test 3
How many "squares" of a roof will 2 bundles of three-tab shingles cover?
2 squares
Homeowners policies cover all of the following, EXCEPT:
A 2-family dwelling occupied by tenants who are renting from the named insured would not be covered under a Homeowners policy. Rental property is covered under the Dwelling policies
Which of the following types of property would be covered by Coverage B of a standard, unendorsed Businessowners policy?
A copy machine that is leased by the covered business is covered by Section I - Coverage B Business Personal Property. The other answer choices are listed as "property not covered".
Harry Smith, a New Hampshire resident, has suffered a property claim. Unknowingly, the insurer employs an unlicensed person to adjust the claim. Both the insured and insurer agree on an amount. Is the adjustment of the claim considered a binding agreement?
Any claim adjusted to the satisfaction of an insurer and the insured or claimant by an unlicensed adjuster will bind the insurer.
All of the following statements are TRUE regarding the Flood Coverage Endorsement to the Commercial Property policy, EXCEPT:
Back-up or overflow of a sewer or drain is covered if that overflow occurs WITHIN 72 HOURS after the flood recedes and the overflow was caused by the flood, not 48 hours.
Coverage F under the farm forms covers which of the following?
Coverage F covers unscheduled personal property on a blanket basis. One limit for all business personal property is stated. The items are not scheduled as they are under Coverage E.
Third-party provisions allow for an entity that lends money to an insured to purchase property, to be named on the insurance for that property. In property insurance, this is known as a "standard mortgage clause." In auto insurance, it is known as:
Loss payable clause.
Which type of damages is not intended to indemnify the plaintiff?
Punitive damages are awarded in cases of gross negligence for the purpose of punishing the defendant. Special and general damages are types of compensatory damages, which are intended to indemnify the plaintiff.
If an insured carries Coverage C under a Dwelling policy, how much coverage applies off the insured premises (world-wide basis)?
The DP forms have a 10% limitation of the Coverage C amount when personal property is OFF the premises.
If an insured is covered under an HO-2 policy, damage caused by wind to his/her personal property would be covered if:
The HO-2 provides coverage for the broad form perils on personal property. However, for loss due to wind, the wind would first have to damage the structure, create an opening, and then damage the personal property inside the building. If the wind creates the opening in the structure, the damage to the person property is covered. If the insured creates the opening, such as leaving a door or window open, the damage to the person property will be excluded.
The Medical Expense coverage for a standard Businessowners policy will pay for all of the following, EXCEPT
The Medical Expense coverage under a standard Businessowners policy does NOT cover any insured.
Which of the following NFIP forms provides replacement cost coverage if the building meets the other eligibility requirements for RCV?
The NFIP Dwelling and RCBAP forms provide loss settlement at replacement cost value only on single-family dwellings.
Which of the following coverage endorsements under commercial crime and bonding would cover an ATM machine?
The automated teller machine endorsement provides coverage for the loss of money except by employees.
An insured carries a general liability policy and has hired a trucking company to transport equipment to the business location. The trucking company carries a commercial auto policy. The insured loads a piece of machinery onto the truck and fails to secure it properly. The trucking company is transporting the cargo and it falls off the truck and hits another car. Which policy or policies would cover this claim?
The commercial auto policy would respond to cover the claim for damages to the damaged party. The damage to the cargo itself would not be covered. The trucking company and the insured should both carry Inland Marine cargo coverage.
The insured is covered under a standard Businessowners policy. She has several computers used in the business and the electronic data stored on them becomes corrupted as a result of lightning. The cost to research and restore this data is $20,000. How much will the policy pay for the electronic data?
The coverage provides up to an annual aggregate of $10,000. The cost to replace or restore electronic data is covered if the data is corrupted or destroyed by a covered cause of loss.
The business auto policy liability exclusion pertaining to pollution removes coverage for each of the following, EXCEPT
The escape of pollutants caused by damage to the property containing them when the damage results from the use of a covered auto.
The provisions relative to the suspension of payment due to arson do not apply to a lender that holds a valid recorded mortgage on the property in question. Therefore, the lien holder is fully reimbursed for its insurable interest in the property. The insured is not paid due to the charge and conviction of arson.
The insured sets a fire to his home and is found to be guilty of arson. There is a lien on the burned property by a mortgage company in the amount of $150,000. The property is insured for $300,000 and is a total loss. The personal property of the insured, covered separately by a Homeowners policy for $150,000, is also a total loss. How will this claim most likely be paid?
Coverage A of the HO-2 form would cover which of the following items?
The paint used for the building would be covered under the building limit under Coverages A and B (other structures). The mower is personal property covered under Coverage C. A detached fence is considered to be a separate structure and is covered under Coverage B. Grave markers have a separate limit in the policy for $5,000.
The "Alterations & New Buildings" coverage of the Business Income form pays for losses to new buildings and their additions being constructed for business operations. Which of the following best describes the "period of restoration" when a loss occurs under this additional coverage?
The period of restoration only applies under this additional coverage if the loss delays the start of business operations in the new location and begins on the date business operations would have begun had the loss not occurred
The law recognizes two types of waivers. They are:
They are express and implied. An express waiver occurs when the insurer or its representative knowingly gives up a known right under the insurance contract. Perhaps the right to request an appraisal of the damaged property is an example. By comparison, an implied waiver may be the result from some act of neglect on the part of the adjuster.
The "impaired property" exclusion of a CGL policy's Coverage A deals mainly with:
This exclusion deals with property that may have been installed but does not perform properly and the premises cannot be used (loss of use) due to this impairment of the the installed property. An example would be a contractor who has installed a heating system during the winter, however, it does not function properly, leaving the building too cold to be occupied. The insured suffers loss of use of his/her building, yet there is no bodily injury or property damage. The loss of use suffered by the insured under this circumstance will not be covered due to the "impaired property" exclusion.
In addition to the license application, the Commissioner will further require that an applicant for an adjuster license in New Hampshire submit __ character affidavits signed by persons other than relatives who have known the applicant for not less than __ years.
Three character affidavits are required from persons who have known the applicant for at least two years.
To satisfy the financial responsibility law in New Hampshire the owner of a vehicle must carry limits of:
To satisfy the financial responsibility law, the insured must carry limits of at least 25/50/25. Liability insurance is not compulsory; limits are for financial responsibility.
A business covered by a standard Businessowners policy is shut down due to the acts of a civil authority. Which of the following additional coverages would NOT be subject to a waiting period before coverage would apply?
Under the BOP forms, if the actions of a civil authority render a business inaccessible due to loss of property at "other than" the insured location, any extra expenses incurred are not subject to the normal 72-hour waiting period for business income. Coverage is available for up to 4 weeks, or when the civil authority business income coverage ends, whichever is later.
Uninsured motorist coverage and medical payments coverage under a Business Automobile policy:
Uninsured motorist coverage and medical payments coverage under a Business Automobile policy are not covered by the policy unless added by endorsement.
What specific type of liability policy gives an owner protection against liability claims arising out of the acts of its independent contractors?
What specific type of liability policy gives an owner protection against liability claims arising out of the acts of its independent contractors?
Claims adjusters have a close relationship to the legal profession, but must be careful not to become involved in the unauthorized practice of law. Which of the following would be an example of an adjuster who is engaged in the unauthorized practice of law?
Adjuster are not permitted to draft any document that is intended to have a legally binding effect.
The insured carries a yacht policy and is pulling a water skier. The skier is a family member and is injured. What coverage might apply to this accident?
Medical payments coverage under the yacht policy would cover this loss up to its specified limit.
All of the following statements about the HO-8 are correct, EXCEPT:
The HO-8 Form provides coverage for the named BASIC perils for Section I. The HO-2 provides coverage for the BASIC and BROAD form perils, making the HO-2 Form broader than the HO-8 Form.
The physical damage coverage for an auto dealer's vehicles held for sale is covered under the dealer's Garage policy:
The physical damage coverage is provided on a blanket basis for the auto dealer's owned vehicles because it would be difficult to list each vehicle on the Declarations page. This coverage will NOT pay for damage to customers' cars left with the dealer for repair or service.
Billy has his commercial interests covered with a Commercial Package policy. He would like to modify one of his coverage parts. This change will be made by:
To make a change to one of the coverages in a Commercial Package policy, a single endorsement would be added to that coverage part. An interline endorsement is used to make changes to two or more of the coverage parts. Changes would not be made to any coverage part by altering the declarations or conditions section of the policy.
The property insurance term "improvements and betterment" applies to:
When a tenant occupies a non-owned structure they may make "improvements and betterments" to the real property. While they are occupying the building they have an insurable interest in these items. When they move the improvements and betterments must must remain with the dwelling/building. The monies spent on improvements and betterments can be covered in property insurance.
Common exclusions in commercial inland marine include government action, nuclear hazard, war, loss of use and loss of market, dishonest acts by an insured or its employees, voluntary parting of property by false pretense, and unauthorized instructions to transfer property.
Which of the following is a not a common exclusion in inland marine insurance?
What is the maximum limit that can be paid by the New Hampshire Guaranty Association for workers compensation claims?
no limit
Nixon Construction Company carries a CGL policy that has a $500,000 per occurrence limit, $1,000,000 general aggregate limit and a per person medical payments limit of $25,000. Employees cause $200,000 property damage and $400,000 bodily injury when persons are injured and property is damaged in connection with a construction project. Two of the employees suffer medical expenses of $15,000 each. How much will the insurer pay on behalf of Nixon Construction?
The most the policy can pay is the occurrence limit of $500,000. The employees are not covered under medical payments. They would collect under workers compensation coverage. Remember that the policy cannot pay more than the per occurrence on any one claim. Therefore, in this question the insured would have to pay the remaining $100,000 of this claim because the insurer will only pay $500,000 of this $600,000 claim.
