Guaranteed Exam Questions

A producer advises a policyholder that he should replace his life insurance policy with another, similar policy. The agent is advising this however for the sole purpose of earning a commission. What violation has the agent committed?

Churning.

In order to receive transportation expenses under the personal auto policy following damage to your auto caused by collision you must have...

Collision coverage.

The commercial crime coverage that would cover losses resulting from the theft of money, securities and other property by employees is

Employee theft

Limits of liability:

Insurer's liability for payment under a policy

The obligation to compensate injured workers without regard to fault or negligence is known as

absolute liability

Although a BOP will cover fire damage legal liability, which statement is true

The general aggregate does not apply to fire damage legal liability

Unless additional coverages are added to the BOP, the max amount of coverage on an outdoor sign attached to a building is limited to

$1000

An insured is the owner of a clothing boutique. She has a floorplan merchandise floater to cover the property that is financed until it is sold. At closing time a month ago, she noticed that three very expensive dresses had been stolen. However, she didn't file a report to her insurance company until recently. How much will her insurer pay for this loss?

90% of the written limit

An individual just applied for national flood insurance. How many days can she expect to wait before coverage is effective?

30.

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

A reasonable expectation that the act may cause injury or damage

Which of the following liability coverages in a general liability policy is not subject to aggregate limit?

Fire legal liability.

Which of the following provisions is usually found in homeowners policies and provides a replacement cost settlement to policyholders who carry adequate insurance?

Insurance to value.

Which is the other major coverage provided by the BO liability coverage form?

Medical Payments

Guaranteeing future dividends is considered to be an unfair and deceptive act known as...

Misrepresentation

Insurance company that is owned by the policyholders is called a...

Mutual insurer

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

Notice of claim

Retrospective Rating

Premium on large commercial account

The insurance company requires that an insured installs a fire alarm and an automatic sprinkler system as a condition for coverage. This is an example of what?

Protective safeguards endorsement

An insurer's right to take possession of property after having paid for the loss is referred to the right to...

Salvage.

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 their flower bed. The insured was found to be legally liable for this damage. this is an example of

Vicarious Liability

The limited theft endorsement designed for a landlord excluded all of the following except

a lawnmower the landlord owns and keeps at the rented premises

John has a disagreement with his insurer on the value of his damaged property. After making a written demand, both John and the insurer each selected an appraiser. The appraisers then agreed on a fair value without having to select an umpire. What condition did John use?

appraisal

When do binders expire?

as soon as the policy is issued

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

Insured and subcontractor named risk

care, custody, and control

Debris removal

included but when exceeds policy limit allows 5%

Policy limits are the max amount an insured may collect, or for which an insured is protected under the terms of the

policy

Homeland housing corp hold a mortgage on a property that john and carol thomas purchased. John and carol have a HO policy with Home Protection Insurance which has a mortgagee clause naming Homeland as a loss payee. If John and Carol suffer a fire to their home

the Thomases and Homeland will be considered co-claimants and receive loss reimbursement from home protection insurance.

Insured and subcontractor all risk

transit

An insurer must be fair in underwriting and must pay all covered losses of an insured. For the faithful execution of these duties, an insurer has the right to...

Accept the payment of premiums for all policies currently in force.

Which commercial property form is used to ensure buildings wow under construction?

Builders risk.

An insured's limit of liability applies to a total of damage for bodily injury and property damage resulting from one accident, which may be used in any combination of amounts, not exceed the single limit. What type of limit does this insured have?

Combined single

All are ways to handle risk except

Elimination

Which of the following is correct regarding debris removal coverage under BOP?

The insured's limit of liability is 25% of the sum of the direct loss of payment plus the deductible amount

Self-insured retention (SIR)

amount of loss the insured in willing to absorb without insurance protection An amount that is deducted from claims that are payable under an umbrella liability policy and that are not covered at all by any primary policy.