TQ11
B- $1,500
A Homeowners Form has a $50,000 personal property limit. Disregarding any deductibles, what is the most the insured can collect if a boat valued at $1,500 is stolen from the premises? A- $1,000 B- $1,500 C- $1,400 D- $2,000
A- covers damage to customers' property when the insured is liable
A bailee customers' policy: A- covers damage to customers' property when the insured is liable B- is purchases by individual customers of a bailee C- protects an insured from liability for injury to customers D- covers damage to the insured's property caused by customers
A- The insured hired Max to drive a truck the insured's company leases from a trucking company.
A commercial umbrella liability policy would usually cover which of the following situations? A- The insured hired Max to drive a truck the insured's company leases from a trucking company. B- Max took the company truck to a garage for repairs. A mechanic was moving the truck to park it outside and misjudged the distance between two other customers' cars. The truck damaged both cars C- The owner of the hired vehicle is also an insured D- none of the responses are covered
C- $600
A covered auto requires $700 in repairs because of damage done by a limb from a dead tree that fell on it. The auto's BAP coverage has a $100 comprehensive deducible and a $250 collision deductible. Assuming that the ACV and replacement cost of the vehicle is $700, the insurer will pay: A- 0 B- $450 C- $600 D- $700
C- loss in excess of the value of the property as declared by the owner
A furrier customers policy does not cover: A- property in the custody of the insured B- property owned by the insured's customers C- loss in excess of the value of the property as declared by the owner D- the furrier's liability as a bailee
D- negligent acts of a staff nurse or aide
A physicians, surgeons, and dentists professional liability policy would cover which of the following? A- premises liability only B- negligence of the professionals and criminal acts C- negligence of the professionals and premises liability D- negligent acts of a staff nurse or aide
C- 180 days
An insured has received actual cash value payment from the adjuster for a covered loss. At the time he is satisfied with the payment. He later changes his mind and wants the full replacement value. How many days does he have to submit the receipts to get the replacement cost payment under a HO-3 form? A- 30 days B- 60 days C- 180 days D- 365 days
A- any licensed property agent
Flood insurance can be purchased from: A- any licensed property agent B- any insurance agent C- the federal authorities only D- your local community
D- actual cash value
How are household personal property claims settled under the farm policy? A- replacement cost B- market value C- replacement cost if insured 80% to value D- actual cash value
B- scheduled property endorsement
How can an insured cover specific types of property under his Homeowner policy? A- replacement cost endorsement B- scheduled property endorsement C- specific property endorsement D- actual cash value without replacement cost
C- 45 days
How many days does the liberalization clause provide for under the BOP prior to or during the policy? A- 55 days B- 30 days C- 45 days D- 35 days
D- fire damage
Identify the coverage NOT included for a $25,000 limit of insurance under the ISO Equipment Breakdown policy. A- ammonia contamination B- consequential loss C- data and media D- fire damage
A- 10% of the Coverage C limit
If an insured carries Coverage C under a dwelling form, how much coverage applies on a worldwide basis? A- 10% of the Coverage C limit B- 20% of the Coverage C limit C- 40% of the Coverage C limit D- 50% of the Coverage C limit
B- the hired and nonowned auto liability endorsment
If the named insured's employees use their own vehicles to run errands, and the named insured does not have commercial auto coverage, what coverage should be added to the Businessowners Coverage Form? A- the BAP auto endorsement B- the hired and nonowned auto liability endorsment C- the nonowned and borrowed auto liability endorsement D- coverage cannot be added and a separate auto policy must be purchased to protect the insured
A- relative degree of fault
In cases of comparative negligence, the proportional share of each party in the entire liability will be based on: A- relative degree of fault B- last clear chance rule C- intervening cause D- contributory negligence
B- legal purposes
In order for a contract to be binding in a court of law, it must be designed for: A- two parties B- legal purposes C- res ipsa loquitor D- easy interpretation
A- a surcharge in the rates for insureds
Insurers can recoup payments under the Federal Terrorism Risk Act by: A- a surcharge in the rates for insureds B- filing for a rate increase with the insurance department C- attaching an endorsement charging an additional premium D- collect the premium on the policy anniversary date
A- Mrs. Collins' auto policy
Mrs. Collins rents a house with an attached garage. While backing out of the garage her daughter opens the car door which catches the side of the garage causing severe damage to the wall. Mrs. Collins carries a HO-4 Homeowner policy and auto liability coverage. The landlord also carries a DP-3 on the dwelling and garage. Which policy should ultimately pay for this loss? A- Mrs. Collins' auto policy B- Mrs. Collins' HO-4 policy C- The landlord's auto policy D- The landlord's DP-3 policy
A- fine arts, antiques, and paintings
The "personal property replacement cost" endorsement does not apply to which of the following types of property? A- fine arts, antiques, and paintings B- furniture C- clothing D- wall mirrors
C- a commercial package policy
The Commercial Inland coverages can be included in: A- the standard fire policy B- a homeowner policy C- a commercial package policy D- a general coverage policy
B- comply with all of the terms of the policy
The condition "Legal Action Against Us" in a CGL policy requires the insured to: A- join any class action suit against the insurer B- comply with all of the terms of the policy C- ask the court for a declaratory judgement D- submit all disagreements to arbitration
B- extensions of coverage
The insured has purchased a new building and has yet to advise the agent of the acquisition. The building is covered on a limited basis because of the "newly acquired building coverage" clause. This coverage is found in the ________ section of the commercial property form. A- additional coverage B- extensions of coverage C- other insurance clause D- supplementary payments clause
C- $1,500
The insured has suffered roof damage as a result of a tornado. He makes temporary repairs until permanent repairs can be made. He spends $1,500 for this work. How much, if any, will the DP-2 dwelling policy pay? A- nothing B- $1,000 C- $1,500 D- $500 *reasonable repairs
B- $225,000
The insured is covered under a BOP for $200,000 on his building. The risk is completely destroyed by fire. It will cost $225,000 to replace the building. The cost to remove the debris is $25,000. How much, if any, will the company pay for this loss? A- $200,000 B- $225,000 C- $210,000 D- $190,000
A- products liability
The personal injury coverage in the commercial general liability policy insures against all of the following causes, EXCEPT: A- products liability B- libel C- slander D- wrongful eviction
B- indirect loss
Transportation expenses in a personal auto policy apply to what type of loss? A- direct loss B- indirect loss C- income loss D- liability loss
A- represents the insurer
Under West Virginia state statues, an insurance agent: A- represents the insurer B- represents the insured C- represents the agency D- represents the agent
A- the date of the loss
Under the Equipment Breakdown policy loss settlement provisions, what date is used to determine value? A- the date of the loss B- the inception date of the policy C- the original date of the equipment purchase D- the market value of the equipment
D- 60 days
Vandalism is not covered after a commercial building has been vacant for: A- 15 days B- 30 days C- 45 days D- 60 days
A- someone licensed in his or her state and obtains a license in another state to solicit insurance business in that state
What is the definition of a non-resident agent? A- someone licensed in his or her state and obtains a license in another state to solicit insurance business in that state B- one that is licensed by a company that is not authorized to write business in the agent's state of residency C- a surplus lines agent D- a clerical employee of an out of state insurance agency
C- a dwelling insured to 80% of replacement cost value
What is the exception to a flood insurance claim being paid on an ACV basis? A- dwelling contents B- commercial property buildings C- a dwelling insured to 80% of replacement cost value D- commercial building insured to 80% of replacement cost value
D- $10,000
What is the limit of insurance that applies to property in transit in the BOP? A- $1,000 B- $2,500 C- $5,000 D- $10,000
C- administrator's bond
What type of bond is required when a person dies without leaving a will? A- surety bond B- fidelity bond C- administrator's bond D- estate bond
A- 10 days prior to cancellation
When an insured shown on a Commercial Building and Personal Property Policy fails to pay the premium, the insurer is required to give advance written notice of cancellation to the insured and the mortgagee of at least: A- 10 days prior to cancellation B- 20 days prior to cancellation C- 30 days prior to cancellation D- 40 days prior to cancellation
A- not until the insured has complied with all policy provisions and within the time limit specified in the state laws
When may an insured sue an insurance company? A- not until the insured has complied with all policy provisions and within the time limit specified in the state laws B- anytime C- within three years of the claim D- within the time limits provided by the statute of limitations
A- peak season endorsement
Which of the following allows the insured to increase their contents coverage amount for specified periods of time when inventory may be higher than usual? A- peak season endorsement B- difference in conditions C- protective safeguard endorsement D- spoilage endorsement
D- all of the responses apply
Which of the following are excluded from the loan/lease endorsement? A- excessive use charges B- cost of warranties C- negative equity D- all of the responses apply
C- a house with no furnishings or occupants for over 60 days
Which of the following buildings is considered to be vacant? A- a house whose occupants have been on vacation for over 90 days B- a commercial office building in which 50% of the sq. footage is not leased C- a house with no furnishings or occupants for over 60 days D- a commercial building used only for storage purposes with no employees stationed there
B- hardware store
Which of the following could be covered under a BOP? A- bank B- hardware store C- bar D- amusement park
A- medical professional liability
Which of the following liability coverages may require the insured's consent before the insurance company settles and pays a loss? A- medical professional liability B- automobile C- products D- contractual
A- workers compensation is an exclusive remedy
Which of the following statements about workers compensation coverage is correct? A- workers compensation is an exclusive remedy B- workers compensation is identical in all states C- every state provides extraterritorial coverage D- workers compensation pays for pain and suffering
A- negligence must be proved
Which of the following statements is false concerning "no-fault" auto insurance? A- negligence must be proved B- it covers on a first-party basis C- most systems allow for litigation in cases of death or serious physical injury D- it covers loss of income
A- The program designates an insurance company as the insurer of a specific insured
Which of the following statements is true about the Automobile Assigned Risk Program? A- The program designates an insurance company as the insurer of a specific insured B- A number of insurance companies share the losses incurred by a specific insured C- An insurance agent designates the insurance company for a specific insured D- The insured designates a specific insurance company to insure his auto
A- theft
Which of the following terms provides the most broad definition of criminal activity? A- theft B- robbery C- burglary D- extortion
D- hitting a pot hole
Which of the following would be considered a "collision" peril under auto physical damage coverage? A- riot B- striking an animal C- missiles or falling objects D- hitting a pot hole
