Guaranty Exam Missed Questions

Under which legal defense is there an apportionment of damages based upon the degree of fault of each of the plaintiffs and the defendant?

Comparative negligience

The Workers Compensation rating system that allows individual companies to set rates based on their ability to adequately cover losses and expenses which ultimately allows for competition is know an

Open rating plan

What sublimit in a liability policy set the maximum amount that will be paid for all claims arising from a single accident?

Per occurrence

The garage coverage form is written to cover the insurance needs of an insured in the business of selling, repairing, servicing or storing automobiles. Which of the following coverage are not included in the garage policy?

Physical damage on a customer's auto

Businessowners liability coverage automatically includes all of the following liability coverages EXCEPT

Pollution

For an additional premium, the extended coverages written on the basic form welling policy would cover which of the following?

Riot

An insured's child ran into a neighbor's planter on his bicycle and broke the planter and ruined the plants. The cost to replace the planer was $400, and the cost to replace the plants was $100. Which section of the insured's homeowners policy would pay?

Section II, with no deductible

In contrasting stock insurers with mutual insurers which statement is true?

Stock insurers are owned by the shareholders and issue nonparticipating policies

Which clause of a hull policy says that if the insured does not take immediate steps as soon as possible to minimize the loss and protect the property from further loss the coverage may be invalidated?

Sue and labor

All of the following statements regarding personal property coverage in the homeowners program are correct EXCEPT

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

A trucking company has a $1 million umbrealla policy in place. The businessowner agrees to maintain a 200/500/100 limit on auto liablity, and a personal liability of $400,000. After a car accident, the business is sued. Injuries are award to a singel injured party in the amount of $300,000. It turned out that the business actually carried only 100/250/50 auto liability limits. What is the total amount the umbrella policy will pay?

$100,000

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

10% of Coverage C anywhere in the world

All are legal defenses against a claim of negligence EXCEPT

Absolute liablity

Coverage D, additional living expenses, is intended to

Allow the family to maintain their normal standard of living

A house insured with a homeowners policy has been blown off its foundation by a tornado. It must be demolished and removed so a replacement house can be built. Which of the following is true about debris removal?

An additional 5% of the policy limit may be paid for debris removal

Coverage E (Personal Liablity) and/or Coverage F (Medical Payments to Others) would respond to a claim arising from all of the following situations EXCEPT

An insured's 14-year old son was throwing rocks at the neighbor's house and broke several windows.

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

All of the following are way to handle risk EXECPT

Elimination

An executive is accused of sexual harassment. What type of coverage would respond?

Employment practices liablity

Under the farm property and livestock forms, which of the following property is covered for loss by the perils of earthquake or flood?

Farm Animals

Which of the following is covered under a dwelling policy

Fire caused by an earthquake

Which of the following losses would be excluded from coverage under the farm property special form?

Fire caused by curing tobacco

Which homeowners form provides open peril coverage for dwelling (Coverage A) and contents (Coverage C)?

Form 5

A homeowner has misplaced some of her insured personal property and has no idea what may have happened to it. Which HO policy form would cover such a loss?

HO-5

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

HO-5

A scheduled personal property endorsement will be used to insure

Higher limits of coverage for fine arts items

Which of the following describes an insurer's responsibility for payment under a policy, as stated in the common policy provisions?

Limits of liability

In a businessowners policy (BOP), which of the following would be covered?

Medical expenses

Which of the following exposures is NOT coverd under a homeowners policy?

Medical payments to the insured

An applicant for property insurance owns a building in which combustible material is stored in the furnace room. From an underwriting standpoint, this risk would like to be considered a

Morale hazard

If the premiums collected by an insurer participating in the WYO flood program are insufficent to cover losses, which of the following would be true?

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

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

The loss of income for the time the diner was closed.

Supplementary payments under the personal auto policy include all of the following EXCEPT

Unlimited cost of bail bonds

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

Which of the following would be considered a covered auto on your personal auto policy?

Your farm wagon being towed by your pick up truck

During an ocean marine adventure, you are forced to jettison a piece of cargo to save the rest of the cargo and the ship. This is considered

a general average

A golfer slices a tee shot and the ball goes through the window of a house beside the fairway. The broke glass is paid by

the golfer's homeowner's liability coverage