Property and casualty

Workers compensation rating is developed by applying a rating bureau job classification rate to which of the following? Noncash compensation b) Minimum wage c) Job title d) Payroll

payroll

Businessowners liability coverage automatically includes all of the following liability coverages EXCEPT Contractual. b) Host liquor. c) Product. d) Pollution.

pollution

How many hours of continuing education must licensees complete every renewal period on the subject of ethics?

3

The Georgia Insurers Insolvency Pool is divided into how many separate accounts?

3

In addition to completing an approved course, drivers wanting to qualify for a defensive driving discount must not have committed any traffic violations or had any insurance claims against them in the last

3 years.

Under the Garment Contractor Floater of an Inland Marine policy, coverage while the property is in transit between the insured and the subcontractor is usually written on which basis?

All-risk

Which of the following entities is eligible for a businessowners policy? Places of amusement b) Automobile sales and servicing operations c) Manufacturing operations d) Convenience stores

Convenience stores

The supplementary payments section of the commercial general liability policy would cover

Court costs assessed against the insured in a suit

In Businessowners policies, a deductible does NOT apply to which of the following additional coverages? Debris removal b) Preservation of property c) Forgery or alterations d) Fire department service charge

Fire department service charge

The businessowners policy (BOP) extension coverage form for personal property off-premises is limited to

$10,000

An insured was judged at fault in an automobile accident. He has the 100/300 bodily injury liability coverage. Three other individuals were injured in the vehicle hit by the insured. They were awarded damages of $150,000, $75,000 and $75,000. What amount, if any, was not covered by his insurance policy?

$50,000

The businessowners liability coverage form will cover medical expenses incurred and reported within what maximum time period after the accident?

1 year

The personal property off-premises extension of dwelling forms provides limits of coverage up to

10% of Coverage C anywhere in the world.

An insured has a personal umbrella with a $2,000 self-insured retention (SIR. Assuming no other policy is involved, how much would the umbrella pay after a $12,000 personal injury liability claim?

10,000

All of the following statements about mutual insurance companies are correct EXCEPT a) Policy dividends issued by mutual companies are guaranted and not taxable b) Dividends allow policyholders to share in a mutual company's divisible surplus. c) Dividends are a return of unused premiums. d) Mutual companies issue policies referred to as participating.

Policy dividends issued by mutual companies are guaranted and not taxable

Policy limits are the maximum amount an insured may collect, or for which an insured is protected under the terms of the

Policy.

Which of the following is NOT available in a package policy? Fire legal liability b) Medical payments c) Professional liability d) Business auto liability

Professional liability

An insured has a personal auto policy with the following limits: 50/100/25. The number 25 refers to

Property damage coverage.

Coverage B - Personal and Advertising Injury Liability responds to claims arising from

Suits alleging infringement of a copyright

Which of the following statements regarding surety bonds is true? a) The principal is the designated beneficiary of the holder of the surety bond. b) The person who promises to fulfill the obligation of the bond is known as the obligee. c) The purpose of the surety bond is to guarantee that specific duties or obligations will be fulfilled. d) A surety bond is also known as third-party guarantee insurance because it always involves three parties.

The purpose of the surety bond is to guarantee that specific duties or obligations will be fulfilled.

When Symbol 7 is provided, which of the following statements is true with regards to newly acquired autos? They are covered only until the end of the policy term. b) They are not covered until the insurer is notified. c) They are automatically covered only for 30 days. d) They are covered if they are used to replace previously owned autos with that coverage.

They are covered if they are used to replace previously owned autos with that coverage.

Supplementary payments under the personal auto policy include all of the following EXCEPT Costs of appeal bonds. b) Unlimited cost of bail bonds. c) Loss of earnings up to $200 per day. d) Defense costs.

Unlimited cost of bail bonds

When is the company responsible for actions of its agents?

Whenever the agent is acting within the conditions of the contract

What is the main distinction between a hired auto and a nonowned auto?

Who owns the auto

If a car is stolen and left in a snow bank, causing the radiator to freeze and sustain heavy damage, is the damage covered by the auto policy?

Yes, freezing exclusion is removed if the car is stolen.

Medical benefits under workers compensation statutes are provided

without limit

What is the waiting period for transportation expenses coverage for a loss other than theft of a covered vehicle?

24 hours

Which of the following is most likely INELIGIBLE for coverage under the businessowners policy? a) An auto mechanic shop b) A fast-food restaurant c) A retailer with gross annual sales of $100.000 d) An office with total floor area of 5,000 square feet

An auto mechanic shop

Which homeowners form provides open peril coverage for dwelling (Coverage A) and contents (Coverage C)?

HO-5

Under what circumstances will a worker be paid for the first 7 days of being unable to work?

If the worker misses more than 21 consecutive days

A structure may be eligible for coverage under the National Flood Insurance Program if it meets all of the following requirements EXCEPT a) Is entirely over water. b) Is not located within the Coastal Barrier Resource System. c) Has 2 solid walls and a roof. d) Is principally above ground.

Is entirely overwater

Which of the following describes an insurer's responsibility for payment under a policy, as stated in the common policy provisions? Premiums b) Limits of liability c) Consideration d) Utmost good faith

Limits of liability

An agent's license has been suspended, but he continues to transact insurance for his existing clients. This will be considered a(n)

Misdemeanor

Guaranteeing future dividends is considered to be an unfair or deceptive act known as

Misrepresentation.

Which of the following would be covered under a building and personal property coverage form? Personal property while airborne b) Underground pipes c) Outdoor sign d) Building foundations

Outdoor sign

In reference to insurable interest, which of the following is NOT an element of insurable risk?

Personal

Although a businessowners policy (BOP) will cover fire damage legal liability, which of the following statements is true? Pollution caused by fire will be covered because pollution is covered in a BOP. b) There is a limit of $500 set on fire damage legal liability in all cases. c) The general aggregate applies to fire damage legal liability. d) The general aggregate does not apply to fire damage legal liability.

The general aggregate does not apply to fire damage legal liability.

Which of the following entities is considered the principal? The producer or agent soliciting the policy b) The director of the insurance company c) The head of the Department of Insurance d) The insurer issuing a policy

The insurer issuing a policy

An insured was involved in an accident that was caused by a tire blowing out. The insured was severely injured and incurred medical expenses of $100,000. The insured brought a recovery action against the manufacturers of the auto and the tires. The court held that the tire was the cause of the accident. Who is required to pay for this loss?

a. manufacturer of the tire

What is a sudden, unplanned and unexpected event, not under the control of the insured, resulting in injury or damage that is neither expected nor intended called?

accident

Which of the following provisions is usually found in homeowners policies and provides a replacement cost settlement to policyholders who carry adequate insurance? Coinsurance b) Actual cash value c) Pro rata d) Insurance to value

insurance value

All of the following are additional coverages under a homeowners policy EXCEPT Payment for reasonable repairs and debris removal following a covered loss. b) Outbuildings. c) Fire department service charge. d) Coverage for trees, shrubs, and other plants.

outbuildings

Which of the following could be insured with replacement cost coverage under the flood insurance program? An apartment building b) A shed c) A single-family home d) A garage

single family home