Guarantee Exam

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

In a CGL policy, under Coverage Part A - BI and PD, coverage is provided for what? (employers, premises, or machinery?)

premises

True or false: The company will reimburse the insured for all loss of earnings under the liability coverage of a BAP.

false

True or false: A strawberry patch owned by the insured is considered an insured location under their HO policy

false; insured location cannot include farmland or any premises used for business purposes

if an ins'd has the add'l covg provision, how does it affect the policy premium?

there is no add'l premium

The ordinance or law covg endorsement serves what purpose?

to remove the exclusion of losses resulting from ordinance or law

True or false: Agreement in an insurance contract is when one party accepts the exact terms of the other party's offer.

true

True or false: An outdoor sign will be covered under a bldg & personal prop covg form

true

True or false: Fire legal liability in a Gen'l Liability Policy is NOT subject to the aggregate limit

true

True or false: For an additional premium, the extended coverages written on the basic form DP would cover riots.

true

True or false: Stock insurers are owned by shareholders

true

True or false: Stock insurers issue nonparticipating policies

true

True or false: The limited theft endorsement designed for a landlord does cover theft of a lawnmower the owner keeps at one of his rental properties.

true

An applicant for property insurance owns a building in which combustible materials are stored in the furnace room. From an underwriting standpoint, this risk would likely be considered what type of hazard?

morale

How many hours of continuing education must licensees complete every renewal period on the subject of ethics?

3

What policy would a business owner whose business fills scuba tanks most likely need to insure unfired pressure vessels and compressors?

Equipment breakdown

The _____________ describe the insurer's responsibility for payment under a policy, as stated in the common policy provisions

limits of liability

For there to be a negligent liability, all of the following must exist except?

a reasonable expectation that the act may cause injury or damage

Define accident

a sudden, unplanned and unexpected eventm not in control of the ins'd, resulting in injury or damage

An insured has $5,000 of medical coverage under a PAP at the time of a covered accident. The insured and 3 passengers are injured. The Ins'd's medical expenses are $8k, the 1st passenger's total $4k, the 2nd passenger's total $6.5k, and the 3rd passenger's total $1.2k. How much will the policy pay under the medical payments coverage?

up to $5,000 per person; a total of $15,200

When an ins'd's gardener was spraying weeds in his lawn, he failed to notice that the wind was drifting the spray to the neighbor's yar, thereby damaging their flower bed. The insured was found to be legally liable via what kind of liability?

vicarious liability

When does an insurer's duty to defend a suit or claim end in a commercial general liability policy?

when loss payments equal the applicable limit of insurance

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

2 men are partners in a moving co. They have 2 trucks used to move prop. of others. They should insure those trucks under a

Business auto policy

Under what circumstances will a worker be paid for the first 7 days of being unable to work?

If the worker misses more than 21 consecutive days

GA law requires that every Fire insurance policy covering prop. located in the state conform to the provisions of

The Standard Fire Policy

If the premiums collected by an ins'r participating in the WYO flood program are insufficient to cover losses, what would be true?

The ins'r will be reimbursed for the excess costs by the NFIP

What are the three categories of insurable interest?

business, blood, and financial

An insured's home catches fire. As a result, the insured's family must stay in a motel until the home is repaired. The cost of the motel stay would be considered what type of loss?

consequential loss; indirect loss

What element of an insurance contract requires paying premium and providing a statement of good health?

consideration

The suppl. payments section of the CGL policy would cover

court costs assessed against the ins'd in a suit

If a fire erupts in the kitchen and spreads to an upstairs bedroom, what kind of loss is that?

direct

True or false: a corporation is insured under a CGL policy and is named in a lawsuit to recover expenses for BI and PD from a claim. The insurance company is obligated to provide coverage for spouses of officers and stockholders in this suit.

false

True or false: in an HO policy, Covg E and/or Covg F would respond to a claim arising from the ins'ds 14 y.o. son throwing rocks at the neighbor's house, breaking several windows

false

True or false: policy dividends issued by mutual companies are guaranteed and not taxable

false

True or false: the equipment breakdown coverage form provides coverage for bodily injury liability

false

An insured's diner suffered a fire loss. In addition to the damage caused by the fire, the floor covering had to be replaced because of the water damage. It took 4 weeks for repairs to be completed, during which time the insured was without income. The insured's policy includes both direct and indirect loss coverage. What part of the loss would be paid as indirect loss?

the loss of income for the time the diner was closed

The defendant being released on a surety bail bond is what party?

the principal; the defendant has made a promise to perform (to show up in court at the specified time)

If an applicant submits the initial premium with an application, which action constitutes acceptance?

the underwriters approve the application

True or false: Under a BOP, business income losses are payable for 12 consecutive months following the occurence

true

True or false: insurance written in support of public policy can best be described as having legal purpose

true

An insured and his spouse were traveling down an icy road and hit a sign, accumulating $1,350 damage to their car. They have a $250 deduct. How much will they collect on this claim?

$1,100

The BOP extension coverage form for personal property off-premises is limited to ______

$10,000

The BOP extension covg form for pers prop off-premises is limited to

$10,000

What is the limit of liability for a BOP regarding the debris removal coverage?

25% of the sum of the direct loss payment + the deductible amount

What type of authority is found in the agent's contract? (express, implied, or assumed)

express

Under the employee theft covg, if an employee is found to have participated in a dishonest act, the covg on that employee will terminate when?

immediately

How does insurance distribute the financial consequences of individual losses?

it transfers the risk to all persons insured

An agent's license has been suspended, but he continues to transact insurance for his existing clients. This would be considered what category of crime?

misdemeanor

Medical benefits under worker's compensation statutes are provided to what limit?

no limit; the limit does not exist

What document notifies the insurer of events that may lead to a possible claim?

notice of claim

Policy limits are the max amnt an ins'd may collect, or for which an ins'd is protected under the terms of the

policy

True or false: your farm wagon being towed by your pick-up truck would be considered a covered auto on your PAP

true


संबंधित स्टडी सेट्स

African American studies test 1 Ch 1-3 quiz study

View Set

B. Images of Change Management (Palmer)

View Set

World History Test chapters 3 & 4

View Set

environmental science a - unit 4: biodiversity

View Set

Drugs for Multiple Sclerosis EAQ

View Set

N120 HESI Case Study: Medical/Surgical: Osteoporosis

View Set

med surge immunologic systems infections

View Set

Respiratory System Infection Case Studies and Homework

View Set