Ad banker
The shifting of a risk of loss to another party is known as which of the following
risk transfer
Which type of risk involves the possibility of loss or gain
speculative
Under the livestock coverage form, if an animal is not declared on the declarations page, the most the insurer will pay for a covered loss to that undeclared animal is
$2000
Which of the following is not eligible for coverage under a personal auto policy?
A private passenger auto used as a taxicab
Which of the following is false regarding the appointment of producers in Oklahoma?
A producer may only have a certain number of appointments
An insured has an HO-3 policy with a coverage A limit of $200,000. What is the maximum amount a policy will pay if a detached garage burns down, including the amount provided for the cost of debris removal expenses?
$21,000
For personal auto policy is issued in Oklahoma which of the following is correct minimum limits of liability
$25,000/$50,000/$25,000
The standard deductible applicable to farm property loss is
$250
Under a personal auto policy medical payments, do not apply to passengers occupying which of the following
A cargo van used in the course of employment by the insured's business
H's liability policy has the following limit $35,000 per person $350,000 per occurrence and $2 million aggregate. This year, three claimants file in the amount of $15,000, $30,000, and $45,000. How much will the policy pay?
$80,000
The employee theft insuring agreed available under commercial crime insurance would cover
A cashier taking money from the insureds cash register
Which of the following defines a tort?
A civil wrong
Who of the following is an employee under the Worker's Compensation law?
A corporate officer
Per Oklahoma law it is the duty of the insurer receiving a proof of loss to submit a written offer of settlement or rejection of the claim to be insured within how many days
60
S has an HO-5 policy with a $250,000 Coverage A limit. After a strong wind blows a mailbox into S's front window, causing $2,500 damage, S immediately buys $250 of wood and plastic sheeting to cover the damaged window and prevent further damage. How much will S's policy pay?
$2750
A business is protected by a business owners policy. After a fire, electronic data is corrupted, causing an interruption of computer operations. As an additional coverage, business income, an extra expense coverage, or extended to apply to the suspended of operations, up to what amount of insurance?
$10,000
A flood damage is a single-family home that is in a community in the early stages of participation with the NFIP. What is the maximum amount a resident may receive for damages to personal property?
$10,000
Q's liability policy has the following limit $25,000 per person $100,000 per occurrence and $2 million aggregated. This year, five separate climates each file $25,000 for injuries suffered in a single accident. How much for the policy pay
$100,000
And insured has a HO-3 policy with the identity, fraud expense coverage endorsement. If the insured is a victim of identity, fraud, and incurs notary expenses and attorney fees related to the fraud, the endorsement will provide how much coverage for these expenses
$15,000
B has a personal auto policy with 100/300/50 liability limits, a $5000 medical payment limit, and under insured motorist coverage of $50,000. After an accident for which the other driver is at fault,B is awarded $90,000 in damages for bodily injury. If the other drivers liability limits are 50/100/20, how much will B's policy pay?
$40,000
Under a Mobile Homeowners policy, if the mobile home is insured under Coverage A for $100,000, how much coverage would ordinarily apply to personal property under Coverage C?
$40,000
An insured whose personal auto policy has 25/50/10 limits call mom is at fault in a car accident. Claimant A has bodily injuries in the amount of $25,000. Claimant B has bodily injuries equaling $20,500. Claimant C has bodily injuries equaling $4000. What is the insurance liability for this accident?
$49,500
After a four car, accident caused by the insured claimant A has bodily injuries in the amount of $49,500, claimant B has bodily injuries equaling $19,500, and claimant C has bodily injuries equaling $14,000. If the insureds personal auto policy limits are 25/50/10, what will the insurer pay?
$50,000
Driver D slid into another car causing an accident in which three people in the other car were injured. Two injured parties claimed $15,000 in medical expenses and the third person claimed $25,000. How much will D's insurance company pay if her policy has 25/50 limits for bodily injury?
$50,000 The policy pays up to $25,000 for each person injured, but no more than $50,000 per occurrence, regardless of the number of persons injured. Therefore, the limit for this accident is $50,000.
C's debit card is stolen, and $1000 is subsequently stolen from their account. How much will C's HO-3 policy pay for the loss
$500
The coverage provided by dwelling policy for fire department service charges has a limit of insurance equal to
$500
Under a homeowners policy, the limit applicable to a loss to any one tree or plant is
$500
Under coverage H - bodily injury and property damage liability of the farm liability coverage form, liability arising out of the insurance. Custom farming operations is covered if the insureds custom farming receipts for the year are
$5000 or less
A motor carrier is transporting non-hazardous material for a company ZYX. As required by the department of transportation, the minimum limit of liability for insurance the motor Carries must have on the vehicle is
$750,000
Per Oklahoma law, it is the duty of the insurer, receiving a proof of loss to submit a written offer of settlement or rejection to the claim to the insured within how many days
60
A commercial general liability policy has a general aggregated limit of $1 million & an occurrence limit of $100,000. The policy pays a claim for a $500,000 loss, and subsequently pays a second claim for a $300,000 loss. How much of a general aggregated limit remains to apply to further covered occurrences
$800,000
Hey Home is insured on an HO-3 for $90000. If the home sustained a fire loss and replacement value of the home at the time of the loss is $120,000, how much does the insurer pay?
$90,000
Which of the following may be insured on a replacement cost basis under the national flood insurance program?
1- to 4-family residences and residential condominiums (Under the National Flood Insurance Program, property is insured on an actual cash value basis, except one- to four- family residences and residential condominiums may be insured on a replacement cost basis.)
Under the homeowners policy, the limit of insurance applicable to coverage B is what percent of coverage A limit?
10%
I'm pretty broad form DP-2 , what limit of insurance is available for fair, rental value and additional living expenses cost
20% of the coverage A limit
In Oklahoma how many credit hours of continuing education must a producer complete every renewal period
24 with three hours in ethics
A building and personal property coverage form will pay up to what percent of the building loss amount for the debris removal expenses incurred after a direct loss
25%
Under the BOP, the insurer may examine and audit books and records at any time during the policy period and up to how many years following policy termination?
3 years
Additional acquired livestock, must be reported to the insurer within how many days to be covered by the livestock coverage form
30 days
And Oklahoma insurer that will not renew a homeowners policy must provide the policy owner with how much advance notice
30 days
Under the building and personal property coverage form, after the insurer receives the sworn proof of loss, or the insured and insured reach and agreed upon settlement, loss payment must be made within how many days
30 days
In the event, an apartment attached to the insured's home is damaged and unavailable, what percentage of the coverage A limit does the HO-3 provide for rental value
30%
And insured's covered auto is stolen, and the insured incurs transportation expenses in order to get to work each day. Transportation expenses covered under part D of their personal auto policy begins how long after the theft?
48 hours
Under the contractors, equipment, floater, hand, tools, or mobile equipment newly acquired during the policy. Maybe covered for the duration of the policy. If the property is reported to the insurer within.
60 days
The period of restoration applying to business income coverage under the BOP begins
72 hours after a direct physical loss
To account for inflation, business owners policy is automatically increase the building limit by what percent annually
8%
Under the fair credit reporting act, if a consumer reports to a consumer reporting agency that they are a victim of fraud the agency must put a fraud alert on the consumers file for at least how long
90 days
Coverage C I have the homeowners policy would cover which of the following
A Camera stolen while the insured is on vacation
The business auto coverage form would cover which of the following
A borrowed truck used in the insured's business
Which of the following risks is not eligible for coverage under the business owner policy
A 10 story office building
Which property is eligible for a broad form dwelling policy
A 4family dwelling with three roomers
Which injury would be covered by a CGL policy?
A customer injured while standing in an area marked 'For Employees Only'
All of the following are an agents responsibility to the insurer, except
A duty to recommend only highway policies to applicants
D was convicted of a felony involving breach of trust. Later, D transacts interstate commerce for an insurer, but D did not obtain a 1033 waiver that would them to do so. D is subject to criminal penalties, including:
A fine and imprisonment for up to 5 years
Under the water craft liability endorsement on a homeowners policy, an injury to which of the following people would be covered under coverages E and F?
A guest of the insured
A mobile home owners policy is most similar to
A homeowners policy
Homeowners policies cover all of the following losses to trees, shrubs, and plants, except
A loss resulting from a windstorm
Which of the following is correct regarding a managing general agent
A managing general agent is an individual, corporation, or a partnership that is appointed as an independent contractor, by one or more insurers, to supervise each insures business
If a minor is injured, while working in Oklahoma, which of the following statements is true
A minor will be compensated for the injury as long as they meet the definition of an employee
And unendorsed personal auto policy may be used to insure all of the following, except
A motorcycle
Under a personal auto policy, with no added endorsements, which vehicle would not be covered
A motorcycle the insured owns
Property insurance policies that apply coverage only to perils that are stated in the policy are considered to be written on
A named peril basis
A producer who has received a license from the commissioner, but does not live in Oklahoma, will have received which type of license
A nonresident producer license
The business owners policy is best described as
A package policy offering property and liability coverages
The automatic increase in insurance endorsement available for the dwelling policy typically increases covered Anp by which of the following
A percentage designed on the endorsement
A dwelling under construction is protected by a broad form dwelling policy with the dwelling under construction endorsement. While under construction, the applicable coverage A limit is
A percentage of the finished buildings value
Which of the following statements regarding licensing is true
A person cannot sell any class of insurance unless they are licensed for it
The personal auto policy definition of family members includes
A person related to the named insured who is a resident of the household, including a foster child
Under the personal auto policy, a family member is defined as which of the following
A person who is a resident of a household and related by blood, marriage or adoption
All of the following vehicles are considered mobile equipment by the CGL except
A pickup used on a farm
All of the following are true of the fair credit reporting act, except:
A report can be changed by court action only
A commercial crime policy written with the inside the premises- robbery or safe burglary of other property insuring agreement would cover which of the following
A robber breaks glass display cases and steals the jewels inside
Basic form dwelling policy with extended coverage with cover all of the following losses, except
A roof buckling due to the weight of snow
An insured is obtaining flood insurance through the NFIP , AND THEIR POLICY IS WRITTEN USING THE MAXIMUM AVAILABLE LIMIT $35,000 FOR THE BUILDING AND $10,000 FOR THE CONTENTS, WHICH BUILDING WITH THESE LIMITS APPLY TO?
A single family dwelling in the emergency program
Which of the following best describes a surplus lines broker?
A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers
Part A of a personal auto policy would consider all of the following to be insureds except
A tenant of the dwellings using the name insureds auto without permission
A personal auto policy would consider all of the following to be a cover auto except
A trailer pulled by a farm tractor
Liability coverage under part A of a personal auto policy would be excluded for all of the following, except
A vehicle driven by an unlicensed driver
Which of the following vehicles is not considered an uninsured motor vehicle under part C of a personal auto policy
A vehicle owned by the government
Which of the following flood losses would not be covered under an NFIP policy?
A water main in the street breaks, flooding the insured's basement
Which of the following is not coming policy condition on a commercial package policy
Abandonment
Which of the following is legal liability imposed without demonstrated negligence
Absolute Liability - Because of the high degree of hazard associated with some risks, no degree of care is sufficient to fulfill the responsible party's duty to the public. In such cases, the responsible party is legally liable even when no negligent act is committed. The principle conferring this liability is known as absolute or strict liability.
An unintended an unforeseen event, from which a loss results is called, which of the following
Accident
As required by the standard fire policy property policies must use a loss valuation basis that is not more restrictive than
Actual cash value basis
Losses to unscheduled farm personal property covered under coverage F of a farm property policy are settled on a
Actual cash value basis
Insurers often publish their standard rates in their manuals. These general rates are determined by:
Actuaries
All of the following statements regarding the structure of a property policy are correct, except
Additional coverages are added to the policy for an additional premium
A basic form dwelling policy does not include which coverage
Additional living expenses incurred after a direct physical loss
An insurance company is organized under the laws of the United Kingdom, and is authorized to do business in New York. In New York, what kind of insurer is this?
Admitted alien insurer
Consumers 10th and seek insurance for larger risk with a higher probability of loss, which are harder to insure, rather than average risks that have a lower probability of loss which are more favorable for insurers. This describes which insurance principal
Adverse selection
An unendorsed garage coverage form does not provide
Advertising liability coverage
Under employer liability coverage, the doctrine of dual capacity applies to which of the following
After an employee is injured during the course of employment, the employee brings action against the insured in a capacity, other than as an employee
The maximum amount payable for all losses within a policy period Is known as the
Aggregated limit
Under a legal insurance contract, the insurer and insured exchange unequal values, as the values received by each party, depends on the uncertainty of a covered loss occurring during the policy period. This describes which type of contract?
Aleatory contract
When added to the business auto policy, the mobile equipment endorsement
Allow scheduled mobile equipment to be considered covered autos
An insured slips on icy patch in the road and collides with a tree. The insureds personal auto policy will provide coverage as long as the insured:
Allows the insurer to inspect the damage before repairs
Which of the following scenarios would be covered by E&O insurance
An agent neglects to renew a customer's policy after they paid the premium
Policyholder A's insurer is providing coverage on too many homes subject to wind losses. As a result, the company decides to reinsure those policies to share the high risk of wind loss. The reinsurance contract can best be described as which of the following?
An agreement between the insurance company and the reinsurer
A commercial crime policy would consider all of the following to be a messenger while having custody of covered property outside the insured premises,except
An armored car service hired to move property
Under the hired auto in nonowned auto liability endorsement on a business owners policy, which of the following would not be considered a hired auto
An auto owned by the insureds employee
Which of the following autos is covered under symbol nine of a business auto coverage form
An auto owned by the insureds employee, while in the insureds business
A personal auto policy is designed to cover
An individual's or their family's personal use of an auto
An insurer in Oklahoma may cancel, or nonrenew the personal auto policy of which of the following insureds
An insured is charged with driving under the influence and receive jail time
Under coverage A- bodily injury and property damage liability of a commercial general liability policy, which of the following would not be covered
An insured's employee is injured when a bookcase in the office falls on them
Which of the following situation requires a certificate of authority in Oklahoma
An insurer located in Georgia actively Solicits, right, and delivers insurance policies for the resident and risks located in Oklahoma
Under the duties in the event of a loss condition, if a fire Burns the home and property of an insured, what must the insurer to provide
An inventory of the damaged property
Coverage C of a homeowners policy includes property coverage for:
An owned camera used by the insured while on vacation in another country
Which of the following is considered a hostile fire
An uncontrolled campfire in the woods
Which of the following work related injuries may not be covered by Worker's Compensation insurance?
And employee from accounting is injured, while assisting an assembly line worker
As defined by a commercial general liability policy, and insured contracts includes all of the following, except
And indemnification agreement regarding property damage arising out of demolition operations affecting a railroad crossing
Which of the following statements regarding types of property loss is incorrect?
Direct losses include additional living expenses
An insurer in Oklahoma may cancel, or nonrenew the personal auto policy of which of the following insureds
And insured is charged with driving under the influence and receives jail time
Theft specifically defined as
Any act of stealing
An employee for a corporation does not only car, but they are furnished with a company car. The drive other car-broadened coverage for the named individual endorsement on the corporations business auto policy may be used to provide which of the following coverages for the employees use of a rental car?
Any coverage scheduled on the endorsement
Commercial crime policies define theft as
Any unlawful taking of property
If the public or third-party is falsely led to believe that an agent is able to perform a certain duty, this is known as the producers
Apparent authority
D does not agree with the insurance companies, value of property damaged as a result of D's recent property loss. Which of the following conditions establishes the producer D and the insurance company must use to settle this issue
Appraisal
Under inland, marine insurance, controlled lines, refer to forms that
Are filed with state insurance departments
Business liability coverage provided under section 2 of the BOP includes coverage for defense cost, which
Are paid in addition to the limits of liability
Under the mortgage clause of a property policy a mortgage is given the right to do all of the following except
Assign the policy to another person with the insurers permission
M. has a liability policy, ensuring M.'s flower shop. The buyer ask if M. can transfer the liability policy as a part of the cell which condition prevents him from making this transfer without the insurers consent.
Assignment
W plays hockey on the weekends and was injured while defending the goal. Which of the following defense could the owner of the ice rink used to avoid liability with w's injuries
Assumption of risk
Under a commercial general liability policy, the earned premium used in a premium audit to compute the final premium is determined at what point in time?
At the end of the policy period
Under a commercial crime policy, the definition of securities includes all of the following except
Bank notes Securities include negotiable and non-negotiable instruments or contracts representing money or other property, including tokens, tickets, revenue stamps, other stamps in current use, and evidences of debt in connection with charge or credit cards. Bank notes are included in the definition of money.
Of the dwelling policy forms, which one does not cover a lost cause by accidental discharge of water from a refrigerator located in a cover dwelling
Basic form DP-1
An insurance commercial auto's are insured on the business auto coverage form with comprehensive coverage. After a total theft of a covered private, passenger auto, the insured incurs, temporary transportation expenses. Coverage for these expenses:
Begins 48 hours after the theft
When owned by the insured contractor, all of the following items of property can be protected by the contracts equipment floater except
Blue prints
Commercial general liability policies would cover all of the following, except
Bodily injury arising out of the insureds dram shop liability
Business liability coverage provided by the BOP exclude coverage for all of the following except
Bodily injury to a customer as a result of the use of reasonable for us to protect them
Under the spoilage coverage endorsement of a commercial property policy, the insured may protect their perishable stock from lost due to
Breakdown or contamination and power outage
Under the equipment breakdown protection coverage form, which of the following is covered cause of loss for any coverage the insured selects
Breakdown to covered equipment caused by metal fatigue
Company ABC has several construction projects occurring at the same time, and the company wants coverage for the building during construction. If company ABC what's the limit of insurance to be adjusted monthly, depending on the progress of construction, which form will their agent recommend?
Builders risk reporting form
A blanket limit of insurance could apply to any of the following risks except
Building coverage for one building at a single location A blanket limit can insure more than one property for a single amount of coverage. The multiple properties can refer to multiple types of properties, such as coverage for building and coverage for personal property, multiple locations, such as coverage for two buildings at two different locations, or both such as a building and personal property for two buildings at two different locations. A limit for a single item of property would be a specific limit.
The taking of property from inside the premises by a person committing forcible entry defines a
Burglary
Which type of commercial auto policy would be best suited for a company whose employees use their own vehicles to make sales calls
Business auto coverage form
Common types of property insured by the commercial inland marine coverage part include all the following, except
Exports traveling over water
Collapse is not covered under which of the following property forms
Causes of loss- basic form
In Oklahoma a commercial policy that has been in effect for more than 45 days cannot be canceled for which of the following reasons
Change in location of the insureds property
Under commercial auto policies, and auto can include a self-propelled vehicle with permanently attached
Cherry picker
And workers compensation insurance classifications are used to
Classify employers, with similar exposures to determine the rate and premium basis
Which of the following types of liability limits represents the maximum amount payable for a single occurrence, without regard for the number of claimants
Combined Single Limit
The nationwide marine definition specifies risk that may be written under marine insurance. All of the following may be insured under marine policies, except.
Commercial buildings
Coverage for a catastrophic exposures commercial businesses may face is provided by which kind of policy
Commercial umbrella liability policy
A business that carries people and property belongings to the general public for a fee is also called a
Common carrier
General damages are those that
Compensate an injured party for suffering, loss of consortium, and similar types of losses
When an employee days as a result of an occupational disease, which of the following statements regarding Worker's Compensation benefits, is true
Compensation will be provided to the employee surviving, spouse and children
Under a commercial crime policy, which of the following is NOT excluded by the policy
Compensatory damages arising directly from a covered liss
Under a commercial crime policy, which of the following is not excluded by the policy
Compensatory damages arising directly from a covered loss
ABC company includes business, income and extra expense coverage on its equipment breakdown protection coverage part. Because this coverage is selected, the insured must
Complete and submit an annual report of values form to the insurer
ABC Industries contracts with municipal governments to build bridges, viaducts, and similar engineering projects. If a bridge completed in the prior year by ABC industries were to collapse, the company would be exposed to what kind of legal liability exposure.
Completed operations liability
The standard builders risk coverage form with a limit of insurance that reflects the anticipated replacement value of the covered buildings, and structures is written on what basis
Completed value
Under workers compensation insurance, which of the following statements regarding temporary partial, disabilities, is not correct
Disability means that the injured employee will never return to the previous employment
The electronic data processing coverage form typically provides coverage for which of the following items of property used for commercial purposes
Computer hardware, data, and media
When an injured failed to disclose known facts in an application for insurance, they might be guilty of
Concealment
An injured's home is insured on a homeowners policy during a storm, a tree falls and crashes into the side of the home. The homeowners policy states that the insured must promptly notify the insurer of the lost the requirements for prompt notice of loss is found in the policy's:
Conditions
Liberalization, subrogation, and other insurance are all found, in which section of a property or casualty insurance policy
Conditions
As defined by commercial general liability policies, your product is defined to include
Containers and packaging
A contract prepared by one party and submitted to the other party on a take it or leave it bases without negotiation is called a
Contract of adhesion
Which term describes the equal sharing of a loss by two or more insurers until the loss is paid or until each insurer has exhausted Its limits of insurance whichever comes first
Contribution by equal shares
Which of the following prevents recovery for injuries caused by a negligent party if the claimant was also negligent
Contributory negligence The contributory negligence defense denies payment to an injured party if they were partly at fault.
When added to a commercial property policy, which of the following would not be covered by the ordinance or law endorsement
Cost of fines due to the enforcement of building codes
Under the equipment breakdown coverage form, which of the following describes expediting expenses
Cost of repairs that shorten the period of restoration
Insureds who have flood insurance through the NFIP may qualify for coverage D , which provides up to $30,000 for
Cost that result from compliance with a local floodplain management laws or ordinance
Detach structures on the insured premises are included in which coverage under a dwelling policy
Coverage B
Policyholder M ensures, an owner occupied, single-family residence under a special form dwelling policy DP-3 with a limit of $100,000 if the dwelling is damaged in a fire, what policy coverage will pay for M's extra cost to stay in a motel and board M's pets well the fire damage is being repaired
Coverage E
Which of the following would be found in section 1 of a commercial general liability policy
Coverage for bodily injury and property damage liability
Coverage provided by standard property policy contains all of the following policy terms, except
Coverage is provided for losses, resulting from the quality of the property that causes it to destroy itself
Which of the following is correct about limits of liability applicable to aviation liability, insurance
Coverage may be limited by per passenger or per person sub-limit
Life stock is not eligible for coverage, under which cover causes of loss option available to farm property policies
Covered causes of loss-special
In the dwelling program, which form would cover in owned mobile home permanently affixed to a foundation
DP-1 only
Which of the following claims would be covered under DP-3
Damage by vandalism to a dwelling vacant for 30 days before the loss
Under part A of a personal auto policy, which of the following losses would be covered?
Damage to a neighbor's parked car
Which of the following is not covered under the equipment breakdown protection coverage form
Damage to equipment during a break down test
Which of the following claims would be covered by collision coverage under part D- coverage for damage to your auto of a personal auto policy
Damage to the insured autos bumper when the auto crashed into a tree
Under section 2 of the business owners coverage form, which of the following is excluded from coverage
Damage to the insureds property or work
Which of the following is covered by the hired auto and nonowned auto liability endorsement on a business owners policy
Damage to the property of others, arising out of an employees use of a nonowned auto
The part of an insurance policy that states where the risk is located is the
Declarations
Making any false, oral or written statements, intended to injure someone in the insurance business is known as which of the following prohibited practices
Defamation
Under coverage B, a commercial general liability policy provides coverage for all of the following, except
Defamation of another company's products that takes place on a chat room hosted by the insured
Under commercial auto policies, all of the following are common exclusions for liability coverages except
Defense cost
When firefighters extinguish a house fire with water, the water damage is covered a
Direct loss
Which commercial crime form would provide coverage for a loss that did not necessarily happen during the policy period but was revealed during the policy period?
Discovery form (discovery period is normally 1 year)
Under the auto dealers coverage form, section 3-acts, errors or omissions liability coverage is provided coverage for damages an insured must pay to do a negligent act, error, or omission arising out of any of the following, except
Discrimination that violates a customer civil rights
After canceling a commercial crime policy with one insurer, the insured obtains another policy written in the loss sustained form from another insurer. The new policy is effective as of the prior policy la cancelation date in order to avoid a gap in coverage. For a loss to be covered by the new policy, the loss must occur
During the policy period of the prior policy or durning the policy period of the new policy
Dwelling program may provide coverage to which of the following residences
Dwellings used for incidental business
Under the other insurance condition, went to property, policies, cover the same property on a pro rata basis, How is a loss apportioned?
Each policy will share losses, proportionately according to the total insurance provided for the property
Under the BOP, which of the following is not an optional coverage
Electronic data
All commercial umbrella liability policies require underlying insurance to be in place in order to provide coverage, including all of the following coverages, except
Employee theft
The day after Z was terminated from a job at a local community bank, Z was still able to use access codes to initiate a series of unauthorized transfers to Z's personal accounts. Which of the following Commercial Crime Insuring Agreements would this loss be covered under?
Employee theft
Which of the following statements regarding workers compensation laws is not correct
Employers are liable for injuries, a current outside the course of employment
Unlike the broad form, the special form HO-3 does which of the following
Enters the dwelling and other structures on an open perils basis
Under the farm property coverage forms, the definition of farm personal property includes
Equipment, supplies, and products of farming
A professional liability insurance policy that protects an insurance producer against their liability for clients financial loss is known as which of the following
Errors and omissions policy
Worker's Compensation laws regulating the benefits owed to most workers who sustain workplace injuries are
Established at state level
When underwriters select risks, their goal is to:
Estimate a normal range of losses for the risk classification, and select risks that will meet those expectations
Estoppel is defined as which of the following
Estoppel prevents a party from denying a fact, if the fact was admitted to be true by a previous action
Under the farm liability coverage form, coverage is not provided for bodily injury or property damage arising out of the insureds custom farming activities when the insureds custom farming receipts
Exceed $5000 for the 12 months immediately preceding the occurrence
What is the name for a type of policy that does not pay benefits until the limits of the primary policy has been exhausted
Excess policy
Which policy provision omit certain Risk from coverage
Exclusions
Manufacturer, wholesaler, or retailer all have potential legal liability associated with a product that may arise from each of the following, except
Expected or intended injury
Under a commercial general liability policy, which of the following would cause the insureds legal liability associated with a product to be excluded from policy coverage
Expected or intended injury
Under a personal umbrella liability policy, the insurer covers all of the following defense, expenses in addition to the limit of liability, except
Expenses incurred by underlying insurer that defends the insured against a covered claim
Common types of property insured by the commercial inland marine coverage part include all of the following, except
Exports traveling over water
When a client's Homeowners policy application is rejected by an insurance company due to underwriting rules, an insurance agent may request coverage under which of the following?
FAIR Plan
Insurer EFG wants to cede several risks to a reinsurer. Before they can be ceded, insurer EFG and the reinsurer negotiate each risk separately, and the reinsurer can either accept or reject each risk. This is known as:
Facultative reinsurance
The national flood insurance program is administered by
Federal Emergency Management Agency (FEMA)
A business owners liability regarding ERISA responsibilities is covered by which policy
Fiduciary liability policy
All of the following types of property are covered under coverage G- Barnes outbuildings and other farm structures on a farm property policy except
Field and pasture fences
Which of the following losses would be covered under all dwelling forms
Fire damage to building materials and supplies that are located on the insured premises
The Truckers Coverage Form is designed for:
Firms in the business of transporting goods or commodities
T's office condominium is covered under a condominium commercial unit owners coverage form. Which of the following is not covered on a primary basis
Fixtures owned by the condo association
If an insurer is incorporated in Rhode Island, but primarily does business in New York, what type of insurer would be considered in New York?
Foreign
A restaurant discovers that one of its suppliers has changed the amount payable on a check they issued. Under which Commercial Crime insuring agreement would this loss be covered?
Forgery or Alteration
A travel agency discovers that is has been charged for payments to a print shop drawn on checks written by an unknown third party masquerading as the travel agency comptroller. Under which commercial crime insuring agreement would this loss be covered
Forgery or alteration
When a property insurance policy states that damage property will be replaced with other property that performs the same function similar efficiency but is not identical to the damaged property, the policy is written on which of the following basis
Functional replacement cost
Loss of money or securities due to fraudulent written instruction to a bank to pay funds from the insured's account would be covered under which Commercial Crime Insuring Agreement?
Funds transfer fraud
Which of the following aggregate limits apply to coverage provided by commercial general liability policies?
General aggregate limit and products-completed operations aggregate limiy
An ocean vessel is transporting cargo. in order to save the ship and crew, the cargo must be thrown overboard. The lost cargo due to voluntary jettison is then apportioned between the ship on her, and all the affected cargo owners. This describes which type of loss.
General average loss
Under the common property coverage part of a commercial package policy the causes of loss- broad form will insure against all of the following perils, except
Governmental action
Driving while under the influence of alcohol is an example of
Gross negligence
The outdoor property coverage extension available on a business owners policy will not pay for which of the following
Growing crops
In bonding the role of the surety is to
Guarantee fulfillment of the bond in the event the principal defaults
In bonding, the surety is also known as the:
Guarantor (The three main parties to a surety bond are the obligee -- the person who will be indemnified, the principal -- the person whose performance is being insured, and the surety -- the party that guarantees payment to the obligee if the principal fails to perform.)
Which form is designed for Tenants?
HO-4 form is intended for tenants of rental dwellings and apartments
Aviation insurance office, which of the following coverages
Hull and liability coverages
Yacht policies provide what kind of coverage
Hull coverage and protection and indemnity coverage
On the broad form DP-2 , trees, shrubs, and other plants are protected against all of the following causes of loss, except
Ice falling from a plane - falling objects, which is not covered, perils under the tree shrubs, and other plants coverage
When an insurer pays for a physical damage loss covered by part D of a personal auto policy, all of the following are true, except
If the insurer returns a stolen car to the insured, it does not have to pay for damage that resulted from the theft
Commercial general liability policies provide coverage for:
Liability arising out of the insured's operations
What is the term for tangible property that cannot be used because it contains the insureds product or work that is defective, inadequate, deficient, or dangerous?
Impaired property
As per the agency contract, a producer has the authority to solicit insurance applications from applicants for the insurer. Through the contract does not directly say so, the agent is also able to collect premiums and use the insurer's logo on business cards. Collecting premiums and using the insurers logo represents the producers:
Implied authority
An insured rents a space for their business and has property coverage on a CPP through the business and personal property coverage form. Business personal property coverage under the form protects what items of property.
Improvements and betterments made by the insured to the building
Which of the following statements is true regarding the eligibility a flood insurance
In order to qualify for a federal loan, the property owner must purchase flood insurance if the property is located in a flood area
Which of the following statements is true regarding the eligibility of flood insurance
In order to qualify for a federal loan, the property owner must purchase flood insurance if the property is located in a flood area
Which of the following statements is true regarding the eligibility of flood insurance?
In order to qualify for a federal loan, the property owner must purchase flood insurance if the property is located in a flood area
Reinsurance is useful for insurers, because it does all of the following, except
Increases premiums for average risks
A sole proprietor with a business auto policy can add personal auto coverage for their use of a covered private passenger auto, through which endorsement
Individual named insured endorsement
Under a homeowners policy, personal liability coverage would exclude coverage for all of the following injuries, except
Injury to a guest who falls down the stairs
Assuming the required underlying policies are in place, a personal umbrella liability policy would cover all of the following liability claims, except
Injury to a third-party after fuel escapes from a fuel system
Good being transported, would be covered by which of the following types of insurance
Inland marine
When an individual faces the risk of economic class in the event of property damage to this indicates which of the following
Insurable interest
When an individual faces the risk of economic loss in the event of a property damage, this indicates which of the following
Insurable interest Typically, if there is a risk of financial loss, there is an insurable interest.
An insured has two primary property policies on their home and both policies have other insurance conditions a specify pro rata liability coordination of coverage. The policy with insurer a has a $100,000 limit the policy with insure B has a $200,000 limit in the event of a covered loss equaling in $45,000 how will the insurers settle the loss?
Insure a pays $15,000. An insurer be pays 30,000.
In order for coverage for the increased cost of construction to apply, a business owners policy must
Insure the building on a replacement cost basis
And Oklahoma, which of the following statements is false, when respect to an insurer paying claims
Insurers must respond within 90 days to any pertinent written communication from a claimant
In Oklahoma, which of the following statements is false, with respect to an insurer paying claims
Insurers must respond within 90 days to any pertinent written communication from a claimant
Which section list the perils insured against by a property insurance policy
Insuring agreement
A nonowned auto, as defined by the hired auto in nonowned auto liability endorsement on a business owners policy would include an auto that
Is owned by an employee and uses for the insureds business
Agents have all the following responsibilities, except:
Issue insurance policies
All of the following statements about liability coverage provided by a business auto coverage form are correct, except
It covers injuries to employees
Which of the following statements regarding the commercial articles coverage form is correct
It covers property used for business purposes, such as cameras and films
The CGL's general aggregate limit does not cover which of the following
Liability associated with a recalled product
And insurance a commercial unit for their business and has a commercial property coverage under the building and personal property coverage form. The unit is considered vacant when
It does not contain enough business personal property to conduct customary operations
All of the following statements regarding the voluntary compensation endorsement on a Worker's Compensation insurance policy is correct except
It exempt employers from state Worker's Compensation law
Which of the following best describes a liability policy that is written on a primary basis
It is the policy that pays first with respect to other policies
Which of the following statements regarding the trip transit coverage form is correct
It is used to insure single shipments
Which of the following is true regarding the personal liability supplement
It provides coverage for claim expenses, first aid expenses and damage to property of others
The voluntary compensation endorsement under workers compensation insurance is best described as doing which of the following
It provides coverage to employees or other persons who are otherwise exempt from receiving Worker's Compensation benefits
Which statement regarding the national flood insurance program is incorrect
It provides unlimited insurance coverage for qualified property owners
K owns a rental property that is insured on a basic form dwelling policy with extended coverage and VMM. Which of the following best describes how theft is covered by the policy
K must purchase the limited the coverage endorsement to have theft coverage
An insured's property is stolen, and the loss is covered by the insurer. A few weeks after the insured receives the claim payment, the stolen property is located and returned to the insured. The insured can.
Keep the claim payment and surrender be returned property to the insurer
Which of the following is not covered under coverage A of a homeowners policy?
Land on which the dwelling is located
Under coverage, a of a dwelling policy, all of the following are covered, except
Land, including the land on which the dwelling is located
Which of the following pearls is always excluded under the farm property coverage form
Landslide Under the earth movements, exclusion, earth, sinking landslide, and mine substance are all excluded perils, some exceptions are made to provide coverage for life stock lost by earthquake specifically, but landslides are still excluded In this exception.
Which of the following statements regarding self injuring Worker's Compensation insurance is correct
Large employers may be attracted to self insurance plans, because losses can be predictable and benefits are capped by statute
The national flood policy would not cover losses caused by which of the following
Leakage of underground water systems
All of the following statements about liability are true, except
Liability policies pay costs incurred by an insured to sue negligent third parties
Under the garage coverage form liability coverage is provided for all the following except
Liability resulting from product recall
Property policies will generally include all of the following pearls from coverage, except
Lightning
Farm personal property scheduled under coverage E of a farm personal property policy is subject to a limit of liability that is
Listed for each category of covered property
Under the commercial crime part, which of the following losses is covered by the computer fraud insuring agreement?
Loss of merchandise after fraudulent computer instructions cause the transfer of property to a thief
Which of the following is not covered by the inside the premises- robbery or safe burglary of other property insuring agreement
Loss of money after an ATM is hacked so that it dispenses money to the hacker
A lender who finances an auto loan could receive claim payments under which policy condition?
Loss payable clause
Which property policy condition indicate which loss valuation method applies to covered property?
Loss settlement
Which commercial crime form provides coverage for any loss, as long as it occurs during the policy period and is discovered up to 1 year after policy termination?
Loss sustained form
When personal property is insured on the schedule, personal property endorsement attached to a homeowners policy, it is subject to all of the following coverage terms except
Losses are subject to the section 1 deductible
After an earthquake damage is an insureds property , and earthquake policy would provide coverage for which of the following losses
Lost to furniture inside a structure held for rent
Which of the following is not among the powers and duties of the commissioner?
Maintaining ownership in insurance companies as they needed to enforce the insurance laws
Physical damage coverage on a personal auto policy may cover which of the following losses to your covered auto
Malicious mischief to the tires
An insured has a commercial package policy with commercial property coverages. When writing the property coverages, the building and personal property coverage form:
May be written to include building coverage, personal property coverage, or both as chosen by the insured
The equipment breakdown protection coverage form would consider which of the following losses to be a breakdown
Mechanical or electrical failure of pressure equipment
The each occurrence limit of a commercial general liability policy would apply to amounts paid for which of the following
Medical Payments
Andrea commercial general liability policy, which coverage pays regardless of fault
Medical payments coverage
Which of the following coverages is not provided by the personal liability supplement
Medical payments to a regular resident of the dwelling who sustains an injury
Under the commercial general liability coverage part of a commercial package policy, all of the following are automatically considered an insured, except
Members of a past partnership who are not shown as a named insured in the Declarations
Under 18 USC 1033-1034, interstate commerce means business done in any of the following jurisdiction, except:
Mexico
A false statement in an application for insurance is called a
Misrepresentation
The Worker's Compensation policy guidelines are providing other states coverage do not include which requirements
Monopolistic states may be listed on the information page
The owner of an antique store leaves valuable breakable items on display while heavy construction is taking place, believing that the items would likely be fine and if any pieces fall and break, they will be covered by insurance. this demonstrates which has
Morale hazard
An entity that owns a fleet of trucks on which of the entity ships its own goods should purchase
Motor Truck Cargo Owners Coverage Form
Which type of cargo policy would cover a person who owns their own truck and halls their own goods
Motor truck cargo owners coverage form
Under part three- other states insurance of a Worker's Compensation, and employers liability policy, if a state is not listed on the information page, but the insured begins work in that state ,the insured
Must notify the insurer within 30 days of beginning work in that state in order for coverage to apply
Under the business, income and extra expense coverage form, extra expense coverage applies to
Necessary, expenses incurred during the period of restoration to minimize the suspension of business
Which of the following is defined as the failure to act in a responsible and prudent manner
Negligence
An insured put $50,000 of covered inventory into storage, where are the items or later, damaged by covered peril what provision on the insureds property policy prevents the storage facility from collecting any payment from the insureds claim?
No benefit to Bailee
Which provision specifies that no coverage applies if the last benefits, a person who has Care, custody, or control of the insured's property?
No benefit to Bailee
Which term describes the situation when two policies covering the same property contains different policy periods
Non-concurrency
Liability coverage under a personal auto policy will cover which of the following vehicles
Non-owned golf cart
When the insurer elects too end coverage at the endpoint of a policy. The policy is said to be which of the following.
Nonrenewed
The insured is not required to do which of the following in the event of a property claim
Notify police, whether or not a law has been broken
A surety bond company provides a license and permit bond to a licensee to protect a government entity from potential financial loss. The government entity acts as which party?
Obligee
In surety bonding, the party to whom the surety is answerable and who benefits from the bond is the
Obligee
If a workplace injury occurs to an employee, the employers Worker's Compensation, and employers liability policy requires the insured to do all of the following, except
Obtain the insurer's consent before providing any medical services
When the extended non-owned coverage for named individual endorsement is added to a personal auto policy, it amends the policy to provide coverage
On an excess faces for the named individuals use of an auto furnished to them for a regular use
Inland marine policy is generally cover property that is
On land only
Under the discovery form available for commercial crime coverage, the latest a covered loss can be discovered and be covered by the policy is
One year after policy expiration
All of the following is true, regarding the broad theft endorsement on a dwelling policy, except
Only on premises coverage is available
The schedule personal property endorsement on a homeowners policy provides which of the following coverages to describe property
Open perils coverage
Which is not included in the general section of the Worker's Compensation policy
Other insurance
A bird hits and breaks a windshield of an insured vehicle. This is covered under which of the following coverages of the PAP? (Personal auto policy.)
Other than collision coverage
The NFIP would consider all of the following to be a flood, except
Overflow of a title water is covering only the insured's 1 acre property. The NFIP defines flood as a general or temporary conditions of partial or complete and inundation of land that is normally dry. It must involve at least 2 acres of the insurance property or both the insurance entire property and an adjacent piece of property
The national flood insurance program defines flood to include all of the following, except
Overflow of the insureds sump pump
The principle of indemnity helps avoid which of the following
Overpayment of a claim
A Worker's Compensation policy provides coverage for all of the following benefits owed to injured employees, except
Pain and suffering
In which section of the workers compensation, an employer liability policy with a provision related to the policy premium be found
Part five
Under which section of workers, compensation and employees liability policy with the insurance duties be found
Part four
In which section of Worker's Compensation and employers liability policy with the policy conditions be found
Part six
After a partial lost property that is included in a set the insurer may
Pay the difference between the actual cash value of the property before and after the loss
Which commercial property endorsement offers the best method of insuring a stores holiday inventory
Peak season limit of insurance endorsement
In a liability insurance, the most the policy will pay for a loss arising out of any one occurrence, regardless of overall policy limits is known as the
Per occurrence limit
The maximum amount that a policy will pay for a loss to an anyone, injured party, regardless of overall policy limits, is known as the
Per person limit
Which type of liability limit applies to Medical Payments coverage provided by homeowners policy
Per person limit
The insuring agreement of a policy describes
Perils that are covered
A worker suffers a spinal injury that leaves the worker, unable to work, with no possibility of improvement. This type of disability is called.
Permanent total
Which of the following coverages is not included in a standard homeowners policy?
Personal Injury Liability
For applicants who own a mobile home insurance, for the mobile home may be provided by all of the following, except
Personal auto policy with the miscellaneous type vehicle endorsement. (mobile home insurance is not available through a personal auto policy. The miscellaneous type of vehicle endorsement could be used to add coverage for a mobile home but not a mobile home. A policy written on the DP-1, a homeowners policy with an endorsement, or a separate mobile homeowners policy could all insure a mobile home)
Which type of standard policy includes coverage options that would not exclude damaged by flood
Personal auto policy's Part D- coverage for damage to your auto on a personal auto policy, provides coverage for flood, including flashlight under the comprehensive coverage option
Personal umbrella, liability policy would cover which of the following liability losses
Personal injury
The personal liability supplement provides all the following coverages, except
Personal injury liability coverage
And insured has a commercial property policy with the replacement cost optional coverage. Replacement cost coverage applies to all of the following types of property, except
Personal property of others
The insured has a Commercial General Liability policy written on a Claims Made form with an added supplement extended reporting period. Which of the following statements about policy limits is not correct.
Play products, completed operations hazard claim will reduce the general aggregated limit
An additional to conducting accounting business in their office, T also goes to clients offices for appointments. This represents which type of legal liability exposure.
Premises and operations
In the event that property is insured by both a condominium association, coverage form and condominium commercial unit owners coverage form, the condo associations insurance acts as
Primary insurance over the unit owners insurance
The person who agrees to fulfill the obligation of a surety bond is the
Principal
The implied warranty of sea worthiness is understood to mean which of the following
This shit must be seaworthy and have a competent crew
On a claims-made commercial general liability policy, coverage that pushes back or removes the retroactive data that was automatically applied to the policy is called:
Prior acts coverage
Under the Valuable Papers and Records Floater, all of the following types of papers or records would be covered, except:
Property held as samples
Under section 1 of a business owners policy, which of the following is covered under business personal property coverage
Property of others in the insureds, care, custody, or control
Which of the following types of property would be covered by the guest's property endorsement to a commercial crime policy
Property stores in a hotel safety deposit box by someone renting a room
All of the following are considered implied warranties in an ocean marine policy, except
Protection Clause
T has a personal auto policy with the towing and labor cost coverage endorsement. The endorsement will:
Provide payment for labor that is performed only at the site of disablement
A difference in conditions policy could be used to do all the following except
Provide standard fire policy coverages to high risk insureds who are unable to obtain property insurance
In the event of a liability claim meeting is the insured, the insured must perform all of the following duties for their liability coverage to apply, except
Provide their own legal defense
And insured owns a commercial building worth $400,000 and insurers it for $350,000 on a commercial property policy written on the building and personal property coverage form. If the insured plans to construct a new building on the premises, coverage, for the newly constructed property is.
Provided by coverage extension for up to $250,000
An insured with a personal auto policy on their car is using a nonowned auto to run errands. Under the insureds policy, liability coverage for use of the nonowned auto is:
Provided on an excess basis
In property insurance the direct cause of loss is known as the
Proximate cause
Which type of damages as ordered by the courts to punish a negligent party
Punitive
Which of the following incidents would not be considered theft
Quarterly inventory shows a shortage of 3 stock items
When an applicant waiver on purchasing insurance, the producer of us to provide bonds insecurities to encourage the applicant to purchase. This is an example of which unfair trade practice.
Rebating
When an applicant waivers on purchasing insurance, the producer of us to provide funds insecurities to encourage the applicant to purchase. This is an example of which unfair trade practice
Rebating
Under which of the following circumstances will workers compensation insurance provide benefits to a worker due to a work related injury
Regardless of negligence by the employee or employer
Which of the following businesses would not be eligible for coverage under the garage coverage form?
Rental car agency - The Garage Coverage Form provides automobile liability and physical damage coverage, as well as General Liability Protection for businesses in the sale, service, or storage of automobiles.
Damage to a building insured under a business owners policy is usually valued on which basis
Replacement cost
Which laws valuation basis often requires a policyholder to carry insurance to value
Replacement cost
Which of the following describes the loss settlement basis for a fire damage claim to a dwelling insured under DP-3 policy
Replacement cost up to the Coverage A limit The dwelling is covered under Coverage A. Losses to the dwelling and other structures are paid on a replacement cost basis, and losses to personal property are paid on an actual cash value basis.
Most statements made by an applicant on an insurance application are considered to be
Representations
B is a broker. As a broker, B can do which of the following?
Represents the insureds interest
A policy contains a provision stating that after the insurer pays for a covered claim, the insurer will reinstate the policy limit to its initial value. This is provided by which policy condition?
Restoration of limits
Groups that one insurance coverage for their liability, risk associated with theme parks, and go karts could obtain this coverage, from which insurer
Risk retention group
H has a homeowners policy with one limit of insurance indicated for coverage for the building in another lemon indicated for coverage for a personal property. H's policy is written, using what kind of property insurance limit?
Scheduled limit
H's jewelry is covered under coverage C they broad from home owners policy, but theft of jewelry is subject to a special limit of liability. If H what's better coverage for a $10,000 necklace inherited from their mother, including insurance, against more perils, and a higher limit of liability, which is endorsement might H's agent recommend
Scheduled personal property endorsement
Which coverage is not included a Worker's Compensation insurance policy?
Second injury fund
When an underlying policy does not cover a particular loss, the insured's Umbrella Liability policy will drop down and cover the entire loss, after payment by the insured of a:
Self-insured retention
A hazard is best defined as:
Something that increases the chance of loss
Medical expenses and loss of earnings awarded to the injured party are considered
Special damages
Medical expenses and loss of earnings awarded to an injured party are considered
Special damages Special damages are awarded to an injured party for actual and known expenses such as medical bills, loss of earnings, and the cost of repairing or replacing damaged property.
Endorsements may be added to an insurance policy to do any of the following, except
Specify the policies annual premium
Causes of loss- basic form applicable to the commercial property coverage part of a commercial package policy would not cover loss is caused by which of the following
Steam boiler explosion
A manufacturer is held liable is a product caused an injury whether the product was or was not effective. This describes what type of liability
Strict liability
Which commercial auto symbol is unique to the garage and auto dealers coverage forms
Symbol 30
The builders risk coverage form will not cover which of the following
Television antenna located on the roof
Which of the following is covered as business personal property under the BOP
Tenant's improvements and betterments Improvements and betterments include additions made a part of the building that the tenant-insured occupies but does not own, including structures that the tenant made at their expense but cannot legally remove. Permanently installed machinery equipment is considered part of the building. Personal property used to maintain or service a structure or premises, like outdoor furniture and carpeting, is covered by building coverage.
In a liability insurance, which of the following is a maximum amount that the coverage will pay for loss to any one person, regardless of overall policy limits
The Per Person Limit The Per Person Limit is the amount of coverage available for each person that sustains bodily injuries in an occurrence.
The policy territory of a personal auto policy is limited to which of the following
The United States is territories and possessions, Canada, and Puerto Rico
A dwelling in shirt on an HO-3 policy suffers a partial fair loss. Before actual repair on replacement is complete the insurer will pay up to.
The actual cash value of the damage portion of the dwelling
All automobile liability insurers authorized in Oklahoma, must participate in which of the following entities
The assigned risk plan
Which of the following statements is false with respect to the property and casualty guaranteed association
The associations assets in general public for the funds to carry out its obligations
Which of the following statements is false with respect to the property and casualty guaranty association
The associations assets in general public for the funds to carry out its obligations
The accounts receivable coverage, formal cover loss of records that result from
The collapse of a building damaged by fire
After a direct physical, lost the valuable papers and records coverage extension on a business owners policy provides coverage for
The cost to research, replace or restore, lost information
The court requires an insurer pay clean because it is to clear the language of a policy exclusion to be unresponsible in the eyes of a prudent policyholder this is an example of
The doctrine of a reasonable expectation
Which statement regarding coverage is provided by the national flood insurance program (NFIP) is incorrect
The dwelling form provides coverage for direct and indirect losses to cover property resulting from flooding
Coverage for steam boiler explosion is provided by
The equipment breakdown protection coverage form
Covered losses under a flood policy written through the national flood insurance program are paid by
The federal government
When an auto has two personal auto policies, with the same insurer, the insurers liability would not exceed
The highest limit of the two policies
Which of the following is not essential in determining, if an action is due to negligence
The injured party must prove the wrongdoer committed a crime at
An injury would not be covered by Worker's Compensation under which of the following circumstances
The injury occurs on the way to work
Under a homeowners policy, which of the following property losses to watercraft is not covered
The insurance kayak stolen from my public beach While insured is on vacation
Under which of the following circumstances, with the limited theft coverage endorsement, be used with a dwelling policy
The insured dwelling is tenant occupied
An insured protects their commercial property on the Building and Personal Property Coverage Form. The insured should consider purchasing the Value Reporting Form Endorsement if:
The insured has business personal property values that fluctuate, and needs protection for the values actually at risk
Which of the following best describes the purpose of the protective safety guards endorsement available for business owners policy's
The insured is required to maintain the safeguards listed in the endorsement, such as automatic, sprinkler systems or security services
Business liability coverage, provided by a business owners policy would cover which of the following
The insured is sued for injury to a competitor caused by an advertisement
The assignment condition of an insurance policy states that
The insured may not transfer ownership of the policy without the insurer's written permission
Coverage B- personal and advertising injury liability of a commercial general liability policy would cover which of the following claims?
The insured was accused of causing a customer to be falsely arrested
A sandwich shop discovers that someone has vandalized their customer bathrooms, causing $2,500 in damage. Under the shop's commercial crime policy, which insuring agreement or endorsement would pay for this loss?
The insured would need to file a claim for this loss under their commercial property or businessowners policy
All of the following are included in the declaration of a property policy, except
The perils insured against
Under part, one of a workers, compensation and employee liability policy, the insurer agrees to pay all of the following expenses, except
The insureds loss of earnings due to the insurers investigation
Which of the following statements about the term set out by the common policy conditions provided for commercial package policies is incorrect
The insureds rights and duties may be transferred to another party at any time without insurer approval
As provided by the common policy conditions, which of the following statements about commercial package policies is incorrect
The insurer has the obligation to perform safety inspections
Insurers are all subject to all of the following liability policy terms, except
The insurer is relieved of its obligations, if the insured is bankrupt
A joint venture is insured on a commercial general liability policy written on the claims-made form. Which of the following would NOT reduce the policy's general aggregate limit
The insurer pays a claimant injured by a product made by the the insured
Under section to have a homeowners policy all of the following are correct about the insurers duty to defend except
The insurer will not defend the insured against false or fraudulent claims
An insured owns a commercial building and a business personal property, insured on the business and personal property coverage form with a replacement cost optional coverage. After a total loss to the building, the insured chooses to rebuild at a different location. Which of the following best describes the insurers liability.
The insurer will pay the amount that would have been incurred if the building was rebuilt at the original location
When writing and enforcing a legal contract, the competency of the parties to enter into the contract may be determined by
The legal age of the parties
Which of the following is correct concerning the limit of insurance applying to liability coverage under the business auto coverage form
The limit is the most the policy will pay for any single accident
Hyundai commercial general liability policy written on the claims made form, which of the following claims is not covered
The loss occur during the mini tail, and the claim was made during the Midi tail
An insured has two coverage forms issued by the same insure that applies to a covered loss to a commercial auto. The two or more coverage forms or policies issued by us condition specifies that
The maximum payment is the highest applicable limit of insurance
Under a commercial general liability policy written on the claims-made form, when is a claim considered to be made?
The notice of the claim is received and recorded by an insured or the insurer
Which of the following is stated in the insuring agreement
The perils insured against
Under the equipment breakdown protection coverage form, which of the following statements about business, income and extra expense, coverage is correct
The period of restoration ends 5 consecutive days after the damaged property is repaired or replaced
Under a boat owners policy, which of the following is correct about the deductible
The policies deductible applies per currents
Which of the following is true regarding coverage A under the dwelling policy
The policy does not include coverage for wind loss of television antennas
Which statement regarding a Worker's Compensation insurance policy is not correct
The premium is paid by the employee
Market value loss valuation means that the insurer will pay
The price a willing buyer would pay under fair market conditions
What type of policy might cover an insurance producer failure to renew a policy that was eligible for renewal?
The producers error and omissions policy
In Oklahoma how is the insurance commissioner selected for office?
The public elects commissioner
Which of the following statements about a property policy is false
The purpose of coinsurance is to have the insured retain part of the risk
After a claim has been paid under the Businessowners Liability Coverage, what happens to the recovery rights?
The rights are transferred to the insurer
Q has a personal auto policy that insures a pick up truck for liability, medical bills, and uninsured motorist coverages, as well as collision coverage under part D. Q buys a new auto and wants the same coverage to apply to the new auto. A week after the purchase, Q's auto is damaged by covered collision, and Q remembers that the insurer had not been informed of the newly acquired auto. What quiet sit sit coverage from Q's PAP would apply to this accident?
The same coverage is provided to the pick up truck already on the policy would apply to the newly acquired auto for this accident
For ocean, marine, cargo coverage, FOB (free on board) point of destination is best described as which of the following
The seller is responsible for the property being transported until it has been delivered
Which of the following is an example of a physical hazard
The storage of flammables near a furnace
An ocean, marine insurance policy may become void if which of the following happens
The vessel does not comply with safety regulations
The standard fire policy requires all of the property insurance policies provide coverage for all of the following perils, except
Theft
When the named insureds personal effects are insured by the personal effects coverage extension of a business owners policy coverage is provided against all of the following perils, except
Theft
As defined by a commercial crime policy, which of the following is correct
Theft includes and unlawful taking of property, including burglary and robbery
Which of the following losses is covered by an unendorsed perform dwelling policy
Theft loss
Under the BOP, the Money and Securities Optional Coverage would cover which of the following?
Theft of contracts representing money
Under the jewelers block floater, which of the following losses can be covered by coverage option when indicated in the declarations
Theft of jewels stored in an on-premises show window that was smashed by burglars
Special form homeowners policies would cover which of the following theft losses
Theft of personal property after the dwelling was damaged by an earthquake
Which statement regarding a difference in conditions policy is correct
There is no standard DIC policy form
Which of the following statements about speciality and professional liability insurance policies is correct
They are in on non-standard forms
All of the following statements about torts are correct, except
They must be committed intentionally
Motels may not be insured by business owners policy, if they exceed
Three stories
A company that sells mobile equipment has its stock protected under an equipment dealers floater. Records of the companies business, including itemized, inventories, and sales records must be retained for at least how long after the policies end.
Three years
And insured has a business auto policy with the auto medical payments coverage endorsement. Necessary medical and funeral expenses incurred by an insured who sub stained bodily injury in an accident are covered by the endorsement for expenses incurred within
Three years
Under medical payments coverage, provided by a personal auto policy how long after an accident does the insured have coverage for resulting medical expenses?
Three years
Employee theft coverage provided by the commercial crime coverage part will apply
To an employee who, in collusion with others, embezzles securities belonging to the insured
Under a commercial general liability policy, which of the following statements about the radioactive data is not correct
To be covered, the occurrence Must Take Place While the policy is in effect
In Oklahoma evidence of insurability is required in which of the following situations
To register a vehicle and have a license plate issued
The BOP defines securities to include all of the following, except
Travelers checks
Insurer EFG Contracts with a reinsure. Per the contact, all of the insurer EFG's risks are automatically ceded to the reinsurer for a certain period of time. This reinsurance contract is called.
Treaty reinsurance
Under the dwelling program, which other coverage is not included on the basic form
Trees, shrubs, and other plants
A firm that only transports the goods of others for hire, rather than transporting its own goods, would purchase a:
Truckers Coverage Form
When an insurance company and insured cannot agree on the amount of the property loss, the person selected to help the two hired appraisers is called a
Umpire
Which of the following is a physical hazard
Uneven pavement in a sidewalk
Two individuals are at the same age, live in the same ZIP Code, and have similar risks however, one individual pay significantly less in premium, because they are friends with the producer. Which of the following unfair trade practice is the producer committing.
Unfair discrimination
Because only the insurance company makes a promise to fulfill an obligation by paying a future coverage claim the insurance contract is
Unilateral
Physical damage coverage under the business auto coverage form could include all of the following, except
Uninsured Motorists Coverage
In Oklahoma, which of the following statements is true regarding uninsured motorist coverage
Uninsured motorist coverage may be rejected by the insured in writing
When coverage applies to a property loss by any peril except those that are specifically excluded. The policy is written on which basis.
open perils
What is the coverage territory for bodily injury claims under employees liability coverage
United States, its territories, and Canada
Under a personal umbrella, liability policy coverage would be provided for liability arising out of
Unpaid acts of the insured, who is acting as a board member of a nonprofit
An insured has a business owners policy and wants coverage for physical losses to covered property, caused by the interruption of water, communication, or power supply services. This can be provided by which endorsement.
Utility services- direct damage
Insured locations under a homeowners policy includes all the following, except
Vacant farmland
Which of the following losses could be covered by the inside premises- theft of money and securities insuring agreement under a commercial crime policy
Vandalism to the building, occurring in the course of a burglary
The business owners coverage form to provide property coverage for all of the following except
Vehicle subject to motor vehicle restoration
A commercial building insured on the building and personal property coverage form is vacant for more than 60 consecutive days. Coverage is suspended for all of the following perils, except
Vehicles and aircraft
Which of the following constitutes the acceptance of an offer?
When an insurer issues a binder
Under the Basic Dwelling Form, when is damage caused by vandalism included as covered peril?
When the V&MM endorsement is added to the DP-1
Vandalism and malicious mischief losses are excluded under homeowners policy
When the property has been vacant for 65 consecutive days
The motor truck cargo carriers coverage form provides coverage for cargo in the carriers, care and all of the following circumstances except
While in transit overwater
Which of the following is considered a federal unfair and deceptive practice?
Willful overvaluation of land, when material to insurance coverage
When caused by covered peril, the unendorsed business auto physical damage, coverage form will cover
permanently installed stereo
Which of the following risks may be protected against by insurance?
pure risk
What is the correct risk management term for minimizing the chance of a loss?
risk reduction
Which of the following is not a specific cause of loss under garage keepers coverage provided by the garage coverage form
Windstorm The specific causes of loss option available for garage keepers, coverage insurance against fire, lightning explosion, theft, mischief, and vandalism wind. Storm is not a specific peril for garage keepers coverage, but it is included in a specified causes of loss coverage available under section 5-physical damage coverage, which applies to physical damage to autos they named insured owns hires, rents, leases, or Borrows
For workers compensation and employers liability policies, the rate and premium base is used to calculate the premium is determined by the employers
Work classification
Protection and indemnity coverage provides liability protection, for the insured ship owner in the event of any of the following losses, except
Work related injury to an office employee
Wrongful acts covered by an employment practices liability policy include all of the following, except
Workplace injuries
Which of the following is not a type of coverage provided under a farm liability policy
Workplace injury liability
The purpose of a Worker's Compensation assigned risk plan is to
Write Worker's Compensation coverage for employers who are unable to purchase coverage in the voluntary market
Under the HO-8 policy, the dwelling is valued on which basis?
actual cash value
And property and casualty insurance, when a form is attached to alter or add to policy provisions or conditions, it is known as
an endorsement
Negligence is what kind of tort?
an unintentional tort
Which of the following methods of writing insurance is used to provide insurance on properties at different locations, using single policy, and a single limit of insurance?
blanket
Personal injury includes all of the following, except
bodily injury
Which of the following is not covered under comprehensive coverage under the business auto coverage form
collision
The rules and procedures to be followed by the insured, and the insurer are found in which section of an insurance policy
conditions
In an insurance contract value that each party gives the other is called the
consideration
Which of the following best describes both the premium paid by the insured, and the promise by the insurer to pay the covered loss and defend the insured in a lawsuit
consideration
Which of the following is not covered under the installation floater
construction equipment
Under a commercial package policy, which of the following is found in the common policy declarations
deductible
Which of the following is considered property not covered under the building and personal property coverage form
electronic data
Which of the following would be an eligible risk under the BOP
fast food restaurant
Which of the following is not an implied warranty and ocean marine insurance contracts
full value
The CGL's general aggregate limit does not cover which of the following
liability associated with a recalled product
Bodily injury coverage may include payments for which of the following
loss of earnings
In which capacity would a bank teller have the responsibility of taking bank securities to a sister bank every morning?
messenger
Which type of state provides workers compensation insurance only through a state fund
monopolistic
The loss of property when the cause of loss is not known is considered:
mysterious disappearance
Q runs a stop sign, causing an oncoming vehicle to swerve and hit a tree. Q is guilty of.
negligence
An insurer that is not approved by the state department of insurance to transact insurance is called which type of insurer
non-admitted
The party for whose benefit a surety bond is written is the:
obligee, the beneficiary of a surety bond and is protected against the default of the principal
Because only the insurance company makes a promise to fulfill an obligation by paying a future covered claim, the insurance contract is:
unilateral
