Property &Casualty with Ethics

When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as a(n): A Aleatory contract B Contract of adhesion C Conditional contract D Unilateral contract

C. Conditional Contract

If renewal fees are paid and continuing education requirements are satisfied, but an agent has no active Notice of Appointment on file with the Commissioner, the license will be: A Terminated B Cancelled C Revoked D Placed on inactive status

D

Which one of the following funds is considered to have been stolen, and can result in their punishment under the law, if an agent puts them to personal use? A Renewal commissions received B Premiums collected C Expense reimbursements D First-year commissions received

Premiums collected

An underwriter will consider each of the following factors when considering a risk, except: A Claim history B Rates C Nature of the risk D Hazards

Rates

ntering into an agreement that would result in an unreasonable restraint of, or monopoly in, the business of insurance is considered: A Deceptive advertising B Discrimination C Defamation D Boycott, coercion, or intimidation

d

Which part of a property policy is in the Insuring Agreement? A The amount of coverage B The name of the insured C Specified term of the policy D List of the named perils

the list of named perils

In the event that an organizational license terminates, the organization may continue to transact insurance under the former license if a new application for an organizational license is submitted within: A 30 days B 90 days C 45 days D 60 days

30

B is an insurance agent in California. B offers to effect renters insurance for no charge if the applicant agrees to rent property from an apartment complex in which B has financial interest. B is subject to: A A $10,000 fine B License suspension or revocation for up to 1 year C License revocation for up to 5 years D Probation and 100 hours of community service

B

Death benefits provided by Workers' Compensation usually provide coverage for reasonable burial expenses up to what limit? A $2,000 B $10,000 C $1,000 D $5,000

B

For Pet insurance, a chronic condition is one that: A Is present from birth and contributes to illness B Can be treated or managed, but not cured C Can be cured with proper treatment D The pet displayed signs of having before the effective date of the policy

B

Under Part A of a Personal Auto policy, which of the following is not an insured? A A foreign exchange student living with the insured for the school year B A thief involved in a high-speed police chase C A spouse living in the same household D The resident teenage son of the insured who drives the vehicle without a license

B

Under the Voluntary Compensation Endorsement to a Workers' Compensation Policy, when an employer desires to provide Workers' Compensation Coverage to the employees, even though the law does not require the employer to provide coverage, they must provide which of the following? A The benefits of the designated state's Workers' Compensation law B The class of employees to be covered C The number of years the business has had employees D The designated beneficiary

B

Unlike the CPP, the BOP will not exclude coverage for which of the following? A Outdoor fences and television antennas B Foundations and excavation C Aircraft and watercraft D Land and growing crops

B

What is the primary difference between the Truckers Coverage Form and the Motor Carrier Coverage Form? A The Motor Carrier Coverage Form is not suitable for insuring trailers B The operating right granted by the public authority, for example, the truckers form says a trucker is someone engaged in the business of transporting property for hire while the motor carrier is engaged in transporting of property or passengers C The Motor Carrier Coverage Form is designed for those firms that haul or tow motor vehicles D The Motor Carrier Coverage Form is designed for those firms that haul motorized construction and/or farm equipment

B

When a producer, agent, or broker makes a false statement about the benefits or the nature of an insurance policy, the person is guilty of: A Twisting B Misrepresentation C Intimidation D Defamation

B

Which type of policy reporting tail may be added to a CGL Policy written on the Claims-Made Form? A Midi B Maxi C Multi D Mini

B Maxi

Transportation expenses provided by the BAP include coverage for a replacement vehicle at up to how much per day? A $30 B $20 C $25 D $50

B. $20

L owns a home covered by an HO-3 for $200,000. How much coverage does L have for additional living expenses if the home becomes uninhabitable due to a fire loss? A $20,000 B $40,000 C $80,000 D $200,000

B. $40,000

Damages from libel would be covered under which type of coverage? A Personal and advertising injury B Bodily injury and property damage C Medical payments D Professional liability

B. BI and PD

Which of the following forms cannot be added to a Commercial Package Policy? A Farm Property and Liability B Businessowners Policy C Commercial General Liability D Commercial Auto

B. Business owners policy

In California, insurers must give at least _____ days' notice before the end of the policy period in the case of nonrenewal of the Personal Auto Policy. A 10 B 30 C 60 D 20

B.30

A BAP covering only Non-owned Autos would include which Symbol? A Symbol 8 B Symbol 7 C Symbol 9 D Symbol 6

C

Under Additional Coverages of the BOP, preservation of property is covered: A On a Broad Form perils basis for 30 days B On an open perils basis for 60 days C On an open perils basis for 30 days D On a Broad Form perils basis for 60 days

C

Which of the following is not considered a common peril covered by a Professional Liability policy? A Malpractice B Conflict of interest C ERISA responsibilities D Errors & Omissions

C

Which statement is true regarding the Businessowners Policy? A The Businessowners Policy automatically includes a coinsurance clause of 80% or higher B The Businessowners Policy automatically includes a coinsurance clause of 80% C Coverage for the building and contents is for replacement cost with no coinsurance clause D Coverage on the building is replacement cost, and on the contents is actual cash value Good Job!

C

Wrongful acts covered by an Employment Practices Liability Policy include all of the following, except: A Demotion of a whistleblower B Harassment C Fraudulent acts D Wrongful termination of employment

C Fraudulent acts

Which of the following defines risk? A Chance of loss B Cause of loss C Amount of loss D Financial interest in property

Chance of Loss

A firm that transports goods of others, rather than its own goods, for hire and that wants liability and physical damage coverage on the autos transporting those goods should purchase a: A Business Auto Policy B Non-owned Goods Policy C Specified Peril Policy D Trucker's Coverage Form

D

Which of the following is the broadest crime definition? A Robbery B Burglary C Larceny D Theft

D. Theft

A person who handles insurer funds in a trust capacity is a(n): A Agency B Agent C Fiduciary D Producer

Fiduciary

All of the following statements regarding materiality are correct, except: A It is determined by the event B It is defined as any disclosure or lack of disclosure would change the insurer's decision to issue a policy C It is determined by the facts that a party failed to communicate or miscommunicated D It is judged by the importance or relevance to the contract

It is determined by event

A typical Outboard Motor and Boat policy provides which of the following coverages?

Physical Damage

National Flood Insurance policy, losses to which of the following could be paid on a replacement cost basis

Single family homes

Under Coverage A of the Homeowners Policy, all of the following are covered, except: A Structures that are attached to the dwelling B Materials located on or next to the residence premises used to construct, alter, or repair the dwelling C The land on which the dwelling is located D The dwelling on the residence premises

The land on which the dwelling is located

when does coverage under an NFIP policy begin?

Thirty days after the date of application

When a producer exceeds the authority expressed in the agency contract and the insurer does not take action, which of the following types of authority is created? Actual B Apparent C Implied D Express

apparent

When an auto has coverage under two or more auto policies (or under more than one part of a single policy) with the same insurer, the insurer's liability would be: A The combined limit of the two B The highest limit of the two C The limit of the last one purchased D The limit of the first one purchased

b

Which of the following best describes FOB (Free on Board) Point of Destination? A The buyer takes interest when the property is delivered to shipside B The seller retains interest in the property until after the trip is completed C The buyer takes interest when the property leaves possession of the seller D The seller retains interest until the property is placed on board the ship

b

Which of the following is true about coverage provided by the Inside the Premises - Theft of Money and Securities Insuring Agreement? A It does not cover damage to the exterior of the premises B It covers loss to safes on the premises C It covers money and securities outside the premises, while in the custody of an armored vehicle company D It covers money and securities outside the premises, when in the custody of a messenger

b

All of the following are true of a Yacht Policy, except: A Protection and Indemnity is an included coverage B A yacht is covered regardless of its location C It includes both property and liability coverage D Lay-up warranties are permitted

b. a yacht is covered regardless of its location

A Garage Coverage Form is advantageous for which of the following reasons? A It establishes excess coverage for auto repair shops if their BAP limits are insufficient B It provides coverages over a general liability policy that would drop down when the underlying liability policy denies coverage C It provides liability and physical damage coverage that is usually excluded from the BAP and CGL policies D It reduces the premium amount when business autos are in storage

c

Regarding surety bonds, the party for whose benefit the bond is written is the: A Surety B Guarantor C Obligee D Principal

c

The Personal Articles Floater is similar to which of the following endorsements? A The Guaranteed Replacement Cost Endorsement B The Personal Property - Replacement Cost Endorsement C The Scheduled Personal Property Endorsement D The Special Personal Property Endorsement

d. The scheduled personal property endorsement

All of the following are true of insurance, except: A It eliminates risk B It transfers risk C It is a means of sharing loss D It protects against uncertainty

eliminates risk

The Insuring Agreement of a policy describes: A The duties of the insured in the event of a loss B Perils that are covered C Perils that are not covered D Transfer of the rights of recovery

perils that are not covered

A property broker-agent must complete at least how many continuing education hours every 2 years? A 27 hours, including 3 hours of ethics B 36 hours, including 3 hours of ethics C 18 hours, including 3 hours of ethics D 24 hours, including 3 hours of ethics

c

All of the following are excluded under a BAP, except: A Racing B Completed Operations C Property Damage D Pollution

c

The Personal Auto Policy may be used to insure all of the following, except: A A conversion van B A motorcycle C A farm pickup D A station wagon

B

Which of the following losses are excluded under most Yacht policies?

-Injury suffered by a passenger in a waterskiing accident -Collision damage to another boat for which the insured is liable Both A and B Neither A nor B Answer: A

The Commissioner may suspend or revoke a license or certificate of authority, not to exceed ______ year(s), of anyone for willfully violating the prohibition on arranging for the sale of free insurance. A 3 B 2 C 4 D 1

1

As established by common law, duties that may expose directors and officers to loss include all of the following, except: A Duty of Diligence B Duty of Loyalty C Duty of Obedience D Duty of Legality

D

During a state of emergency in California, insurers must offer a grace period for premium payments that lasts how many days? A 10 days B 60 days C 45 days D 30 days

60 days

Notice of nonrenewal that applies to a residential property policy must be delivered at least how many days before policy expiration? A 75 days B 80 days C 60 days D 120 days

75 days

A group of people rob an armored car, taking several thousand dollars of jewels. The loss would be covered by which Commercial Crime Insuring Agreement? A Outside the Premises B Employee Theft C Inside the Premises - Theft of Money and Securities D Inside the Premises - Robbery or Safe Burglary of Other Property

A

What must an insurance broker have in place in order to be able to receive, directly from an insured, any compensation or fees for services to be provided? A life, accident & health insurance license B An established place of business in California C A Brokers Service Contract D Approval from the Insurance Commissioner

A Brokers Service Contract

Products liability on the CGL is based on what common law principle? A Implied warranty B Fiduciary duty C Rescission D Estoppel

A Implied Warranty

Computer-based rating, rather than manual rating, makes rating the BOP less complicated. Variables that are taken into account during computer-based rating include all of the following, except: A Loading charges B Territory, such as climate variables C The insured's request for increased coverage D Fire protection measures and type of construction

A LOADING CHARGES

A driver who transports both passengers and cargo for commercial purposes would use which Commercial Auto form? A Motor Carrier Coverage B Business Auto C Truckers Coverage D Garage

A Motor carrier cover age

Which statement is false regarding the National Flood Insurance Program (NFIP)? A NFIP policies provide coverage for direct and indirect loss to covered property as the result of flooding B The NFIP is administered by the Federal Insurance Administration under FEMA C The Regular Program allows coverage on a residential dwelling up to $250,000 D The Emergency Program applies after a community has agreed to, but has not yet completed, the process to adopt flood control measures

A NFIP policies provide coverage for direct andindirect loss to covered property as the result of flooding

ll of the following are considered incompetent persons who do not have the legal capacity to enter into a contract, except: A Retired persons B Minors C People under the influence of drugs or alcohol D Mentally incompetent persons

A retired persons

Which of the following bond relationships most closely resembles the insurer/insured relationship? A Surety/Obligee B Obligor/Principal C Principal/Surety D Obligee/Principal

A Surety / obligee

Which of the following is NOT an eligibility requirement for Low Cost Auto Insurance in California? A Vehicle to be insured cannot be worth more than $30,000 B Applicant's annual household gross income cannot exceed 250% of the federal poverty level C Applicant cannot have had any at-fault accidents involving bodily injury or death within the past 3 years D Applicant must be at least 16 years of age

A vehicle to be insured cannot be worth than $30,000

In the event of a total loss covered by the Building Personal Property Coverage Form, the Debris Removal Additional Coverage will pay up to what amount for debris removal in addition to the policy limits? A $10,000 B $25,000 C $5,000 D $1,000

A. 10,000

When the stock option is shown in the Declarations, the Replacement Cost Optional Coverage of the Building and Personal Property Coverage Form applies automatically to all of the following types of property, except: A Personal property of others B The building listed in the Declarations C Merchandise held in storage or for sale D The insured's business personal property

A. Personal property of others

Business income is defined as: A Pretax net income plus normal continuing operating expenses, including payroll B Pretax net income and operating expenses, excluding payroll C Additional expenses incurred during the period of restoration D Optional expenses to reduce the amount of loss

A. Pretax net income plus normal continuing operating expenses, including payroll

Which of the following are contained in the Common Policy Declarations? -The policy period -The name and mailing address of the insured -Conditions specifying the insured's duties following a loss -The insured's premium for each coverage part purchased

Answered: A, B, D

A Professional Liability Policy would cover which of the following? A Employment Practices Liability B Errors and omissions C Work-related injuries D Motor vehicles

B

Burglary applies to which of the following crime claims? A A customer shoplifts merchandise from a store B A thief breaks down a door to enter a store and steal merchandise C A robber threatens the cashier with a gun and leaves with the money from the cash drawer D A cashier steals money from the cash drawer

B

Manufacturers, wholesalers, or retailers all have potential legal liability associated with a product that may arise from each of the following, except: A Strict liability B Expected or intended injury C Breach of warranty D Negligence

B. Expected or intended injury Legal liability to those associated with the manufacturing, wholesaling, or retailing of a product may arise from negligence, breach of warranty, or strict liability. Liability arising out of expected or intended injury is not covered.

Which statement is accurate concerning Coverage D - Additional Living Expense of the Homeowners Policy? A The coverage will pay for all the insured's living expenses until the property is restored B The coverage will pay for any increase in living expenses required to maintain the insured's normal standard of living C The coverage will pay until the property is restored, plus 30 days relocation expense D If the insured must relocate permanently, payment will be made for 365 days, regardless of the time it takes the insured to settle at the new location

B. The coverage will pay for any increase in living expenses required to maintain the insured's normal standard of living

The Common Policy Declarations of the CPP contain all of the following, except: A Name and address of the named insured B Transfer of rights and duties C Description of the business being insured D The policy period

B. The transfer of right and duties

Under Motor Truck Cargo Forms, the form that insures public truckers against their legal liability for loss or damage to cargo belonging to others in their possession, is called: A Shipper's Form B Trucker's Form C Owner's Form D Transit Form

B. Truckers form

What are the territorial limits of the Commercial General Liability Coverage Part of the Commercial Package Policy? A The United States, Puerto Rico and Mexico B United States, its territories and possessions, Puerto Rico and Canada C United States, its territories and possessions, Canada, and Mexico D Only the United States, its territories and possessions

B. United states its territories and possessions, canada and mexico

Which of the following is not an Additional Coverage of the Business and Personal Property Coverage Form? A Debris Removal B Vacancy C Preservation of Property D Fire Department Service charge

B. Vacancy

A person who, for compensation and on behalf of another person, can transact insurance with, but not on behalf of, an insurance company is considered a? A Surplus Lines Agent B Solicitor C Producer D Broker

Broker

A Commercial Property Policy may be cancelled for all of the following reasons, except: A Fraud B Failure of the named insured to implement reasonable loss control measures C Claims history D Changes in the property or its activities that result in a material change of risk CORRECT!

C. Claims history

Homeowners living in State Responsibility Areas or Very High Fire Hazard Severity Zones must take all of the following measures to protect against wildfires, except: A Live in homes constructed of fire-resistant material B Take part in comprehensive plans to protect against fires, as established by their city or county C Maintain yard sprinkler systems to reduce the risk of dry vegetative fuels D Clear flammable materials within 100 feet of the home

C. Maintain yard sprinkler systems to reduce

An insured contract includes all of the following, except: A A lease of premises B An elevator maintenance agreement C Pollution liability D A side track agreement

C. Pollution Liability

Which of the following is not an example of contingent liability exposure? A Liability exposure of an insured's sub-contractors B Owners and Contractors Protective liability exposure C Premises liability exposure D Contractual liability exposure

C. Premises liability exposure

Coverage C of an HO-3 provides all of the following coverages, except: A Coverage for property of roomers and boarders B Coverage for machinery used in maintenance of the premises C A limit of liability equal to 50% of Coverage A D A special limit of coverage on trailers not used with watercraft

Coverage for property of roomers and boarders

Forcing insureds to sue the insurer to collect on a claim by offering substantially less than the amount eventually recovered is a violation of the: A Insurance Claims Act B PPACA C Deceptive Trade Practices Act D Unfair Claims Settlement Practices Act

D

A bill of lading is: A Proof of insurance issued by an insurer to cover cargo B The form that provides coverage for a business firm that owns its own trucks C Insurance coverage provided specifically for loading and unloading cargo, rather than during transit D A receipt for the goods that sets the agreement between carrier and shipper

D

A commercial Inland Marine policy would be used to insure all of the following, except: A Steamrollers, tractors, and other mobile equipment owned by contractors B A business firm's computer hardware and software C A trucker's legal liability for loss to property in their care D A trucker's legal liability for property damage caused by an auto accident

D

According to the Common Policy Conditions of a CPP, who is responsible for paying premiums and receiving any return premiums? A Any insured B An individual specifically designated to be responsible for premiums C A named insured D The first named insured

D

An Errors & Omissions Policy held by an insurance broker-agent will cover the broker-agent's liability for: A Bodily injury to a customer B Property damage to a consumer's property C Malpractice D Financial harm to a client

D

Under Commercial Property Coverage Part, the Basic Causes of Loss Form covers all of the following, except: A Above-ground damage caused by a volcano B Building damage caused by a burglar C Riot or civil commotion D Steam boiler explosion

D. Steam boiler explosion

Under Products Liability Coverage, which of the following is true? A Coverage for property damage liability is limited to damage to the insured's premises arising from the product B Products Liability related claims deplete the General Aggregate Limit under the Commercial General Liability Coverage Part of the Commercial Package Policy C The bodily injury or property damage must occur upon the insured's premises and arise from the product D The bodily injury or property damage must occur away from the premises the insured owns or rents

D. The bodily injury or property damage must occur away from the premises the insured owns or rents

Which of the following is found in the Common Policy Declarations of the CPP? A The provision that the first named insured is responsible for all premiums B The insurer's cancellation right C The provision granting the insurer the right to make inspections of insured property D The deductible

D. The deductible

Which of the following is not true regarding the Value Reporting Form on a Builders Risk Policy? A Late reporting or under-reporting will result in a penalty in the event of a loss B The insured pays an advance premium at the beginning of the policy period C The insured is required to report 100% of values with each report D The insured is only required to report up to 80% of value of the property

D. The insured is only required to report up to 80% of value of the property

Insurers that use rates provided by a rating organization and develop a final rate by adding in projected expense and profit components are using: A Loss cost rating B Judgment rating C Manual rating D Merit rating

Loss Cost rating

Under Coverage C of a Homeowners Policy, all of the following losses are included, except: A Property of a guest B Clothing of the insured's daughter away with her at college C Property of a domestic employee D Property of a roomer, boarder, or tenant

Property of a roomer broader or tenant

In the insurance world, a potential for a loss is said to be: A A risk B A hazard C A peril D An insurable interest

Risk

In property insurance, the practice that damaged property, which has been paid for by the insurance company, belongs to the insurer is known as: A Surplus property B Residual property C Salvage D Indemnity

Salvage

Adequate coverage for large, powerful boats is provided by

Specialized personal watercraft policies, such as Outboard Motor and Boat, Boatowners, or Personal Yacht policies

All of the following are true of the HO-2, except: A The HO-2 covers owner-occupied dwellings B The HO-2 pays for losses on an open peril basis C The HO-2 covers the Broad Form perils D The HO-2 pays for losses to the dwelling on a replacement cost basis

The HO-2 pays for losses on an open peril basis

Which one of the following must be communicated in an insurance contract? A Information already known by both parties B The financial rating of an insurance company C The risks insured against D Information that is not material to a risk

The risk the insured is against

Which of the following might be considered a physical hazard? A The insured's attitude that good housekeeping is not important B The storage of all flammables in a fireproof container C The storage of flammables near a furnace D Dishonesty on the part of an insured

The storage of all flammables near a furance

Under Equipment Breakdown Insurance, all breakdowns that manifest themselves at the same time and are the direct result of the same cause, are considered:

To be one breakdown

Under the California Financial Information Privacy Act, all of the following are ways or reasons a financial institution is permitted to share consumer's personal financial information, except: A With law enforcement in the course of an investigation and subject to orders of the court B Sharing customer data between affiliates in a single line of business under the same regulators C To comply with provisions of the USA PATRIOT Act D To increase company revenue with more targeted marketing campaigns the consumer is likely to want or need

To increase company revenue with more targeted marketing campaigns the consumer is likely to want or need.

A Personal Auto Policy may be cancelled by the insurer due to suspension of the named insured's driver's license if notice is provided to the named insured at least how many days before the effective cancellation date? A 20 days B 30 days C 14 days D 10 days

a

Which statement about property insurance terminology is correct? A Arbitration is when a disputed claim is decided by the insurer B Most property policies include inherent vice as a covered peril C A spark that jumps from a fireplace and ignites a nearby rug would be deemed a hostile fire D Loss of profits resulting from a fire is a direct loss

a spark that jups from a fireplace an ignites a nearby rug would be deemed a total loss

Supplementary payments cover loss of work up to what amount per day? A $500 B $250 C $2,000 D $1,000

b

Which of the following is true regarding Products Liability coverage? A Coverage applies to bodily injury and property damage caused by the product, and to damage to the product itself if the purchaser has put it into service B Coverage commences immediately upon sale of the product to the purchaser C Coverage applies to the bodily injury and property damage the product causes, but not to the product itself D Coverage includes Liquor Liability and Dram Shop Liability insurance

c.

Computers, hardware, and software may be protected by a(n): A Scheduled Articles Floater B Commercial Articles Floater C Contractor's Equipment Floater D Electronic Data Processing Floater

d

Engaging in an unfair method of competition unwillingly subjects an agent to a civil penalty up to _______ per violation. A $50,000 B $500 C $1,500 D $5,000

d

In Ocean Marine insurance, liability coverage is called which of the following? A Freight insurance B Hull insurance C Cargo insurance D Protection and Indemnity insurance

d

When a property is insured on a replacement cost policy, this means that losses will be paid: A For full replacement cost, without any deduction for depreciation B For an amount previously agreed upon by the insured and insurer C For replacement cost, less depreciation D For market value of the damaged property

for full replacement cost without any deduction for depreciation

The Subrogation Clause found in many policies: A Helps prevent insured from collecting twice for the same loss B Provides a means for settling disputes between the company and policyholder C Specifies exactly how much coverage is provided by the policy D Spells out conditions that must be complied with before a loss may be settled

helps prevent insured from collecting twice for the same loss

All of the following statements regarding property insurance terminology are true, except: A Words, terms, or phrases that are described in an insurance policy are definitions B An insurance policy that pays only after primary coverage has been exhausted is said to be excess C A deductible is a specified amount of loss that is retained by the insured D Proximate cause is a secondary cause of loss

proximate cause is a secondary cause of loss

H has a Homeowners Policy protecting their home. In the event of a loss to the home, the insurer pays the replacement cost of damaged or destroyed property, but requires that H repair, rebuild, or replace the damaged property before collecting the full replacement cost. If the insurer places a time limit for H to make the repairs and collect the full replacement cost, the time limit must be at least how long? A 24 months from the date of the first payment towards the actual cash value of the damaged property B 6 months from the time the insurer has paid the full actual cash value of the damaged property C 12 months from the date of loss D 12 months from the date of the first payment towards the actual cash value of the damaged property

12 months from the date of the first payment towards the actual cash value of the damaged proptery

After an employer fails to report payroll, the Workers' Compensation insurer decides to cancel the employer's policy. Cancellation notice must be provided how many days in advance? A 10 days B 60 days C 15 days D 30 days

A

All of the following are correct concerning Medical Payments under Commercial General Liability Insurance, except: A Payments are made only if the insured is determined to be legally liable B Payments are made regardless of fault C Covered is medical expense for bodily injury caused by an accident on the insured's premises or because of the insured's operations D Payments are made for expenses incurred and reported within one year of the accident

A

All of the following underlying coverages must be purchased in order to qualify for an Umbrella or Excess Liability policy, except: A Workers' Compensation B Employers Liability C Liquor Liability D Commercial General Liability

A

An insured's application for a Personal Auto Policy materially misrepresented their auto safety record, and the insurer delivers a cancellation notice. To avoid the policy being cancelled, the insured may: A Furnish corrected information within 20 days and agree to pay the difference of premium B The insured is unable to stop the cancellation because the misrepresentation was material C Within 10 days, assign ownership of the policy to someone whose safety record matches what was recorded on the application D Agree to pay a high surcharge

A

Coinsurance on a Commercial Property Policy may be applied using: A The fair market value to determine the actual cash value of a commercial building B An agreed value to determine the replacement cost of a commercial building C The fair market value to determine the replacement cost of a commercial building D An agreed value to determine the actual cash value of a commercial building

A

Company ABC obtains Crime insurance to protect against dishonesty. All of the following statements about Commercial Crime coverage are incorrect, except: A Theft includes any act of stealing, including burglary and robbery B The Employee Theft Insuring Agreement covers extortion C Money includes evidence of debt D In order to constitute burglary for insurance purposes, there must be use of force or threat of force

A

Coverage for recreational vehicles can be added to the Personal Auto Policy by the: A Miscellaneous Type Vehicle Endorsement B Cross Terrain Endorsement C Recreational Vehicles Endorsement D Cross Country Endorsement

A

Employers who misclassify employees as independent contractors may be subject to all of the following consequences, except: A Surcharges applied by the insurer B Tax liability and penalties C Stop orders and penalty assessments D Criminal liability

A

H lives in a single-family dwelling, insured for flood risks on an NFIP Policy. If H's community has already completed the process to adopt flood control measures, what are the maximum coverage limits H's policy could have on the dwelling and contents? A $250,000 for dwelling, $100,000 for contents B $35,000 for dwelling, $35,000 for contents C $35,000 for dwelling, $10,000 for contents D $100,000 for dwelling, $10,000 for contents

A

In California, ZYX Corporation has a Workers' Compensation Policy and fails to report payroll. The insurer may: A Cancel the policy with 10 days' advance notice B Apply a 10% premium surcharge until the payroll is reported and any additional premium resulting from the payroll audit is paid C Reduce claim payments by 15%, requiring the employer to cover the remaining amounts owed to any injured worker D Nonrenew the policy with 30 days' advance notice

A

In a presentation to the local life underwriter association, R wrongly stated that ABC insurer is in financial difficulty. R may be guilty of: A Defamation B Twisting C False advertising D Coercion

A

Professionals who commonly obtain a Professional Liability policy include all of the following, except: A Small business owners B Insurance broker-agents C Medical professionals D Lawyers

A

Regarding coverages provided by the Businessowners Policy, all of the following statements are correct, except: A Employee dishonesty is automatically included in each policy B Land, including land on which the property is located, is not covered C Coverage for mechanical breakdown may be added for an additional premium D Theft of business personal property is a covered peril for Businessowners policies written on an open perils basis

A

The Personal Auto Policy does not provide coverage for which of the following? A Any vehicle with fewer than four wheels or designed mainly for the use off public roads B Off-road vehicles used in a medical emergency C A non-owned golf cart D A pickup truck or van

A

The type of Commercial Crime insurance form that usually requires a retroactive date is: A The Discovery Form B The Loss Sustained Form C The Claims-Made Form D The Occurrence Form

A

Under Part F - General Provisions of the Personal Auto Policy, the Legal Action Against Us states that: A Legal action brought against the insurer must be brought within 180 days of the loss B Legal action may not be brought against the insurer until the insured has complied with all the terms of the policy C Legal action against the insurer is permitted only when arbitration is unsuccessful D Legal action brought against the insurer must be brought within 90 days of the loss

A

Under a surety bond, the person whose responsibility it is to fulfill the obligation is the: A Principal

A

Under the Outside the Premises Insuring Agreement of the Commercial Crime Coverage Part, what is the limit of insurance for one occurrence that results in a loss to a pearl necklace? A $5,000 B No coverage is provided for loss to precious stones or pearls C $10,000 D The policy limit

A

What are bonds that are used in court proceedings called? A Judicial Bonds B Performance Bonds C Tax Bonds D Permit Bonds

A

Which of the following forms would insure against the risk of a farm's reduced crop yield? A Multi-Peril Crop insurance B Farm Property Coverage Form C Commercial General Liability D Farm Liability Coverage Form

A

Which of the following is not an unfair claims settlement practice? A Attempting to settle claims by arbitration B Unreasonable delay in claim payment C Not giving a reasonable explanation when denying a claim D Misrepresentation of policy provisions

A

Which of the following is true about Farm insurance? A Coverage E covers only those property types indicated in the Declarations B Coverage F covers Other Farm Structures C It offers commercial property coverage, but no liability coverage D It offers medical payments, bodily injury, and property damage, but no personal injury coverage

A

Which of the following would not be considered a breakdown? A Valve leakage B Mechanical failure of a conveyor belt C Electrical failure D Boiler explosion

A

Which one of the following is not a reason why a license may be suspended or revoked after it has been issued? A The licensee has a good business reputation B The licensee has shown incompetency or untrustworthiness in the conduct of any business C The licensee is not properly qualified to perform the duties of a person holding the license D The licensee has by commission of a wrongful act or practice exposed the public to the danger of loss

A

Which statement is false regarding the National Flood Insurance Program (NFIP)? A It provides coverage for direct and indirect loss to covered property as the result of flooding B The Regular Program allows coverage on a single family dwelling up to $250,000 due to flooding C It provides coverage up to a stipulated amount to apply to the increased cost of compliance with flood plain management ordinances or laws that regulate the repair of a building damaged by flood D The Emergency Program applies after a community has agreed to, but has not yet completed, the process to adopt flood control measures

A

Which statement is not true about FAIR Plans? A They must accept all submitted risks B They are state-supervised plans run by the insurance industry C The perils covered are generally limited to fire, lightning, and extended coverage D Their purpose is to provide property insurance in high-risk areas

A

ll of the following are eligible for a Businessowners Policy, except: A An eligible service risk that has a total of 45,000 square feet B An office building that has no more than 100,000 square feet C A residential condominium association D A mercantile risk that has no more than 25,000 square feet

A

When an insured fails to disclose known facts in an application for insurance, they may be guilty of: A Concealment B Twisting C Breach of warranty D Waiver

A Concealment

All of the following are true of Uninsured Motorists Property Damage coverage in California, except: A The purchase of the coverage is required for motorists to fulfill their financial responsibility requirements in California B If a vehicle is insured for collision losses, the coverage functions as a waiver of the Collision deductible C If a vehicle is not insured for collision losses, the coverage pays up to $3,500 of the actual cash value of the damage to the insured vehicle D Auto insurers are required to offer the coverage

A The purchase of the coverage is required for motorists to fulfill their financial responsibility requirements in California

Which of the following best describes the Debris Removal Additional Coverage on a Homeowners Policy? A When the insured has expenses removing debris from a covered loss, the policy will pay from the limits of liability B Coverage is limited to 10% of the Coverage A Limit C The debris must be removed within 30 days of the loss D Debris Removal applies only to loss by fire, lightning, and windstorm

A When the insured has expenses removing debris from a covered loss, the policy will pay from the limits of liability

A Personal Auto Policy issued in California may be cancelled for all of the following reasons, except: A Claims history B Material misrepresentation of safety record C Substantial increase in hazard D Suspension of the named insured's driver's license

A . Claims history

Under the Earthquake Causes of Loss Form, any earthquake or volcanic eruption is considered a single occurrence if it falls within a period of how many hours? A 168 B 126 C 80 D 186 Excellent!

A 168

When an insured's personal auto is being used for personal vehicle sharing, what is the personal vehicle sharing program responsible for? A Providing insurance coverage for the vehicle and its operator equal to or greater than the insurance coverage maintained by the vehicle's owner B Selling short-term insurance to the vehicle's operator C Ensuring the vehicle is used for commercial purposes D Verifying that the vehicle owner alone maintains liability coverages at least three times the standard minimum liability requirements

A.

In California, a person who qualifies for a Good Driver Discount Policy should be charged a rate at least what percentage below the rate they would otherwise be charged for the same coverage? A 20% B 30% C 50% D 40%

A. 20%

The limit of insurance for building personal property coverage on a Businessowners Policy is subject to a seasonal increase of: A 25% B 10% C 15% D 8%

A. 25%

On a Boiler and Machinery Policy, the period of restoration after a breakdown lasts until how many days following the date of repair or replacement? A 5 B 10 C 25 D 15

A. 5

Under the Vacancy Condition of the Business Personal Property Coverage Form, a building is considered vacant if what percentage of the total square footage is not rented or used for customary operations? A 70% B 80% C 50% D 33%

A. 70%

A Commercial Property Policy written using a Causes of Loss - Broad Form would cover losses resulting from which of the following: A Accidental water discharge from a cracked air conditioning unit B Sewer backup C Tidal waves D Earth tremors caused by a volcanic eruption

A. Accidental water discharge from a cracked air conditioning unit

Under the Common Policy Conditions of a Commercial Package Policy, which of the following circumstances best describes when the insurer may examine the insured's books and records? A At any time during the policy period and up to 3 years afterward B Only upon permission by the insured C Any time during the policy period D At any time during the policy period and during the insured's fiscal year immediately following policy expiration

A. At anytime during the policy period and up to 3 years afterwards

The Extended Period of Indemnity Endorsement would be attached to which form? A Business Income B Earthquake C Builders Risk D Commercial Property

A. Business income

To accomplish maximum flexibility, the commercial lines forms and endorsements are arranged into: A Coverage Parts B Packages C Conditions D Causes of Loss

A. Coverage parts

Which of the following endorsements would cover the named insured and family members who use a company vehicle that is furnished for the named insured's regular use? A Extended Non-owned Coverage B Named Non-owner Coverage C Miscellaneous Type Vehicle Endorsement D Joint Ownership Coverage

A. Extended Non owned cpverage

When applying a coinsurance provision, commercial property insurance policies may use which of the following to determine the actual cash value of a commercial building? A Fair market value B Agreed value C Appraised value D Salvage value

A. Fair Market value

All of the following are excluded from coverage under the Business Auto Coverage Form, except: A Hired autos B Property in the insured's care, custody, or control C Property damage arising from pollution D Intentional injury

A. Hired autos

Damage to a vessel caused by a bursting boiler would be covered by which type of Ocean Marine coverage? A Inchmaree Clause B Running Down Clause C Freight coverage D Protection and Indemnity insurance

A. Inchmaree

Which of the following would not be covered by a Builders Risk Coverage Form? A Land B Building supplies C Equipment intended to become a permanent part of the building D Foundation

A. Land

Which of the following may be added to a BOP for an extra premium? A Money and securities B Business income C Debris removal D Extra Expense

A. Money and security

All of the following are considered liability assumed under insured contracts, except: A Ordinance or Law B Elevator maintenance agreements C Sidetrack agreements D A lease of premises

A. Ordinance of Law

An insured in California has a Personal Auto Policy with GAP coverage. The insured's GAP coverage will: A Pay for any unpaid amount due on a lease or loan in the event of a total loss to Your Covered Auto B Pay for direct, accidental loss to custom furnishings or equipment C Add a named trust to the policy as an insured D Add coverage for a named non-owner who would otherwise be excluded from the policy

A. Pay for any unpaid amount due on the lease or loan in the event of a total total loss to your covered auto

The limit of liability for personal liability coverage under an HO-3 is written on what basis? A Per occurrence B Per accident C Actual cash value D Per person

A. Per The limit of liability for personal liability coverage under an HO-3 is written on what basis? A Per occurrence B Per accident C Actual cash value D Per person

Coverage C of a Homeowners Policy includes: A Personal property including clothing of the named insured and all members of the household anywhere in the world B The insured's pet animals C The insured's personal automobiles, while on the Residence Premises D Aircraft stored on the Residence Premises

A. Personal Property including clothing of the named insured and all members of the household anywhere in the world

Coverage B of the CGL provides which type of coverage? A Personal and advertising injury B Bodily injury and property damage C Medical payments D Professional liability

A. Personal and advertising injury

Under the National Flood Insurance Program (NFIP), which of the following may be insured on a replacement cost basis? A Residential condominiums consisting of four or fewer occupancies B Money and securities C Nonresidential or commercial buildings valued at less than $250,000 D Nonresidential or commercial buildings less than 3 stories high

A. Residential condominiums consisting of four or fewer occupancies

Which statement about the HO-2 is incorrect? A The insured may rent their detached garage to the neighbor for a woodworking business B Section II of the HO-2 is identical to Section II of the HO-3 C The HO-2 provides Broad Form coverage on both the dwelling and contents D Contents are insured everywhere in the world

A. The insured may rent their detached garage to the neighbor for a woodworking business

Under Section II of the Homeowners Policy, a 1- to4-family dwelling where the insured resides in one of the units, including other structures and grounds at that location, is known as: A The residence premises B The dwelling structures C The insured location D Non-business premises

A. The residence premises

An HO-2 would cover all of the following losses, except: A Theft of the insured's boat from a slip at a marina B Theft of an insured's camera stolen by a visitor C Theft of the insured's shotgun, valued at $1,500 D Fire damage to personal property of a guest of the insured

A. Theft of the insured boat from a slip at a marina

Employees who sustain bodily injury during the course of employment may be covered by endorsement on a Homeowners Policy if they meet all of the following requirements, except: A They are residence employees B They have been employed by the insured for at least 52 hours in the 90 calendar days preceding injury C They earned at least $100 in wages in the 90 calendar days preceding injury D They are independent contractors

A. They are residence employees

Collision insurance under the Personal Auto Policy provides payment for losses: A To your car, regardless of liability B To your car and the car you run into C To the car you run into, regardless of liability D To your car only if you are legally liable

A. To your car, regardless of liability

In the event of a first-party total loss claim under a Personal Auto Policy, the cash settlement amount must include all of the following, except: A Unpaid amounts due on a loan for the totaled vehicle B Applicable taxes C Any fees incidental to transfer evidence of ownership D License fees

A. Unpaid amounts due on a loan for the total vehicle

Specified Causes of Loss coverage provided by a Business Auto Policy includes all of the following perils, except: A Collision B Vandalism C Fire D Earthquake

A. collision

Which statement is true concerning Section II of a Homeowners Policy? A Under additional coverages, Damage to Property of Others, coverage is provided regardless of negligence B Medical Payments coverage is available for the insured and resident relatives C Supplementary payments are not included D Medical payments will pay for a maximum of 1 year

A. under additional coverages. Damage to property of Ohers coverage is provided regardless of negligence

Business Personal property is covered if it is within how many feet of the premises? A 100 B 10 C 50 D 250

A.100

Which of these statements concerning the CPP are correct? under the CPP. -The insured can choose a variety of eligible commercial coverages to tailor the package to fit his or her specific business insurance needs. -A complete CPP includes Common Policy Declarations, Common Policy Conditions, and two or more coverage parts. -A CPP can include Ocean Marine and Aviation insurance. -Almost all commercial risks are eligible for coverage under the CPP.

Answer A-C

All of the following are false concerning the National Flood Insurance Program, except: A Agents may bind flood insurance for up to 15 days prior to submitting the final application B Payment for losses are made by the federal government C When coverage is on dwelling property, it is extended to include trees, shrubs, and plants D Flood policies are available only from the National Flood Insurance Program

B

All of the following are major advantages of a Businessowners Policy, except: A Losses to the building are settled automatically on a replacement cost basis B All business income is covered for up to 6 months after the day of a direct physical loss C Extra expense coverage is provided for 12 months after the date of a direct physical loss D The BOP provides automatic peak season coverag

B

Business Liability coverage under the BOP includes coverage for: A Bodily injury to an employee of the insured arising out of and in the course of employment by the insured B Bodily injury or property damage caused by an occurrence that takes place in the coverage territory during the policy period C The recall of products D Property damage to impaired property

B

California's Unfair Practices Act does which of the following? A Gives individual consumers the right to private enforcement of the Act B Applies to all licensed persons under the Insurance Code, as well as unlicensed persons who would otherwise be regulated under the Code C Identifies all possible unfair acts or practices D Enables the Commissioner to initiate criminal or civil action against persons who commit violations of the Act

B

Collision Coverage under Part D of the Personal Auto Policy would cover which of the following? A Breakage of the windshield caused by collision with a stone or other missile B Damage to the insured auto's bumper when the auto crashed into a tree C Damage to the auto caused by objects blown into it during a severe windstorm or tornado D Damage to the auto caused by collision with an animal on the roadway

B

Debris removal is which kind of coverage under the Businessowners Policy? A Excluded coverage B Additional Coverage C Basic coverage D Optional Coverage

B

Medical payments under the Business Auto Coverage Form include: A Bodily injury to anyone while occupying any motorized vehicle having fewer than 4 wheels B Reasonable, necessary, medical and funeral expense because of bodily injury that is caused by an accident that is sustained by an insured C An injury to anyone while occupying a vehicle without a reasonable belief that the person was entitled to do so D Injuries sustained by employees while on the job

B

Part D - Coverage for Damage to Your Auto under the Personal Auto Policy will not pay for which of the following? A Earthquake damage to the covered auto B Losses to the covered auto caused by damage due to wear and tear, freezing, mechanical or electric breakdown, or road damage to tires C Loss to electronic ignition equipment of the covered auto D Losses to permanently installed sound reproduction equipment of the covered auto

B

Property that is excluded from coverage by a Businessowners Policy includes: A Building materials, equipment, or supplies located in the open B Aircraft, automobiles, motor trucks, and other vehicles subject to motor vehicle registration C Tenants improvements made to structures not owned by the tenant D Business personal property located outside the building

B

The BOP Coverage Extension for newly acquired or constructed property insures buildings up to what amount for no more than 30 days? A $300,000 B $250,000 C $200,000 D $100,000

B

The BOP offers all of the following advantages to insurers, except: A The BOP offers simplified rating, which makes quoting easier B Manual underwriting for the BOP makes an insurer's policy more unique and competitive C As a package policy, the BOP reduces adverse selection D The BOP is more cost-effective to write than multiple monoline policies

B

The Businessowners Policy specifies that property must be insured to at least 80% of its replacement cost, and that failure to do so will result in a penalty applied to the loss payment for partial losses. This provision is known as: A Coinsurance provision B Insurance-to-value provision C Replacement cost provision D Increase in insurance provision

B

The Commissioner is responsible for examining every domestic insurer in California at least once every: A 7 years B 5 years C Year D 3 years

B

The limit for bodily injury that falls within the Product-Completed Operations Hazard is paid at what amount? A One quarter the Liability and Medical Expenses limit shown in the Declarations B Twice the Liability and Medical Expenses limit shown in the Declarations C The Liability and Medical Expenses limit shown in the Declarations D Half the Liability and Medical Expenses limit shown in the Declarations

B

The minimum liability limits for standalone motorcycle policies in California are: A 10/20/3 B 15/30/5 C 5/10/5 D 10/15/5

B

Which of the following is considered property not covered by Section I of a BOP? A Completed additions B Outdoor fences C Personal property in common areas D Appliances used for refrigeration

B

Which of the following is covered under a Personal Auto Policy? A Liability for damage caused by a vehicle designed mainly for off road use B A vehicle driven with permission by an unlicensed driver C Use of a non-owned vehicle used without permission D Intentional damage done by the insured

B

Which of the following is not covered under a Businessowners Policy without coverage being activated on the Declarations page? A Money orders and counterfeit money B Employee dishonesty C Fire department service charges D Exterior building glass

B

Which of the following is true regarding the General Conditions of Commercial Crime Coverage Part to the Commercial Package Policy? A Losses to property other than money and securities are paid on a replacement cost basis B New employees acquired from a merger are automatically covered for no additional premium C Losses covered by other insurance are paid in proportion that the limit of crime insurance bears to the limit of all insurance covering the same loss D Property covered is limited only to property that the insured owns

B

Which of the following statements about coverages available on a BOP is correct? A Supplementary payments provided by Section I reduce the policy limit of liability B Coverage for hired and non-owned autos may be added by endorsement C Business Liability coverage includes coverage for damage to the insured's product D Personal and advertising injury may only be added by endorsement

B

Which statement is false regarding fraudulent claims in California? A Each admitted insurer must maintain a unit to investigate possible fraudulent claims by insureds B Any insurer that believes that a fraudulent claim is being made must report the fraudulent claim to the Fraud Division within 30 days of the discovery C While investigating suspected fraud claims, insurers and agents will have access to all relevant public records required to be open for inspection D If an insured signs a fraudulent claim form, they may be guilty of perjury

B

Which statement is the primary objective of Workers' Compensation? A To improve the employee's working conditions B To provide a payment of benefits to employees for injuries that arise out of their employment C To improve employer and employee relations D To provide accident coverage for employees both on and off the job

B

Which type of Workers' Compensation rating system categorizes employees according to their statistically common risk exposures? A Retrospective rating B Manual rating C Premium discount D Experience rating

B

Any licensed agent who has committed any offense denounced by the Code may have an insurance license suspended by the Commissioner for up to: A 18 months B 3 years

B 3

All of the following are considered to be persons insured under a Homeowners Policy, except: A A son or daughter under age 24 while away at college B A 25-year-old friend who is permanently living with an insured C A 79-year-old father-in-law who is permanently living with an insured D A friend's 14-year-old daughter who is temporarily residing with an insured

B A 25 year old friend who is permanently living with an insured

Trees, shrubs and plants are included for coverage in a Homeowners Policy for all the following, except: A Loss due to lightning B A loss resulting from a windstorm C Loss due to fire D Loss due to vehicles not owned or operated by a resident Oops!

B A loss resulting from a windstorm

The self-insured retention in the Umbrella Policy is described as which of the following? A Primary coverage B A method of cost-sharing C An endorsement D Excess coverage

B METHOD OF COST SHARING

Symbol 47 would be found in what type of Commercial Auto Policy? A Motor Carrier Coverage B Truckers Coverage C Business Auto D Garage

B Truckers

Which of the following is not considered a wrongful act under the EPLI? A Wrongful termination B Workers strike C Sexual harassment D Discrimination

B Workers strike

Coverage D of the Farm Policy provides insurance for: A Household Personal Property B Loss of Use C Other Farm Structures D Scheduled Farm Personal Property

B loss of use

Which of the following is an Optional Coverage under the BOP? A Business income B Mechanical breakdown C Personal effects D Debris removal

B mECHANICA BBREAKDOWN

A General Average loss is: A A general collision with another vessel B A partial loss that arises from an attempt to save remaining cargo C A loss that does not involve jettison D A partial loss where the loss is not shared

B, a partial loss that arieses from an attempt to save remaining cargo

A government agency requires a business to file a bond to ensure the business makes certain payments. Which kind of bond would the business file? A Fidelity bond B Financial guarantee bond C Faithful performance bond D Contract bond

B.

All of the following statements about personal Inland Marine insurance are correct, except: A Most personal Inland Marine policies are nonfiled B Most personal Inland Marine policies are issued on a named perils basis C Inland Marine policies provide unique coverage for moveable property, which is more difficult to insure D Inland Marine policies may be attached to a Homeowners Policy or issued as a stand-alone policy

B.

G uses a personal auto to drive for Uber. Which of the following is correct about the insurance coverage required by California law to cover the driver while working for Uber? A Before and after the ride, minimum coverage is 15/30/5 B During the ride, Uber is responsible for ensuring the driver is covered for at least $1 million for death, personal injury, and property damage C The insurer issuing the TNC insurance policy never has the duty to defend D During the ride, Uber's TNC insurance policy is excess coverage over the driver's personal insurance coverage

B.

The CAARP provides personal auto coverage with liability limits of 15/30/5, plus what amount in optional medical payments? A $10,000 B $1,000 C $5,000 D $25,000

B.

Under Equipment Breakdown Insurance, which of the following describes one breakdown? A The one accident that apparently caused the damage B All breakdowns at any one premises that manifest themselves at the same time and are the direct result of the same cause C The last accident, when there is more than one accident simultaneously D The first accident, when there is more than one accident simultaneously

B.

The Valuable Papers and Records Coverage Extension of the BOP provides how much coverage for direct physical loss to valuable papers and records away from the described premises? A $10,000 B $5,000 C $15,000 D $2,500

B. $5,000

The minimum liability limits for a Personal Auto Policy issued in California are: A 15/5/30 B 15/30/5 C 15/30/10 D 10/5/25

B. 15/30/5

If an insurer chooses to nonrenew a Personal Auto Policy, notice of nonrenewal must be provided to the policyholder at least how many days before the end of the policy period? A 10 days B 30 days C 40 days D 20 days

B. 30 days

According to the CGL Conditions, if the insurer decides not to renew, the first named insured is to be notified how many days before the expiration date? A 30 B 60 C 10 D 20

B. 60

Common carriers need to purchase Common Carrier Cargo Liability: A In case goods in their custody are damaged by an act of God B Because they can be held legally liable for loss or damage to property in their custody C In case goods improperly packaged by the shipper are damaged in shipment D In case of an inherent flaw in property that manifests itself while in the shipper's possession

B. Because they can be held legally liable for loss or damage to property in their custody

All of the following are true of the California FAIR Plan, except: A The FAIR Plan must maintain a toll-free phone number B Coverage is available for auto and farm risks C Insurable property is located in certain high-hazard zones D Any person who has been unable to obtain basic property insurance is eligible to apply

B. Coverage is available for auto and farm risk

The Occurrence Form and Claims-Made Form are mostly identical except for the: A Limit of liability B Coverage trigger C Number of insureds D Perils insured against

B. Coverage trigger

Which basis of Garagekeepers coverage applies regardless of liability, but only if the customer has no property damage coverage of their own? A Direct Primary B Direct Excess C Umbrella D Legal liability

B. Direct excess

All of the following are true of insurance, except: A It transfers risk B It eliminates risk C It is a means of sharing loss D It protects against uncertainty

B. Eliminates Risk

Damage to a customer's car in the care of the insured would be covered by which section of the Garage Coverage Form? A Liability B Garagekeepers C Physical Damage D Medical Payments

B. Garage keepers

The most the insurer will pay during the policy period for damages and expenses under Coverages A, B, and C is which of the following limits of liability? A Each Occurrence limit B General Aggregate limit C Medical Expense limit D Personal and Advertising Injury limit

B. General Aggregate Limit

Which of the following is true of Business and Personal Property Coverage Form? A It covers neither direct nor consequential loss B It covers direct losses only C It covers both direct and consequential loss D It covers consequential losses only

B. It covets direct losses only

Typically, an insurer that issues Commercial Umbrella policies requires what amount of underlying coverage to be in place? A $50 million B $1 million C $25 million D $10 million

B. Millión

Extra expenses are those that are: A Necessary and decrease the total loss amount B Necessary, regardless of whether they increase or decrease the loss amount C Optional, and decrease the total loss amount D Optional, and increase the total loss amount

B. Necessary, regardless of whether they increase or decrease the loss amount

All of the following statements about the CGL are correct, except: A Medical Expense coverage does not cover injuries resulting from liquor liability B Newly acquired organizations are automatically included for a maximum of 30 days or until expiration of the policy, whichever comes first C The insured's volunteer workers are considered insureds when performing business-related work D If the named insured cancels a policy, the refund will be sent to the first named insured

B. Newly acquired organizations are automatically included for a max of 30 days or unitl expiration of the policy whichever comes first

Under Section II of the Homeowners Policy, a 1- to4-family dwelling where the insured resides in one of the units, including other structures and grounds at that location, is known as: A The residence premises B The dwelling structures C The insured location D Non-business premises

B. Open perils coverage on the dwelling and named perils coverage on personal property

Which of the following is not grounds for a claim under the EPLI policy? A Whistleblower status B Plant closure C Sexual harassment D Discrimination

B. Plant Closure

Which of the following is NOT a type of coverage provided under a farm liability policy? A Bodily injury and property damage liability B Professional liability C Personal and advertising injury D Medical payments

B. Professional Liability

Under the Building and Personal Property Coverage Form, which of the following is true regarding property off premises? A There is a coverage limit of $5,000 for Property Off Premises coverage B Property in a motor vehicle or in the care, custody, and control of a salesperson is not covered C It is offered as an Additional Coverage D Property off premises is covered only for 30 days after its removal from the premises

B. Property in a motor vehicle or in the care, custody, and control of a salesperson is not covered

On a Special Form Homeowners Policy, Section II covers all of the following, except: A The insured's liability for bodily injury to others B Property of the insured C Medical expenses for an accident arising out of the premises or non-business activities of an insured D The insured's liability for damages to property of others

B. Property of the insured

Which statement is false regarding the National Flood Insurance Program? A It will not provide coverage on buildings that are in, on, or over water B It provides unlimited coverage for qualified property owners C It is administered by the Federal Insurance Administration under FEMA D For contents to be covered, they must be inside a fully enclosed building

B. Provides unlimited coverage for qualified property owners

When the coverage in a Personal Umbrella Policy is broader than the underlying policy, the umbrella will drop down and cover the entire loss, less a ________. A Copayment B Retention C Penalty D Deductible

B. Retention

All of the following statements about Homeowners policies are correct, except: A The HO-4 form is also called the Tenants Form B The HO-2 pays for losses to personal property on a replacement cost basis C Dwellings under construction are eligible D Personal property of an insured's daughter while at college would be covered

B. The H02 pays for losses to persona propterty on a replacement cost basis

Business personal property coverage provided by the Business Personal Property Coverage Form does not include protection for which of the following? A Raw materials used to manufacture goods B The business owner's delivery cargo van C Furniture and fixtures D Merchandise held for sale

B. The business owners delivery cargo van

The Scheduled Articles Floater provides which of the following coverages to described property? A Blanket coverage B Open perils C Named perils D Replacement cost

B. open perils

ABC Corporation has a Crime Policy that includes Employee Theft coverage. Theft by all the following employees would be covered by the policy, except: A An unidentified employee at a general merchandise retailer was caught on camera stealing kitchen supplies B A group of experienced employees at a bank work together to steal money from a locked vault C A key employee, who is known to have stolen office supplies from a previous job several years ago, is caught stealing again D A newly hired employee at a coffee shop steals several mugs

C

All of the following are eligible for a Businessowners Policy, except: A A residential condominium association B An office building that has no more than 100,000 square feet C An eligible service risk that has a total of 45,000 square feet D A mercantile risk that has no more than 25,000 square feet

C

Commercial Umbrella policies may be cancelled for all of the following reasons, except: A Reduction in financial rating for an insurer writing an underlying policy B Claims history of an underlying policy C Cancellation of an underlying policy D Material change in the scope of coverage in an underlying policy

C

During the last months of each year, a store experiences increased customer traffic, requiring a significant increase in stock, because of the holiday season. A Businessowners Policy offers what benefit to this store? A The BOP increases the business personal property limit of insurance by 8% during the peak season B The BOP automatically removes some exclusions during the peak season in order to add coverage for more business personal property C The BOP increases the business personal property limit of insurance by 25% during the peak season D The BOP changes the loss settlement basis for business personal property from actual cash value to replacement cost during the peak season

C

Ocean Marine Insurance written at full value may become void if which of the following happens? A The vessel changes course for any reason B The Inchmaree Clause is violated C If implied warranties are violated D The vessel is decommissioned while at sea

C

The four major liability coverages provided by Section II of the Garage Policy include all of the following, except: A Auto liability B Premises and Operations liability C Personal and advertising injury liability D Products liability

C

The purpose of the California FAIR Plan includes all of the following responsibilities, except: A Equitably distribute FAIR Plan policies among property insurers B Assure stability of the insurance market for property located in California C Minimize use of the standard insurance market D Provide basic property insurance when it cannot be obtained elsewhere

C

Under the BOP, an automobile service station is: A Eligible only if it is part of a convenience food/gasoline store B Eligible if annual gross revenue does not exceed $6 million C Always ineligible D Ineligible unless attached to a gas station and generating no more than 10% of the gas station's annual gross revenue

C

When a business building suffers damage, the Businessowners Policy settles the loss on which basis? A Actual cash value B Functional replacement cost C Replacement cost D Agreed value

C

When placing business with the CAARP, all of the following are correct, except: A Eligible individuals must have been unable to obtain coverage through the standard market in the past 60 days B Eligible applicants will be assigned to a participating insurer by the Plan manager C The application must be signed and submitted by a property and casualty broker-agent D The applicant must sign the application and may submit it to the Plan manager directly

C

Which Causes of Loss Form is most frequently used with a Businessowners Policy? A The Special Form, which provides named perils coverage B The Standard Form, which provides named perils coverage C The Special Form, which provides open perils coverage D The Standard Form, which provides open perils coverage

C

Which is not a coverage provided by the BOP's Business Liability coverage? A Advertising injury B Personal injury C Medical payments D Property damage

C

Which of the following causes of loss to crops would be covered by MPCI? A Failure to follow recognized good farming practices B Intentional acts to reduce yield C Insect damage or plant disease D Failure to carry out good irrigation practices for the insured crops

C

Which of the following coverages under the Personal Auto Policy best protects the insured against drivers who do not have adequate auto liability insurance limits? A Uninsured Motorist Coverage B Medical Payments Coverage C Underinsured Motorist Coverage D Liability Coverage

C

Which of the following covers claims of an employee injured in an auto accident while on company business? A Garagekeepers Form B Garage Liability Form C Workers' Compensation Insurance D Company group health insurance

C

Which of the following describes the implied warranty, Seaworthiness? A The ship must have undergone a comprehensive inspection by the insurer B The ship has a full complement of emergency navigation equipment C The ship must be seaworthy and have a competent crew D The crewmembers are all certified

C

Which of the following exclusions under the Business Auto Policy may be covered by the BAP by endorsement? A Intentional injury B Products and completed operations liability C Bodily injury to a fellow employee D Damage to property in the insured's care, custody, or control

C

Which of the following is true regarding the Business Income Additional Coverage under a BOP? A Coverage is for 12 months after the direct loss, starting 24 hours after the direct loss B The monthly limitation is 1/12th of the limit of insurance applying to Buildings and Business Personal Property C Coverage is for up to 12 months after the direct loss, starting 72 hours after the direct loss D The monthly limitation is 1/12th of the limit of insurance applying to Buildings

C

Which of the following statements about the relationship between ethics and California law is incorrect? A Insurance producers must be aware of both the California Insurance Code and the California Code of Regulations B Ethics is a code of conduct based on an accepted standard of right and wrong behaviors C The California Insurance Code identifies all possible ethical issues that may arise D The California Insurance Code identifies many ethical situations that may arise

C

All of the following are considered an insured under a Homeowners Policy, except: A Relatives who are residents of the household B Persons under age 21 in the care of the insured and a resident of the household C A 30-year-old friend D Any person legally responsible for animals owned by an insured

C A 30-year-old friend

Which of the following definitions pertain to the taking of property from the care and custody of a person by one who has caused or threatened bodily harm to that person? A Assault B Theft C Robbery D Burglary

C .

All of the following would be considered a covered resident under the Homeowners Policy, except: A A 22-year-old relative enrolled in school full time that was a resident of the household before moving out to attend school B A 20-year-old exchange student who is a resident of the household C A 22-year-old exchange student D The insured's relatives who are residents of the household

C A 22 exchange student

The Special Causes of Loss Form covers all of the following losses, except: A Sinkhole collapse B Sprinkler leakage C Steam boiler explosion D Volcanic action

C Steam boiler explosion

A Commercial General Liability Policy with a General Aggregate Limit of $300,000 and an Occurrence Limit of $100,000 experiences an occurrence that has a $200,000 loss and a second occurrence with a $100,000 loss. How much of the General Aggregate Limit is available after the second loss? A $300,000 B None C $100,000 D $200,000

C, 100.000

The term General Average under Ocean Marine Insurance is described as: A The average freight charges on the entire cargo of the ship B The average value per item of all the cargo on the ship C A partial loss where jettison of cargo is necessary to save the ship and the loss is shared D A partial loss where the loss is not shared

C.

Which of the following is the least restrictive business auto symbol? A Symbol 8 B Symbol 19 C Symbol 1 D Symbol 4

C. 1

For the purposes of Commercial Crime insurance, a person remains an employee for how many days after termination? A 10 B 20 C 30 D 0

C. 30

The period of restoration apply to the Business Income Coverage Form begins how long after the time of loss? A Immediately B 24 hours C 72 hours D 10 days

C. 72 hours

Which section of the Building and Personal Property Coverage Form includes debris removal, costs for extracting pollutants from land or water, and fire department service charges? A Causes of Loss - Broad Form B Optional Coverages C Additional Coverages D Causes of Loss - Special Form

C. Additional Coverages

To accomplish maximum flexibility, the commercial lines forms and endorsements are arranged into: A Packages B Causes of Loss C Coverage Parts D Conditions

C. Coverage Parts

All of the following are true of earthquake coverage in California, except: A No residential insurance policy may be issued or delivered unless the insured is offered coverage for loss or damage caused by the peril of earthquake B All California Earthquake Authority policies are marketed and serviced by a participating insurer who is compensated for the claims and services they provide on behalf of the CEA C For those who desire Earthquake insurance, policies may only be purchased through the California Earthquake Authority D The California Earthquake Authority has no authority to sell anything other than earthquake coverage

C. For those who desire Earthquake insurance, policies may only be purchased through the California Earthquake Authority

An NFIP Flood Policy covers all of the following losses, except: A Overflow of inland or tidal waters B Unusual and rapid accumulation or runoff of surface water C Leakage of underground water systems D Mudslide caused by accumulation of water

C. Leakage of underground water systems

Coverage provided by the CGL does not include: A Medical payments B Personal and advertising injury C Professional liability D Bodily injury and property damage

C. Professional Liability

In order to cover losses due to earthquake, a homeowner must do which of the following? A Have the property retrofitted to meet uniform building code standards B Insure the property for a minimum of 200% of replacement cost C Purchase an earthquake policy issued by the California Earthquake Authority or through their Homeowners insurance company D Purchase a risk retention policy in the nonstandard market that specifically includes earthquake as a covered peril

C. Purchase an earthquake policy issued by the CEA or through their homeowners ins co

Which bill of lading is less expensive than the straight bill of lading? A Waiver B Carrier C Release D Cargo

C. Release

Which of the following is not a covered peril under the Garage Form's Specified Causes of Loss physical damage coverage? A Hail B Wind C Repossession D Flood

C. Repossession

Under Section II of the Homeowners Policy, an employee whose duties are related to the maintenance or use of the residence premises, is defined as a: A Maintenance employee B Contract employee C Residence employee

C. Residence employee

The party who provides the bond and guarantees fulfillment of the obligation by paying damages if the principal defaults is known as the: A Obligee B Principal C Surety D Obligor

C. Surety

Which of the following statements about the Common Policy Conditions of a CPP is incorrect? A The first named insured may cancel the policy by mailing advance written notice of the cancellation B The first named insured is responsible for the payment of all premiums C The insured's rights and duties may be transferred to another party without insurer approval D The insurer may examine the insured's books and records at any time during the policy period

C. The insured's right and duties maybe transferred to another party without the insurer approval

The Extra Expenses Coverage Form covers: A Expense of disposing of spoiled merchandise caused by a power outage B Loss of business income during the period of restoration C The necessary additional expenses that are insured during the period of restoration that would not have incurred if there had not been a direct loss D Expense of removing the debris of a covered direct loss Sorry!

C. The necessary additional expenses that are insured during the period of restoration that would not have incurred if there had not been a direct loss

Which of the following is true regarding the Supplemental Extended Reporting Period? A It covers claims that take place after the policy term, during the Supplemental Extended Reporting Period B The charge for the Supplemental Extended Reporting Period shall not exceed the premium of the expiring policy C The premium is a one-time charge D Cancellation by the insurer requires 90 days notice of cancellation

C. The premium is a one time charge

Boatowners policies will typically include all of the following coverages, except: A Physical Damage B Operator's Liability C Uninsured Boaters D Flotilla Liability

C. Uninsured Boaters

Common exclusions of filed Commercial Inland Marine policies include all of the following, except: A Indirect loss B Improper packing or stowing C Collision D Failure to save property from further damage

C. collison

Hull insurance on an Ocean Marine policy covers the vessel for which of the following? A Cargo damage B Liability C Physical damage D Seaworthiness

C. physical

If a bird hits a windshield and breaks it, a Personal Auto Policy would pay for the loss under: A Supplementary coverages B Collision coverage C Bird Collision coverage D Other Than Collision coverage

D

L, a landlord, has a Businessowners Policy on an apartment complex. Building coverage provided by the BOP includes coverage for all of the following, except: A L's personal property used to furnish a common area B Outdoor fixtures C Refrigerators and washing machines provided in the units D Personal property of others in L's care

D

Medical payments provided by a Personal Auto Policy will provide coverage for: A Bodily injury that accompanies medical payments B Medical expenses only when the insured is legally liable C Medical expenses for the insured's injuries that occur in a recognized racing activity D Reasonable expenses incurred for necessary medical and funeral services sustained by the insured

D

Prior to final settlement following the theft of a motor vehicle, the insured must provide all of the following, except: A The insured's driver license number B A description of any unusual interior or exterior special equipment C Acknowledgment that providing false information is a crime D A copy of the most recent vehicle registration certificate

D

The Fine Arts Floater is written on a: A Replacement cost basis B Arbitrated basis C Actual cash value basis D Valued basis

D

Under the Personal Auto Policy, medical payments do not apply to persons while occupying which of the following? A A van used in the insured's business B A non-owned vehicle C A pickup used in the insured's business D A vehicle used during the course of employment if Workers' Compensation benefits are required or available

D

When a consumer in California applies for low-cost auto insurance through the CAARP, all of the following regulations apply, except: A An insured may not have a low-cost policy on one vehicle in the household and a standard market auto policy on another vehicle in the household B Applicants must provide proof of financial eligibility C Policies are issued for 1 year D The annual premium must be paid at one time at the beginning of the policy period

D

When an insurer is responsible for paying costs to repair, rebuild, or replace damaged property under a residential property policy subject to California's Standard Fire Policy, the measure of recovery is determined by: Market value B Replacement cost C Actual cash value, with labor costs subject to depreciation D Actual cash value, with labor costs not subject to depreciation

D

Which of the following forms cannot be added to a Commercial Package policy? A Commercial General Liability B Commercial Auto C Commercial Inland Marine D Workers' Compensation

D

Which of the following is correct regarding Other Insurance under Part A of the Personal Auto Policy? A If there is other liability coverage applicable to the insured auto, the policy will share the loss with the other policy or policies applicable B There is no coverage for non-owned vehicles if there is other coverage applicable to such vehicles C The Personal Auto Policy is the primary policy in all cases of duplicate coverage D If there is other liability coverage applicable to the insured auto, the policy will pay the proportion that the Limit of Liability bears to the total of all limits

D

Which of the following is provided by Coverage C of the CGL? A Personal Injury B Property Damage C Bodily Injury D Medical Expenses

D

Which of the following statements about coverages available on a BOP is correct? A Personal and advertising injury may only be added by endorsement B Supplementary payments provided by Section I reduce the policy limit of liability C Business Liability coverage includes coverage for damage to the insured's product D Coverage for hired and non-owned autos may be added by endorsement

D

Which of the following would not be considered a breakdown? A Failure of pressure or vacuum equipment B Electrical failure causing damage to equipment C Bursting caused by centrifugal force D Leakage in a valve or fitting

D

Which statement about the California Insurance Guarantee Association is not correct? A Member insurers are those that are admitted to transact insurance in prescribed property and casualty classes as established by California law B The maximum amount that will be paid to a claimant on behalf of an admitted insolvent insurer is the limits of the policy, or $500,000, whichever is less C The Association establishes a mechanism to pay claims that are unpaid as a result of the insolvency of a member insurer D Workers' Compensation claims pay a maximum of $50,000

D

California's Shine the Light Act establishes disclosure requirements for: A Personal information collected by businesses B The use of consumer credit reports C Nonpublic personal information obtained by financial institutions D Categories of personal information shared with third parties and used for direct marketing purposes

D Categories of personal information shared with third parties and used for direct marketing purposes

The termination of a contract from the beginning as if it never existed is called: Reissuing B Refunding C Withdrawing D Rescission

D Rescission

Under Section II of the Homeowners Policy, an employee whose duties are related to the maintenance or use of the residence premises, is defined as a: A Contract employee B Maintenance employee C Casual employee D Residence employee

D Residence employee

Which of the following defines a surplus lines broker? A They are brokers that deal with admitted carriers only B They are brokers who accept business only from nonresident agents C They are brokers who deal with direct writing companies only D They place risks with non-admitted insurers when coverage cannot be placed with admitted insurer carriers

D They place risks with non-admitted insurers when coverage cannot be placed with admitted insurer carriers

Insurance Company C has decided that it is insuring too many homes in a particular area. Therefore, it decides to reinsure R's Homeowners Policy because of the high value of the dwelling and contents. The reinsurance contract can best be described as: A An agreement between R, Insurance Company C, and the reinsurer B An agreement between R and the reinsurance company C An agreement between R's agent and Insurance Company C D An agreement between Insurance Company C and the reinsurer

D An agreement between Insurance Company C and the reinsure

Which of the following is not an element of an ideally insurable risk? A The loss must be accidental B Risks must include a large number of homogenous units C The loss must be quantifiable D The loss must be catastrophic

D The loss must be catastrophic

After expiration or cancellation, agents and brokers must keep records of every insurance transaction for at least ___ years. A 2 B 10 C 3 D 5

D,5

All of the following are true of supplementary payments, except: A They cover loss of earnings up to $250 a day B They are paid in addition to the limit of liability C They cover all claim-related expenses D They apply to coverages A, B, and C

D.

The Personal Auto Policy applies: A Only in the U.S. and its territories B Only in the U.S., its territories, Canada, Puerto Rico, and Mexico C Anywhere in the world D Only in the U.S., its territories, Canada, and Puerto Rico

D.

Which bond guarantees the contractor will proceed with the contract? A Performance bond B Labor and materials bond C Permit bond D Bid bond

D.

Which of the following exceeds the limit of insurance for loss by theft under Section I Limitations of the BOP? A $1,500 in jewelry B $4,000 in motor vehicles C $2,000 in gold D $3,000 in fur garments

D. $3,000 in fur garments

Pertinent records may be stored off premises for what period of time? A 60 days B 6 months C 2 years D 1 year

D. 1 year

A commercial property policy may be cancelled by the insurer due to material increases in any risk insured against if notice is provided how many days in advance of the cancellation effective date? A 120 days B 60 days C 10 days D 30 days

D. 30 days

A Commercial Package Policy has a Products-Completed Operations Aggregate Limit of $100,000 with a $20,000 limit for each occurrence. There is an occurrence that results in $25,000 in damages and another occurrence that resulted in $15,000. How much of the aggregate remains for future occurrences? A $20,000 B $100,000 C $60,000 D $65,000

D. 65,000 $20,000 is paid by the policy on the $25,000 occurrence because the occurrence limit is $20,000. This reduces the aggregate limit to $80,000. $15,000 is paid on the $15,000 occurrence. This payment further reduces the aggregate limit to $65,000.

Which of the following motels would be eligible for coverage under a BOP? A A 5-story motel operating year round B A 2-story motel operating seasonally C A 3-story motel with a cocktail lounge D A 3-story motel with no bar or cocktail lounge

D. A 3-story motel with no bar or cocktail lounge

Which of the following statements about the CGL is incorrect? A The General Aggregate Limit will be reduced by a medical payment B A bodily injury claim must be caused by an occurrence and it must have taken place in covered territory C Changes to a CGL policy may be made only by endorsement issued by the insurer D A Products and Completed Operations Liability claim will reduce the General Aggregate Limit

D. A product and completed operations liability claim will reduce the general aggregate claims

Employment Practices Liability insurance is intended to provide coverage in the event that: A A medical professional is accused of malpractice B The error of an insurance agent results in a financial loss to an insured C An officer of a business violates their duty of diligence to manage employees with reasonable care D An employer fires an employee for reporting a breach of employment contract

D. An employer fires an employee for reporting a breach employment contract

Supplementary payments included as a Coverage Extension of the BAP cover all the following, except: A Court costs B Bail bonds C Loss of earnings D Attorney's fees

D. Attorney fees

Breaking and entering is a required element of: A Larceny B Robbery C Theft D Burglary

D. Buglary

Which of the following is not a type of insured contract? A Sidetrack agreement B Elevator maintenance C Lease of premises D Employment contract

D. Employment Contract

The definition of Business Personal Property under the Building and Personal Property Coverage Form includes: A Stock on consignment held for sale by the insured B Business Personal Property of others rented to, or leased by, the insured C Accounts, bills, and currency of others on the premises in the insured's trust D Furniture, fixtures, machinery and equipment, stock held for sale (including raw material) and other personal property owned by the insured

D. Furniture, fixtures, machinery and equipment, stock held for sale and other personal property owned by the insured

Which of the following is true of the liability limit for medical expenses under Section II of the BOP? A It is half the limit for business liability B It is twice the limit for business liability C It applies per person D It applies per occurrence

D. It applies per occurance

All of the following statements are true of Protection and Indemnity insurance on an ocean vessel transporting cargo for a business, except: A It covers injuries to passengers caused by negligence B It covers damage to wharves and docks C It covers cargo if lost or damaged through negligence D It does not cover injuries to seamen or stevedores

D. It does nor cover injuries to seamen or stevedores

Which of the following is provided by Coverage C of the CGL? A Bodily Injury B Property Damage C Personal Injury D Medical Expenses

D. Medical Payments

Which of the following statements about exclusions contained on the Causes of Loss forms available for a Commercial Property Policy is correct? A Damage resulting from sewer backup is excluded by the Basic Form, but covered by the Broad Form B The Earth Movement exclusion includes loss due to landslides, but will cover loss due to earth tremors from a volcanic eruption C Unlike personal lines policies, ordinance or law is not excluded by any Causes of Loss form D Most exclusions can be waived by purchasing an endorsement

D. Most exclusions can be waived by purchasing an edorsment

All of the following are true of Personal Umbrella policies, except: A Specific minimum limits for underlying coverage are required B Policies are written in increments of one million C If the Umbrella Policy provides broader coverage than the underlying policy, the Umbrella will cover the entire loss, less a retention D Policies generally cover first-party claims

D. Policies generally cover first party claims

Which of the following is not considered a covered peril under the Basic Causes of Loss Form? A Windstorm or hail B Vandalism C Sinkhole collapse D Power failure off the insured's premises

D. Power failure off the insured premises

Which of the following would not reduce the General Aggregate Limit under a Commercial General Liability Coverage Form? A A customer is injured on premises and the insured calls an ambulance to take the injured party to the hospital for treatment B The insured misappropriates the advertising slogan of a competitor C A small fire in the insured's office causes damage to the leased premises D The insurer pays a claimant injured by a product made by the insured

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

Regarding the CGL, which of the following is correct? A The named insured and the policy period are found in Section IV - Conditions B The term insured is used collectively, rather than severally C The Declarations are not considered a part of the CGL Coverage Part D There would be no coverage for an insured that is a subsidiary company not listed in the Declarations

D. There would be no coverage for an insured that is a subsidiary company not listed in the declarations

Which of the following is false regarding the Building and Personal Property Coverage Form? A Newly acquired or constructed property is automatically included for 30 days, not exceeding $250,000 for each building B Trees, shrubs and plants are covered up to $1,000 with a sublimit of $250 for any one tree, shrub or plant C Business personal property includes property that is either in the building or within 100 feet of the building D The policy covers vehicles licensed for road use

D., The policy covers vehicles licensed for road use

Each of the following is a characteristic of an eligible risk for the BOP, except: A Small business B Building occupies 20,000 square feet of area C Apartment building D Manufacturing occupancy

D.MANUFACTURINGOCCUPANCY

The Limited Pollution Liability Coverage Form differs from the Pollution Liability Coverage Form in what respect? A The Limited form is not available in all states B The Limited form has a lower limit of liability C The Limited form does not include a leak from a waste facility on premises D The Limited form does not include clean up

D/ The limited for, does not include clean up

The part of an insurance policy that states where the risk is located is the: A Conditions B Insuring Agreement C Definitions D Declarations

Declarations

Which one of the following is a correct statement regarding the premium dollars collected from a client? They must be invested in government-insured securities B They can be held up to 30 days before being remitted to the carrier C They can be used for whatever purpose the insurance agent deems appropriate D They must be kept separate and not commingled

Financial interest in propertyept separate not comingled

If an individual faces the risk of economic loss in the event of property damage, this represents the principle of: A Subrogation B Insurable interest C Limit of recovery D Indemnity

Insurable Interest

A person licensed to write insurance coverage with non-admitted insurers when coverage cannot be placed with an admitted insurer is a(n):

Surplus Line broker

A business receives and sends out a number of interstate cargo shipments throughout the year, and wants to protect the wide variety of property on these shipments for loss or damage caused by specific perils. Which transit coverage form should the business purchase? A Annual Transit Coverage Form B Motor Truck Cargo Truckers Form C Motor Truck Cargo Owners Form D Trip Transit Coverage Form

a

All of the following are covered by a BOP under Building coverage, except: A Money and securities B Outdoor furniture C Permanently installed machinery or equipment D Building fixtures, including outdoor fixtures

a

Market conduct regulations includes state laws that regulate all of the following, except: A Executive staff B Claims handling C Underwriting D Ratemaking

a

The Miscellaneous Type Vehicle Endorsement attached to a Personal Auto Policy allows coverage for an ATV by: A Providing an expanded definition of covered auto B Adding motorcycles to the list of eligible vehicles C Altering the four-wheel requirement D Specifically naming it in the Declarations

a

What is it called when a producer, agent, or broker makes a false statement about an insurer's financial condition? A Misrepresentation B Twisting C Defamation D Rebating

a

Which cause of loss form is used by the Commercial Crime policy? A None of the above B Basic C Special D Broad

a

Which of the following describes the coverage provided by a Burglary Policy? A When an employee opens the store in the morning, they find missing merchandise and a broken window B While doing inventory, a manager realizes they have less stock than they should C Someone steals money from the cash register after threatening the cashier with a knife D Someone takes property from inside the premises after the store's back door was left unlocked overnight

a

Which of the following is true regarding the Extra Expense Additional Coverage under a BOP? A Coverage is for 12 months after the direct loss B Extra Expense coverage is not available to commercial tenants C There is a monthly limitation equal to 1/12th of the Property limit of insurance D Extra Expense coverage is provided until the Property limit of insurance is exhausted

a

Which of the following would be a covered injury under Workers' Compensation? A An injury sustained because of the employee's own negligence B An injury sustained while intoxicated C An injury sustained intentionally D An injury sustained during hours that were not designated for work

a

Which of the following would be covered for medical expenses under Section II of the Businessowners Policy? A Volunteer workers of the insured B Tenants of the insured C Members of athletic teams sponsored by the insured D A person hired to do work for the insured

a

Which statement is false regarding the California State Compensation Insurance Fund? A This fund is also known as the Second Injury Fund B Employers are allowed to purchase Workers' Compensation Insurance directly from the fund C Licensed brokers may place business with the fund in behalf of an insured D The fund operates as a public insurer that competes with private insurers in the class of Workers' Compensation Insurance

a

Homeowners policies usually require the named insured to purchase insurance in an amount no less than what percentage of the home's replacement value? A 80% B 100% C 50% D 70%

a 80%

A policy has limits of $25,000 bodily injury per person, $50,000 bodily injury per accident, and $10,000 property damage per accident. What would be the insurer's liability arising out of a single accident where claimant A has injuries in the amount of $25,500; claimant B, $20,500; and claimant C, $4,000? A $49,500 B $15,000 C $25,000 D $50,000

a. $49,500

Under the CGL, a person hired by a business to help cover the increased workload during the holiday season would be considered: A A temporary worker B An employee C An independent contractor D A leased worker

a. TEMPorary worker

A Burglary Policy includes: A The mysterious disappearance of property B The taking of property from inside the premises by a person who hid inside a storeroom during the day and broke a window to get out at night C The taking of property from inside the premises by a person who has entered through an unlocked window D The taking of property from inside the premises by a person who has caused or threatened bodily harm

b

A faithful performance bond protects against: A Fraudulent and dishonest acts of an employee B Failure of the principal to perform a duty outlined by law or bylaw C Failure of the principal to make a payment D Failure of a licensee to engage in activities required for issuance of their license

b

Advertising injury coverage provided by the CGL does not include which of the following? A Misappropriation of advertising ideas or style of doing business B An incorrect price quote C Defamation of another company in an online advertisement for the insured's business D Violation of copyright

b

All of the following are considered duties of the California Insurance Commissioner, except: A Keep all papers as required by law B Set insurance rates C Structure and control insolvency procedures D Regulate the internal affairs of the Department of Insurance

b

Any notice required to be given to an insured by the insurer may be mailed, postage paid, and addressed to the policyowner, insured, claimant, or beneficiary to be notified at the: A Agent's business office address B Last known address of record C Home address D Business address

b

Assuming certain standards are met, which of the following types of businesses are eligible for the BOP? A Manufacturers B Restaurants and contractors C Amusement parks D Auto dealers and mobile home dealers

b

Businesses eligible for the Garage Coverage Form include all of the following, except: A A business given custody over other people's vehicles B A business that transports goods for other companies C Car dealerships D Public repair shops

b

Funds controlled by the Guarantee Association are used to: A Subsidize investment income losses B Pay claims of insolvent insurers C Subsidize insurer reserves D Subsidize state premium taxes

b

Generally, insurance and bonds are different in that: A The insurer is not usually compensated for paid claims, but the principal must be repaid by the surety for any amount the principal pays B The insurer is not usually compensated for a claim it pays, but the surety must be repaid by the principal for any amount the surety pays C The insurer is usually compensated for claims it pays, but the surety is not compensated for amounts paid D The insurer retains the risk, and the principal transfers the risk

b

Surplus lines brokers in California are responsible for keeping all of the following records, except: A A report, filed with the Commissioner, of the diligent effort taken to place insurance with authorized insurers B Payment to the Commissioner of a 5% tax on gross premiums each year C An annual sworn statement of business transacted in the past year D A record of disclosing to the insured that surplus lines insurance is not subject to the same financial solvency regulations as admitted insurers

b

The rating method used for Workers' Compensation in California is: A Manual rating B Experience rating C Retrospective rating D Premium discount

b

The taking of property from inside the premises by a person unlawfully entering or leaving the premises as evidenced by visible signs of forcible entry or exit, is covered under which of the following Crime Coverages? A Burglary B Extortion C Robbery D Theft

b

To be licensed as a surplus lines broker in California, an applicant must do all of the following, except: A Hold a property broker-agent or casualty broker-agent license B File a $25,000 bond to the people of California C Designate one office in California as their principal office D Report addresses of all offices to the Commissioner

b

To whom are Workers' Compensation survivor benefits paid? A A worker who survives an injury B The spouse and/or dependent child of a deceased worker C An employer who survives an attack by an employee D The employer of a deceased employee

b

Which of the following is true regarding the General Conditions of Commercial Crime Coverage Part to the Commercial Package Policy? A Losses covered by other insurance are paid in proportion that the limit of crime insurance bears to the limit of all insurance covering the same loss B New employees acquired from a merger are automatically covered for no additional premium C Property covered is limited only to property that the insured owns D Losses to property other than money and securities are paid on a replacement cost basis

b

Which of the following items is not covered by the BOP? A Customer's property in the insured's control B Satellite dish located on the premises C Insured's property located in common areas D Leased property

b

Which of the following statements about Workers' Compensation in California is true? A California is a voluntary Workers' Compensation state B The State Fund functions as a public insurer competing with private insurers in the Workers' Compensation market C California does not allow employers to self-insure D 24-Hour Coverage is illegal in California

b

Which of the following statements is correct about coverages offered by the Commercial Crime Program? A A Burglary Policy would provide coverage when someone forced the storeowner to open a locked safe B A Robbery Policy includes theft in the presence of an employee C When the Employee Theft Insuring Agreement is written on a blanket basis, each employee must be named in the policy D A Crime Policy may only provide coverage on money and securities when the loss occurs inside the premises

b

Which principle prevents an injured worker from suing for a larger award than would be paid through a Workers' Compensation claim? A Contributory negligence B Exclusive remedy C Comparative negligence D Assumption of risk

b

Which type of injury prevents an employee from being able to do any work for the rest of their life? A Temporary partial B Permanent total C Temporary total D Permanent partial

b

Temporary total disability benefits are subject to a waiting period of how many days? A 14 B 3 C 21 D 1

b 3

If a Business Auto Policy only covers the named insured's owned autos other than private passenger autos, which symbol must be included on the policy? A Symbol 2 B Symbol 4 C Symbol 3 D Symbol 5

b 4

Which type of Commercial Crime form provides coverage for losses that did not necessarily occur during the policy period? A Both Discovery and Loss Sustained B Discovery C Loss Sustained D Neither Discovery nor Loss Sustained

b Discovery

Which Commercial General Liability form provides coverage for a loss that takes place during the policy period and is not required to be reported within a certain time frame? A Special Coverage Form B Occurrence Form C CGL D Claims-Made Form

b Occurance form

Which is the broadest basis for the Garagekeepers Coverage? A Legal liability basis B Direct primary basis C Full coverage basis D Direct excess basis

b, DIRECT

After it has been issued, a license may be suspended or revoked for all of the following reasons, except: A The licensee has submitted to the Commissioner a false or fraudulent certificate of prelicensing or continuing education B The licensee has knowingly misrepresented the terms or effect of an insurance policy or contract C The Licensee has been convicted of a minor traffic violation D The licensee has previously engaged in a fraudulent practice or act or has conducted any business in a dishonest manner

c

All licensees must report background information to the California Department of Insurance. All of the following information must be reported, except: A Misdemeanor convictions B Misappropriation of funds C Traffic violations D Suspension of a professional license

c

All of the following are true concerning the Voluntary Compensation Endorsement, except: A The coverage is the same as in the standard Workers' Compensation Policy B The state in which coverage is to be provided must be stipulated C The law states that the employer must provide their federal tax ID number D Benefits are provided for employees not required to be covered under the Workers' Compensation law

c

All of the following are true of medical expenses provided by the BOP, except: A The expenses must be incurred within 1 year of the accident date B They are paid regardless of fault C Funeral expenses are not included D Prosthetics are included

c

An agent's license will remain active as long as all of the following requirements have been met, except: A A Notice of Appointment is on file with the Commissioner B Continuing education is complete C Insurer sales quota is met D Renewal fees are paid

c

Assuming each driver is able to do so, all of the following information must be exchanged at the scene of an auto accident in California, except: A Driver's name and address B Vehicle identification number C Driving safety record D Evidence of financial responsibility

c

B owns a store that is protected by a Commercial Crime Policy with the Employee Theft, Inside the Premises - Theft of Money and Securities, and Outside the Premises Insuring Agreements. G, a cashier at the store, quits. Two weeks after their last day, G returns to pick up some personal items left behind and, while there, steals money from the cash register. How would B's Crime Policy respond? A The loss is covered in full by the Inside the Premises - Theft of Money and Securities Insuring Agreement B The policy denies the claim C The loss is covered in full by the Employee Theft Insuring Agreement D The loss is covered by the Employee Theft Insuring Agreement, but is reduced by half because G is a previous employee

c

California's Workers' Compensation laws allow which of the following? A Workers' Compensation benefits act as one compensation method for work-related injuries, but are not the exclusive remedy B Employees may decline compensation benefits in order to sue their employer C Employers must assume absolute liability for work-related injuries D Employers may use a contributory negligence defense to decline paying benefits to employees injured on the job

c

Freight insurance on an Ocean Marine policy provides coverage for: A Bodily injury to a crew member, who was injured while working B Loss of cargo because it was jettisoned to save the ship from sinking C Indirect loss when the seller was unable to obtain a refund of import duties after some cargo was lost in a fire

c

Homeowners living in State Responsibility Areas or Very High Fire Hazard Severity Zones must take all of the following measures to protect against wildfires, except: A Live in homes constructed of fire-resistant material B Take part in comprehensive plans to protect against fires, as established by their city or county C Maintain yard sprinkler systems to reduce the risk of dry vegetative fuels D Clear flammable materials within 100 feet of the home

c

If a first-party residential or commercial property policy is settled on the basis of an estimate prepared by or for the insurer, the insurer must do all of the following, except: A Provide itemized justifications and explanations if the claim is adjusted because of betterment, depreciation, or salvage B Provide the claimant with a copy of each document used to determine the settlement C Require repairs to be done by a specified entity D Verify the repair costs are representative of the local market area

c

If an unlicensed person acts as an insurance agent, they are subject to which of the following penalties? A 2, 3, or 5 years in a state prison B A felony charge, punishable by a fine up to $50,000 and/or 1 year in jail C A misdemeanor charge, punishable by a fine up to $50,000 and/or 1 year in jail D A fine up to $10,000

c

In California, Workers' Compensation is available through: A The State Compensation Insurance Fund only B Private insurers only C Both private insurers and the State Compensation Insurance Fund D Neither private insurers nor the State Compensation Insurance Fund

c

In California, which of the following Workers' Compensation coverages pays unlimited benefits? A Survivor's benefits B Rehabilitation C Medical D Disability

c

In Ocean Marine insurance, the Collision Clause is also known as which of the following? A The Inchmaree Clause B The Warehouse to Warehouse Clause C The Running Down Clause D The Particular Average Clause

c

Property and casualty insurers in California are expected to either affirm or deny a claim within how many days of receiving proof of the claim? A 60 days B 30 days C 40 days D 15 days

c

Regarding the mailing of any proof of notice, the __________ is responsible for notifying the insurer of address changes, including any change of email address. A Agent B Beneficiary C Policyowner D Agency

c

Temporary Total Disability may be defined as: A Not returning to the former occupation B No improvement possible C The inability to return to any employment while recovering D Any disability that extends beyond 60 days

c

The Commissioner may disapprove the use of all of the following names, except: A One which implies that the licensee is an underwriter B One already filed by another licensee C A bona fide natural name of an individual D One which implies the licensee will engage in activities not permitted under the license

c

The type of insurance that bridges the gap between Workers' Compensation coverage and the CGL is: A Errors and Omissions B The Second Injury Fund C Employers Liability D Professional Liability

c

Under Liability Coverage of the Personal Auto policy, which of the following would be covered? A Damage to property being transported by the insured B Damage to a neighbor's lawn mower in the care of the insured C Damage to a rental car rented to the insured D Damage to the home the insured owns

c

Under the U.S. Longshore and Harbor Workers' Compensation Act, all of the following are included, except: A Workers who load and unload ships B Workers who build ships C The crew of the ship D Workers who repair ships

c

Which of the following claims is not covered under Workers' Compensation Insurance? A An employee injured on the job by a product of the employer B An employee who becomes ill because of exposure to chemicals used in the employee's workplace C An employee who contracts a cold in the winter D An employee injured by machinery in the workplace

c

Which of the following is NOT a criterion for distinguishing an employee from an independent contractor? A Supplying the necessary equipment and tools to complete the work B Retaining the right to direct the way work must be completed C Number of hours worked D Controlling the frequency and timing of compensation for work

c

Which of the following is not a limit of liability under the CGL? A Each Occurrence Limit B Medical Expense Limit C Supplementary Payments Limit D The Personal and Advertising Injury Limit

c

Which of the following is not part of the definition of an employee? A Someone in the insured's service B Someone compensated by the insured C Someone on contract with the insured D Someone the insured has a right to direct

c

Which of the following is true regarding the Electronic Data Processing Floater? A It includes loss due to faulty programming B It covers the computer, printer, and associated hardware devices only C The value of covered property is based on actual cash value, unless replacement cost is indicated on the Declarations D It does not include Time Element coverages, like business interruption and extra expense

c

Which of the following would be covered by medical expenses coverage? A Bodily injury falling under the Products-Complete Operations Hazard coverage B Bodily injury resulting from athletic activities C Bodily injury to a volunteer D Bodily injury to the insured

c

Which of the following would not be eligible to be written on a Businessowners Policy? A Hair salon B Shoe repair shop C Auto dealership D Barber shop

c

Which of the following is not eligible for a Personal Auto Policy? A A van that is not used to deliver cargo B A farm pickup truck used only for farming C A private passenger auto used as a taxicab D A 9-passenger station wagon

c A priovate passenger auto used as a taxi

Merchandise used within a business would be considered which of the following on the Building and Personal Property Coverage Form? A Personal effects B Completed additions C Business personal property D Outdoor property

c Business personal property

Which of the following best describes the Pair and Sets Clause in the Personal Jewelry Floater? A The insurer will pay the proportion that the lost article bears to the number of articles in the set B The insured will pay 50% of the value of the pair or set C The insurer will pay for a loss in proportion to actual loss when a part of a pair or set is damaged or destroyed D When one article of a matched pair or set is lost, the insurer considers the loss a total loss

c thhe insurer

A building valued at $200,000 is insured for $150,000 with an 80% coinsurance requirement and a $1,000 deductible. After the building is totally destroyed, incurring debris removal expenses of $10,000, how much will the Building and Personal Property Coverage Form pay? A $154,000 B $155,000 C $159,000 D $160,000

c.

All of the following are defined as insured locations in the Homeowners Policy, except: A A non-owned premises where the insured is temporarily residing B Any premises named in the Declarations C Farmland owned by the insured D Cemetery plots

c. Farmland owned by the insured

The following are all Additional Coverages under a Homeowners Policy, except: A Collapse B Loss Assessment C Governmental Action D Property Removed

c. Governmental Action

Which of the following is not a covered peril under the Garagekeepers Specified Causes of Loss physical damage coverage? A Fire B Vandalism C Hail D Theft

c. Hail

A customer in a housewares store is cut while handling a broken piece of glassware. Which type of liability would apply? A Operations B Completed Operations C Premises D Products

c. Premises

Which of the following is false regarding the Building and Personal Property Coverage Form? A Trees, shrubs and plants are covered up to $1,000 with a sublimit of $250 for any one tree, shrub or plant B Business personal property includes property that is either in the building or within 100 feet of the building C The policy covers vehicles licensed for road use D Newly acquired or constructed property is automatically included for 30 days, not exceeding $250,000 for each building

c. The policy covers vehicles licensed for road use

When would a person purchase a Value Reporting Form? A When the insured is insuring buildings or structures only B When the insured is insuring property that has a relatively constant value C When an insured has business personal property values that fluctuate, and needs protection for the values actually at risk D When the insured is concerned about the Ordinance or Law exclusion

c. When an insured has business personal property values that fluctuate and needs protection for the values actually risk

Which of the following is true regarding the Fine Arts Floater? A Coverage is on an actual cash value basis B Coverage is limited to the United States, Canada, and Mexico C It covers such items as paintings, rare manuscripts, and antiques D It has automatic coverage for 30 days on newly acquired articles

c. it covers such items as paintings, rare manuscripts, and antique

Medical payments coverage under the Commercial General Liability Coverage Forms includes reasonable medical expenses if they are incurred and reported within a maximum of _____ years from an accident. A-2 B-3 C-1 D-5

c.1

In an insurance contract the value that each party gives the other is said to be the: A Offer B Acceptance C Subject matter D Consideration

consideration

A bond that covers an employee in a position of private trust and that protects an employer against loss caused by the employee's dishonesty is called a(n): A License bond B Performance bond C Lender's bond D Fidelity bond

d

A producer may be guilty of misrepresentation if they: A Requested timely written notice of loss for all claims B Issued a settlement check that totally releases the insurer C Denied a claim for failure of the policyholder to prove damages D Misstated the terms of a policy for the purpose of inducing a policyholder to lapse a policy

d

All of the following are covered by a BOP under Building coverage, except: A Outdoor furniture B Permanently installed machinery or equipment C Building fixtures, including outdoor fixtures D Money and securities

d

All of the following statements about the Business Income and Extra Expense Additional Coverages provided by the BOP are incorrect, except: A Anchor store dependency may not be a coverage trigger B Coverage is typically limited by coinsurance C Coverage is typically limited by a maximum monthly or total dollar amount D Coverage may be computed based on 20% of the building insurance limit plus 100% of the business personal property limit

d

All of the following vehicles are considered mobile equipment by the CGL, except: A Bulldozers B A vehicle with a permanently attached power crane C Forklifts D A pickup used on a farm

d

Surplus lines brokers are prohibited from doing all of the following, except: A Managing payroll for a non-admitted insurer B Arranging or placing treaty reinsurance C Placing auto insurance with a non-admitted insurer when the applicant has been rejected by the standard market, as an alternative to applying to the California Automobile Assigned Risk Plan D Issuing evidence of coverage with the non-admitted insurer's approval

d

T is a licensed property agent who transacts insurance on behalf of a non-admitted insurer, despite not being licensed as a surplus lines broker. T is subject to: A Imprisonment for up to 1 year B A misdemeanor charge only C A misdemeanor charge and a $100 penalty D A misdemeanor charge and a $500 penalty

d

The purpose of a certificate of authority is to: A Allow producers to transact business B Give a producer authority to represent a certain insurer C Permit a deceased producer's relative to act for the producer D Permit an insurance company to transact business

d

Which of the following is not a type of Surety bond? A Contract Bond B Fiduciary Bond C Litigation Bond D Name Schedule Bond

d

Which of the following is not an example of an unfair trade practice? A False entry in an insurer's records B Discriminating between persons of the same class that have essentially the same hazard C Misrepresenting the benefits of an insurance policy D Advertising on the internet

d

Which of the following is not an unfair discriminatory practice? A Determining insurability using an applicant's race B Using an applicant's birthplace for purposes of identifying the applicant C Determining insurability using an applicant's sexual orientation D Refusing to accept an application due to an applicant's marital status

d

Which of the following statements would be interpreted the same as if the word "shall" were used? A A producer may deliver a policy in person or by mail B An insurer may decline an application if required information is missing C An insurer may rescind a policy for misrepresentation of material information D An unlicensed producer may not transact insurance with the public

d

Which of the following would not be recognized as a person under the Insurance Code? A Wilson and Wilson, a limited liability company offering accounting services B J, an unmarried man, age 35 C J. Wilson, Inc., a business involved in interstate trucking with 35 employees D W, a seven-year-old german shepherd

d

Which type of Workers' Compensation benefits are usually unlimited? A Death B Rehabilitation C Disability D Medical

d

When a proper entry is made on the Declarations Page of a BOP, outdoor signs would be: A Covered on and away from premises B Covered for named perils only C Covered only if attached to the building D Covered on an open perils basis

d COVERED FOR AN OPEN PERIL BAE

All of the following are true of medical payments provided by the CGL, except: A The injury must be reported within one year of its occurrence B They include first aid expenses C They are paid regardless of fault D They pay for personal injury, not bodily injury

d.

C and D insure their home for $200,000 on a Special Form Homeowners Policy. During a state of emergency, a wildfire causes a $220,000 loss to the dwelling. Their insurer would: A Pay up to the Coverage A limit B Automatically increase the Coverage A limit by 30%, making the Coverage A limit $260,000 C Pay up to the Coverage A limit and inform C and D that the remainder may be covered by federal emergency relief funds D Allow the limits for Coverages A and B to be combined, which would cover the full $220,000 loss

d.Allow the limit for coverages A and B to be combined which would cover the full $220,00

The Causes of Loss - Basic Form insures against all of the following perils, except: A Hail B Volcanic action C Falling objects D Sinkhole collapse

falling objects

The Causes of Loss - Broad Form insures against all of the following perils, except: A Weight of ice and snow B Falling objects C Flood D Volcanic action

flood

The Insuring Agreement in an insurance policy is best described as: A It determines the coverage that is provided B The name and address of the insured and the name of the insurer C A description of the property being insured D The Additional Coverages provided by the policy

it determines the coverage that is provided

Which property Condition provides that the insurer may broaden coverage during the policy period without an increase in premium? A Other Insurance B Assignment C Liberalization D Appraisal

liberation

A policy is issued for a premium of $500 per year, but a condition that would have caused the premium to be substantially more was misrepresented in the application. This information is deemed by the insurer to be: Warrantied B Waived C Material D Non-disclosed

material

Which of the following is not true about a reciprocal insurance company? A Each subscriber assumes a share of the risk of all other subscribers B It is managed by an attorney-in-fact C Members are grouped into syndicates D If funds are insufficient to pay claims, the subscribers are assessed for additional premium

members of the group are syndicated

If an insurer offers to renew a residential property policy, a renewal offer: A Must be delivered 25 days before policy expiration B Is not required C Must be delivered 60 days before policy expiration D Must be delivered 45 days before policy expiration

must be delivered 45 days before policy expirations

The Contents Broad Form Homeowners Policy provides which of the following? A Named perils on a replacement cost basis B Open perils coverage on an actual cash value basis C Open perils coverage on a replacement cost basis D Named perils on an actual cash value basis

names perils on actual cash value basis

All of the following statements regarding property insurance are correct, except: A The insurer may cancel a policy, after providing proper notice B The owner of clothing left in the care of a dry cleaner is called a bailee C A binder is a temporary proof of insurance D A property that contains neither occupants nor personal property is deemed vacant

the owner of clothing left in the care of a dry cleaner is called baille

All of the following are included in the Declarations of a property policy, except: A The coverage amount B The policy terms C The premium amount D The perils not insured against

the perils not insured against

Which of the following statements about binders is correct? A A binder will not end when the policy is issued B A binder does not name the company providing coverage C The premium amount would not be stated D A binder always expires 15 days after its inception date

the premium amount that would not be stated

A consumer is informed that their name, email address, and browsing history have been collected by a business. Under the California Consumer Privacy Act of 2018, the consumer has a right to do all of the following, except: A The right to amend the information, though the consumer may not delete it B The right to opt out of the sale of the information C The right to know how that information is being used and shared by the business D The right to non-discrimination for exercising any right allowed by the Act

the right to amend the information though the consumer may not delete it