test

Alexander has covered a home he has inherited under a DP-1 form with the EC perils included. The home is situated on property that has been passed down in Alexander's family for generations and there is a fairly large family cemetery on the property. How much coverage would Alexander have under Coverage B of his policy, to cover the grave markers and mausoleums in his family cemetery? Answer Choices:Select the Correct Answer$0.$5,000.$1,000.$2,000.

$0

Under the Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA), the maximum limit (cap) for claims paid by either private insurers or the government in a single program year is: Answer Choices:Select the Correct Answer$50 million.$100 million.$75 billion.$100 billion.

$100 billion

An insured has been sued for $200,000 for an automobile accident which occurred in West Virginia. He has liability limits of $500,000 under an auto policy written on a single limits basis. It is determined that the plaintiff is 30% negligent. How much will the defendant's insurance carrier pay under the new modified comparative negligence rule? Answer Choices:Select the Correct Answer$140,000 and the insured's cost to defend.$200,000 and the insured's cost to defend.Nothing, the other person is also at-fault.Both parties pay equally.

$140,000 and the insured's cost to defend

Coverage C of the Homeowners forms provides which of the following amounts for business personal property? Answer Choices:Select the Correct Answer$2,500 on and off the premises.$2,500 off the premises and $500 on the premises.$2,500 on the premises and $1,500 off the premises.$2,500 anywhere in the world.

$2,500 on the premises and $1,500 off the premises

The annual agency license renewal fee in West Virginia is: Answer Choices:Select the Correct Answer$200.$100.$50.$25.

$200

In West Virginia, uninsured motorist coverage may exclude the first ______ property damage resulting from the negligence of an uninsured motorist. 500..300..200..100

$300

Lawrence's business is covered by a Business Auto policy and carries the required liability limit for his state of $30,000 for bodily injury to all persons. Lawrence drives the truck to another state where the financial responsibility limit is $50,000 for bodily injury to all persons. While in the other state, Lawrence has an at-fault accident and injures 3 people who sue for $60,000 in total damages. How much will Lawrence's Business Auto policy pay on this claim? Answer Choices:Select the Correct Answer$30,000.$60,000.$20,000.$50,000.

$50,000

Under a Personal Articles Floater, a pair of antique salt and pepper shakers is insured for $1,000. When one of the shakers is broken, the remaining shaker is worth only $200. How much will the insured receive for the loss without taking into account the deductible? Answer Choices:Select the Correct Answer$1,000.$800.$500.$200.

$800

How many continuing education credit hours in excess of the required number of hours may be carried over into the next reporting period by an agent or producer in West Virginia? Answer Choices:Select the Correct Answer246012

6

The "Business Income" additional coverage of the standard Businessowners policy provides coverage for "ordinary payroll coverage" for: Answer Choices:Select the Correct Answer30 days unless the insured selects and schedules a different amount.60 days unless the insured selects and schedules a different amount.For 12 months in total.Until the employees can find other employment.

60 days unless the insured selects and schedules a different amount

A contractor in need of a bid bond to obtain a contract is an example of a(n): Answer Choices:Select the Correct AnswerPrincipal.Obligee.Surety.Fiduciary.

A contractor needing a bid bond would be the principal. The bond company is the guarantor and the owner (who receives the benefit of the bond) would be the obligee.

Which of the following would NOT be eligible for coverage under an unendorsed standard Homeowners policy? Answer Choices:Select the Correct AnswerA home under construction.A mobile home.A condominium unit owner.A renter living in a residential building.

A mobile home.

Coverage under the Builders' Risk form is written for: Answer Choices:Select the Correct Answer90-day increments that follows the construction of the building.A period of one year.Construction jobs that will take up to one year to complete.Contractors who are considered to be high risk because of a large number of claims submitted against them in the previous year.

A period of one year

All of the following are included in the definition of "mobile equipment" in a Commercial General Liability policy, EXCEPT: Answer Choices:Select the Correct AnswerA vehicle with a permanently attached air compressor.Forklift.A snow blowing machine.A truck with a cherry picker attached.

A snow blowing machine

Which of the following is NOT an uninsured vehicle as defined by Part C of the personal automobile policy? Answer Choices:Select the Correct AnswerA vehicle owned or operated by a governmental unit or agency.A vehicle that is not covered by liability insurance at the time of the accident.A vehicle driven by a hit-and-run driver that strikes the insured or a family member while driving the insured vehicle.A vehicle covered for liability insurance with a company that has become insolvent.

A vehicle owned or operated by a governmental unit or agency

A power surge sparks a small electrical fire in an office building. The electrical fire triggers the automatic sprinkler system and the water from the sprinklers, soaks the carpet and shorts-out all the computers, causing thousands of dollars in damage. The office must close for two months during repairs. The cost of renting a temporary office space while the physical damage to the office building is repaired is considered: Answer Choices:Select the Correct AnswerAn indirect loss.A physical loss.A direct loss.An occurrence.

An indirect loss

Under the BOP Part III - Conditions section, all of the following would be considered unoccupied, EXCEPT: Answer Choices:Select the Correct AnswerA 100-unit apartment building of which 70 units are not rented.An office building containing two empty units and these two empty suites represent 25% of the total floor space.A mercantile building with a print shop on the ground floor but the second and third floors are not being utilized.A new building with 8,000 square feet of floor area and 5,200 square feet is not being used.

An office building containing two empty units and these two empty suites represent 25% of the total floor space.

Personal Automobile policies use which of the following alternative dispute methods when the insured and the insurance company cannot agree on the amount to be paid by the uninsured or underinsured motorist coverage? Answer Choices:Select the Correct AnswerSubrogation.Mediation.Arbitration.Litigation.

Arbitration

Alec goes to an amusement park and rides a roller coaster that was designed to flip the riders upside down. Alec is taller than the average person so when the roller coaster flips, he hits his head on the safety bar. After receiving medical care, Alec files a claim against the amusement park, seeking payment for his medical bills, pain and suffering. What defense against negligence would the amusement park most likely use to deny this claim? Answer Choices:Select the Correct AnswerAssumption of risk.Contributory negligence.Comparative negligence.Intervening cause.

Assumption of risk

A structure made of modified fire resistive materials has a fire resistive rating of: Answer Choices:Select the Correct AnswerAt least 3 hours.At least 1/2 hour.At least 1 hour.At least 2 hours.

At least 1 hour

All of the following are characteristics of a principal that a surety will scrutinize during the underwriting process

Consideration is NOT one of the characteristics a surety would look for in a principal during the underwriting process. Capability, character, and capital ARE characteristics a surety will be looking for in a principal.

Which of the following fidelity bonds guarantees both the honesty and faithful performance of the principal? Answer Choices:Select the Correct AnswerCoverage form O.Standard form #25.Standard form #23.Standard form #24.

Coverage form O

Which of the following is NOT true concerning the Terrorism Risk Insurance Program Reauthorization Act of 2015? Answer Choices:Select the Correct AnswerCoverage is mandatory.The insured can reject the coverage.It is an agreement between insurers and the United States government to provide coverage.Must be certified as an act of terrorism by the Secretary of Treasury in concurrence with the Secretary of Homeland Security and the US Attorney General.

Coverage is mandatory

Which of the following dwelling forms provides broad perils coverage for personal property? Answer Choices:Select the Correct AnswerDP-2 and DP-3 onlyDP-1, DP-2, and DP-3DP-3 onlyDP-2 only

DP-2 and DP-3 only

Two persons are involved in an auto accident on a West Virginia highway. Each person is 50% liable for damages to the other person. What amount of damages will each collect? Answer Choices:Select the Correct AnswerNeither will paid for their damages.Each person will collect half of their damagesOnly one party will pay the full amount for damages.Both will collect the total amount of their respective damages.

Each person will collect half of their damages

Bill may be negligent if he: Answer Choices:Select the Correct AnswerFails to do what a reasonably prudent person would do in the same circumstance.Injures another person even though he acted prudently.Commits a deliberate act with the intent to injure another person.Hires a nefarious person to deliberately damage the property of another person.

Fails to do what a reasonably prudent person would do in the same circumstance

A lawyer is covered under a standard "Lawyers Professional Liability" form. All of the following situations would be covered by her policy, EXCEPT: Answer Choices:Select the Correct AnswerHer fiduciary activities as an executor of an estate.Her activities as a guardian to two young children whose parents have died.Her activities in preparing a will and a trust for a client.Her fiduciary activities as an administrator of a corporate employee-benefits plan.

Her fiduciary activities as an administrator of a corporate employee-benefits plan

Coverage B of the Commercial General Liability policy will not cover claims involving the insured's distribution of material or information that violates any of the following statues, EXCEPT: Answer Choices:Select the Correct AnswerThe Telephone Consumer Protection Act (TCPA).The CAN-SPAM Act of 2003.Insurance Fraud and False Statements (18 USC 1033; 1034).The Fair Credit Reporting Act.

Insurance Fraud and False Statements (18 USC 1033; 1034)..

The Watercraft Endorsement to the Homeowners policy provides: Answer Choices:Select the Correct AnswerWorkers Compensation coverage for the crew of a scheduled sailing vessel.Watercraft Physical Damage coverage.Liability and Medical Payments coverage that would otherwise be excluded under the Homeowners policy.Coverage for small canoes and kayaks.

Liability and Medical Payments coverage that would otherwise be excluded under the Homeowners policy

Third-party provisions allow for an entity that lends money to an insured to purchase property, to be named on the insurance for that property. In property insurance, this is known as a "standard mortgage clause." In auto insurance, it is known as: Answer Choices:Select the Correct AnswerLoss payable clause.Lender's clause.Full coverage.Reimbursement clause.

Loss payable clause

A person takes bank deposits to the bank every day for a business. In Commercial Crime insurance terminology, this person is known as a: Answer Choices:Select the Correct AnswerMessenger.Custodian.Cashier.Manager.

Messenger

The DP-3 standard Dwelling form provides: Answer Choices:Select the Correct AnswerOpen peril coverage on the dwelling and other structures and broad form peril coverage on contents.Broad form peril coverage on buildings and contents.Basic peril coverage only.Fire, lightning, extended coverage and vandalism & malicious mischief coverage only.

Open peril coverage on the dwelling and other structures and broad form peril coverage on contents..

Which part of a Workers Compensation & Employers Liability policy provides automatic coverage for workers in states not specifically listed on the information page of the policy for Part One coverage? Part Two.Part Three.Part Four.Part Five.

Part Three

Parmelia is covered under two separate standardized Personal Automobile policies, with Part C limits under both policies set at $200,000. Parmelia is involved in an accident with an uninsured motorist and she sustains bodily injury damages for $262,320. How much will Parmelia receive when she submits a claim for these damages? $262,320.$200,000.$400,000. It depends Permelia's percentage of fault in the accident.

Permelia will receive $200,000, because Part C does not permit the stacking of limits. She will only collect the highest limit of a single policy for uninsured motorists coverage.

While repairing a stairway for a customer, an employee of Mike's Construction Company accidentally drops a hammer and injures someone walking by. This situation falls under which exposure of Mike's Commercial General Liability policy? Answer Choices:Select the Correct AnswerPremises & Operations.Products & Completed Operations.Contractual Liability.Independent Contractors Legal Liability.

Premises & Operations

Which of the following coverages would NOT be included in the liability section of the Businessowners policy? Answer Choices:Select the Correct AnswerBodily injury liability.Professional liability.Personal and advertising injury liability.Medical expense.

Professional liability

Which of the following statements regarding the supplementary payments of Section II of the standard Businessowners policy is NOT correct? Answer Choices:Select the Correct AnswerSupplementary payments do not reduce the policy limit.Supplementary payments cover up to $250 for the cost of bail bonds.Supplementary payments do not cover expenses that the insurance company incurs.Supplementary payments cover costs the insured is required to pay because of a lawsuit.

Supplementary payments do not cover expenses that the insurance company incurs..

A road construction contractor has mobile equipment that is used in his business. The state has changed the law and now requires some of the equipment to carry liability insurance to comply with the financial responsibility laws of the state. What symbol will the insurance company use to add these items to the insured's commercial auto policy? Answer Choices:Select the Correct AnswerSymbol 1.Symbols 8 and 9.Symbol 7.Symbol 19.

Symbol 19

Which of the following statements is TRUE regarding the auto dealers' physical damage coverage under the Garage policy? Answer Choices:Select the Correct AnswerThe coverage is provided by a blanket limit for covered autos.The coverage extends to customers' autos.Coverage is excluded if the vehicles in inventory are driven or transported more than 25 miles from the point of purchase or distribution.The coverage sets a maximum limit per auto.

The coverage is provided by a blanket limit for covered autos

Which of the following statements is NOT TRUE of the Builders' Risk coverage form? Answer Choices:Select the Correct AnswerThe form settles all losses at actual cash value.The form allows for vacancy of 60 days before coverage will no longer apply.The form does not include a coinsurance clause.Coverage under this form is written for a period of one year.

The form allows for vacancy of 60 days before coverage will no longer apply

Which of the following property insurance cause of loss forms provides coverage for all risks of loss? Answer Choices:Select the Correct AnswerThe broad form.The special form.The reporting form.The basic form.

The special form

All of the following are situations where a Commercial Umbrella policy would be triggered to provide coverage, EXCEPT: Answer Choices:Select the Correct AnswerThe policy limits of the underlying liability policy have been exhausted.To pay a loss that is excluded by the underlying liability policy, but not excluded by the Commercial Umbrella policy.Payment on previous losses by the underlying liability policy has reduced its aggregate limit so that a subsequent loss is not fully covered.The underlying liability policy limits are sufficient to pay the entire claim.

The underlying liability policy limits are sufficient to pay the entire claim

Jerry's car is involved in an accident that has left him without a vehicle to drive. How much, if any, can he collect for his transportation expenses under Part D of his policy?

Transportation expenses are an additional coverage if the insured has purchased collision and/or other than collision coverage. $20 per day up to $600 is available. Coverage begins 48 hours after a theft loss and 24 hours for any other covered loss

An insurance company that permits different rate classifications for individuals of the same class and same hazard may be guilty of: Answer Choices:Select the Correct AnswerBoycotting.Misrepresentation.Unfair discrimination.Defamation.

Unfair discrimination

Emily owns a home that she has covered under a Homeowners policy. Because Emily lives alone, she had to leave her home and stay with her parents for the past six months while she recovers from major surgery. Except for the day-to-day items that Emily needs while she stays at her parents' home, all of her other belongings are still located in her home. Which of the following best describes the condition of Emily's home? Answer Choices:Select the Correct AnswerDeserted.Unoccupied.Vacant.Empty.

Unoccupied

If an insured intentionally conceals a material fact on an application for insurance, the coverage may be: Answer Choices:Select the Correct AnswerVoided.Suspended.Reduced.Restricted.

Voided

A non-admitted insurance company that insures property in West Virginia must: Answer Choices:Select the Correct AnswerWrite coverage through an excess lines broker.Pay premium taxes directly to the state of West Virginia.Become licensed before any claims are filed.Become a member of the West Virginia Insurance Guaranty Association.

Write coverage through an excess lines broker.

Which of the following Equipment Breakdown coverages applies to direct damage to covered property located at a premises described in the Declarations? Answer Choices:Select the Correct AnswerExpediting expense coverage.Business income with extra expense coverage.Spoilage damage coverage.Property damage coverage.

Property damage coverage..

Which of the following statements is TRUE regarding Commercial Property coverage? Commercial property coverage can only as part of a package policy. Commercial property coverage can only be written as a monoline policy. Commercial property coverage can be written as both a monoline policy and as part of a package policy. Commercial property coverage can only be written if a separate liability policy is attached to it.

Commercial property coverage can be written as both a monoline policy and as part of a package policy.

The insured's business is covered under a jewelers block policy. The owner's wife decides to wear an expensive piece of jewelry to a party that is for sale by the business. In case of a loss, how will the insurer handle the claim? Answer Choices:Select the Correct AnswerDeny the claim because of an exclusion.Pay the claim.Pay 50% of the claim.Require evidence that she was modeling the jewelry.

Deny the claim because of an exclusion

Martika is covered under an unendorsed, standard HO-3 policy and suffers a loss to an awning that covers her deck. The cost to purchase a new awning is $900, however the awning can be repaired for $300. The actual cash value of the awning is $750. Which of the following statements is correct regarding how this claim will be settled with the insurance company? Answer Choices:Select the Correct AnswerThe loss will be settled at $750.The loss will be settled at $300.The loss will be settled at $900.The loss will be settled at $0, because awnings are not covered under an HO-3 policy.

The loss will be settled at $300.

The penalty for any WV licensee unintentionally engaging in any unfair method of competition is ____ per act not to exceed ____ in the aggregate. $500 / $5,000$1,000 / $5,000$1,000 / $10,000$1,000 / $50,000

$1,000 / $10,000

An insured has primary CGL coverage with two insurers. Insurer 1 has a policy limit of $35,000 and Insurer 2 has a policy limit of $40,000. Both policies permit settlement using contribution by equal shares. If a $60,000 covered loss occurred, how much would Insurer 1 pay? Answer Choices:Select the Correct Answer$40,000.$35,000.$30,000.$25,000.

$30,000

The "triggering event threshold" for the Terrorism Risk Insurance Act of 2002 was: Answer Choices:Select the Correct Answer$5 million.$5 billion.$10 million.$10 billion.

$5 million

According to the Gramm-Leach-Bliley Act, Binders Keepers Insurance, Inc., who shares nonpublic private financial information with third parties, must provide their customers with all of the following, EXCEPT: An "opt-out" notice that explains to the customer that they have the right to prevent the insurance company from sharing their nonpublic personal financial information with third parties.An "annual notice" of its full privacy policies for as long as the customer relationship lasts.An "initial notice" of its privacy policies at the time the "customer relationship" is established.A "short-form" notice each time an insurance transaction is conducted with the customer.

A "short-form" notice each time an insurance transaction is conducted with the customer.

Which of the following is included in the definition of "farming" on a Farm Liability policy? Answer Choices:Select the Correct AnswerA roadside stand on the farm premises that sells products from that farm as well as pies made by the neighboring farmer.A retail shop on the farm premises that sells both processed and unprocessed products farm products.A roadside stand that sells unprocessed farm products produced by the farmer selling them on the farm premises.A retail shop on the farm premises that sells cobbler made with peaches grown on the farm as well as cookbooks containing the cobbler recipes.

A roadside stand that sells unprocessed farm products produced by the farmer selling them on the farm premises

Loss to insured property caused by self-propelled missiles is covered under which of the following perils of the Homeowners form? Answer Choices:Select the Correct AnswerWindstormRiotAircraftVandalism

Aircraft

All of the following are included in the definition of "fungus" under the "Limited Coverage for Fungus, Wet Rot, Dry Rot, and Bacteria additional coverage of the Commercial Property cause of loss forms, EXCEPT: Answer Choices:Select the Correct AnswerMold.Scents produced by fungi.Algae.Spores.

Algae..

To obtain an insurance agent, producer, or adjuster license, an applicant must be: Answer Choices:Select the Correct AnswerAt least 25 years of age.At least 21 years of age.At least 18 years of age.At least 16 years of age.

At least 18 years of age

A married couple have applied to a mortgage company for a mortgage loan. The loan officer told them everything was in order and the loan would be processed pending the purchase of insurance to cover the loan from a certain insurance agent. When the borrowers stated they would prefer to purchase the insurance through their own agent, the loan officer indicated they would not be able to borrow as much as they needed. Under West Virginia state law, the mortgage company is violating which Unfair Trade Practice? Answer Choices:Select the Correct AnswerCoercion.Rebating.Unfair Discrimination.There is no violation.

Coercion

The most comprehensive coverage provided by the Dwelling forms is found on the: Answer Choices:Select the Correct AnswerDP-3.DP-1.DP-2.DP-4.

DP-3

Morton's Millinery is covered by a Commercial Property policy with a broad cause of loss form attached. Morton's closes up their covered building for a long holiday break. When they return, a loss has occurred. Which of the following loss scenarios would NOT be covered? Answer Choices:Select the Correct AnswerOver the holiday break a heavy snowstorm occurred and the weight of that snow caused the roof to collapse.Water damage has occurred from a cracked water heater that allowed the water to escape and damage the floors of the building.Damage caused by frozen pipes that burst and leaked for several days while the business was closed for the holiday break because Morton turned the building thermostat very low to save on heating costs.Damage from water that had been seeping from an automatic sprinkler system behind the walls of the building for several weeks before and during the holiday break.

Damage caused by frozen pipes that burst and leaked for several days while the business was closed for the holiday break because Morton turned the building thermostat very low to save on heating costs.

Which of the following statements is TRUE concerning a Commercial Package policy? Answer Choices:Select the Correct AnswerThe premium rates for each coverage part are combined to determine the total premium rate charged for the package policy.It can never be written on a continuous basis.It can be written for a specific policy term not to exceed three years.Modification factors are applied when the package policy only covers property insurance.

It can be written for a specific policy term not to exceed three years

Ronnie is a West Virginia insurance professional who is offering advice to Ava by providing her with insurance policy options and describing the benefits that will fit her needs. According to the West Virginia insurance code, Ronnie is engaged in: Answer Choices:Select the Correct AnswerSelling insurance.Soliciting insurance.Placing insurance.Negotiating insurance.

Negotiating insurance

West Virginia statutes amend the appraisal condition of the standardized Homeowners policies to: Answer Choices:Select the Correct AnswerAllow only the insured to make a written demand for appraisal.Permit only the insurer to make a written demand for appraisal.Require all demands for appraisal be heard in a hearing by the Insurance Commissioner.Permit a written demand for appraisal from either the insured or the insurer be made for an appraisal to move forward.

Permit a written demand for appraisal from either the insured or the insurer be made for an appraisal to move forward

Which of the following lost or damaged property is NOT covered when the Actual Cash Value endorsement is attached to an Equipment Breakdown policy? Answer Choices:Select the Correct AnswerProperty of others.Property of the insured.Property that has reached obsolescence.Explosion occurring from within a covered steam boiler.

Property that has reached obsolescence

Sebastian puts a roast in the oven and decides to go to the movies, thinking that he has plenty of time before roast will be fully cooked. After the movie, he is caught behind a car accident and it takes him several hours to get home. When Sebastian finally arrives home, the roast is completely blackened and the contents of his home are thoroughly covered in soot from the smoke. Which of the following statements is true regarding how this claim would be handled under a Homeowners policy? Answer Choices:Select the Correct AnswerThe loss would be covered under the peril of fire.The loss would not covered because the peril of smoke is excluded.The loss would be covered under the peril of smoke.The smoke was not caused by an unfriendly fire and therefore, the loss is excluded.

The loss would be covered under the peril of smoke..

The West Virginia Assigned Risk Plan, known as the "West Virginia Automobile Insurance Plan" classifies applicants for coverage as "substandard risks" for all of the following reasons, EXCEPT: Answer Choices:Select the Correct AnswerThey own a much older vehicle.They have a record of several traffic accidents.They have received several citations for speeding.They have an undesirable occupational circumstance in terms of the risk.

They own a much older vehicle

All of the following would be excluded by the basic cause of loss form under a Commercial Property policy, EXCEPT: Answer Choices:Select the Correct AnswerDamage caused to the covered buildings electrical system by a power surge.A water pipe that bursts and damages the interior of the building.Water leaks from the sprinkler system in the building, causing wall and floor damage.Damage to flooring that occurs when water seeps from the dishwasher in the corporate kitchen for several months.

Water leaks from the sprinkler system in the building, causing wall and floor damage.

Under what circumstances does an insurer allow the transfer of an insured's rights and duties under a Commercial Package Policy without the permission of the insurer? Answer Choices:Select the Correct AnswerWhen the named insured dies.When the named insured is in the hospital.When the named insured is out of the United States.When the named insured is informed of a terminal illness.

When the named insured dies

Which of the following types of property can NOT be covered under a Commercial Inland Marine form? Answer Choices:Select the Correct AnswerProperty being held by a bailee.Property with an element of portability.Property that travels between different locations.Property being manufactured and shipped to Europe for sale.

Property being manufactured and shipped to Europe for sale

The Conditions of the Commercial Crime policy require an insured to provide a sworn proof of loss statement to the insurance company: Within 30 days after the insured has reason to believe there was a loss.Within 120 days after the insured has reason to believe there was a loss.Within 60 days of the actual loss.Within 30 days of the actual loss.

Within 120 days after the insured has reason to believe there was a loss

Personal Excess Liability policies provide coverage for all of the following, EXCEPT: Answer Choices:Select the Correct AnswerInjuries sustained by a third party on the insured's property.Personal injury or property damage sustained by a third party due to an at-fault accident by the insured.Damage to an insured's property due to fire.Injuries to a neighbor while riding in the insured's covered boat.

Damage to an insured's property due to fire

A new homeowner is being forced into purchasing insurance from a particular insurance company as a condition to receiving a mortgage. The lender is guilty of which of the following unfair trade practices? Answer Choices:Select the Correct AnswerUnfair discrimination.Twisting.Coercion.Rebating.

Coercion

Barry's Vending, Inc. covers its automobiles under a Business Auto policy. The owner, Barry, does not own a car since he always drives a company car. If Barry would like to drive his friend's car occasionally, when one of his employees is using his company car, what coverage should be added to the BAP to provide Barry with liability coverage while driving a vehicle not owned by the corporation? Answer Choices:Select the Correct AnswerDrive Other Car endorsement.Extended Nonowned Liability endorsement.Named Nonowner endorsement.Drive Away Liability endorsement.

Drive Other Car endorsement

The insured has sustained a loss of income from a covered peril under his Businessowners policy. What deductible applies to "loss of income" coverage? Answer Choices:Select the Correct AnswerA "time deductible" of 72-hours.The same deductible that applies to the building or contents coverage.A $500 deductible.No deductible.

A "time deductible" of 72-hours

Which of the following would be considered a "breakdown" as defined in an Equipment Breakdown policy? Answer Choices:Select the Correct AnswerMalfunctions after adjusting equipment.Leakage at any valve.The functioning of any safety or protective device.Pressure or vacuum equipment failure.

Pressure or vacuum equipment failure

The actual "loss" that is covered by the "Extortion - Commercial or Government Entities" endorsement to a Crime policy includes all of the following, EXCEPT: Answer Choices:Select the Correct AnswerThe loss of the named insured's reputation when he doesn't pay the extortionists' demands for cash and the extortionist reveals the insured's extramarital affair on social media.The loss of securities paid to an extortionist by the named insured in exchange for releasing the insured's daughter after being kidnapped by the extortionist.The loss of money the named insured paid to the extortionist in exchange for the extortionist destroying all copies of an adult film featuring the insured's daughter.The loss of an original Michelangelo painting worth millions of dollars that the insured paid to an extortionist to stop the criminal from detonating a bomb at one of the company's warehouses.

The loss of the named insured's reputation when he doesn't pay the extortionists' demands for cash and the extortionist reveals the insured's extramarital affair on social media

Which of the following is NOT considered a loss under the Employee Theft insuring agreement of a standard Commercial Crime form? Answer Choices:Select the Correct AnswerTheft of stock by an employee after business hours.Property that is stolen from the insured by an employee who is acting in collusion with a theft ring in the area.Theft of stock by an individual employee during business hours.A shortage of inventory that shows up on an inventory report with no evidence to show the reason for that shortage.

A shortage of inventory that shows up on an inventory report with no evidence to show the reason for that shortage. is

All of the following statements are TRUE regarding the Flood Coverage Endorsement to the Commercial Property policy, EXCEPT: Answer Choices:Select the Correct AnswerThere is no coverage for loss caused by a flood that begins before or within 72 hours after the inception date of the endorsement.Back-up or overflow of a sewer or drain is covered if that overflow occurs within 48 hours after the flood recedes and the overflow was caused by the flood.Destabilization of land caused by flooding of subsurface land areas is not covered.The cost to remove debris of covered property is included in the endorsement's limit of liability and is not an additional amount of insurance.

Back-up or overflow of a sewer or drain is covered if that overflow occurs within 48 hours after the flood recedes and the overflow was caused by the flood..

Mike's Moonshine, Inc. is located in a state that permits Mike to decide whether he would like to provide workers' compensation coverage to his employees or not. Mike lives is a(n): Answer Choices:Select the Correct AnswerPro-choice state.Elective state.Obligatory state.Compulsory state.

Elective state

Which of the following is included in the Crime policy's definition of "securities"? Answer Choices:Select the Correct AnswerCurrency in current use.Money orders held for sale at a shipping store.Deposits into the insured's account at any financial institution.Evidences of debt.

Evidences of debt

When Symbol 48 is indicated on a Truckers form: Answer Choices:Select the Correct AnswerPhysical damage to a non-owned trailer is covered when the insured trucker is liable under a written interchange agreement.Physical damage to an owned trailer is covered when anyone else has possession of that trailer and there is a written interchange agreement in effect.Coverage applies for truckers physical damage when a tractor-trailer combination is being used on the Interstate Highway system or connecting roads.Coverage applies for truckers liability when a tractor-trailer combination is being used on the Interstate Highway system or connecting roads.

Physical damage to a non-owned trailer is covered when the insured trucker is liable under a written interchange agreement. .

Which of the following claims would NOT be covered under Section II -- Liability of a Homeowners policy? Answer Choices:Select the Correct AnswerThe insured's neighbor files a claim for damage to his house caused by the named insured's dog.The named insured files a claim for damage to his house caused by his dog.An insured accidentally runs over his neighbor's foot with a golf cart at the local country club.An insured's dog attacks and damages his neighbor's golf cart.

The named insured files a claim for damage to his house caused by his dog

Flood coverage can be added to a Commercial Property policy by attaching the Flood Coverage Endorsement. If the endorsement is purchased and the property is already covered under a flood policy from the National Flood Insurance Program, then the coverage under this endorsement is considered to be: Primary.Excess over the NFIP maximum limits.Pro-rata with the NFIP policy.Not applicable.

Excess over the NFIP maximum limits

The "Medical Expense" coverage of Section II of the Businessowners policy will pay the reasonable expenses for first aid, medical services, and funeral services, within: Answer Choices:Select the Correct AnswerThree years from the date of the accident.One year from the date of the accident.60 days from the date of the accident.90 days from the date of the accident.

One year from the date of the accident

Which of the following statements is TRUE regarding the deductible of the Earthquake Endorsement to a Homeowners policy? Answer Choices:Select the Correct AnswerThe minimum deductible offered for the earthquake endorsement is $500.The deductible of the earthquake endorsement may be decreased in exchange for a lower premium.The deductible of Coverage A on the Homeowners policy is applied to any earthquake loss along with the deductible selected on the earthquake endorsement.The lowest deductible an insured can select on the earthquake endorsement is $250.

The minimum deductible offered for the earthquake endorsement is $500.

An auto is described in the schedule of the Hired Autos endorsement to a Business Auto policy. For purposes of Business Auto coverage, this auto will be considered: Answer Choices:Select the Correct AnswerA nonowned, but covered auto.A hired, but covered auto.A covered auto owned by the named insured.An auto that is not a covered auto.

A covered auto owned by the named insured

All of the following statements are TRUE regarding the coverage of appurtenant structures covered by an NFIP policy, EXCEPT: The Dwelling coverage form under the NFIP provides up to 10% of the building coverage limit for appurtenant structures as an additional amount of insurance. They must be located in an eligible community. The only appurtenant structure covered under the NFIP is a detached garage. The Dwelling coverage form under the NFIP provides up to 10% of the building coverage limit for appurtenant structures but the coverage reduces the total amount of building coverage available.

The only answer choice that is NOT TRUE is: "The Dwelling coverage form under the NFIP provides up to 10% of the building coverage limit for appurtenant structures as an additional amount of insurance." This is because the limit is reduced from the total building limit, it is NOT additional insurance.