SIMULATED MISSED
Debbie falls on Bill's front porch and has medical costs of $1200. How much will be paid under Bill's Homeowner's policy regardless of who is negligent?
$1000
The maximum payable for damage or loss to signs attached to the building covered under a BOP is:
$1000
Roxanne bought a 50 inch TV four years ago for $2400. During the storm, her house was struck by lightning and the current fried her TV. The TV depreciates at $400 per year and a similar TV cost $1200 today. Assuming Roxanne's homeowner policy has a replacement cost endorsement for personal property, how much can she expect to receive as indemnification for damaged TV?
$1200
You have a standard HO-3 policy with no endorsements. Your house is damaged by fire. Among your losses is a Rolex watch valued at $2,000. Disregarding the deductible, how much will the company pay for the loss of this item?
$2,000 less depreciation
The maximum amount payable under the homeowners policy for theft of silverware is
$2,500
Tim purchases a homeowners policy worth $700,000 with a 4% deductible. A few months later, a hailstorm destroys his roof, porch, and windows, causing $50,000 in damages. Tim should expect_______ from the insurance company to pay for the damages.
$22,000
Uninsured motorists property damage is an optional coverage that has a minimum deductible of
$250
A homeowner policy has been issued with $75,000 of coverage on a dwelling. What is the automatic amount of insurance on personal property?
$37,500
The ABC Office Supply Corporation carries $100,000 insurance on a storage building held under a $50,000 mortgage acknowledged in the policy. ABC stores dynamite in the building without informing the insurance company. There is an explosion and the building is destroyed. What is the maximum amount the mortgagee can recover?
$50,000
Ellen is insured under a Personal Auto Policy with Bodily Injury limits of $25,000 / $50,000. She is responsible for an accident that hurts three people for $12,000, $30,000 and $15,000 respectively. Her policy would pay
$50,000.
The additional coverage for fire department service charges is how much on the DP-1?
$500
Under the National Flood Insurance Emergency Program, what is the maximum limit of coverage that may be written for a commercial apartment building?
$500,000
Jane Tindall bought a personal auto policy with limits of 25/50/10. How much coverage would she have to buy on a single-limit basis in order to have equivalent coverage?
$60,000
The DP-1 covers 11 named perils; the DP-2 covers how many more perils?
4
If an insured with an HO-6 purchases $50,000 of contents Coverage C, how much coverage is automatic for Coverage D-- "loss of use?"
50% of $50,000, or $25,000
How many hours is a volcanic eruption considered to be one occurrence on a homeowners policy?
72
What is true with regard to products and completed operations coverage under a "claims made" form?
A separate aggregate limit applies to this coverage under a CGL policy.
The coverage limit for a dwelling under construction is the:
Actual value on the date of completion
When Mary leaves her stove on by accident, she starts a fire that destroys her kitchen and leaves smoke damage throughout her home. While the fire department puts the fire out, the influx of water causes extensive damage as well. On top of all of that, Mary is forced to board her three dogs and a kennel for several weeks while her house is under repair. The kennel charge would be considered:
An indirect loss
What is considered to be an occurrence?
An occurrence is loss resulting from repeated exposure to a continuously similiar event.
Under a personal auto policy, what statement about a newly acquired additional vehicle is false?
Automatic liability coverage is provided to the end of the policy term.
Which of the following endorsements would increase business property on and off the premises and also include limited liability coverage for a business?
Business Pursuits
Which of the following is often coverage B in the Business Owners Policy?
Business personal property
Cathy's Bridal Shoppe is participating in the bridal fair at the convention center. In order to get everything to the convention center, Cathy rents a 26' box truck. An accident occurs which is Cathy's fault. Which of the following is true regarding this situation?
Cathy needs the Hired Auto Endorsement added to her BOP.
Under the H0-2 policy, all of the following are covered except:
Farm buildings
Larry just bought his first home - a cheap fixer-upper in a town where the average snowfall exceeds 80 inches per year. It may be an old house in a rundown neighborhood, but he still wants to protect his initial investment. What is the cheapest policy option that would protect Larry's financial interest in his home, even in the winters?
HO-2
Which is an exclusion under Part Two employers liability, of the workers compensation policy?
Injury occurring to an employee permanently assigned to work outside of the state
What form would provide open peril coverage on a property's contents?
It is not available.
What is NOT true about the claims made liability form?
It permits a "stacking of limits" for claims resulting from long-term exposures to loss conditions. (stacking is prohibited.)
The crew of a cruise ship is covered for Workers' Compensation by the
Jones Act.
Which one of the following list all of the required elements for establishing a charge of negligence?
Legal duty owed, breach of legal duty owed, proximate cause, damages
What statement regarding the personal auto policy is NOT true?
Liability coverage excludes non-owned autos.
What statement is FALSE concerning business auto coverage?
Medical payments coverage is automatically provided.
The personal auto policy's medical payments coverage would NOT provide protection for which of the following?
Occupants of the car that was struck by the insured
Rowboats and canoes are covered as personal property of the insured but only if the loss:
Occurs on the insured's premises
Ohio motorists who cannot procure auto insurance through ordinary methods may be able to secure coverage through what state-sponsored plan?
Ohio Assigned Risk Plan ("A" for assigned, "A" for auto)
In liability policies, supplementary payments are:
Payable in addition to the policy limit of coverage
On the CGL which of the following will have a separate aggregate limit?
Products and Completed Operations Liability
What is not included on an unendorsed farm policy?
Professional liability
When Tony rents out his house to Sue for $1700 per month, Sue informs her insurance company, who add Tony as an additional insured on her renter's insurance policy. A few months later, Sue leaves town without notice taking all of her things. Tony may now:
Remove his name from Sue's policy
Insured has a BOP policy and a separate policy on their printing press. When a loss happens to the printing press, what coverage applies?
Separate policy on the printing press pays the loss
The policy period of a policy is based on:
Standard time
On the BOP, in which situation would Utility Service - Time Element coverage apply?
Steve's Software Solutions loses power for two days when lightning damages the power station. Steve experiences a significant loss of income during the outage
What is it called when someone does something so inherently dangerous that the public decided they are responsible?
Strict liability
Which of the following perils is covered by the HO-2 and HO-3?
Sudden and accidental rupture of a heating system
Since liability premiums are based on an estimate of gross sales or payroll, what statement is NOT true?
The insured must submit midterm reports of sales or payroll.
What statement about a homeowners policy is true?
Theft losses are covered.
What statement is true concerning the homeowner's policy coverage for your 200- horsepower motorboat?
There is $1,500 property coverage and no liability coverage
What is NOT true about the Scheduled Personal Property endorsement?
There is a mandatory $250 deductible.
Under a business owner's policy, the "employer's non-owned liability" coverage would pay for
an employee driving his or her own car on company time.
An insurer licensed to do business in the state is considered to be a(n)
authorized insurer.
The best description of "garage keeper's coverage" is
bailee coverage.
The personal liability section of a homeowners policy covers
bodily injury or property damage caused by the personal activities of an insured.
Uninsured motorist coverage is NOT provided for bodily injury sustained by a covered person if
bodily injury results while a covered person is occupying a covered auto carrying property for a fee.
What is NOT an optional coverage under a business owner's policy?
business income
Uninsured motorist property damage
can be written on a vehicle insured for collision coverage.
Rita has a property policy covering her home and contents. After a heavy wind storm she wants to know if that peril is covered. She needs to review the
cause of loss form attached to her policy.
Retroactive dates are used with
claims made forms.
The marine form, Electronic Data Processing, can cover all of the following, EXCEPT
combines
The special personal property endorsement (HO-15) provides "all risk"
coverage on contents.
Robbery and safe burglary coverage provides protection for
damage to a vault.
Which of the following is excluded on the Garage policy?
damage to the customer car left for repair
The "farm coverage causes of loss" broad form does NOT cover
dishonest or criminal acts.
A common-law defense (against being sued for negligence) in which it is argued that, since the injured person agreed to participate in the activity causing the injury, he or she accepted all risk of injury, is
doctrine of assumption of risk.
What is NOT a definition of mobile equipment?
elf-propelled snow plow
Under the personal auto policy, what person would be EXCLUDED from coverage for bodily injury and property damage liability?
employee of the named insured, while transporting passengers for a fee
What must you do to obtain earthquake coverage for your property?
endorse the earthquake coverage to your policy
What optional coverage CANNOT be purchased in a business owner's policy?
flood coverage
What protects the insured from loss of shipping costs?
freight insurance
Transfer of a risk to an insurance company, with no losses borne by the individual, best describes
insurance.
What would be excluded by a policy providing automobile medical payments insurance?
insured is injured driving the company truck on the job
An Extension of Business Personal Property Temporarily in Portable Storage Units,
is covered up to $10,000.
When a business will shut down due to a covered loss, the indirect consequential loss that accrues over time would be
loss of income.
Bodily injury does NOT include
loss of use.
What would NOT be a part of Section I of the homeowner's policy?
medical payments to others
The definition of Securities for Commercial Crime includes all of the following EXCEPT
money.
What home-based businesses would most likely be covered for liability under the homeowners endorsement permitted incidental occupancies?
music studio in the basement
An all risk HO policy includes loss caused by
mysterious disappearance.
A "building and personal property" coverage form automatically provides for what extension of coverage?
newly acquired property
You decide to quit paying premiums at the next renewal date; this is called
non-renewal.
What is the deductible approved by the Ohio Mine Subsidence Association?
not less than $250 or more than $500
What type of an insurance contract would be needed to provide coverage for warehouse-to-warehouse movement?
ocean marine
What is NOT covered as an insured location on the homeowners policy?
off-premises storage units
What would NOT be eligible under the nationwide definition?
office buildings
Wanda Jones has a set of earrings valued at $5,000. However, each earring is only worth $1,000. In the event of a loss of one of the earrings due to a fire, the company would settle the claim by
paying Wanda $4,000.
In a property insurance contract, an insured's consideration is the
payment of the premium.
The most the insurer will pay for one person's injury or property damage is known as the
per person limit.
The purpose of the FAIR Plan is to
provide a method of obtaining property coverage. (not guarantee)
The "accounts receivable coverage" form
provides coverage for sums due to the insured from customers that are uncollectible due to loss, damage, or destruction of accounts receivable records.
What best describes the scheduled personal property endorsement or the separate policy called a Personal Articles Floater?
provides very broad "all risk" coverage for scheduled property
Various optional endorsements may be added to the PAP, EXCEPT
single limit liability.
Eligible apartment houses for a BOP include those that do NOT exceed
six stories and 60 units or less.
The Ohio FAIR Plan would provide protection against what type of loss?
smoke damage to business machinery
Being held responsible for someone's injuries, even though you might not have been negligent, is defined as
strict liability.
Coverage added to the policy at no additional cost to the insured are referred to as
supplementary payments. (sometimes called additional coverages.)
The loss sustained form in crime insurance will cover losses
sustained within the policy period.
A robbery is best defined as
taking of property by threat of bodily harm.
The burglary and robbery endorsement would be added to
the standard BOP.
The term "risk" may be defined as the
uncertainty of financial loss.
What must be added by endorsement on the DP-1?
vandalism damage
