AD Banker Comprehensive Exam
A building valued at $200,000 is insured for $150,000 with an 80% coinsurance requirement and a $1,000 deductible. After the building is totally destroyed, incurring debris removal expenses of $10,000, how much will the Building and Personal Property Coverage Form pay? A $159,000 B $154,000 C $155,000 D $160,000
A $159,000
In Colorado, within how many days must employers notify the Division and the insurer after an injury that qualifies for compensation and benefits? A 10 days B Immediately C 5 days D 3 days
A 10 days
Which statement is true of Section I of a Homeowners Policy? A A special limit of $1,500 limit applies to watercraft B Theft of a boat while away from the premises is covered C Coverage on utility trailers is limited to $2,000 D Coverage is provided on owned golf carts and owned snowmobiles off premises
A A special limit of $1,500 limit applies to watercraft
The part of a property policy that gives basic information such as the named insured, a description of the property, the location of the property, and the amount of premium involved, is known as the: A Declarations B Conditions C Insuring Agreement D Policy Provisions
A Declarations The Declarations contain the information that is specific to the individual and property being insured.
All of the following are excluded under the BOP, except: A Increased cost of construction B Losses caused by off-premises power failure C Losses caused by earth movement D Losses caused by mechanical breakdown
A Increased cost of construction
Inland Marine policies generally cover property that is in which of the following locations? A On land only B Shipped by sea to other countries C Being shipped by motor truck only D On ocean-going vessels once they reach inland river ways and ports
A On land only
The time period in which a lawsuit may be filed after the occurrence of a claim is referred to as: A Statute of limitations B Common law defenses C Statutory law D Limit of liability
A Statute of limitations
Which of the following is true regarding a negligence claim? A The claimant must demonstrate that the wrongful actions of the insured were the direct or proximate cause of the claimed injury or damages B An uninjured party to an accident is presumed to be negligent C In every accident there is one or more negligent parties D Every accident resulting in bodily injury or property damage is due to a negligent act
A The claimant must demonstrate that the wrongful actions of the insured were the direct or proximate cause of the claimed injury or damages Liability is not the same as negligence. Liability may be assessed without regard to fault, but a negligence claim has a higher burden of proof.
Which of the following perils would be covered under a Dwelling policy? A Water discharged by a plumbing failure B Overflow of water from a sump pump C Water accumulating below the surface of the ground D Water leakage in a driveway
A Water discharged by a plumbing failure
An insured has a Homeowners Broad Form with a $200,000 limit on the dwelling and the standard deductible. If the insured's $2,500 boat and trailer are stolen from their driveway, what is the most the insured will collect from the policy? A $1,500 B $1,250 C $2,500 D $2,250
B $1,250 The limit for watercraft including trailers is $1,500. The policy will pay the limit less the standard deductible of $250.
Policyholder C's debit card is stolen, and $1,000 is subsequently stolen from his account. How much will his HO-3 pay for the loss? A 0% B $500 C $250 D $1,000
B $500 Coverage up to $500 is paid for theft or unauthorized use of a credit card or electronic fund transfer card (debit card).
Select the person who is not considered an insured under an HO-3 policy? A A friend's 16-year-old daughter who is staying with the insured's family while going to school B A friend who is renting a bedroom in the insured's house since it is only three blocks away from work C The insured's resident uncle D The insured's daughter away at college in another state
B A friend who is renting a bedroom in the insured's house since it is only three blocks away from work Since the friend is a tenant, not a relative or a person in the care of the insured, he/she would not be an insured under the policy.
Which of the following types of coverage is considered Type I Coverage? A Title B Assigned Risk Auto C Inland Marine D Fire
B Assigned Risk Auto Fire, Title, and Inland Marine are Type II coverages.
All insurers must file financial statements by what date and how often? A By April 1 of every year B By March 1 of every year C By March 15 every 2 years D By April 15 every 2 years
B By March 1 of every year
Producers can receive the following forms of compensation for soliciting, procuring, or servicing policies: A Administrative fees, in addition to commissions B Commissions from an insurer C Service fees, in addition to commissions D Consulting fees, in addition to commissions
B Commissions from an insurer
Section III of the Businessowners Coverage Form includes: A Applicable endorsements B Common Policy Conditions C Property related coverages D Liability related coverages
B Common Policy Conditions
Policyholder M insures 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 costs to stay in a motel and board M's pets while the fire damage is being repaired? A Coverage C B Coverage E C Coverage B D Coverage D
B Coverage E
What is the name for a type of policy that doesn't pay benefits until the limits of the primary policy has been exhausted? A Common law policy B Excess policy C Liberalization policy D Surplus lines policy
B Excess policy An excess policy makes payment only after all other insurance in place exhausts its limits or denies coverage.
The Commissioner may impose a penalty against a person who has done the following, except: A Surrendering his license B Failing to pass the licensing examination C Forwarding insurance applications to an unauthorized insurer D Engaging in an unfair trade practice
B Failing to pass the licensing examination
Which type of construction material has a fire-resistance rating between one and two hours for walls, floors and roofs? A Noncombustible B Modified Fire Resistive C Joisted Masonry D Fire Resistive
B Modified Fire Resistive
Private Insurers are not allowed to write Workers' Compensation Insurance in which of the following states? A Voluntary B Monopolistic C Competitive D Compulsory
B Monopolistic Monopolistic States are states that provide Workers' Compensation benefits only through a state fund. These states do not allow private insurers to compete with the state fund.
The party for whose benefit a surety bond is written is the: A Principal B Obligee C Guarantor D Surety
B Obligee The obligee is the beneficiary of a surety bond and is protected against the default of the principal.
The Garage Liability section of the Garage Coverage Form covers which of the following? A Property in the care and custody of the insured B Property damage for which the insured is legally responsible C Product recall D Injuries covered by Workers' Compensation
B Property damage for which the insured is legally responsible
When a claimant can prove that a product caused an injury, the fact that the manufacturer will be held liable regardless of whether the product was defective or not, is considered which of the following? A Contingent Liability B Strict Liability C Vicarious Liability D Direct Liability
B Strict Liability
Which of the following is false regarding Temporary Partial Disability benefits? A The injured employee is able to do some work B The injured employee will never return to his/her previous employment C Benefits are calculated as a percentage of the difference in the wages D The injured employee's wages, while disabled, are less than before the injury
B The injured employee will never return to his/her previous employment It is expected that an employee with a Temporary Partial Disability will return to the same job after recovery.
During a tornado, a factory is destroyed when the roof blows off, causing electrical wires to short and start a fire, burning down the building. The proximate cause of the loss is: A Fire B Tornado C Hail D Electrical wires
B Tornado
In Colorado, an employer must notify the Division and the insurer after an injury that qualifies for compensation and benefits: A Immediately B Within 10 days C Within 5 days D Within 30 days
B Within 10 days An employer must notify the Division and the insurer within 10 days after an injury that qualifies for compensation and benefits.
A property purchased 10 years ago for $100,000 has a replacement value today of $200,000. It has depreciated 3% each year. What is today's actual cash value? A $100,000 B $70,000 C $140,000 D $200,000
C $140,000
Including debris removal, what is the maximum an HO-3 policy with a Coverage A amount of $250,000 will pay if a detached garage burns down? A $250,000 B $1,250 C $26,250 D $25,000
C $26,250
Employers may secure compensation for employees in all of the following ways, EXCEPT: A By obtaining and maintaining coverage through an authorized stock or mutual insurer B By obtaining a self-insurance Certificate of Authority from the Commissioner if over $1 million in annual payroll C By requiring employees to obtain their own coverage D By obtaining and maintaining coverage for payment of compensation with the Pinnacle Assurance state fund
C By requiring employees to obtain their own coverage
The Workers' Compensation Act does not apply to which of the following? A A school district B Every person, association firm, and private corporation engaging 1 or more persons in the same business or employment C Charity, fraternal, or religious, or social employers who are elected and earn less than $750 annually D A state's Department of Transportation
C Charity, fraternal, or religious, or social employers who are elected and earn less than $750 annually
Which of the following is not covered under Comprehensive Coverage under the Business Auto Coverage Form? A Glass Breakage B Fire and Lightning C Collision D Theft
C Collision
Which of the following defenses against negligence prevents recovery for injuries caused by a negligent party if the claimant was also negligent? A Assumption of risk B Comparative negligence C Contributory negligence D Intervening cause
C Contributory negligence
Under a Dwelling Policy, which is correct regarding coverage of trees, shrubs, or plants? A Theft of shrubs and plants is covered B The limit of liability is $1,000 for any tree, shrub, or plant C Damage by wind, hail, weight of ice, snow, or sleet is not covered D All vehicle damage to trees, shrubs, or plants is covered
C Damage by wind, hail, weight of ice, snow, or sleet is not covered
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? A Improvements B Furniture C Fixtures owned by the Association D Business personal property
C Fixtures owned by the Association In the event both the unit-owner's policy and the association's policy cover the fixtures, the unit-owner's coverage will be excess.
The transfer of the right of recovery from the insured to the insurance company is called: A Hold harmless B Assignment C Subrogation D Indemnity
C Subrogation
The Workers' Compensation Policy Conditions Section includes which of the following? A The supplementary coverages B Name, address, and type of business of the insured C The cancellation policy D The list of states where coverage applies
C The cancellation policy
Which of the following might be considered a negligent act? A Robbery of a sporting goods store B Assaulting a neighbor over a boundary dispute C Unintentionally renting a leaky boat to vacationers D Breach of an employment contract
C Unintentionally renting a leaky boat to vacationers
H's liability policy has the following limits: $35,000 per person, $350,000 per occurrence, and $2,000,000 aggregate. This year, three claimants file in the amount $15,000, $30,000, and $45,000. How much will the policy pay? A $90,000 B $350,000 C $35,000 D $80,000
D $80,000
All of the following are true regarding the structure of a property policy, except: A The bankruptcy condition does not relieve the insurer of its duties or obligations under the policy B The Declarations include the insured's name, policy period, policy limits and the amount of premium C The Exclusions itemize the perils not covered D The insured's duties in case of loss are found in the Insuring Agreement
D The insured's duties in case of loss are found in the Insuring Agreement The Conditions list the general rules and duties in the event of a loss under the policy.
Because only the insurance company makes a promise to pay a future covered claim, the insurance contract is: A Aleatory B Conditional C Bilateral D Unilateral
D Unilateral
Which of the following defines a tort? A An award to an injured party B A wrongful act C Liability assigned to one party for the conduct of another D An unforeseen event from which damage results
B A wrongful act
In Colorado, Workers' Compensation Disability benefits are payable if a disability is longer than how many days? A 6 B 14 C 3 D 7
C 3 For an employee to receive disability benefits payable as wages, the disability period must exceed 3 days from when the employee leaves work as a result of the injury.
Which of the following injuries would not be covered under CGL Medical Payments? A A child accidentally overdoses on cough medication he drank from his parent's medicine cabinet B A customer is injured by a flying lug nut while a mechanic is changing her flat tire C A retail customer slips and falls from a leaking pipe in the store's restroom D A carpet installer accidentally staples a customer's hand while installing carpet
A A child accidentally overdoses on cough medication he drank from his parent's medicine cabinet
Which of the following is covered under a Personal Auto Policy? A A vehicle driven with permission by an unlicensed driver B Liability for damage caused by a vehicle designed mainly for off road use C Intentional damage done by the insured D Use of a non-owned vehicle used without permission
A A vehicle driven with permission by an unlicensed driver
Under the BOP, the additional coverage for preservation of property is covered in which of the following ways? A Against open perils for 30 days B Against open for 60 days C Against the broad perils for 60 days D Against the broad perils for 30 days
A Against open perils for 30 days
Under the CGL policy, the earned premium used in a premium audit to compute the final premium is determined at what point in time? A At the end of the policy period B Monthly C At the time the premium deposit is made D At the beginning of the policy period
A At the end of the policy period
Which source of liability would a trucker be liable for under a Motor Carrier Coverage Form? A Cargo damage from overturn B Acts of God C Exercise of Public Authority D Faulty packing by a Shipper
A Cargo damage from overturn The Motor Carrier Coverage Form provides Trailer Interchange Coverage, which protects against physical damage such as comprehensive and/or collision coverage.
Which of the following is correct regarding products liability under the CGL? A Coverage applies to the bodily injury (BI) and property damage (PD) the product causes, but not to the product itself B Coverage applies to BI and PD caused by the product, and to damage to the product itself once in the purchaser's care, custody and control C Products liability coverage commences immediately upon sale of the product, before the purchaser leaves the insured's premises D Products liability coverage includes dram shop liability insurance
A Coverage applies to the bodily injury (BI) and property damage (PD) the product causes, but not to the product itself Products Liability Coverage under Commercial General Liability Insurance covers damage or injuries caused by the product, but does not cover damage to the product itself.
Who is required to prepare, implement, and maintain an insurance anti-fraud plan when transacting insurance in Colorado? A Every licensed insurer B Every licensed managing general agent C Every licensed third party administrator D Every licensed producer
A Every licensed insurer
Under the Common Policy Conditions of the Commercial Package Policy the insurer does not have the right to do which of the following? A Examine the insured's records at any time up to 5 years after the policy expiration B Inspect the insured property C Require written consent of insurer before the insured's rights can be transferred D Cancel the policy
A Examine the insured's records at any time up to 5 years after the policy expiration
Which of the following is not found on the Declarations Page? A Exclusions B Insured property address C Expiration date of the policy D Limit of liability
A Exclusions
Which statement is true regarding the Employers Liability Insurance Part of Workers' Compensation? A It provides coverage for employment-related liability outside of Workers' Compensation statute B It includes employees as additional insureds C It provides coverage for a worker injured in a state that is not listed on the Declarations D It is optional coverage not needed by most employers
A It provides coverage for employment-related liability outside of Workers' Compensation statute Employers Liability covers suits for injuries and their consequences that are not covered by Workers' Compensation.
While driving in another state with higher coverage requirements, which of the following sections of the PAP automatically provides the required coverage? A Out of State Coverage B Automatic Extension of Coverage C Other Insurance D Any State Coverage
A Out of State Coverage
The Replacement Cost optional coverage of the Building and Personal Property Coverage Form applies automatically to all of the following types of property, except: A Personal property of others B The building listed in the Declarations C The insured's business personal property D Merchandise held in storage or for sale
A Personal property of others
Section II (Liability) of the Garage Coverage Form covers which of the following? A Property damage for which the insured is legally responsible B Injuries covered by Workers' Compensation C Property in the care and custody of the insured D Injuries to an employee that are caused by a fellow employee
A Property damage for which the insured is legally responsible
All of the following are true about the Limits of Liability under Section II of the BOP, except: A The Products and Completed Operations aggregate limit is equal to the Liability and Medical Expense limit B The Damage to Premises Rented to You limit applies only to premises rented to the insured C The Medical Expense limit is a per person limit D The Liability and Medical Expense limit applies per person or organization for personal injury claims
A The Products and Completed Operations aggregate limit is equal to the Liability and Medical Expense limit
An organization that writes liability insurance to cover the liability exposure for the mining engineers that belong to its associations is: A A risk purchasing group B A risk retention group C The Industry Placement Facility D A mine subsidence insurer
B A risk retention group
Which statement is correct? A Most property policies include inherent vice as a covered peril B A spark that jumps from a fireplace and ignites a nearby rug would be deemed a hostile fire C Loss of profits resulting from a fire is a direct loss D Blanket coverage is commonly written when insuring property at a single location
B A spark that jumps from a fireplace and ignites a nearby rug would be deemed a hostile fire A hostile fire is one that leaves the area in which it was intended to be kept.
Which of the following is a duty required of the insured in the event of a loss under the PAP? A Give notice of the accident to the insurer within 5 days B Allow an inspection and appraisal of the damage before an auto is repaired C Immediately initiate repairs to the vehicle to protect it from further damage D If the vehicle was stolen, contact the insurer for permission to report the theft to the police
B Allow an inspection and appraisal of the damage before an auto is repaired
Which statement is true concerning Homeowners policies? A Animals, birds, and fish are considered covered personal property under Coverage C B Property usually located in a student dormitory is limited to 10% of Coverage C or $1,000, whichever is greater C Coverage is provided for Other Structures used to store business property owned by someone other than the insured or a tenant D Dwellings under construction are covered for theft
B Property usually located in a student dormitory is limited to 10% of Coverage C or $1,000, whichever is greater
An insured's CGL has a Products and Completed Operations Aggregate Limit of $100,000 with a $20,000 limit per occurrence. Following claims for two separate occurrences in the amounts of $35,000 and $25,000, how much of the aggregate remains for all other claims in the policy period? A $65,000 B $20,000 C $60,000 D $100,000
C $60,000 Only $20,000 is paid by the insurer on each of the two claims because the per occurrence limit is $20,000. This reduces the remaining Aggregate to $60,000 ($100,000 - $40,000 = $60,000).
The Basic (DP-1) Dwelling Form does not include which coverage? A Property removed to a newly acquired residence B Worldwide coverage on personal property with a limit up to 10% of Coverage C C Additional living expenses D Fair rental value
C Additional living expenses
A second negligent act that interferes with the chain of events leading to a loss is known as a(n): A Tort B Foreseeable consequence C Intervening cause D Loss of consortium
C Intervening cause An intervening cause prevents or limits recovery from the wrongdoer when a second, distinctly separate negligent act occurs after the original negligent act, but before damage occurs, and interferes with the chain of events that brings about the loss. The intervening cause must be unexpected and unforeseen.
Which of the following is not included in the definition of mobile equipment? A Vehicle on crawler treads B Forklift C Bulldozer D 3/4 ton pickup
D 3/4 ton pickup Mobile equipment includes land vehicles used mainly off public roads, including those with attached machinery or equipment.
Which of the following is allowed by a lender, as it pertains to a borrower, under a loan secured by real property to provide hazard insurance coverage on that insured property? A A lender can require a borrower to secure a loan in an amount exceeding the replacement value of the improvements on the property B There are no requirements pertaining to the borrowers loan rights in Colorado C A lender can require a borrower to secure a loan in any amount regardless of the replacement value D A lender shall not require a borrower to secure a loan in an amount exceeding the replacement value of the improvements on the property
D A lender shall not require a borrower to secure a loan in an amount exceeding the replacement value of the improvements on the property
Which of the following is not a reason for the Commissioner to demand an insurance license be surrendered? A A licensee moved from Wyoming to Nebraska B License was not renewed by the licensee C License was revoked by the Commissioner D A licensee moved from Denver to Ft. Collins
D A licensee moved from Denver to Ft. Collins The insurance producer license is the property of the state of Colorado and must be surrendered or returned promptly to the Commissioner within 15 days of cessation of Colorado residency, or in the case of a nonresident licensee, cessation of residency in the licensee's resident state.
A crime insurance policy written with a discovery form will cover which of the following losses? A A loss that took place during the policy period and was discovered within one year after the termination of the policy period B A loss discovered after the policy termination C A loss that occurred and was discovered prior to the policy period D A loss that occurred and was discovered during the policy period
D A loss that occurred and was discovered during the policy period
Which of the following vehicles is not considered an uninsured vehicle under Part C of the PAP? A A vehicle insured for less than the state's minimum required coverage B A vehicle that disappears after a collision C A vehicle whose coverage is denied by its insurer D A vehicle owned by the government
D A vehicle owned by the government
All of the following are considered uninsured motor vehicles, except: A A vehicle to which no liability policy applies B A vehicle to which the insuring company becomes insolvent C A hit and run vehicle D A vehicle that is being used as a residence
D A vehicle that is being used as a residence
Which term describes the maximum amount payable for loss from all occurrences within a policy period? A Per occurrence limit B Split limit C Single limit D Aggregate limit
D Aggregate limit
Theft is specifically defined as: A The loss of property when the cause is unknown B Threatening bodily harm to a bailee C Malicious vandalism D Any act of stealing
D Any act of stealing
An insurer can require a property owner to take all of the following actions as a condition for renewal of a fire policy, except: A Providing a defensible space around the structure B Cleaning out debris and leaves from gutters, downspouts, under decks and porches C Adding or enhancing fire suppression systems D Changing the building materials of the insured dwelling to more fire-resistive alternatives
D Changing the building materials of the insured dwelling to more fire-resistive alternatives
A mortgage company requiring the applicant to buy insurance from it as a condition for receiving a loan is an example of which of the following? A Misrepresentation B Discrimination C Commingling D Coercion
D Coercion Coercion - Entering into action resulting in an unreasonable restraint of or monopoly in the insurance business, such as a mortgage company requiring the applicant to buy insurance from it as a condition for receiving a loan.
Which of the following types of liability limits allow the most to be paid for a single occurrence without regard for the number of claimants? A Comprehensive limits B Split limits C Per person limit D Combined single limit
D Combined single limit Under a combined single limit policy, the policy will pay both bodily injury and property damage claims without regard to the number of claimants.
Procuring insurance on the life of one's employer is which of the following? A Rebating B Redlining C Discrimination D Controlled business
D Controlled business
Which of the following is true regarding Business Income Coverage under a BOP? A The monthly limitation is 1/12th of the limit of insurance applying to Buildings and Business Personal Property B The monthly limitation is 1/12th of the limit of insurance applying to Buildings C Coverage is for 12 months after the direct loss, starting 24 hours after the direct loss D Coverage is provided for up to 12 months after the direct loss, with no limit on the amount of monthly indemnification, and no limit of insurance
D Coverage is provided for up to 12 months after the direct loss, with no limit on the amount of monthly indemnification, and no limit of insurance
Exclusive remedy means that: A Only full time employees are eligible for Workers' Compensation insurance B The employer may decide which types of employee are eligible for coverage by a Workers' Compensation policy C Once an employee has been compensated for an injury by Workers' Compensation, the policy will not pay for any subsequent injuries D Employees covered by Workers' Compensation insurance cannot sue for work-related injury
D Employees covered by Workers' Compensation insurance cannot sue for work-related injury
Specified Causes of Loss under Physical Damage Coverage of the Business Auto Coverage Form includes all of the following, except: A Theft B Flood C Windstorm, hail or earthquake D Glass breakage
D Glass breakage
All of the following are coverage extensions under the Building and Personal Property Coverage Form, except: A Personal effects and property of others B Outdoor property C Newly acquired or constructed property D Inflation guard
D Inflation guard Inflation Guard is an optional coverage, not a coverage extension.
The Commissioner can refuse, revoke, or non-renew a licensee has committed any of the following, except: A Had a license suspended or revoked in another state B Failed to pay child support C Cheated on an insurance examination D Issued insufficient coverage to a customer through apparent authority
D Issued insufficient coverage to a customer through apparent authority
All of the following are true of subrogation, except: A It prevents the insured from collecting twice for the same loss B It allows the insurer to attempt collection from a third party to reimburse a loss C It helps the insurer control expenses and premiums D It allows the insurer to file suit against the insured
D It allows the insurer to file suit against the insured
Which statement is true about Crop/Hail Insurance? A It is reinsured by federal government B It only covers the peril of hail C It is not subject to any deductible D It covers only one growing season
D It covers only one growing season
Which of the following best defines a hazard? A It eliminates the chance of loss B It is a cause of loss C It increases the amount of loss D It increases the chance of loss
D It increases the chance of loss
Which of the following best describes a liability policy that is written on a primary basis? A It provides only basic coverage B It shares the loss with other policies covering the same loss C It pays only after other insurance covering the same loss is exhausted D It is the policy that pays first with respect to other policies
D It is the policy that pays first with respect to other policies
The owner of an antique store leaves valuable breakable items on display while heavy construction is taking place, believing that any pieces that fall and break will be covered by insurance. This demonstrates which hazard? A Physical hazard B Moral hazard C Speculative hazard D Morale hazard
D Morale hazard
Which provision stipulates that coverage will not benefit a party that is holding, storing, or moving insured property for a fee? A Limit of Liability B Claim Settlement C Assignment D No Benefit to Bailee
D No Benefit to Bailee The No Benefit To Bailee provision makes clear that the insurer has no obligation to a bailee, even if the bailment is to the benefit of the insured.
The Personal Auto Policy applies: A Only in the U.S., its territories, Canada, Puerto Rico, and Mexico B Only in the U.S. and its territories C Anywhere in the world D Only in the U.S., its territories, Canada, and Puerto Rico
D Only in the U.S., its territories, Canada, and Puerto Rico
Which of the following is true of medical payments? A Medical payments replace bodily injury coverage B The insured must be legally liable for coverage to apply C Medical payments, when made, are an admission of negligence D Payments are made without regard to negligence
D Payments are made without regard to negligence
The type of disability of an employee unable to work with no possibility of improvement is called: A Permanent Partial B Temporary Total C Temporary Partial D Permanent Total
D Permanent Total
ABC Industries contracts with municipal governments to build bridges, viaducts, and similar engineering projects. If workers from ABC Industries cause damage to a taxicab while pouring the foundation for a new overpass, which kind of liability exposure would this be an example of? A Products B Completed operations C Contingent liability D Premises and operations
D Premises and operations An insured business conducts its operations both at its own premises and elsewhere. If a business, or anyone acting on its behalf, causes bodily injury or property damage, the business may be considered legally liable for such injury or damage. CGL coverage is provided for the insured's legal liability for bodily injury or property damage arising out of the insured's premises or the insured's operations.
Which of the following is not an example of contingent liability exposure? A Owners and Contractors Protective liability exposure B Contractual liability exposure C Liability exposure of an insured's sub-contractors D Premises liability exposure
D Premises liability exposure
Which is true of the Personal Property of Others coverage provided by the Building and Personal Property Coverage Form? A The policy covers the property of others against loss by theft B Property of others is covered at up to $5,000 per described location. C The policy covers the interest of others in property that the insured is purchasing on an installment plan D The policy covers property of others that is in the care, custody, and control of the insured
D The policy covers property of others that is in the care, custody, and control of the insured
Under the property removed coverage extension of a Dwelling Policy, which of the following is incorrect? A The property is covered against direct loss from any peril B The extension does not change the Limit of Liability that applies to the property C Coverage applies up to 5 days under the DP-1, and up to 30 days in the DP-2 and DP-3 forms D The policy will not provide any coverage while insured property is being removed from endangered property
D The policy will not provide any coverage while insured property is being removed from endangered property
All of the following are true about surplus lines insurance, except: A Within 30 days, surplus lines producer must file an affidavit with the Commissioner describing coverage placed with a non-admitted insurer within 30 days B Each surplus lines producer must remit a 3% tax on the previous year's surplus lines premiums on or before March 1st of each year C To write surplus lines insurance in Colorado, a non-admitted insurer must be on the Commissioner's approved list that is issued each year on July 1 D The written record documenting the search for admitted insurance must be maintained by the producer for at least one year from the effective date of coverage
D The written record documenting the search for admitted insurance must be maintained by the producer for at least one year from the effective date of coverage
The premium can be increased under a property or casualty policy during the policy period if the insured has prepaid the premium, if which of the following occur? A There was no change in risk caused by the insured B The premium can never be increased on a property or casualty policy during the policy period if premium was prepaid by the insured C The premium can only be increased if the producer agrees to pay the difference to the insurer within 30 days D There was material misrepresentation
D There was material misrepresentation An insurer cannot increase premium or decrease coverage under a property or casualty policy during the policy period if the insured has prepaid the premium, except for material misrepresentation or a change in risk caused by the insured.
All of the following are true of liability policies, except: A They are designed to cover third party injuries or damages B They will pay sums that the insured becomes legally liable to pay C They do not cover medical expenses incurred by the insured D They will cover damage to the insured's own property
D They will cover damage to the insured's own property
When a building has physical contents but no occupants, the building is said to be: A Suspended B Uninhabited C Vacant D Unoccupied
D Unoccupied
Under the BOP, which of the following types of property is not covered? A Building materials, equipment or supplies located in the open B Tenants improvements made to structures not owned by the tenant C Business Personal Property located outside the building D Vehicles subject to motor vehicle registration
D Vehicles subject to motor vehicle registration
