p&c test questions #3

d)Shows the types and amounts of insurance issued to the insured.

A Certificate of Insurance is a written document that a)Obligates the insurer to the person to whom the insurance was issued .b)Names the insured's beneficiary. c)Allows the insurer to inspect the insured's books. d)Shows the types and amounts of insurance issued to the insured.

Penalty

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

b)Workers compensation coverage

A commercial package policy (CPP) allows the insured to select the coverage needed and customize the policy to meet the needs of the insured's business. In a CPP, the business owner may select from all of the following types of coverage EXCEPT a)General liability coverage b)Workers compensation coverage c)Crime coverage d)Boiler and machinery coverage

Liberalization clause

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

a)It must be added by endorsement to a homeowners policy.

All of the following are true of Coverage B - Other Structures in homeowners policies EXCEPT a)It must be added by endorsement to a homeowners policy. b)This coverage is not applicable on the HO-4 policy form. c)The amount of coverage provided by Coverage B is an amount equal to 10% of Coverage A. d)Land where the other structures are located is not covered.

c)Dividends from a mutual insurer.

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT a)Stocks, securities, or bonds. b)An offer to share in commissions generated by the sale. c)Dividends from a mutual insurer. d)An offer of employment.

b)It provides coverage for all employees, even those employees who were terminated in the past 90 days

All of the following statements are true regarding employee dishonesty optional coverage under the businessowners policy (BOP) EXCEPT a)Coverage includes all property, including money and securities owned or held by the insured. b)It provides coverage for all employees, even those employees who were terminated in the past 90 days c)It provides coverage for direct loss or damage to business personal property. d)Losses result from dishonest acts of any of the insured's employees.

Foreign

An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming?

b)Transportation/Permission to Move Endorsement

An insured covered under a Mobile Homeowners Policy wants to move the location of the covered mobile home. Which of the following must the insured obtain from the insurer? a)Additional Coverage Property Removed Endorsement b)Transportation/Permission to Move Endorsement c)Housing and Transportation Coverage d)Loss of Use Coverage

The policy will pay $20 per day after 48 hours, not to exceed 30 days in total

An insured has a personal auto policy with both comprehensive (other-than-collision) and collision coverage. His car is stolen and recovered five days later. If the insured claims transportation expenses of $20 per day, how much will his policy pay?

The accounts receivable coverage form

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

Contracts of adhesion

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as

b)It removes the coverage.

How does the mobilehome endorsement affect the other coverage of law or ordinance in a homeowners policy? a)It has no effect on this coverage. b)It removes the coverage. c)It broadens the coverage. d)It limits the coverage.

45 days

If the premiums for a policy will be increased by more than 15 percent, how much warning must the insured get?

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

a)Handling insurer funds in a trust capacity.

In insurance transactions, fiduciary responsibility means a)Handling insurer funds in a trust capacity. b)Maintaining a good credit record. c)Being liable with respect to payment of claims. d)Commingling premiums with agent's personal funds

Special

Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages?

b)Within 100 feet of the described premises.

Personal business property out in the open is covered under commercial property policy only while a)Within 150 feet of the described premises. b)Within 100 feet of the described premises. c)Located on the described premises. d)Specifically described on the declarations.

45 days

The insured with a claims-made commercial general liability (CGL) policy may request in writing claim and occurrence information from the insurer at any time up to 60 days after the policy period ends. The insurer must provide the information within...

Exclusions

The section of an insurance policy that details what perils are not insured against and what persons are not insured is known as the

72 hours

Under the dwelling policy form, what is the maximum time limit during which multiple volcanic activities would be considered part of one occurrence?

Commercial entities and government entities

What are the two major sections of commercial crime policies?

Special and General

What are the two types of compensatory damages?

$2,500

What is the limit for the forgery or alteration coverage in the businessowners policy?

$1,000

What is the maximum dollar amount an insurer will pay for loss to sound equipment permanently installed in a vehicle insured under a business auto policy?

General

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

Personal liability

What type of coverage is Coverage E in homeowners policies?

c)Renewal dates

What type of information would be found in a policy's insuring agreement? a)Policy limits b)Insurer's address c)Renewal dates d)Location of premises

a)The excess over the self-insured retention.

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 excess over the self-insured retention. b)The amount specified in the policy under the additional coverage provisions. c)The amount in excess of the policy's limits of liability. d)A percentage of the loss as described on the declarations.

Foreign

When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?

replacement cost

Which method of loss valuation is contrary to the basic concept of indemnity?

b)Declarations

Which of the following is a mandatory part of an insurance policy that varies with each individual policy? a)Insuring agreement b)Declarations c)Conditions d)Exclusions

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

Which of the following is covered under the Camera and Musical Instruments Dealers floater? a)Money kept on premises of a camera shop b)A customer's camera left at a camera shop for repair c)A musical instrument sold and delivered to a customer d)Furniture, fixtures and office supplies in a music store

c)Coverage D

Which of the following is the Fair Rental Value coverage in the dwelling policy? a)Coverage B b)Coverage C c)Coverage D d)Coverage E

c)The insured's business income losses due to personal injury.

With respect to commercial auto policies, the Garage Coverage Form provides liability protection for all of the following EXCEPT a)The insured's business autos. b)The insured's business products and work performed. c)The insured's business income losses due to personal injury. d)The insured's business premises.