Insurance Exam - NEW

Boiler and Machinery coverage is written with a single limit of insurance per accident. However; what is the sub limit for hazardous substance cleanup or repair or replacement of contaminated property?

$25,000

The businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period?

1 year

Under businessowners policy Section I; if an insurer wants to nonrenew a policy for nonpayment of premium; how many days before the expiration date must the insurer notify the mortgageholder?

10 days

To satisfy Florida Financial Responsibility Law requirements an automobile liability policy must be written with limits no less than

10/20/10

For how many days of skilled nursing facility care will Medicare pay benefits?

100

Under special circumstances continuing education requirements may be extended beyond the 2-year period for a maximum period of

12 months

Under special circumstances; continuing education requirements may be extended beyond the 2-year period for a maximum period of

12 months

Under special circumstances continuing education requirements may be extended beyond the 2-year period for a maximum period of

12 months.

Johanna purchased a National Flood Insurance policy 10 days after her community entered an emergency program. When would her coverage be effective?

12:01 am the day after the application and premium payment are mailed

Under the additional living expenses coverage if a civil authority prohibits the insured from using the dwelling because of direct damage to a neighboring location from a peril covered in the insured's policy loss would be covered for up to

2 weeks

Following hospitalization because of an accident Bill was confined in a skilled nursing facility. Medicare will pay full benefits in this facility for how many days?

20

Within how many days must a property insurer pay on a claim after the settlement is reached?

20 days

Coverage for medical payments under a personal auto policy applies to expenses following a covered accident that are incurred and services rendered within what maximum time period?

3 years

An insured's driver's license was revoked 90 days after his auto insurance policy was issued. If the insurer chooses to cancel the auto insurance policy; it must give the insured a minimum of how many days' notice?

45 days

An insured's driver's license was revoked 90 days after his auto insurance policy was issued. If the insurer choses to cancel the auto insurance policy; it must give the insured a minimum of how many days' notice?

45 days

An insured owns and operates a rand. The insurance has several vehicles that are used in the ranching operation and for personal use. Which of the following could NOT be insured under ta personal auto policy?

A Two-ton grain truck with a 6,500 capacity

Professional photographers and musicians may insure their equipment with

A commercial articles floater.

Which of the following is covered under the Camera and Musical Instruments Dealers floater?

A customer's camera left at a camera shop for repair

Most fidelity bonds have a period of time in which losses which occurred while the bond was in force are covered even though not found until after the coverage has terminated. This is known as

A discovery period

When an insurance purchased a health insurance policy; he asked his agent to explain the difference between a policy that is guaranteed renewable and a policy that is non-cancellable. Which of the following would be a correct response to this question?

A guaranteed renewable policy's premium rate may be changed by the insurer for an entire class of policyholders; and under the non-cancellable policy the rates cannot be changed

In which of the following situations would the jewelers block extension cover a loss?

A jeweler fixes a necklace and sends it by registered mail to the owner. When the necklace arrives, it has been damaged.

Coverage F (medical payments) under a homeowners policy would cover

A residence employee who is injured on the job.

A group blanket health policy is best suited for which of the following?

A summer camp

With respect to the personal auto policy which of the following vehicles could be classified as a nonowned auto?

A vehicle that is titled to another person, but is being used with permission by an insured

What type of liability would a person who owns wild animals have?

Absolute

The insured's health policy only pays for medical costs related to accidents. Which of the following types of policies does the insured have?

Accident-only

Which of the following is NOT covered under a long-term care policy?

Acute care in hospital

Which part of an insurance policy covers claims-related expenses; reasonable expenses incurred by an insured to protect damaged property from further loss or defense expenses?

Additional coverage

Which part of an insurance policy covers claims-related expenses; reasonable expenses incurred by an insured to protect damaged property from further loss; or defense expenses?

Additional coverage

Which of the following coverages is NOT included in the basic form dwelling policy?

Additional living expense

Which of the following is true regarding branch agency licensing?

Agent in charge must be licensed.

In which of the following types of property valuation will the policy pay the full value as specified on the policy schedule

Agreed value

In which of the following types of property valuation will the policy pay the full value as specified on the policy schedule regardless of the insured property's appreciation or depreciation?

Agreed value

In which of the following types of property valuation will the policy pay the full value as specified on the policy schedule; regardless of the insured property's appreciation or depreciation?

Agreed value

Which of the following is exclusively self-appointed?

An independent adjuster

Which of the following is NOT covered under accounts receivable coverage form?

Any loans required to offset uncollectible amounts

If an insured has an umbrella liability policy in addition to his personal auto policy; which would be considered the underlying policy?

Auto Policy

Which of the following would NOT be covered under the liability section of a personal auto policy?

Bodily injury caused by the insured's negligence while driving a three-wheel all-terrain vehicle

Which of the following other coverages is NOT included in the basic form dwelling policy?

Breakage of glass

Homeowners policies provide coverage for

Business property while on the residence premises.

How are state Insurance Guaranty Associations funded?

By their members - authorized insures

Which of the following must an insurer obtain in order to transact insurance within a given state?

Certificate of authority

An insured was involved in an automobile accident for which the insured was at fault. Which of the following coverages would pay for damage to the insured's automobile?

Collision

An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. The neighbor who was sitting on the porch is injured. The insured's liability policy has a limit of $500000. This amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does the insured have?

Combined single

Which employee fidelity bond pays no more than its limit of liability for each separate occurrence no matter that several separately identifiable employees were involved in a single loss?

Commercial blanket position

What are the two major sections of commercial crime policies?

Commercial entities and government entities

A professional who wants coverage for all liability exposures should purchase what form of liability insurance?

Commercial general and professional

Who will transport the property of anyone who hires them?

Common carriers

What is the legal defense that can be used in most states in which proportionate damages may be awarded when both the plaintiff and defendant were negligent?

Comparative negligence

Which of the following is a statutory defense?

Comparative negligence

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

Completed value form

All of the following are characteristics of limited sinkhole coverage EXCEPT

Coverage is mandatory under catastrophic ground cover collapse

What type of insurance can be obtained through a surplus lines insurer?

Coverage that is unavailable through authorized insurers

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

Covered Auto

A health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is known as

Critical illness.

Which of the following would NOT be classified as a result of catastrophic ground cover collapse?

Damage to property contents

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 ash or dust from a volcanic eruption

Which of the following is a mandatory part of an insurance policy that varies with each individual policy?

Declarations

In property and casualty insurance; what is the term for the amount of a loss that the insured must cover out of pocket; and the insurer will only pay for the additional amount of the loss above this limit?

Deductible

In Florida the Financial Responsibility Law is administered by

Department of Highway Safety and Motor Vehicles.

What term includes damage where the insured peril was the proximate cause of loss?

Direct loss

Which of the following special liability coverages will provide protection to managers of a corporation for claims arising from a wrongful act committed by the manager while in an official capacity?

Directors and officers liability

Which commercial crime form would provide coverage for a loss that did not necessarily happen during the policy period but was revealed during the policy period?

Discovery form

Who can provide skilled nursing care?

Doctor

Because of the history of cancer in her family Julie purchased a policy that specifically covers the expense of treating cancer. Her policy would be classified as what type of policy?

Dread Disease Policy

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.

In addition to the common policy conditions; all of the following conditions apply to liability coverage EXCEPT

Employers liability

Failure of a licensee to maintain an appointment with an insurance company within 48 months after the date the license became effective will result in

Expiration of the license

Expenses that an organization would not have incurred if business interruption had not existed are known as

Extra expenses.

Which of the following would be an example of an unfair claims settlement practice?

Failing to acknowledge a claim within 30 days

Which federal act provides benefits to injured civilians who are employed by the federal government?

Federal Employees Compensation Act

No insurance policy form can be issues; delivered; or used in the state unless it has been

Filed with and Approved by the Office of Insurance Regulation

The major portion of the premium for an equipment breakdown policy pays

For inspections and examinations.

Replacement cost is defined as

Full replacement of property at its current cost new and without reduction for depreciation.

Which of the following will be covered by aviation hull insurance?

Fuselage and wings

Which of the following is another name for a primary care physician in an HMO?

Gatekeeper

What type of compensatory damages will pay for pain and suffering and disfigurement?

General

The agent in charge of an agency must hold which of the following licenses?

General lines

Which of the following statements is CORRECT concerning the relationship between Medicare and HMOs?

HMOs may pay for services not covered by Medicare

Which of the following limitations would NOT apply to a hospital and surgical expense policy?

Illness basis

The time limit on certain defenses provision in health policies deals with which of the following?

Incontestability of statements on the application

Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital?

Indemnity

The pro rata liability clause is designed to protect the principle of

Indemnity.

What is the benefit of experience rating?

It allows employers with low claims experience to get lower premiums

Which of the following NOT an indication a company is an unauthorized insurance entity?

It has many underwriting guidelines.

Which of the following is true regarding the fire department service charge under the Builders Risk form?

It is an additional coverage.

All of the following statements describe the concept of strict liability EXCEPT

It is imposed on defendants engages in hazardous activities

Which of the following is NOT true regarding a Certificate of Authority?

It is issued to a group of insurance participants

Which of the following statements concerning the builders risk coverage form is correct?

It may be written on a reporting form for the completed value of the structure.

All of the following are true of Coverage B - Other Structures in homeowners policies EXCEPT

It must be added by endorsement to a homeowners policy.

Which of the following would be considered and insured under a business coverage form

It prevents stacking of limits

One advantage of claims-made liability forms from the insurer's point of view is that

It prevents stacking of limits.

Which of the following statements is NOT true regarding a personal umbrella liability policy?

It provides errors and omissions coverage for an agency.

How does the mobilehome endorsement affect the other coverage of law or ordinance in a homeowners policy?

It removes the coverage.

Every insurer marketing Long-Term Care insurance must establish marketing procedures to ensure all of the following EXCEPT

LTC policies are marketed effectively to prospective insureds.

Which of the following would NOT be considered causes for flood conditions covered by the National Flood Insurance Program?

Landslides

For a contract to be enforceable by law the purpose of the contract must be

Legal and not against public policy.

A policy condition that states if a policy is broadened with no additional premium; then the expanded coverage will be automatically applied to all policies of the same type is known as

Liberalization clause.

An insured has a history of heart disease in his family; so he would like to buy a health insurance policy that strictly covers heart disease. What type of policy is this?

Limited Coverage

Employee fidelity may be written in all the following ways EXCEPT

Location schedule.

Which of the following will be covered by the contractors equipment floater in an unfiled inland marine insurance

Mobile equipment during transportation to and from the job site

Which of the following covers a carrier for liability for loss to cargo while it is being transported in a truck?

Motor truck cargo policy - carriers form

A participating insurance policy may do which of the following?

Pay dividends to the policyowner

An insured pays her major medical insurance annually on March 1 each year. Last March she forgot to mail her premium to the company. On March 19; she had an accident and broke her leg. Her insurance company would

Pay the claim

A building insured with commercial property insurance has been vacant for more than 60 consecutive days. Which of the following is NOT true?

Payment for unnamed perils is reduced by 25%.

A bond is written for a set limit and the surety will be liable only for this amount of the limit. This limit is known as the

Penalty

The cause of loss insured against in an insurance policy are known as

Perils

The causes of loss insured against in an insurance policy are known as

Perils

What type of coverage is Coverage E in homeowners policies?

Personal liability

Which of the following statements is INCORRECT with regards to surplus lines insurance

Policies written by a surplus lines insurer typically contain standard coverages and forms

Which of the following statements is INCORRECT with regard to surplus lines insurance?

Policies written by a surplus lines insurer typically contain standard coverages and forms.

Who might receive dividends from a mutual insurer?

Policyholders

When an insurer terminates an agent's appointment; the insurer must do all of the following EXCEPT

Provide a 30-day advance notice to the Commissioner

Which of the following is NOT provided by an HMO?

Reimbursement

In property insurance actual cash value is defined as which of the following?

Replacement cost at the time of the loss; less depreciation

A date stipulated on the declarations page of a claims-made liability form as the furst date on which an incident may occur and be covered by the policy is called:

Retroactive Date

Which policy condition in HO policies states that insurance applies separately to each insured?

Severability of insurance

Which of the following would NOT be considered a flood?

Sewer backup

A Certificate of Insurance is a written document that

Shows the types and amounts of insurance issued to the insured

An insured owns several buildings; each at a different location and insured on a separate policy. What type of coverage does the insured have?

Specific

A property insurance policy that is not subject to any coinsurance requirements but has a set amount of insurance scheduled for the property would use what loss valuation method?

Stated Amount

Which of the following insurers are owned by stockholders?

Stock

In the event of a claim under a commercial general liability policy; the insured has all of the following duties to the insurer EXCEPT

Submitting to a medical exam when requested.

Which of the following terms describes a reduced or limited amount of coverages; other than the combined single limit; that is available to pay claims resulting from passenger bodily injury?

Submlimit

Employers unable to purchase workers compensation coverage in the voluntary market due to the high-rish nature of their work may be eligible for coverage under the Florida's Workers Compensation Joint Underwriting Association if assigned to

Subplan B

Employers unable to purchase workers compensation coverage in the voluntary market due to the high-risk nature of their work may be eligible for coverage under the Florida's Workers Compensation Joint Underwriting Association if assigned to

Subplan B.

Which item would NOT be covered under building coverage in a building and personal property policy?

The Bulldozer being used as part of a business addition under construction that is parked 500 feet from the building

Who examines the books and records of insurance companies in Florida?

The Chief Financial Officer

Which of the following entities is responsible for agent licensing and administrative supervision?

The Office of Insurance Regulation

The amount an insurer will pay under Coverage D (Loss of Use) depends on

The amount of coverage on the dwelling

All of the following statements concerning coinsurance are true EXCEPT

The coinsurance formula will also be applied to total losses.

What type of information is NOT included in a certificate of insurance?

The cost the company is paying for monthly premiums

If a group policy who are the parties to the contract?

The employer and the insurance company

If a person accumulates more continuing education hours than is necessary to fulfill the requirements for a 2-year period; which of the following will occur?

The extra hours may be continued into the next period.

In a group policy; who is issued a certificate of insurance?

The individuals covered under the insurance contract

Which of the following is an agreement between an insured and an insurer where the insurer agrees to indemnify the insured for specific losses in exchange for a premium?

The insurance contract

A disability income policy with the Any Occupation provision will pay benefits in which of the following situations?

The insured is unable to perform any job for which he is suited by reason of education or experience.

Under a businessowners policy; the inspections and surveys condition specifies all of the following EXCEPT

The insurer does not have the right to inspect the insured's property and operations.

A mortgage company is named as a loss payee on the insured's homeowners policy; under the standard mortgage clause. If the insured suffers a loss due to a fire; which of the following is true?

The loss is payable to the insured and the mortgagee.

The cancellation provision in a businessowners policy specifies all of the following EXCEPT

The method of transferring the owner's rights.

Who is NOT an insured for liability on a BAP?

The owner of a car the insured borrows

When a direct chain of events resulting from a negligent act causes injury or damage; that act is considered to be

The proximate cause.

On a DP-3 Dwelling Property Special Form policy; the coverage provided for personal property is

The same as provided on the DP-2 Broad Form

All of the following are other coverages included in both the broad and special form dwelling policy EXCEPT

Theft of personal property

In Florida no-fault laws exempt an at-fault motorist who causes injury to another from suits for recovery for noneconomic losses such as pain and suffering unless

There is permanent injury.

In Florida no-fault laws exempt an at-fault motorist who causes injury to another from suits for recovery for noneconomic losses; such as pain and suffering; unless

There is permanent injury.

Which common policy condition prohibits the insured from changing the rights or duties under the policy to any other person or organization without the written consent of the insurance company?

Transfer of rights and duties under the policy

The type of insurance used to cover goods for one specific trip is called:

Trip transit

Which of the following is a statement that is guaranteed to be true and if untrue may breach an insurance contract?

Warranty

Under the business auto coverage form; mobile equipment is covered for liability insurance

When being carried or towed by a covered auto.

Coverage under a Floor Plan Merchandise form is written on a reporting form basis that requires the insured to file reports with the insurer. What is the time frame for those reports?

Within 30 days after the end of each month

In liability insurance policies; supplementary payments are made

in addition to the limit of liability.

What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine policy?

$10,000 for all expenses incurred during a 12-month period

Under the business owners policy; the coverage for the newly acquired property is limited to

$100,000

Al permanently injured by Jim in an accident, has total damages of $60.000. Al has PIP and Uninsured Motorist coverage of $100.000. Jim has the minimum limit of liability required by Florida. How much would Al collect under U/M

$40.000

A premium discount in the term that describes when an insured owes a total standard premium greater than

$5,000

If an insured covered under a Mobile Homeowners Policy moves the mobile home to protect it from a covered peril the policy will pay up to

$500

All of the following are special personal property limits under a homeowners policy EXCEPT

$500 for business personal property

For cancellation of a commercial property policy during the first 90 days; for a reason other than nonpayment of premium; the insurer must give the insured advance written notice of at least how many days?

20 days

Which of the following must the patient pay under Medicare Part B?

20% of covered charges above the deductible

An insured has Medicare Part D coverage. Upon reaching the initial benefit limit what percentage of the prescription drug cost is the insured responsible for paying?

25%

When an insurer plans to non renew a commercial property insurance policy it must give the policyholder a written notice of its intent to non renew at least how many days in advance?

45 days

When an insurer plans to nonrenew a commercial property insurance policy; it must give the policyholder a written notice of intent to nonrenew at lease how many days in advance?

45 days

An applicant for a life agent's license may obtain a temporary license for a maximum period of

6 months

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

60 days after the construction has ended.

An insurer must give 20 days' written notice to the insured when canceling a property insurance policy for reasons other than nonpayment of premium if the policy is cancelled within how many days after its issue?

90

Which of the following types of valuation works best for property whose value does not fluctuate much?

Agreed value

In which Medicare supplemental policies are the core benefits found?

All plans

The inspections and surveys condition in a businessowners policy

Allows the insurer the right to inspect the insured's premises.

Regarding uniform mandatory provisions concerning claims all of the following are true EXCEPT

An insured must notify the insurer of a claim on forms prescribed by the insurer

Florida's UM law requires that every auto policy that provides primary liability coverage for a specific motor vehicle must include "stacked" UM at the same limits as apply for liability coverage; unless the insured; in writing

Any of the above.

Which of the following would be considered an insured under a business auto coverage form?

Anyone while using with permission, a covered auto owned by the named insured

Which of the following clauses establishes the procedure for determining the amount of a loss when the insurer and the insured cannot agree on the value of the property or amount of loss?

Appraisal Clause

First aid costs for others injured on the insured's premises

Are paid in addition to the liability limit.

A provision found in most claims-made liability policy forms that provide a specified period of time following the policy expiration; during which claims arising out of occurrences during the policy period may be made against the policy at no extra cost; is called

Basic extended reporting period

A provision found in most claims-made liability policy forms that provides a specified period of time following the policy expiration; during which claims arising out of occurrences during the policy period may be made against the policy at no extra cost; is called

Basic extended reporting period

A provision found in most claims-made liability policy forms that provide a specified period of time following the policy expiration during which claims arising out of occurrences during the policy period may be made against the policy at no extra cost is called

Basic extended reporting period.

To become a nonresident adjuster in the state of Florida; an adjuster must meet all of the following requirements EXCEPT

Be employed by an adjusting firm.

An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage. This is an example of

Concealment.

In which of the following sections of a commercial auto policy will you find specific information about the policy period?

Conditions

An insured's business is damaged because of a fire and he is forced to close the business temporarily for repairs. As a result the insured lost income. What type of loss is this?

Consequential

An insured's business is damaged because of a fire; and he is forced to close the business temporarily for repairs. As a result; the insured lost income. What type of loss is this?

Consequential

When an insured purchased his health policy he was a window washer. He has since changed occupations and now manages a library. Upon notifying the insurer of his change of occupation; the insurer will

Consider decreasing the premium.

When an insured makes truthful statements on the application for insurance and pays the required premium; it is known as which of the following?

Consideration

The gatekeeper of an HMO helps

Control specialist costs

Which of the following is the Fair Rental Value coverage in the dwelling policy?

Coverage D

The basic dwelling form (DP-1) provides all of the following coverages without endorsement EXCEPT

Coverage for additional living expense

Which of the following is NOT true about earthquake coverage?

Coverage is commonly provided through a federally-funded program.

Which of the following is NOT a responsibility of the Office of Insurance Regulation?

Enacting new insurance laws

What is the purpose of the coinsurance clause found in property insurance policies?

Encourage the insured to insure the property closer to its full value

Which of the following would modify the original insurance contract by either adding or removing coverage?

Endorsements

The provision which states that both the printed contract and a copy of the application for the contract between the policyowner and the insurer is called the

Entire contract.

Which type of insurance companies marketing long-term care insurance coverage must establish procedures to assure that any comparison of policies by its agents will be fair and accurate?

Every company is required to establish marketing procedures

What type of group rating uses the actual experience of the group as a factor in developing the rates to be charged?

Experience Rating

Older homes with replacement costs greater than ACV or market value are insured on

HO-8.

Events or conditions that increase the chances of an insured loss occurring are referred to as

Hazards

Which of the following types of LTC is NOT provided in an institutional setting?

Home Health care

An additional loss that results from a direct loss of property is called a/an

Indirect loss.

Which of the following entities has the authority to make changes to an insurance policy?

Insurance company's executive officer

Insurance contracts are agreements between which two parties?

Insurer and policyowner

All of the following are conditions commonly found in the insurance policy EXCEPT

Insuring Agreement

All of the following statements about Medicare Part B are correct EXCEPT

Is is a compulsory program

The Office of Insurance Regulation is responsible for all of the following insurer activities EXCEPT

Issue of securities

Under the dwelling policy Coverage C - Personal Property is

Limited to covering a servant's property while at the insured location.

The process of determining the premium charged and how much insurance is required for a particular loss is called

Loss Valuation

Which of the following is TRUE regarding business liability and medical payments coverage?

Loss of electronic data is excluded under a business liability policy.

Which of the following would be covered under the crime coverage inside the premises - theft of money and securities?

Loss or damage to a locked safe vault

In which type of commercial crime policy coverage is triggered by a loss that happens during the policy period but is not necessarily discovered during the policy period?

Loss sustained form

To sign up for a Medicare prescription drug plan individuals must first be enrolled in

Medicare Part A

Medicare Advantage is also known as

Medicare Part C.

What type of property does a personal floaters policy cover?

Movable personal property; wherever it may be located

All of the following coverages are included in the BOP without requesting coverage extensions EXCEPT

Newly acquired of constructed property

Several insureds have become liable because of a single loss. How will the policy's limit of liability be affected?

No more than the per occurrence limit applies, no matter how many insureds are involved

Duties of the insurer found in property policy conditions include all of the following EXCEPT

Notify the insured in the event of financial difficulty.

Losses caused by continuous or repeated exposure to conditions resulting in injury to persons or damage to property that is neither intended nor expected is the definition of which of the following terms?

Occurrence

Losses caused by continuous or repeated exposure to conditions resulting injury to persons or damage to property that is neither intended nor expected is the definition of which of the following terms?

Occurrence

Which of the following statements in INCORRECT concerning Medicare Part B Coverage?

Part B coverage is provided free of charge when an individual turns age 65

Under the personal auto policy; liability for bodily injury resulting from the insured's use of a non owned automobile is

Provided by the insured's policy on an excess basis

Under the personal auto policy; liability for bodily injury resulting from the insured's use of a nonowned automobile is

Provided by the insured's policy on an excess basis.

Under the claims-made CGL the supplemental extended reporting period

Provides an unlimited extension for making claims for losses that occurred during the policy period, but the insured must pay an additional premium.

Under the claims-made CGL the supplemental extended reporting period

Provides an unlimited extension for making claims for losses that occurred during the policy period; but the insured must pay an additional premium.

All of the following are considered parts of the policy structure EXCEPT

Provisions

Which of the following adjuster appointment types is required to file a surety bond with the Department of Insurance?

Public adjuster

A situation in which a person can only lose or have no change represents

Pure risk.

An insurer is preparing to pay disability income benefits to an insured. In order to prevent overinsurance; the insurer monitors the income of the insured before submitting payment. Which rule corresponds to this behavior?

Relation of earnings to insurance

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

Renewal Dates

All of the following may be covered by the miscellaneous type vehicle endorsement EXCEPT

Rented recreational vehicles

Which of the following is used in the formula for calculating the actual cash value of a property?

Replacement Cost

A date stipulated on the declaration page of a claims-made liability form as the first date on which an incident may occur and be covered by the policy is called

Retroactive date.

In a personal umbrella policy the amount paid by the insured for certain losses not covered under the primary coverage is called

Self-insured retention.

In a personal umbrella policy; the amount paid by the insured for certain losses not covered under the primary coverage is called

Self-insured retention.

All of the following long-term care coverages would allow an insured to receive care at home EXCEPT

Skilled care.

What are the two types of compensatory damages?

Special and general

An insured owns several buildings each at a different location and insured on a separate policy. What type of coverage does the insured have?

Specific

Property insurance that provides $100000 coverage for a building and $50000 coverage for personal property at a single location is called or cash register

Specific coverage

Property insurance that provides $100.000 coverage for a building and $50.000 coverage for personal property at a single location is called

Specific coverage.

Property insurance that provides $100;000 coverage for a building and $50;000 coverage for personal property at a single location is called

Specific coverage.

An agent's appointment has been denied. Which of the following is true?

State taxes may be refunded upon a written request.

When the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the even of a covered loss the coverage is said to be written as

Stated amount

Which of the following terms describes a reduced or limited amount of coverages other than the combined single limit that is available to pay claims resulting from passenger bodily injury?

Sublimit

Which of the following terms describes a reduced or limited amount of coverages other than the combined single limit, that is available to pay claims resulting from passenger bodily injury?

Sublimit

How are surety bonds different from insurance?

Surety bonds guarantee specific duties or obligations will be fulfilled; insurance pays for losses.

Which of the following symbols is available to an insured with vehicles subject to no-fault coverage?

Symbol 5

An insured's accounts receivable records have been damaged. The loss may be covered with

The accounts receivable coverage form.

If an agent is in the military; which of the following is true?

The agent cannot sell a policy to another active military person who is of a lower rank.

Which of the following circumstances would be EXCLUDED under medical payments coverage of a personal auto policy?

The insured is injured while driving his motorcycle on His resident premises

The medical payments coverage in a personal auto policy will pay reasonable medical expenses for all of the following EXCEPT

The insured is injured while exiting a friend's mobile home.

Which of the following statements is true concerning a bonded contractor who defaults on a construction performance contract?

The obligee may engage another contractor and then seek reimbursement from the surety.

Supplemental payments on a CGL provide all of the following EXCEPT

Up to $500 a day for lost earnings and $2,000 for the cost of bail bonds

Supplementary payments on a CGL provide all of the following EXCEPT

Up to $500 a day for lost earnings and $2,000 for the cost of bail bonds; Supplementary payments will cover only $250 for these.

A medical expense policy that establishes the amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor of similar training and experience in that geographic area is known as

Usual, customary and reasonable.

Which of the following IS covered under the theatrical property floater of an Inland Marine policy?

Vehicles used on stage

When a parent is required to pay for damages caused by their children this is an example of

Vicarious liability.

Can an insurer cancel a property policy for nonpayment of premium?

Yes with 10 days' written notice and reason of cancellation given to the insured

Can an insurer cancel a property policy for nonpayment of premium?

Yes, with 10 days' written notice and reason of cancellation given to the insured

Can an insurer cancel a property policy for nonpayment of premium

Yes; with 10 days' written notice and reason of cancellation given to the insured