Exam Simulation Missed Questions
What is a risk retention group?
An insurance organization that most often addresses commercial casualty concern.
What list contains the names of all eligible surplus lines insurers?
LESLI- List of Eligible Surplus Lines Insurers.
The form of payment bond that protects an owner contracting for work against liens from subcontractors, suppliers, or laborers who are not paid for their services and materials by the general contractor is called
Labor and Material bond
All of the following statements are true regarding the low cost auto insurance program in California except
It is only available in select counties.
According to the doctrine of contributory negligence, when and individual is found to have contributed to his or her own loss in any way, another party
May not be held liable.
Which of the following coverages is included in an unendorsed HO policy?
Medical payments to others.
Which of the following best describes business income?
Net profit or loss that would be incurred, plus operating expenses, including payroll that continuers during the suspension.
Which of the following statements is true regarding physical damage coverage in a garage form?
No coverage is provided for autos store more than 45 days at a location not shown in the declarations.
Which of the following can an insured submit that would provide evidence of a claim and illustrate how severe the loss is?
Proof of claim
The limited fungi, wet or dry rot, or bacteria endorsement applies to which type of losses?
Property and Liability
Limited fungi, wet or dry rot, bacteria endorsement in HO policies allies to
Property and liability losses
The endorsement that provides coverage for losses arising from sudden collapse of earth arising from underground limestone created by the action of water on rock formations is a/an
Sinkhole collapse endorsement.
What are the two types of compensatory damages?
Special and general
Vandalism and malicious mischief would be covered if the insured's premises have been vacant for no more than how many days?
60
The personal injury liability endorsement to an HO policy applies to all of the following except:
A third party breaks a leg when the insured knocks him down.
With respect to the personal auto policy, which of the following vehicles could be classified as a non owned auto?
A vehicle that is titles to another person but is used with permission by an insured.
An optional coverage endorsement to the HO policy that covers scheduled residential structures on the insured's premises that are rented to others is called
Additional residence rental provision.
All of the following statements regarding a Boat Owners policy are true expect
Automatic coverage is provided on replacements for the boat listed in the declarations provided the insured notifies the insurer within 60 days of purchase and pays any additional premium required.
The purpose of the California residential property disclosure statement included all of the following except
Becomes part of your residential property insurance policy.
Homeowners policies provide coverage for
Business property while on the residence premises.
Which of the following us a unit of measurement an underwriter uses when determining the premium rates for insurance?
Exposure
A business owner needs to purchase additional inventory in order to meet a customer's order. He contracts with a competitor, obtains the additional inventory, and satisfies his customer. Unfortunately, he does not have the money to repay his competitor. What type of guarantee should he have purchased?
Financial
The major portion of the premium for a boiler and machinery policy pays
For inspections and examinations
The owner of a parking lot wants liability coverage for dame to vehicles while in her custody. She needs
Garagekeepers coverage
Under dwelling policy, Coverage C-- personal property.
Limited to offering a servant's property while at the insured location.
A restaurant is out of business for three days after Sally's automobile hits an electrical pole. The pole falls and hits the building, knocking out all electrical power supply. Which of the following is not covered under Sally's driver's auto policy?
Lost revenues from the restaurant.
Which surety bond guarantees that bills for labor will be paid by the contractor as they are due?
Payment bond- sometimes called labor and materials bond
A bond is written for a set limit, and the surety will be liable only for this amount of the limit. This limit is known as the
Penalty
Which of the following statements is incorrect with regard to surplus lines insurance?
Policies written by a surplus lines insurer typically contain standard coverage forms.
Under the Personal Auto Policy, liability resoling from the insured's use of non-owned automobile is
Provided by the insured's policy on an excess basis.
Which of the following would not be considered a flood?
Sewer back up
All of the following people would be considered insured under the liability section of a homeowners policy, EXCEPT
The 22-year-old niece of the insured, who is visiting.
A driver with 10 years of experience driving an automobile has never had a traffic violation or a DUI. He is now applying for a separate motorcycle policy. He has obtained a his motorcycle license. Which of the following is true?
The Good Driver Discount will not wooly to the motorcycle.
How much is the premium for the dwelling under construction endorsement under the dwelling policy.
The average amount of insurance during construction.
When an umbrella policy is broader than underlying insurance and it pay a loss that is not covered by the underlying policy, it usually only pays
The excess over the self-insured retention
If an individual insured his dwelling and contents under a DP-3, he would be protected against loss buy all of the following perils except
Theft of personal property located in the dwelling
Which type of insurance guarantees or indemnifies owners of real property or the holders of liens or other interested parties against loss or damage suffered to said property?
Titile Insurance