trial 1 miss

dog in fence. gives kid nightmares who passes by. files claim for personal injury of 5k. why will the personal and advertising injury liability section (Coverage B) of the CGL policy cover this claim? A.) Animals are excluded from coverage B.) The injury was expected or intended C.) The occurrence was off premises D.) Mental anguish is covered injury

D

All of the following are TRUE regarding the cancellation condition of a policy EXCEPT A.) The insurer must provide proof that the insured received the notice B.) The insurer may cancel the policy by mailing a written notice to the first named insured only C.) The insurer is required to give advance notice of its cancellation to the insured

A

If an insurer declares that the value of a loss is 5K, but the insured is confident that the amount of the loss is substantially different, which of the following would most likely be used to settle the dispute? A.) Small claims court B.) Third party settlement C.) Arbitration

C

To be called, an insurance policy must have all of the following EXCEPT A.) Consideration B.) Offer C.) Contersignature

C

An insurer must be fair in underwriting and must pay all covered losses of any insured. For the faithful execution of these duties, an insurer has the right to A.) Employ any and all resources available to avoid paying legitimate claims B.) Accept the payment of premiums for all policies currently in force C.) Use flexible underwriting standards so as to exclude higher-risk insureds

B

Georgia law requires that every policy of Fire Insurance covering property located in the state conform to the provisions of A.) The Dwelling Policy B.) The Standard Fire Policy C.) The ISO Homeowners Policy

B

Nonrenewable of a policy is prohibited if based on which of the following situations? A.) Lack of supporting business with the insurer B.)Change in the insurer's underwriting guidelines that is not approved by the Commisioner C.) Two or fewer claims against the policy in the preceding 36 months if the claims are not attributable to the negligent or intentional acts of the insured or other resident of the household D.) all the above

C

The defendant being released on a surety bail bond is the A.) Obligee B.) Insured C.) Principal D.) Surety

C

The insured's product under a commercial general liability policy does NOT include which of the following? A.) Vending machines rented to others B.) Warranties made with respect to the fitness or quality of the product C.) Any goods or products manufactured by the insured

A

The personal property off-premises extension of dwelling forms provides limits of coverage up to A.) 10% of coverage C anywhere in the world B.) 10% of Coverage A anywhere in the world

A

What types of injuries could incur additional penalties and/or increased benefits paid by the employer? A.) The employer's willful failure to provide required safety goggles B.) Loss of a limb while following safety procedures

A

Which of the following stipulates the procedure that insureds and insurers can use when they cannot agree on the value of a loss? A.) Appraisal clause B.) Loss settlement clause C.) Subrogation clause

A

Which of the following terms means termination of an insurance policy at its expiration date by not offering a policy continuation or replacement? A.) Nonrenewal B.) Suspension C.) Cessation D.) Cancellation

A

Which of the following would NOT be covered under the directors and officers liability coverage? A.) Reimbursement for fines and penalties B.) Misstatements made by the directors and officers C.) Neglect and breach of duty

A

If the premiums collected by an insurer participating in the WYO flood program are insufficient to cover losses, which of the following would be true? A.) The insurer must apply for disaster relief funds B.) The insurer will be reimbursed for the excess costs by the NFIP C.) Federal Insurance Administration will remove the insurer from the NFIP

B

A producer advises a policyholder that he should replace his life insurance policy with another similar policy. The agent is advising this, however, for the sole purpose of earning commission. What violation has agent committed? ( Churning is defined as replacing insurance policies for the sole purpose of making commissions) A.) Twisting B.) Replacement Fraud C.) Churning D.) False Advertising

C

An agent delivers a policy to an applicant, who pays the initial premium but refuses to submit a statement of good health. Which of the following terms best describes what the applicant has violated? A.) Adhesion B.) Contractual Agreement C.) Consideration D.) Representation

C

If a policy is to be canceled for any reason except nonpayment of premium, how many days' notice must the insurer give the policyholder before canceling the policy? A.) 10 days B.) 15 days C.) 30 days

C

Under the Coverage B- Other Structures, a homeowners policy provides coverage for other structures on the residence premises. Which of the following statements is NOT true of this coverage? A.) A detached garage may be covered if rented to tother as a private garage. B.) Any loss paid under Coverage B reduces the Coverage A limit of liability C.) Other structures under Coverage B must be set apart from the dwelling by clear space.

B

Which statement best describes agreement as it relates to insurance contracts? A.) Each party must offer something of value B.) One party accepts the exact terms of the other party's offer C.) The intent of the contract must be legally acceptable to both parties

B

All advertisements , regardless of their source of creation, are the responsibility of the A.) Insured B.) Advertising agency C.) Department of Insurance D.) Insurer

D

An insured's limit of liability applies to a total of damages for bodily injury and property damage resulting from one accident, which may be used in any combination of amounts, not to exceed the single limit. What type of limit does this insured have? A.) Split B.) Aggregate C.) Per Occurrence D.) Combined Singler

D

An insured has decided to never drive another vehicle and wants to transfer his auto insurance policy to his wife. What does the insured need to transfer the policy? A.) The written consent of the insurer B.) An auto policy cannot be transferred C.) Nothing, because his wife is automatically included as an insured

A

Homeowners policies consider all of the following insured location EXCEPT (insured location cannot include farmland or any premises used for business purposes) A.) The hotel ballroom rented by the insured for a family reunion. B.) A strawberry patch owned by the insured C.) An individual cemetery plot

B

Insureds covered under a Mobile Homeowners Policy move their mobile home to prevent it from being damaged by a fire. What is the max amount the policy will pay for this? A.) $350 B.) $500 C.) $1,000 D.) $5,000

B

With regard to homeowners Section II, which of the following does NOT meet the definition of insured location? A.) A secondary residence acquired by the insured during the policy period B.) A plot of farmland owned or rented by the insured C.) A cabin rented to the insured for use on a family vacation

B

All of the following are ways to handle risk EXCEPT (risk cannot be elimated) A.) Reduction B.) Transfer C.) Elimination D.) Avoidance

C

In order to receive transportation expenses under the personal auto policy following damage to an auto caused by collision, an insured must have A.) Supplementary payments B.) Other-than-collision coverage C.) Collision coverage D.) Uninsured motorist property damage

C

The limit theft endorsement designed for a landlord excludes all of the following EXCEPT A.) Money stolen from the tenant's apartment B.) Silverware stolen from the landlord's china cabinet C.) A lawnmower the landlord owns and keeps at rented premises D.) Jewelry stolen from the landlord's home

C

Under the employee theft coverage, when a covered employee is found to have participated in a dishonest act, the coverage for that employee will terminate A.) Upon employee's conviction B.) In 30 days C.) Immediately

C

When Jane and her insurer could not agree on the amount of liability loss after her accident, the settlement was submitted to someone whose decision on both parties. What condition did Jane use? A.) Appraisal B.) Fair Value C.) Arbitration

C

Which of the following describes an insurer's responsibility for payment under a policy, as stated in the common policy provisions? A.) Consideration B.) Premiums C.) Limits of liability

C

Due to appreciation, the amount of insurance on a business is less than 80% of its actual value on the date of the loss. Which is true? A.) The policy pays nothing B.) The full amount of the loss, less any deductible is paid C.) The policyholder is responsible for twice the amount of the deductible D.) The coinsurance penalty applies

D

How soon does the period of restoration for business income coverage begin after the direct loss? A.) Immediately B.) 24 hours C.) 48 hours D.) 72 hours

D

To have insurable interest, what risk must the policy owner face? A.) Physical injury B.) Property damage C.) Illness D.) Financial Loss

D

What guarantees that the information explained in the insurance contract is true A.) A representation B.) Utmost good faith C.) A binder D.) A warranty

D

Which of the following conditions allows the insurer to examine the insured's records at the end of a policy term to make sure an adequate fee is being collected for the exposure? A.) Insurable Interest Evaluation B.) Underwriting C.) Excess Liability Evaluation D.) Deposit Premium Audit

D