examFX

The claims-made trigger is based on which of the following? The amount of the insured's deductible The place where the injury or damage occurs The date when injury or damage occurs The date the claim is first made

The date the claim is first made

All of the following statements concerning liability coverage are true EXCEPT Liability policies defend the insured against claims, real or alleged. The policyholder can sue the insurer whether or not all conditions and provisions of the policy have been met. The insurer cannot refuse to pay a claim even if the insured is bankrupt. Liability policies normally include supplementary payment provisions.

The policyholder can sue the insurer whether or not all conditions and provisions of the policy have been met

If the appointment of any insurance producer is to be terminated, the Director must be notified by the insurer within how many days of that termination? 10 15 30 5

30

How much is covered for debris removal under the HO property additional coverages? All reasonable costs 90% of the total cost of clean-up Everything after a $200 deductible Nothing, unless added by an endorsement

All reasonable costs

An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's liability policy has a limit of $500,000. This amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does the insured have? Split Aggregate Per occurrence Combined single

Combined single

Employee theft bonds may be written as all of the following EXCEPT Name schedule. Position schedule. Single form. Blanket position.

single form

Which of the following is NOT considered a residual market? Assigned risk auto plan State Property and Casualty Guaranty Association Joint underwriting association FAIR plan

state property and casualty guaranty association

The legal process that gives the insurer, after payment of a loss, the right to seek recovery from a third party that was responsible for the loss is known as Adverse selection. Right of rescission. Principle of indemnity. Subrogation.

subrogation

#102. According to the standard workers compensation and employer liability policy form, a state should be listed in Part Three - other states' insurance of the workers compensation and employers liability policy when a) The insurer is not licensed to write workers compensation in that state. b) The state has a monopolistic workers compensation fund. c) The insured expects to extend operations to that state. d) The insured has operations in the state where the policy is written.

the insured expects to extend operations to that state

Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy? The insured would have to pay the self-insured retention limit. The insured would be responsible for the amount required as underlying limits in the event of a claim. It would have no effect on the umbrella policy. The policy will be cancelled.

the insured would be responsible for the amount required as underlying limits in the event of a claim

For the purpose of insurance, risk is defined as The uncertainty or chance of loss. The certainty of loss. The cause of loss. An event that increases the amount of loss.

the uncertainty or chance of loss

What insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk? Nonconcurrency Primary and excess Other insurance Valid insurance

other insurance

Which of the following notifies the applicant that an investigative consumer report will be made? Disclosure of Investigation Notice Notice of Investigation Fair Credit Reporting Act Disclosure Consumer Report Investigation Notice

Fair Credit reporting act disclosure

What insurance concept is associated with the names Weiss and Fitch? Index used by stock companies Guides describing company financial integrity Policy dividends Types of mutual companies

Guides describing company financial integrity

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business? Apparent Assumed Express Implied

Implied

Who might receive dividends from a mutual insurer? Policyholders Subscribers Stockholders Agents

Policyholders

Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses? Additional coverage Exclusions Declarations Insuring agreement

additional coverage

What is the amount of deductible that applies to the per accident limit by the Broad Form Products Coverage endorsement in commercial auto policies? $100 $250 $500 $750

$250

A license is deemed used for the purpose of controlled business if, during any calendar year, the commissions earned on such business exceed what percent of all commissions transacted under the license? 50% 10% 25% 30%

30%

A couple bought tickets to a college hockey tournament. At the game, a stray puck flies into the stands and hits the wife in the face, breaking her nose. Which legal defense may bar her from recovering damages for the injury she received at the hockey game? Comparative negligence Contributory negligence Defense against negligence Assumption of risk

Assumption of risk

Which of the following is a mandatory part of an insurance policy that varies with each individual policy? Declarations Conditions Exclusions Insuring agreement

Declarations

Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe? Conditional Personal Adhesion Unilateral

adhesion

Which of the following is another term for an authorized insurer? a) Licensed b) Legal c) Admitted d) Certified

admitted

Termination of an in-force insurance policy prior to the expiration date shown in the policy is known as Cancellation. Rescission. Nonrenewal. Cessation.

cancellation

What type of compensatory damages will pay for pain and suffering and disfigurement? Special (specific) Tort Normal General

general

The businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period? 90 days 120 days 1 year 3 years

1 year

How soon after a direct loss does the period of restoration for business income coverage under businessowners property insurance begin? 12 hours 24 hours 36 hours 72 hours

72 hours

With respect to auto insurance, the term owned autos includes all of the following EXCEPT Any private passenger auto leased to the named insured for a period of more than 6 months. A pickup or van titled to and used in the named insured's business. Any private passenger auto titled to the named insured. A pickup or van acquired by the named insured during the policy period.

a pickup or van titled to and used in the named insureds business

Which of the following is INCORRECT in regard to the conditions found in a workers compensation policy? The insurer may inspect the workplace after giving the insured 5 days' notice. If the policy period is longer than 1 year and 16 days, all policy provisions will apply as though a new policy was issued on each annual anniversary date. The insured's right and duties may not be transferred to anyone else without the insurer's written consent. The first named insured will act on behalf of all insureds under the policy.

The insurer may inspect the workplace after giving the insured 5 days' notice

All are true if a contractor defaults on a performance contract EXCEPT The surety may cancel the bond so as to avoid having to pay losses and expenses. The obligee may hire another contractor to complete the job and have the surety repay the obligee. The principal's obligations end. The surety will attempt to seek reimbursement from the contractor for any amounts it pays.

The surety may cancel the bond so as to avoid having to pay losses and expenses

A business uses its own trucks to deliver their own products to the customer. Which commercial auto coverage form should the business buy to insure the trucks? Business auto physical damage Commercial carrier coverage Truckers liability Motor carrier coverage

motor carrier coverage

Which of the following types of producers can legally bind coverage in Nebraska? Property and Casualty Life Health All of the above

property and casualty

All of the following are true regarding rebates EXCEPT Rebates are allowed if it is in the best interest of the client. Rebates are only allowed if specifically stated in the policy. Rebating can be anything of monetary value given as an inducement to purchase insurance. Dividends are not considered to be rebates.

rebates are allowed if it is in the best interest of the client

What type of information would be found in a policy's insuring agreement? Policy limits Insurer's address Renewal dates Location of premises

renewal date

Which of the following endorsements is used to insure Coverage C (personal property) for values beyond the limitations of the homeowners policy? Personal property injury endorsement Scheduled personal property endorsement Personal property replacement cost endorsement Blue skies endorsement

scheduled personal property endorsement

States with monopolistic state workers compensation funds Sell workers compensation insurance through private insurers that are in the state and receive a kickback for all policies sold on an annual basis. Do not allow private insurers to be licensed to write workers compensation coverage. Provide workers compensation insurance through managed risk plans. Require all employers in their state to purchase workers compensation insurance regardless of their financial capacity.

Do not allow private insurers to be licensed to write workers compensations coverage

With regard to fire insurance premiums, structures with which of the following type of construction would most likely have the most favorable premium rate for the peril of fire? Noncombustible Fire-resistive Frame Masonry

Fire-resistive

In insurance transactions, fiduciary responsibility means Maintaining a good credit record. Being liable with respect to payment of claims. Commingling premiums with agent's personal funds. Handling insurer funds in a trust capacity.

Handling insurer funds in a trust capacity

Surplus lines insurance may only be purchased from which of the following? Unauthorized insurers Authorized insurers Limited lines insurers Admitted insurers

Unauthorized insurers

A trucking company owns a large fleet of trucks that transport oil across state lines. According to the financial responsibility requirements set by the Motor Carrier Act of 1980, what is the minimum amount of insurance the company must carry on vehicles that transport oil and certain categories of hazardous waste? $500,000 $750,000 $1 million $5 million

$1 million

A premium discount is the term that describes when an insured owes a total standard premium greater than $15,000. $1,000. $5,000. $10,000.

5,000

Which of the following property coverages would provide protection to contents damaged by fire? Coverage C Coverage D Coverage A Coverage B

coverage c

Rita drops off her wedding gown at Vicky's Dry Cleaners for a final pressing. The store's press breaks, so Vicky takes Rita's dress to her other store across town. On the way to the other store, Vicky is held at gunpoint until she gives the man the wedding dress. What crime coverage form would pay for the loss of the gown in this situation? Funds Transfer Fraud Extortion - Commercial Entities Miscellaneous Crime None of these

Extortion - Commercial Entities

Which of the following homeowners policies covers those who rent their dwelling? HO-2 HO-4 HO-6 HO-1

HO-4

The policy conditions define The amount of coverage. How parties to the contract must act following a loss. The basic underwriting information. The excluded perils.

How parties to the contract must act following a loss

Under the dwelling policy, Coverage C - Personal Property is Automatically provided as 50% of Coverage A. A prohibited coverage in the dwelling form. Limited to 50% of the amount of insurance that is written as Coverage A. Limited to covering a servant's property while at the insured location.

Limited to covering a servants property while at the insured location

Several insureds have become liable because of a single loss. How will the policy's limit of liability be affected? Pro rata liability applies. A homeowners policy can have no more than one insured. The full limit applies to each insured individually. No more than the per occurrence limit applies, no matter how many insureds are involved.

No more than the per occurrence limit applies, no matter how many insureds are involved

Under a businessowners policy, the inspections and surveys condition specifies all of the following EXCEPT The insurer does not have the right to inspect the insured's property and operations. The insurer does not make safety inspections for the insured. The insurer does not guarantee that conditions are safe or healthful. The insurer does not guarantee that the insured is meeting all required safety regulations.

The insurer does not have the right to inspect the insured's property and operations

The individual named insured endorsement under a commercial auto policy provides coverage for which of the following? The sole proprietor of the business and his or her spouse only The sole proprietor of the business and his or her family members The sole proprietor of the business only The sole proprietor of the business and his or her employees

The sole proprietor of the business and his or her family members

An insured runs a day care in her home. She has purchased the home day care endorsement under her homeowners policy. Which of the following losses would her coverage cover? A child is playing in the insured's car, puts it in drive, and backs into the neighbor's mail box. A child has bruises on her legs from receiving a spanking from the insured and must be seen by her pediatrician. A child riding the insured's horse falls off, breaking his collar bone. A child trips over a toy in the driveway, cuts her knee, and requires stitches.

a child trips over a toy in the driveway, cuts her knee, and requirers stitches

Which of the following provides insurance coverage for sickness, bodily injury, or accidental death and may include benefits for disability income? Medical and Accident Accidental Death and Dismemberment Accident and Health or Sickness Life

accident and health or sickness

What is reinsurance? An agreement between a ceding insurer an assuming insurer An agreement between an originating insurer and a ceding insurer An agreement between a domestic insurer and a foreign insurer An agreement between an insurer and an insured

and agreement between a ceding insurer and assuming insurer

All of the following actions can be described as twisting EXCEPT Making an incomplete comparison between the existing and proposed policies Explaining to client the advantages of permanent insurance over term and suggesting changing policies Misrepresenting the terms and conditions of the existing policy to make the new one more attractive Embellishing the terms of the proposed policy in order to convince the insured to switch

explaining to client the advantages of permanent insurance over term and suggesting changing policies

In accordance with American Institute Hull Clauses, a pro rata return of premium will be given for all the following reasons EXCEPT For each period of 30 consecutive days the vessel may be laid up in port not under repairs. In event of termination under the change of ownership clause. If policy is cancelled by the underwriters. If the policy is cancelled by the insured.

if the policy is cancelled by the insured

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce Without receiving written consent from a Federal Judge. Without receiving written consent from an insurance regulatory authority. Under any circumstances. Unless they have served an appropriate prison sentence.

without receiving written consent from an insurance regulatory authority