NC Casualty License Exam Prep Questions 2020

An insured hits a deer and crashes his car into a tree. The total damage to the vehicle is $6,000. How will this loss be covered?

$6,000 would be paid under other-than-collision coverage.

What are the minimum limits for auto coverage in this state?

30/60/25

An agent has completed a total of 30 hours of continuing education (CE) during a license renewal period. How many of these hours may the agent apply toward the next CE compliance period?

6

To be eligible for businessowners policy (BOP) coverage, an office building CANNOT be higher than

6 stories.

If a PAP is terminated for any reason other than nonpayment of the premium, the effective date may be how many days from the date the notice is mailed?

60 days

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

A two-ton grain truck with a 6,500-pound capacity

An uninsured motor vehicle includes all of the following EXCEPT

A vehicle being used for public livery.

Transportation expenses are covered under a Policy Auto Policy for A. $15 per day, for a maximum of $450. B. $25 per day, for a maximum of $500. C. $50 per day, for a maximum of $500. D. $50 per day, for a maximum of $750.

A. $15 per day, for a maximum of $450.

What is the basic limit for costs incurred at the place a vehicle is disabled provided by the towing and labor costs endorsement? A. $25 B. $50 C. $75 D. $100

A. $25 This endorsement provides a basic limit of $25 for towing and labor costs incurred at the place a vehicle is disabled. Higher limits are available for an additional premium.

In the split limit coverage in PAP, which limit indicates the maximum amount the policy will pay for bodily injury per person? A. 1st limit B. 2nd limit C. 3rd limit D. Combined limit

A. 1st limit Split limit coverage uses 3 limits that represent dollar amount. The first limit indicates the maximum amount the policy will pay for bodily injury for each person.

If the ocean marine contract pays the ACV of the property just prior to the loss, it is A. An indemnity contract. B. A replacement cost contract. C. A demurrage contract. D. A valued contract.

A. An indemnity contract. The insured must not profit from the loss but instead be put back into the same financial condition as before the loss(normally ACV); this is considered an indemnity contract.

The designation symbols used in commercial auto policies can be found in which policy section? A. Covered Auto B. Liability Coverage C. Definitions D. Conditions

A. Covered Auto Section I - Covered Auto of a commercial auto policy explains the designation symbols used in that coverage.

Zachary is the proud owner of a 1998 sports car to which he has added a high performance engine costing several thousand dollars. Zachary has added an endorsement to his auto policy which will policy which will provide coverage against loss or damage to the engine. This type of endorsement is known as. A. Damage to Your Auto (Customized Equipment). B. Extended transportation Expenses. C. Miscellaneous Coverage. D. Extended Liability Coverage.

A. Damage to Your Auto (Customized Equipment). Separate endorsements are used to provide coverage for sound equipment, customizing equipment, and other property.

Extended nonowned Coverage endorsement in a PAP broadens which of the following coverages? A. Liability and medical payments B. Transportation expenses C. Uninsured motorists D. Physical damage

A. Liability and medical payments This endorsement can broaden the liability only, or liability and medical payments coverage provided in the policy for individuals specifically named on the endorsement. It provides coverage for nonowned autos that are available for the regular use of the insured, the use of covered vehicles to carry persons or property for a fee, or use of the vehicle in the businesses (excluding the automobile business).

Which of the following is covered under the physical damage coverage of a personal auto policy? A. Sound reproduction equipment permanently installed in the covered auto. B. A covered auto seized and destroyed by a government authority. C. A cellular phone in a locked vehicle. D. Custom furnishings or equipment in a pick up or van.

A. Sound reproduction equipment permanently installed in the covered auto.

Which of the following symbols is available to an insured with vehicles subject to no-fault coverage? A. Symbol 5 B. Symbol 6 C. Symbol 7 D. Symbol 9

A. Symbol 5 Symbol 5 covers owned autos subject to no-fault coverage.

An insured invites his neighbors out for a day on the water in his boat powered with a 150 hp outboard motor. While attempting to tie the boat to dock, his neighbor's hand is broken when caught between the boat and dock. What coverage would apply to the broken hand? A. The insured's boat owners policy B. The insured's outboard boat and motor policy C. Homeowners personal liability coverage D. Homeowners property coverage

A. The insured's boat owners policy Outboard boat and motor policies are property coverage only. Homeowners liability does not apply to outboards with more than 25 hp. Boatowners policies contain property, liability, and medical payments coverage.

If the underwriters direct a vessel to proceed to a particular port for repair, who pays the expenses, including wages and maintenance, of doing so? A. The insurer B. The assured C. The crew D. The owners of the vessel

A. The insurer If the underwriters direct the vessel to proceed to a particular port for repair, the insurer will pay the expenses of doing so, including wages and maintenance for the master, officers, and crew.

The other insurances clause of an ocean marine policy allows coverage for which reasons? A. To obtain coverage for war, strikes, and related risks not covered by the policy. B. To replace an existing policy. C. To add endorsements. D. To expand existing coverages such as earthquake, fire, and hail.

A. To obtain coverage for war, strikes, and related risks not covered by the policy. AIHC allow coverage for war, strikes, and related risks not covered by the policy.

How much coverage can be available for watercraft damage in the homeowners policy? A. Up to $1,500 B. Unlimited amount C. No more than $1,000 D. Homeowners policies do not cover watercraft

A. Up to $1,500 Homeowners policies limit the amount of property and liability coverage available for watercraft. Only $1,500 of coverage is provided in the homeowners policy for damage to watercraft, accessories, equipment and trailers, and liability for watercraft is limited by the size of the boat (inboard powered boats up to 50 horsepower, outboard powered boats up to 25 horsepower, or sailing vessels up to 26 feet in length).

Ocean marine policies commonly refer to the person covered by the policy as the

Assured.

Claims for damage to an insured auto, caused by a motorist whose insurance company is insolvent, will have a deductible of A. $50 applied to the loss B. $100 applied to the loss C. $500 applied to the loss D. $1,000 applied to the loss

B. $100 applied to the loss. There is an exclusion for the first $100 of property damage applicable to each insured.m

Under the personal auto policy, liability for bodily injury resulting from the insured's use of a nonowned automobile is A. Provided by the insured's policy on a primary basis B. Provided by the insured's policy on an excess basis. C. Not covered. D. Shared on a pro rate basis.

B. $15Provided by the insured's policy on an excess basis.

Most American Institute Hull policies are written with a coverage term of A. 6 months. B. 1 year. C. 2 years. D. For the time period of the voyage.

B. 1 year Although hull policies could be written for a specific period of time, for a voyage, or for a voyage plus a stated amount of time in port after the voyage, most AIHC policies are issued for a term of 1 year.

With respect to the personal auto policy which of the following vehicles could be classified as a nonowned auto? A. A vehicle rented for the insured's personal use B. A vehicle that is titled to another person, but is being used with permission by an insured C. A vehicle leased to the named insured for 12 months by a leasing company D. A vehicle that is titles and insured by the named insured, but is driven principally by the named insured's son, who is resident of the household.

B. A vehicle that is titled to another person, but is being used with permission by an insured Because the personal auto policy coverage on both owned and nonowned autos, situations will exist in which two or more policies will apply in a given situation. If the auto is owned and insured by someone other than the operator, then that policy will be primary coverage for that auto, and the operator's insurance would act as excess.

In a personal auto policy, the medical payments coverage is similar to A. Bodily injury coverage, because it provides legal protection if the insured causes injuries to others. B. Accident insurance, because it pays medical expenses regardless of fault. C. Accident insurance, because it has the same limits. D. Bodily injury coverage, because it pays the insured's doctor bills.

B. Accident insurance, because it pays medical expenses regardless of fault.

The at-fault driver in an insured's auto crash had the state required minimums for auto liability coverage, but not enough to pay for all of the damage done to the insured. The driver is A. Considered uninsured B Considered underinsured. C. Not liable for the damages in excess of his limits. D. Required to post a bond for the amount of damages above his limits.

B. Considered underinsured.

The American Institute's Hull Clause for the Return of Premium will apply if a vessel has been laid up in port not under repair, and not used for storage. The premium will be returned for A. Each 10-day period. B. Each 30-day period. C. The first 10 days only. D. The first 30 days only.

B. Each 30-day period. An American Institute Hull Clause (AIHC) standard condition states that the premium will be returned on a PRO RATA basis for each 30 consecutive day period laid up in port not under repair and not being used for storage or lighting.

To perform work on a customer's car, a mechanic in an auto shop had to put the vehicle on a service hoist. The hoist collapsed, damaging the vehicle and injuring the mechanic. In regard to the garage coverage form, which of the following statements is true? A. Coverage is provided for the bodily injuries to the mechanic. B. No coverage is applicable. C. Coverage is provided for the car on the hoist only. D. Coverage is provided for all perils.

B. No coverage is applicable. The garage coverage form does not cover property damage for a customer's vehicle that is on a service hoist or for bodily injury.

If a person is using an auto with the belief that he is entitled to do so, subrogation rights under a personal auto policy would apply to all coverages EXCEPT A. Liability B. Physical damage. C. Uninsured motorist. D. No-fault medical payments

B. Physical damage Subrogation rights do not apply to physical damage coverage if the damage is caused by a person using the auto with a reasonable belief that they were entitled to do so.

Who is NOT considered an employee in a commercial general liability (CGL) policy> A. Part-time worker B. Temporary worker C. Leased worker D. Full-time worker

B. Temporary worker In a CGL policy, a temporary worker is not considered an employee.

According to the standard workers compensation and employer liability policy form, a state should be listed in Part Three - other states' insurance of the workers compensation and employers liability policy when A. The state has a monopolistic workers compensation fund. B. The insured expects to extend operations to that state. C. The insured has operations in the state where the policy is written. D. The insurer is not licensed to write workers compensation in that state.

B. The insured expects to extend operations to that state. By naming a state in Part Three of a workers compensation and employers liability (WC&EL) policy, an employer provides that company operations may be conducted in that state.

Which of the following circumstances would be EXCLUDED under medical payments coverage of a personal auto policy? A. The insured is struck by another vehicle while crossing the street. B. The insured is injured while driving his motorcycle on his resident premises. C. The insured's friend is injured in an accident while riding as a passenger in the insured's car. D. The insured's mother is injured while exiting from the insured vehicle.

B. The insured is injured while driving his motorcycle on his resident premises. Coverage does not apply when the insured is occupying a vehicle with fewer than 4 wheels.

All of the following are true regarding physical damage coverage EXCEPT A. The insurer will pay for direct and accidental loss to a covered auto minus any applicable deductible. B. The limit of liability is the greater of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle. C. Losses to non owned autos will be covered the same as the broadest coverage available for any covered auto, except nonowned trailers are limited to $1,500. D. The policy will pay up to $20 per day up to a maximum of $600 for rental transportation.

B. The limit of liability is the greater of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle.

When would uninsured motorist coverage apply? A. When the insured is legally liable B. When the other party is legally liable but has no insurance C. When the insured drives an uninsured car D. When the insured is legally liable, but does not have sufficient coverage

B. When the other party is legally liable but has no insurance

The bankruptcy provision found in the personal auto policy states that bankruptcy of the insured A. Will waive all future premiums. B. Will not relieve the insurer of its policy obligations. C. Is one of the reasons an insurer can cancel the policy. D. Will suspend the physical damage coverage.

B. Will not relieve the insurer of its policy obligations. The insurer must provide the coverage stated in the policy

Coverage A -

Bodily Injury and Property Damage

An insured has $5,000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000 for the first passenger, and $8,000 for the second passenger. How much will the policy pay under medical payments coverage? A. $5,000 maximum for the accident. B. $5,000 minus the policy deductible. C. $14,000 D. $15,000

C. $14,000 The limit is not more than $5,000 per person, per accident.

Under a PAP, in which of the following locations would a vehicle primarily garaged in California be covered? A. Mexico B. Only in California C. Any other state D. Anywhere in the world

C. Any other state If a covered auto is involved in an auto accident that occurs in any state or Canadian province other than the one in which the auto is principally garaged, the out-of-state coverage will apply.

Ocean marine policies commonly refer to the person covered by the policy as the A. Policy owner B. Inchmaree C. Assured D. Master

C. Assured Ocean marine policies commonly refer to the person covered by the policy as the assured. (From common ocean marine terms in use since 1689)

Which of the following forms provides the broadest coverage under an employee theft coverage form? A. Name schedule B. Individual C. Blanket position D. Position schedule

C. Blanket position Blanket position bond covers all employees in all positions on a per employee basis

An insured is involved in an accident in another state. The state has a financial responsibility law that specifies limits of liability higher than the limits shown in the declarations. What amount will the insured's policy pay? A. The insurer will not pay for out-of-state accidents B. Only the limits specified in the policy C. Higher limits D. Lower limits.

C. Higher limits According to the out-of-state coverage provision in the PAP, if the state or province has a financial responsibility law specifying limits of liability higher than the limits shown in the declarations, the insured's policy will provide the higher specified limits.

In accordance with AIHC, a pro rata return of premium will be given for all of the following reason except A. In event of termination under the change of ownership clause. B. If policy is cancelled by the underwriters. C. If the policy is cancelled by the insured. D. For each period of 30 consecutive days the vessel may be laid up in port not under repairs.

C. If the policy is cancelled by the insured. If the policyholder cancels, a short rate refund is due.

CGL Coverage B (Personal and Advertising Injury) will cover A. Oral or written publication of material the insured knows is false. B. Any offense committed by an insured whose business is advertising. C. Inadvertent injury to others caused in the course of advertising the insured's product. D. The failure of goods to conform to advertised quality or performance.

C. Inadvertent injury to others caused in the course of advertising the insured's product. Personal and advertising injury coverage does not apply to professional advertisers or intentional injury and does not guarantee the product will perform as advertised.

Which of the following statements is NOT true regarding a personal umbrella liability policy? A. It may require the payment of a self-insured retention. B. It provides excess liability coverage underlying personal liability. C. It provides errors and omissions coverage for an agency. D. It may cover certain exposures not provided under the primary layer.

C. It provides errors and omissions coverage for an agency. Personal umbrella policies cover the personal exposure of the insured. Errors and omissions coverage is provided only in a professional liability policy.

Which of the following personal auto coverages would pay for the insured's travel expenses and loss of earnings while involved in the settlement process of a covered loss? A. Comprehensive coverage B. Collision coverage C. Liability coverage D. Medical Payments

C. Liability coverage Supplementary payments, found in Part A - Liability, include expenses incurred by the insured at the insurer's request, including $200 per day for attending trials or hearings.

In ocean marine insurance, what does the term "average" mean? A. Property eligible for coverage B. Premium paid for the policy C. Loss or damage D. Standard risk

C. Loss or damage Average in ocean marine language means loss or damage.

All of the following statements regarding a boatowners policy are true EXCEPT A. Physical damage coverage is provided on an actual cash value (ACV) basis. B. Perils are insured on an open-peril basis, providing that the insurer will pay for direct and accidental loss to the property insured. C. Replacements for the boat listed in the Declarations are automatically covered, if the insured notifies the insurer within 60 days and pays the additional premium. D. Watercraft liability protects up to specified limits for claims against a "covered person" for damages due to bodily injury cause by a water craft.

C. Replacements for the boat listed in the Declarations are automatically covered, if the insured notifies the insurer within 60 days and pays the additional premium. Automatic coverage is provided on replacements for the boat listed in the declarations provided the insured notifies the insurer within 45 days of purchase and pays any additional premium required.

In a personal umbrella policy, the amount paid by the insured for certain losses not covered under the primary coverage is called A. Coinsurance. B. Participation requirement. C. Self-insured retention. D. Stop-loss.

C. Self-insured retention In casualty insurance, the portion of a claim not paid by the insurance is called a retention. In property insurance, it is called a deductible.

What is the deductible of a personal liability umbrella policy called? A. The CGL B. The CPP C. The SIR D. The PIL

C. The SIR The self-insured retention (SIR) is an initial part of a loss the insured pays before the umbrella pays if no other policy covers the loss.

When an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays A. The amount in excess of the underlying policy deductible. B. A percentage of the loss as described on the declarations. C. The excess over the self-insured retention. D. The amount specified in the policy under the additional coverage provisions.

C. The excess over the self-insured retention. Retention is the equivalent of a deductible in property insurance.

If a pilotage and towing firm is responsible for damage done to a vessel while the vessel is under its control, who is liable for the damage? A. The insurer of the vessel B. The vessel's owners or managers C. The insurer of the pilotage and towing firm D. The vessel's assured

C. The insurer of the pilotage and towing firm If the pilotage or towing firm is responsible for the damage, the firm would be liable for paying for it.

When a vehicle travels from one state to another, what happens to the limits of policy liability in a personal auto policy? A. They increase based on the state law B. They decrease based on the state law C. They do not change D. They do not apply

C. They do not change

(CGL) Section IV -

Commercial General Liability 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

Bid bonds, payment bonds, and performance bonds are all examples of

Contract bonds.

(CGL) Section I -

Coverage A,B and C

(PAP) Part D-

Coverage for Damage to Your Auto

While an insured's covered auto is in the repair shop following damage caused by a collision, the insured would have coverage for which of the following vehicles under a personal auto policy? A. Any vehicle used by the insured without the reasonable belief that the insured is entitled to such vehicle. B. Any auto furnished for the insured's regular use, but not named on the policy. C. Any vehicle while located inside a racing facility for the purpose of racing. D. Any vehicle not owned by the insured, but furnished for use while the covered auto is out of normal use because of repair

D. Any vehicle not owned by the insured, but furnished for use while the covered auto is out of normal use because of repair This coverage does not apply to vehicles not owned by the insured, but furnished for an insured's regular use.

An ocean marine adventure is A. A measure of indemnity. B. A pleasure cruise. C. Loss or damage. D. Any voyage.

D. Any voyage. In ocean marine terms, and adventure is a trip or voyage.

What type of coverage do umbrella policies provide? A. Property coverage for those who do not qualify for homeowners insurance B. Property coverage for the basic perils of fire, wind, and hail C. Primary coverage for risks that are difficult to insure D. Excess coverage over an underlying or primary policy

D. Excess coverage over an underlying or primary policy Umbrella policies, sometimes called catastrophe insurance provide excess coverage over the underlying or primary liability policy.

What type of ocean marine insurance provides physical damage coverage for the ship while it is in transit? A. Cargo B. Freight C. Protection and Indemnity D. Hull

D. Hull Physical damage or loss of the ship itself is covered by the hull policy.

Which of the following is NOT true if ownership changes, voluntary or otherwise? A. The ocean marine policy shall terminate automatically at the time of ownership change. B. If the vessel already has sailed from her loading port, automatic termination may be deferred until arrival at the final port of discharge. C. If involuntary temporary transfer occurs without prior written agreement by the assured, automatic termination shall occur 15 days after transfer. D. If the vessel already has sailed from her loading port, automatic termination may be deferred until 15 days after arrival at final port of discharge.

D. If the vessel already has sailed from her loading port, automatic termination may be deferred until 15 days after arrival at final port of discharge. This a part of the Standard American Institute Hull Clauses (AIHC).

With regards to the personal auto policy, in the event of a claim or loss, the insured is required to do all of the following EXCEPT A. Notify the insurer as soon as possible with a description the accident. B. Protect the insured auto from further damage. C. Promptly contact the police if the accident was a hit-and-run.

D. Immediately report to an emergency room for medical examination. The personal auto policy states that the insurer has no duty to provide coverage under the policy if the insured's failure to comply with the duties after an accident or loss results in harm to the insurer.

Coverage A - Bodily injury and Property Damage in the commercial general liability policy will cover A. Liquor liability. B. Contractual liability. C. Damage to the insured's product. D. Losses due to the insured's negligence.

D. Losses due to the insured's negligence. Coverage A provides protection for bodily injury and property damage suffered by third parties due to the negligence of the insured. The rest are exclusions.

A common exclusion found under physical damage to your auto includes A. Glass breakage B. Riot or civil commotion C. Towing and Labor D. Mechanical breakdown

D. Mechanical breakdown Damage due to wear and tear, freezing, mechanical or electrical breakdown and road damage to tires are common exclusions to the physical damage coverage section.

A boatowners policy does NOT cover A. Damage to the boat and trailer. B. Liability C. Medical payments D. Nuclear hazards

D. Nuclear hazards Boatowners policies, like homeowners policies, cover property, liability, and medical payments

Rental Reimbursement is only available if the policy includes which coverage? A. Extended Non owned Coverage for Named Insured B. Towing and Labor Costs C Named Nonowner Coverage D. Other Than Collision Coverage

D. Other Than Collision Coverage This endorsement is only available if the policy includes other than collision coverage. This endorsement will reimburse the insured for rental charges incurred because the covered auto is of use because of a covered loss.

When ABC Appliance's marketing stated that its mowing machine was the only safe mower available for purchase in town, ABC was sued by XYZ Lawn and Garden. ABC's coverage would come from which part of its general liability coverage? A. This claim would not be covered B. Premises and operations C. Product liability D. Personal and advertising injury liability

D. Personal and advertising injury liability Personal and advertising injury liability responds to claims resulting from oral or written publication of material. It is included automatically in the Insurance Services Office, Inc. (ISO) commercial general liability coverage as Coverage B.

B&B Market was sued when an employee detained a person he believed to be a shoplifter, but the person turned out to be the meter reader. Which coverage would apply to this suit? A. Bodily injury liability B. Property damage liability C. Crime coverage part D. Personal and advertising injury liability

D. Personal and advertising injury liability This suit would fall under the coverage of personal injury, damage to the character of the claimant.

All of the following are parts of a personal auto policy EXCEPT A. Medical payments coverage B. Duties after an accident or loss. C. Liability coverage D. Physical damage coverage

D. Physical damage coverage

In the event of a claim under a commercial general liability policy, the insured has all of the following duties to the insurer EXCEPT. A. Providing prompt written notice of any claim or suit actually filed against the insured. B. Furnishing the insurer with copies of any demands, notices, or other legal papers received in connection with a claim or suit. C. Assisting the insurer upon request in the enforcement of any right against any person or organization that may be liable to the insured. D. Submitting to a medical exam when requested.

D. Submitting to a medical exam when requested. Under medical payments coverage, the injured third party has to submit to an exam upon request, not the insured.

Which of the following statements is true regarding the commercial general liability policy's Coverage C - Medical Payments? A. The coverage applies to bodily injury to the named insured. B. The coverage is liability insurance because it pays only if the insured is legally liable. C. The coverage provides high limits of insurance for bodily injury losses. D. The coverage is considered good will because payment are made without regard to fault.

D. The coverage is considered good will because payment are made without regard to fault. Coverage C - Medical Payment provides necessary medical, surgical, ambulance, hospital, nursing or funeral expenses for injuries to third parties. Payment will be paid without regard to the fault or negligence of the insured.

All of the following statements concerning liability coverage are true EXCEPT A. The insurer cannot refuse to pay a claim even if the insured is bankrupt. B. Liability policies normally include supplementary payment provisions. C. Liability policies defend the insured against claims, real, or alleged. D. The policyholder can sue the insurer whether or not all conditions and provisions of the policy have been met.

D. The policyholder can sue the insurer whether or not all conditions and provisions of the policy have been met. The legal action against the insurer condition state that the policyholder cannot sue the insurer unless he or she has met all conditions of the policy.

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

Declarations

(CGL) Section VI -

Definitions

Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called?

Discrimination

(PAP) Part E-

Duties after an accident or loss

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

Endorsements

(CGL) Section V -

Extended Reporting Periods

(PAP) Part F-

General Provisions

An insurer may deviate from the rates promulgated by the Bureau if the insurer has filed the proposed deviation with the Bureau and the Commissioner

If the proposed deviation is based on sound actuarial principles, and if the proposed deviation is approved by the Commissioner.

Which law is the foundation of the statistical prediction of loss upon which rates for insurance are calculated?

Law of large numbers

(PAP) Part A-

Liability Coverage

(CGL) Section III -

Limits of Insurance

An insured is driving her automobile and strikes a large pothole that causes a flat tire. Which coverage of the insured's personal auto policy will pay for the repair?

Loss is not covered.

Coverage C -

Medical Payments

(PAP) Part B-

Medical Payments Coverage

An agent is completing an application of insurance for a client. The agent is required to provide the client e a "notice of information practices" at all of the following times EXCEPT

No notice is ever required at the initial completion of the application.

Erroneous Publishing copied all the material from Angels Inc.'s book. The only changes made by Erroneous were to rename the title and chapters, put a different cover on it, and distribute it as its own. Angels Inc. files a claim against Erroneous and seeks damages. Will a commercial general liability policy cover the claim?

No, because the claim results from copyright infringement and is not in an advertisement.

Coverage B -

Personal and Advertising Injury

All of the following conditions must exist for injury or damage to be included in the products and completed operations hazard of a commercial general liability policy EXCEPT

The injury or damage must occur within 90 days after the insured's work is completed.

Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy? A. The insured would have to pay the self-insured retention limit. B. The insured would be responsible for the amount required as underlying limits in the event of a claim. C. It would have no effect of the umbrella policy. D. The policy will be cancelled.

The insured would be responsible for the amount required as underlying limits in the event of a claim. The amount of insurance required as underlying limits in other policies is treated as a deductible amount to the umbrella for that particular exposure, so if underlying limits are not maintained, it is the insured's responsibility.

The other insurances clause of an ocean marine policy allows coverage for which reasons?

To obtain coverage for war, strikes, and related risks not covered by the policy

(PAP) Part C-

Uninsured motorist coverage

In the personal auto policy, owned trailers being towed by an insured auto are automatically covered for

Uninsured motorist 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.

(CGL) Section II -

Who is an insured

As you leave the dock in your yacht, you carelessly cut in front of another yacht, causing its crew to change course. They run into a buoy damaging their boat. What coverage takes care of the damages?

Your P&I

Section I of a boatowners policy covers

physical damage