Study test

Which federal act provides benefits to injured civilians who are employed by the federal government?

Federal Employees' Compensation Act

specialized type of insurance that guarantees the faithful performance of a trustee of employee benefit plans is called

Fiduciary liability insurance

CGL Coverage B (Personal and Advertising Injury) will cover

Inadvertent injury to others caused in the course of advertising the insured's product.

professional liability policy

Insurance coverage issued to a professional that covers the rendering or failing to render services of a professional nature. Policies are tailored to fit specific occupational needs.

Which of the following is a federal act that covers crews of ships the same as railroad workers?

The Jones Act is a federal act

An insured has $5,000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000 for the first passenger, and $8,000 for the second passenger. How much will the policy pay under medical payments coverage?

The limit is not more than $5,000 per person, per accident.

The members of a limited liability company are insureds under a businessowners policy (BOP) if

The limited liability company is designated as the named insured.

Who participates in the Michigan Automobile Insurance Placement Facility?

All authorized insurers writing auto insurance

What is the maximum civil fine a guilty party may pay for a single violation of the Insurance Code?

$5,000

The businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period?

1 year

If an insurer terminates a producer, the Commissioner must be notified. How many days does the insurer have to deliver this notice?

30 days

Which of the following describes contributory negligence?

Any degree of negligence by the injured party may bar recovery

Which of the following exposures is insured under Coverage I - Personal and Advertising Injury Liability?

Coverage I provides coverage for suits arising from the operation of a farming business, provided the specific act is not otherwise excluded.

How does insurance distribute the financial consequences of individual losses?

It transfers the risk to all persons insured

Which of the following coverages is included in an unendorsed homeowners policy?

Medical payment to others is automatically included in Section II of all HO policies.

An out-of-state producer wants to start selling insurance in this state. What type of license should the producer obtain?

Nonresident

A participating insurance policy may do which of the following?

Pay dividends to the policyowner. A participating insurance policy will pay dividends to the owner based upon actual mortality cost, interest earned and costs.

Under the personal auto policy, liability for bodily injury resulting from the insured's use of a nonowned automobile is

Provided by the insured's policy on an excess basis.

Which one of the following symbols used in business auto coverage is correctly described?

Symbol 9 - nonowned autos only

The federal act that provided more favorable benefits for interstate railroad workers by allowing the injured worker to sue the employer for negligence is the

The Federal Employers Liability Act (FELA)

Under farm liability, Coverage H includes

bodily injury and property damage

The party to a surety or fidelity bond who promises to fulfill the obligation is the

principal