d) Nonowned watercraft less than 60 feet long are covered.

Automatic sprinkler system

Which of the following is an example of a protective safeguard in a commercial package policy? a) Recordkeeping b) Professional liability endorsement c) Automatic sprinkler system d) Errors and omissions insurance

It cannot exclude newborn children from coverage.

Which of the following is correct about a group health insurance policy issued in New York? (Choose from the following options) O1. It cannot exclude coverage for VA hospital treatment. O 2. It cannot provide coverage for handicapped children. O 3. It cannot exclude coverage from an occupational accident. O 4. It cannot exclude newborn children from coverage.

(Incurred losses + loss adjusting expense)/earned premium

Which of the following is the correct formula for computing a loss ratio? (Choose from the following options) O 1. Loss adjusting expenses - incurred expenses O 2. (Incurred losses + loss adjusting expense)/earned premium O 3. (Incurred expenses + loss adjusting expenses)/earned premium O 4. (Incurred losses - loss adjusting expense)/earned premium

An applicant who owns and lives on a commercial farm

Which of the following risks would NOT be eligible for coverage under a homeowners policy? (Choose from the following options) O 1. An applicant who owns and lives in a single-family dwelling that also contains incidental business activities O 2. An applicant who owns and lives on a commercial farm O 3. An applicant who lives in a duplex that she does not own O 4. An applicant who owns and lives in a duplex

Coverage A is for all-risk perils, and Coverage C is for the broad form perils. The all-risk coverage applies to property insured under Coverages A and B only.

Which of the following statements is true concerning the special form dwelling policy? a) Coverage A is for all-risk perils, and Coverage C is for the broad form perils. b) Both Coverage A and Coverage C are provided on an all-risk basis. c) Both Coverage A and Coverage C are provided for the broad form perils. d) Coverage A is for all-risk perils, and Coverage C is for basic perils only.

Coverage applies only to the extent that the underinsured motorist limits exceed the bodily injury limits carried by the operator of the other vehicle.

Which of the following statements is true concerning underinsured motorist coverage under a personal auto policy? (Choose from the following options) O 1. It will pay up to the limits of insurance for any loss which involves an underinsured driver. O 2. Limits must equal the bodily injury limits of the policy. O 3. Limits may differ from the limits for uninsured motorist coverage. O 4. Coverage applies only to the extent that the underinsured motorist limits exceed the bodily injury limits carried by the operator of the other vehicle.

Apparent

Which of the following types of agent authority is also called "perceived authority"? (Choose from the following options) O1. Fiduciary O 2. Apparent O 3. Express O 4. Implied

$100 of payroll.

Workers compensation rating is developed by applying a rating bureau job classification rate to each a) $500 of payroll. b) $1,000 of payroll. c) $100 of payroll. d) $250 of payroll.

Second injury funds programs.

Workers compensation statutes require employers to meet capital reserves requirements sufficient to pay any claims that might arise. Employers can meet such obligations through all of the following EXCEPT (Choose from the following options) O1. Assigned risk plans. O 2. Competitive state funds. O 3. Second injury funds programs. O 4. Self-insurance plans.