Exam FX

When an insurer non-renews an auto policy in West Virginia, the insurer must do which of the following

Send the insured an advanced written notice of the non-renewal, including the reasons for the nonrenewal and the potential eligibility for assigned risk coverage

The transfer of an insured right to seek damages from my negligent party to the insurer, is found in which of the following

Subrogation

A non-admitted insurer who provides unique insurance coverage that is not available from an admitted insurance is called

Surplus Lines Insurer

Robbery is

Taking someone's property by threat or force is

Who issues licenses for insurer who want to conduct the business of insurance in this estate?

The West Virginia insurance commissioner

Under a dwelling policy, which of the following is not a factor in determining a loss

The amount negotiated by the insured

An insurer wasn't able to pay a claim within 90 days of the claimants filing of the proof of loss. Which of the following is true regarding the Mountain insure will be obligated to pay.

The amount of the claim, interest at the current prime rate, plus1 percent

An agent has quoted an auto insurance policy for a new client. The client has agreed to buy the policy, effective today, and the agent placed coverage enforce immediately. Which of the following statements is not true concerning the length of coverage, provided by the binder.

The binder will cease 30 days from the date of application if no other action occurs

Peril is most easily defined as

The cause of loss insured against

A producer retired two years ago, commissions on a sale that he made three years ago could be issued, which of the following are true

The producer will still be able to collect commission on this sale

What is the purpose of the West Virginia insurance guaranty association?

To pay benefits to insureds whose insurers have become insolvent

An insured relocated to another state for work. However, she still owns an insure a house in this state, but has had no one living in it for three months. She is also storing some furniture and clothes in the house. From an insurance standpoint the insurance house is considered.

Unoccupied

An insured, nine-year-old son, threw a ball, accidentally breaking a neighbors plate, glass window. The insured was filmed, legally liable for the cost of replacing the window. This is an example of.

Vicarious liability

Which of the following is a statutory defense?

comparative negligence

An insured business is damaged, because of a fire, and he is forced to close the business temporarily for repairs. As a result, the insured lost income. What type of loss is this?

consequential

When an insured makes truthful statements on the application for insurance, and pays the required premium, it is known as which of the following

consideration

In business owners policies, which of the following additional coverages, will require a deductible

debris removal

Engaging in any unfair trade practices will result in what amount of fine?

$1,000 each violation; 10,000$ for all

What is the maximum penalty for a habitual willful noncompliance with the fair credit reporting act

$2,500

The minimum limits of liability available in the West Virginia auto insurance plan are

25/50/25

An insured with a homeowners policy has removed property from the insured location to protect it from walls that could be caused by a covered peril. The removal coverage applies for.

30 days

How long is a waiting period upon purchase of flood covers through NFIP

30 days

Under business owners, policy section one, if an insurer wants to cancel policy for any reason, except nonpayment of the premium how many days before the effective cancellation date must the insured notify the mortgage holder?

30 days

How many days following a hearing does the commissioner have to enter in order based on conclusions researched during the hearing

45

After the commissioner receives a written demand for a hearing from by a person, aggrieved by any act or failure to act, a hearing must be held within

45 days

An insured has an auto liability policy with limited 25/50/25. She's involved in an accident caused by her negligence and is held legally liable for bodily injuries of three persons in the other car as follows.

50,000

Candidates for individual insurance producer licenses are required to submit, fingerprints for criminal history and federal background checks, how long are the fingerprint results valid?

60 days

An insured owns a building that is valued at 400,000. To comply with the 80% coinsurance provision of his insurance policy, how much should he ensure the property for

80% of the property's replacement cost or more

Under what conditions can an insurer cancel an existing automobile policy

A late payment of premium on policy that has been enforced for five years

A tornado that destroys property would be an example of which of the following

A peril

Which of the following risks would not be eligible for coverage under a homeowners policy?

An applicant who owns and lives on a commercial farm

Which of the following describes contributory negligence

Any degree of negligence by the injured party may bar recovery

Insurable interest in property insurance must exist

At the time of loss

Which of the following is the most precise synonym for an admitted insurer

Authorized

In West Virginia, a producer license expires based on

Birth month

The activities, operations, financial condition and affairs of all people transacting insurance in West Virginia, may be examined

By the commissioner

An individuals construction company leaves, mobile equipment and construction machinery on the job site until the project is completed. What could this individual use to insure it

Contractors equipment floater

What is mine subsidence?

Damage to a structure caused by the collapse of an underground coal mine

An insured is applying for a casualty insurance policy. One of the conditions of the policy allows the insurance company to inspect the insured book at the end of the policy term to make sure sufficient premium has been collected for the exposure. She plans to ensure. Which condition is part of the insured policy

Deposit premium audit

A beauty parlor burns to the ground. What type of loss is this to the owner

Direct

What is the purpose of the coinsurance clause found in property insurance policies?

Encourage the insured to insure the property closer to its full value

In West Virginia, producers license expire

Every 2 years

Which of the following is required to determine an applicants eligibility for becoming glossed as an insurance producer in this state

Fingerprints

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

For inspections and examinations

When doing business in this state and insurance company that is formed under the laws of another state is known as which type of insurer

Foreign

Insurers are limited in their ability to non-renew property insurance policies that have been

In effect for at least 4 years

West Virginia law requires written notice of cancellation of property policies. The notice must comply with all of the following, except.

Include a full refund

Which insurance principle states, that if a policy allows for a greater compensation than the financial loss incurred, the insured may only receive benefits for the amount loss?

Indemnity

To purchase insurance, the policy owner must have financial interest in the property being insured this is known as

Insurable Interest

The primary purpose of a surety bond is to

Make sure obligations are fulfilled

The insured house is located 1 mile from the country, newest landfill and across the road from the entrance of the rock quarry. It would cost $150,000 to rebuild the house if something happened to it, but when the insured tried to sell it, the best offer he received was $80,000. The insurance company will ensure the house for only $80,000. What method of evaluation is used to ensure this property.

Market Value

An insurer is required to remit a renewal appointment fee, no later than midnight on

May 31

The physicians and surgeons equipment floater in not intended for which of the following

Medical supplies located in a hospital

A producer may apply for licenses for how many solicitors

No more than 2

Erroneous publishing, copied all the material from Angels Inc. book. The only changes made by Erroneous were to rename the title in chapters, put a different cover on it, industry it as its own. Angels incorporated files, a claim against erroneous and six damages. Will commercial general liability policy cover the claim

No, because the claim results from copyright infringement, and it is not an advertisement

On a participating insurance policy, issued by mutual insurance company, dividends, paid to the policyholder are

Not taxable since the IRS treats them as a return of a portion of the premium paid

What is the major difference between a stock company and a mutual company?

Ownership

An insured has liability policy that says the amount for all claims that raise from a single accident at $50,000. Which type of limit of liability does the insured policy have?

Per occurrence

Which of the following limits, shown in the declarations of a policy, applies to medical expenses?

Per person

Which of the following floaters will be used to ensure personal effects, carried or worn by the insured while traveling

Personal effects floater

All of the following factors may be used in determining insurable interest, except

Potential for financial gain

An individual appointed by an insurance company to solicit, negotiate, or effect insurance contracts, based on its behalf, is a

Producer

An agent offers his clients free tickets to a sporting event, and exchange for the purchase of an insurance policy. This agent is guilty of.

Rebating

Which method of loss valuation is contrary to the basic concept of indemnity?

Replacement cost

Which of the following is used in the formula for calculating the actual cash value of a property

Replacement cost

Losses caused by continuous or repeated exposure to conditions resulting in injury persons or damage to property that is neither intended nor expected is the definition of which of the following terms?

occurrence

A tornado that destroys property would be an example of which of the following?

peril

What are the two types of compensatory damages?

special and general

A building is insured, but no one has lived or worked in it for 10 years the building is completely empty of any furniture or personal belongings. From an insurance standpoint, the building is considered.

vacant

A $100,000 house insured on a policy with an 80% coinsurance requirement has a fire that cost 40,000 of damage. The owner has a policy with 60,000 coverage. How much can the owner click for his loss

$30,000

If the insurer needs more than 30 calendar days from the date, a proof of losses received to determine whether to accept or deny the claim the insurer must notify the claimant of the delay in writing within how many days

15 working days

An insured was involved in a hit-and-run accident within what time period Must the insured report the accident to the police

24 hours

What is a material misrepresentation?

A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company

An equipment breakdown coverage, all accidents would be considered a single accident if they occur

At a single location at the same time, and from the same cause

Which of the following must insurer obtain in order to transact insurance within a given state

Certificate of authority

The insurance code, defines all the following as transacting insurance, and as such, requiring a valid license, issued by the commissioner, except

Coercing

An insured is driving her car through a residential area when she loses control and crashes into the neighbors front porch. The neighborhood is sitting on the porch is injured. The insurer liability policy has a limit of 500,000. The amount of plastic, the total of damages for any bottling injury and property damage resulting from one accident which type of liability does the insured have

Combined single

The legal theory used to determine responsibility and damages by considering the negligence of every party involved in an accident is referred to as

Comparative negligence

The part of the policy that sets forth the rules of conduct, duties, and obligations of the party is called

Conditions

An insured house is damaged by fire that is an inhabitable. As a result, the insured has to rent an apartment until repairs are made. A dwelling insurance policy will pay for the expenses of renting the apartment. Which type of broad or special form coverage does the insured have

Coverage E

Which of the following is not true about earthquake coverage?

Coverage is commonly provided through a federally-funded program.

Which of the following best describes an insurance company that has been formed under the laws of this state?

Domestic

Under the examinations of book and records condition, the insurance company has the right to examine and and audit. The insured books and records related to the policy.

During the policy period, and for up to three years after the termination of the policy

A mobile homeowners policy is structured, the same as

Homeowners policy

An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. The insurer is hoping that this advertising will help to eliminate the competition and therefore create a monopoly. Which of the following best describes this act?

Illegal.

Which of the following coverages in dwelling and homeowners policies is for indirect losses

Loss of use

A producer is selling an insurance policy, and as an inducement shows the client a projection based upon dividends paid on a similar policy. This is called.

Misrepresentation

Which of the following will be covered by the contractors equipment floater in an unfiled inland marine insurance

Mobile equipment during transportation to and from the job site

A business using its own trucks to move its own cargo would ensure the cargo using

Motor truck cargo - owner forms

An insured owns several buildings, each building has a different location and insured on a separate policy. What type of coverage does the insured have?

Specific

Events in which a person has both the chance of winning or losing our classified as

Speculative risk

All of the following statements concerning coinsurance are true, except?

The coinsurance formula will also be applied to total losses.

Application, forms, group, insurance, certificate, forms, and application, forms or riders must be approved by

The commissioner

Which of the following best describes negligence

The failure to use reasonable and prudent care

Wind damage to a tenant occupied historic warehouse insured under the fair plan caused $275,000 worth of damage. The policyholder will receive.

The full amount minus any deductible

Which of the following is most likely to occur if it is determined by the audit that the deposit premium was too high?

The insured will receive a return premium