Practice Test Missed

Marine insurance may be utilized to write all the following types of risk EXCEPT

Furniture and fixtures

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?

Special

All of the following are true statements regarding the supplementary payments of a commercial general liability policy EXCEPT

They pay the defense costs even after the aggregate limit has been reached

Insurable interest in a property policy must be proven

At the time of loss

What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine policy

$10,000 for all expenses incurred during a 12-month period

Workers compensation rating is developed by applying a rating bureau job classification to each

$100 of payroll

Under the conditions of a Film Coverage Form, how long must the insured maintain records of each production?

3 years after the policy expires

Under the commercial crime coverage inside the premises - robbery or safe burglary of other property, what is the special per occurrence limit that applies to loss or damage to precious metals, precious and semiprecious stones, pearls, furs, manuscripts, drawings, or records?

$5,000

What is the required advance notice for a hearing held by the Commissioner of Insurance?

10 days

In split limit coverage in personal auto policies, which limit indicates the maximum amount the policy will pay for bodily injury per person?

1st limit

For reasons other than nonpayment of premium, how many days notice must an insurer give a policy owner before cancelling a homeowners policy?

20 days

If an insurance producer allows his license to lapse, within how many months of the due date of the continuation fee may the producer reinstate the license without having to pass a written examination?

24 months

With the exception of building or trade contracting employment, how many workers must an employer have before it has to provide Workers Compensation benefits?

3

Which of the following individuals would NOT be eligible for coverage under the Arkansas Automobile Assigned Risk Plan?

A driver whose license has been revoked after two DWI convictions

In the event of a loss covered by the policy, the insurer requests a signed proof of loss, the named insured is required to submit it within

A specified time

Which of the following would not be considered and "employee"?

A young boy Arnold pays to mow the grass around his real estate office

Which of the following types of valuation works best for property who's value does not fluctuate much?

Agree Value

Which of the following insurers must be members of the Rural Risk Underwriting Association in this state?

All insurers that write property insurance

Which would NOT be covered by the inside premises- robbery or safe burglary of other property coverage?

An employee is caught stealing cash from the register

Generally speaking, how soon must an employee report an injury to his or her employer?

As soon as reasonably possible

Which of the following is an additional coverage that is covered by the broad causes of loss form?

Collapse

A plasterer has finished a job. What kind of liability coverage would protect him if the plaster falls and hurts someone because he did not do the job correctly?

Completed Operations

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all the following elements EXCEPT

Conditions

A startup used car dealership buys cars at auto auctions in 30 states. It wants to be certain that damage coverage is provided when the cars are driven or transported from the auctions to the dealership. In regard to the business auto physical damage coverage, which is true?

Coverage is provided at additional premium

Which of the following is covered under the Mail floater of a Commercial Inland Marine policy ONLY if it is sent by registered mail?

Currency and unsold travelers checks

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT

Dividends from a mutual insurer

Directors and officers liability insurance defends actions against a corporation or its officers and directors alleging wrongful acts. With regard to the coverage provided, wrongful acts include any of the following EXCEPT

Embezzlement

What is the purpose of the coinsurance clause found in property insurance policies?

Encourage the insured to insure the property closer to its full value

All of the following are excluded in the equipment breakdown basic policy EXCEPT

Explosion of steam boilers

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?

Immediately report to an emergency room for medical examination

The proof of loss statement must be

In writing

Which of the following would be covered under the crime coverage inside the premises-theft of money and securities?

Loss or damage to a locked safe, vault, or cash register

The type of professional liability coverage a medical doctor needs is

Malpractice coverage

A failure to report insurance fraud to the Commissioner is considered a

Misdemeanor

Which of the following aircraft will NOT be covered by business liability insurance?

Owned watercraft 53 ft long

An insured has a liability policy that sets the amount for all claims that arise from a single incident at $50,000. Which type of liability does the insureds policy have?

Per occurrence

Which of the following limits, shown in the declarations of a policy, applies to medical expenses?

Per person

Which of the following is used in the formula for calculating the actual cash value of a property?

Replacement cost

If an Insurance company goes bankrupt, who is primarily responsible for providing an injured employee's Workers Compensation benefits?

The employer retains responsibility

Which of the following loses 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 the first time

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

The insured expects to extend operations to that state

What is the primary objective of worker's compensation?

The payment of benefits to employees for injuries arising out of their employment

Which of the following is covered under the theatrical property floater of an Inland Marine Policy?

Vehicle used on stage

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

Warranty

An advertising company has its annual holiday party for employees and customers, after which a customer who had too much to drink is involved in an auto accident. Occupants of the the other car involved sue the company for serving them too much to drink. Will the company's business owner policy provide coverage?

Yes, none of the exclusions will apply.

All of the following are conditions commonly found in the insurance policy EXCEPT

insuring agreement

The part of the insurance contract that describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured is called the

insuring agreement

For a contract to be enforceable by law, the purpose of the contract must be

legal and not against public policy

What insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk?

other insurance

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

penalty

When a direct chain of events resulting from a negligent act causes injury or damage, that act is consider to be the

proximate cause