Connecticut All-Lines Except Workers Comp Adjuster Licensing Course

A business adjusting claims in CT w/out a license is subject to:

$2,000 or imprisonment for 1 year, or both

If the insured has to take time off work to help assist in the investigation of the claim, the policy will pay for actual loss of earnings up to:

$250/day

Under the homeowner forms, how much will be paid under claims expense for loss of earnings by the insured to assist the insurer in the investigation or defense of a claim?

$250/day

Under the BOP, apartment buildings are eligible, including residential condominium associations, along with offices, mercantile, service or processing agencies or contractors as long as they do not exceed:

35,000 sq. feet

The purpose of the Joint Underwriting or Joint Reinsurance FAIR Plan is:

A method of providing coverage for certain property risks unable to obtain coverage in the standard markets.

In Connecticut, each claims-made policy must contain:

A notice on the first page of the policy in either contrasting color or in boldface type stating that the policy is written on a claims-made basis.

An attorney will provide notice of deposition to an individual when the atty wishes to secure from that individual:

A recorded statement under oath

In the event of a loss under a personal auto policy, an insured is required to submit to the insurance company all of the following information, EXCEPT: a. An appraisal of the damaged property b. A list of any known witnesses. c. A notice of claim. d. Proof of loss statement if requested.

A, An appraisal of the damaged property

A valid contract must contain all of the following, EXCEPT: a. Be a written instrument b. Competent parties c. Legal purpose d. Valuable consideration

A; Be a written instrument

Which statement is true about the limits of liability under a Commercial General Liability policy? a. They are the maximum amounts to be paid in the event of a covered loss b. They are not part of reserves for pending claims c. If insufficient, they can be increased at the time of loss d. They represent payments under Supplementary Payments coverage

A; They are the maximum amounts to be paid in the event of a covered loss

The auto liability limits $100/300/50 are an example of: a. Split limits b. Single limits c. Aggregate limits d. Occurrence limits

A; split limits

Cyber liability coverage provides all of the following, EXCEPT

An employee intentionally downloading a program containing a virus onto the company computer which compromises customer information.

You have an HO-3 policy on your home. Coverage F will pay medical expenses for:

Anyone invited onto your property and injured while there

Which of the following is not specifically considered an unfair trade practice under the insurance code of most states?

Appointment of producers by unauthorized insurers

What is an insurance producer's "implied authority"?

Authority given by the principal to the agent that is not formally expressed or communicated

Under the conditions section of the BOP, all of the following would be considered vacant EXCEPT: a. A 100 unit apartment building of which 70 units are not rented. b. An office building containing two empty units and these two empty suites represent 25% of the total floor space. c. A mercantile building with a print shop on the ground floor but the second and third floors are not being utilized. d. A new building which has not been rented out at all.

B; An office building containing two empty units and these two empty suites represent 25% of the total floor space

Universal Foods buys the Chewy Cereal Company. After the purchase is completed, a well known actress sues Universal, claiming that her picture was used without her permission in a Chewy advertisement. The advertisement appeared some time before Universal acquired Chewy. Will Universal's Commercial General Liability policy cover this claim? a. Yes. It is a claim for invasion of privacy, which is covered as personal injury. b. No. Personal injury coverage with respect to newly acquired organizations does not apply to offenses committed before the acquisition. c. Yes. Universal is liable for actions of Chewy before the purchase took effect as they are assuming all obligations of the previous owner. d. No. There is no personal injury coverage under the policy with respect to newly acquired organizations before or after.

B; No. Personal injury coverage with respect to newly acquired organizations does not apply to offenses committed before the acquisition.

Homeowner policies typically provide coverage for all of the following, EXCEPT: a. Personal liability b. Personal injury c. Claim expenses d. Medical payments

B; Personal Injury

Which of the following amounts would be paid on a covered auto suffering a total loss? The retail value is $1,250 and the average trade in value is $1,000. a. $1,000 plus applicable taxes b. $1,500 plus applicable taxes c. $1,250 plus applicable taxes d. $2,995 plus applicable taxes

C; $1,250 plus applicable taxes

Which one of the following is not an example of an unfair claim settlement practice? a. Knowingly misrepresenting pertinent facts to claimants b. Failing to acknowledge communication within a reasonably prompt period c. Failing to examine a claimant under oath d. Not attempting in good faith to promptly settle a claim when liability is clear

C; Failing to examine a claimant under oath

Extended reporting periods under the general liability policy apply only to:

Claims-made policies

Entering into any agreement to commit, or by any concerted action committing, any act resulting in or tending to result in unreasonable restraint of the business of insurance is an example of:

Coercion

Two weeks after Paul's Perfect Pipe Plumbing repaired the toilet at Dan's house, the water feed line that was incorrectly installed, breaks and water ruins the walls, carpet and sub-flooring in Dan's home. Dan makes a claim for damages. How will Paul's CGL respond?

Completed Operations hazard of the CGL will pay for all of the damage caused by the water but will not pay the cost to reinstall the pipe as this was Paul's work

Convenience stores selling gasoline must have a minimum of ______ square feet in total floor area in order to qualify for the BOP? a. 2500 b. 3500 c. 4000 d. 3000

D; 3000

Which of the following would not be addressed by a court in the determination of a declaratory judgment?

Determine fault or monetary damages

The negligent act of the agent is imputed to the principal if the act occurred within the course and scope of the agent's employment. This means that the principal becomes:

Directly liable for damages to a third party caused by the agent (employee).

Barry's Vending, Inc. has a business auto policy (BAP). The owner, Barry, does not own a car since he always drives a company car. What coverage should be added to the BAP to provide Barry with liability coverage while driving a vehicle not owned by the corporation?

Drive other car coverage

A company has been hired to determine the extent of pollution damage and recommend methods of its removal. However, it fails to identify some of the pollutants. What coverage might this company need to cover their liability exposures?

Environmental errors and omissions coverage

The Connecticut Department of Insurance has established the necessary criteria for insurers applying for a certificate of authority. For certain business reasons, an insurer that received a certificate of authority has not transacted business during the first two years following issue. Will any action be initiated by the Commissioner for failure of this insurer to exercise its authority?

Failure of a licensed company to exercise its authority to write a particular line or lines of business in this state for two consecutive calendar years may constitute sufficient cause for revocation of the company's authority to write those lines of business.

Under which of the following Professional Liability coverages would "Employee Benefits and Counseling Errors and Omissions" be covered?

Fiduciary Liability

Which of the following results in immediate payment when the claimant signs a release relinquishing his/her right to sue

Full Release Settlement

Which of the following is correct regarding the differences in coverage between an HO-3 and an HO-5?

HO-3 covers personal property on a named peril basis, while personal property under an HO-5 is covered on an open peril basis

An adjuster's license will usually be revoked for what reason?

Having been convicted of a felony

Which of the following endorsements to a Commercial Crime policy affects employee theft coverage? I. Name or position schedule. II. Client's property. III. Forgery. IV. Safe depository.

I and II only

The liability coverage on the BOP would provide coverage for which of the following?

Injury or damage caused by the operation of mobile equipment

Under the Federal Insurance Fraud and False Statements Act, if someone is prohibited from doing business in a state, approval to resume transacting business must be granted by:

Insurance Regulatory Official

A non-waiver agreement allows the insurer to:

Investigate a loss without implying that it is covered

In the contractual agreement under which a business auto insured rents a car, she is obligated to assume all liability to third parties in connection with the operation of the rented car. The insured's BAP liability coverage may cover:

Liability the named insured would have had with or without the rental contract.

When an insurance company broadens coverage under a home owner's policy, that change automatically applies to those policies currently in effect under what provision?

Liberalization Clause

What commercial auto form is used to cover taxis and bus companies?

Motor carrier form

A physicians, surgeons, and dentists' professional policy would cover which of the following?

Negligent acts of a staff nurse or aide

The insured is covered under an HO-5 policy. What coverage does the insured have for contents coverage?

Open peril coverage

Which of the following resources may be used to provide a source of insurability information?

Physical inspection

Homeowner policies provide liability coverage for which of the following?

Property Damage and Bodily Injury

A customer has consumed contaminated food manufactured by the U-Eat company. It is discovered that the manufacturer failed to properly clean some of the equipment and as a result the food was spoiled. This is an example of:

Strict Liability

Under the "Money Orders & Counterfeit Money" coverage, the Commercial Crime form, would be covered EXCEPT:

Taking a forged check from a customer in exchange for merchandise

Under the personal auto policy, uninsured motorist coverage is excluded for claims settled without the insurer's consent only if:

The claim settlement prejudiced the insurer's subrogation rights

What costs are paid under an Umbrella policy?

The policy limit and any defense costs minus any applicable self-insured retention (deductible).

A company has a commercial umbrella liability policy with a $2 million general aggregate limit and a $1 million limit for personal and advertising injury liability. During the policy year, a personal injury suit against the company, covered by umbrella policy, was settled for $1 million. If the insured is sued again for personal or advertising injury by the same individual during this same policy year:

The policy would not pay the second damages because it would exceed the personal and advertising injury limit for that person.

When can two insurance companies arbitrate a subrogation question?

When both companies consent to the arbitration

Which of the following would NOT be excluded under the Liquor Liability Exclusion of the CGL?

a. Mary's Antique Shop is having a customer appreciation social and serves alcohol at no charge to her guests.

All of the following are claim settlement options for property, EXCEPT: a. Value as established by the insurer b. Repair the property c. Replace the property with like kind and quality d. Replace the property with new

A; Value as established by the insurer

16. Which of the following businesses would be eligible for a business owners policy? I. Doughnut shop. II. Wholesale florist. III. Barber shop. IV. Taxidermist.

ALL

An insured has a BOP and wishes to add the endorsement that provides Utility Services-Direct Damage coverage. What types of property must be listed for coverage to apply? a. Overhead transmission lines b. Water Supply Services c. Wastewater Removal Property d. All are correct

D; All are correct

Which of the following is included in the definition of a first party claimant: I. An individual II. A corporation III. A partnership

I, II and III

After an auto collision loss an insurance company may elect to pay the insured's claim and take possession of the vehicle. This practice is referred to as: a. Salvage b. Subrogation c. Warranty d. Deductible

A; Salvage

Under the business auto policy, the endorsement used to protect the owner of a leased vehicle is:

Additional Insured - Lessor

An insured covered under a homeowner policy is in the process of declaring bankruptcy. What are the insurer's obligations if the insured has a covered claim? a. The insurer can deny property claims. b. All covered claims must be honored. c. Only part of a covered claim is covered. d. A larger deductible may be applied to a covered loss.

B; All covered claims must be honored

What is the appropriate manner in which to sign a "Full Settlement Release"? a. A business may use its d.b.a. b. An individual may use an a.k.a. c. An individual or a business must sign with a full legal name d. Initials that represent a name may be used

C; An individual or a business must sign with a full legal name

Assume a commercial umbrella liability policy is in effect and all conditions are met. Identify the correct statement. a. An individual claims the insured made libelous statements that have damaged the individual's career. This damage would be covered under the policy's Bodily Injury and Property Damage Liability coverage. b. An individual suffered embarrassment after tripping over a brick someone had left in the insured's walkway. This damage would be covered under the policy's Personal and Advertising Injury Liability coverage. c. A customer's leg was fractured by a fall in the insured's warehouse. This damage would be covered under the policy's Personal and Advertising Injury Liability coverage. d. An insured is responsible for damaging a client's million dollar shipment of products. This damage would be covered under the policy's Bodily Injury and Property Damage Liability coverage.

D; An insured is responsible for damaging a client's million dollar shipment of products. This damage would be covered under the policy's Bodily Injury and Property Damage Liability coverage.

The HO-3 form insures for direct physical loss to covered property involving collapse of a building caused by all of the following, EXCEPT: a. Hidden decay b. Settling c. Weight of contents d. Use of defective materials

B; Settling

An insurance policy is a contract. If any part of the policy language is ambiguous, the court will generally rule: a. In favor of the insurer since the forms were filed and approved by the insurance department. b. In favor of the insured. c. That the policy can be rewritten. d. To refund the premium back to the insured.

B; in favor of the insured

49. Each of the following people would be an insured for auto medical payments coverage under Bob Miller's business auto policy, EXCEPT a. Bob Miller (the named insured), struck by an auto while walking across the street. The auto was not a covered auto. b. Mel Carpenter, Bob's neighbor, occupying a covered auto. c. Frank Thomas, Bob's 17-year-old son, occupying an auto that is not a covered auto. Frank lives with his mother, who is divorced from Bob. d. Mary Thomas, Bob's ex-wife, occupying a covered auto.

C; Frank Thomas, Bob's 17-year-old son, occupying an auto that is not a covered auto. Frank lives with his mother, who is divorced from Bob.

Uninsured motorist coverage would not pay if: a. The insured carries underinsured motorist coverage b. Medical payments coverage would apply c. No-fault would pay d. Other liability coverage applies

D; Other liability coverage applies

When a tort action is brought before the court the jury may be given the opportunity to assess damages against the defendant which amount to more than the actual cash value of the damages suffered by the plaintiff. These damages are known as: a. Exemplary damages. b. Additional damages. c. General damages. d. Punitive damages.

D; Punitive damages

You have an HO-3 policy on your home. Coverage F will pay medical expenses for: a. Anyone invited onto your property and injured while there b. A son or daughter away at college c. You and all resident relatives d. Roomers and boarders

A; Anyone invited onto your property and injured while there

Joseph Young, who is insured under a commercial auto policy, is involved in an accident. He and the insurance company disagree on the amount to be paid for the damage to his car. Under the terms of the policy, which of the following is true? a. Each party engages the services of an appraiser, and the appraisers will select an umpire. b. The estimates of both parties will be averaged. c. Mr. Young must accept the insurance company's estimate. d. Each party engages an appraiser, and the insurer will make the final decision.

A; Each party engages the services of an appraiser, and the appraisers will select an umpire.

A tort is: I. A civil wrong. II. A legal obligation. a. I only b. II only c. Both I and II d. Neither I nor II

A; I only

Which of the following is true regarding the HO-5 form? a. Provides open peril coverage on the buildings and their contents. b. Provides open peril coverage on buildings and broad form peril coverage on their contents. c. Provides broad form peril coverage on the buildings and their contents. d. Provides broad form peril coverage on the buildings and named peril coverage on their contents.

A; Provides open peril coverage on the buildings and their contents

Which of the following losses would be covered under garagekeeper's legal liability coverage? a. Theft of a customer's AM/FM stereo radio permanently installed. b. Theft of equipment from a covered auto. The theft was committed by a garage employee. c. Faulty work performed by the named insured. d. Loss to CD's from a covered auto.

A; Theft of a customer's AM/FM stereo radio permanently installed

Which of the following coverages is included in a personal auto policy without having to issue an endorsement? a. Transportation Expenses b. Towing and Labor Costs c. Misc. Type Vehicles d. Named Nonowner

A; Transportation Expenses

The newer CGL form now includes as insured's which of the following? a. Volunteer Employees b. People not employed by the insured who help to load and unload trucks by hand c. Employees of Sub-contractors d. Owners of boats rented by the insured for business use

A; Volunteer Employees

The Connecticut Standard Fire policy pays property losses on the basis of: a. Replacement cost basis b. Actual cash value c. Functional replacement cost basis d. Agree amount basis

B; Actual cash value

Bob and Pete's Used Cars has purchased a garage policy with dealers physical damage on the cars owned by the dealership at its location. Pete goes to an auto auction 150 miles away, purchases vehicles and drives them back to the dealership. Which endorsement, if any, is necessary to cover this exposure? a. Drive Other Car Coverage b. Hired auto specified as Covered Autos You Own c. Non Owned Auto Coverage d. Dealers Drive Away Collision

D; Dealers Drive Away Collision

All the following are covered under Section II of the homeowner policy EXCEPT: a. Injury to a newspaper carrier who slips on the insured's steps b. Premiums on bonds required for lawsuits defended by the insurer c. Intentional bodily injury to others by the insured d. Reasonable expenses incurred by the insured to assist with a lawsuit

C; intentional bodily injury to others by the insured

Which of the following is a violation of the unfair claims practice laws? a. Knowingly misrepresenting to insureds or third-party claimants pertinent facts or policy provisions relating to coverages at issue, or providing misleading information with respect to the coverages b. Failing to acknowledge with reasonable promptness pertinent communications with respect to a claim c. Failing to adopt and implement reasonable standards for the prompt investigation and settlement of claims d. All are violations

D; All are violations

Which of the following can be categorized as liability doctrines? a. Strict b. Vicarious c. Res Ipsa Loquitur d. All are correct

D; All responses are correct

A fidelity bond is designed to protect the employer against: a. Damage to property on which he is working b. Slander or libel c. Personal injury d. Theft by an employee

D; Theft by an employee

A main street business has suffered an explosion loss from a hot water heating boiler. The civil authorities have blocked off the street and the insured's customers cannot get to his store. The insured carries a Businessowners Policy. He sustains a loss of income. Before his policy will pay any loss of income there is a ______hour waiting period and the policy will then pay for loss of income up to _____weeks. a. 72 / four weeks b. 24 / two weeks c. 12 / four weeks d. 48 / three weeks

A; 72 hours / four weeks

All of the following would be covered under the commercial auto policy, EXCEPT: a. A partner using his own vehicle running a personal errand. b. An employee using an employer's vehicle c. A partner using a company vehicle while on company business. d. An executive using a company vehicle on company business.

A; A partner using his own vehicle running a personal errand.

Which of the following would be excluded under the Personal Auto liability coverage? a. A person transports people from the airport to nearby hotels for a fee. b. A person uses his car to transport his workmates once per week in a car pool. c. A person borrows a friend's vehicle to travel to the airport. d. A person gets a speeding ticket in addition to being cited for an accident.

A; A person transports people from the airport to nearby hotels for a fee

An insurer whose place of incorporation is Toronto, Canada and is doing business in the United States would be identified as a/an: a. Alien insurer b. Non-admitted insurer c. Foreign insurer d. Domestic insurer

A; Alien Insurer

Which of the following events, arising out of the use of a covered auto, is covered under the personal auto policy? a. Damage to a private garage rented by the insured. b. Intentional acts of an insured. c. Damage to insured's property in the vehicle. d. Damage to property of others in the vehicle.

A; Damage to a private garage rented by the insured.

In crime insurance, which of the following individuals is NOT considered to be a custodian? a. Janitor b. Employee c. Partner d. Insured

A; Janitor

Which of the following statements is FALSE concerning business auto coverage? a. Medical payments coverage is automatically provided. b. It may be used to cover specifically described autos only c. If written to cover "any auto", non-owned and hired autos are automatically covered. d. Whether newly acquired autos are automatically covered depends upon the applicable coverage symbol.

A; Medical payments coverage is automatically provided

Under the "Money Orders and Counterfeit Money" coverage of the Commercial Crime form, all would be covered EXCEPT: a. Taking a forged check from a customer in exchange for merchandise. b. Receiving counterfeit currency in a sale. c. Making change on a counterfeit bill. d. Cashing a stolen money order.

A; Taking a forged check from a customer in exchange for merchandise

Which of the following would NOT be covered under the uninsured motorist coverage of the personal auto policy? a. The owner of the uninsured vehicle. b. The 22-year-old college student. c. The estranged spouse of the insured. d. The neighbor borrowing the insured's car.

A; The owner of the uninsured vehicle.

Which of the following should be insured by an HO-6? a. The owners of condos and townhomes b. A tenant who rents and apt in a high-rise building c. The owner of a ranch-style house d. A person who wishes to schedule their valuable jewelry separately on a policy

A; The owners of condos and townhomes

What does the term "bailment" mean? a. Transfer of possession b. Transfer of possession and temporary title c. Transfer of title d. Temporary release from jail

A; Transfer of possession

George is the named insured under a claims-made CGL policy with a retroactive date of July 1, 2005, and a policy period of January 1, 2011 to January 1, 2012. The policy was not renewed and allowed to expire. On February 10, 2012, a claim is made against George for property damage that occurred on December 31, 2005. This claim: a. Will be covered under the automatic 60-day extended reporting period if George has no other insurance that applies. b. Is not covered, but would be if George's policy were written on an occurrence basis. c. Is not covered because the occurrence did not take place during the policy period. d. Is not covered because the occurrence took place after the retroactive date.

A; Will be covered under the automatic 60-day extended reporting period if George has no other insurance that applies.

Under the BOP, how much would be paid for any one tree, shrub, or plant in case of a covered cause of loss? a. $1500 b. $1000 c. $300 d. $500

B; $1000

An adjuster, acting as a fiduciary agent, should: I. Not represent interests that are ADVERSE to those of the principal. II. Not seek to profit from an outside source as a consequence of actions for, and on behalf of, the principal. III. Act with a high degree of fidelity and loyalty to the interests of the principal. a. I only b. I, II, and III c. I and II only d. II only

B; I, II and III

All of the following would be covered under Part B - Medical Payments of the personal auto form, EXCEPT: a. Injuries sustained by the insured's mother when a tree falls on the automobile while she is sitting inside the automobile while it is parked in the driveway. b. Injuries sustained by an elderly man riding in the insured vehicle after having paid the insured to take him to the grocery store. c. Injuries sustained by the insured when using his father's pickup truck to pick up furniture he recently purchased. d. Injuries sustained by a neighbor who carpools with the insured and who, while getting into the insured's car, slips, falls, and injures her knee.

B; Injuries sustained by an elderly man riding in the insured vehicle after having paid the insured to take him to the grocery store.

An "open-ended" release pertains to: a. Any and all releases. b. A release involving an attorney. c. A conditional or partial release. d. A release where expenses have been paid

C; A conditional or partial release

The insured is a trucking company that carries cargo. One of the insured trucks is involved in an accident and the goods it is transporting are damaged. Which of the following coverages would respond to cover this loss? a. The commercial auto policy would respond and pay under "property damage". b. A general liability policy c. An inland marine motor truck cargo policy d. A commercial umbrella policy

C; An inland marine motor truck cargo policy

If a person is found guilty of violating USC Section 1033 regarding Federal Fraud and False Statements, the Attorney General may do which of the following? a. Imprisonment for up to 25 years. b. Assess a civil penalty of up to $25,000 for each violation. c. Assess a civil penalty in the amount the person received or offered for the prohibited conduct or $5,000 whichever is greater. d. All

C; Assess a civil penalty in the amount the person received or offered for the prohibited conduct or $5,000 whichever is greater.

Each of the following people would be an insured for auto medical payments coverage under Bob Miller's business auto policy, EXCEPT a. Bob Miller (the named insured), struck by an auto while walking across the street. The auto was not a covered auto. b. Mel Carpenter, Bob's neighbor, occupying a covered auto. c. Frank Thomas, Bob's 17-year-old son, occupying an auto that is not a covered auto. Frank lives with his mother, who is divorced from Bob. d. Mary Thomas, Bob's ex-wife, occupying a covered auto.

C; Frank Thomas, Bob's 17-year-old son, occupying an auto that is not a covered auto. Frank lives with his mother, who is divorced from Bob.

Which of the following would NOT be found in the conditions section of an insurance policy? a. Subrogation rights b. Duties of the Insured c. Insurance premium d. Mortgage clause

C; Insurance Premium

The Homeowner program allows for the attachment of the "personal injury coverage" endorsement. What coverage will this add for the insured's liability protection? a. Libel b. Slander c. Wrongful entry or eviction d. All are correct

D; All are correct

Which of the following is not a duty of an insurer in case of a loss? a. Conduct a thorough investigation b. Establish claim procedures and methods of documentation c. Acknowledge receipt of a claim in a timely fashion d. Separate the damaged property from the undamaged property and protect the property from further loss

D; Separate the damaged property from the undamaged property and protect the property from further loss