Guaranteed Exam Attempt 1 - P&C

All of the following statements regarding personal property coverage in the homeowners program are correct EXCEPT a. Earthquake coverage may be added by endorsement b. The HO-3 policy covers the mysterious disappearance of personal property c. Coverage on money is limited to $200 d. Personal property coverage is usually 50% of the Coverage A limit

b. The HO-3 policy covers the mysterious disappearance of personal property

What is the maximum civil penalty per violation of the regulations of the insurance Code that defines acts that are subject to fines or license suspension or revocation

$5,000

Once an insurer receives a claim, within how many days must the insurer provide claim forms to the insured?

10 working days

The personal property off-premises extension of dwelling forms provides limits of coverage up to

10% of Coverage C anywhere in the world

An employee was injured during the course of their employment. According to the workers compensation laws in this state, the employee is required to report the injury to the employer within

120 days

An insured has a maximum limit of coverage available under her liability policy during a policy year, regardless of the number of claims made or the number of accidents. Her limits are restored at the policy anniversary. What type of limit does this insured have?

Aggregate

If the premiums collected by an insurer participating in the WYO flood program are insufficient to cover losses, which of the following would be true? a. Federal Insurance Administration will remove the insurer from the NFIP b. The insurer will be reimbursed for the excess costs by the NFIP c. The insurer must cover the loss of its surplus d. The insurer must apply for disaster relief funds

b. The insurer will be reimbursed for the excess costs by the NFIP

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 package policy?

Common policy declarations and common policy conditions

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 the theft of money, securities, and other property by employees is

Employee theft

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

HO-5

Under the employee theft coverage, when a covered employee is found to have participated in a dishonest act, the coverage for that employee will terminate

Immediately

When reviewing a standard workers compensation and employers liability policy, the limits of coverages are described in Part One of the policy. The dollar limits of the benefits provided are stated

In the state workers compensation law itself

The other states' insurance section of a workers compensation policy provides coverage

Only for those other states listed in the policy

The extended non-owned coverage provides protection for

Only the person(s) named on the policy

Ajax shipping has contracted to transport 10 crates of computer equipment from Washington state to Tijuana, Mexico, for a fee of $3,800. Ajax arranged for Calamity Ship Lines to pick up the crates at the dock in Puget Sound and to deliver the crates to the dock in Tijuana. To cover the possible loss associated with the crates being damaged or lost, Ajax should purchase

Prepaid freight insurance that will attach to the cargo policy

Coverage B - Personal and Advertising Injury Liability responds to claims arising from

Suits alleging infringement of a copyright

Business auto coverages apply only to those autos that are identified as covered autos in the declarations by entry of the appropriate numerical symbol. Which symbol affords the broadest coverage?

Symbol 1

The insured's guest cottage, which is insured under his farm policy, is being rented by a young couple. When one of the renters is injured in the rented property, the insured files a claim under his farm liability coverage. How will the coverage respond?

The claim will not be covered

What is the purpose of the ordinance or law coverage endorsement?

To remove the exclusion of losses resulting from ordinance or laws

An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as

Twisting

An insured has the scheduled personal property endorsement attached to his homeowners policy. If the insured acquires new works of art, when must the insurer be notified for the new works of art to be covered under the endorsement?

Within 90 days

Your friend's dog that your are keeping while the friend is out of town bit a visitor in your home. Does your homeowners liability coverage apply?

Yes, the coverage would apply for any animal in your care

Which of the following would be considered a covered auto on your personal auto policy (PAP) a. Your farm wagon being towed by your tractor b. Your farm wagon being towed by your pick up truck c. Your pickup truck used for deliveries of your retail business d. Your farm tractor

b. Your farm wagon being towed by your pick up truck

With regard to homeowners Section II, which of the following does NOT meet the definition of insured location? a. A secondary residence acquired by the insured during the policy period b. A plot of farmland owned or rented by the insured c. A meeting hall rented to the insured to hold a reception for his daughters wedding d. A cabin rented to the insured for use on a family vacation

b. A plot of farmland owned or rented by the insured

All of these types of property may be covered on a farm property coverage form EXCEPT a. Farm machinery b. Growing Crops c. Barns d. Silos

b. Growing Crops

Which of the following describes an insurer's responsibility for payment under a policy as stated in the common policy provisions? a. Premiums b. Limits of Liability c. Consideration d. Utmost good faith

b. Limits of Liability

Which of the following losses would be covered under the Coverage B - Personal and Advertising Injury Protection of commercial general liability insurance? a. Breach of contract b. Non-physical injury to a third party c. Copyright infringement d. Contractual liability

b. Non-physical injury to a third party

Which of the following is NOT available in a package policy? a. Medical payments b. Professional Liability c. Business Auto Liability d. Fire Illegal Liability

b. Professional Liability

Which of the following types of bonds guarantees that a supplier will furnish supplies, materials, products, and equipment as specified in the written contract? a. Bid bond b. Supply bond c. Labor and materials bond d. Performance bond

b. Supply bond

All of the following qualify as "insured contract", as defined in commercial auto policies EXCEPT a. Agreement for demolition near a railroad b. A lease of premises c. A sidetrack agreement d. Easement or license agreement

a. Agreement for demolition near a railroad

Which of the following injuries may be covered under Coverage C - Medical Payments of a commercial general liability policy? a. Injuries to a member of the general public that occurs on premises b. injuries to an employee due to participation in an athletic event c. Injuries to an employee while performing their job duties d. Injuries to an independent contractor on the premises

a. Injuries to a member of the general public that occurs on premises

A licensee who has moved to PA from out of state must provide which of the following before becoming licensed as a resident in this state? a. Proof of licensing or a letter of clearance from the previous home state b. A notarized copy of a PA driver's license c. A current utilities bill d. A United State Postal Service change-of-address form

a. Proof of licensing or a letter of clearance from the previous home state

All of the following are true about the cancellation provision of a commercial insurance policy EXCEPT a. The insurer is required to provide proof that the insured received the cancellation notice prior to cancelling the policy b. The insurer is required to give advance notice of its intended cancellation to the insured c. The insurer may cancel the policy by mailing or delivering written notice of cancellation to the first named insured d. The insured may cancel the policy at any time by mailing or delivering written notice of cancellation to the insurer

a. The insurer is required to provide proof that the insured received the cancellation notice prior to cancelling the policy

Under the common policy conditions of a policy, all of the following are TRUE about changes in a policy EXCEPT a. The insurer must obtain permission from all named insureds to make a change b. The policy can be changed only by written endorsement issued by the company c. Changes in the policy can be requested only by the first named insured d. Changes can be made only with the insurance company's consent

a. The insurer must obtain permission from all named insureds to make a change

Supplementary payments under the personal auto policy include all of the following EXCEPT a. Unlimited cost of bail bonds b. Loss of earnings up to $200 a day c. Defense costs d. Costs of appeal bonds

a. Unlimited cost of bail bonds

After a covered loss on a homeowners policy, the insured must do all of the following EXCEPT a. If requested, submit to an examination under oath b. Prepare an inventory of damaged and undamaged property, including bills, receipts, and related documents c. Abandon the property involved to the insurer d. Allow the insurer to inspect the property as often as reasonably necessary.

c. Abandon the property involved to the insurer

Which of the following losses would be excluded from coverage under the farm personal property special form? a. Theft of property from the insured's residence b. Drowning of livestock c. Fire caused by curing tobacco d. Losses of livestock caused by attack of dog or wild animals

c. Fire caused by curing tobacco

Which of the following is NOT found in the common policy declarations of a commercial package policy? a. Amount of premium for each coverage part b. Policy number c. Insuring agreement d. Schedule of coverage parts

c. Insuring agreement

Which of the following risks would be eligible for coverage under a dwelling policy form? a. A single-family dwelling occupied by a single person who operates a business of buying and selling firearms in the basement b. A single-family dwelling that contains a beauty shop that employs three full time operators c. A single-family dwelling that is located on farm premises d. A duplex that is occupied by two families, each of which have a bedroom rented to a boarder

d. A duplex that is occupied by two families, each of which have a bedroom rented to a boarder

All of the following persons would be covered under a business auto policy EXCEPT a. A person operating an auto borrowed by the named insured, with permission b. A person operating a covered auto with the permission of the insured c. The owner from whom a trailer is borrowed and connected to an auto owned by the named insured d. An employee of the named insured operating an auto that is owned by the employees spouse

d. An employee of the named insured operating an auto that is owned by the employees spouse

Which of the following would NOT generally be included in the supplementary payments portion of a liability policy? a. Cost of first aid to others at the time of an accident b. Expenses the insured incurs, as part defense, at the company's request c. Loss of earnings due to the accident d. Damage to property owned by the insured

d. Damage to property owned by the insured

Which of the following is covered under a dwelling policy? a. freezing plumbing systems b. Flood or surface water c. Structures used for commercial manufacturing d. Fire caused by earthquake

d. Fire caused by earthquake

Which of the following is NOT a characteristic of a difference in conditions (DIC) policy? a. It is written with a high-deducible b. It provides all-risk coverage c. It provides flood and earthquake coverage d. It is a standard policy

d. It is a standard policy

Which of the following statements is NOT true of a commercial umbrella liability policy? a. It can be issued with a professional liability policy b. It would provide excess insurance over an existing general liability policy c. It provides protection as primary coverage where there is no other existing coverage d. It would automatically cover all losses as they occur

d. It would automatically cover all losses as they occur

The basis of insurance is sharing which of the following among the members of a large homogeneous group with similar exposure to loss? a. Hazards b. Perils c. Loss d. Risk

d. Risk

Which of the following is FALSE concerning liability coverage of a business auto policy? a. The company will pay the premium on any appeal bond b. The company with pay any interest accruing between time of judgement and payment c. The company will defend any suit alleging bodily injury (BI) or property damage (PD) covered by the policy d. The company will reimburse the insured for all loss of earnings

d. The company will reimburse the insured for all loss of earnings

The broad cause of loss form in the commercial property policy contains three perils in addition to the basic form perils. Which of the following is NOT one of those three perils? a. Water damage b. Weight of ice, or sleet c. Falling objects d. Utility Service

d. Utility Service