Examfx practice test

A policyholder has an equipment breakdown policy with a $200,000 limit, If a boiler expolision causes $100,000 damages to the boiler itself, damage to the insured's building, and $30,000 of expediting expenses, how much will the insured collect under the policy?

$175,000

Which loss listed below would be fully covered by a homeowners policy?

$2,000 silver tea set stolen

What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?

$2,500

Andy the producer violates the Insurance Code very intentionally, in order to substantially increase his commissions. How much would he likely be penalized?

$25,000

The Maximum fine for violating the Insurance Code is

$25,000

In the computer fraud crime coverage form, what limit is placed on each occurrence of the loss of manuscripts, drawings, or records?

$5,000

If an insured covered under a Mobile Homeowners Policy moves the mobile home to protect it from a covered peril, the policy will pay up to

$500

A producer has been notified by the commissioner to stop using an unapproved trade name. How many days does the producer have to change the trade name before facing a fine?

10 days

Which of the following is representative of the minimum liability requirement for auto policies issued in this state?

15/30/25

A temporary license in this state is valid for

180 days

Under the additional living expenses coverage, if civil authority prohibits the insured from using the dwelling because of direct damage to a neighboring location from a peril covered in the insured's policy, loss would be covered for up to

2 weeks

If a person demands a hearing, the Commissioner of Insurance must set the hearing within

30 days

When a resident producer changes his residence address, the Insurance Department must be notified within

30 days

The commissioner is elected to a term that lasts for

4 years

Existing and replacing life insurers are required to keep copies of all summaries, notices, and statements used in sales transactions until the conclusion of their next examination by the Insurance Department, or for a period of at least.

5 years

With respect to auto insurance, the term owned autos includes all of the following EXCEPT:

A pickup or van titled to and used in the named insured's business

Which of the following producers will be required to complete continuing education hours to renew his license?

A producer licensed 4 years ago who holds only one line of authority.

This state provided for a temporary licenses for all of the following EXCEPT

A producer's retirement

in the event of a loss covered by the policy, if the insurer requests a signed sworn proof of loss, the named insured is required to submit it within

A specified time

The commercial general liability coverage form excludes bodily injury or property damage that the insured has assumed under any contract or agreement. However, the exclusion does not apply to certain types of contracts, as long as the injury or damage occurs

After the execution of the contract

When transacting business in this state an insurer formed under the laws of another country is known as a/an

Alien insurer

Who is required to be a member of the Louisiana Automobile Insurance Plan?

All insurers writing motor vehicle insurance in the state

What is a foreign insurer

An insurer with a home office in another state

Employers liability insurance, Part Two of a standard workers compensation and employers liability (WC&El) policy form, excludes.

An intentional act that is caused by the insured.

While an insured's covered auto is in the repair shop following damage caused by a collision, the insured would have coverage for which of the following vehicles under a personal auto policy?

Any vehicle not owned by the insured, but furnished for use while the covered auto is out of normal use because of repair.

Homeowners policies provide coverage for

Business property while on the residence premises

The Insurance Department has received complaints about a particular producer regarding policy-selling conduct. What can be issued that would legally force the producer to stop the acts in violation.

Cease and desist order

Which of the following is an additional coverage that is covered by the broad causes of loss form?

Collapse

What is the legal defense that can be used in most states in which proportionate damages may be awarded when both the plaintiff and defendant were negligent?

Comparative negligence

The transfer of money from inside a banking premises to a person other than a messenger outside those premises or to a place outside those premises is covered under which commercial crime coverage?

Computer Fraud

In which of the following sections of a commercial auto policy will you find specific information about the policy period?

Conditions

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

Conditions

Which of the following risks is eligible for coverage under a bussiness owners policy?

Condominiums

With regards to a homeowners policy, Which coverage provides for indirect or consequential losses?

Coverage D

An automobile liability insurance policy, in addition to providing coverage to the insured while within the state of Louisiana, must provide coverage for operating the vehicle in all of the following states EXCEPT:

Cuba

A unique feature in a bilee form is that it covers

Customer's property whether or not the insured has been negligent

States with monopolistic state workers compensation funds

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

Residential structures, including individual condominium units, and their contents are insured by what part of the National Flood Insurance Program?

Dwelling policy form

What method of premium computation relates an employer's losses, payroll, and premiums to the rating bureau's classifications of operations .

Experience modification factor

An insurance company has published a brochure that inaccurately portrays the advantage of a particular insurance policy. What is this an example of?

False advertising

When doing business in this state, an insurance company that is formed under the law of another state is known as which type of insurer?

Foreign

Which of the following coverages would provide protection for the liability of an auto repair garage to owners of vehicles destroyed in the garage by fire?

Garagekeepers

The policy conditions define

How parties to the contract must act following a loss.

If a farm building or structure is vacant or unoccupied, which is true?

If for 120 consecutive days, the limits applicable to the building and its contents are reduced by 50%

The Pro rata liability clause is designed to protect the principle of

Indemnity

Which bonds are required by courts whenever someone seeks a court order stating another person must or must not dot something?

Injunction bond

The Residential Condominium Building Association Policy (RCBAP) is used for residential condominium building associations to cover the entire building under one policy. Which of the following statements about RCBAP is true?

It does not protect the individual owner from loss to personal property owned exclusively by the unit owner.

While cutting grass in your yard with your brother's borrowed lawnmower, the fuel line ruptures and the lawnmower is destroyed in the fire. How will your HO liability react?

It will cover the damage

An insurer publishes intimidating brochures that portray the insurer's competitions as financially and professionally unstable. Which of of the following best describes this act.

Legal, under any circumstances

Which of the following policy provisions would automatically broaden coverage under a policy without requiring additional premium

Liberalization

A restaurant is out of business for 3 days after an insured's automobile hits and electrical pole. The pole fails and hits the building, knocking out all electrical power supply. Which of the following is NOT covered under the insured driver's auto policy?

Lost revenues from the restaurant

If an insurance company underwriter discovers that an applicant for a policy has been convicted of submitting a fraudulent claim to an insurer in the past, the application may be rejected as a

Moral Hazard

An insured owns and operates a commercial business. He has included a business income coverage form with his commercial package policy. When the insured's business is severely damaged by fire, the business income coverage will pay for

Net income plus continuing expenses of the business.

Which of the following terms refers to other insurance that is written on the same risk, but not on the same coverage basis?

Nonconcurrency

Damage to insured property caused by earth movement or earthquake is covered under which of the following homeowners forms?

None

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

Occurrence

A deli owner has a businessowners liability policy. When a customer slipped and hurt herself at the deli, the liability policy paid for medical expenses. The customer, however, is now suing the business owner because she claims there was no caution sign warning her that the floor was wet. What is the insurer obligated to do.

Pay to defend the policy owner in the lawsuit because liability coverage contains a duty-to-defend provision

Which surety bond guarantees that bills for labor and materials will be paid by the contractor as they are due?

Payment bond

An insured has a liability policy that sets the amount for all claims that arise from a single incident at $50,000. Which type of limit of liability does this insured's policy have?

Per Occurrence

If an insured bakery is sued because its marketing states that the products of another bakery may not be safe, which coverage of a commercial general liability policy will defend the suit?

Personal and advertising liability

Who would participate in a Write Your Own (WYO) flood insurance program?

Private insurers that wish to write and service National Flood Insurance policies on a no risk-bearing basis.

While an insured was towing a utility trailer with his auto, the trailer came loose and ran into a store front. What part of the insured's auto policy would pay for the damage to the store?

Property Damage Liability

Limited fungi, wet or dry rot, or bacteria endorsement in HO policies applies to

Property and liability losses

A Standard Fire Policy may be written to cover all of the following EXCEPT

Reinsurance

What type of information would be found in a policy's insuring agreement?

Renewal dates

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

Replacement cost

When the insured's car was totaled in a recent accident, the owenership of the car was transferred to the insurer. The insurer then sold off the wrecked car to recover some of the loss it paid to the insured. What is the term for this action?

Salvage

Which program was established to encourage employers to hire workers who may have suffered previous work related injury that, when combined with another injury, could be disabled to a greater degree than that of the single injury?

Second Injury Fund

A Nonadmitted insurer who provides insurance coverages that are not available form an admitted insurer is called

Surplus lines insurer

The National Do NOT call registry was created to regulate

Telemarketers

An apartment occupant's personal property would be insured under which homeonwers form?

Tenant broad form (HO-4)

Which of the following entities has the power to issue a cease and desist order

The Commissioner

Which of the following is Not the consideration in a policy?

The application given to a prospective insured

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

The customer's associates, friends, and neighbors provide the report's data.

A parking garage owner completed major renovations to a parking garage just prior to selling it to another company. Three months later, overhead concrete fell on to cars in the second floor level. Under the garage coverage policy conditions, which of the following is true?

The damage occurred when the concrete fell

The occurrence form trigger is based on which of the following

The date when injury or damage occurs

The common policy condition is a modular part combined with other parts to create the contract. The common policy condition section contains provisions that are applicable to all lines of coverage that may be included in the policy. Which of the following provisions would be found in the common policy conditions section of the policy?

The first named insured may cancel the policy at any time by giving written notice to the insurer.

All of the following are other coverages included in both the broad and special form dwelling policy EXCEPT:

Theft of personal Property

A specific coverage part is listed on the commercial package policy declerations page, but there is no premium shown. What does that mean,

There is no coverage.

Which of the following is NOT covered under Coverage E - Scheduled Farm Personal Property?

Turkeys

An insured relocated to another state for work. However, she still owns and insurers a house in this state, but has had one living in it for 3 months. She is also storing some of furniture and clothes in the house. From an insurance standpoint, the insured's house is considered?

Unoccupied

Supplementary payments on a CGL provide all of the following EXCEPT

Up to $500 a day for lost earnings and $2,000 for the cost of bail bonds

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

Under the business auto coverage form, mobile equipment is covered for liability insurance

When being carried or towed by a covered auto

When are the limits for uninsured motorist coverage set?

When the coverage is purchased

While Workers Compensation is intended to be the exclusive remedy for work related injuries, under which of the following circumstance may an employee or an employee's dependent sue the employer?

When the damage result from the intentional acts of the employer

When is an employee entitled to rehabilitation services under Workers Compensation?

When the injured worker is unable to earn wages equal to what they earned before the injury.

The Association's obligation for the payments of claims is $300,000 per occurrence under all of the following policies, EXCEPT:

Workers Compensation

If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's

ancestry

The Louisiana insurance Guaranty Association Board of Directors are placed in office by

election and appointment

According to the doctrine of contributory negligence, when an individual is found to have contributed to his or her own loss in any way, another party

may not be held liable

All of the following are supplemental payments included in the liability section of a personal auto policy EXCEPT

up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident