types of casualty policies bonds and related terms

which of the following persons is required to hold a producer license - a person who administers employee benefits -a person who negotiates insurance contracts - a person who creates insurance advertisements - a person who takes messages related to claims

a person who negotiates insurance contracts

With respect to auto insurance, the term owned autos includes all of the following EXCEPT -a pickup or van titled to and used in the named insured's bsuiness -any private passenger auto titled to the named insured - a pickup or van acquired by the named insured during the policy period -any private passenger auto leased to the named insured for a period of more than 6 months

a pickup or van titled to and used in the named insureds business

which of the following statements is true regarding the premium computation for workers comp ins -the premium basis for workers comp ins vaires by the type of industry in which the insured is involved -the insured pays a guaranteed premium based on an estimated value of the annual income recieved. -the premium is set at the beginning of the policy period and will not change -a premium auditor has the right to examine the insured's compensation records at the end of the policy period to determine the actual premium basis

a premium auditor has the right to examine the insured's compensation records at the end of the policy period to determine the actual premium basis

which of the following can be licensed as a surplus lines broker -a property and casualty producer -a limited lines producer -any resident producer - any life and health producer

a property and casualty producer

which of the following policies will help an auto dealership cover most of its liability exposures -motor carrier coverage form -commercial general liability policy with a crime endorsement -a businessowners policy -a garage liability coverage

garage liability coverage

what is the fine, per violation, when found guilty by the director of unfair method of competition or an unfair or deceptive act or a prohibited practice?

$1000

an insured has $5000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are insured. Medical treatment costs $7000 for the insured, $4000 for the first passenger, and $8000 for the second passenger. how much will the policy pay under medical payments coverage?

$14000 (no more than 5000/ person)

transportation expenses are covered under a personal auto policy for

$20 per day/max $600

a premium discount is the term that describes when an insured owes a total standard premium than

$5000

what is the max amnt a person guilty of an unfair method of competition or an unfair or deceptive act or a prohibited practive may be fined in any 12 month period

100,000

how long is the producer licensing period in this state

2 years

the insured with a claims-made cgl policy may request in writing claim and occurrence information from the insurer at any time up to 60 days after the policy period ends. the insurer must provide the info within how many days

45

the insured with a claims-made commercial general liability policy may request in writing claim and occurrence information from the insurer at any time up to 60 days after the policy period ends. the insurer must provide the info with how many days

45

the employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to how many days

90

what is the deductible of a personal liability umbrella policy called

SIR

who is not an insured for liability on a bap

The owner of a car the insured borrows

what is the business auto coverage territory for?

United States and its territories, Canada, or worldwide for private passenger hired autos

which of the following is the closest term to an authorized insurer? -certified -licensed -legal -admitted

admitted

which of the following would not qualify as a hired auto -an auto leased from a commercial co -an auto rented for personal use -an auto borrowed from an employee -an auto hired by an employer

an auto borrowed from an employee

under a personal auto policy, in which of the following locations would a vehicle primarily garaged in CA be covered? -anywhere in the world -mexico -only in CA -any other state

any other state

if the insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be

authorized

an insurer that holds a cerficate of authority in the state in which it transacts business is considered

authorized insurer

if an insured has an umbrella liability policy in addition to his personal auto policy, which would be considered the underlying policy

auto policy

in insurance, producers are permitted to share or split commissions if

both are properly licensed for the line of insurance

to legally transact insurance in this state, an insurer must obtain which of the following

certificate of authority

which of the following is not a punishment for violating the director's cease and desist order -suspension or revocation of license -monetary fine -imprisonment -community serviec

community service

when a producer was review a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. the producer could be found guilty of: -discrimination -nothing, unless the remarks were in writing -defamation -misrepresentation

defamation

employment practices liability insurance would not cover claims arising from -wrongful termination -discrimination -deliberate law violation - sexual harassment

deliberate law violation

fwhen twin brothers applied for life insurance from comapny a, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Bc of this, the company charged him a hgiher rate for his insurance. This practice is considered

discrimination

all of the following could be considered rebates if offered to an insured in the sale of insurance except -an offer to share in commission generated by the sale -dividends from a mutual insurer -an offer of employment -stocks, securities, or bonds

dividends from a mutual insurer

professional liability coverage protect the insured against legal liability resulting from

errors and omissions

a person who recieves or collects money to be forwarded to the principal is said to have what kind of responsibility

fiduciary

all of the following are among the director's broad powers except -regulate the internal affairs of the department -withdraw or amend any rule or regulatin -issue certificates of authority or suspend licenses -have interest in insurance companies regulated by the department

have inerest in insurance companies regulated by the department

in liability ins policies, supplementary payments are made

in addition to the limit of liability

cgl coverage b will cover

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

a producer has submitted a new application to his insurer, however, 30 days later there was no coverage available for the applicant. what must the producer do?

inform the applicant in writing

which of the following is not true regarding a personal umbrella liability policy -it provides errors and ommisions coverage for an agency -it may cover certain exposures not provided unter the primary layer -it may require the payment of self-injured retention -it provides excess liability coverage over underlying personal liability

it provides errors and omissions coverage for an agency

which of the following would be covered under the crime coverage inside the premises- theft of money and securities -dishonest acts of employees, directors, trustees, or representatives -accounting or arithmetic errors or omissions -loss or damage to a locked safe, vault, or cash register -loss resulting from the surrendering of property in any exchange or purchase

loss or damage to a locked safe, vault, or cash register

the primary purpose of a surety bond is to

make sure obligations are fulfilled

the type of professional liability coverage a medical doctor needs is

malpractice coverage

most insurance policies exclude losses by

mysteroius disapperance

erroneous publishing copied all the material from angels inc's book. the only changes made by erroneous were to rename the title and chapters, put a different cover on it, and distribute it as its own. angels inc files a claim against erroneous and seeks damages. will a commercial general liability policy cover the claim?

no because the claim results from copyright infringement and is not an advertisement

to perform work on a customer's car, a mechanic in an auto shop had to put the vehicle on a service hoist. the hoist collapsed, damaging the vehicle and injuring the mechanic. in regard to the garage coverage form, which of the following statements is true - no coverage is applicable -coverage is provided for only the car on the hoist only -coverage is provided for all perils -coverage is provided for the bodily injuries to the mechanic

no coverage is applicable

workers comp benefits are provided for an employee injury or death that arises out of the course of normal employment in all of the following situation except -an employee working as an over the road truck driver suffers injury whil loading freight at a vendor's dock -on his evening stroll, an employee of an advertising co is injured while watching a competitor's billboard sign being removed from an advertising site -an employee who delivers overnight packages is injured while voluntarily running the package race at the mandatory company picnic - an employee suffers an injury while working at a jobsite

on his evening stroll, an employee of an advertising co is injured while watching a competitor's billboard sign being removed from an advertising site

rental reimbursement is only available if the policy includes which coverage

other than collision coverage

worker's comp will pay under which of the following situations - only when an employee is at fault - paid without consideration of fault or negligence on the part of either employee or employer -only when the employer is engaging in a negligent act - only when the employee is engaging in a negligent act

paid without consideration of fault or negligence on the part of either employee or employer

a bond is written for a set limit, and the surety will be liable only for this amount of the limit. the limit is known as the

penalty

a customer was injured in a supermarket parking lot when a grocery cart collided with the customer's leg. coverage for this claim would be provided under

premises and operations

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

principal

who are the parties to a bond

principal - obligee- surety

which of the following liability policies is usually written on a "claims-made" form? - personal liability -umbrella liability -professional liability insurance - auto liability

professinoal liability insurance

what must an insurance co that is organized in, and has its home office in missouri, do in order to legally transact insurance in the state?

recieve a certificate of authority from the director

paul is a producer in kansas and wants to become a producer in missouri. the department will waive certian examination requirements, provided that kansas would waive the same requirements if a mo procudcer osught licensure in kansas. what term is described by this phenomenon

reciprocity

all of the following are factors in rating workers comp insurance except - payroll -loss experience -job classification -sales

sales

in the event of a claim under a commercial general liability policy, the insured has all of the following duties except -assisting the insurer upon request in enforecement of any right against any person or organization that may be liable to the insured -submitting to medical exam when requested - providing prompt written notice of any claim or suit actually filed against the insured -furnishing the insurer with copies of any demands, notices, or other legal papers recieved in connection with a claim or suit

submitting to a medical exam when requested

how are surety bonds different from insurance

surety bonds guarantee specific duties or obligations will be fulfilled; insurance pays for losses

an insurance agency could purchase an errors and omission ins policy which would provide protection in the event of any of the following except -the agency loses commission income from policies that were not issued by the insurer -the agency negligently fails to offer an increased limit of coverage or benefit under a policy -the agency is sued by an insured for giving incorrect advice - the agency negligently fails to renew a policy causing a client to suffer a financial loss

the agency loses commission income from policies that were not issued by the insurer

an insurance agency could purchase an errors and omission insurance policy which would provide protection in the event of any of the following events except -the agency negligently fails to renew a policy causing a client to suffer a financial loss -the agency loses commission income from policies that were not issued by the insurer -the agency negligently fails to offer an increased limit of coverage or benefit under a policy -the agency is sued by an insured for giving incorrect advice

the agency loses commission income from policies that were not issued by the insurer

surety bonds are written for a definite limit called

the bond penalty

which of the following statements is true regarding the commercial general liability policy's coverage c-medical payments? -the coverage is liability insurance bc it pays only if the insured is legally liable - the coverage provides high limits of insurance for bodily injury losses -the coverage is considered good will bc payments are made without regard to fault - the coverage applies to bodily injury to the named insured

the coverage is considered good will because payments are made without regard to fault

the occurrence form trigger is based on which of the following -the number of claims made during the policy period -the date when injury or damage occurs -the place where the injury or damage occurs -the amount of the insured's deductible

the date when injury or damage occurs

the chief officer of the department of insurance is the director. all of the following statements concerning the director are true excpet -the director is appointed by the govener -the director may serve as an officer or director for an unauthorized insurer - the director must be experienced in matters of insurance - the director must be a citizen of MO

the director may serve as an officer or direcotr for an unauthorized insurer

a passengar in a friend's car is injured while getting into the car. which of the following statements would apply if both the passengar and the driver had mechanical payments coverage under a personal auto policy? -the driver's policy would be primary -the driver's policy will act in excess of the passenger's policy -the passenger's policy would be primary - both policies will share equally in the losso

the dirver's policy would be primary

according to the standard workers comp and employer liability policy form, a state should be listed in part three- other states' insurance of the workers comp and employers liability policy when

the insured expects to extend operations to that state

all of the following are true regarding physical damage coverage except -losses to nonowned autos will be covered the same as the broadest coverage available for any covered auto, except nonowned trailers are limited to $1500 -The policy will pay up to $20 per day to a max of $600 for rental transportation -the insurer will pay for direct and accidental loss to a covered auto minus any applicable deductible -The limit of liability is the greater of the acv of the vehicle at the time of loss or the amnt necessary to repair or replace the vehicle

the limit of liability is the greater of the acv of the vehicle at the time of loss ro the amount necessary to repair or replace the vehcile

in personal auto policies, the term "you" refers to

the named insured

what is the primary objective of workers comp

the payment of benefits to employees for injuries arising out of their employement

MO law requires that the records of insurance transactions kept by producers must be orderly. what does that mean

the records must be retrievable within 5 days upon request

when a vehicle travels from one state to another, what happens to the limits of policy liability in a personal auto policy

they don't change

all of the following are true statements regarding the supplementary payments of a commercial general liability policy except -they pay pre-judgement and post-judgment interest -they pay all reasonable costs incurred by the insured in helping to investigate or defend a claim -they pay defense costs even after the aggregate limit has been reached -they pay all expenses incurred by the insurer

they pay defense costs even after the aggregate limit has been reached

the at-fault driver in an insured's auto crash had the state required minimums for auto liability coverage, but not enough to pay for all the damage done to the insured. this driver is

underinsured

all of the following are supplemental payments included in the liability section of a personal auto policy except -up to $200 a day for loss of earnings due to attendance at hearings or trials -premiums on appeal bonds in any suit the insurer defends - up to $250 for bail bonds required because of a covered accident -up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident

up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident