Guaranteed Exam part 2

A liability policy that provides increased limits and expanded coverage over underlying casualty coverages is called

Umbrella

if an insurer declares that the value of a loss is $5,000, but the insured is confident that the amount of the loss is substantially diff. who would likely settle the dispute

arbitration

Where to check to understand what perils are not insured against

exclusions

Inspection and surveys as common policy condition

grants the insurer the right to make inspections regarding issued insurance

An automobile policy has limits of 100/300/50. The number 100 means

maximum limit for bodily injury claims that can be paid for one person

NJ Auto Full Insurance Underwriting Association does NOT offer

more than 500,000 for bodily injury

Twin brother offers to take exam since brother can not pass it, the commissioners action will be

revoke the license

if it will take 30 days to get a policy in-force on the cars to be sold. one option could be

to get a binder from the planned insurer

When Jane and her insurer could not agree on the amount of liability loss after her accident, the settlement was submitted to someone whose decision was then binding on both parties. What condition did Jane use.

Arbitration

An insured owns an automobile liability policy with bodily injury limits of $200,000 and an umbrella liability policy with a limit of 1,000,000. The insured is involved in an automobile accident and is found liable for injuries totaling $900,000. How will benefits be paid?

Auto liability= $200,000 and Umbrella Liability= $700,000

Which of the following commercial auto coverages provides protection for most commercial auto exposures except truckers, garages, and motor carriers.

Business auto coverage

How is a professional liability policy written

Claims-made

Power to conduct investigations and hold hearings

Commissioner

Two workers working in manufacturing, one gets hurt due to the others negligence:

Company is responsible for workers compensation clause that will ensue

The supplementary payments section of the commercial general liability policy would cover

Court costs. up to $250

An insured reads his policy and is under the impression that a particular loss will be covered. The insurer, however, insists that the loss will not be covered. What authority will settle this dispute?

Court system

Other than collision would cover financial losses due to

Damage to an insureds car caused by wind or hail. falling objects, fire, theft, windstorms, hail, and vandalism not covered

Covered by auto other-than-collision (comprehensive) coverage

Electrical Equipment

The Commercial Crime Coverage that would cover losses resulting from the theft of money, securities, and other property by employees is

Employee theft

Which of the following statements is correct regarding domestic coverage in a homeowners policy

Every homeowners insurance policy issued in NJ must provide coverage against liability from any injured domestic servant or household employee and dependents

Casualty insurance policies that have been in effect for a period of 90 days or more, may be cancelled for all of the following specific allowable reasons except

Excessive claims

Which of the following would be considered a peril

Fire

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

if named insured fails to elect tort option in writing for PIP

Limitation on lawsuit

An example of an alien insurer doing business in this state in one formed under the laws of

Mexico

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 a

Morale Hazard

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

Only for those states listed in the policy

What injury is less physical than those covered under bodily injury liability

Personal Injury Liability

The defendant being released on surety bail bond is the

Principle

Which of the following could most likely be issued a resident producer license

Sally lives in a neighboring state but has an office in New Jersey

Workers compensation statues require employers to meet capital reserves requirements sufficient to pay any claims that might arise. Employers can meet such obligations through all of the following except

Second Injury Funds Programs

In contrasting stock insurers with mutual insurers, Which statement is true

Stock insurers are owned by the shareholders and issue nonparticipating policies

There is a particular type of insurance that no insurer in NJ offers. In order for the New Jersey residents to obtain this insurance, they will need to be covered by

Surplus lines insurers

Rates for the NJ personal Auto Insurance Plan are set by adjusting -------------- upward by a specific percentage for insureds having 1 or more moving violations, 4 or more points, or an at-fault accident within the preceding 3 years.

Territorial base rates

While delivering the morning mail, a postman slipped and fell on the insured's pathway injuring his back and head. The insured will be liable for

The bodily injuries sustained by the postman

An insured was having a new home built. While digging the footing for the foundation, the contractor struck a solid rock formation and found that was necessary to blast the formation in order to remove the rocks. The force of the blast broke several windows and some chinaware in a neighbor's home several blocks away. Who pays for this damage?

The contractor

Who assumes absolute liability for any injury suffered by an employee at work

The employer

Who pays for benefits under a Workers Compensation Program

The employer of the employee who is injured

Who would not be covered by an insured uninsured motorist coverage

The insured causes a head-on-collision with the car of an uninsured motorist

An insured was backing his car out of the driveway and hit a fire hydrant. The automobile sustained $1,300 of damage to the bumper. The insured's auto policy has a $500 deductible. Which of the of following is true

The insured is responsible for the first $500 of any claim that he makes on his policy

Not covered by an insured's uninsured motorist coverage

The insured's car is hit by someone whose auto insurer is insolvent.

Penalty for violating cease and desist order

$5,000

An insured has an automobile policy with limits of 100/3000/50 and a deductible of $1,000. He is involved in an auto accident and crashes into another driver's auto. The other driver is awarded $125,000 for his injuries and 25,000 for the damage to his car. The insured's vehicle has damage in the amount of $1,200. Total payment made under the insureds policy is

125,200

Within how long of completing an approved prelicensing education course must a candidate submit a license application

2 year

Required limit of liability for property damage in auto policies in NJ

5,000

The commissioner conducts an investigation regarding a possible misconduct. At a hearing, the licensee is found guilty for knowingly violating a cease and desist order. the penalty is

5,000 for each violation

An insured owns 2 automobiles that are insured under a single policy. Each auto has uninsured/underinsured motorist coverage limits of 250/500/100. in the event of an accident, what is the total amount of bodily injury coverage available to the insured

500,000

In NJ, if the insurer chooses not to renew a casualty policy on the anniversary date, The insured must receive notice how many days before the expiration date of the coverage

60 days

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 contractual liability policy

Personal auto policy (PAP) does not include

A van used in the delivery business

Which of the following would be added for coverage under a property policy by an endorsement

Additional insureds

What is indicated on a certificate of insurance?

Amounts and types of insurance

covered by the medical payments coverage in a personal auto policy

An insured slams a hand in a car door while getting in, breaking the hand