Insurance Exam
insured has a homeowner policy with $300,000 in liability coverage and $1,000,000 umbrella policy if the insured has $100,000 ___ payable, how much would the umbrella pay?
70,000
Commercial general liability policy provides contractual coverage assumed by the insured if the
Agreement is in writing
___ a public adjuster who is the only other legal party who may represent and insured in a claim?
Attourny at Law
Personal Articles Floater covers which of the following items?
Boats
difference between the occurrence, and claims made form is that?
Claims made forms are triggered by claims, not occurnces
Someone who intimidates the perspective of the insured is guilty of?
Coercion
___of insurance provides protection against legal liability from commercial risk arising from the ownership or maintenance of premises and operations?
Commercial General Liability
What must be established to have occurred before a payment of claim can be made buying insurer?
Covered loss
What is an example of an indirect property exposure?
Damage to a rental structure caused by a tenant
____ derogatory article about the financial condition of an insurer which is calculated to injure the insurer is an example of
Defmation
insuring against the listed perils in the DP-2 policy all the following are covered except?
Fire department service charge
___ policy provides coverage for a four unit apartment building occupied by tenant
HO-4
___ coverage form would a condominium unit owner purchase?
HO-6
standard fire policy may restrict or suspend coverage with any of the following occur EXCEPT
Hazards within the insured's control increases
Which of the following characteristics is not true of a staff adjuster?
Once the claim is made, they initiate the claims-handling process
Which of the following is not covered in a general commercial liability policy?
Products and complete operations
A person who solicits business as an adjuster of the first party insurance claims for losses or damages arising under insurance contracts insure the real or personal property, on the be half of the insured
Public Adjuster
___ automobile policy other than collision (comprehensive) coverage covers damage to the insured automobile occurring when the insured
backed into a pole
___regarding insurance policies will be found in all of the following EXCEPT
benefits being accurately compare with competitors
Louisiana insurance cold prohibits, all of the following practices EXCEPT
binding coverage
the following is an example of a loss covered by collision coverage under a business auto policy?
breakage of glass
___business insurance coverage endorsement covers which of the following?
buisness property
adjuster is a person who adjust
claims on behalf of the insurer
___mobile claim, the good-faith assignment of precentage of fault for each involved driver is called
comperitive neglagence
Which of the following is a common policy declaration of a commercial package policy?
conditions specifying the insureds duties following a loss
commissioner of insurance may suspend any insurance producer license for all of the following reasons EXCEPT
conducting insurance in adjoining states
Adjusting process consist of which of the following?
confirming the amount of loss
___the elements of a contract, such as the offer made by the first party and acceptance of the contract by the second party____
consideration exchanged by both parties
which of the following is NOT an element of a valid contract?
countersignture
A producer may be guilty of misrepresentation if the producer
fail to disclose exclusions of the policy
to have insureable interest and individual must
have a chance of suffering financial loss
____when I lost settlement is made under a appraisal agreement____
insurer pays the expenses of the appraiser, and the insured pays the expenses of the umpire
Personal liability, supplement endorsement for a dwelling policy provides coverages for
intended injury
section 2 of a homeowners policy, which of the following is an exclusion?
liability for an injuy that is expected
before receiving an insurance license, the applicant must
license application fee to the department of insurance
all of the following are true concerning Louisiana licensee residency requirements EXCEPT
license can be maintained when licensee ceases to be a resident of Louisiana
Insurance company estimates the total amount is it to pay on a claim, based on what it's known about the claim, it is establishing
loss reserve
an adjuster or claimant may reject an offer to settle a claim made by the other party. Which of the following is a valid rejection of an offer?
makin a counter offer
___methods of competition in the business of insurance would include all of the following EXCEPT
making direct comparisons between your insurance and those of competitors
property coverage MUST include all the following EXCEPT
mandatoy endorsments
Which of the following is an optional coverage in a businessowners policy?
mechanical breakdown
producer/adjusters license may be suspended for
misappropriation of premiums
All of the following are unfair, claims settlement practices EXCEPT
misrepresentation of policy provisions to a claimant
Which scenario would damage caused to another vehicle NOT be covered under the liability section of a personal automobile policy?
named insured while driving their employer's business delivery van
Which of the following is TRUE about uninsured motorist coverage?
national uninsured motorist coverage cannot exceed the liability limits on the same policy
property's basic cause of loss form does NOT cover water damage resulting from
not roof, sewage, or leakage
In an event of lost, the Standard Fire Policy requires the insured to
notify the company immediately
__for a new homeowners policy must include all of the following except
paid recipet for the full amount of the premium
contract will be deemed invalid, if
party was not competent
all of the following are unfair, claims settlement practices EXCEPT
pay a claim without conducting reasonable investigation based on all available information
All of the following structures are covered under a dwelling policy EXCEPT a,
permanently located moble home
Which of the following does not constitute an element of acceptance of a settlement
person accepting the offer does so with no more than one contingent stipulation
___ theft coverage endorsement on a dwelling policy includes coverage for all of the following except
personal injury
What is NOT considered livestock?
pets
What is included in the declarations page of a commercial general liability policy?
policy effective date
___driving a company truck that is covered by a commercial auto policy, and individual had a collision with a deer that shattered the ___ how would this loss be covered?
policy will be covered by the policy's collision coverage subject to a deductible
the purpose of insurance deductible
prevent the following a small claims and require the insured to retain part of the loss
Which of the following will be a specific duties of the insurer in a liability policy?
protecting property from further loss
an individual may become licensed as a nonresident producer without passing a written examination by
reciprocal arrangement with the state of domicile
All the following are functions of the department of insurance EXCEPT to
records of individual policies of insurance issued
___NOT subject to a dwelling policy condition?
rental value
___ the following statements is true regarding commercial property's Ordinance or Law endorsement?
required to fix code vialations
a commissioner may suspend a producers license for all of the following reasons, EXCEPT
sharing commissions with other license producers
commercial package policy, the conditions that apply to the entire policy are called the
standard policy conditions
commissioner of insurance finds that a producer is engaging in unfair practices defined in the Louisiana called all of the following are true except the
the commissioner's disicion is final
____ homeowners policy, which of the following statements is true regarding the coverage of the fire department service charge?
the cost is included in Coverage A dwelling coverage
____ covered under a commercial general liability (CGL) policy while installing a new sink in the customers home, he drops the ____ of the following is NOT covered?
the damage to the new sink
All of the following are requirements placed upon the insured under provisions of a Standard Fire Policy EXCEPT
the premium
who is responsible for reporting the producers change of address to the commissioner of the department of insurance?
the producer
a Waiver Agreement is requested by the insurer when
there is a dispute as to the amount of loss and damage
___ describes the independent adjuster's relationship with the insurer?
they're restricted to adjusting claims for the insurer in which a general contractor is involved
all of the following are examples of unfair, claims settlement practices EXCEPT:
to promptly provide a reason for a claim denial
representing pertinent policy provision relating to coverage after a loss is
unfair claims settlement practice
someone purchases insurance as a result of threats made by the producer, there has been a violation of
unfair trade practices laws
When in the settling of a claim should the adjuster request a Nonwaiver Agreement?
when the adjuster realizes that a situation exists that may limit or restrict coverage
Chris is a licensed resident producer, but not a licensed adjuster, when is Chris allowed to adjust a loss?
When the loss is under a policy issued by Chris or his agency for an insurer that he represents
____ can the commissioner of insurance inspect the business records of a company or agency for any valid reason?
Yes, because of the powers defined by state laws
national automobile policy endorsement is used when the insured adds a motor home to an automobile policy?
___ Type Vehicle
Which policy condition allows the insurer to audit an insured financial records for up to 3 years after the expiration of the policy?
___ accounting
___ or property that would be replaced under functional replacement cost would be
___ antique wardrobe
____equipment breakdown protection coverage an accident would include
___ breakdown
____mobile medical payments, the insurer pay reasonable expenses for
___ for up to 10 years
an insured under a standard commercial automobile policy?
___ insured for any covered vehicle
____ following vehicles would need endorsement MCS-90 automobile insurance policy to satisfy the requirements of the McCarrier Act of 1980?
___ pick up truck used by contractor to occasionally remove hazardous waste from job site
Insurance license will be revoked until?
____ has decided upon such action
____ example of unfair claims settlement procedure?
____ insureds to pay clean investigation costs
Which of the following covers damage to a mobile home while in transit?
____ of the "other structures" endorsement
All of the following would be covered under Coverage A of a dwelling policy, except
___building on a described premises that is rented as a private garage
Under homeowners policy Coverage E - personal liability applies to which of the following situation?
___expenses, if his suit is groundless, false, or fraudulent
Commercial Package Policy (CPP) an electrical powered substation outage results in loss of income insured MUST have the following to be covered for the loss?
___with utility service - time element endorsment
___ farmowner, or ranch policy which peril would be classified as a basic cause of loss as it relates to property coverage?
accidental shooting of livestock
coverages provided by the commercial building and personal property form includes the buildings, the insured's businesses property, and the personal property of others located
anywhere in the insured's care
under a homeowners policy, which of the following is NOT covered by personal injury coverage
arrest
___ automobile insurance in Louisiana, the required minimum bodily injury or death to two or more people in any one accident is
30,000
___ percentage of the homeowners policy Coverage A limit is typically written for structures insured under Coverage B?
10%
____ the MAXIMUM limit of flood insurance for personal property under the national flood insurance program, regular program?
100,000
After a license has been revoked the minimum waiting period for reapplication is?
2 or 3 years
___ education requirements for insurance licensing must be met:
2 years
Payments for commercial automobile will pay you up to how much per day for and insurance actual lost of earnings?
250
insurer of a CGL policy should get how many days minimum notice to not renew the policy?
30 days