Practice Test Questions

The limit of liability for "business personal property" will be automatically increased by ______ to provide for seasonal variation under a standard ISO Businessowners policy. -15% unless a different percentage amount is shown on the dec page -the current rate of inflation -25% -8%

-25%

The Business Auto form provides worldwide liability coverage for private passenger autos that the insured hires, leases, rents, or borrows, without a driver for a period of: -60 days or less -For up to 6 months -45 days or less -30 days or less

-30 days or less

The definition of an "uninsured vehicle" under the personal auto automobile policy does NOT include: -a car on which the liability has expired -a vehicle carrying liability insurance in an amount less than required by a state's financial responsibility law -a hit and run driver -an abandoned car used as a residence

-an abandoned car used as a residence

The type of bond that guarantees the owner that the bidder will enter into a contract and provide a Performance Bond if the bidder is awarded the contract is known as: -a payment bond -a bid bond -a completion bond -a labor and material bond

-a bid bond

Which of the following contractors would be eligible for coverage by a Businessowners policy? -a tree removal service -a general contractor -a roofing contractor -a carpenter doing all of his own work building kitchen cabinets in residential homes and earns 75,000 a year

-a carpenter doing all of his own work building kitchen cabinets in residential homes and earns 75,000 a year

The Home Day Care Coverage endorsement of the homeowners policy excludes coverage for all of the following EXCEPT: - an employee's negligent supervision of the children in the daycare -an employee of the insured, working in the daycare who hurts her back while picking up a child - injuries sustained by a child attending the daycare while riding a mule that the neighbor brought to the daycare -a child who is attending the daycare falls from the couch while watching TV and needs to be examined for a concussion

-a child who is attending the daycare falls from the couch while watching TV and needs to be examined for a concussion

All of the following are considered a "community" under the NFIP, Except: -a county -an incorporated city -a town -a village

-a county

All of the following are exclusions under the BAP, EXCEPT: -an employee causes PD while unloading a coach from a covered truck -injuries or damage arising from the use of a covered auto in a demolition derby -liability arising out of the operation of certain mobile equipment -an employee's injures that would be covered under WC insurance

-an employee causes PD while unloading a coach from a covered truck

Which of the following is covered under the farm broad cause of loss form, that is NOT covered under the farm basic cause of loss form? -collision -earthquake -accidental shooting of livestock -flood

-accidental shooting of livestock

Which of the following Commercial Inland Marine forms covers sums due to the insured from customers that are not collectible due to loss or damage of records? -valuable papers and records form -accounts receivable coverage form -electronic data processing form -billing coverage form

-accounts receivable coverage form

All of the following are covered perils of Ocean Marine policies, except: -lightning -wind -acts of war -earthquake

-acts of war

A manufacturing company is sending two US employees to Russia to discuss their products and visit a similar Russian manufacturing plant. What coverage would be needed for injuries the employees may incur in a work-related accident while abroad? -add the foreign coverage endorsement to the company's WC policy -purchase travel accident insurance -nothing, the WC coverage applicable in their home state would apply -federal insurance would apply while traveling to foreign countries

-add the foreign coverage endorsement to the company's WC policy

A farmer has committed libel against a neighboring farmer by stating that his dairy products are inferior to his own. That is an example of: -vicarious liability -bodily injury -contractual liability -advertising/personal injury

-advertising/personal injury

Under a surety bond, the Principal is the party that: -provides the bond in exchange for a fee -agrees to fulfill an obligation -will be paid damages if a default occurs -agrees to pay damages if default occurs

-agrees to fulfill an obligation

Under the occurrence form, the insurer is open to future claims for -60 days following the occurrence -for one year following the occurrence -for 30 days following the expiration of the policy -an indefinite period of time

-an indefinite period of time

Which Commercial Inland Marine form would be used by a frequent shipper of goods? -annual transit policy -motor truck cargo policy -trip transit policy -Commercial truck policy

-annual transit policy

Which of the following wound NOT be considered a Fiduciary bond? -appeal bond -administrator bond -executor bond -guardian bond

-appeal bond

Which of the following statements is correct regarding Crime insurance with Computer Fraud coverage? -covers losses that occur as the result of a messenger of the insured -does not provide coverage on a world wide basis -applies to acts of theft by employees -applies to criminal activity where the perpetrator gives false electronic instructions to remove the insured's funds from a bank account

-applies to criminal activity where the perpetrator gives false electronic instructions to remove the insured's funds from a bank account

The valuation condition of the commercial inland marine policy states that in the event of a loss, the value of the property will be determined: -as the amount a buy would be willing to pay for the salvage of the damaged property -as the value of the property at the time of the loss and will be the least of the acv, the cost to restore, or the cost of replacing with substantially identical property -as the amount it would cost to replace the item at today's prices -as the amount it cost when the insured purchased the property new

-as the value of the property at the time of the loss and will be the least of the acv, the cost to restore, or the cost of replacing with substantially identical property

With Ocean Marine insurance, the insured is referred to as the _______, and the insurer is referred to as the _________. -seaman, undertaker -assured, underwriter -assured, company -covered, underwriter

-assured, underwriter

Regarding Terrorism coverage, the insured may reject the coverage: -only at the policy expiration -at the policy inception or renewal -only at the policy inception -never

-at the policy inception or renewal

Which of the following names a person who takes possession of an insured's property temporarily, for a specific purpose, and then returns the property to the insured -bailee -thief -keeper in trust -trustee

-bailee

All of the following are eligible risks under the Businessowners policy, except: -barber shops -dental laboratories -bars and cocktail lounges -distributors of auto part and supplies

-bars and cocktail lounges

Coal miners who are rendered totally disabled by pneumoconiosis are covered under: -black lung benefits act -federal employers liability act -federal employees' compensation act -jones act

-black lung benefits act

Liability arising our of expected or intended injury is excluded on the CGL form. The exclusion does not apply if: -bodily injury resulting from a fall from an owned ladder -bodily injury resulting from attempted suicide -bodily injury resulting from using reasonable force to protect people or property -bodily injury resulting from an owned firearm

-bodily injury resulting from using reasonable force to protect people or property

All of the following are Supplementary Payments under the BAP, EXCEPT: -bonds to release attachments in any suit the insurer defends -loss of earnings up to $500 per day -reasonable expenses incurred by the insured -up to $2000 for the cost of bail bonds

-loss of earnings up to $500 per day

Farm Liability coverage includes each of the following, except: -personal injury and advertising injury -bodily injury and property damage -professional liability -medical payments to others

-professional liability

The DP-2 and DP-3 forms cover personal property against a direct loss from any cause while being removed from the premises that is being endangered by a peril insured against for no more than 120 days 60 days 5 days 30 days

120 days

If the insured purchases a new vehicle that is IN ADDITION to the vehicle shown on the Dec page of the ISO personal auto policy, he must ask the IC to insure the new vehicle within -6 months -1 week -30 days -14 days

14 days

Under the Coverage C-Personal Property section of the HO policy, how much coverage is provided on watercraft, including their trailers, furnishings, equipment and outboard motors? -15000 -1500 -2500 -5000

1500

Fire resistive construction materials have a fire resistance rating of: 30 minutes 3 hours 2 hours 1 hour

2 hours

Which of the following is the clause that declares that the insurance company is entitled to insured's right of recovery from a negligent party? -other insurance clause -subrogation clause -entire contract clause -other sources of recovery on insurance under two or more polices clause

subrogation clause

Which of the following is a type of insurer that may conduct business in a state without holding a certificate of authority? -surplus lines company -admitted company -authorized company -non-admitted company

surplus lines company

Which symbol under the Business Auto policy is used for autos that the insured has leased, hired, rented, or borrowed? -symbol 7 specifically described auto -symbol 8 hired auto only -symbol 9 non-owned -symbol 1 any auto

symbol 8

All the following are true regarding State Guaranty Associations, Except: -the association allows any admitted insurer to advertise that they are a member of the Guaranty Association -the association does not assess surplus lines companies for funding -the association covers the claims of admitted insurer who becomes insolvent -the association doesn't apply a maximum limit to workers com claims

the association allows any admitted insurer to advertise that they are a member of the Guaranty Association

Which of the following is a method for calculating acv using a combination of the fair market value and the cost of replacement, minus depreciation? the stated value rule actual cash value rule the broad evidence rule agreed value rule

the broad evidence rule

Under HO6 form, all of the following is covered under Coverage-A dwelling, except: -the new refrigerator that the insured purchased and placed in the residence premises -the condominium exterior structure, or the exterior of the structure -property that is the insured's responsibility under the property's owner's agreement -structures owned solely by the insured at the location of the residence premises

the condominium exterior structure, or the exterior of the structure

The coverage for non-owned trailers under the Part D coverage limit of the PAP is $1,500 $1,200 $2,500 $2,000

$1,500

Under the ISO commercial property forms, losses due to mold are subject to which of the following limits that would also be included in the limit of insurance on covered property? $15,000 $20,000 $10,000 $25,000

$15,000

Coverage C of the HO program will cover theft of firmarms up to a limit of: 200 3000 2500 1500

$2500

What is the most that will ever be paid for any one tree, shrub, or plant under the dwelling forms? $1,000 $500 10% of Coverage A 5% of Coverage C

$500`

An insured has a CGL policy with a $100,000 aggregate limit and a $25,000 per occurrence limit. The insured has a claim for $35,000 and a second claim for $20,000. What is the total amount of the aggregate limit remaining for the payment of future claims? -$35k -$55k -$45k -$20k

$55k

Damage to Premises rented to you is a separate coverage under the CGL policy and covers fire damage legal liability to: - real property rented to the named insured - real property owned by the named insured - personal property of the tenants of a building owned by the named insured - personal property owned by the named insured

- real property rented to the named insured

Under the CIM conditions, no one may take legal action against the insurer unless there has been full compliance with all the terms of the coverage part, and the action is brought within: -2 years of the insured having knowledge of the loss -2 years of the insurer having knowledge of the loss -3 years of the insurer having knowledge of the loss -3 years of the insured having knowledge of the loss

-2 years of the insured having knowledge of the loss

Coverage of goods in transit over land is usually provided by which of the following types of insurance? -Casualty -Inland Marine -Surety -Ocean Marine

Inland Marine

The Terrorism Risk Insurance Act program trigger for aggregate industry insurance will be _________ in 2020 and thereafter. -200 billion -200 million -160 million -180 million

-200 million

To be eligible for the personal watercraft policy, the insured watercraft must be used on inland or coastal water within: -12 miles of the shore or in the Great Lakes, but only when within the US and its territories, Puerto Rico, Canada -15 miles of the shore or in the Great Lakes, Within the US, Puerto Rico, Mexico, and Canada -the borders of the US -The borders of the US, Canada, Puerto Rico, and Mexico

-12 miles of the shore or in the Great Lakes, but only when within the US and its territories, Puerto Rico, Canada

The "maximum period of indemnity" option of the business income form, limits the period of indemnity to: -six months -90 days -60 days -120 days

-120 days

If the premium is not paid on an Ocean Marine policy, the underwriters have a right to cancel the policy by written notification to the assure at least _________ in advance. -45 days -30 days -60 days -15 days

-15 days

Coverage of earthquake and volcanic eruptions may ne attached to commercial property insurance forms. When the Earthquake cause of loss form is attached, a series of earthquakes or volcanic eruptions will be treated as single event, when the series of shock or eruptions occur within a: -24 hour period -48 hour period -96 hour period -168 hour period

-168 hour period

Under an Ocean Marine policy, if notice is not given to the underwriter within _________ days of an accident or occurrence being known to the assured, owners, or managers, no claim will be paid. -60 -90 -30 -180

-180 days

By January 1st 2006, the 85% federal share of compensation under the Act decreases by ________ percentage point, per calendar year until it is equal to 80% -1 -3 -2 -5

-1

Under the Loss Sustained Crime Insurance form, there is coverage while the policy is in force and for up to: -30 days after the policy expires -1 year after the policy expires -60 days after the policy expires -6 month after the policy expires

-1 year after the policy expires

In regards to WC insurance, which of the following experience modification factors would indicate that an insured has sustained a relatively high frequency and severity of losses in the recent past. -.75 -.95 -1.00 -1.25

-1.25

Under the Farm Dwellings, Appurtenant Structures, and Household Personal Property coverage form, there is a special limit that applies to loss or damage to outdoor radios and TV antennas and satellite dishes. The limit is part of, not in addition to, the Coverage A limit and is: -5000 per occurrence -500 per occurrence -1500 per occurrence -1000 per occurrence

-1000 per occurrence

Under the BAP extension, how much will the insurer pay for the temporary transportation expense incurred by the insured because of the total theft of a covered auto of the private passenger type? -20 per day maximum of 600 -25 per day maximum of 500 -25 per day maximum of 1000 -20 per day maximum of 800

-20 per day maximum of 600

The commercial building and personal property coverage form includes an additional coverage for "preservation of property" if the insured removes property from the premsies when endangered for a covered peril. The coverage lasts for: -60 days while the property is being moved and/or temporarily stored elsewhere -for six months after the property has been temporarily stored -30 days while the property is being moved and/or temporarily stored elsewhere -one year after the property has been temporarily stored.

-30 days while the property is being moved and/or temporarily stored elsewhere

Ocean Marine insurance policy premiums are due within_____ days of policy inception, unless some other period or payment option is specifically agreed to by the insurer or underwriters. -90 -45 -30 -60

-45 days

When a covered loss disables the insured watercraft, there is coverage for towing and assistance in the amount of: -500 for a single event, 1000 for the entire policy period -250 for single event, 1000 for the entire policy period -1000 for single event, 1500 for the entire policy period -0

-500 for single event, 1000 for the entire policy period

When coverage is provided under a business income form, the period of restoration begins: -24 hours after the direct damage -7 days after the direct damage -72 hours after the direct damage -immediately following the damage

-72 hours after the direct damage

All of the following are exclusions under the "Part Two: Employer's Liability" section of the standard WC policy, EXCEPT: -BI occurring outside of the US/its terriroties/Canada -BI claim submitted by an employee for an injury that was intentionally cause or aggravated by the covered employer -BI injury to an employee who was illegally employed -A BI claim summited by an employee for an injury that occurred during the policy period and was due to the employment

-A BI claim summited by an employee for an injury that occurred during the policy period and was due to the employment

The special cause of loss form for Farm insurance provides coverage for which of the following? -A farmer's cow that was riding in a trailer when it was struck by a truck and the cow was killed -A hen that the farmer gives to his adult daughter for her farm -A prize bull that disappears from the farmer's field one night -Cattle that the policy confiscate from the farmer because he has been injecting them with illegal hormones

-A farmer's cow that was riding in a trailer when it was struck by a truck and the cow was killed

Under the Farm Property coverage form with replacement cost coverage, after the first 1000, how is the claim paid? -ACV -ACV unless 80% of the value of the total loss is carried -ACV until repairs are completed and then the full replacement cost is paid -ACV until the proof of loss is sent to the insurer

-ACV until repairs are completed and then the full replacement cost is paid

Which of the following statements about ADRs is true? -ADRs are used after litigation has failed to settle the claim -ADRs are the first method used to negotiate a claim settlement -Alternative dispute resolution methods are used only after a court has ordered them -Alternative dispute resolution methods are used after negotiated settlement has failed

-Alternative dispute resolution methods are used after negotiated settlement has failed

Which of the following statements BEST describes the reason it was necessary to create a federal flood insurance program in 1968? -Because the US was experiencing more flooding than ever before -Because people were building their homes closer and closer to large bodies of water than ever before -Because other property policies routinely exclude flood from coverage -Because the flood insurance policies that were being issued at the time, did not provide adequate coverage for contents

-Because other property policies routinely exclude flood from coverage

With the passage of the Terrorism Risk Extension Act (TRIEA) of 2015, TRIA has been extended to: -Nov 26, 2020 -June 1, 2025 -December 31, 2020 -September 11, 2021

-December 31, 2020

Which of the following "Commercial Crime Insuring Agreements" would cover theft of currency? -Funds Transfer Fraud -Employee Theft -Debit Card Transfer Fund -Inside the Premises-Robbery of Safe Burglary

-Employee Theft

Under "Coverage E-Schedule Farm Property", on what basis is the property covered? -On a blanket basis -On a RC basis -For the agreed amount shown on the policy Dec page -On ACV basis

-For the agreed amount shown on the policy Dec page

Which of the following clauses means that the title to property in transit remains with the shipper until it arrives at the buyer's destination point and has been accepted by the buyer? -Free on Board Destination Point -Bill of Lading -Free on Board Shipping Point -Free on Board Transit

-Free on Board Destination Point

Which of the following are Common-Law duties of employers who fall outside the scope or WC laws? I. Provide a safe place to work II. Provide an adequate number of competent workers III. Warn of inherent dangers IV. Enforce Safety rules for all workers -I, II, IV -I only -I, II, III, IV -I, II, III only

-I, II, III, IV

Under the ISO Personal Automobile policy, the definition of a "covered auto" for Coverage A-Liability includes: I. Private passenger autos the named insured acquires during the policy period II. Trailers owned by the named insured III. Autos or trailers not owned by the named insured that are being used as a temporary substitute IV. Farm wagons or implements towed by a covered vehicle -II and III only -I, II, and III only -I and II only -I, II, III, and IV

-I, II, III, and IV

Which of the following would be covered under a Garage policy with Comprehensive and Collison coverages for covered auto? I. Hail damage to ta 4door van II. Damage when paint is accidently spilled on a covered truck III. Fender damage when a covered sports car hits a steel post IV. Damage to a covered auto caused by a customer vehicle -I, II, and III -I, II, III, and IV -I, and II only -III and IV only

-I, II, III, and IV

Which of the following violates the standards for claim denial and is, therefore, considered an unfair claim settlement practice? I. Denying a claim without informing the insured of the policy provisions that provides the basis for the denial II. Making a claim payment to the insured or beneficiaries, not accompanied by a statement setting forth the coverage under which payments are being made III. Attempting to settle claims on the basis of an application that was altered without notice to, or the knowledge of, the insured -I and II only -I and III only -I, II, and III -I only

-I, II, and III

Which of the following Crime Endorsements affect Employee Theft coverage? I. Name or Position schedule II. Client's property III. Forgery IV. Safe Depository -I, II, and IV only -I and III only -I, II, III, and IV -1500

-I, II, and IV only

Acts of terrorism must be certified by: I. Secretary of the Treasury; II. The Secretary of State; III. The Secretary of Homeland Security; IV. The US Attorney General -I, II, III and IV -I, III, and IV only -I and IV only -I, II, and IV only

-I, III, and IV only

Which of the following are Common-Law defenses of employers: I. Assumption of Risk II. Transference of Rick III. Comparative or Contributory Negligence IV. Negligence of a Fellow Worker -I. III, and IV only -I, II, and III only -I and II only -I, II, III, and IV

-I. III, and IV only

Which of the Commercial Inland Marine floaters would cover equipment sold by the insured that is being transported to another location and installed before the customer accepts it? -installation coverage -transit coverage -contractor's equipment -commercial articles

-Installation coverage

Manfred's Masonry is covered by a standard WC policy. One day Manfred is looking through his policy and he sees policy limit listed. He begins to worry that his employee's indemnity benefits will not be paid b/c of these limits. Which of the following statements is TRUE about Manfred's worries? -Manfred's worries are understandable if the indemnity benefits being paid to his injured employees is higher than the limits expressed in the policy -Manfred must be mistaken because there is no policy limits listed anywhere on a standard NCCI WC policy -Manfred should not worry, his agent knows how to set the limits in his policy to cover all of the indemnity benefits being paid -Manfred's worries are unfounded because the only liability limits shown in a WC are for Part Two: Employer's Liability

-Manfred's worries are unfounded because the only liability limits shown in a WC are for Part Two: Employer's Liability

Which of the following would NOT be excluded under the Liquor Liability exclusion of the CGL policy? -Mary's Antique Shop while having a customer appreciation day and serves alcohol at no charge to her guests -The Winking Lizard Restaurant that serves alcohol to an already intoxicated person -Murray's Beer Emporium while having a wine tasting -John's bar that serves alcohol to an underage customer

-Mary's Antique Shop while having a customer appreciation day and serves alcohol at no charge to her guests this is covered because she is not a manufacturer of alcohol

The Unfair Claims Settlement Practice Act was created and published by: -National Association of Insurance Commissioners (NAIC) -United States Department of Labor -National Association of Insurance Professionals (NAIP) -The United States Department of Justice

-National Association of Insurance Commissioners (NAIC)

Which of the following is the governing body for WC in states that allow private insurers to issue policies? -federal government -state governments -National Council on Compensation Insurance (NCCI) -National Institute of Insurance Commissioners (NIIC)

-National Council on Compensation Insurance (NCCI)

Which section of the NCCI policy applies to BI by accident, or BI to disease, including death? -Part one: WC insurance -Part two: employers liability -Part six: conditions -Part four: duties if injury occurs

-Part one: WC insurance

Which of the following statements is correct regarding the limits of coverage under the Businessowners Liability coverage? -The BOP section provides for split-limits of liability coverage -The BOP only provides only provides a per occurrence limit -The BOP contains two aggregate limits, one for Premises and Operations Liability and one for Products and Completed Liability. The coverage also has a per occurrence limit -The BOP policy only provides aggregate limits of coverage

-The BOP contains two aggregate limits, one for Premises and Operations Liability and one for Products and Completed Liability. The coverage also has a per occurrence limit

The insured carries a standard Yacht policy on his vessel registered in Florida. One of the crew members is injured while performing a work-related task on the yacht while sailing off the coast of Italy. Which of the following coverage would be respond to the crew member's injuries? -Liability coverage -Hull coverage -Medical Payments coverage -The Jones Act

-The Jones Act

All of the following statements are TRUE regarding the coverage of appurtenant structures covered by NFIP policy, EXCEPT: -The dwelling coverage form under the NFIP provides up to 10% of the building coverage limit for appurtenant structures as an additional amount of insurance -they must be located in an eligible community -the dwelling coverage form under the NFIP provides up to 10% of the building coverage limit for appurtenant structures but the coverage reduces the total amount of building coverage available -the only appurtenant structure covered under the NFIP is a detached garage

-The dwelling coverage form under the NFIP provides up to 10% of the building coverage limit for appurtenant structures as an additional amount of insurance

Which of the following statements about WC insurance is correct? -WC insurance is the exclusive remedy for covered worker -WC coverage is identical in all states -Every state WC plans provides coverage in other states -One of the benefits paid through WC insurance is for pain/suffering

-WC insurance is the exclusive remedy for covered worker

Would a claim for an employee who is temporarily on business in France, be cover under Part Two: Employer's Liability of the standard WC policy? -Yes, b/c the employee was only outside of the US/Canada temporarily -No, b/c the employee was outside the covered state/territory -No, b/c Employee's Liability only reponds to claims occurring in the US -Yes, but only if the employer had coverage in France

-Yes, b/c the employee was only outside of the US/Canada temporarily

On what basis is a Hull policy written, if the full policy amount is paid in the event of a total loss? -valued basis -unvalued basis -blanket basis -agreed value basis

-value basis

Pollution coverage is normally excluded under the Business Auto policy. Under which of the following circumstances would pollution coverage apply without endorsement> -the insured is hauling pollutants for other and has an accident causing the pollutants to spill onto farm property adjacent to the highway where the accident occurred -a covered truck has an accident and pollution is caused by gas escaping from the gas tank -a covered truck has been gradually leaking pollutants -a covered truck is hauling pollutants and an accident occurs, causing the tank carrying the pollutant to break open and spill

-a covered truck has an accident and pollution is caused by gas escaping from the gas tank

Which of the following CANNOT be covered under a Businessowners policy? -a credit union -an office building -an apartment building -a small gift shop

-a credit union

Each of the following is a coverage option under the business income form, EXCEPT: -the coinsurance clause -a deductible -a maximum period of indemnity -a monthly limit of indemnity

-a deductible

Under 18 USC 1033, Insurance Fraud and False Statements an insurance professional is convicted of overvaluing some property in a financial statement, that he or she submitted to an insurance regulatory official in their state. What penalty may be levied against this professional? -imprisonment for up to 10 years -imprisonment for up to 15 years -a fine and/or imprisonment for up to 15 years -a fine and/or imprisonment for up to 10 years

-a fine and/or imprisonment for up to 10 years

An insurance professional, who has been convicted of any criminal felony involving dishonesty, or a breach of trust, may be subject to: -a fine of up to 50K -a fine and/or imprisonment up to 5 years -a fine and/or imprisonment up to 10 years -imprisonment for up to 15 years

-a fine and/or imprisonment up to 5 years

Which of the following is NOT considered a covered auto under the personal automobile policy? -a large truck used in any business on a fulltime basis -a newly acquired vehicle -a vehicle leased for six months or more -a temporary substitute vehicle when the insured's vehicle needs repairs

-a large truck used in any business on a fulltime basis

Crime insurance terminology refers to an employee of the company, having custody of insured property off the insured premises, as: -a messenger -a scheduled executive -a custodian -an insured property executive

-a messenger

The aircraft physical damage (hull) deductible is normally expressed as: -a franchise deductible that applies only when the minimum value of the loss specified in the policy is reached -a percentage of the value of the aircraft -a flat deductible selected by the insured at policy inception -a disappearing deductible that gradually reduces the amount as the aircraft depreciates

-a percentage of the value of the aircraft

In which of the following situations would an insured's Personal Automobile Policy Liability coverage provide excess coverage? -a person drives his car into Canada -a person borrows a friend's vehicle to travel to the airport -a person transports people in his vehicle from the airport to nearly hotels for a free -a person uses his car to transport his coworkers

-a person borrows a friend's vehicle to travel to the airport

The phrase, Diminution in value, refers to: -the difference between the market value of an automobile before and after it has been involved in an accident -a reduction in the market value of an auto after repair have been complete -a reduction in the market value of an auto after it has been involved in an accident -the difference between the market value of an auto after it has been involved in an accident and after the repair have been made

-a reduction in the market value of an auto after repair have been complete

Which of the following vehicles is considered a covered auto under a personal automobile policy? -a replacement car purchased by the insured three days ago but not yet reported to the insurance company -the insured's atv with three wheels -a company car provided to he insured's by an employer -a vehicle used by the insured to transport passengers to and from the airport for a fee

-a replacement car purchased by the insured three days ago but not yet reported to the insurance company

The Medical Payments coverage of the standard Yacht policy will provide coverage for all the following, except: -an aquaplaning accident -a snorkeling accident -a scuba diving accident -a water skiing accident

-a scuba diving accident

All of the following may be covered under the watercraft endorsement of the homeowners policy except: -a sailing vessel being used in a predicted log cruise -a boat powered by an outboard motor that is more than 25 total horsepower -a speed boat used to compete in races each summer -a sailboat with auxiliary power that is more than 26 feet in length

-a speed boat used to compete in races each summer

Which of the following would be covered for physical damage under an Aviation policy? -operation of the aircraft by pilots not named on the dec page -an aircraft requiring a special waiver even if it is issued by the Federal Aviation Administration -Planes flown out of the coverage territory -a temporary substitute aircraft

-a temporary substitute aircraft

Which of the following would be covered for physical damage under an aviation policy? -an aircraft requiring a special waiver even if it is issued by the FAA -operation of the aircraft by pilots not named on the dec page -a temporary substitute aircraft -planes flown out of the coverage territory

-a temporary substitute aircraft

Under the CGL policy, which of the following would be included under the definition of a personal injury? -an individual fired from her job sues her employer for unemployment benefits -a tenant, evicted by his landlord, sues the landlord for invasion of privacy and wrongful eviction -a customer injured in a department store when a sign falls on her and she sues the store for medical costs, pain, and suffering? -an employee injured lifting a heavy carton, sues his employer for costs

-a tenant, evicted by his landlord, sues the landlord for invasion of privacy and wrongful eviction

All of the following are duties of the insured in case of a claim under a commercial inland marine policy, except: -promptly send the insured any legal papers or notices received concerning the loss -give the insurer prompt notice of the loss -abandon the damaged property to the insurer -protect the property from further loss (mitigate the loss)

-abandon the damaged property to the insurer

Which of the following types of losses will NOT be excluded by the CGL policy of Ace Building and Material Company -bodily injury to an employee driving a forklift -bodily injury to a customer arising out of a forklift being used by the insured -property damage caused to the water system when a forklift dropped a drum of caustic chemicals owned by the insured -damage to a forklift owned by others that was in the custody of the insured

-bodily injury to a customer arising out of a forklift being used by the insured

The physical description of the scene of an accident will be located in which of the following parts of a witness statement? -introduction -conclusion -body -closing

-body

Loose cargo, such as cartons, stored directly in the ship's hold is known as: -containerization -hold shipments -break bulk -bulk shipments

-break bulk

Which of the following losses would be covered under a Crime insurance policy's inside the premises-robbery or sage burglary of other property coverage? -fire damage to the insured building that is caused by the insured -broken windows and damage to the door -theft of money and securities -vandalism to a trailer on the insured's premises caused by a burglar

-broken windows and damage to the door

Shipments that are not packaged, but are load directly into the vessel's hold are known as: -bulk shipments -break bulk -hold shipments -containerization

-bulk shipments

Robbery involves all of the following, except: -presence of the insured -threat of violence -burglary criminal intent

-burglary

The forcible entry into locked premised and the carrying away of property belonging to others is part of the definition of: -mysterious disappearance -robbery -theft -burglary

-burglary

The "Limited Mexico" endorsement -can provide limited excess coverage over valid Mexican insurance for auto used within 25 miles of the Mexican/us border -can cover Mexican citizens who have valid insurance through a Mexican insurance carrier and are using the vehicle within 25 miles of the Mexican/us border -covers automobiles manufactured in Mexico that are being transported to the US for sale -can provide personal automobile coverage for automobiles being driven in Mexico

-can provide limited excess coverage over valid Mexican insurance for auto used within 25 miles of the Mexican/us border

Office buildings covered under the Businessowners policy: -cannot exceed 50,000 sq feet, no matter the number of stories -cannot be more than 6 stories high and contain no more than 100,000 sq feet -cannot be more than 3 stories high, and contain no more than 50,000 sq feet -cannot be more than 3 stories high, and contain no more than 35,000 sq feet

-cannot be more than 6 stories high and contain no more than 100,000 sq feet

Which of the following protects against legal liability for loss or damage to baggage? -aircraft hull coverage -hangarkeeper's liability coverage -aircraft liability coverage -cargo liability coverage

-cargo liability coverage

Underinsured Motorist coverage provides coverage for the insured when involved in an accident with a driver who: -does not own the vehicle that was involved in the accident -is not a licensed driver -carries no automobile insurance to pay the claim -carries the legal limits of auto liability insurance for the state, but that limit is not sufficient to pay the claim

-carries the legal limits of auto liability insurance for the state, but that limit is not sufficient to pay the claim

The transportation/permission to move endorsement form provides coverage for all of the following EXCEPT: -upset of the mobile home while attempting to transport -stranding or sinking of the mobile home while being transported on a licensed ferry -collision with the transporting vehicle -collision with another vehicle while transporting

-collision with the transporting vehicle

All of the following are types of claims releases, except: -full release -walkaway -contested release -scheduled release

-contested release

All of the following coverages are automatically included in the BOP, EXCEPT: -general liability coverage -seasonal increase in contents coverage -loss of income -coverage for employee dishonesty

-coverage for employee dishonesty

Under the protective safeguards endorsement of BOP, what will happen if the insured fails to advise the IC that the insured's sprinkler system is inoperative beyond a 48-hour period? -the policy will be cancelled by the insurer for violation of a warranty -smoke damage is excluded -the insured will be billed an additional premium -coverage for fire losses will be excluded

-coverage for fire losses will be excluded

All of the following are excluded under the commercial inland marine policy, except: -customer's property that is in the care, custody, and control of the insured and it is destroyed by an electrical fire in the building -damage to the property by insects or vermin -property lost due to the insured being the victim of a fraudulent scheme by another party -wear and tear of the covered property

-customer's property that is in the care, custody, and control of the insured and it is destroyed by an electrical fire in the building

Ocean Marin Protection and Indemnity coverage provides coverage for all of the following, except: -marine legal liability on the assured arising out of the operation of a vessel -cargo if lost or damaged through negligence -damage to another vessel caused by a collision -injuries to stevedores, longshoremen, and harbor workers

-damage to another vessel caused by a collision

Which of the following is actually a lawsuit that seeks determination of whether or not policy coverage applies to a claim? -mediation -declaratory judgment -reservation of rights -arbitration

-declaratory judgment

A furrier is covered under a Dealer's form and he is storing a very expensive fur coat for Mrs. Wilson in his warehouse. A woman comes into the warehouse saying she is Mrs. Wilson's daughter and she was sent to pick up the coat. The furrier allows the woman to take the coat without asking for her receipt. A month later, Mrs. Wilson comes in to pick up her coat and it is determined that the furrier was tricked into giving the other woman the coat. The IC will: -deny the claim as this is an exclusion -pay only part of the claim b/c the furrier didn't follow security measures -pay the full amount to replace the fur coat as this is a covered claim -cancel the furrier's insurance policy but use the previously paid premium to pay the claim

-deny the claim as this is an exclusion

The insured's jewelry store is covered under a jewelers block policy. The insured allows a woman representing a charity, to take a piece of jewelry out of the case and wear it to the benefit ball. While at the ball, the jewelry disappears. The IC will: -require that evidence be provide that the woman was modeling the jewelry before paying the claim -pay only 50% of the claim b/c the jewelry left the insured premises -deny the claim due to an exclusion to the policy -pay the claim

-deny the claim due to an exclusion to the policy

All of the following are considered to be unfair claim settlement practices, except: -failing to acknowledge and act promptly upon communications relating to claims -denying a claim after evidence of fraud on the part of the insured was found during the claims investigation -refusing to pay claims, even though an investigation has not yet been conducted -misrepresenting facts or policy provisions in settling claims

-denying a claim after evidence of fraud on the part of the insured was found during the claims investigation

The four major Ocean marine policies include all of the following except: -deviation in voyage coverage -hull coverage -cargo coverage -protection and indemnity coverage

-deviation in voyage coverage

A policy report would fall under which of the following types of evidence? -oral -demonstrative -real -documentary

-documentary

The electronic data processing floater will cover all of the following, except: -digital records -computer hardware -computer software -documents that have been printed from the computer

-documents that have been printed from the computer

All of the following are true about a jewelers block policy, expect: -may cover the theft of money from locked safes or vaults on the insured premises -does not include any coverage for theft or stock from show windows -excludes unexplained disappearance -antique or historical value is not considered in the value of the property

-does not include any coverage for theft or stock from show windows

Which of the following endorsements can be used under the BAP to extend coverage to individuals such as the owner of the business who does not carry Personal Auto insurance? -all drivers covered endorsement -drive other car endorsement -drive away liability endorsement -named non-owned auto endorsement

-drive other car endorsement

Which of the following is true regarding theft coverage under a dwelling policy? -The DP-2 and DP-3 policies provide theft coverage, but the coverage must be added by endorsement to the DP-1 -Dwelling policies provide theft coverage on personal property of the insured -dwelling policies do not provide theft coverage unless it is added by endorsement -dwelling policies provide limited theft coverage and broad theft coverage can be added by endorsement

-dwelling policies do not provide theft coverage unless it is added by endorsement

Which of the following is TRUE regarding a written witness statement? -while the statement is being taken by the claims adjuster, a disinterested third party must witness it -no less than two representatives from the IC must be present when the statement is taken -each page of the statement should be signed and witnessed -it must be notarized after the witness has signed it

-each page of the statement should be signed and witnessed

All of the following are perils covered under the Farm Property Basic Cause of Loss form, Except: -sinkhole collapse -explosion -earthquake or flood loss to livestock -earthquake damage to the dwelling

-earthquake damage to the dwelling

All of the following would be excluded under the Physical Damage covered of the BAP, EXCEPT: -a gps system that is broken when the driver slams on the brakes to avoid an accident -electronic equipment that is necessary to operate a vehicle -a leather seat that tears open due to years of use -a tire that blows out after picking up a nail at a construction site

-electronic equipment that is necessary to operate a vehicle

One of the purposes of coinsurance is to -encourage the insured to maintain insurance on the property for most, if not all of its value -require the insurance company to pay all losses in full -allow the insured to choose any amount of coverage -permit other insurance on the same property

-encourage the insured to maintain insurance on the property for most, if not all of its value

When a protective safeguard endorsement is attached to a commercial property policy, it: -protects the IC from paying a claim if an insured failed to take proper safety precautions -encourages property owners to maintain their safety systems such as sprinklers or burglar alarms -pays to install sprinklers and security systems to newly insured property -pays proceeds to any who experienced bodily injury due to improperly functioning safety systems of the insured

-encourages property owners to maintain their safety systems such as sprinklers or burglar alarms

Which of the following is required to calculate the estimated annual premium in a WC policy? -number of estimated overtime hours -estimated annual gross income -number of employees and their job descriptions -estimated annual payroll and work classification(s)

-estimated annual payroll and work classification(s)

All of the following are types of "Court or Litigation" bonds (sometimes called Financial Guarantee bonds), EXCEPT: -injunction bond -appeal bond -bail bond -executor bond

-executor bond

Premiums in a WC policy include an adjustment, up or down, based upon how the employee's actual loss experience compares to that expected of employers that perform similar work. What is the name of the factor that is used to calculate this adjustment? -loss ratio adjustment factor -scheduled rating factor -experience modification factor -loss constant

-experience modification factor

When a replacement policy is purchased, the Extended Period to Discover endorsement: -will expire within 30 days of the effective date of the replacement policy -will expire with 6 months of the effective date of the replacement policy -expires immediately -expires within 10 days

-expires immediately

Maritime workers and their dependents are covered under: -longshore and harbor WC act (LHWCA) -jones act -federal employees' compensation act (FECA) -federal employers liability act (FELA)

-longshore and harbor WC act (LHWCA)

On what basis are most cargo policies written? -blanket basis -valued basis -agreed value basis -state value basis

-valued basis

All of the following are unfair claim settlement practices, except: -misrepresenting pertinent facts or insurance policy provisions relating to the coverage at issue -failing to affirm or deny coverage of claims within a reasonable time after proof of loss statements have been completed -failing to pay a claim that was not covered under the policy -making claims payments to insured or beneficiaries not accompanied by a statement setting forth the coverage under which payments are being made

-failing to pay a claim that was not covered under the policy

All of the following are covered under the commercial property basic cause of loss form, EXCEPT: -vandalism -fire -falling objects -windstorm/hail

-falling objects

What is the definition of "custom farming"? -raising genetically modified cropped -share cropping -raising specialty crops for sale -farming for others

-farming for others

Which of the following covers railroads and their employees? -federal employers liability act -jones act -black lung benefits act -federal employees' compensation act

-federal employers liability act

Which of the following would be considered serious and willful misconduct on the part of the employer, EXCEPT: -firing an employee for working while under the influence of intoxicants -discharging, coercing, or otherwise discrimination against any employee in violation of the WC law -failing to comply with a health or safety law/regulation -knowingly employing a worker in violation of law

-firing an employee for working while under the influence of intoxicants

Difference in conditions, also known as wrap insurance, is usually written to cover: -weight of snow and ice -vandalism -flood or earthquake with very high deductibles -loss of market

-flood or earthquake with very high deductibles

A business located adjacent to an insured's business is damaged by fire. Because of the damage to the adjoining property, the insured is denied access to his business by the fire department. The insured's Commercial Policy contains a "business income" coverage form as part of the entire contract, therefore, the insurance company will cover the loss of business income: -for a maximum of six months -for a maximum of 60 days -for a maximum of 4 weeks -for a maximum of 30 days

-for a maximum of 4 weeks

Which of the following would be covered under the Mobile Equipment Endorsement attached to the Business Auto policy? -company car -motorcycle -fork lift -company truck with a snow plow attached

-fork lift

Which is the type of release that the adjuster hopes to achieve? -scheduled payment release -walkaway -full release settlement -advanced payment

-full release settlement

Which of the following is the adjuster report that documents the results of the investigation that contains all the facts, evidence, and the disposition of the claim? -field report -full report -settlement report -interim report

-full report

All of the following are exclusions under the ISO personal auto coverage B med pay, except: -an injury sustained while transporting people from the airport to their hotel for a fee -an accident caused by insured's employee who is covered by WC -an injury resulting from a motorcycle accident -funeral expense for the insured's family member within 3 years of the auto accident

-funeral expense for the insured's family member within 3 years of the auto accident

The Businessowners policy is designed to cover all of the following, EXCEPT: -an office complex with 7,500 sq feet in total floor area -gas stations -medium-sized clothing stores -small apartment houses

-gas stations

An insured purchases a BAP policy and selects the Specified Causes of Loss option for physical damage coverage. The insured can expect that all of the following will be covered, except: -a flood destroys the covered auto -thieves break into the car and cut the leather seats -hail causes damage to the covered auto -glass is broken by a branch that fell on the covered auto

-glass is broken by a branch that fell on the covered auto

A company that repairs customers' aircraft may need which of the following coverages to pay for the accidental damage to the customers' aircraft while it is in the insured's care, custody, or control? -hangarkeeper's liability coverage -airport liability coverage -bailee's liability coverage -aircraft physical damage coverage

-hangarkeeper's liability coverage

Protection and Indemnity coverage can be written as a separate policy, but is most often attached to: -freight policy -cargo policy -warehouse to warehouse coverage -hull policy

-hull policy

All of the following are included on a written witness statement, except: -the date, time, and location of the accident and/or injury -identification of the date, time, and the location where the statement was taken -identification of the negligent party in the accident -identification of the vehicle if the claim involved a motor vehicle

-identification of the negligent party in the accident

Under the ISO Personal Automobile policy, the "Supplementary Payments" coverage is: -not available under the personal auto policy -added by endorsement -included in the limit of liability -in addition to the limit of liability

-in addition to the limit of liability

Which of the following clause can be attached to Hull, Cargo, or Freight policies to provide coverage for loses caused by the bursting of boilers, breaking of shafts, or any latent defects of the vessel? -equipment breakdown clause -inchmaree clause -warehouse to warehouse clause -sistership clause

-inchmaree clause

All of the following are TRUE regarding the permitted incidental Occupancies (Residence Premises) endorsement form EXCEPT: -includes coverage for "bodily injury" to any "employee" arising out of the business described in the endorsement schedule -allows the insured to schedule a specific amount of coverage for an "other structure" to be used on the residence premises to conduct business -provides liability and medical payments coverage for necessary and incidental use of the premises for the business described -increases the coverage for on-premises business furnishings, supplies and equipment

-includes coverage for "bodily injury" to any "employee" arising out of the business described in the endorsement schedule

Which of the following forms has been discontinued by ISO, but is still being covered on the state licensing exam? -garage form -motor carrier form -truckers form -semi-driver form

-truckers form

Which of the following describes the Out of State coverage extension of the BAP: -list the states where the covered auto can be driven and still be covered -describes the limit of liability that will be paid on any out of state accident, regardless of the financial responsibility laws of the state where the accident occurred -increases the limit of liability coverage to meet the limits specified by compulsory or financial responsibility laws of the state where the covered auto is being used -sets the limit that will be paid on bail bonds for out of state traffic violations

-increases the limit of liability coverage to meet the limits specified by compulsory or financial responsibility laws of the state where the covered auto is being used

Under the BAP, which of the following endorsements can be used to add family members to the policy? -family blanket endorsements -additional family member endorsement -drive other car endorsement -individual named insured endorsement

-individual named insured endorsement

Which of the following commercial property endorsements automatically increases amount stated on the dec page? -peak season endorsement -inflation guard endorsement -protective safeguard endorsement -difference in conditions (wrap insurance) endorsement

-inflation guard endorsement

Which of the following would be covered under the liability coverage section of the Garage policy? -damage to property the insured is transporting to another location -the use of covered auto leased to another party except as a replacement for a car under repair -injury or damage arising out of a fishing boat the named insured stored in his garage -covered autos used in organized racing

-injury or damage arising out of a fishing boat the named insured stored in his garage

Which of the following Commercial Inland Marine floaters would cover a marble counter top being transported and installed in a customer's home? -installation coverage -contractor's equipment coverage -accounts receivable coverage -commercial articles

-installation coverage

The burden to prove that the claim submitted is excluded by the insurance policy, lies with: -appraiser -insured -insurance company/adjuster -arbitrator

-insurance company/adjuster

The Motor Carrier endorsement form MSC-90 is used to: -increase the amount of certain hazardous substances that can be transported -determine who is qualified driver for transporting certain hazardous substances -insure that the vehicle has pollution coverage and at the correct limits -increase the limit of insurance for pollution liability

-insure that the vehicle has pollution coverage and at the correct limits

The responsibility to obtain estimates to repair or replace the damaged property that is being claimed belongs to: -insurance company -insured -manufacturer of the property -adjuster

-insured

Most aircraft physical damage (hull) policies are settled on a: -acv basis -rc basis -insured value basis -market value basis

-insured value basis

Insurer's who subrogate against a third party on an automobile partial loss claim, much include ________ in the demand. -insured's deductible -an amount to purchase a new vehicle for the insured -the price of the vehicle from the official used care guide -an amount to cover the inconvenience of subrogation

-insured's deductible

All of the following are true regarding the "Write Your Own" program of the NFIP, Except: -insurers are required to participate in the program -the WYO program operates as part of the NFIP and is subject to its rules and regulations -rates are determined by the NFIP -insurers participating in the NFIP are responsible for adjusting the claims

-insurers are required to participate in the program

Which of the following is NOT covered under the Personal Auto policy? -intentional acts -the car's onboard computer system -a temporary substitute vehicle when the insured's vehicle needs repairs -the spare tire and jack

-intentional acts

All of the following is true about Businessowners policy, EXCEPT: -provides RC loss settlement and open perils protection -automatically includes business income and extra expense coverage -it is specifically designed to meet the needs of large business -ACV and named peril coverage are available by endorsement

-it is specifically designed to meet the needs of large business

The voluntary act of destruction in which cargo is thrown overboard in order to save the ship or crew, is know as: -barratry -pilotage -jettison -sue and labor clause

-jettison

A jewelry store that sells very expensive and rare jewels would need coverage under which of the following commercial inland marine forms? -drycleaners coverage -equipment dealers coverage -fur dealers coverage -jewelers block coverage

-jewelers block coverage

All of the following are covered under a Jewelers Block policy except: -the insured's stock in precious metals -jewelry that is sold but has not been delivered to the purchaser -jewelry that has been sold under a deferred sales payment agreement after it leaves the insured premises -the insured's stock in precious and semi-precious stones

-jewelry that has been sold under a deferred sales payment agreement after it leaves the insured premises

Which of the following acts is also known as the Merchant Marine Act of 1920 and allows maritime workers to sue their employers for negligence that results in injury or death? -federal employees' compensation act (FECA) -longshore and harbor workers' compensation act (LHWCA) -jones act -federal employers liability act (FELA)

-jones act

Aircraft liability coverage is very similar to auto insurance coverage with which of following exceptions? -doesn't apply to the property damages to others -usually written with a deductible -cannot exclude passenger liability -liability to passengers is treated as a separate exposure

-liability to passengers is treated as a separate exposure

Which of the following bonds is required by the government for certain types of businesses to be permitted to offer products or services to the public? -license and permit bonds -injunction bonds -replevin bond -attachment bond

-license and permit bonds

The Information page of the standardized WC policy includes all of the following, EXCEPT: -policy period dates -location of the workplace(s) covered -mailing address of the first named insured -employer's liability limits

-location of the workplace(s) covered

All of the following are exclusions under the Commercial Crime policy, EXCEPT: -legal expenses, except as provided under Forgery or Alteration coverage -loss of money resulting directly from theft by employees -indirect or consequential losses -nuclear hazard

-loss of money resulting directly from theft by employees

Which of the following statements is CORRECT regarding how the NFIP will reimburse the insured for "loss of use"? -loss of use is reimbursed to the insured for the total amount only after the flood property has been restored -after a 3day waiting period, the insurer will provide the insured up to 175 per day -the maximum limit is 2500 after a waiting period of 14 days -loss of use is not covered by the NFIP

-loss of use is not covered by the NFIP

Under a Business Auto policy, which of the following types of physical damage loss is NOT covered? -loss to radar detection equipment -collision with an animal -glass breakage caused by vandals -transportation expenses following theft of an entire private passenger auto

-loss to radar detection equipment

Because a delay in the voyage alter the risk and the envisioned hazards, coverage may be void if a voyage is delayed due to which of the following implied warranties? -condition of cargo -legality -seaworthiness -no deviation in voyage

-no deviation in voyage

Which of the following implied warranties in Ocean Marine insurance requires that the voyage not be unnecessarily delayed? -condition of cargo -legality -no deviation in voyage -seaworthiness

-no deviation in voyage

What coverage is provided under the Businessowners policy for a steam boiler explosion? -a separate limit is provided in the policy for steam boiler explosion -the steam boiler and the damage to the building and contents are covered -steam boiler explosion is covered but only after the policy has been in force for more than 60 days -none. steam boiler explosion is excluded under the BOP

-none. steam boiler explosion is excluded under the BOP

Which of the following agreements calls for the claimant to give up the right to later argue that they were led to believe a claim would be paid? -arbitration agreement -declaratory judgement -reservation of rights letter -nonwaiver agreement

-nonwaiver agreement

If an insurance professional violates any of the provision of 18 US 1033, the US Attorney General may bring suit against that professional in civil court and a civil penalty of: -not more than 50k may be levied -not more than 10k may be levied -not less than 50k may be levied -not less than 5K may be levied

-not more than 50k may be levied

When determining an amount to pay on a claim for a vehicle that was a total loss, the insurer will use: -an average of similar claims that have been paid by the insurer over the past 5 years -official used car guide -official automobile adjusters guide -an average of estimates obtained from car dealers

-official used car guide

Under a standard Personal Watercraft, Boatowners, or Yacht policy, how are physical damage claims settled? -on an agreed amount basis -on a functional replacement cost basis -on an ACV basis -on a RC basis

-on an ACV basis

Coverage under the National Flood Insurance Program my be written: -only in participations states -only in eligible communities -for any property located in flood prone areas -for any property located in the US

-only in eligible communities

Part Three of the NCCI Standardized WC policy covers: -other state insurance -employers liability -premium -duties if injury occurs

-other state insurance

Under Section 1 of the Business Auto policy Symbol 4 defines the covered auto as: -owned auto other than private passenger autos -owned private passenger auto only -any auto -owned autos only

-owned auto other than private passenger autos

Under the Businessowners policy, an endorsement can be added that would cover all of the following, EXCEPT: -owned automobiles -leased automobiles -hired automobiles -borrowed automobiles

-owned automobiles

The E-commerce endorsement provides for all of the following, EXCEPT -security breaches of customer information -defense costs for a liability suit brought against the insured for personal customer data that has been compromised -recovery of the information lost or corrupted in a breach of service -pain and suffering

-pain and suffering

Which of the following commercial property endorsements allows the insured to increase personal property (contents) coverage for specified periods of time when inventory may be higher than usual? -spoilage endorsement -peak season endorsement -inventory endorsement -protective safeguard endorsement

-peak season endorsement

All of the following are insuring agreements under the standard Financial Institution bond form 24 except: -in transit -pension plans-ERISA Compliance -Counterfeit Currency -Fidelity

-pension plans-ERISA Compliance

Which of the following is NOT covered under aircraft physical damage (hull) insurance? -landing gear -fuselage -wings -personal effects

-personal effects

Section III of the Business Auto form provides coverage for: -conditions -liability -physical damage -owned private passenger autos

-physical damage

Which of the following would NOT be eligible for coverage under a "Livestock floater"? -swine -sheep -cattle -poultry

-poultry

Which of the following sections of the Gramm-Leach-Bliley Act prohibits the practice of accessing private info using false pretenses? -pretexting provision -safeguards rule -financial privacy rule -insurance fraud and false statement provision

-pretexting provision

The three parties to a bond are : -principal, obligee, and employee -principal, obligee, and surety -obligor, principal, and surety -employee, obligor, and principal

-principal, obligee, and surety

Experience rating provides employers with the inventive to: -hire only experienced workers -hire fewer workers -purchase private wc coverage -prioritize safety and control hazards in the workplace

-prioritize safety and control hazards in the workplace

The need for Garagekeeper's Liabilty coverage arises from the fact that the Garage Liability policy does not cover: -property damage losses to autos in an insured's care, custody, control -more than 5 vehicles owned by the named insured -liability for both bodily injury to the insured -autos owned by the business

-property damage losses to autos in an insured's care, custody, control

All of the following are covered auto under the "Supplementary Payments" section of the ISO personal automobile policy, except: -up to 250 for bail bonds -up to 200 a day for loss of earnings -property of others in the vehicle -defense and investigation costs

-property of others in the vehicle

Which of the following is the best definition of mitigating the loss? -obtaining estimates to repair or replace the damaged property -separating the damaged from the undamaged property -protecting the covered property from further loss -abandoning the property to the IC

-protecting the covered property from further loss

Hull coverage is most frequently written together with which of the following coverage to make a package policy? -warehouse to warehouse coverage -cargo coverage -protection and indemnity coverage -freight coverage

-protection and indemnity coverage

Which of the following are types of Independent Adjusters, except: -all lines adjuster -catastrophe adjuster -public adjuster -staff adjuster

-public adjuster

Which of the following would be covered by the NFIP? -mudslides -interior damage caused by frozen pipes -water spray damage -reasonable expenses to protect the property when endangered by flood

-reasonable expenses to protect the property when endangered by flood

All of the following are general duties of the insured after a loss, except: -provided books and/or records pertinent to the claim -provide a properly completed proof of loss statement to the insured -refuse to provide a detailed explanation of the cause of loss -provide any evidence requested by the insurer

-refuse to provide a detailed explanation of the cause of loss

The ISO standardized BOP provides a limit of 2500 for Fire Department Service charges. This limit applies: -to one specified location -coverage is limited as to the number of fire departments that respond -per policy year -regardless of the number of services or number of buildings

-regardless of the number of services or number of buildings

The Commercial Inland Marine condition that states that the limit of insurance will not be reduced by payment of any claim, is known as: -reinstatement of limit after a loss -rights of recovery -duties of an insurer -insurance under two or more coverages

-reinstatement of limit after a loss

Which of the following is true regarding loss settlement under the mobile home endorsement? -loss to a mobile home is always settled on an actual cash value basis regardless of the amount of insurance carried -replacement cost settlement will be provided as long as 80% of the replacement cost value is covered by insurance -damage to a mobile home covered under the Mobile Home endorsement as long as 80% of the replacement cost value is covered by insurance -losses to mobile homes is always settled on a replacement basis regardless of the amount of insurance carried

-replacement cost settlement will be provided as long as 80% of the replacement cost value is covered by insurance

If a state is considered to be "monopolistic" when it comes to WC coverage, employers in that state are: -not required to provide WC coverage for their employees -required to purchase their WC from the state funded plan -permitted to purchase private insurance or purchase through the state funded plan -required to self insure their WC coverage

-required to purchase their WC from the state funded plan

WC insurance provides each of the following benefits, EXCEPT: -disability income benefits -retirement benefits -medical expense benefits -death benefits

-retirement benefits

Although most Hull policies are written with Protection and indemnity coverage to cover the liability risks, there is a limited form of liability coverage for collision that is included in the Hull policy, it is known as, -barratry clause -adventure clause -running down clause -sistership clasue

-running down clause

Which of the following types of claims releases pays general and special damages immediately, but the claim is left open for payment of future special damages such as additional visit to the physician? -scheduled payment release or open ended release -advanced payment -full release settlement -no release or walk away

-scheduled payment release or open ended release

Which of the following implied warranties under an Ocean Marine policy requires that the vessel have a competent captain and crew? -no deviation in voyage -seaworthiness -legality -condition of cargo

-seaworthiness

All of the following would be covered under Commercial Crime insurance, EXCEPT: -inside premises theft of money and securities -forgery or alteration -seizure or destruction of property by government authority -funds transfer fraud

-seizure or destruction of property by government authority

Which of the following duties of the insured serves the purpose of protecting any undamaged property from damaged property? -abandonment -mitigating the loss -separating the property -obtaining estimates

-separating the property

Which of the following endorsements provides coverage for specified hired autos as if they were covered auto of the insured? -specified hired auto endorsement -additional insured-lessor endorsement -drive other car endorsement -mobile equipment endorsement

-specified hired auto endorsement

Which of the following is the form used to bond insurance and reinsurance companies, including Life insurance companies, self-insured companies, risk retention groups and title insurance companies to provide coverage for fidelity, on-premises, in-transit, forgery and alteration and securities forgery? -standard form 23 (credit union blanket bond) -standard form 14 (brokers deal) -standard form 15 (finance companies) -standard form 25 (insurance companies blanket bonds)

-standard form 25 (insurance companies blanket bonds)

All of the following are coverage riders that may be attached to the Standard Form No. 24 to modify or amend coverage, EXCEPT: -automated teller machine (ATM) -trading losses -standard form no. 14-broker dealers -voice initiated electronic funds transfer (VIT)

-standard form no. 14-broker dealers

A bank in need of a bond to provide EXCESS fidelity coverage for its employees would use: -standard form no. 24 -standard form no. 15 -standard form no. 25 -standard form no. 28, in conjunction with no. 24, to provide the excess coverage

-standard form no. 28, in conjunction with no. 24, to provide the excess coverage

The penalties for violation an Unfair Claim Settlement Practice is set by: -City or town laws -County laws -state laws -federal laws

-state laws

The Commercial Property cause of loss forms: -describe how losses are settled -describe the property being covered -describe the property not covered -state the perils that are insured against

-state the perils that are insured against

The clause that indicates the duties of the insured in the case of a loss, is known as _____ under an Ocean Marine policy. -jettison -salvage -sistership -sue and labor

-sue and labor

Which of the symbols under the Business Auto policy provides the broadest coverage? -symbol 8 hired auto only -symbol 1 any auto -symbol 3 owned private passenger auto -symbol 19 mobile equipment

-symbol 1

Which of the following scheduled injures would allow the injured worker to perform "light duty" work while recovering? -permanent total disability -permanent partial disability -temporary partial disability -temporary total disability

-temporary partial disability

The insured's has Garagekeeper's Liability coverage written on a direct and primary basis. This means that: -the claimant must not have been more than 20% negligent in the claim -negligence on the part of the insured must be proved the damage must have been directly caused by the named insured -that the policy will pay even when negligence on the part of the insured in not proven

-that the policy will pay even when negligence on the part of the insured in not proven

The Motor Carrier Act of 1980 is legislation that mandated: -all trailer being transported by trucks must meet safety standards set forth by Act -all truck could only carry non-hazardous freight -all truckers have a second driver when driving after 10pm -that trucking operators must file proof pollution liability insurance for three types of freight transport

-that trucking operators must file proof pollution liability insurance for three types of freight transport

Which of the following homeowner forms can be used to attach the mobile home endorsement form? -the HO-5 only -the HO-2 or HO-3 only -the HO-3 only -the HO-2, the HO-3, and the HO-5

-the HO-2 or HO-3 only

Which of the following functions is an adjuster permitted to perform without being guilty of engaging in the unauthorized practice law? -the adjuster may legally advise the principal as to how the claim should be settled -the adjuster many express opinions that may be construed as legal advice -the adjuster may draft documents that will have a legally binding effect -the adjuster may fil in the blanks with factual data, if the document itself was written by a lawyer

-the adjuster may fil in the blanks with factual data, if the document itself was written by a lawyer

When an adjuster makes a repair ship recommendation to an insured, all of the following is true of that recommendation, except: -the adjuster may steer the insured toward a repair shop in which he/she is a partial owner -the adjuster may refer the insured to a RC that has agreed to make the repairs for the amount of the claim settlement -the adjuster must refer the insured to RC that are conveniently located -the adjuster may refer the insured to a RC that has performed excellent repairs for the insurer in the past

-the adjuster may steer the insured toward a repair shop in which he/she is a partial owner

Shasta wrecked her brand new car and submits a claim to her IC. The car was a newly created model and it is not listed in the current version of the Official Used Car Guide. How will an adjuster arrive at an amount to settle the claim? -the adjuster will use the manufacturer's retail price, listed on the sticker of a new car identical to Shasta's -the adjuster will secure dealer quotations on the retail value of similar vehicles -the adjuster will simply deduct 12% from the amount Shasta paid for the car -the adjuster will use the lesser known automobile adjuster's value guide

-the adjuster will use the manufacturer's retail price, listed on the sticker of a new car identical to Shasta's

All of the following are types on info that an adjuster may find in a police report, except: -the parties involved in the accident -the amount of amount of damages that should be awarded -the observations of the policy officer when arriving on the scene -the names and contact info of any witnesses

-the amount of amount of damages that should be awarded

Under the Gramm-Leach-Bliley Act, financial institutions are required to share with their clients all of the following, except: -their methods of securing sensitive data -the amount of money they have lost in investments the prior year -their information-sharing practices -that the client has the right to opt-out of having their financial info shared with certain third parties

-the amount of money they have lost in investments the prior year

Tevis lives close to a river that has, on occasion, flooded. On Friday morning he is watching the weather station and notes that there is a flood warning in his area. He calls his agent and aske the agent to bind flood coverage immediately. Which of the following is true? -the application for coverage requires a 30 day waiting period before coverage applies -the agent can bind the coverage in 14days -the agent can bind the coverage immediately -there is a seven-day waiting period before the agent can bind coverage

-the application for coverage requires a 30 day waiting period before coverage applies

Which commercial inland marine policy condition will allow the insured or the insurer to request that a court decide on the claim settlement? -the right of recovery condition -the appraisal condition -the reinstatement of limit after a loss condition -the recovery condition

-the appraisal condition

"Sinkhole Collapse" is a peril that is covered under which of the following Commercial Property Cause of loss forms? -The broad and special forms only -the basic, broad, and special forms -the special from only -the basic and special forms only

-the basic, broad, and special forms

The replacement cost of a damaged home is 100k. The insured carries 80K coverage on that home. There is a partial loss to the structure that will cost 10K to repair. What is the amount the policy will pay? 87500 10000 8000 8750

10000

The Ownership of Property Interests Covered condition of the Commercial Crime policy, the property covered is limited to all of the following, EXCEPT: -property that is held for others -the benefit of he property owner whose property was stolen while under the care, custody, and control of the insured -property owned by the insured -property for which the insured is legally liable

-the benefit of he property owner whose property was stolen while under the care, custody, and control of the insured

If a condominium association policy and a condominium unit-owners policy are in force covering the same property and a loss occurs, which policy would pay the claim? -the condominium association policy is primary and would pay -both policies would exclude coverage -each policy would pay a pro-rata share of the loss -the condominium unit-owners policy is primary and would pay

-the condominium association policy is primary and would pay

Under a Commercial Umbrella policy, what is the retention limit? -the deductible that applies when the underlying coverage does not apply, but the umbrella coverage does apply -the underlying policy limits -only pays for excess losses -does not pay for losses self-insured by the insured

-the deductible that applies when the underlying coverage does not apply, but the umbrella coverage does apply

The garage policy endorsement that is commonly attached to the policy to cover the liability of an owner of the business and his/her family members when driving a non-owned vehicle is known as: -the false pretense endorsement -the medical payments endorsement -the drive other car coverage endorsement -dealer's drive away collision coverage endorsement

-the drive other car coverage endorsement

Residential condominiums in the emergency program of the NFIP are covered by which of the following forms? -the general property form -the condominium emergency form -the dwelling form -the residential condominium building association policy form

-the general property form

Arranging for the repair or disposal of damaged property is the responsibility of: -the insured -the insurance company -the adjuster -the appraiser

-the insured

Med Pay coverage under the ISO personal automobile policy covers: -the insured as the driver of the insured vehicle or as a pedestrian -the insured only when he or she is the driver of the automobile only -the insured as an occupant of a car, an occupant of the insured vehicle, and the insured as a pedestrian when hit by a car -the insured as the driver or an occupant o the insured vehicle only

-the insured as an occupant of a car, an occupant of the insured vehicle, and the insured as a pedestrian when hit by a car

Which of the following statements is correct concerning the premiums for a WC policy? -the insured has 3 years after the policy expires to audit the insured's payroll records in order to determine the final premium -the insurer has 12 months from policy expiration to determine actual payroll and work classifications, and bill the insured accordingly -the premium shown on the information page is the final premium -the insured has the option of having its payroll audited and a premium adjustment made

-the insured has 3 years after the policy expires to audit the insured's payroll records in order to determine the final premium

The commercial inland marine policy will be void for any of the following reasons, except: -the insured concealed material info relating to the insurance -it is discovered that the insured doesn't have an insurable interest in the property -the insured misprinted the year of his/her birth -the insured fraudulently misreports the value of the property being insured

-the insured misprinted the year of his/her birth

If the Navigational Limits or Lay-Up shown in the Declarations of a standard Yacht policy is breached because of a circumstance out of the insured's control: -the insured must be notified within 10 days after the breach and any additional premium that is due must be paid -the insured must be notified within 10 days after the breach, but no additional premium will be due -no action is necessary at all -no action needs to be taken unless the breach is ongoing for more than 30 days

-the insured must be notified within 10 days after the breach and any additional premium that is due must be paid

What is the duty of the insured under a liability policy, that is not a factor with property insurance policies? -the insured must separate the damaged from the undamaged property -the insured must prove the existence of the liability policy at the time of the accident or injury -the insured must prove the value of the property -the insured must arrange for an appraisal

-the insured must prove the existence of the liability policy at the time of the accident or injury

Which of the following would be covered under the personal property (contents) coverage of an NFIP policy? -the insured's riding lawn mower kept inside an attached garage -the foundation of the insured building -window blinds -permanently installed carpeting

-the insured's riding lawn mower kept inside an attached garage

The personal injury endorsement of the homeowner policy would cover which of the following? -the insured and members of her household for bodily injuries occurring around the insured residence -the insured in bringing a lawsuit against a landlord for invasion of privacy -the insured, when a suit of defamation of character is lodged against him -injuries to a household employee working on the residence premises

-the insured, when a suit of defamation of character is lodged against him

What costs are paid under an umbrella policy? -the limit minus any self-insured retention -the limit and any defense costs minus any applicable self-insured retention (deductible) -only the required underlying limits and the defense costs -the limit which includes the defense costs

-the limit and any defense costs minus any applicable self-insured retention (deductible)

All of the following are considered "insureds" under the BAP, Except: -named insured while operation a covered auto -an employee while using a covered auto -the owner of a hired or borrowed auto -employees while loading or unloading property to or from a covered auto

-the owner of a hired or borrowed auto

The Motor Carrier Act of 1980 mandates that "for hire" transportation of non-hazardous property in interstate or foreign commerce must carry limit of 750,000 of insurance for which type of freight transport? -this is not mandate made by the MCA of 1980- -type 2 (for hire or private transportation of hazardous, limit 5M) -type 3 (for hire and private transportation of oil, limit 1M) -type 1 (for hire non-hazardous in interstate/foreign, limit 750K)

-type 1 (for hire non-hazardous in interstate/foreign, limit 750K)

All of the following "insured" would have a liability exposures, EXCEPT - the owner of a shop in a mall who sometime detains customers he suspects of shoplifting in his office until the policy arrive - a TV station whose reporters may do feature stories on high profile person, including their personal lives - a landlord who evicts a tenant for not paying the rent and suspicion of illegal drug use on the premises -the owner of a shop in a mall who sometimes follows customers around the store if he suspects them of shoplifting

-the owner of a shop in a mall who sometimes follows customers around the store if he suspects them of shoplifting

The Med pay coverage of an aircraft liability policy can cover the expenses incurred for bodily injury to a passenger in all of the following situations, expect: -the passenger slips and fall on the airplane stairs while disembarking, causing a broken arm -the passenger slips and falls on the steps of the airplane while entering the aircraft, causing a back injury -the door of the overhead compartment of the aircraft opens forcefully, hits the passenger on the head and causes a concussion -the passenger has slipped and fallen on a wet floor inside the airport, breaking a leg

-the passenger has slipped and fallen on a wet floor inside the airport, breaking a leg

Which of the following would be covered under the building coverage of an NFIP policy? -the plumbing system of the covered building -a portable dishwasher -window curtains -a clothes washing machine

-the plumbing system of the covered building

The insured is covered under a standard ISO Businessowners form and sustains a direct loss to his building and business personal property. What is the period of time the policy provides coverage for the loss of income? -the policy pays for up to six months -loss of income is not included and coverage must be added by endorsement -the policy pays for up to 12 months after the loss -the policy pays for up to 18 months

-the policy pays for up to 12 months after the loss

A per occurrence limit is usually the only additional sublimit for: -the personal and advertising injury limit -damage to premises rented to you -medical payments -the products-completed operations aggregate limit

-the products-completed operations aggregate limit

All of the following are bodily injury claim valuation factors, expect: -any preexisting conditions that may have contributed to the injury -the claimant's lost wages and future earning capacity -the socioeconomic background of the injured party -the type of injury and the rate of recovery

-the socioeconomic background of the injured party

All of the following would be considered "insureds" under the definitions sections of the personal watercraft policy, except: -an adopted child of the named insured -the spouse of the named insured -the insured whose name appears in the policy declarations -the spouse of the named insured who is separated and living away from the name insured

-the spouse of the named insured who is separated and living away from the name insured

All of the following is true of a record witness statement, except: -the interviewee must state on the recording that they are aware that the interview is being recorded -the statement must be audio/video recorded -all interruptions in the recording must be explained -all parties to the interview must be identified on the recording

-the statement must be audio/video recorded

All of the following are true regarding the retroactive date of the claims made form EXCEPT -there is coverage for occurrences that happened 60 days before the date shown in the declarations -the claim for an occurrence must first be made during the policy period -is the date after which an occurrence must have happened in order for coverage to apply -there is no coverage for occurrences that happened before the date shown in the declarations

-there is coverage for occurrences that happened 60 days before the date shown in the declarations

On the Renewal date of her existing NFIP policy, the insured selects two additional coverages. Which of the following statements is TRUE about the insured's waiting period before the new additional coverages will take effect? -because the coverages were selected on an existing policy, a 1day waiting period applies -there is no waiting period -a 60 day waiting period applies for additional coverages -the standard 30day waiting period applies

-there is no waiting period

Which of the following statements is TRUE with regard to Admitted Aircraft Liability coverage (Guest Voluntary Settlement)? -the coverage provides defense costs to owners of airplanes when a ticketed passenger brings legal action for bodily injury -this coverage pays for the cost associated with the property damage to a ticketed passenger on an airplane when their luggage is damaged by an airport worker -this coverage pays for the cost associated with the injuries to a nonticketed passenger on an airplane but only if that passenger can prove that the insured was negligent -this coverage pays for the costs associated with the injuries to a nonticketed guest on an airplane without the necessity to prove negligence against the insured

-this coverage pays for the costs associated with the injuries to a nonticketed guest on an airplane without the necessity to prove negligence against the insured

The most common method of settling liability claims is: -by litigation -through negotiated settlement -by arbitration -through mediation

-through negotiated settlement

The loss covered under more than one coverage of this insurance condition in commercial crime insurance is designed to: -to determine the coverage parts of the policy that may apply to the claim -provide for subrogation of a claim -allow the insured to choose the company that will pay the claim -avoid overpayment of a claim

-to determine the coverage parts of the policy that may apply to the claim

The reason to purchase an umbrella liability policy is: -to avoid deductibles on liability claims -to reduce insurance costs -to provide higher liability limits and broader coverage -to provide coverage to cover everything that the underlying coverage might exclude

-to provide higher liability limits and broader coverage

All of the following are exclusions under the standard BOP form, EXCEPT -earth movement -building and ordinance coverage -governmental action -transportation

-transportation

All of the following are Commercial Automobile polices that are currently in use by ISO, EXCEPT: -garage coverage form -business auto coverage form -truckers coverage form -motor carrier form

-truckers coverage form

Vehicles that are eligible to be insured by a Personal Automobile policy are described in the eligibility rules. Each of the following statements is true about vehicles eligible for PAP, except: -vehicles with fewer than four wheels are eligible -vehicles owned by an individual or married couple may be insured -van used for business are not eligible -private passenger autos and pickup trucks are eligible

-vehicles with fewer than four wheels are eligible

What is the FIRST STEP in any claims investigation? -verifying that the claimant had insurable interest in the claim -verifying that the loss wasn't caused by illegal activity by the insured -verifying that the loss occurred in the coverage territory -verifying that coverage exists, under the policy, for the loss being claimed

-verifying that coverage exists, under the policy, for the loss being claimed

All of the following are exclusions under the special cause of loss form, EXCEPT: -smog -loss of market -war and nuclear hazard -water damage

-water damage

Which of the following peril is covered by the Commercial Property Broad Cause of Loss form that is NOT covered under the commercial property cause of loss form? -riot or civil commotion -weight of ice and snow -volcanic action -aircraft or vehicles

-weight of ice and snow

When a claim is made under the Commercial inland marine policy, any recovery or salvage on a loss: -will accrue entirely to the benefit of the insurer, until the sum the insurer has paid on the claim has been recouped -belongs to the insured -must be given to a charity of the insured's choice -must be sold immediately and the proceeds are paid as part of the claim payment

-will accrue entirely to the benefit of the insurer, until the sum the insurer has paid on the claim has been recouped

Under the pair, set, or parts condition under the policy, if only one part or property consisting of several parts when complete, the insurer: -will pay to replace the entire item with a similar item of like kind/quality -will only pay for the value of the lose or damage part -will pay for the entire item at its current market value -will pay to purchase the entire item again new, and then they will keep the salvage

-will only pay for the value of the lose or damage part

The Med Pay coverage of the standard Yacht policy covers all medical expenses incurred by an insured, family members, incites, or guests if a claim is submitted: -within 5 years following a covered accident -within 3 years following a covered accident -within 1 year following a covered accident -within the policy period

-within 1 year following a covered accident

Under the Legal Action Against the Insurer, condition of the Commercial Crime policy, if the insured is justified in bringing lawsuit against the insurance company, they must do: -within 7 years from the date the loss is discovered -at any time, there is no restriction -within 2 years from the date the loss is discovered -within 6 months from the date the loss is discovered

-within 2 years from the date the loss is discovered

The Medical Payments and Personal Injury Protection Endorsement pays for the reasonable and necessary expenses for medical, chiropractic, hospital, dental, surgical, ambulance, prosthetic, and rehabilitation services and funeral expense resulting from the accident and incurred: -within 3 years after the date of the accident -within 1 year after the date of the accident -within 6 years after the date of the accident -for up to 2 years after the accident

-within 3 years after the date of the accident

The Part B Med Pay sections of the standard Personal Watercraft policy will cover all necessary medical expenses if they are claimed: -within 30 days of covered accident -within 7 years of covered accident -within 6 months of the covered accident -within 3 years following a covered accident

-within 3 years following a covered accident

Umbrella Liability polices commonly exclude damages that are covered under: -a contract where liability is assumed for use of aircraft -insured contracts -a specified dollar value -workers compensation insurance

-workers compensation insurance

Under Coverage D-Coverage for Damage to your auto temporary substitute vehicles under the ISO Personal Auto policy are considered to be: -a temporary vehicle with no coverage -a private passenger vehicle -your covered auto -an excluded automobile

-your covered auto

Other structures - coverage B of the Mobile Home endorsement provides ____ of coverage A 2% 10% 5% 15%

10%

Under the HO4 form, Building Additions and Alterations is covered up to _______________ of the personal coverage limit 80% 10% 15% 5%

10%

Improvements, Alterations, and Additions are covered for a loss by a peril insured against for up to 5% of the coverage C limit of liability 10% of the coverage C limit of liability $1,000 5% of the coverage A limit of liability

10% of the coverage C limit of liability

What is the limit of liability that applies to property in transit under a standard ISO BOP? -2500 -5000 -1000 -10,000

10,000

A non-residential building in Iowa in community that was admitted to the NFIP Emergency Program would be provide _________ of coverage for the building. -50,000 -150,000 -35,000 -100,000

100,000

Under the HO forms, the coverage E-Personal Liability minimum limit is: -100,000 total limit of liability regardless of the number of occurrences -50,000 total limit of liability regardless of the number of occurrences -100,000 per occurrence -50,000 per occurrence

100,000 per occurrence

Under the coverage extension "Newly Acquired Personal Property" of the ISO "Commercial Building & Personal Property" form, if the insured carries personal property (contents) coverage, newly acquired personal property at another location is covered for $__________ for a period of ___________ days -150,000; 90 -50,000; 50 -100,000; 30 -10,000; 45

100,000; 30

The NFIP will pay which of the following amounts to assist with moving of property to safety when there is a imminent flood danger? -500 -1500 -2000 -1000

1000

Under the Additional Coverages of Section II-Liability, the insurance company will cover damage to the personal property of others cause by the insured for up to: 2500 1000 1500 500

1000

No legal action can be brought against an insurer unless there has been full compliance with all terms of the policy and the action is brought within: 2 years after the proof of loss was filed 3 years after the proof of loss was filed 1 year after the loss 2 years after the date of loss

2 years after the date of loss

The insured has a 1,000,000 personal umbrella policy with a 5000 retention limit. For a 7000 liability loss not covered under the insured's personal auto policy, but covered under the umbrella policy, the insurance company would pay: -3000 -2000 -1000 -5000

2000

The Commerical Building & personal property -- additional coverages" will provide up to ____% of the direct amount of the loss, including the deductible to pay for debris removal 25 15 50 75

25

The reasonable expense incurred by the insured at the insurance company's request under Additional Coverage of Section II-Liability is subject to predetermined limit of: -2500 per month -250 per day -250 per week -100 per day

250 per day

What is the additional limit under the ISO and BOP for debris removal in case the basic coverage in inadequate? -25K -20K -15K -10K

25K

For how many years can the insurer request to examine the books and records of an insured if they are covered under BOP? -3 years -4 years -1 year -2 years

3 years

The length of time an insurance company must cover an insured as part of an automobile assigned risk plan is -until the insured can find insurance in the standard market -7 years -3 years -1 year

3 years

When an insurance company decides to non-renew a policy, they must give the insured: -30 day notice, subject to state laws -The opportunity to purchase a better policy without being subject to underwriting -A referral to another insurer -A valid reason

30 day notice, subject to state laws

For newly acquired property covered under the Scheduled Personal Property endorsement for jewelry, furs, cameras, and musical instruments, when new property is acquired, the insured must report these objects to the company within: 120 days 30 days 60 days 90 days

30 days

The transportation/permission to move endorsement for mobile home covers mobile homes being transported for a reason other than to protect it from further loss for: 45 days 60 days 30 days 15 days

30 days

While an insured is moving to a newly purchased primary dwelling, contents coverage is pro rate between the tow locations for: 30 days 120 days 90 days 60 days

30 days

Unless otherwise indicated, the largest area that risk can occupy and still be covered under a Businessowers policy is: 35,000 sq feet 40,000 sq feet 30,000 sq feet 45,000 sq feet

35,000 sq feet

Under a standard ISO commercial property form, the liberalization clause states that if the insurer makes any coverage revision that broadens the coverage under the policy without additional premium charge, the revision will automatically apply to existing policies if the broadened coverage was adopted during the policy period, or within: -30 days prior to the inception date of the policy -60 days following the inception date of the policy -30 days following the inception date of the policy -45 days prior to the inception date of the policy

45 days prior to the inception date of the policy

The Fire Department Service charge under an ISO form, is covered up to: 1000 200 500 1500

500

The Identity Fraud endorsement is subject to a deductible of: 250 1000 500 100

500

Under the Debris removal additional coverage, how much will be paid for any one tree? 500 1500 1200 1000

500

What is the usual standard deductible in the HO polices, which can be reduced for an additional premium? 1500 500 1000 1200

500

Without a "vacancy permit", vandalism is not covered under a commercial property policy if the building has been vacant for how many consecutive days prior to a loss? 30 60 45 90

60

"Extended Business Income" coverage pay for loss of business income after operations have been resumed for more than: -90 days -45 days -30 days -60 days

60 days

If a building is insured under a BOP, the insured can send a cancellation notice if the building has been vacant or unoccupied for more than: -45 days -30 days -60 days -90 days

60 days

Vandalism or theft will not be covered under the standard commercial building & personal property coverage form if, at the time of the loss, the building has been vacant for more than -120 days -30 days -60 days -90 days

60 days

Under the discovery crime insurance form, there is coverage while the policy is in force and for up to: -6 months after the policy expires -60 days after the policy expires -1 year after the policy expires -30 days after the policy expires

60 days after the policy expires

For the liberalization clause to apply, the implementation of the broadened coverage must occur: -at the time that the insured pays the premium for the broadened coverage -60 days prior to, or during the policy period listed on the declarations page -on the first day of the policy period listed on the declaration page - 30 days prior to, or during the policy period listed on the declarations page

60 days prior to, or during the policy period listed on the declaration page

For newly acquired fine acts covered under the Scheduled Personal Property endorsement, the object must be reported to the insured within: 120 days 90 days 60 days 30 days

90 days

The Time Element coverage of the Home Business endorsement is subject to: -A 48 hour time deductible -A 250 deductible -A 500 deductible -A 72 hour time deductible

A 72 hour time deductible

Dwelling forms may be used to insure all of the following, except -permanently installed mobile homes - a farm house - dwellings under construction -maximum 5 roomers or boarders

A farm house

Coverage would apply under both Coverage E and F, for which of the following? -A neighbor helps the insured unload a stockcar from a trailer on the insured's driveway, the car rolls forward and severely injures the neighbor -A three-wheeler, owned by the insured, that flips over at a national park and injures a guest rider -A golf cart owned by the insured that hit a pedestrian at a golf club -The insured is a physician and a guest at his home has a heart attack, the insured decides not to render medical services and the guest dies

A golf cart owned by the insured that hit a pedestrian at a golf club

Which of the following hazards arise out of an insured's attitude of apathy toward causing or preventing a loss? A physical hazard A morale hazard A dynamic hazard A moral hazard

A morale hazard

Which of the following flood zones show a "flood depth" instead of a "base flood elevation" on a FIRM? -AE -VE -V -AO

AO

Common carriers are responsible for damage to customer good they are transporting except for damage resulting from: -Acts of God -Traffic Accidents -Load Shifting -Poor vehicle maintenance

Acts of God

When can an insured waive all rights to subrogate against a third party? -The insured can never waive their rights of recovery -In writing before a loss occurs -At any time before or after a loss -Only after a loss occurs and the insured has had time to assess the damages cause by the third party

In writing before a loss occurs

A waiver or change to policy must be in writing. Changes are usually made: -By pro rata refund -By cancellation -By liberalization -By an endorsement

By an endorsement

Which of the following HO coverages is designed to cover Personal Property? Coverage A Coverage B Coverage C Coverage D

Coverage C

All of the following statements about builders risk coverage is true EXCEPT -Coverage terminates the day after construction is complete -land, lawns, and trees are not covered -in effect, the coverage has a 100% coinsurance requirement -the amount at risk increases over time

Coverage terminates the day after construction is complete

Which of the following dwelling forms settle losses to personal property on an actual cash value basis? DP-1 and DP-3 only DP-2 and DP-3 only DP-1, DP-2 and DP-3 DP-1 only

DP-1, DP-2 and DP-3

The peril of collapse is covered under the DP-1 and DP-2 forms DP-1 and DP-3 forms DP-2 and DP-3 forms DP-1 form

DP-2 and DP-3

Which of the dwelling forms covers the dwelling on a replacement cost basis? DP-1 and DP-2 DP-1 DP-2 and DP-3 DP-1, DP-2 and DP-3

DP-2 and DP-3

Which of the dwelling forms would provide 20% of coverage as an additional amount of insurance for coverage D - Fair Rental Value? DP-1 and DP-2 DP-2 and DP-3 DP-1 and DP-3 DP-1

DP-2 and DP-3

Which of the dwelling forms would provide 20% of the coverage A limit of liability for loss of both fair rental value and additional living expenses? DP-1 DP-1 and DP-2 DP-2 and DP-3 DP-1 and DP-3

DP-2 and DP-3

Which of the following dwelling forms provides broad form coverage for personal property? DP-3 DP-1 and DP-2 DP-2 and DP-3 DP-1, DP-2 and DP-3

DP-2 and DP-3

Which of the following dwelling forms pays losses to the dwelling and other structures on a replacement cost basis? DP-2 and DP-3 only DP-1 and DP-2 DP-1 and DP-3 DP-3 only

DP-2 and DP-3 only

Which of the following types of risk is associated with change is not insurable? Static risk Dynamic risk Particular risk Fundamental risk

Dynamic risk

Non-medical professional liability insurance is known as: -professional acts insurance -malpractice insurance -wrongful act insurance -errors & omissions insurance

Errors & Omissions insurance

All of the following are NOT typically covered under standard unendorsed property insurance policies, EXCEPT: flood mold earthquake fire

Fire

The identity fraud endorsement provides coverage: -For the lost income from the time taken away from work to meet with law enforcement officials regarding the identity fraud -To pay off any loans that were secured in the name of the insured as part of identity fraud -To pay only credit card charges made while the identity fraud was being perpetuated against the insured -For 75% of the amount lost from the insured's checking account by fraud

For the lost income from the time taken away from work to meet with law enforcement officials regarding the identity fraud

All of the following are covered under the HO 04 26 endorsement for coverage of Fungi, Wet or Dry Rot, or Bacteria Coverage form, except: -Spores -Mold or mildew -By-products produced or released by fungi -Fungi that are in a good or product intended for consumption

Fungi that are in a good or product intended for consumption

Under which of the following HO forms is Glass or Safety Glazing Material excluded if the building has been vacant for 60 or more days, except for earth movements HO2,6,8 HO2,3,5 HO2,6 HO5

HO 2, HO3, HO5

Which of the following HO policies is considered the "combination" form, providing coverage to the structures on an open peril basis and coverage to the contents on broad form peril basis? HO3 HO6 HO4 HO2

HO3

Which of the following HO forms covers tenants in non-owned buildings for "contents" only? HO6 HO4 HO3 HO8

HO4

Which of the following HO forms does not contain coverage for the dwelling? HO2 HO5 HO4 HO8

HO4

Which of the following HO forms allows the insured to establish the amount of coverage based on the actual contents? HO4/HO6 HO8 HO3 HO2/HO5

HO4/HO6

None of the HO policies cover theft or watercraft off the residence premises, Except: HO2 HO3 HO4 HO5

HO5

Which of the following HO forms is considered the Deluxe form and covers both structures and contents on an open peril basis? HO5 HO8 HO3 HO6

HO5

Which HO form covers the insured's interest in condominium and contents? HO8 HO3 HO4 HO6

HO6

Which of the following two HO forms do not provide coverage for Landlord's Furnishings? HO3/HO4 HO2/HO3 HO6/HO4 HO6/HO8

HO6/HO8

Which of the following is the personal automobile policy endorsement that is needed when two people live in the same household, but they are not husband and wife, who jointly own a private passenger auto, pickup truck or van? -Joint ownership endorsement -Named non-owner endorsement -Extended non-owner liability endorsement -no-fault insurance

Joint ownership endorsement

All of the following are included in the coverage territory of the standard Commerical Building & personal property coverage form EXCEPT: -the US -Canada -Puerto rico -Mexico

Mexico

The Valuable Papers and Records form many cover all the following, except: -deeds -money -drawings -manuscripts

Money

The dollar amount that will be covered under the Earthquake endorsement is determined by: -Multiplying the percentage deductible chosen and shown in the schedule on the endorsement form, by the limit of liability of Coverage A or Coverage C, whichever is higher -Multiplying 5% by the limit of liability of Coverage C -Multiplying the 2% standard deductible by the limit of liability of Coverage A or Coverage C, whichever is greater -Multiplying 5% of the dwelling coverage limit

Multiplying the percentage deductible chosen and shown in the schedule on the endorsement form, by the limit of liability of Coverage A or Coverage C, whichever is higher

Which personal automobile endorsement covers people who do not actually own an automobile but occasionally drive borrowed or rented vehicles? -Named non-owner endorsement -Joint ownership endorsement -Miscellaneous vehicles endorsement -extended non-owner liability endorsement

Named non-owner endorsement

The insured's large picture window is broken in his rental home that has been vacant for 6 months. which of the following is true? -the window will be covered if the dwelling is covered under the DP-1 -the window will be covered but only if the dwelling is covered under the DP-3 form -the window will be covered but only if the dwelling is covered under the DP-2 form -NO coverage will apply

No coverage will apply

The insured carries a HO policy that covers more than 80% of the RC value of her home. The home burns to the ground. On what basis will the claim be settled? -On RC basis -Up to the percentage limit that the home was "under insured" -The policy will pay 80% of the market value of the home -On an ACV basis

On RC basis

The part of a standard workers' compensation policy that contains the cancellation procedures is: Part five - premium Part one - workers compensation Part Six - conditions Part two - employers liability

Part Six - conditions

The insured has a loss to her roof. She is planning to have it repaired and submit a claim on a replacement cost basis. When can she collet the money from her claim to pay for the roof repair? -She cannot collect any part of the money for the claim for 180 days after the loss -She cannot collect any part of the money for the claim until after the roof has been repaired -She must secure three estimates to repair the roof, then submit the claim and the insurer will pay the amount of the lowest estimate to repair the roof. They will pay this amount in advance of the roof repairs -She can collect up to the ACV of the roof, until the roof is repaired, and then submit the additional amount for the RC

She can collect up to the ACV of the roof, until the roof is repaired, and then submit the additional amount for the RC

The insured is covered under an HO3 policy. His diamond ring, valued at 10k has been destroyed in a fire at his residence premises. How will this claim be settled? The IC will pay RC of the ring The IC will pay ACV of the ring Ring is not covered The IC will pay 80% of the value of the ring

The IC will pay ACV of the ring

Insurers are able to calculate their probable losses and to establish the rates for premiums that will cover losses and operating expenses, by using: The Law of Large Numbers Insurance The principle of Indemnity Insurable Interest

The Law of Large Numbers

The most common method of risk management is: The sharing of risk The assumption of risk Risk avoidance The Transfer of risk

The Transfer of risk

which of the following would be covered under the extended perils of windstorm or hail? - a television antenna on the roof of the covered dwelling - the beef stored in a freezer that spoiled because power was knocked out for an extended period of time due to a tornado - an awning covering a patio - a canoe that was stored on the driveway of the covered dwelling

The beef stored in a freezer that spoiled because power was knocked out for an extended period of time due to a tornado

The Limited Fungi, Wet or Dry Rot, or Bacteria Coverage endorsement form covers all of the following, Except: -The cost of chemical treatments to prevent the future growth of fungi after clean-up -The cost to remove fungi -The cost of testing the air to confirm the presence or absence of fungi -The cost to tear out and replace any part of the building or other covered property to gain access to the fungi

The cost of chemical treatments to prevent the future growth of fungi after clean-up

All of the following are EXCLUDED under coverage F of the HO policy EXCEPT: -A handy man who works regularly at the insured's home and is covered under Workers Com -The medical bills of the insured's "live-in" housekeeper, not covered under WC, who slipped and fell at her mother's house on her day off -The emergency room visit of the insured's teenaged son who tripped over the dog in the kitchen and split his head open on the counter top when he fell -The emergency room bill for a guest of the insured who fell while walking down the insured's front steps and needed stitches in their leg

The emergency room bill for a guest of the insured who fell while walking down the insured's front steps and needed stitches in their leg

Which of the following would be covered under the Damage to Property of Others coverage? -A tuxedo that the insured borrowed and ruined that is covered under Coverage C of the HO policy -The insured's 16 year old daughter threw her boyfriend's class ring, worth 700 into a lake bc she was angry that he broke up with her -A computer worth 800 owned by a tenant living in the insured's garage apartment that is dropped and broken by the insured -The insured takes her four year old son to a friend's house for the afternoon. Her son picks up a figurine worth 500 for the friend's curio cabinet and throw it across the room, breaking it into several pieces

The insured takes her four year old son to a friend's house for the afternoon. Her son picks up a figurine worth 500 for the friend's curio cabinet and throw it across the room, breaking it into several pieces

All of the following would be covered under Coverage F-Med Payments to others, except: -The paper boy is delivering the newspaper to the insured's home, slips on the ice covering the insured's sidewalk and breaks his leg -The insured's son falls of the deck at the insured premises and breaks his arm -The insured's housekeeper, who is not covered under WC, falls while cleaning the kitchen and chips a tooth on the counter tip as she falls -The insured's sister-in-law comes for a visit. As she is leaving the covered premises, she smashes her finger in the front door and needs stitches

The insured's son falls of the deck at the insured premises and breaks his arm

Which of the following is the Commercial Inland Marine form designed to protect single shipments of specifically described goods? -Annual Transit policy -Motor Truck Cargo policy -Trip Transit policy -Commercial Truck policy

Trip Transit policy

In the Drfinitons of the ISO personal automobile policy, "occupying" means all of the following, except: -upon -in -getting in -under

Under

The process by which insurance company selects certain types of risks that have historically produced a profit, and rejecting those risks that have historically produced a loss is known as: Reinsurance Risk Avoidance Underwriting Risk Control

Underwriting

The difference between the "occurrence" form and the "claims-made" form relates to: -The type of coverage provided -Who can purchase the coverage -How much coverage can be purchased -When the coverage is triggered

When the coverage is triggered

If a policy is cancelled by the insured for fraud, the insurer: -Will still have to reimburse the policyholder any unearned premium due -Can refuse to reimburse earned premium because of fraud -Can offset the owed premium return against any money paid out to the policyholder -Will not be responsible to return any f the premium, earned or unearned because the policyholder committed fraud

Will still have to reimburse the policyholder any unearned premium due

All of the following are excluded under insurance agents and broker errors & Omissions coverage, EXCEPT -libel or slander -a claim brought against the agent because of negligence on the part of the insured -dishonest acts -punitive damages

a claim brought against the agent because of negligence on the part of the insured

The insured contract includes all of the following EXCEPT -sidetrack agreements -a contract with a business to do service work -elevator maintenance agreements -lease of premises

a contract with a business to do service work

Personal Injury includes all of the following, EXCEPT: -wrongful eviction -false arrest, detention, or imprisonment -a customer slips and falls on the insured premises -invasion of privacy

a customer slips and falls on the insured premises

All of the following would be covered under the DP-2 Broad form except: - a gutter on the outside of the dwelling becomes clogged and water seeps in through the roof of the home and behind some walls, causing damage -the floor of the utility room of the covered dwelling when a pipe bursts in the washing machine and leaks water everywhere -the drywall in the family room of the covered dwelling that has been ruined by the air conditioning unit that burst a pipe and leaked water between the family room wall and garage wall -a burst pipe under the kitchen sink of the covered dwelling that causes damage to the cabinetry and the floor

a gutter on the outside of the dwelling becomes clogged and water seeps in through the roof of the home and behind some walls, causing damage

Someone who engages in the business of transporting, by auto for hire, people or property is: -a driver -a trucker -a dispatcher -a motor carrier

a motor carrier

The standard commercial building & personal property from provides coverage for all the following EXCEPT -Permanently installed blinds in a commercial building -business owned property -commercial buildings -a personally owned residence

a personally owned residence

All of the following can obtain coverage under the builders risk policy EXCEPT -a subcontractor who is hired to completed the plumbing in a building -the contractor who is constructing the building -the owner of the building under construction -a prospective buyer of the building under construction

a prospective buyer of the building under construction

Coverage E and F of the HO policy will provide coverage for all the following types of watercraft, except: -a canoe -a rowboat -a sailing vessel, with or without auxiliary power, 26 feet or more in length, owned or rented to an insured -a kayak

a sailing vessel, with or without auxiliary power, 26 feet or more in length, owned or rented to an insured

Which of the following is the definition of accident as it pertains to insurance? -the state of being subject to loss because of some type of hazard -the actual injury or damage sustained by the insured -a sudden or unforeseen event, or a continuous and repeated exposure to an event that result in a financial loss -a sudden and unforeseen event resulting in a loss

a sudden and unforeseen event resulting in a loss

Which of the following professionals would be covered under the business pursuits endorsement form? -an architect -a nurse practioner -a hair stylist -a teacher in an insurance school

a teacher in an insurance school

Although CGL policies exclude Liquor Liability for bars, the policy WOULD provide coverage for: -a pool hall with half its revenues coming from beer sales -a catering service with a liquor license -a textile manufacturer that serves beer at an annual company picnic -a restaurant with a cocktail lounge

a textile manufacturer that serves beer at an annual company picnic

A type of liability that may be imposed on an insured who is participating in a certain activity that is particularly hazardous is known as: negligent liability absolute liability vicarious liability hazardous liability

absolute liability

Which of the following is a type of loss when the covered property is destroyed beyond repair and nothing of value remains? constructive total loss general average loss actual total loss partial average loss

actual total loss

Insurance contracts are contingent upon uncertain events, that provide for the unequal transfer of value between the parties, this is known as an ____________ contract. conditional adhesion aleatory indemnification

aleatory

The Earthquake endorsement used with a HO policy defines a single earthquake as: -all earthquake shocks occurring within a 72 hour period -all earthquake shocks occurring within a 48 hour period -all tremors occurring within a 48 hour period -all shock waves occurring with a 72 hour period

all earthquake shocks occurring within a 72 hour period

All of the following are "motor vehicles" that are covered under the HO program, Except: -a motorized wheel chair used by the invalid mother of the insured in the home -a golf cart -an automobile purchased for a "live-in" housekeeper to drive to purchase items for the home from local stores -an atv use to drive around the insured's property

an automobile purchased for a "live-in" housekeeper to drive to purchase items for the home from local stores

Under the ISO commercial building and personal property coverage form, all of the following are extensions of coverage EXCEPT: -appraisal -valuable papers and records -personal effects -property off-premises

appraisal

Misrepresentations are: -are the failure of the insured to reveal material facts when applying for insurance -a breach of one of the policy conditions by the insured -are statements made on an application for insurance that are true to the applicant's best knowledge and belief -are untrue statement made by the insured on an application for insurance

are untrue statement made by the insured on an application for insurance

Each person who is elected or appointed as insurance commissioner/director/superintendent: -automatically becomes a member of the National Association of Insurance Commissioners (NAIC) -sets the premium rates for all insurers in their state -automatically holds a seat in the state legislature -is authorized to create insurance laws in the state

automatically becomes a member of the National Association of Insurance Commissioners (NAIC)

Which of the following serves as temporary evidence that coverage is in effect? endorsement binder rider exclusion

binder

Personal Liability Coverage of the HO program covers the insured for all of the following except: -business activities -personal activities anywhere in the US -personal activities of the insured's young children -personal activities outside of the US

business activities

Which of the following "defenses against negligence" is the defense used in the most states of the US? comparative negligence contributory negligence intervening cause assumption of risk

comparative negligence

A doctrine stating that if loss of damage to property occurs as a result two or more causes, and one cause is covered under the policy but the other cause is not covered, the damages will likely be compensated by the insurer, is known as: coinsurance concurrent causation indirect loss coverage loss settlement

concurrent causation

Which of the following is the clause contained in some Professional liability policies that requires the insurer to obtain permission from the insured before settling a claim? -consent to settle clause -wrongful act admission clause -legal liability clause -claim permitted clause

consent to settle claim

Owners and Contractors protective liability coverage protects against which of the following? -fire -excess liability -theft -contingent liability

contingent liability

A common law defense against negligence that states 'if an individual contributes to his or her own loss in anyway, then another cannot be held liable for the loss' is known as: assumption of risk contributory negligence intervening cause comparative negligence

contributory negligence

All of the following are elements of elements of negligence, EXCEPT: breach of duty causation duty of care contributory negligence

contributory negligence

When an existing coverage under the policy is expanded, this is an: additional coverage rider coverage extension endorsement

coverage extension

Which of the following is the loss valuation method that pays the value schedule on the policy, or acv, whichever is less? agreed value stated value actual cash value replacement cost

stated value

The liability policy limit that only pays one amount, as the maximum limit of liability of the insurer, with respect to any one accident or occurrence involving either or both bodily injury and property damage, is known as: single limit total limit split limit aggregate limit

single limit

An insured has covered his dwelling for one limit, and his personal property for a different limit under the same property insurance policy. He ash insured his property on a _______________ basis. specific reporting form per type blanket

specific

All of the following are duties of the Insurance commissioner/director/superintendent, expect -issuing licenses and certificates of authority -conducting hearings on insurance matters to determine if violations have occurred -setting insurance rates for insures with their states -monitoring the financial solvency of insurance companies

setting insurance rates for insures with their states

All of the following would be excluded under the DP-3, EXCEPT: - a mouse infestation that causes damage to the home when mice come into a hunting lodge and build nests - a termite infestation that causes damage to the wood that supports the covered dwelling -a window is broken in a vacation home by a falling tree branch. Birds fly in through the window and cause major damage to the interior of the home -damage caused to the interior of the covered dwelling when a deer bursts through the sliding glass door

damage caused to the interior of the covered dwelling when a deer bursts through the sliding glass door

Which of the following is commonly debited from a claim payment before that amount is remitted to the insured? a liability fee deductible salvage costs future premiums

deductible

Under a CGL policy, supplementary payments provide coverage for which of the following: -defense costs -medical expenses -loss of rental income payments -loss of use payments

defense costs

Which of the following would NOT be a potential client for errors and omissions insurance? -lawyers -insurance agents -real estate agents -dentists

dentists this one because you can have bodily injury going to the dentist

The DP-3 special form covers all of the following except -burglary damage -loss caused by a hostile fire -discharge of escape of pollutants -damaged caused by lightning during a storm

discharge of escape of pollutants

Which of the following provides coverage for claims involving wrongful termination, sexual harassment, and discrimination in hiring -employment practices liability -fiduciary legal liability -lawyers professional liability -directors and officers liability

employment practices liability

A written modification of an insurance policy is: endorsement deductible condition proof of loss

endorsement

The "period of restoration" that applies to the Business Income coverage under a commercial property form: -starts on the first day reconstruction begins -ends at the expiration date of the policy -ends on the date when the property should be repaired within reason -ends on the date the property is actually repaired

ends on the date when the property should be repaired within reason

All of the following are elements of a valid contract, Except: offer and acceptance executory condition consideration competent parties

executory condition

All of the following are considered an "insured location" under the HO policy, Except: the insured dwelling farm land owned by the insured a family cemetery plot vacant land owned by the insured

farm land owned by the insured

The CGL policy excludes coverage for damage to the property of others if, at the time of the loss, that property was in the care, custody, and control of the insured. However, the exclusion does not apply if the damage is caused by: -water -fire, smoke, or explosion -earthquake -pollution

fire, smoke, or explosion

The insured person is the _____________ to the contract. third party first party second party promisee

first party

Fancy has purchased a new home and is required to purchase Flood insurance as a condition of closing the loan. Fancy has submitted a Flood insurance application along with his premium, when does the coverage become effective? -on the date the Flood insurance binder indicates -after the 30 day waiting period -immediately -after a 1 day waiting period

immediately

All of the following area actions the commissioner/director/superintendent may take, after hearing where is has been determined that a violation has been committed by an insurance licensee, EXCEPT: impose criminal penalties issuer a cease and desist order suspend or revoke the license impose a fine

impose criminal penalties

Concealment -is making untrue statements on an application for insurance -is an insurance company making untrue statements regarding the provisions of an insurance policy -is the failure of the insured to reveal material facts when applying for insurance -is lying when asked a direct question regarding an item on an insurance policy

is the failure of the insured to reveal material facts when applying for insurance

Which of the following is an endorsement to the claims made form that permits the insurer to exclude coverage for specific accidents, products, work or locations? -laser beam -extended reporting -supplemental reporting -coverage "tail"

laser beam

Which of the following is the type of construction that is most fire resistant to fire and to wind? masonry noncombustible non combustible frame joisted masonry

masonry noncombustible

Products liability will cover all of the following except -improper assembly of the product -misuse of the product -failure to inspect or test the product -deceptive advertising

misuse of the product

Coverage D-Loss of Use under the HO program will cover all of the following, Except: new appliances laundry rent food

new appliances

The insured carries an HO8 form and has a loss on personal property. How will this loss be settled? -on rc basis if the rc endorsement is attached -the HO8 doesn't provide any personal property coverage -on an acv basis -the loss will be covered up to 80%of the market value of the personal property

on an acv basis

Completed operations liability coverage involves a loss away from the premises in all cases except those involving -on-going operations -auto repair shops -service establishments -processing establishments

on-going operations

On a dwelling form, direct loss coverage B provides coverage on -the personal property -the building -vehicular damage -other structures

other structures

Which of the following is the type of loss where the cost to repair damaged property does not exhaust the policy limits? constructive total loss general average loss partial average loss actual total loss

partial average loss

A salesperson at a hardware store drops a hammer on a customers foot. this loss would be classified as which of the following types of hazards? -completed operations hazard -product hazard -contractual hazard -premises operations hazard

premises operations hazard

Which of the following would be covered under the DP-2 Broad form "damage by burglars" coverage? - the damage to the window frame that occurred when the burglary broke the window to enter the home -the TVs and computers that were taken from the home by the burglar -the jewelry that was stolen by the burglar -the door and lock that was broken when the burglar entered the locked home that had been vacant for six months

the damage to the window frame that occurred when the burglary broke the window to enter the home

Under the DP-1 form, which of the following is true? - Burglary damage and theft are covered in a premium is paid for vandalism and malicious mischief -fire, lightning, and explosion of steam boilers is automatically covered -the extended coverage perils and vandalism and malicious mischief is part of the coverage if an extra premium is paid and is shown on the declarations page of the policy - the freezing and bursting of water pipes inside the dwelling is covered under the internal explosion coverage

the extended coverage perils and vandalism and malicious mischief is part of the coverage if an extra premium is paid and is shown on the declarations page of the policy

Which of the following would be covered under the Extended Coverage peril of "Volcanic Eruption"? - the damage to an exterior patio from a large bolder that was dislodged due to an aftershock - the cracked foundation of the covered dwelling resulting from the earthquake that caused the volcanic erruption - the exterior siding that was ruined by the ashthat settled on it from the erupting volcano - the cracks in the ceiling of the dwelling due to the shaking of the earthquake preceding the volcanic eruption

the exterior siding that was ruined by the ash that settled on it from the erupting volcano

The premises liability hazard covers occurrences taking place in or on all of the following locations EXCEPT -ways immediately adjoining the insured premises -the premises designated in the declarations -the premises alienated by the named insured -the final destination premises of the purchased/covered products

the final destination premises of the purchased/covered products

Which of the following would be covered under the Extended Coverage peril of Vandalism and Malicious Mischief? -the hole in the kitchen wall left by the insured's son when he threw a vase at his father during an argument - the graffiti painted on the siding and the smashed windows caused by a gang in the neighborhood while the insured was out for the evening - the light and bathroom fixtures removed from the dwelling after the insured left it vacant for 75 days -Missing jewelry and money taken while the insured was having a party

the graffiti painted on the siding and the smashed windows caused by a gang in the neighborhood while the insured was out for the evening

Which of the following would NOT be covered under an HO2 policy? the insured hit the side of his garage while backing his car out the insured hits and destroys his own fence while back his car out of his garage a boat inside the insured's attached garage that is destroyed when a tornado hits the garage the insured's neighbor hits and destroys a fence surrounding the residence premises

the insured hits and destroys his own fence while back his car out of his garage

All of the following are considered an "insured" under the policy, Except: the insured's 26 year old child who is away in graduate school the insured's 40 yeah old mentally challenged son who is cared fro in the home a person hired to walk the insured's dog the insured's 19 year old child who is away at college

the insured's 26 year old child who is away in graduate school

All of the following would be excluded under Coverage C-Personal Property, except -the insured's riding lawnmower -a diamond necklace that the insured has covered under a personal articles floater -the insured's champion show dog -the "accounts receivable" ledger that the insured brought home from the office

the insured's riding lawnmower

Commercial general liability insurance can be written on one of two different forms. They are: -the occurrence form and the acceptance form -the occurrence form and the claims-made form -the occurrence form and the claims-paid form -the claims-made and claims-paid form

the occurrence form and the claims-made form

Which of the following would be coverage under coverage C of the dwelling form? -the wheelchair of the insured's daughter that was destroyed during a fire at the insured dwelling -a large fishing boat stored in the garage of insured dwelling -accounts receivable data the insured had stored in his home office on a data card -the insured's stamp collection that were destroyed by a flood at the insured dwelling

the wheelchair of the insured's daughter that was destroyed during a fire at the insured dwelling

The earthquake endorsement of a HO policy excludes coverage for all of the following except: -flood caused wither directly or indirectly -trees, shrubs, and plants -exterior masonry veneer -the cost of filling land

trees, shrubs, and plants

Coverage would apply to an expensive fur coat under Coverage C of the HO program in which of the following cases? -up to 2500 if the fur coat was ruined when the insured's home was flooded -up to 1500 if the fur coat is stolen -up to 1000 if the fur coat was ripped to shreds by the insured's pit bull terrier -up to 2500 if the coat was left as a restaurant and when the insured went back to retrieve it, it was gone

up to 1500 if the fur coat is stolen

A person who is not an employee, who donates his/her time and who is not paid by the insured or anyone else for work performed is a -seasonal worker -temporary worker -volunteer worker -leased worker

volunteer worker

Under Coverage F-Med Pay to others, claims will be paid as long as they are reported: -within 1 year of the date of the accident -within 60 days of the date of the accident -within 3 years of the date of the accident -within 24 hours of the date of the accident

within 3 year of the date of the accident

Under the HO forms, when the insured requests a proof of loss form, the insured must complete one within: within 60 days of the loss within 90 days after the insurer's request within 60 days after the insurer's request within 30 days after the loss

within 60 days after the insurer's request

For the Liberalization of a policy to take place, the insurer must implement the change to the policy: -only after informing all insureds 30 days in advance -on the anniversary of the policy -within 60 days prior to or during the policy period stated in dec page -30 days prior to the policy period stated in the dec page

within 60 days prior to or during the policy period stated in dec page