Mandi's Personal Lines Study

An insurer misses the deadline to respond to an Examination Request from the Division of Insurance. If this is the company's first violation, it can face a penalty of

$500.

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.

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

All of the following are classes of inland marine risks EXCEPT

Common carrier cargo liability

The difference in the contents coverage on an HO-3 and HO-5 is which of the following?

Contents are covered open peril on HO-5, and named peril on HO-3.

The endorsement that provides coverage for losses arising from sudden collapse of earth arising from underground limestone created by the action of water on rock formations is a/an

Sinkhole collapse endorsement

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

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

The amount of coverage on the dwelling

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.

All of the following are authorized agencies under the Arson Information Reporting Act EXCEPT

The insurer.

Which of the following best describes the amount of loss assessment coverage included under a homeowners policy liability coverage section?

Up to $1,000 per occurrence.

If an insured is in the process of moving to a new location, his personal property coverage under the dwelling policy will apply on a pro rata basis at both locations for

30 days

Which of the following dwelling policy forms primarily insures a structure on an actual cash value basis?

DP-1

How often will the Commissioner examine domestic insurers in this state?

Every 5 years

Which of the following claims would be included under the dwelling policy?

Fire damage to the insured's rowboat stored in the attached garage

Which of the following is NOT covered by the condominium unit owners endorsement?

Furniture in the building

Which of the following would NOT be covered by HO liability insurance?

Intentional tort

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

It must be added by endorsement to a homeowners policy.

While cutting grass in your yard with your brother's borrowed lawnmower, the fuel line ruptures and the lawnmower is destroyed in the fire. How will your HO liability react?

It will cover the damage.

Insurers must complete claims investigations

Promptly.

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.

What is the maximum a producer may be fined for violating a cease and desist order?

$500.

To purchase insurance, the policyowner must have financial interest in the property being insured. This is known as

Insurable interest.

What do individuals use to transfer their risk of loss to a larger group?

Insurance

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

The regulation of the insurance industry primarily rests with

The state