PA Property and Casualty Questions
under the dwelling policy, if an insurer chooses to repair or replace damaged or lost property, it must inform the insured within how many days of receiving proof of loss?
30 days
for the purpose of examination by the department, insurers must keep a record of all financial files for at least
5 years
coverage under the builders risk form will end in all of the following situations EXCEPT: -construction has been abandoned. -60 days after the building became occupied. -the insured has sold the property. -60 days after the construction has ended
60 days after the construction has ended
an insured owns a building that is valued at $400,000. to comply with the 80% coinsurance provision of his insurance policy, how much should he insure the property for?
80% of the property's replacement cost or more
the part of a policy that clarifies terms in the policy is the
definitions
which of the following will NOT be considered unfair discrimination by insurers?
discriminating in benefits and coverages based on the insured's habits and lifestyles
two individuals who are in the same risk and age class are charged different rates for their insurance policies due to an insignificant factor. what is this called?
discrimination
professional liability coverage protects against legal liability resulting from
errors and omissions
which of the following statements is true regarding a mobile equipment endorsement in commercial auto polices?
the endorsement is available for additional premium
which of the following losses would be covered under the property damage liability coverage of a personal auto policy?
the insured damages a rented garage when he failed to stop in time
under the provisions of the business income coverage form, all of the following are true EXCEPT: -the insured agrees to resume all or part of the operations as quickly as possible -the insured is reimbursed for payroll that continues after the loss begins -the insured is reimbursed for the loss from the date of loss to the date of restoration or policy expiration date, whichever comes first -if the insured and insurer are unable to come to agreement as to the value of the loss, either party may make a written demand for an appraisal
the insured is reimbursed for the loss from the date of loss to the date of restoration or policy expiration date, whichever comes first
if more than one person has an insurable interest in the property covered under a dwelling policy,
the insurer will be liable for only the insured's interest in the damaged property
a licensee serving in the military is unable to fulfill her continuing education requirement. What would the licensee have to do to renew the license?
the licensee may submit a request to the department to have requirement and fees waived. the dept. will then determine if the request is permissible
which of the following is NOT a characteristic of an insured risk?
the loss must be catastrophic
according to the first-party benefits provision, which of the following would NOT be covered for injuries in an auto accident?
the vehicle owner who does not have proof of financial responsibility
all of the following are true statements regarding the supplementary payments of a commercial general liability policy EXCEPT: -they pay pre-judgement and post-judgement interest -they pay all reasonable costs incurred by the insured in helping to investigate or defend a claim -they pay defense costs even after the aggregate limit has been reached -they pay all expenses incurred by the insurer
they pay defense costs even after the aggregate limit has been reached
the business income coverage form covers consequential loss of business income that occurs when a business must suspend operations because of a direct loss. which of the following terms best describes the nature of this type of coverage?
time element
what is the purpose of the Assigned Risk Plan?
to provide auto insurance for applicants who are unable to obtain coverage through commercial insurers
the purpose of FAIR plans is
to provide property insurance to insured living in high-risks areas
the type of insurance used to cover goods for one specific trip is called
trip transit
who has the rights to veto the repair facility for a vessel?
underwriter
a teenager's who has not purchased coverage for his car, one insured by a company who has become insolvent, a hit and run when driver can't be found are all considered to be
uninsured motorists
which of the following exposures is insured under Coverage I - Personal and Advertising Injury Liability?
unintentional acts arising from the operation of a farming business
personal business property out in the open is covered under commercial property policy only while
within 100 feet of the described premises
all of the following insurance policies must contain, at a min, policy language equal to the Standard Fire Policy EXCEPT: -homeowners policy -dwelling policy -commercial property policy -workers compensation
workers compensation
what is the basic limit for costs incurred at the place a vehicle is disabled provided by the towing and labor costs endorsement?
$25
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
under additional coverages for homeowners policies, what is the maximum amount that can be charged to the insured for fire department services?
$500
what is the min required deductible that a private passenger automobile insurance policy providing collision coverage must offer in this state?
$500
a tow truck was stolen from the insured's premises. the insured has loss of use coverage on his commercial auto policy. how much will the insured be able to collect from the coverage if unable to use the town truck in its operations for 40 days?
$600
to avoid violations of unfair claims settlement regulations, insurers are required to acknowledge the receipt of a claim within how many days?
10 days
any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to
10 years
which of the following entities must approve all continuing education courses in this state?
Commissioner
when would UM coverage apply?
only when the other party is legally liable but has no insurance
which of the following coverages will respond if a claim is made or a suit is brought against an insured for damages due to bodily injury or property damage caused by an occurrence to which the coverage applies?
Coverage E - Personal Liability
an application is denied insurance because of information found on a consumer report. which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company?
Fair Credit Reporting Act
which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information
Fair Credit Reporting Act
which federal act provides benefits to injured civilians who are employed by the federal government?
Federal Employers Compensation Act
an insured couple owns a pontoon boat. Which situation would NOT be covered by their watercraft endorsement under their homeowners policy?
a friend rent their boat and runs it into a neighbor's dock
which of the following types of valuation works best for property whose value does not fluctuate much?
agreed value
which insurers are required to participate in the Pennsylvania Automobile Insurance Plan (Assigned Risk Plan)?
all insurers authorized to write auto liability insurance in the state
the insured with a homeowners policy has had damage to his property caused by a volcano. which of the following is true?
all volcanic eruptions within a 72-hour period will be considered one occurrence
all of the following would be considered rebating EXCEPT: -an agent offers tickets to a baseball game as an inducement to buy insurance -an agent misrepresents policy benefits to convince a policyowner to replace policies -an agent offers the use of his lake house to a client as an inducement to buy an insurance policy from him -an agent offers to share his commission with a policyholder
an agent misrepresents policy benefits to convince a policyowner to replace policies
which of the following losses would NOT be covered by workers compensation?
an employee intentionally self-inflicts an injury while on the job
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 insure
an installation floater is used to insure
appliances intended to become a permanent part of the building
if an insured has an umbrella liability policy in addition to his personal auto policy, which would be considered the underlying policy?
auto policy
business personal property coverage form covers all of the following EXCEPT: -furniture and fixtures -machinery that is not permanently installed -stock -automobiles held for sale
automobiles held for sale
an insurance contract must contain all of the following to be considered legally binding EXCEPT
beneficiary's consent
a producer who fails to separate premium monies from his own personal funds is guilty of
commingling
the state Insurance Code identifies all of the following as prohibited acts that can cause suspension, revocation, or denial of an insurance producer license EXCEPT: -committing a felony or its equivalent -committing any misdemeanor -failing to pay state income taxes -failing to pay child support obligations
committing any misdemeanor
workers compensation law provide all of the following types of benefits EXCEPT
compensatory benefits
in commercial auto insurance, what type of coverage will pay for loss or damage to a covered auto by any cause other than collision or overturn?
comprehensive
because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT: -legal purpose -offer and acceptance -conditions -consideration
conditions
in which of the following sections of a commercial auto policy will you find specific information about the policy period?
conditions
which of the following would be considered an illegal inducement to purchase insurance?
confirming future dividends in a life insurance proposal
an individual's construction company leaves mobile equipment and construction machinery on the job until the project is completed. what could this individual use to insure it?
contractors equipment floater
all of the following are supplemental payments found in liability policies EXCEPT: -limited amounts for bail bonds and other bonds related to a claim -costs the insured incurred in hiring an attorny -all expenses and defense costs incurred by the insurer -reasonable expenses incurred by the insured
costs the insured incurred in hiring an attorny
all of the following violations may result in an agent's imprisonment EXCEPT: -failing to report to the dept. of criminal prosecution taken against the agent in another jurisdiction -embezzling fund from the insurer -knowingly obtaining information about a consumer under false pretenses -engaging in the business of insurance after being convicted of breach of trust
failing to report to the dept. of criminal prosecution taken against the agent in another jurisdiction
the major portion of the premium for an equipment breakdown policy pays
for inspections and examinations
in farm insurance, Coverage I - Personal and Advertising Injury Liability for suits alleging personal injury is most similar to the coverage found in which coverage form?
general liability
when would a misrepresentation on an insurance application be considered fraud?
if it is intentional and material
in order to reject uninsured motorist coverage, the first named insured must make the rejection
in writing at the time of application
CGL Coverage B (Personal and Advertising Injury) will cover
inadvertent injury to others caused in the course of advertising the insured's product
when an insured has multiple autos insured, what effect does the stacking of UM and UIM coverage have in terms of the benefits available?
increases the limit of bodily injury coverage available to an insured to a total equal to the sum of the bodily injury available on all autos insured
which of the following is true regarding the fire department service charge under the builders risk form?
it is an additional coverage
the form of payment bond that protects an owner contracting for work against liens from subcontractors, suppliers, or laborers who are not paid for their services and materials by the general contractor is called
labor and material bond
which of the following would NOT be considered causes for flood conditions covered by the National Flood Insurance Program?
landslides
which of the following lists all the required elements for establishing a charge of negligence?
legal duty owed, standard of care, proximate cause, damage
what type of coverage does a homeowners policy include that a dwelling policy does not?
liability
extended nonowned coverage endorsement in a PAP broadens which of the following coverages?
liability and medical payment
which of the following is TRUE regarding business liability and medical payments coverage?
loss of electronic data is excluded under a business liability policy
a shipload of cement has been damaged by water and has become concrete. according to general cargo insurance terms in Ocean Marine policies, this is considered
loss of specie
rate that are established based on the similarities of the risk with other risks are known as
manual rates
which of the following is the term used when a person in a fiduciary position has used assets in manner for which they were not intended such as the wrongful taking or use of money belonging to another?
misappropriation of funds
which of the following is NOT included in the definitions of an "auto" under a commercial auto policy?
mobile equipment
damage to insured property caused by earth movement or earthquake is covered under which of the following homeowners forms?
none
an insured has liability policy that sets the amount for all claims that arise from a single incident at $50,000. which type of limit of liability does this insured's policy have?
per occurrence
all of the following property is insured under Coverage A of a farm policy EXCEPT
personal lawnmower of a tenant used to service the described location
which of the following statements is correct with regard to Federal Crop Insurance?
policies are written on an annual basis and may be continued providing production reports in a timely manner and renewal premium is paid
who provides and sells coverage under a state FAIR plan?
private insurance companies operating in that states
which of the following licensees is classified as a representative of the insurance company and not allowed to represent an insured or claimant?
producer
which of the following is NOT one of the four primary elements considered in establishing negligence?
proof of carelessnenss
the Gramm-Leach-Billiey Act was passed to
protect private customer information filed with a financial institution
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
all of the following are considered parts of the policy structure EXCEPT
provisions
in property insurance, actual cash value is defined as which of the following?
replacement cost at the time of the loss, less depreciation
which of the following is covered under the physical damage coverage of a personal auto policy?
sound reproduction equipment permanently installed in the covered auto
which of the following may NOT be included in an insurance company's advertisement?
that its policies are covered by a state Guaranty Association
when Commercial Crime Coverage Form M - Safe Depository Liability is written, what must be attached to the policy?
the Safe Depository General Provisions
an insured's accounts receivable records have been damaged. The loss may be covered with
the accounts receivable coverage form
an insurance agency could purchase an errors and omission insurance policy which would provide protection in the event of any of the following events EXCEPT
the agency losses commission income from policies that were not issued by the insurer
under a dwelling policy, which of the following is NOT a factor in determining a loss?
the amount negotiated by the insured
which of the following is true regarding the commercial general liability policy's Coverage C - Medical Payment?
the coverage is considered good will because payments are made without regarding fault
the occurrence form trigger is based on which of the following?
the date when injury or damage covers
the contents coverage on a homeowners policy would pay how much after the loss of one of a pair of golden candlesticks?
the difference in the actual cash value as a pair and as a single
all of the following are characteristics of the dwelling policy EXCEPT: -dwellings up to 4 family units are eligible -the dwelling must be owner-occupied -coverage includes the dwelling only, contents, only, or both -incidental occupancy of limited service-type exposure is permitted
the dwelling must be owner-occupied
