Person Lines{exam}

Which of the following is correct formula for computing a loss ratio...?

(Incurred loss plus adjusting expense)/earned premium

Under additional courages for homeowner policies what is the maximum amount that would be paid for five department service charge...?

1,000

Uninsured of 5000 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 $7000 for the insured, $4000 for the first passenger, and 8000 for the second passenger. How much will the policy pay end of medical payments coverage...?

14,000

A temporary license is good for...?

180 days

If author is to write life on property casualty insurance how many hours of continuing education instruction are producers required to complete every two years...?

24

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing the report will be obtained

3 days

Ensure examinations must occur no less frequently than every...?

5 years

Insure examinations must take care no less frequently than every...?

5 years

Under coverage so you have a homeowners policy the amount of insurance provided to cover personal property of the insured is...?

50% the amount provided as coverage A

And earthquake coverage provided by endorsement in a homeowners form, one or more of the earthquake shots would be considered a single earthquake if they occur within what maximum amount...?

72 hours

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

72 hours

What is the minimum amount of coverage that should be carried on an HO-2 on a home that was purchased four years ago for 75,000, which today has a replacement value of 100,000...?

80,000

If a telemarketer wants to make an unsolicited cell call to the potential customer what is the earliest time a telemarketer can call the prospect resident...?

8am

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

A 2 ton crane truck with a 6,500 pound capacity

The ensure has determined it will cost more to repair the car then it will be worth when repaired. Rather than to pay for the repairs, the company declares it as a total loss. This is...?

A constructive total loss

All of the following are examples of hazard except...?

A fire in the kitchen of a home

Which of the following persons would be required to hold a license...?

A person who negotiates insurance contracts

Which of the following producers will be required to complete continuing education hours to renew his license...?

A producer licensed four years ago who holds only one line of authority

Coverage F (medical payments) under a homeowners policy would cover...?

A residence employee who is injured on the job

Coverage F (medical payments) under a homeowner policy would cover...?

A residence enployee who is injured the job

Insurance policies are not Toronto negotiations and insured has little to say about its provision. What contract characteristic does this describe...?

Adhesion

In which of the following types of property valuation will the policy pay Full value as specified on the policy schedule regardless of the insurance properties appreciation for depreciation...?

Agreed Value

Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company...?

Aleatory

Funding for the operation and administration of Louisiana insurance guarantee association comes from...?

Annual assessments paid by member insurers

Should two or more insurers issue a combined standard fire policy ensuring a single risk, and the event of a loss, the insured must notify?

Any of the insurance providing coverage

A couple bought tickets to a college hockey tournament at the game straight up flies into the stand and hits the wife in the face, breaking her nose. Which legal defense may bar her from recovering damages for the injury she received at the hockey game...?

Assumption of risk

Which of the following would not be covered under the liability section of a personal auto policy...?

Bodily injury caused by the insured negligence while driving a three wheel all terrain vehicle

Which of the following statements regarding coverage for the flood and earthquake perils is true...?

Both flood an earthquake are excluded pearls in our property policies

Which of the following other coverages is not included in the basic form of the dwelling ppolicy..?

Breakage of glass

I insured was involved in a automobile accident for which stand shirt was that fault which of the following coverages would pay for the damage of their insurers automobile..?

Collision

And Louisiana automobile liability insurance is considered to be...?

Compulsory coverage

In Louisiana automobile liability insurance is considered to be...?

Compulsory coverage

What term best describes the act of withholding material information that would be crucial to an underwriting decision...?

Concealment

Which of the following is the most common way to transfer risk.?

Conditions

I insure neglects to pay a legitimate claim that is covered under the terms of the policy which of the following insurance principles has the insure of violated...?

Consideration

I insure a conduct business in Louisiana without a certificate of authority. Hundreds of policies are sold, and claim start rolling in which of the following is true...?

Dan Sheryl will have to play the claims anyway

When I put this I was reviewing a potential customers coverage and buy another company that produces made so remarks that were maliciously critical of that other insure. The producer could be found Guilty of...?

Defamation

Which of the following will not be considered unfair discrimination by insures...?

Discriminating in benefits encourages based on the insured habits and lifestyle

Residential structures including individual condominium units, and their contents are insured by what part of the national flood insurance program...?

Dwelling policy form

Which of the following would modify the original insurance contract that either adding or a moving coverage...?

Endorsement

ABC insurance company receives an complete Application an issue the policy anyway six months later, ABC realizes the missing information. Which of the following provides ABC for personal policy owner to answer further questions...?

Estoppel

Insurance companies that hold a certificate of authority to transact insurance in Louisiana must be examined how often...?

Every five years or as often as the commissioner feels is necessary

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

Exclusion

An insurance company insurance it's new policy holders that their premium cost will not increase for the period of at least five years however due to the increasing financial strain they plan to raise premium cost for all insurance by 10% over the next two years what term best describes this...?

Fraud

Uninsured condominium unit owner wants to purchase fire and extended covers for personal property and liability coverage for himself and his family members. He should purchase...?

HO-6

Which of the following would most likely be excepted for coverage under the fair plan..?

I am sure who can't find an insured to cover his/her property because of his location

Which statement regarding insurable risk is not correct...?

Insurance cannot be randomly selected

Dwelling coverages include all of the following except

Land on which the dwelling is located

The insured house is located 1 mile from the countries new landfill and across the road from the entrance of a rock quarry. It cost 1500 to rebuild the house or something happened to it, but when the insured try to sell are the best offer he received was $80,000. The insurance company will ensure the house for only 80,000. What method of valuation is used to ensure this property...?

Market value

Under contributory negligence, when an individual is found to have contributed his are her own loss in anywhere another party...?

May not be held liable

Damage to insured property caused by earthmoving earthquake is covered under which of the following homeowner forms...?

None

Duties of the insurer found in property policy conditions include all of the following EXCEPT...?

Notify the insured in the event of financial difficulty

Duties of the insurer found in property policy conditions include all of the following except...?

Notify the insured in the event of financial difficulty

The Graham Leach Bliley act was passed to...?

Protect private customer information Filed with a financial institution

Installing deadbolt locks on the doors of a home is an example of which method of handling risk

Reduction

The Federal Fair Credit Reporting Act

Regulates consumer reports

Wendy insurance car was totaled in a recent accident, the ownership of the car was transferred to the insurer. The insured and sold off the Re car to recover some of its lost it paid to the insured what is the term of this action..?

Salvage

When the insured car was totaled in a recent accident the ownership of the car was transferred to the insure insurance and sold off the wrecked car to recover some of his loss it paid to be insured. What is the term for this action.?

Salvage

Which policy condition an HO policy states that the insurance applies separately to each insured...?

Severability of insurance

Which policy condition in HO policies states that the insurance applies separately to each insured..?

Severability of insurance

Local sports castor Fred Fillmore states on the air doing the news Telicast that the local profile pa coach has a lousy record, which is untrue. This is an example of...?

Slander

What are two types of compensatory damages...?

Special and general

Under a dwelling policy which of the following is not a factor in determining a loss...?

The amount negotiated by the insured

All of the following statements concerning coinsurance are true except...?

The coinsurance formula will also be applied to the total losses

One an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by a underlying policy, it usually only pays...?

The excess over the self insured retention

which of the following best describes negligence...?

The failure to use reasonable and prudent care

If more than one person has an insurable interest in the property covered under a dwelling policy,....?

The insural will be liable for only the insured interest in the damage property

All of the following are factors in the determination of actual cash value except...?

The insurance premium paid

The medical payments coverage in a personal auto policy will pay reasonable medical expenses for all the following except...?

The insured is injured while exiting a friends mobile home

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 and the damage property

A mortgage company is named as a loss payee on the insurance homeowners policy under the standard mortgage clause. If the insured suffers a loss to the fire, which of the following is true...?

The loss is payable to the insured and the mortgagee

In terms of parties to a contract, which of the following does not describe a competent party...?

The person must have at least completed secondary education

Which of the following is not a goal risk retention...?

To minimize the insured level of liability in the event of loss

A type of policy that is used to provide a specific amount of replacement cost for a given risk after an insured property has been destroyed is called an...?

Valued policy

When a parent is required to pay for damages caused by his or her children, this is an example of...?

Vicarous liability

Insurance company receives an application with some of the information missing and issues the policy anyway what is this called...?

Waiver

Which of the following is a statement that is guaranteed to be true, and if untrue, may breached insurance contract...?

Warranty

Informing an insurance contract, when does acceptance usually occur...?

When an insurance underwriter approves coverage