property guarantee exam

What amount of coverage is provided on HO policies for watercraft?

up to $1,500 (anthony sold his watercraft for $1,500

What are the two types of utility services enorsements?

Direct and time element

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

Personal?

The insurance company requires that an insured installs a fire alarm and an automatic sprinkler system as a condition for coverage. This is an example of what?

Protective safeguards endorsements

If the premiums collected by an insurer participating in the WYO flood program are insufficient to cover losses which of the following would be true?

The insurer will be reimbursed for all of the excess cost by the NFIP

The Businessowners policy extension coverage form for personal property off-premises is limited to

$10,000

All of the following are optional endorsements that may be added to the standard equipment breakdown coverage form, EXCEPT

debris removal

An applicant for property insurance owns a building in which combustible materials are stored in the furnice room. From an underwriting standpoint, this risk would likely be considered a

morale hazard (Lack of caution)

The limited theft endorsement designed for a landlord excludes all of the following EXCEPT

A lawnmower the landowner owns and keeps at rented premises (the form excludes coverage for money, deeds, bank notes, gold and silver, securities, and jewlery)

Which of the following is most likely INELIGIBLE for coverage under a businesowners policy?

A bank (Finacial institutions are typically ineglible for businessowners policy)

Which of the following would be required to become licensed as an insurance producer

A customer service representative who solicits no more than one policy a year (Once there is solicitation or commisions, a licensed is required)

The transfer of a legal right or interest in an insurance policy is called

assignment (valid only with the prior written consent of the insurer)

which of the following could most likely be issued a resident producer license?

Sally lives in a neighboring state but has an office in NJ (applicants can apply for resident license if they have a home or office in NJ)

There is a particular type of insurance that no insurer in NJ offers. In order for NJ residents to obtain this insurance, they will need to be covered by

surplus lines insurers (certificate of authority is not required)

According to business property coverage form vacany condition, if a policy is issued to owner of a building, the building will be considered vacant if what portion of the square footage is unused?

65%

For there to be negligent liability, all of the following must exist EXCEPT

A reasonable expection that the act may cause injury or damage (its like self intended harm if they know the damages was going to happen)

Which method of dealing with risk is applied when insurance is purchased?

transfer

An agency wants to obtain license statistics on one of its new producers. it request a document that the insurance department can produce, which lists the producer's license status, lines of license that the producer can transact, and other information. This report is called a

Certification of license status (provides basic license information from the past 4 years)