Readiness Exam Questions
If a person violates the commissioners cease and desist order, their license may be revoked, and the person may be subject to a maximum fine of
10,000
The business owners policy extension coverage form for personal property off-premises is limited to
10,000
Which of the following is INCORRECT regarding the Insurance Guaranty Association?
Producers may stress its guarantees to customers in a sales presentation
Which of the following would NOT be covered by commercial inland marine policies?
Property lost due to military action
The exact, direct, uninterrupted cause of loss is the
Proximate cause
When an insured's gardener was spraying weeds in his lawn, he failed to notice that the wind was drifting the spray into the neighbor's yard where he damaged their flower bed. The insured was found legally liable for this damage. This is an example of
Vicarious Liability
Among the applicants in the same class and life expectancy, which of the following factors can be used to determine premium rates?
Occupation
The purpose of the Iowa FAIR Plain is to
Make basic property insurance available to qualified applicants with the least possible expense
The FAIR Plan governing committee is composed of seven members. Five of those members are selected from various company and agency groups. Where do the other two come from?
They are selected by the other five members of the governing committee
