EXAM INSURANCE (USE)

The general powers and duties of the Insurance Department include all of the following EXCEPT

1. Determining if a producer has acted in violation of the Insurance Code.2. Enacting statutes to.3. Distributing information regarding the Department's activities.4. Enforcing the Insurance Code. Enacting statues to regulate the insurance industry

The Businessowners policy (BOP) extension coverage form for personal property off-premises is limited to

5000

Which of the following types of authority is also called "perceived authority?

Apparent

Premiums collected on behalf of the insurance company by an agent will be held in what capacity?

Fiduciary

When agents, brokers, or solicitors handle premiums for an insurer, they are acting in which capacity?

Fiduciary

Using an air-cooled engine, a proposed insured has developed a new, experimental aircraft. If the inventor applies for liability insurance, what rating type will the insurer most likely use?

Judgment

An insurer may cancel or nonrenew personal insurance based upon which of the following

Non-payment, material Misrepresentation, or Fraud

Which of the following terms means termination of insurance policy at its expiration date by not offering a policy continuation or replacement?

Nonrenewal

Property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called

Specific coverage

Which of the following would be a proper choice of policy for a company that transports goods that are irreplaceable in nature?

Valued policy

When does the federal emergency flood insurance program go in effect?

When a community applies for the program

An insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest so the agent guarantees higher dividends than he knows would be possible

misrepresentation

Which provision defines how the policy will respond if there is other valid insurance written on the same risk?

other insurance

Producer licenses are valid from the initial licensing or reinstatement period until

the licensees birth month, plus 1 year