Study

Workers compensation rating is developed by applying a rating bureau job classification rate to each

$100 payroll

maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act

$2,500

any item can be considered an illegal inducement if it is worth more than

$25

The necessary proof of loss claim is submitted to an insurer. Assuming the claim is complete, how long does the insurer have to pay the claim without additional interest?

30 days

volcanic activities would be considered part of one occurrence

72 hrs

sole proprietor

A business owned by one person, NOT MULTIPLE PEOPLE

A builder's risk form is most often written as

Certificate of authority

An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable.

Conditional

compensatory damages will pay for pain and suffering and disfigurement

General

used by individual business owners who use company vehicles for personal use rather than purchasing a personal vehicle

Individual named insured

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

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

Obligee

One to whom an obligation is owed.

homeowners endorsements covers liability exposures arising from an incidental business conducted within a building on the residence premises

Permitted incidental occupancies

Who are the parties to a bond?

Principal, Obligee, Surety

participants of a Write Your Own (WYO) flood insurance program

Private insurers that write and service National Flood Insurance policies on a no risk-bearing basis

damages may be awarded by the court to create disincentives that discourage behavior that is deemed highly undesirable by society

Punitive

inland marine coverage condition states that payment of any claim will not reduce the limit of insurance, except in case of a total loss on a scheduled item

Reinstatement of limit

the insurer's claim settlement options does not include

Replacing the property with other property of a lesser kind or quality.

Property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called

Specific coverage.

which of the following is NOT a factor in determining a loss under a dwelling policy

The amount negotiated by the insured

the premium for the dwelling under construction endorsement

The average amount of insurance during construction

occurrence form trigger is based on

The date when injury or damage occurs

Negligence is defined as

The failure to do what a reasonable prudent person would do under given circumstances.

Who is the loss payable on the insured's homeowners policy, under the standard mortgage clause

The loss is payable to the insured and the mortgagee.

business auto coverage form, mobile equipment is covered for liability insurance

When being carried or towed by a covered auto

when a farm structure is vacant for 120 days

contents are reduced by 50%.

Umbrella policy doesn't cover

errors and omissions

Surety

guarantees the obligation will be performed

Insuring agreement

provides information on the policy's coverages. Not a part of policy's conditions

a hired and nonowned auto liability endorsement is available in a businessowners policy (BOP) when

the insured does not have commercial auto coverage

principal

the party that undertakes the obligation

A commercial auto coverage form that is designed for insureds engaged in the business of transporting goods for others is a

truckers coverage form