Property & Casualty Practice Exam

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

BOP liability covers medical expenses for an injury occurring on the insured's premises within what time period from the date of the injury?

1 year

Which insurance company department determines the probability of loss and sets the premium rates?

Actuarial

The Garage Coverage Form may be written for all of the following firms, except a:

Car rental agency

Elements of an insurable risk do not include:

Catastrophic perils

Collapse is defined as which of the following?

Caving in

Under the law of large numbers, as the number of units in a group increases, the:

Chance of predicting losses increases

Choose the true statement about the Builder's Risk Floater.

Coverage can be provided for farms

A(n) ____________ insurer is authorized to write insurance policies in a particular state

Admitted

Nebraska has adopted the ISO 2010 Businessowners policy, which means that the policy will pay up to $__________ for loss of business income or extra expense due to interruption of computer operations by a covered cause of loss.

$10,000

Outdoor signs attached to the building are covered up to what amount?

$2,500

Bob had a Personal Auto Coverage Form with liability limits of 100/300/50. In an accident for which Bob was liable, there were BI claims in the amounts of $80,000; $105,000; $115,000; and PD claims of $20,000 and $35,000. How much will his policy pay?

$280,000 BI and $50,000 PD

Jack hit a deer with his Honda. He had a $250 deductible collision coverage and $50 deductible Other Than Collision coverage. The damage to his Honda was $450. How much will he be paid?

$400

The Terrorism Risk Insurance Act of 2002 states that no act of terrorism will be certified by the Secretary if the act is committed in the course of a war declared by the Congress (except for Workers' Compensation), or property and casualty insurance losses are less than $___________ in the aggregate.

$5,000,000

Transportation expenses as a result of a collision loss will pay up to what dollar amount?

$600

Section II of a Garage Coverage Form will pay ___________ if an employee of a service station failed to tighten the oil filter and the leaking oil ruined the engine, causing $1,000 damage.

$900

Which statement is false?

Time element losses and direct losses are the same

An insured tenant may use up to ___________ of Coverage C to cover improvements made to the insured premises.

10%

A(n) ___________ is not eligible under the Businessowners policy?

10-story office building

An individual insurance producer who allows his/her license to lapse may, within _____ months from the due date of the renewal fee, reinstate the same license without the necessity of passing a written examination.

12

The Basic Cause of Loss Form in the Commercial Property Coverage Part covers damage caused by bacteria during what period of time?

12 months

The Earthquake endorsement coverage continues for up to ___________ hours after the policy expiration

168 hours

Under the Nebraska Workers' Compensation Act, a dependent child may, upon reaching age _____, continue to qualify if he/she is physically or mentally incapable of self-support.

19

Every individual applicant for an insurance consultant license must have been licensed as an insurance producer for the _____ preceding years or have successfully completed an approved program of study.

3

No disciplinary proceeding will be instituted against any licensed person after the expiration of _____ years from the termination of his/her license.

3

Property stored temporarily in another location is covered under the BOP for how many days?

30

Within how many days after an insured acquires new business property must the property be added to the BOP policy?

30

Market conduct records must be retained for at least ______ year(s) following any insurance business transaction.

4

A leased auto is an eligible vehicle if the lease contract is for a continuous period of at least ___________ months

6

For knowing violations, up to $5,000 for every act or violation with a maximum aggregate penalty of $50,000 in any _____-month period, and suspension or revocation of the license or certificate of authority.

6

Nebraska has adopted the ISO 2010 Businessowners policy, which means that the maximum annual gross sales for contractors are increased to $_____ million.

6

An insurer must give ____ days written notice (via registered, certified, or first class mail) prior to cancellation on any property, marine, or liability policy.

60

Applicants to the Nebraska Automobile Insurance Plan (Assigned Risk) must demonstrate that they have attempted to secure insurance in the standard auto markets in the ______ days prior to their application to the Plan, and were unable to secure coverage at rates not exceeding those rates available under the Plan.

60

When written with the Claims-Made Form under the Commercial General Liability Part, the Basic Extended Reporting Period provides ________ days after the policy period to report a claim.

60

The Period of Restoration begins ___________ hours after the time of loss?

72

A contract that allows an insured to be restored to the same financial condition as prior to the loss is considered:

A contract of indemnity

All of the following may be eligible for coverage under the Dwelling Program, except:

A farmhouse

A cause of loss, such as the theft of a car, is which of the following?

A peril

Which person is not an insured under the Business Auto Policy?

A person liable for an insured's work product

If a sidewalk is icy, it is causing which type of hazard?

A physical hazard

Which of the following is the best answer about changes made to a property insurance policy?

A property policy change is made by the insurer's written endorsement

All of the following are exclusions for the liability coverage in the Personal Auto Policy, except:

A vehicle driven by an unlicensed driver

Which of the following is not eligible for coverage under the Business Auto Coverage Form?

An employee injured using the employee's personal auto in insured's business

If someone takes a legitimately written check and changes the amount so as to obtain more money than the amount originally intended, that action is considered ___________ under the terms of a commercial crime policy form.

Alteration

Which of the following is not covered by the commercial crime form covering 'inside the premises', Robbery or Safe Burglary - of other Property?

An ATM hacked so that it dispenses money to the hacker

An insurer authorized to transact insurance in a particular state by that state's Department or Division of Insurance is called:

An admitted insurer

The CGL Coverage A - Bodily Injury and Property Damage Liability will not cover which of the following claims?

An employee is injured when a bookcase in the office falls on her

Which of the following is not covered under Advertising Injury Liability Insurance?

An incorrect price quote

The Extortion insuring agreement of Company E's commercial crime insurance would apply if money was surrendered to a kidnapper in order to ransom any of the following, except:

An independent contractor working with a manager

A Stock Insurance Company is:

An insurance company with a stated amount of capital stock owned by stockholders who exercise direction by means of corporate officers and a Broad of Directors elected by the stockholders

A client needs more information regarding the CGL policy. Which of the following statements about the Commercial General Liability Conditions (Section IV) under the Claims-Made Form will not be made by an agent in the discussion with his client?

An insured's insolvency relieves the insurer of any obligations under the policy

Choose the most accurate statement regarding the Assigned Risk Plan of Workers' Compensation.

Any employer who is unable to purchase coverage in the voluntary market can obtain coverage in the Assigned Risk Plan

The insured must pay which of the following in the event of a Workers' Compensation claim?

Any excess amounts incorrectly paid by the insurer

Which authority is created when a producer exceeds the authority expressed in his agency contract by taking an insured's premium check after the policy cancels for non-payment and the insurer accepts the check?

Apparent

In order to add specific property, such as jewelry, to a policy after the policy was initially written, a(n) ___________ is used.

Endorsement

When the insured and the insurer fail to agree on the amount to be paid for a property loss, the procedure is specified in the:

Appraisal Clause

Which statement is true of the Law of Large Numbers?

As the number of insured unites increases, predictability of losses improves

Which of the following autos is covered under Symbol 9 of the Business Auto Coverage Form?

Autos owned by the insured's employees while used in the insured's business

Choose the false statement about Dwelling Policy Form Coverage E.

Available in all Dwelling policy forms

A Lloyd's of London underwriter is responsible for doing which of the following?

Being individually liable for each risk they assume

Under the Businessowners Liability Coverage, after a claim has been paid, any recovery rights:

Belong to the insurer

The claims adjuster for the Employers Liability Insurance policy will not pay which of the following claims submitted by employees?

Bill is injured while playing softball at a company picnic at a nearby park

A ___________ is a uniform document that common carriers are required to issue to the shipper of the goods being transported.

Bill of Lading

Which of the following bodily injury situations is covered under Medical Payments of the Commercial General Liability Coverage Forms?

Bodily injury of any customer

The BOP includes which of the following coverages under the Business Liability coverage?

Bodily injury or property damage caused by an occurrence that takes place in the coverage territory during the policy period

Which 'auto' is covered under the Business Auto Coverage Form?

Borrowed truck used in the insured's business

The Business Income - Report of Values Endorsement estimates profits for the ___________.

Both past 12 months and upcoming 12 months

Anyone who is subject to the insurance trade practices law must maintain a record of complaints kept on a __________ basis with the number of complaints received and posted by the line of insurance for which the complaint was received.

Calendar year

___________ is not covered by the CGL Coverage B - Personal and Advertising Injury.

Breach of contract

Which of the following is not covered under the Equipment Breakdown Coverage?

Breakdown test

Coverage is open peril on the Jewelers Block Floater but there is no coverage for ___________ unless added as an optional coverage.

Broken or smashed show windows

Coverage D does not cover which of the following?

Cancellation of a lease

All of the following are true, except:

Coinsurance costs more

The Collision or Running Down Clause in Ocean Marine Insurance covers which of the following claims?

Collision damage to another vessel when the insured is liable

The BOP policy provides the same liability coverage as which of the following policies?

Commercial General

The Nationwide Marine Definition specifies risks that may be written under Marine Insurance. All of the following may be insured under marine policies, except:

Commercial buildings

All of the following are types of Professional Liability Insurance, except:

Commercial umbrella insurance

___________ insurance is not a basic section provided in the Garage Coverage Form

Comprehensive

When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of:

Concealment

A contract in which both parties bargain in good faith is an example of the:

Concept of utmost good faith

Which of the following is not covered under the Installation Floater?

Construction equipment

The Farm Liability Coverage Form provides all of the following coverages, except:

Contractual liability

Ellen uses her digital equipment to create her own copies of legitimate looking money orders, which she fills out using the name of a local banker. When the fraud was discovered, a claim was filed under which of the following insuring agreements?

Counterfeiting

Choose the correct statement regarding coverage under the Products Exposure Liability Coverage.

Coverage applies to the bodily injury (BI) and property damage (PD) the product causes, but not to the product itself

Which of the following is an express warranty on an ocean marine policy?

Coverage exclusions

Which statement is false regarding uninsured motorist coverage under a Personal Auto Policy?

Coverage includes someone using the vehicle without permission

Choose the correct statement concerning the Special Cases of Loss Form.

Coverage is provided for losses caused by Risks of Direct Physical Loss except as specifically limited or excluded

Which of the following explains why bodily injury to an employee is excluded in Commercial General Liability Insurance?

Coverage is provided under Workers' Compensation

Choose the false statement about the Business Auto Coverage Form.

Covers injuries to employees

Which of the following statements is correct regarding the inland marine policy for Commercial Articles Coverage?

Covers property of others such as cameras, film, and related equipment and accessories used for business purposes

An insurance agent must lead a discussion with business leaders about Workers' Compensation. Which of the following statements should not be included due to its inaccuracy?

Employees may elect not to be covered only at policy inception or renewal

Which statement is false regarding Workers' Compensation?

Employees may elect not to be covered only at policy inception or renewal

Which loss is covered under Collision coverage?

Damage to a parked auto that rolled into a tree

Business Auto Policy liability coverage does not apply to which of the following?

Damage to property in the insured's care

Which loss is not included under Other Than Collision coverage?

Damage to the auto due to crashing into a tree

Section II (Liability) of the Garage Coverage Form does not cover:

Damage to the customer's car in the insured's care

The ___________ is the part of a property policy that gives basic information such as the named insured, a description of the property, the location of the property, and the amount of premium.

Declarations

The part of an insurance contract that varies with each individual policy, but is still a mandatory part of the policy, is the:

Declarations

What is making any false oral or written statement maliciously critical or derogatory of any insurer's financial condition that intends to injure someone in the business of insurance called?

Defamation

Choose the statement about direct or indirect losses that is incorrect

Direct losses include additional living expenses

In explaining the Workers' Compensation law, which of the following statements should not be made?

Employers are liable for injuries occurring outside the course of employment

Water damage cause by which of the following is covered loss?

Discharge caused by a plumbing failure

A Retroactive Date is used in the ___________ Form.

Discovery

Which of the following perils is not included in the Special Causes of Loss under the Farm Property Coverage Form?

Dishonest or criminal acts, pollutants, or contaminants

Which of the following determines a loss ratio?

Dividing losses plus loss reserves by total earned premiums

All of the following are true, except:

Dram Shop Liability protects against legal liability that may be imposed on a seller of a packaged liquor store

Which of the following is not included in the standardized policy structure for insurance policies?

Duties

The Limit of Liability under Medical Payments in the Personal Auto Policy is shown in the Declarations as the maximum the policy will pay for which of the following?

Each person injured in any one accident

All of the following are true of insurance, except:

Eliminates risk

Which of the following may broaden the coverage found in an insurance policy?

Endorsements

Which coverage is not an Additional Coverages in the Businessowners Coverage Form?

Equipment breakdown

Which coverage is not automatically included in the Businessowners Policy?

Equipment breakdown

An insurance policy that protects the producer is known as which of the following?

Erros and Omissions

Which of the following describes the purpose of the Gramm-Leach Bliley Act?

Established privacy protection for consumers

___________ is not included in the definition of Money under Commercial Crime Coverage.

Evidence of debt

The ___________ branch of the state government influences public policy regarding insurance laws.

Executive

Which of the following powers describes the authority stated in an agent's agency contract?

Express

All of the following forms are one of the 8 primary Commercial Crime policy forms, except:

Extortion

Which of the following is not considered an unfair claim practice?

Failing to pay a claim prior to the receipt of a proof of loss

A ___________ is not included in the definition of mobile equipment

Farm 3/4 ton pickup driven occasionally on public roads

All of the following statements are incorrect, except:

Fire damage to an insured residence is considered a direct loss

Under the Commercial Package Policy, the ___________ is responsible for premium payments.

First named insured

All of the following are coverages provided added under the Farm Broad Form, except:

Flood loss to Livestock

Under Marine Policies, the term uncontrolled means:

Forms that are not standardized by any rating bureau: consequently the forms will normally differ from insurer to insurer

The Commissioner, Director, or Superintendent of insurance is responsible for all of the following, except:

Make insurance laws when appropriate

Insurance for the amount an insured is legally obligated to pay for loss to a customer's vehicle while in the insured's care for repairs is called ___________.

Garagekeepers coverage

Which of the following best defines the purpose of Part Two of the Workers' Compensation Policy?

Handle suits against the employer by an employee or another person because of the injury to the employee not covered by Workers' Compensation

Choose the correct statement regarding the Businessowners Policy?

If content coverage equals 100% of the average monthly values for the preceding 12 months, an automatic 25% increase in content coverage is provided to offset seasonal variations in stock values

A producer's unwritten authority that is assumed by the public is known as:

Implied

Why would a large employer not be likely to self-insure Workers' Compensation coverage?

Must guarantee the ability to meet obligations

All of the following are false about Damage to Your Auto, except:

In the event of total loss, adjustment will be made for the physical condition of the vehicle

Which of the following is true about Damage to Your Auto coverage?

In the event of total loss, adjustment will be made for the physical condition of the vehicle prior to the loss

An agreement that pays on behalf of another party is which of the following types of insurance contracts?

Indemnity

An agent that enters into agreements with more than one insurer is which of the following?

Independent

For which of the following persons is the Drive Other Car endorsement intended?

Individuals who do not own an auto

The Privacy of Insurance Consumer Information Act does not apply to:

Information about companies or individuals who obtain products or services for business, commercial, or agricultural purposes

Which of the following is covered under Uninsured Motorists Coverage in the Personal Auto Policy?

Injuries of an insured due to an accident caused by the driver of an uninsured vehicle

Of the insurance mechanism, the following are all true, except:

Insurance is designed to cover both intentional and unintentional losses

A business entity acting as an insurance producer is required to obtain a(n) ___________ license:

Insurance producer

Choose the correct statement regarding the BOP Protective Safeguards Endorsement.

Insured is required to maintain the safeguards listed in the endorsements such as the automatic sprinkler systems, automatic fire alarms and/or security services

Uninsured Motorist coverage provides coverage for which of the following?

Insured's son took the insured's car without asking permission

Choose the statement that is true about the Workers' Compensation Assigned Risk Plan.

Intended for employers who are unable to purchase in the voluntary market

Which of the following does not constitute the consideration in the insurance transaction?

Issuance of a binder

All of the following are true of automobile physical damage Coverage D, except:

It covers damage to the insured auto and to another auto with which it collided

What is the benefit of the classification system under Workers' Compensation?

It is to categorize employees according to their common occupational risk exposure

Which of the following is a description of the Second Injury Fund under Workers' Compensation Insurance?

It is usually funded by assessments of insurers and self insurers

Choose the true statement about the BOP Time Element part of the Utilities Services Endorsement?

It pays for loss of business income or extra expense at the described premises caused by the interruption of service at the described premises

A commercial crime policy form with the Robbery or Safe Burglary of Other Property insuring covers which of the following losses?

Jewelry store windows and glass display cases are destroyed during a burglary

Mobile equipment does not include which of the following?

Land motor vehicle designed for road use

Under the water damage caused by accidental discharge peril on the Broad Form Causes of Loss Form, which of the following is not covered?

Leakage from downspouts

Tom buys an office condominium for his accounting business and covers it under a Condominium Commercial Unit-Owners Coverage Form. Which of the following is NOT covered business personal property under this coverage form? The quiz is currently paused.

Leased appliances

___________ is a Loss Condition under the Business Auto Coverage form.

Legal action against the insurer

The insurance company will use which of the following policy provisions to broaden coverage with no increase in premium for all policyholders?

Liberalization

Which clause allows the insurer to broaden coverage with no increase in premium and no endorsement?

Liberalization

An insurer will not pay which of the following in the event of a Workers' Compensation claim?

Loss of insured's earnings because the insurer requested the insured come to court

Farm property loss conditions include which of the following?

Loss to pairs or sets

A(n) ___________ provides coverage for commercial crime losses which occur during the policy period and are discovered within a specified time.

Loss-Sustained form

Which crime coverage form does a bank manager need to cover the theft of money from a bank cash drawer by an employee?

Loss-Sustained form

For Dwelling Policies actual cash value is adjusted for all of the following factors except: such as depreciation, deterioration, and obsolescence.

Marketability

All of the following are true of a Businessowners Policy, except:

Medical expenses are made only if the insured is legally liable

Which of the following is not true about a Reciprocal Insurance Company?

Members are grouped into syndicates

A ___________ has the responsibility of taking bank securities to a sister bank every morning.

Messenger

Which term describes the insured, partners or employees that have care and custody of insured property outside the insured premises?

Messenger

Which country is not included in the CGL coverage territory?

Mexico

When writing the application for homeowners insurance, B's agent asked him if he had any theft losses in the past 3 years. B answered 'no,' knowing that he was a theft victim 3 times in the past 3 years. B is guilty of which of the following?

Misrepresentation

When entered correctly on the BOP Declarations, the Money and Securities Optional Coverage will cover which of the following?

Money and securities against theft, disappearance or destruction

Which Workers' Compensation type is only available through a state fund?

Monopolistic

Which of the business auto coverage forms provides insurance for a contract carrier that transports its own goods in addition to the goods owned by others?

Motor Carrier Coverage Form

Which of the following is excluded when stolen from an armored car?

Motor vehicles

The DP-3 provides what percentage of coverage for damage to the insured's dwelling when a storm caused a black-out at the utility works building for 24 hours?

No coverage

Which term describes the situation that occurs when two policies covering the same property contain different policy periods?

Nonconcurrency

One even with continuous exposure to the same harmful conditions is called a (n)

Occurrence

Exclusions are perils that are not covered in the policy and include each of the following, except:

On-premises utility failure

An insurance agent suggested that the insured protect his livestock under a Livestock Coverage Form to provide for which of the following situations?

One of Frank's horses died due to unexpected freezing weather

When coverage applies to a property loss by all perils except those specifically excluded, the policy is written on a(n) ___________ basis

Open Peril

Which one of the following is not an unfair claims practice? The quiz is currently paused.

Paying claims without conducting an investigation based upon all information

During the ___________ the Extra Expense form pays the necessary expenses incurred by the insured.

Period of Restoration

Which of the following types of property would be covered by the Guest's Property endorsement to a commercial crime policy?

Property stored in a hotel safety deposit box by someone renting a room

Which of the following is not an exclusion under the Umbrella policy?

Personal injury

Policyowner P insured his house under a Homeowners Policy and has just finished painting the inside and has some leftover paint that he stores in the basement. What kind of hazard does the stored paint present?

Physical

Hull insurance on an ocean marine policy covers the vessel for which of the following?

Physical Damage

An insured contract includes all of the following (under the Premise and Operations Exposure), except:

Pollution liability

In addition to conducting an accounting business in his office condo, the insured also goes to client's offices and homes for appointments, which represents the ___________ exposure.

Premises and Operations

Which of the following is not a contingent liability exposure?

Premises liability exposure

A CGL policy with a general aggregate limit will not cover which of the following?

Product recall

The Extension Act of 2005 provides for a Terrorism Insurance Program established in the Department of the Treasury and requires all ___________ insurers to participate in the Program.

Property and casualty

Section II (Garage Liability) of the Garage Coverage Form covers:

Property damage for which the insured is legally responsible

All of the following are types of insurers, except:

Proprietary insurers

An underwriter will consider each of the following factors when considering a risk, except:

Rates

Which of the following statements is not correct regarding rates and premiums?

Rates may only be excessive if the insurer is making up for lost reserves

A ___________ is allowed to charge a subscriber more for a pro rata share of losses

Reciprocal Insurer

When determining a worker's employment status, the employers do not have which of the following rights?

Reduce employee work hours

All of the following are true of the Fair Credit Reporting Act, except:

Regardless of what the consumer learns about the unfavorable information, the report can be changed by court action only

ABC Insurance has exceeded its loss expectations and needs which of the following insurers to assume future high risk exposures?

Reinsurance

Which of the following is the best definition of Actual Cash Value in property insurance?

Replacement cost minus depreciation

Which of the following is not within an agent's authority?

Represent the insured's interest

Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year?

Residual market

Self-insurance is an example of which of the following?

Retaining the risk

Which term describes the probability of loss?

Risk

Through whom do direct writing companies normally market?

Salaried employees

The BOP excludes which of the following property?

Satellite dish located on the premises

Choose the peril that is not covered under the Dwelling Broad Form

Smoke damage from industrial operations

Which type of risk involves the possibility of loss or gain?

Speculative

Choose the property insurance provision that best serves to prevent the insured from collecting twice for the same loss?

Subrogation

___________ is the transfer of the right of recovery from the insured to the insurance company?

Subrogation

Which statement is false regarding the Businessowners Policy?

Supplementary Payments include first aid expenses

Which of the following can place business with an unauthorized insurer?

Surplus lines producers

Which of the following statements is true regarding the Dwelling Form?

The Basic Form covers the peril of fire

All of the following are true in regard to commercial property coverage, except:

The Causes of loss- Basic Form covers water damage

Which of the following policies is most similar to the Businessowners Policy?

The Homeowners Policy

Choose the true statement concerning the Limit of Liability under the Business Auto Coverage Form.

The Limit of Liability is the most the policy will pay regardless of the number of autos, insureds, premiums paid, claims made or vehicles involved in the accident

The CGL policy includes two coverage forms, and which of the following is not true about those forms?

The Occurrence form is based on when the loss is reported

Which of the following statements is false about the CGL policy?

The Pollution Extension Endorsement includes clean up costs

Which of the following claim settlements is correct if an employee suffered from a work-related back injury when he was hired, and while working for his new company, he fell down a flight of stairs and reinjured his back?

The Second Injury Fund will pay compensation to the extent the prior disabling injury contributed to the claim

When an employer chooses to provide Workers' Compensation coverage to his employees, even though the law does not require it, the employer must provide which of the following under the Voluntary Compensation Endorsement to a Workers' Compensation Policy?

The class of employees to be covered

Which of the following is not true about insurance financial ratios?

The combines ratio sums the operating and expense ratios

Which of the following is true about a Stock Insurance Company?

The company is directed by officers and directors and has a stated amount of capital stock owned by stockholders

Choose the incorrect statement regarding Workers' Compensation.

The cost is paid by the employee

Which statement is false regarding Workers' Compensation?

The cost is paid by the employee

Which of the following is incorrect?

The definition of robbery includes forcible entry into locked premises after business hours

All of the following are true about Temporary Partial Disability benefits, except:

The employee will never return to previous wages

Choose the statement regarding the Medical Payments Coverage of the Business Auto Coverage Form that is true.

The form does not automatically include Medical Payments Coverage

All of the following are correct, except:

The general rules of conduct and duties are found in the Insuring Agreement

The insurer's liability would not exceed which of the following in the event an auto is insured by two automobile policies with the same insurance company?

The highest limit of the two policies

Temporary Total Disability may be defined as:

The inability to return to any employment while recovering

Which of the following injuries is not covered under the Workers' Compensation policy?

The injury occurs on the way to work

Under Coverage C of the Special Dwelling Form, all of the following are included, except:

The insured's golden retriever

Which of the following is correct about the right of salvage?

The insurer has the right to take possession of damaged property after payment of a loss

Choose the correct statement regarding Inspections and Surveys of the Businessowners Policy.

The insurer has the right, but is not obligated, to make surveys at any time

All of the following are true of the supplemental extended reporting period associated with the claims made form of the Commercial General Liability Coverage Part, except:

The insurer may cancel it after the premium has been paid by the insured

Which of the following is true if an owner of a warehouse has a Commercial Property Policy written on it for $300,000, and wants to transfer the policy when the property is sold to a new owner?

The insurer must give written consent before the policy can be transferred

Choose the situation that would not reduce the General Aggregate Limit under a CGL policy form.

The insurer pays a claimant injured by a product made by the insured

All of the following are correct, except:

The insuring clause personalizes the policy as to who and what are insured

Which of the following property is not covered under Coverage A of a Dwelling Policy?

The land on which the dwelling is located

An insurance producer's license will contain all of the following information, except:

The licensee's Social Security number

All of the following are true, except:

The limits of the policy that are stated in the Declarations are the maximum amount payable for the life of the policy

Which of the following best describes the per occurrence limit in a Commercial General Liability policy?

The most the policy will pay for a loss arising out of a single occurrence

Which of the following persons cannot collect a claim payment under Uninsured Motorist coverage?

The owner of a parked car struck by a falling object

All of the following are correct, except:

The owner of clothing to be cleaned would be a bailee

The annual percentage of increase under the Optional Coverage - Inflation Guard in the Building and Personal Property Coverage Form applies to which of the following?

The policy at the rate of 1/365 each year

All of the following are true of Law of Large Numbers, except:

The prediction of individuals losses is based exclusively upon past experience

Choose the statement that is correct regarding the Supplemental Extended Reporting Period.

The premium is a one-time charge and fully earned at issuance

FOB (Free on Board) Point of Destination is best described as which of the following?

The seller is responsible for the property being transported until it has been delivered

A physical hazard describes which of the following?

The storage of flammables near a furnace

When Linda's company was tricked into making an unauthorized wire transfer on the basis of fraudulent, emailed instructions, the insurer with whom she had her Commercial Crime policy covering Computer Fraud denied her claim because:

This peril is covered under Funds Transfer Fraud, not computer Fraud

The definition of 'securities' as used in a commercial crime policy form includes:

Tokens

Insurance is the _____________ of risk

Transfer

Which risk management type is shifting the risk of loss to a larger homogeneous group?

Transferring a risk

All of the following are true of dwelling policies, except:

Trees, shrubs, and plants are covered for up to $1000 total

Risk:

Uncertainty or chance of loss

All of the following are true of the Building and Personal Property Coverage Form, except:

Under Preservation of Property Coverage, there is named-peril coverage for 10 days

All of the following are true of Businessowners Coverage Form - Section II, except:

Under property damage, coverage applies to property that the insured owns, rents and occupies

Under Section II of the Businessowners Coverage Form which of the following is not true?

Under property damage, coverage applies to property that the insured owns, rents and occupies

Which coverage protects the insured against drivers who do not have adequate auto liability insurance limits?

Underinsured Motorist Coverage

An Aleatory contract is a contract where the monetary values of the parties' performance are __________.

Unequal

Choose the claim that is covered under the DP-3

VMM to a dwelling vacant for 30 days before the loss

A building with no physical contents and no occupants is said to be which of the following?

Vacant

Which of the following is correct regarding damage caused by vandalism under the Basic Dwelling Form?

Vandalism coverage must be added by endorsement

Any person employed by the insured specifically for the purpose of having the care and custody of property inside the premises is defined as a:

Watchperson

Which of the following constitutes the acceptance of an offer?

When an insurer issues a binder

When is the freight revenue considered part of the cargo's limit of insurance?

When the shipper pays part of the carrier's freight bill without regard to deliver

Which of the following is true about specialty or professional liability insurance?

Written on non-standard forms

In describing the Building and Personal Property Coverage Form, an insurance agent would not include which of the following in the description?

automobiles held for sale or vehicles licensed for road use are covered

An insurance consultant license may be not obtained in which one of the following lines of insurance?

limited line credit

Inland Marine policies generally cover property that is in which of the following locations?

on land only


संबंधित स्टडी सेट्स

WH - Chapter 29.4 - The Great War - Section 4 - A Flawed Peace

View Set

Reg SU #16 Business Organization

View Set

Chapter 22 Head and Spinal Cord Injuries EAQ

View Set

APUSH REVIEW - [PERIOD and COURSE OUTLINE]

View Set