Maryland Insurance Exam Help

An insured has a personal umbrella with a $2,000 self-insured retention(SIR). Assuming no other policy involved , how much would the umbrella pay after a $12000 personal injury liability claim?

$10,000

An insured is $5000 of medical coverage under a personal auto policy at the time of a covered accident. The insured and 3 passengers are injured. The insured's medical expensives are $8000. The first passenger total $4000, the second passenger's total $6500; and the third passenger $1200. How much will the policy pay under the medical payments coverage.

$15,200

An insured was judged at fault in an automobile accident. He has the 100/300 bodily injury liability coverage. Three other individuals were injured in the vehicle hit by the insured. They were awarded damages of $150,000, $75,000 and $75,000. What amount, if any was not covered by this insurance policy.

$50,000

Business auto coverages apply only to those autos that are identified as covered autos in the declarations by entry of the appropriate numerical symbol. Which symbol affords the broadest coverage?

1

Licenses must inform the commissioner of the name or address changes within how many days of the change?

30 days

In Maryland, insurers may not increase premium because an insured has reached age

65

Compulsory Automobile financial responsibility laws may be satisfied in all of the following ways except.

A certificate of passing a safe-driver's education course

Home owners policies permit all of the following incidental occupancies Except

A retail sales operation run by the insured from his garage. * retail sales are not allowed

When symbol 7 is provided, Which of the following statements is true with regards to newly acquired autos?

A: They are covered if they are used to replace previously owned autos with that coverage.

A house insured with a homeowners policy has been blown off its foundation by a tornado. It must be demonstrated 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.

In order to obtain a nonresident license in this state a producer must

Apply and pay the required fee

John had a disagreement with his insurer on the value of his damaged property. After making a written demand, both john and the insurer each selected an appraiser. The appraisers then agreed on a fait value without having to select an umpire. What condition did john use?

Appraisal

The transfer of a legal right or interest in an insurance policy is called

Assignment

What policy would a business owner whose business fills scuba tanks most likely need to insure unfired pressure vessels and compressions?

Breakdown

Which commercial property form is used to insure buildings while under construction?

Builders risks

Which of the following exclusions would specifically fall under Coverage E?

Contractual liability

The supplementary payments section of the commercial general liability policy would cover

Court costs assessed against the insured in a suit.

Which of the following would Not be generally included in the supplementary payments portion of a liability portion?

Damage to property owned by the insured.

An insured intentionally drives his automobile into a tree. As a result, he suffers a concussion and lacerations on his left arm. In all like hood, the insurer would

Exclude coverage for this loss

If an agent follows the rules and terms of his agent contract, he is exercising

Express Authority

An important fact about the financial status of an insurer was deliberately withheld. Which of the following terms best describes this action?

False Financial statement

The federal act that provided more favorable benefits for interstate railroad workers by allowing the injured worker to sue the employer for negligence is the

Federal Employers Liability Act (FELA)

The requirement that produces must account for all insurance funds collected and refrain from commingling is referred as

Fiduciary responsibility

Insurance rates developed by the underwriter based on his skill and experience instead of actual analysis are known as

Judgement rates

Fair rental value coverage in the dwelling policy is similar to which homeowners policy form?

Loss of use

An insurance company that is owned by the policyholders is called is

Mutual insurer

What type of coverage is personal injury protection(PIP)?

No Fault

What kind of coverage does form DP-3 provide?

Open peril

Which provision defines how the policy will respond if there is other valid insurance written in the same risk?

Other Insurance

The commercial general liability coverage part A- Bodily injury and property damage provides coverage for which of the following?

Premises

If certain insurance coverages cannot be produced from authorized insurers, what can be produced from unauthorized insurers?

Surplus lines

Which would Not be covered by an insured's uninsured motorist coverage?

The insured causes a head on collision with the car of an uninsured motorist

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

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

Insurance rates are regulated to the extent of all of the following Except?

They are in relations to the cost of living

What is the purpose of separate notice on the collision coverage or private autos?

To inform the insured that waivers or additional coverage is not required on a rented auto.

What amount of coverage is provided on HO policies for watercraft?

Up to $1,500

For there to be negligent liability , all of the following must exist Except

a reasonal expectation that the act may cause injury or damage.

In a DP-1 if the insured elects to apply Coverage B to detached garage, Coverage A will

be reduced by 10%.

How is professional liability policy written?

claims-made

Which of the following types of property would be covered under coverage C -personal property in a dwelling policy?

rowboats

An insured rents out a bedroom in his residence for $50 per week. The residence is badly damaged by the fire. During the three weeks required to repair the fire damage the insured pays $900 in rent for a short-term apartment, and the renter is forced to find other accommodations. Disregarding any extra expense for meals, how much would an HO-3 will pay under Coverage D?

$1,050

Under Business personal property limit- Seasonal increase, if no percentage is specified in the declarations, seasonal fluctuations, will automatically increase the limit for business personal property by

25%

How soon does the period of restoration for business income coverage begin after the direct loss?

72 HOURS

Which of the following be eligible for homeowners Coverage F- Medical payments in the event of injury at the insured's premises.

A full time maid

What is it called when a producer places coverage in force before the insurer has an opportunity to issue the policy ?

Binding coverage

Other than perils, the difference in the three Dp-forms is in coverage provided. Which of the following coverage options is covered by the Dp-2 and DP-3 but not DP-1?

Coverage E - Additional Living Expense

In insurance , the agents have the authorization to represent the company and may exercise this relationship through

Express authority, implied authority and apparent authority

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

Fire caused by curing tobacco

Which of the following injuries may be covered under the Coverage C - Medical payments of a commercial general liability policy?

Injuries to a member of the general public that occurs on premise

A structure may be eligible for coverage under the National Flood Insurance Program if it meets all of the following requirements Except?

Is entirely over water

Which of the following is NOT true regarding the automatic increase in insurance endorsement in dwelling policies?

It does not require additional premium

Which of the following would be covered under a building and personal property form?

Outdoor sign

In reference to insurable, interests, all of the following is NOT an element of insurable risk?

Personal

he defendant being released on a surety bail bond is the

Principal

A policy contains a consent to settle a loss provisions, Which requires the insurer to obtain the consent of an insured before the settlement of a claim. With this in mind what kind of liability policy does the insured most likely have?

Professional liability

A corporation is insured under a commercial general (CGL) POLICY and is named in a lawsuit to recover expenses for bodily injury and property damages from a claim. The insurance company is obligated to provide coverage for all of the following named in the suit Except

Spouses of officers and stock holders

All of the following are considerations in determining which state laws applies when a worker is required to travel into another state and is injured while working in the working in the other state except

The insurer's chartered location domicile

What was the purpose of the Motor Carrier of 1980?

To establish financial responsibility requirements for interstate motor carriers.

The maximum limits available for residential properties are

dwelling for 455,000 and contents for 228,000