GUARANTEED EXAM
What type of policy, which may be added by endorsement or purchased separately, may an insured purchase in order to provide coverage for other types of contracts?
A constructual liability policy
Which of the following persons is required to hold a producer's license in this state?
A salary employee who advertises and solicited insurance
After a covered loss on a homeowners policy, the insured must do all of the following EXCEPT
Abandon the property involved to the insurer
For negligent liability to exist, which is NOT a requirement?
An intervening clause
A driver who has an auto policy with limits of liability lower than required by state law would be considered
An uninsured motorist
In order to get a nonresident license in Louisiana, producers must
Apply and pay a few to a nonresident state that reciprocates
Chris, who is unlicensed, works part time in her father's insurance agency. She may perform all the following activities except,
Collect premium for in force policies
Under which legal defense may a claimant's recovery be defeated if the defendant can show that the claimant contributed, no matter how slightly, to the injury or damage?
Comparative negligence
Which of the following exclusions would specifically fall under Coverage E?
Contractual liability
Which of the following is not covered under the garage liability coverage form?
Contractual liability
The supplementary payments section of the commercial general liability policy would cover?
Court costs assessed against the insured in a suit
The commercial crime coverage that would cover losses resulting from theft of money, securities and other property by employees is
Employee theft
More favorable benefits for interstate railroad workers
FELA Federal Employers Liability Act
What is an insured contract?
Those contracts that are automatically covered under the exposure of premises coverage in a general liability insurance contract
What is the purpose of the ordinance of the law coverage endorsement?
to remove the exclusion of losses resulting from ordinances or laws
Which of the following is NOT part of Section II of the boatowners policy?
watercraft damage
Under coverage C, and at the request of an insured, personal property of a guest or residence employee is covered
while it is in any residence premises occupied by the insured
Under Worker's Compensation Act
widow alone- 32 1/2 % widow w/ one child- 46 1/2% widow w/ 2 children 65%
When reviewing a standard workers compensation and liability policy, the limits of coverage are described as Part One of the policy. The dollar limits of the benefits provided are stated
in the workers compensation law itself
Which of the following would NOT be covered by commercial inland marine policies?
Property lost due to military action
Which of the following types of property is NOT moveable?
REAL PROPERTY
If an insured purchases an insurance policy with.a large deductible, what risk management technique is the insured exercising?
Retention
Business auto coverages apply only to those autos that are identified as covered autos in the DEC by entry Which symbol afford the broadest coverage?
1
If a producer allows his license to LAPSE..
2 years
If a producer allows his license to lapse, within what time period may the producer reinstate the same license?
2 years
How long is the period of time in which a licensee must renew his or her license?
90 days prior to expiration
An extended nonowned coverage endorsement provides protection to
Only the person(s) named on the policy
In reference to insurable interest, which of the following is not an element of insurable risk?
Personal
When an insured's gardener 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 they flower bed. The insured was found legally liable for this damage. This is an example of
Vicarious liability
Which of the following would be considered a covered auto on your personal auto policy?
Your farm wagon being towed by your pickup truck
Which commercial property form is used to ensure buildings while under construction?
builder's risk
In order to receive transportation expenses under the personal auto policy following damage to your auto caused by collision, you must have
collision coverage
What two policy components are part of every commercial policy package?
common policy declarations and common policy conditions
An agent suspects that his insurer is committing insurance fraud. Within how many days of that discovery must the agent report the fraud to the Department of Insurance?
60 days
Section III of the business auto policy provides physical damage coverage. All of the following are physical damages that may be selected coverages EXCEPT
Limited peril coverage
Fair rental value coverage in the dwelling policy is similar to what homeowners policy form?
Loss of use
Which is not true of workers compensation coverage?
Medical payment benefits are limited
Loss Treasures has a guard dog in a fenced lot to protect a salvage area...
Mental anguish is a covered injury
What are two sources for workers compensation insurance?
Monopolistic state fund and competitive market
Policy limits are the maximum amount an insured may collect, or for which an insured is protected under the terms of the
Policy
All of the following are true about the cancellation provision of a commercial insurance policy EXCEPT
The insurer is required to provide proof that the insured received the cancellation notice prior to CX the policy
Which of the following coverages are not included in a garage policy?
physical damage on a customers auto
Coverage B- Personal and Advertising Injury Liability responds to claims arising from
suits alleging infringement of a copyright
Which of the following injuries may be covered under Coverage C- Medical Payments of a commercial general liability policy?
Injuries to a member of the general public that occurs on premises
Garagekeepers insurance provides coverage for the insureds liability for
damage to autos left in the insureds car for repair
What kind of coverage does for DP-3 provide?
open peril
A farm owner policy is usually what type of policy?
package policy
The personal property off-premises extension of dwelling forms provides limits of coverage up to
!0% of Coverage C anywhere in the world
An insured has a personal umbrella with a $2,000 self-insured retention (SIR). Assuming no other policy is involved, how much would the umbrella pay after a $12,000 personal injury liability claim?
$10,000
The Association's obligation for unearned premium resulting from the insolvency of a member insurers the amount of unearned premium or
$10,000
If an individual willfully violates provisions of the Fair Credit Reporting Act, what is the maximum civil penalty?
$2500
The obligation to compensate injured workers without regard to fault or negligence is known as
Absolute liability
Which of the following terms describes replacement nonmechanical sheet metal or plastic parts on the exterior of a motor vehicle?
Aftermarket crash parts
A general liability policy will respond to claims against an insured when bodily injury or property damage is caused by
An insured's negligence
Which of the following conditions is NOT included for farm liability in addition to the common policy conditions?
Arbitration
A personal umbrella policy may act as excess over any of the following insurance coverage policies except
Auto collision coverage
In the event of a loss, the most an insurer will pay is
The amount of the loss or the limits as stated in the policy, whichever is less
What was the purpose of the Motor Carrier Act of 1980?
To establish financial responsibility requirements for interstate motor carriers
An agent who knowingly misrepresents material information for the purpose of an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as
Twisting
When does the insurer's duty to defend a suit or claim end in commercial general lability policy?
When loss payments equal the applicable amount of insurance
While engaged in a pick-up soccer game in the neighborhood park, the insured collides with another player, breaking his nose. Would the insureds homeowners medical payments cover the injury?
Yes, medical payments coverage also applies off the insured premises
The commercial crime coverage that would cover losses resulting from the theft of money, securities and other property by employees is
employee theft
An insurer incorporated under the laws of another state but doing business in this state is considered
foreign