Sim. Exam 3

In insurance, anything that modifies the original contract, either adding or removing coverage, is done through a/an

A) endorsement b) Additional coverage form c) Condition d) Flexible policy

An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's liability policy has a limit of $500,000. This amount applies to the total damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does the insured have?

a) Split b) Aggregate c) Per occurrence D) Combined single

Which of the following is true regarding the notice of the insured's right to file a complaint?

a) The notice must be prominently displayed in the agent's office during the time of application B) Every insurer must provide such notice to its policyholders when the policy is issued c) The Dept of Ins is responsible for providing the notice to the insurance applicants d) The notice may be provided to the policyholders upon request

A claim is considered overdue if NOT paid within how many days after the insurer receives written notice?

A) 30 days b) 60 days c) 90 days d) 180 days

If a consumer requests additional info concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

A) 5 days b) 7 days c) 10 days d) 3 days

How much is covered for debris removal under the HO property additional coverage?

A) All reasonable costs b) 90% of the total cost of clean-up c) Everything after a $200 deductible d) Nothing, unless added by an endorsement

All of the following are conditions commonly found in the insurance policy EXCEPT

A) Insuring agreement b) Cancellation and nonrenewal c) Subrogation d) Appraisal

If the insured owns a watch valued at $10,000, full coverage can be provided on a homeowner's policy by purchasing the

A) Scheduled personal property endorsement b) Special limits of liability endorsement c) Personal property replacement cost endorsement d) Blanket personal property endorsement

An insured's accounts receivable records have been damaged. The loss may be covered with

A) The accounts receivable coverage form b) Commercial property insurance c) The commercial articles coverage form d) The valuable papers coverage form

According to the appraisal condition of a homeowners policy, what procedure may be followed if the insurer and insured do not agree as to the size of a loss?

a) The parties must pursue a lawsuit b) The policyholder is allowed to hire an appraiser, and the insurer will pay the amount determined C) Each side selects its own appraiser, and the appraisers select an umpire to settle any different between appraisers d) The insured is required to accept what the insurer is willing to pay

Which of the following is NOT an element of negligence?

a) Unbroken chain B) Libel c) Duty d) Breach

Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency mus

a) Defend the report if the agency feels it is accurate b) Change the report c) Send an actual certified copy of the entire report to the consumer D) Respond to the consumer's complaint

according to businessowners policy section I, which of the following is NOT a condition to be met for the terms of the policy to apply to mortgageholders?

a) If the insurer denies the claim, the mortgageholder may still take steps to receive loss payments b) The mortgageholder has the right to receive loss payment c) The insurer will pay covered losses or damage to each mortgageholder shown in declarations D) The mortgageholder must petition the state dept of ins for named status

Following a property loss that is covered under a businessowner's policy, if the insurer and insured cannot agree on the amount of the loss, what method is used to resolve the issue?

a) No-fault procedure B) Appraisal c) Arbitration d) Adjudication

What is the basic limit for costs incurred at the place a vehicle is disabled provided by the towing and labor costs endorsement?

A) $25 b) $50 c) $75 d) $100

a resident agent must pay a biennial regulation fee of

A) $35 b) $50 c) $70 d) $100

Under businessowner's policy Section I, if an insurer wants to nonrenew a policy, how many days before the expiration date must the insurer notify the mortgageholder?

A) 10 days b) 15 days c) 20 days d) 30 days

The Commissioner can issue a surplus lines license to

A) Any licensed agent or broker b) Any authorized insurance company c) Any unauthorized insurance company d) Any of the above

Which of the following is NOT a govt insurance program?

a) Medicare b) Medicaid C) Federal Deposit Insurance Corporation (FDIC) d) Old-age, Survivors and Disability Insurance (Social Security)

What is a definition of a unilateral contract

a) One author: the company wrote the contract; the insured must accept it as written b) If one party makes a condition, the other party can counteroffer C) One-sided: only one party makes an enforceable promise d) Two or more parties go into a contract understanding there may be an unequal exchange of value

Which of the following is an example of a protective safeguard in a businessowner's policy?

a) Recordkeeping b) Professional liability endorsement C) Automatic sprinkler system d) Errors and omissions insurance

Rates that are established based on the similarities of the risk with other risks are known as

a) "A" rates b) Merit rates C) Manual rates d) Experience rates

WIP's maximum limit of coverage for fire policies on any eligible property, other than a dwelling, at one location is

a) $200,000 B) $500,000 c) $300,000 d) 1,000,000

After the original hearing and a final order is issued, an aggrieved person may request a re-hearing within

a) 30 days b) 40 days c) 15 days D) 20 days

In equipment breakdown coverage, all accidents would be considered a single accident if they occur

a) At the same location within a 24-hour period b) At the same location within a 48-hour period C) At a single location at the same time and from the same cause d) At all insured locations at the same time and from the same cause

All of the following are true regarding physical damage coverage EXCEPT

a) Losses to nonowned autos will be covered the same as the broadest coverage available for any covered auto, except nonowned trailers are limited to $1,500 b) The poicy will pay up to $20 per day, up to a max of $600 for rental transportation c) The insurer will pay for direct and accidental loss to a covered auto minus any applicable deductible D) The limit of liability is the greater of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle