PSI PRACTICE EXAM

An insured with split liability limits of 100/300/100 is at fault in an automobile accident and the other vehicle sustains $6500 in property damages as well as two occupants have bodily injury and are claiming $150,000 each what is the most insurance will pay to each occupant?

$100,000

Which of the following is the standard amount of coverage a dwelling provided by the ho-6 unit owners policy?

$1000

Which of the following is the special limit or coverage on the homeowners policy form for periphery damage to personal watercraft?

$1500

Homeowner form ho-2 provides coverage for loss of appliances, carpeting, and other household furnishings for a maximum of how much?

$2500

A single earthquake constitutes all shocks that occur within which time period?

168 hours

Which of the following is the correct timeframe for earthquake shocks to be considered as single earthquake?

168 hours

For the purpose of workers? compensation insurance all of the following are subject to the workers? compensation laws, either as an employer or employee EXCEPT

A crew member of an ocean going vessel

Which of the following persons is covered for accidental injury on the insureds premises under the commercial general liability medical payments?

A volunteer worker

All of the following are examples of direct loss except

After a car crash you have to rent a replacement vehicle

What does an application for insurance contractually represent for the insured?

An offer

Which policy condition is invoked when parties to an insured loss cannot agree?

Arbitration

Which of the following professionals would purchase errors and omissions insurance to manage to he liability risk associated with their business endeavors

Attornery

All of the following describes a non owned auto under the commercial auto policy symbol 9 except

Auto not titled to an insured but available for regular use or named insured or family member

All of the following are exclusions are found under the personal auto policy part a liability coverage except

Bodily injury to an insureds nonresident family or relative

All of the following are the most commonly used personal inland marine forms except

Builders floater foem

Which coverage forms are used when the insured sustains loss of revenue due to direct physical loss from a peril insured against that forces the insured to suspend operations during the period of restoration?

Business income coverage form

Which of the following is excluded as a covered loss under the dp-3 coverage?

Damage by ice to outdoor radio and television antennas and aerials

Which part of the commercial general liability designates who is an insured?

Declaration

Underwriters are permitted to use all of the following when underwriting an application for insurance EXCEPT

Disability

The insured has a commercial auto policy with a drive other car broadened coverage liability for named individuals (DOC) endorsement. In which of the following would the named individual be covered?

Driving neighbors auto

All of the following are considered an insured under part a liability coverage of the personal auto policy except

Employee while insured is driving a company car

Workers compensation coverage is rated on the basis of which of the following?

Employers payroll

All of the following are unfair claims settlement practices except

Failure to respond to a first notice of loss within 24 hours

A cable company uses employees to install equipment in customers? homes. The company purchases a bond from an insurance company to protect itself from potential dishonest acts of the employees. Which of the following types of bond does the cable company purchase?

Fidelity bond

Gramm-Leech-Bliley Act was enacted to protect consumers right to privacy and made mandatory which of the following?

Financial institutions must have a privacy policy in place

What is it called if someone plugs too many electrical cords into a single outlet?

Hazard

Which homeowner form covers fixtures, installations and improvements made or acquired at the insureds expense?

Ho-4

Which of the following homeowners forms covers tenants?

Ho-4

According to Nationwide definition of marine insurance which category is an eligible marine risk?

Imported goods

Which of the following is how defense costs are paid in relation to the limit of insurance under the personal auto policy for bodily injury and property damage part a- liability coverage?

In excess of the limit

Which of the following characteristics of an insurance contract expresses the principle that the policyholder is returned to the the approximate financial condition as before the loss

Indemnity

After a loss occurs whose duty is it to complete a proof of loss?

Insured

All of the following are examples of insurance interest except

Insuring your friends automobile

Which of the following describes why the insuring agreement is the heart of an insurance policy?

It describes property covered and perils insured

An extended reporting period attached to a general liability policy provides coverage in which of the following ways?

It provides coverage for claims made outside the policy term

All of the following specify limits of insurance for the commercial general liability except

Legal defense

A contract that is against public policy is not enforceable according to which contract characteristic

Legal purpose

All of the losses are excluded from the DP-1 basic policy form except

Lightning strike

When an employer sends employees out of states on work related business which of the following must be do to ensure the appropriate workers compensation coverage?

List the states on the information page for the others states coverage

Which of the following would be covered by a commercial package policy

Loss due to crime

Which exposure is unique to mobile homes?

Loss from collision damage

Which of the following types of policy best describes the dp-2 broad form policy

Named perils

Absolute liability can be imposed by law and exist in the absence of which of the following?

Negligence

An insurance company's right to cancel a policy is often limited by state laws but is generally permitted under which of the following conditions?

Non payment of premium

Which of the following is an example of risk acoidance

Not driving a car to prevent getting in an accident

Which of the following forms trigger coverage for a loss under the commercial general liability policy if a loss happens during the policy period?

Occurrence form

When does the coverage begin for a builders risk form?

On the date construction starts above the lowest basement floor if there is a basement

The cause of loss form for farm property lists which of the following?

Perils property is insured against

All of the following are used by the courts to establish negligence except

Policy exclusions

Which of the following business liability exposures does a slip and fall loss fall under?

Premises and operations

Which of the following terms applies to policy that pays first when two policies cover the same property?

Primary

An insured has transportation expenses coverage under part d of the personal auto policy when involved in a collision coverage provided which of the followint

Rental reimbursement until the claim is settled by the insurance

Which of the following valuations methods best describes how a loss will be settled when the policy provides actual cash value settlement?

Replacement cost less depreciation

Workers compensation benefits for loss of wages includes which of the following?

Replacement of a portion of lost wages

The policy conditions as well as state laws permit the insurance company to cancel or rescind a policy when any or the following exist except

Representations

Federal crop insurance is a type of insurance sometimes called which one of the following?

Residual market insurance

The following are types of disability categories under workers compensation insurance except

Temporary & permanent

How does the BOP differ from the CPP?

The BOP prepackages a group of coverages desirable to small businesses.

Which of the following created the national flood insurance program?

The United States Congress

The insured has a loss with a private passenger no owned temporary substitute vehicle how will the loss be treated by the insureds own policy for physical damages?

The broadest coverage available extends from the insureds polixy

The insured carries uninsured motorist coverage limits of 100/300/100 and is struck by an uninsured motorist, who will pay insureds bodily injury damages claimed for $100,000?

The insureds insurance company

Which of the following policy assignment rights occurs when the named insured dies?

The insurers legal representative takes over the policy

Which of the following is the party who agrees to be responsible for loss in the case of a fidelity bond?

The surety

Which type of crime listed below best describes someone who waits until store personal are preoccupied and pockets merchandise while no one is looking and leaves without detection?

Theft

Which of the following is correct amounts paid as supplementary payments covered in the personal auto policy part a liability?

They do not reduce the policy limit

All of the following are excluded losses under part d damage to an auto or the personal auto policy except

To caps, covers, or Berliner's on pick up trucks

What is the purpose of the cause of loss form that list specific exclusions

To state which perils are insured against

Which of the following causes of loss to a vehicle will trigger collision coverage on the personal auto policy part d coverage for damage to your auto?

Vehicle upset

The property coverage of BOP includes which of the following?

carpeting that is permanently installed inside the building

Which of the following situations under dwelling policy conditions describe how the insurance company will settle a loss?

company has the option to repair to pre-loss condition

Punitive damages are intended to do all of the following except

compensate for actual financial losses

Employees are barred from suing employers in court to obtain compensation for injuries covered by workers? compensation because of which of the following doctrines?

exclusive remedy

The claims-made liability form provides coverage from a date that precedes the policy effective date. Which of the following defines that date?

retroactive date

Which of the following defines the term peril?

Cause of loss

Which of the following best describes the commercial general liability general aggregate annual limit as it applies to the coverage parts of the cgl?

Coverage a, b, and c apply in sum and are the most that will be paid subject to the general aggregate annual limit