Adjuster quiz

With respect to commercial auto policies, the Garage Coverage Form provides liability protection for what 3 things

1.The insured's business products and work performed. 2.The insured's business premises. 3.The insured's business autos.

Authorized insurance companies are examined by the Commissioner at least once every

5 years

The commercial general liability coverage form excludes bodily injury or property damage that the insured has assumed under any contract or agreement. However, the exclusion does not apply to certain types of contracts, as long as the injury or damage occurs when?

After the execution of the contract.

Insurable interest in the property covered in a policy must be proven when????

At time of loss.

Which of the following statements regarding coverage for the flood and earthquake perils is true?

Both flood and earthquake are excluded perils in all property policies.

Under which type of coverage does the insurer agree to pay for bodily injury or property damage liability which the insured has agreed to assume under a written contractual agreement?

Contractual liability policy

The pro rata liability clause is designed to protect the principle of

Indemnity

What are 3 essential elements of a commercial package policy (CPP)???

Interline endorsements, Declarations page, and Policy conditions

One advantage of claims-made liability forms from the insurer's point of view is that.....

It prevents stacking of limits.

B&B Market was sued when an employee detained a person he believed to be a shoplifter, but the person turned out to be the meter reader. Which coverage would apply to this suit?

Personal and advertising injury liability

Coverage B- personal and advertising injury liability responds to claims arising from...

Suits alleging infringement of a copyright

In insurance, an offer is usually made when

The completed application is submitted.

which statement best describes agreement as it relates to insurance contracts? a) one party accepts the exact terms of the other party's offer. b)the intent of the contract must be legally acceptable to both parties c)all parties must be capable of entering into a contract d)each part must offer something of value

a) one party accepts the exact terms of the other party's offer

With respect to auto insurance, the term owned autos includes all of the following EXCEPT a)A pickup or van titled to and used in the named insured's business. b)Any private passenger auto titled to the named insured. c)A pickup or van acquired by the named insured during the policy period. d)Any private passenger auto leased to the named insured for a period of more than 6 months.

a)A pickup or van titled to and used in the named insured's business.

which would not be covered by an insured's uninsured motorist coverage? a)the insured causes a head -on collision with the car of an uninsured motorist. b)the insured's neighbor borrowed the insured's car and was hit by an uninsured motorist c)the insured's car is hit by someone whose auto insurer is insolvent d)the insured's son is struck by a hit-and-run driver

a)the insured causes a head -on collision with the car of an uninsured motorist.

An insured has a maximum limit of coverage available under her liability policy during a policy year, regardless of the number of claims made or the number of accidents. Her limits are restored at the policy anniversary. What type of limit does this insured have?

aggregate

when do binders expire?

as soon as the policy is issued

With respect to commercial auto policies, the Garage Coverage Form provides liability protection for all of the following EXCEPT a)The insured's business products and work performed. b)The insured's business income losses due to personal injury. c)The insured's business premises. d)The insured's business autos.

b)The insured's business income losses due to personal injury.

An insured has a homeowners policy and is required to be a member of the homeowners association in her neighborhood. The association's community house has burned down, and the insured has been assessed $1200 for her share of the rebuilding cost. How much of the assessment will her homeowners policy pay? a)None b)$500 c)$1,000 d)$1,200

c)$1,000

Agents, subagents, and counselors are required to maintain records of all insurance transactions for what time period? a)1 year b)3 years c)5 years d)7 years

c)5years

Insurance is a contract by which one seeks to protect another from a)Uncertainty. b)Hazards. c)Loss. d)Exposure.

c)loss

The garage coverage form is written to address the insurance needs of an insured in the business of selling, repairing, servicing, or storing automobiles. Which of the following coverages is NOT included in a garage policy? a)premises and operations liability b)product liability c)professional liability d)auto liability

c)professional liability

A liability policy that provides coverage for a claim or injury or damage only if the claim is first reported or filed against the insured during the policy period is called _________

claims-made form

Who will transport the property of anyone who hires them?

common carriers

Something of value exchanged between the insurer and the insured is considered an....

consideration

The insured purchased a $200,000 extra expense policy. If the percentages applying to the limit of insurance are 40%, 80%, and 100%, what would be the maximum payable for a 47-day loss? a) $200,000 b) $80,000 c) $120,000 d) $160,000

d)$160,000

When a mortgagee is named in a mortgagee clause attached to a fire or other direct damage policy a)The loss reimbursement will be paid to the mortgagee as their interest may appear. b)The mortgagee's rights of recovery will not be defeated by any act or neglect of the insured. c)The mortgagee may bring a suit in their own name to recover damages to covered property. d)All of the above are true.

d)All of the above are true.

Which of the following would NOT be considered a misrepresentation on the part of the insurer? a)Implying that term insurance has cash value b)Embellishing the benefits provided in the policy c)Overstating returns on policy dividends d)Backdating policies to secure a lower premium for the insured

d)Backdating policies to secure a lower premium for the insured

All of the following situations would be covered under a professional liability policy EXCEPT a)Failure of a doctor to render the quality of care that is customary in the medical field. b)An accountant's error that inflated a bid and caused a client to lose a major account. c)Negligence of an architect who designed an unsafe building. d)The failure of an attorney to properly defend a client due to his personal dislike of the client.

d)The failure of an attorney to properly defend a client due to his personal dislike of the client. (NOTE:intentional breach of duty would not be covered.)

To have insurable interest, what risk must the policy owner face?

financial loss

The major portion of the premium for an equipment breakdown policy pays for...

inspections and examinations. (NOTE:Inspecting the machinery to be insured is critical to the underwriting of equipment breakdown coverage. Finding flaws that could lead to losses and requiring corrective action is the purpose.)

When the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss, the coverage is said to be written as

stated amount

The inspections and surveys condition in a businessowners policy allows......

the insurer the right to inspect the insured's premises.