Guarantee Exam (1)

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 an insurance regulatory authority

How are property protection insurance benefits paid?

Without regard to fault

John is a producer with XYZ Insurance Company. To sell more policies, John has been offering his clients gifts of stocks and bonds. If John is convicted of the misdemeanor of rebating for this practice, what is the maximum penalty he may have to pay?

$100 for each violation

How is a licensee's date of Continuing Education credit review determined?

By the licensee's month and date of birth

What sublimate in a liability policy sets the maximum amount that will be paid for all claims arising from a single accident?

Per occurrence

An applicant for a disability insurance policy has a heart condition of which they were unaware and therefore they answer no to the question pertaining to heart problems on their application. Their answer is considered to be a

Representation

A driver who has an auto policy with the limits of liability lower that required by state law would be considered

A uninsured motorist

Which endorsement, when added to the personal auto policy, alters the definition of covered auto to include motor homes, golf carts, or motorcycles?

Miscellaneous-type vehicle endorsement

An insurance company that is owned by the policy holders is called a

Mutual insurer

If an insurance policy prohibits the insured from relinquishing ownership of insured property that has been damaged, it is prohibiting

Abandonment

You are at fault in an auto wreck out of state. How does your company adjust?

At least to the minimum required by that state

Snidley insurance issued an insurance policy to Joe on Monday. Snidley Insurance decides to terminate Joe's policy exactly 2 weeks later and delivers to Joe a notice of termination that same day. When would the termination Joe's policy become effective under the Essential Insurance Act?

20 days after the notice is delivered

Which of the following agencies administers the National Flood Insurance Program?

FIA

Which form insures both buildings and personal property on an open peril basis?

HO 5

A scheduled personal property endorsement will be used to insure

Higher limits of coverage for fine arts items

Insurance rates developed by the underwriter based on his skill and experience instead of actuarial analysis are known as

Judgment rates

An insured's child ran into a neighbor's planter on his bicycle and broke the planter and ruined the plants. The most to replace the planter was $400, and the cost to replace the plants was $100. Which section of the insured's homeowners policy would pay?

Section II with no deductible

Late one night on his way home from a local bar, a man runs his covered auto into an insured's car. The man was operating his vehicle while under the influence of alcohol. The insured had no personal injuries, but her car had damage. Her insurance policy paid for the damages to her car. The subrogation provision in her policy allows

The insurer to attempt to recover damages from the man and/or his insurance company

An insured has decided to never drive another vehicle and wants to transfer his auto insurance policy to his wife. What does the insured need to transfer the policy?

The written consent of the insurer

When an insured's Gardner was spraying weeds in his lawn, he failed to notice that the wind was drifting the spray into the neighbor's yard where he damaged their flower bed. The insured was found to be legally liable for this damage. This is an example of

Vicarious liability