Texas License
The "coverage territory" of umbrella liability policies is usually:
Anywhere in the world
Section 1 of the Business owners policy places limitations on coverage for certain losses if they are not caused by a specified cause of loss. All of the following are specified causes of loss under the policy except.
Building glass breakage.
What is not covered under DP-1 but covered under 2 & 3?
Collapse and glass
All of the following statements are TRUE regarding a Commercial Inland Marine policy, EXCEPT:
Coverage is most often written on a named peril basis
A voluntary act of destruction in which a ship's cargo is thrown overboard in order to save the ship is known as
Jettison
If the standard fire policy is issued with the extended coverage endorsement attached, coverage will be provided for all of the following, EXCEPT:
Law and Ordinance
Tort law applies to all of the following, EXCEPT
Liability arising from breach of contract
Under a homeowners policy, coverage D is
Loss of use: 30% of coverage A HO-5 = 30% of coverage C HO-6 = 50% of coverage C HO-9 = 10% of coverage A
Under a homeowners policy, coverage F is
Medical Payments: medical expenses incurred by others, regardless of who is at fault.
All of the following items are given a "special limit of liability" under Coverage C of the Homeowners policies, EXCEPT:
Motorized land vehicles
The NAIC Model unfair claim settlement practice act specifies that when a violation of the act is suspect a hearing must be held:
Not less than 30 days after notice has been provided to those involved
Under a homeowners policy, coverage C is
Personal property: 50% of covg. a for 1-2 family/ 30% for 3/ 25% for 4
The freight charge is paid by the shipper to the carrier:
When the cargo has ben delivered to its destination point.
The "Medical Payments" coverage of the standard Yacht policy c0vers all medical expenses incurred by an insured, family members, invitees or guests if a claim is submitted:
Within 1 year following a covered accident
Under coverage F- Medical payments in section 2 of the standard homeowners policies, medical expenses for the injured party will ne paid as long as the claim is submitted:
Within three years of the date of the accident.
Fire dept. service charge under the BOP covers?
up to $2500
Outdoor property under the BOP is covered for?
up to $2500 (1000 per tree/shrub)
Electronic data under the BOP covers
up to 10k
Business income-dependent properties pays?
up to 5k
Pollution cleanup under the BOP covers?
10k; 180 day reporting requirement.
Newly acquired business personal property under BOP is covered for?
30 days and $100,000
Newly acquired building under BOP is covered for?
30 days and 250k per building
Preservation of property under the BOP covers?
30 days for property removed
Business income/ extra expense under BOP covers?
After 72 waiting period; up to 12 months (60 days payroll)
Which of the following statements is TRUE regarding the coverage extension of the standard Businessowners policy for "Business Personal Property Temporarily in Portable Storage Units"?
Coverage will not apply if the storage unit has been on the insured premises for longer than 90 days, even if the business personal property has only been stored there for less than 90 days
Which of the following would be covered under Coverage A - Building of the Business and Personal Property coverage form if the damage was caused by a covered cause of loss?
Damage to the insured's lawn mower used by the company maintenance crew
The insured awoke and found that the water line on the side of the water meter has broke. Several thousands gallons of water have escaped. The water company bills the insured for the loss of the water, because the breakage in the waterline occurred on his side of the water meter. The insurance company will.:
Deny the claim because water is excluded under Coverage C
Under a dwelling policy, coverage D is
Fair rental value: 20% of coverage A
Which of the following statements is TRUE regarding the DP-3 special form?
It provides open peril coverage on the structure and named peril coverage on the personal property.
Actual cash value is defined more recently as "replacement cost less a deduction that reflects" all of the following, EXCEPT:
Market Saturation
A provider of health care services under Texas workers' compensation coverage must submit a bill for payment to the insurance carrier:
Not later than the 95th day after the services were provided to the injured worker
A contractor in need of a bid bond to obtain a contract is an example of a(n)
Principal
Which of the following is NOT one of the three main (general) coverages of the Building & Personal Property coverage form?
Property damage liability coverage
Which of the following statements describes the coverage provided under coverage C of the ordinance or law endorsement to a commercial policy:
Provides coverage for the increased costs to repair or rebuild to comply with current building, zoning, or land use ordinances or laws.
Which of the following is the organization that produces standardized workers' compensation forms and provides experience ratings for employers?
The National Council on Compensation (NCCI)
Which of the following statements is TRUE regarding controlled commercial inland marine forms?
These forms a re usually issued according to published rules and rates.
Which of the following statements is NOT true regarding a "prompt notice of loss" provided by the insured to their insurance company
This notice should be provided only after the insured has determined the extent of the loss or damage and confirmed that the amount will be higher than the insured's deductible
All of the following statements are TRUE about Workers Compensation benefits, EXCEPT:
Waiting periods apply to medical and disability benefits
Coverage C of the Homeowners form provides which of the following amounts for business personal property?
$2500 on the premises and $1500 off the premises
Rush is covered under a standard Fire policy and suffers a loss to his home and personal property. The limit of liability listed on the policy itself is $120,000. The ACV of his loss is $55,000. To repair or replace the property with materials of like kind and quality would cost $72,000. Rush's insurable interest in the property is $42,000 as he has a mortgage and some liens on personal property. What is the amount of the claim settlement Rush will receive?
$42,000
Miranda holds a Texas All Lines adjuster license that expired 45 days ago. If the adjuster license renewal fee is $50, what is the amount Miranda should remit with her renewal application
$75
Miguel was injured at work in Texas and has worked for his employer for more than 13 weeks. Which of the following would be Miguel's average weekly wage given the following information regarding
$826.85
Business personal property in portable storage units is covered for?
10k, limited to 90 fays and within 100 feet of the property.
If commercial property is written on the Building and personal property coverage form and a loss occurs, the insured must furnish a signed statement of loss within:
60 days after the request of the insurer.
When a work-related injury in Texas results in death of the employee, what benefit if any is the employee's beneficiary entitled to?
75% of the employee's average weekly wage
Bob and Pete's Used Cars has purchased a Garage policy with dealer's physical damage coverage on the cars owned by the dealership at its location. Pete goes to an auto auction 150 miles away, purchases a vehicle and drives it back to the dealership. If Pete suffers a physical damage loss during this trip:
Coverage will apply only if the "Dealers Drive Away Collision" endorsement is attached to the Garage policy.
All of the following statements are true regarding Difference in Conditions insurance (DIC), EXCEPT
Covers losses due to windstorm
Under a dwelling policy, coverage B is
Other structures: 10% of coverage A
Under a homeowners policy, coverage E is
Personal Liability: covers premises liability; personal activities, acts of residence employees, vacant land and cemetery plots.
Under a dwelling policy, coverage C is
Personal Property: 10% off limit and available off premises
Coverage under a standard personal watercraft policy extends to all of the following, Except:
The crew of the boat for medical payments.
The pre-defined amount of insurance claim that is paid by the policy holder is known as:
The deductible
All of the following describe one of the four elements of negligent act, EXCEPT:
The defendant entered into a legal contract with the plaintiff
When a policy is issued by a surplus lines company who later becomes insolvent, who pays the claims?
The insured must assume the loss.
Which of the following statements is TRUE if an insured would like to include Commercial Inland Marine forms to a Commercial Package Policy?
The insured must select controlled Commercial Inland Marine forms to add to a Commercial Package Policy
A Standard Fire policy frequently insures both a mortgagee and an insured under the same policy. All of the following statements are true regarding how a property loss will be paid under an SFP when there is a mortgage on the property, EXCEPT:
The insured receives payment from the insurance company for the entire loss and the insured is responsible for paying the mortgagee their portion of the payment
All of the following items are covered under the Employers Liability section of a workers' compensation policy, EXCEPT:
The insured's loss of earnings due to the litigation
Valuable papers/ records for BOP is covered for?
10k on premises and 5k off premises
A warranty in insurance is best described as which of the following?
A guarantee that the statements made by the applicant are completely true and untrue statements can void the coverage.
An incorporated insurance company with its capital divided into shares and owned by its shareholders is known as
A stock company
Under a dwelling policy, coverage E is
Additional living expense: Endorsement = DP-1 20% of coverage A = DP-2 & DP-3
Public adjusters:
Adjust first-party property loss claims.
HO-8 does not cover what perils all of the other forms do?
Falling objects, weight of snow/ice, discharge of H20/steam, sudden/accidental rupture, plumbing/related systems, artificial electrical current
Under a standard HO-3, the limit for Coverage C - Personal Property for a one or two-family dwelling:
Is set at 50% of Coverage A
Which statement is FALSE regarding an appointment contract with an insurance company?
It is generally an oral agreement between the parties
Katherine lives in Texas. A third-party claim has been filed against her insurance policy by Joe, for an accident in which Katherine was liable. Joe's attorney contacts Katherine's insurance company and makes an initial offer to settle the claim. The insurance company must notify Katherine of the offer, in writing:
Not later than the 10th day after the date the inital offer was made.
For the insured dwelling and other structures, the DP-3 provides
Open peril coverage
The insured is covered under a standard HO-5 policy. What coverage does the insured have for personal property?
Open perils
Under a homeowners policy, coverage B is
Other structures : 10% of covg. a for 1-2 family/ 5% for 3-4
Under a dwelling policy, coverage A is
The Dwelling itself: ACV = DP-1 RCV = DP-2 & DP-3
Coverage B of the Ordinance or Law Endorsement to a Commercial Property policy covers:
The cost to demolish and remove the undamaged portion of the building, if that destruction must occur because of an ordinance or law requirement
Which of the following statements is TRUE concerning Part A - Liability coverage on a standard Personal Automobile Policy?
The coverage is provided only for accidents caused by those who are "insureds" under the policy
Jim Cress owns an expensive fine arts collection. He has it appraised and covered under a personal articles floater. he takes his collection to England to have it auctioned. While the collection is in his hotel room it is stolen. What coverage would apply?
The loss is not covered.
Which of the following is TRUE regarding nuclear energy loss coverage under a Personal Automobile policy?
The personal automobile policy will not provide coverage for bodily injury or property damage caused by the insured's nuclear energy losses
An insureds boat is struck by another boat. He and his family are injured. His boat sinks because of the damage. An investigation determines that the party that caused the accident is not insured. I the insured carries a watercraft policy what coverages would apply?
Uninsured boaters' coverage and hull insurance
The hull coverage of a Yacht policy provides settlement on a(n) ________ for partial losses.
Replacement cost basis
Which of the following Dwelling forms provides "open peril" coverage for dwellings and other structures?
The DP-3 special form.
How many sqaure feet can a gas station have under BOP?
3,000
How long does property removed apply for under a HOP?
30 days when property is removed due to peril
Which of the following best describes the fundamental trade-off of Workers Compensation insurance?
Employees are provided no-fault benefits for most work-related injuries in exchange for the loss of the right to sue the employer for damages
If the Value Reporting Form Endorsement is attached to a Commercial Property policy, business personal property is covered at all of the following locations, EXCEPT:
Exhibition locations
What is not covered under DP-3 but covered under 1 & 2?
Fire, lightning and internal explosion
Part One of a standard workers' compensation policy states that the insurer agrees to defend at its expense any claim, proceeding or law suit against the insured employer:
For benefits payable by the insurer
Lawrence holds both an independent staff adjusters licenses and a public adjusters license as permitted bylaw in his state. He is employed by Binders Keepers, Inc. and regularly adjusts claims for the company that arise form homeowners polices.
Present a conflict of interest
BOP uses what form of insurance payment method?
Replacement cost unless ACV is requested.
Debris removal under the BOP covers?
25k if coverage A or B exceeded.
Part B of the personal automobile policy provides coverage, regardless of fault, for necessary medical and funeral expenses incurred within how many years of the date of the injury?
3 years
Samantha who is covered under a standard fire policy, has suffered a loss and submitted a claim. After the claim was paid, Samantha's insurance company has decided to take possession of the damaged property to sell it for its salvage value. The insurance company must provide Samantha with _______ notice
30 days' notice
When the "Extended Period of Indemnity" option is selected by the insured on their Business Income form, the additional coverage "Extended Business Income" is extended from 60 days up to a maximum of _____ days.
360 days
In Texas, if an insurer delays the payment of a claim beyond the period specified by law for more than _________, they must pay damages to the insured/claimant
60 days
Dre's agent is putting together a commercial property policy for him. The declarations page, the conditions page and several endorsements have been included. Which of the following must still be included to complete the policy?
A cause of loss form
Under a homeowners policy, coverage A is
For the Dwelling: Full replacement as long as 80% insured.
The optional coverage for "money and securities" under a standard Business owners policy provides for the loss of money and securities used in the insured's business as a result of all of he following, EXCEPT:
Fraud
Joe owns an automobile dealership. Alex purchases a vehicle from Joe and drives it home. Later that week, Alex experiences a mechanical problem with the car and brings it back to Joe's dealership. Joe asks his best mechanic to test drive Alex's car around the block to determine the problem. While on the test drive, the mechanic hits another vehicle and injures its driver. Alex's car is also totaled in the accident. Alex's vehicle would be covered under which coverage of Joe's Garage policy?
Garage keepers liability
All of the following are perils NOT typically covered by property cause of loss forms, EXCEPT:
Hail
Gena purchased a policy to cover her home for personal use. Recently, she has been conducting business form the home and has hired several employees. She also has clients per day coming to he home for business purposes
Suspend her policy until she moves the business out of her home
The insured auto dealer has opted to include Part 6- Garage physical damage coverage to her policy. Which of the following symbols must be indicated on the Declarations page of the policy for physical damage coverage to apply
Symbol 31
The optional coverage for "Employee Dishonesty" under a standard Businessowners policy provides a "discovery period" for the insured to discover the dishonest act and have coverage still apply. Which of the following statements best describes the "discovery period" for this optional coverage?
The "discovery period" is one year from the end of the policy period
Which "conditions" form in a complete Commercial Property specifies how a disagreement on the value of damaged property is handled?
The Building and Personal Property Conditions form
Ocean marine coverage for losses to the insured vessel caused by bursting boilers, latent defects in the vessel and negligence of the master or crew members are addressed by which of the following?
The Inchmaree clause
