test questions
The extension of coverage under the Commercial Fine Arts Floater includes coverage for newly acquired property for a maximum of
$10,000
under the commercial crime coverage inside the premises- robbery or safe burglary of other property, what is the special per occurrence limit that applies to loss or damage to precious metals, precious and semiprecious stones, pearls, furs, manuscripts, drawings, or records?
$5,000
If policy is cancelled per non-payment, how many days in advance of the cancellation date must the insurer provide notice to the mortgagee
10 days
an insured must get advanced warning if the premiums will be increased by more than
15%
an insured has a standard ho-4 policy with a 30k limit of coverage for personal property. while he was traveling, a fire in his hotel destroys clothes and luggages with a replacement value of 10k and jewelry with a replacement value of 10k. disregarding any deductible, and assuming a depreciation of 20% has occurred in both properties, what amount is the insurer obligated to pay
16,000
the insured purchased a 200k extra expense policy. if the percentages applying to the limit of insurance are 40%, 80%, and 100%, what would be the max payable for a 47-day loss?
160,000
tom's truck service's vehicle is stolen. the policyholder may obtain coverage for transportation expenses subject to which of the following limits?
20 per day; 600 max
in this state, no automobile insurance policy issued as proof of financial responsibility will be issued with bodily injury and property damage limits less than
25/50/25
worker's compensation laws in georgia apply to businesses that employ
3 or more employees
if an insured is in the process of moving to a new location, his personal property coverage under the dwelling policy will apply on a pro rata basis at both locations for
30 days
what is the coinsurance requirement for a theatrical property floater under an inland marine policy
80%
With respect to auto insurance, the term owned autos includes all of the following EXCEPT
A pickup or van titled to and used in the named insured's business
which of the following would be required to be licensed as an insurance producer?
A salaried employee who advertises and solicits insurance
With respect to the business of insurance, a hazard is
Any condition or exposure that increases the possibility of loss.
which of the following would be considered an insured under a business auto coverage form?
Anyone while using, with permission, a covered auto owned by the named insured
in return for premium, an insurance company must
Be fair in underwriting and pay covered losses.
a liability policy that provides coverage for a claim for injury or damage if the claim is first reported or filed against the insured during the policy period is called
Claims made form
a professional who wants coverage for all liability exposures should purchase what form of liability insurance?
Commercial general and professional
representations are written or oral statements made by the applicant that are
Considered true to the best of the applicant's knowledge
The extra expense coverage form provides
Coverage that will permit the insured to continue in business without interruption following a property damage loss.
which of the following is a mandatory part of an insurance policy that varies with each individual policy?
Declarations or insuring agreement
An insured is applying for a casualty insurance policy. One of the conditions of the policy allows the insurance company to inspect the insured's books at the end of the policy term to make sure sufficient premium has been collected for the exposure she plans to insure. Which condition is part of the insured's policy?
Deposit premium audit
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
professional liability coverage protects the insured against legal liability resulting from?
Errors and Omissions
all of the following are found in the declarations section of a policy except the
Exclusions
What method of premium computation relates an employer's losses, payroll, and premiums to the rating bureau's classifications of operations?
Experience modification factor
Under the professional liability loss settlement provision, what must an insurer do before offering to pay a claimant to settle a claim?
Get the insured's consent
in liability insurance policies, supplementary payments are made
In addition to the limit of liability
the part of the insurance contract that describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured is called the
Insuring agreement
in which of the following situations is it legal to limit coverage based on marital status
It is never legal to limit coverage based on marital status
the regular national flood insurance program would insure an eligible single-family dwelling for up to
It is written for the value of the dwelling up to $250,000 on a replacement cost basis.
which of the following statements concerning the builders risk coverage form is correct
It may be written on a reporting form or the completed value of the structure.
which of the following statements is not true regarding a personal umbrella liability policy?
It provides errors and omissions coverage for an agency.
How does the mobile home endorsement affect the other coverage of law or ordinance in a homeowners policy?
It removes the coverage
Under the dwelling policy, Coverage C - Personal Property is
Limited to covering a servant's property while at the insured location.
which of the following. coverages on dwelling and homeowners policies is for indirect losses?
Loss of use
ABC Trucking hauls products for Acme, Inc. as a contract carrier. On one shipment, the driver stopped at a truck stop for lunch. Leaving the truck in the parking lot, he made certain that the truck was locked before leaving it. Upon returning to the truck, he discovered that someone had broken into the truck and stolen the cargo. Is ABC legally liable for this loss?
No, the driver had taken reasonable measures to protect the property by locking the truck
When ABC Appliance's marketing stated that its mowing machine was the only safe mower available for purchase in town, ABC was sued by XYZ Lawn and Garden. ABC's coverage would come from which part of its general liability coverage?
Personal and advertising injury liability
the other insurance provision that limits the liability of the insurer to a portion of the loss no greater than the amount the insurer bears to all the insurance covering the property is called
Pro rata liability
what is the deductible of a personal liability umbrella policy called?
SIR (self-insured retention)
When the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss, the coverage is said to be written
Stated amount
In the event of a claim under a commercial general liability policy, the insured has all the following duties to the insurer EXCEPT
Submitting to a medical exam when requested.
the policy provision found in property insurance policies that prevents the insured from collecting twice for the same loss is called
Subrogation
an insurance agency could purchase an errors and omission insurance policy which would provide protection in the event of any of the following events except
The agency loses commission income from policies that were not issued by the insurer
all of the following statements concerning coinsurance are true except
The coinsurance formula also will be applied to total losses
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
The excess over the self-insured retention.
The most the insurer will pay for a loss under a businessowners policy is
The limit of insurance after the deductible is paid.
which of the following best expresses the purpose of a stated value contract?
To pre-establish the amount of coverage available for property items that are difficult to value
which of the following is not settled on an actual cash value basis while covered under the business property coverage form?
Valuable papers and records
In forming an insurance contract, when does acceptance usually occur?
When an insurer's underwriter approves coverage
coverage under a floor plan merchandise form is written on a reporting form basis that requires the insured to file reports with the insurer. what is the time frame for those reports?
Within 30 days after the end of each month
When a mortgagee is named in a mortgagee clause attached to a fire or other direct damage policy
a) The loss reimbursement will be paid to the mortgagee as their interest may appear. b) The mortgagee's rights of recovery will not be defeated by any act or neglect of the insured. c) The mortgagee may bring a suit in their own name to recover damages to covered property. d) All of the above are true. When a mortgagee is named in a mortgagee clause attached to a fire or other direct damage policy, the loss reimbursement will be paid to the mortgagee as their interest may appear; and, the mortgagee's rights of recovery will not be defeated by any act or neglect of the insured. The mortgagee is also given other rights, such as bringing a suit in their own name to recover damages.
which of the following clauses establishes the procedure for determining the amount of a loss when the insurer and the insured cannot agree on the value of property amount of loss
appraisal clause
insurance interest in a property policy must be proven
at the time of loss
if an agent advises a policyholder to replace an insurance policy but only does so for the purpose of making commissions, the agent has committed
churning
In any case where there is a controversy or dispute between the insurance company and the insured, the soliciting agent is the agent of the
company
what term best describes the act of withholding material information that would be crucial to an underwriting decision
concealment
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT
conditions
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?
contractors equipment floater
professional liability coverages protects against legal liability resulting from
errors and omissions
What type of compensatory damages will pay for pain and suffering and disfigurement?
in general
the valued policy statute applies in which of the following events?
in the event of a total loss by fire to a one or two family residential building or structure
if an employer in a state with elective worker's compensation laws chooses not to be subject to those laws, what does the employer lose?
its common law defenses against liability suits
which of the following is the basis for a claim against an insurance policy?
loss
the insureds house is located one mile from the countrys nee landfill and across the road from the entrance of a rock quarry. it would cost 150k to rebuild the house if something happened to it, but when the insured tried to sell it, the best offer he received was 80k. the insurance co will insure the house for only 80k. what method of valuation is used to insure this property?
market value
Losses caused by continuous or repeated exposure to conditions resulting in injury persons or damage to property that is neither intended nor expected is the definition of which of the following terms?
occurrence
what type of insurance policy insures against all risk of loss that are not specifically excluded by the policy?
open peril
the mobilehome endorsement alters the homeowners policy to cover a mobilehome and othet structure on land
owned or leased by the resident of the mobilehome
under the coverage of which of the following liability policies may an insured require the insurer to defend a claim?
professional liability
all of the following are considered parts of policy structure except (insuring clause, conditions, provisions, exclusions)
provisions
what type of information would be found in a policy insuring agreement?
renewal dates
which of the following is used in the formula for calculating the actual cash value of a property
replacement cost
which of the following would be covered under personal injury liability?
slander
Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages?
special
an insured owns several buildings, each at a different locations. what policy should they have?
specific
the legal process that gives the insurer, after payment of a loss, the right to seek recovery from a third party that was responsible for the loss is known as?
subrogation
who is NOT considered an employee in a commercial general liability (cgl) policy?
temporary worker
if the insurer pays an amount less than amount insured under the policy in the event of a total loss to property, how much of the insured's premium must the insurer return?
the amount of premium actually paid and the premium that would have been chargerd for policy with an amount of insurance equal to the amount paid by the insurer for the loss
the commissioner of insurance is
the chief officer of the department of insurance
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 of furniture and clothes in the house. From an insurance standpoint, the insured's house is considered
unoccupied
A building is insured, but no one has lived or worked in it for 10 years. The building is completely empty of any furniture or personal belongings. From an insurance standpoint, the building is considered
vacant
An insured's 9-year-old son threw a ball, accidentally breaking a neighbor's plate glass window. The insured was found legally liable for the cost of replacing the window. This is an example of
vicarious liability
any insurer who issues a crop insurance policy, other than federal crop insurance, for tobacco crops grown in ga, shall make available coverage for what until the crop is harvested?
wind/ or hail
a commercial package policy (cpp) allows the insured to select the coverage needed and customize the policy to meet the needs of the insureds business. in a cpp, the business owner may select from all of the following types of coverage except
workers' compensation coverage.
the proof of loss statement must be
writing