personal lines final
Under Coverage E of Joe's Homeowners policy, the company's limit of liability is best described as which of the following?
$ per occurrence
You have docked your $10,000 boat at a marina while you have lunch with your family. It is stolen. Your HO-5 policy would pay how much?
$0
The following question relates to an HO-3 (Special) homeowners policy with Coverage A limits of $100,000. From the amounts listed below, choose the dollar limit automatically provided for the coverage limit described. The automatic limit for Coverage B.
$10,000
Joe has Underinsured Auto limits of 100/300/20. Sam has liability limits of 100/300/100 when he does $160,000 worth of damage to Joe's body. Joe will receive which of the following?
$100,000 from Sam's policy and nothing from Underinsured Motorists.
Which of the following describes the automatic limits of Coverage E (Personal Liability) of an unendorsed Homeowners policy
$100,000 per occurrence
Joe has split limits of 50/100/25 in his Personal Auto Policy. The equivalent Single Limit is
$125,000
Liz Smith owns a mobilehome insured under an HO-3 with a mobile-home endorsement. The Coverage A limit is $50,000. The automatic Coverage C limit is which of the following?
$20,000
Joe's house has a replacement cost of $300,000. He has it insured for $250,000 under an HO-3. If he suffers a $20,000 loss to the roof by a covered peril, his company will pay?
$20,000 minus the deductable
Emily Pasadena has automobile liability limits of 100/300/100. She is legally responsible for an accident which causes bodily injury to one person of $125,000 and bodily injury to two other people in the amount of $30,000 each. Property damage in the same accident amounted to $53,000. The total amount that Emily's company would pay for BI and PD for this loss is
$213,000
Mine Subsidence coverage has what standard deductible
$250
The following question relates to an HO-3 (Special) homeowners policy with Coverage A limits of $100,000. From the amounts listed below, choose the dollar limit automatically provided for the coverage limit described. The automatic limit for Coverage D.
$30,000
The Indiana Insurance Guaranty Association is obligated to pay covered claims up to which of the following amounts?
$300,000
You car is hit by an uninsured motorist who was at fault for the collision. You sustain bodily injury in the amount of $27,000 and your two passengers sustain injuries in the amounts of $13,000 and $5,000 respectively. Your UM limits are 25/50. The UM section of your policy will pay which of the following amounts?
$43,000
The Commissioner must post a faithful performance bond in the sum of at least
$50,000
The following question relates to an HO-3 (Special) homeowners policy with Coverage A limits of $100,000. From the amounts listed below, choose the dollar limit automatically provided for the coverage limit described. The automatic limit for Coverage C.
$50,000
The maximum coverage for any one tree under a Homeowners policy is which of the following?
$500
Tom Bachelor has a $100,000 house with a $75,000 mortgage. He sets fire to the house and is convicted of arson. His $100,000 Homeowners policy will pay in which of the following ways?
$75,000 to the bank (bank never looses)
Your Personal Auto policy has a $200 collision deductible and a $100 comprehensive deductible. Your car is stolen, smashed into a tree and abandoned. The damage to your vehicle is $850. Your policy will pay which of the following amounts?
$750
Homeowners policies go into effect at which of the following times?
12:01 AM
As a license Producer, you must notify the Commissioner of a chance in business or residential address within how many days of the change?
30
In property insurance, which of the following would be classified as a hazard?
A dead tree close to an insured building
The Commissioner may grant a Temporary license to all of the following individual EXCEPT
A license applicant who is unable to sit for the license examination due to a permanent and total disability.
Which of the following would NOT be considered an insured under your Personal Auto policy?
A mechanic test driving your car
Coverage C of an unendorsed HO-5 could best be described as which of the following?
All risk coverage; ACV settlement
Which of the following persons would NOT be required to be licensed as a Producer?
An insurance company president whose responsibilities consist of management and administration of the company.
Charles is licensed as an Indiana resident Producer. His client asks him to look over a policy she currently owns and to recommend whether she is sufficiently covered. Charles examines her policy and runs a couple price comparisons. Later, Charles explains her policy to her and makes a presentation on a new policy through his company. Which of the following is true about this business transaction if she buys coverage through Charles?
Charles may receive a commission for the sale and a reasonable consulting fee from the client, if he followed the proper statutory procedures.
The Fair Credit Reporting Act states all the following EXCEPT
Companies that collect credit data may not sell that data to any other companies
what is not found on the dec page
Coverage territory
As a licensed Producer, all of the following transactions constitute controlled business EXCEPT
Coverage you place on friends.
You smash your car into a city traffic light. Which of the following coverages would pay the costs of repairing your car?
Damage To Your Auto (physical damage)
Polly Paranoia buys a $100,000 Homeowners policy and a $100,000 Dwelling policy to cover her $100,000 house. If she suffers a $20,000 loss covered by both policies, how will the policies pay
Each will pay $10,000 less its deductible
Joe is unable to purchase Homeowners coverage due to a negative investigative report. He has the right to appeal under which of the following?
Fair Credit Reporting Act
True or False: there is a test needed when transferring licenses from Ohio to Indiana
False
In a Personal Auto policy, Other Than Collision (Comprehensive) would insure against which of the following?
Fire, theft and glass breakage
Joe borrows Fran's car. Each has a Personal Auto policy. Joe has an accident in which he is responsible for $50,000 of bodily injury to a third party and $10,000 of property damage to Fran's car. Whose policy would pay for what damage?
Fran's policy would be primary for all of the damage
Fred and Barney are each insured under their own Personal Auto policy. If Fred is responsible for an accident while driving Barney's car with Barney's permission, all of the following are true EXCEPT
Fred's policy will be primary and Barney's policy will be excess.
Joe's house and all of his possessions are destroyed by an explosion when the pilot light in his gas furnace malfunctions. Which of the following is the minimum Homeowners form necessary to cover the damage?
HO-1
The homeowner policy covering the fewest perils which still provides full liability and Medical Payments coverage.
HO-1
The homeowners policy known as the Basic Form.
HO-1
Broad Form perils on both the dwelling and the contents.
HO-2
Bambi the deer shatters your glass patio door to gain entrance to your house. He bleeds on your wall-to-wall carpeting before exiting through your living room window. The minimum Homeowners form you should have to cover the damage described is which of the following?
HO-3
Special perils on the dwelling, Broad perils on the contents.
HO-3
For the Homeowners policies below, select the one most appropriate to the situation described below.A homeowner policy available to a condominium owner.
HO-4 or HO-6
All risk of physical loss to the dwelling and contents
HO-5
Bambi the deer shatters your glass patio door to gain entrance to your house. He bleeds on your wall-to-wall carpeting before exiting through your living room window. Bambi also bled on your couch. The minimum Homeowners form you should have to cover the damage described is which of the following?
HO-5
For the Homeowners policies below, select the one most appropriate to the situation described below.A homeowner wants coverage if his 5 year old accidentally spray paints the living room wall.
HO-5
______is true concerning the Insurance Commissioner's responsibility to examine insurance companies doing business in Indiana?
He must examine all admitted Indiana companies no less frequently than every 5 years.
Your Personal Auto policy's Bodily Injury and Property Damage Liability coverage would pay for which of the following?
Injury to a pedestrian caused by your car.
Which of the following is NOT a necessary element for the foundation of a contractual agreement?
Invitation to Make an Offer
what is true concerning the Supplementary Payments section of a Personal Auto Policy
It can pay for the defense of drivers not listed on the declarations sheet.
the following is true about the Indiana Guaranty Association
It pay claims which are unpaid as a result of the insolvency of a property and casualty insurance company
what is subject to the dollar limit under a Homeowners policy?
Jewelry is subject to a theft limit of $1500.
In a Property policy, which of the following causes of loss is covered by the Special Cause of Loss form but is NOT covered by the Broad Cause of Loss form?
Leaking storage battery
In a property insurance policy, which of the following clauses would automatically broaden your coverage under your policy if the issuing company were to grant these coverages to other insured for the same premium?
Liberalization
Even through Joe has a Major Medical policy through his employer and Auto Med Pay on his Personal Auto policy, you recommend that he purchase UMBI coverage. Why?
Neither Major Med nor Auto Med Pay will cover Joe's loss of earnings while he is injured.
what is NOT covered under the Supplementary Payments section of a Liability policy?
Pain and suffering
Which of the following has a broadest coverage?
Personal property floater
Which of the following coverages found in a Personal Auto policy do not have a stated policy limit?
Physical Damage
Which of the following is true concerning flood insurance policies?
Private companies sell the policies and the federal government provides the insurance.
You smash your car into a city-owned fire plug. Damage to the fire plug would be paid by which of the following auto coverages?
Property Damage
Which of the following is found in the Declarations section of a Homeowners policy
The amount of the insurance.
Bart owns a DP-2. You upgrade him to a DP-3. Which of the following does he now have that he did not have before?
The dwelling is covered on an open perils basis
Homeowners policies provide liability coverage for you and your resident family members under which of the following circumstances?
You ten-year-old son intentionally smashed a TV you borrowed from a neighbor.
Your auto is being driven by a person who is legally responsible for an accident. The liability section of your Personal Auto policy could provide coverage under all the following circumstances EXCEPT if the driver is
a garage mechanic test driving your car
Under the Indiana Unfair Claims Settlement Practices Act, a company must acknowledge your claim within how long?
a reasonable period
Insurance policies are unique contracts in the sense that only one party to the contract sets the terms and the other person must accept the terms on a "take it or leave it" basis. Such contracts are called contracts of?
adhesion
Jolene schedules her engagement ring on a personal property floater. An appraisal has been done by her family jeweler. The insurance company has promised to pay her that appraised value in the event of a loss. The valuation used for the ring is best described as
agreed value
A Personal Property Endorsement on a Homeowners policy can provide coverage which is all of the following EXCEPT
always subject to a deductible.
A state has auto financial responsibility laws requiring liability in a minimum amount of 25/50/25. A driver with limits of 15/30/7 who causes an accident would be considered to be
an uninsured driver
All of the following are defined as a "covered auto" in the Personal Auto policy EXCEPT
an unreported additional vehicle acquired 60 days ago
An HO policy would provide coverage for personal property
anywhere in the world
Betty and her insurance carrier cannot come to terms regarding a claim under Coverage C (Un and Under insured Motorists) of her personal auto policy. The policy condition requires that the next step in settling the disagreement be
arbitration
Joe is insured with an HO-3 and a Personal Auto policy. When his house catches fire, it destroys his garage, which is part of the same structure, and also destroys his car parked inside. Which of the following best describes the coverage for Joe's car?
auto only
The Commissioner could revoke your license for all of the following EXCEPT
being indicted on criminal charges
Joe's Auto Policy runs from January to June 30. His policy is terminated by his company on February 15. This is known as which of the following?
cancellation
Joe's house caves in due to weight of rain. His HO-2 would provide coverage for which of the following?
collapse
Which of the following could be covered under a Flood Insurance policy
contents
How frequently must you renew your resident Producer's license
every 2 years
The process by which the Commissioner is given the authority to inspect the financial affairs of any insurer doing business or proposing to do business in Indiana is called
examination
Medical Payments would pay for
funeral expenses
As a licensed Producer, you may do all of the following EXCEPT
hold a Consultant's license
is true concerning the Supplementary Payments section of a Personal Auto Policy?
it can pay for the defense of drivers not listed on the declarations sheet.
In Liability policies, the concept that an individual must conform to a generally agreed upon standard of care is called
legal duty
All of the following are defined as unfair methods of competition EXCEPT
lenders requiring debtors purchase insurance.
If you purchase a Personal Auto policy, you must buy which of the following coverages?
liability
In order to obtain an Indiana resident Producer's license, you must do all of the following EXCEPT
live in Indiana.
Flood insurance covers
mudflow
Joe hits 3 people in a pedestrian crosswalk. The first two are willing to settle with the company for $25,000 each. The third has not reached agreement with the company. Joe's Personal Auto policy has liability limits of $25/50/10 and Med Pay limits of $1,000/person. The third injured person will receive how much from Joe's policy
nothing
A duly (legally) licensed Producer may
offer advice for a fee and write coverage for the same client in the same transaction.
Fire Legal Liability covers losses to
real property
When the government first assumes operating control of a financially impaired insurance company, the process is called which of the following?
rehabilitation
Joe owns all six volumes of a collection of first edition works by a famous author. Should one of the volumes be destroyed by a covered peril, his HO insurance carrier will
replace lost text if possible
Flood insurance can be purchased to cover
residential dwellings, farm and commercial buildings
Under an HO Policy, which of the following would be covered under Section I, Property?
ridding a lawn mower
When Joe's car is totaled and his is paid its ACV, his company then takes what is left of the auto. The company is exercising its right of which of the following?
salvage
The name of the endorsement which would add liability coverage to a Dwelling policy is
the Personal Liability Endorsement
Under an HO policy, the insurer will only pay the ACV (not the replacement cost) for a damaged dwelling unless
the damaged property has actually been repaired or replaced
If you upgrade your policy from Named Perils to an Open perils form, what changeds
the number of exclusions increaces
All of the following are true about Transportation Expenses under a Personal Auto policy EXCEPT
this coverage does not apply if your car is stolen
Which of the following would best fit the description of a collision under a Personal Auto policy?
upset
