Casualty 2

What is the standard personal liability limit under Coverage E of a homeowner policy?

$100,000

The insured has a $1,000,000 personal umbrella policy with a $5,000 retention limit. For a $7,000 liability loss not covered under the insured's personal auto policy, but covered under the umbrella policy, the insurance company would pay:

$2,000.

The ABC Corporation carries a Commercial General Liability policy with occurrence limits of $500,000 and a general aggregate of $2,000,000. The company is responsible for an accident that causes $400,000 property damage and $200,000 in bodily injury. The TOTAL amount collectible for this accident under the policy is?

$500,000 is correct. $500,000 is the per occurrence limit. The insurer cannot pay more than this limit for any one occurrence. After this claim is paid, the insured has $1,500,000 left of the aggregate limit for the remainder of the policy period.

A covered auto requires $700 in repairs because of damage done by a limb from a dead tree that fell on it. The auto's BAP coverage has a $100 comprehensive deducible and a $250 collision deductible. Assuming that the ACV and replacement cost of the vehicle is $700, the insurer will pay:

$600. Falling objects is a comprehensive loss and the deductible of $100.00 would apply.

If an insurance company in Wisconsin intends to cancel a Workers Compensation policy mid-term, how many days advance notice must be sent to the insured?

30 days

All of the following are true regarding supplementary payments provided by a Commercial General Liability policy, EXCEPT:

: It pays $50 per day for loss of earnings..

Under the discovery clause in the loss sustained policy, which of the following is covered?

A loss discovered up to one year after the policy expired but that occurred during the policy period

Which of the following injuries are covered under the medical payments section of an insured's CGL policy?

A shopper is injured while visiting a showroom owned by the insured.

The personal liability section of a Homeowners Policy covers which of the following?

Bodily injury or property damage caused by the personal activities of an insured..

On what basis is a liability policy written which addresses claims made during its policy period?

Claims made.

A business auto policy has a $100,000 limit of insurance for liability coverage. As a result of an automobile accident involving a covered auto, two people are injured. The first injured party sues the named insured and wins a $150,000 judgment. The insurer pays its limit of insurance. If the other injured party later sues the insured, the insurer will:

Deny further obligations to the insured as a result of the other injured party..

Which of the following would include a "superseded suretyship rider?"

Fidelity bond

The common definition of theft in commercial crime forms: I. Excludes mysterious disappearance II. Includes employee dishonesty.

I only.

When someone dies without a will they are said to have died:

Intestate

All of the following are included under the HO-3 "additional coverages", EXCEPT:

Loss of a good renter or a favorable lease arrangement.

An unendorsed businessowners policy would provide which of the following property coverages?

Open peril coverage.

The principle of indemnity is best illustrated by which of the following insurance policy clauses?

Other Insurance

Which of the following situations would be covered under bodily injury (BI) liability coverage?

Physical Impairment

Under the farm liability coverage, which of the following would be covered?

Products Liability for the Insured's Products.

The home business insurance endorsement is available to cover certain businesses under the homeowner program. Which of the following coverages cannot be included?

Professional Liability Coverage

Under which policy provision will an insurer pay for damage to a neighbor's window caused by an insured under a homeowner policy?

Property damage.

Surety bonds guarantee the fulfillment of specific obligations. Each of the following may be the subject of a surety bond, EXCEPT:

Protection of funds handled by employees

In terms of fidelity bonds, what does "name scheduled" refer to?

The bond covers only those persons listed by name on the bond's schedule..

The named insured has a business auto policy issued by Company A and another auto policy issued by Company B. Company A's BAP has a limit of insurance for liability coverage of $100,000. Company B's policy provides $25,000 of liability coverage. If both policies apply to an accident on the same basis, how much of a $100,000 liability loss will Company A pay under its BAP?

The correct answer is: $80,000..The two companies provide a combined limit of $125,000. Company A provides 80% of the limits in place. In case of a $100,000 loss, company A would pay $80,000.

Which statement is correct under the Commercial General Liability policy?

The insurer generally has the right to settle for damages

Which of the following is a correct statement regarding premium taxes on insurance policies issued by surplus lines insurance companies?

The tax and is paid by the insured and collected by the surplus lines agent .

Errors and omissions claims may be brought against insurance agents/producers by:

Their clients/insureds and the insurance companies with whom the agent/producer contracts