Insurance 2

A $100,000 house insured on a policy with an 80% coinsurance requirement has a fire that caused $40,000 of damage; the owner has a policy with $60,000 coverage. How much can the owner collect for his loss?

$30,000

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

$30,000

What is the minimum required medical benefit coverage in motor vehicle insurance policies sold in this state?

$5,000

An insured has a personal auto policy with both comprehensive (other-than-collision) and collision coverage. His car is stolen and recovered five days later. If the insured claims transportation expenses of $20 per day, how much will his policy pay?

$60

A tow truck was stolen from the insured's premises. The insured has loss of use coverage on his commercial auto policy. How much will the insured be able to collect from the coverage if unable to use the town truck in its operations for 40 days?

$600

Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to

10 years.

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 days

In the event of theft of a covered vehicle, transportation expenses coverage in a personal auto policy will cover the expenses starting how many hours after theft?

48 hours

Professional photographers and musicians may insure their equipment with

A commercial articles floater.

When other insurance is written on the same basis as a commercial property policy, the obligation of the insurer is to cover

A share of the loss.

Which of the following would be considered an uninsured vehicle?

A vehicle fleeing a hit-and-run accident

When transacting business in this state an insurer formed under the laws of another country is known as a/an

Alien insurer.

How much is covered for debris removal under the HO property additional coverages?

All reasonable costs

In Pennsylvania, all of the following classes of employees may be excluded from the requirement of being covered under Workers Compensation insurance coverage, EXCEPT

An employee engaged in seasonal agricultural labor that works 60 days in a calendar year.

Because an agent is using stationery with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe?

Apparent

A builder's risk form is most often written as which of the following?

Completed value form

The designation symbols used in commercial auto policies can be found in which policy section?

Covered Auto

An individual's construction company leaves mobile equipment and construction machinery on the job site until the project is completed. What could this individual use to insure it?

Having all employees complete continuing education courses once every 2 years.

Which of the following endorsements is used by individual business owners who use company vehicles for personal use rather than purchasing a personal vehicle?

Individual named insured

Which of the following is NOT one of the 3 requirements for property to be eligible for FAIR plan coverage?

It must be valued at an amount under the maximum value amount set by the state

All of the following are examples of risk retention EXCEPT

Premiums.

Which of the following endorsements is used to insure Coverage C (personal property) for values beyond the limitations of the homeowners policy?

Scheduled personal property endorsement

Which of the following is NOT considered a residual market?

State Property and Casualty Guaranty Association

Which of the following acts created a federal program that would share the risk of loss from potential terrorist attacks with the insurance industry?

TRIA

Burglary is defined as

Taking of property from within the premises leaving visible signs of forced entry.

When Commercial Crime Coverage Form M - Safe Depository Liability is written, what must be attached to the policy?

The Safe Depository General Provisions

Which situation would NOT be covered by the basic Causes of Loss form under a commercial property policy?

The Surf Side Club Waterfront Restaurant is damaged when flood waters rise and seep into the restaurant.

When a regular bill of lading is issued, who will be responsible for the invoice cost of any damaged property?

The carrier

Which clause provides coverage for the cargo while being transported to or from a vessel in another craft, raft, or lighter?

The craft clause

Which of the following would the livestock coverage form NOT insure against?

The euthanasia of livestock after being hit by a vehicle

All of the following situations would be covered under a professional liability policy EXCEPT

The failure of an attorney to properly defend a client due to his personal dislike of the client.

A trucking business swaps trailers with other carriers. What coverage is necessary to cover loss to the other's trailer while in the borrower's possession?

Trailer interchange coverage

All of the following are supplemental payments included in the liability section of a personal auto policy EXCEPT

Up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident.

The cost of restoring farm records is an additional coverage offered under a farm policy. How much will the policy pay to restore the records?

Up to $2,000

An insurance company receives an application with some information missing and issues the policy anyway. What is this called?

Waiver

The insured with a claims-made commercial general liability (CGL) policy may request in writing claim and occurrence information from the insurer at any time up to 60 days after the policy period ends. The insurer must provide the information

Within 45 days.

ABC Insurance Company wishes to begin transacting business in Pennsylvania. Before it can do so, it must do which of the following?

Obtain a certificate of authority

Which of the following examples of losses paid under an HO-3 also would be paid under an HO-2 homeowners policy?

Damage to the dwelling caused by lava or dust from a volcanic eruption

An employee drives a company auto, but does not own a vehicle herself. What endorsement could be added to the insurance policy covering the company auto that would provide coverage to the employee when she drives someone else's car for her personal use?

Drive other car coverage

Which of the following statements regarding coverage for the flood and earthquake perils is true?

Both flood and earthquake are excluded perils in all property policies.

The Business Pursuits endorsement under Section II of a homeowners policy will cover all of the following EXCEPT

Business liability.

If a telemarketer wants to make an unsolicited sales call to a potential customer, what is the earliest time the telemarketer can call the prospect's residence?

8 am

The Employee Theft crime policy form includes a coverage extension that applies to employees temporarily outside the coverage territory for up to

90 days.

Which of the following losses would NOT be covered by a homeowners policy?

A coin collection valued at $500 lost in a fire

Under the examinations of books and records condition, the insurance company has the right to examine and audit the insured's books and records related to the policy

During the policy period and for up to 3 years after the termination of the policy

All of the following violations may result in an agent's imprisonment EXCEPT

Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction.

All of the following are exclusions that apply in all three types of Dwelling Policies EXCEPT

Fire or lightning

In a dwelling policy, which of the following is true regarding personal liability coverage?

It must be added as a supplement or written as a separate policy.

Which of the following coverages is included in an unendorsed homeowners policy?

Medical payment to others

The livestock coverage form covers which of the following losses?

Named peril coverage for death of livestock

Which of the following entities established the Do-Not-Call Registry?

The Federal Trade Commission

An insurance agency could purchase an errors and omission insurance policy which would provide protection in the event of any of the following events EXCEPT

The agency loses commission income from policies that were not issued by the insurer.

Which inland marine form would provide the best protection for a dry cleaning company against loss or damage to their customer's property while in the care, custody, and control of the dry cleaners?

Bailee's customer policy

All of the following people would be considered insureds under the liability section of a homeowners policy EXCEPT

The 22-year-old niece of the insured who is visiting.

What type of information would be found in a policy's insuring agreement?

Renewal dates

Under the Fair Credit Reporting Act, if a consumer challenges the accuracy of the information contained in a consumer or investigative report, the reporting agency must

Respond to the consumer's complaint.

Which of the following terms refers to a person's total inability to work for a temporary amount of time?

Temporary total disability

Coverage under the builders risk form will end in all of the following situations EXCEPT

60 days after the construction has ended.

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

An unfair trade practice.

ABC trucking company recently purchased XYZ manufacturing company. ABC wants to transport the new company's freight with their trucking division. The company also wants to continue to haul freight for the clients it has served for many years. In regard to coverage, which of the following is true?

Motor carrier coverage is needed.