WV P&C Insurance Exam Study
What is the West Virginia individual agent/producer license fee?
$50
Commercial inland coverages can be written as a stand-alone policy and not included in the commercial package policy, this would be called...
A Monoline Policy
A married couple have applied to a mortgage company for a mortgage loan. The loan officer told them everything was in order and the loan would be processed pending the purchase of insurance to cover the loan from a certain insurance agent. When the borrowers stated they would prefer to purchase the insurance through their own agent, the loan officer indicated they would not be able to borrow as much as they needed. Under West Virginia state law, the mortgage company is violating which unfair trade practices? A coercion B rebating C unfair discrimination D there is no violation.
A coercion
After paying a claim and insurance company may have the right to pursue legal action against the negligent party. This is known as... A subrogation B assignment C other insurance D action against the company
A subrogation
Wholesalers can be covered by the BOP if no more than blank of their total for area is open to the public E. 25% B. 10% C. 15% D. 65%
A. 25%
Under a surety bond, the owner of the project is called the... A. Obligee. B. Surety. C. Principal. D. Administrator.
A. Obligee
The primary cause of insurance agents errors and omissions losses is the failure to, a. Provide the proper coverage. B. Explain coverage limitations. C. Recommend needed coverage. D. Advise of cancellation.
A. Provide the proper coverage.
A couple recently borrowed money to do some major renovations to their home. While they were renovating their home, they decided to make some changes in their estate planning as well. The couple had their attorney draft papers naming two of their three sons, Bill and Drew, owners of the property with the parents retaining a life estate in the property. The third son Rick, understood when he reached legal age he would be named as an owner as well. In May, a tornado destroyed the house. Which of the following does not have any insurable interest in the house? A. The son, Rick B. The mortgage holder. C. The parents. D. The sons Bill and Drew.
A. The son Rick-who is the youngest son who has not reached legal age, cannot be a property owner.
A non-admitted insurance company that insures property in West Virginia must a. Write coverage through an excess lines broker. B. Pay premium taxes directly to the state of West Virginia C. Become licensed before any claims are filed D. Become a member of the West Virginia insurance guaranty Association.
A. Write coverage through an excess lines broker
Rihanna is applying for a new job at General Hospital. Which law limits how much information Brianna's bank and mortgage lender can share with General Hospital, guarding to Brianna's finances and credit score? A. The Gramm-Leach-Bliley Act B. Fair credit reporting act C. Insurance information and privacy protection protection act D. Health insurance portability and accountability act.
B. Fair credit reporting act
All of the following are excluded under the end earthquake endorsement to a homeowners policy, except A. Flood and title wave. B. Land shockwaves C. Waves and tsunami D. The cost of filling land
B. Land shockwaves.
In order for a claim to be a products claim, which of the following must be satisfied? A. Injury sustained must have occurred on the insurance premises. B. The insured in most cases must have relinquished possession of the product to be the purchaser. C. A single limit of liability must be provided. D. And employee injury must have occurred.
B. The insured in most cases must have relinquished possession of the product to be the purchaser.
Under a business owners policy, the hired and non-owned auto liability endorsement would cover A. The employer he uses his or her auto for personally and B. Vehicles borrowed by the insured C. The employee who uses his or her vehicle and personal business D. The owner of a hired or non-owned vehicle
B. Vehicles borrowed by the insured
The terrorism risk insurance act and all of his extensions and re-authorizations is actually an agreement between A. Between the states and the federal government B. Between the insurance companies and the states C. Between the federal government and the insurance companies D. Between the federal government and foreign governments
C. Between the federal government and the insurance companies
The CGL policy contains coverage for... A. Directors and officers liability. B. Errors and omissions liability. C. Completed operations liability. D. Liquor liability.
C. Completed operations liability.
Any false or malicious communication, written or oral, that injures an insurance companies or insurance professionals reputation, fame or character is known as A. Misrepresentation B. False advertising C. Defamation D. Coercion
C. Defamation
In 2015 West Virginia passed a new modified comparative fault standard which can bar a plaintiff in a lawsuit from recovery, if he or she is found to be more than blank at fault in the bodily injury or property damage. A 40% B 30% C 60% or D 50%?
D 50%
According to the West Virginia insurance code," to exchange a contract of insurance by any means, for money or it's equivalent, on behalf of an insurance company", is the definition of... A. Placing insurance. B. Soliciting insurance. C. Negotiating insurance. D. Selling insurance.
D selling insurance. The West Virginia insurance code defines selling insurance as to exchange a contract of insurance by any means, for money or it's equivalent, on behalf of the insurance company.
All of the following claims would be excluded under the homeowners watercraft endorsement, except: A. A passenger who paid for a cruise in the watercraft suffers bodily injury when the boat hits a freak wave. B. The bodily injury suffered by passengers and another watercraft who were injured when the insured hit their vessel while participating in the hot springs annual speed boat boat race. C. And employee of the insured who was injured while he was performing his regular job duties by cleaning the covered water crafts engine. D.The bodily injury suffered by the insured while he was operating the covered watercraft, loses his balance and hit his head on the floor of the boat.
D. The bodily injury suffered by the insured while he was operating a covered watercraft, loses his balance and hits his head on the floor of the boat. The bodily injury suffered by the insured while he lost his balance would be the only listed scenario that would be covered by the watercraft endorsement.
What is the definition of a surety bond?
Guarantees the performance of a duty.
Which of the following statements is true concerning a commercial package policy?
It can be written for a specific policy term not to exceed three years.
What is the purpose of reinsurance.?
It is insurance for insurance companies, to reduce the risk of catastrophic losses.
Which of the following statements describes the coverage provided under coverage C of the ordinance or law endorsement to a commercial policy policy?
Provides coverage for the increased costs to repair or rebuild to comply with current building, zoning, or land use ordinances or laws.
The insured auto dealer has opted to include part IV - garage physical damage coverage to her policy. Which of the following symbols must be indicated on the declarations page of the policy for physical damage coverage to apply?
Symbol 31
When a West Virginia insurance is covered by uninsured motorist coverage, the insurer is required to pay the insured all sons he is legally entitled to recover up to the required limits of financial responsibility. However, the insurer is permitted to deduct...
The first $300 for property damage resulting from the negligence of an uninsured motorist.
Which of the following statements is true regarding insured who has been injured by a hit-and-run driver in West Virginia A. The injured West Virginia driver must notify the West Virginia automobile insurance plan within 60 days of the accident B. He entered West Virginia driver must notify the policy within 12 hours of the accident C. And request for Junior driver must notify their own insurance company and 60 days of the accident D. The injured West Virginia Driver must notify the insurance commissioner said that medical payments can be covered from the state funds reserved for hit-and-run accident.
The injured West Virginia driver must notify their own insurance company within 60 days of the accident
All of the following would be covered under a builders risk policy, except A. Prospective buyer. B. Contractor C. Owner D. Subcontractor
a prospective buyer
Risk is best defined as... A and uncertainty of loss. B and undesirable insured. C a hazardous exposure. D a cause of loss.
A an uncertainty of loss.
The insured is covered under a standard business owner policy. She has several computers used in the business and the electronica data stored on them becomes corrupt as a result of lightning. The cost to research and restore this data is $20,000. How much will the policy pay for the electronica data? A. $10,000 B. $20,000 C. Nothing D. $2500.
A. $10,000.
The builders risk coverage form includes an additional coverage that provides a limited amount of coverage from lawns, trees, shrubs, or plants that one located outside of the buildings. This woman is A. $1000 for $250 for any one tree, shrubs, or place. B. $5000 but $250 for any one tree, shrubs, or plante. C. $2000 but $500 for any one tree, shrub, or plant. D. $1000 but $500 for any one tree, shrubs, or plant.
A. $1000 like $250 for any one tree, Shrub, or Plant
The liberalization clause of a business owners policy automatically applies favorable expansions of coverage, for which a premium is not charged if the changes are made during the policy period or within ________ prior to the effective date of the policy. A. 45 days B. Six months capital C. Three months D. 30 days
A. 45 days
Which of the following is not a mobile equipment under the business auto policy? A. A self propelled vehicle was permanently attached street cleaning appointment. B. A caterpillar tractor. C. A forklift. D. And electric powered cart used solely for transportation within a large warehouse.
A. A self propelled vehicle with permanently attached street cleaning equipment.
Under the discovery clause and a loss of stained bond, which of the following is covered? A a loss discovered up to one year after the policy expired but that occurred during the policy. Period B. A loss that is discovered after the policy has expired C. A loss that occurred prior to the inception date of the policy D. A loss that occurred during the policy. But was not discovered until five years after the expiration date.
A. I lost discovered up to one year after the policy expired but that occurred during the policy period.
All of the following items are given a special limit of liability under coverage C of the homeowners policies, except: A. Motorized land vehicles. B. Trailers. C. Jewelry. D. Watercraft.
A. Motorized land vehicles
Which of the following coverage symbols would be designated on the declarations of a commercial auto policy to cover a customers auto left with the insured to be serviced? A. Symbol 30 B. Symbol 31 C. Symbol 32 D. Symbol 33
A. Symbol 30
In which of the following situations with trees, shrubs, and other plants be covered by the homeowners additional coverages? A. The insured's fruit trees are destroyed when an Amber from a nearby brushfire Lands' on them in Burnsville. B. The insured straps are destroyed when I won hundred years snowstorm hits the area and the weight of the snow is so heavy it snaps the branches C. The insurance 150-year-old Oaktree is pushed over by Highwinds. D. The insurance for trees are ruined when snow and ice from the storm built up on the trees causing large sections to break off and fall the ground.
A. The insurance fruit trees are destroyed when an ember from a nearby brushfire lands on them and burns them. The perils of wind, hail, and the weight of ice and snow are excluded under the homeowners additional coverage for trees shrubs and other plants. Therefore, the only situation that would be covered is the insurance for trees that are destroyed by a fire.
The doctrine that states an insurance policy should provide the coverage that is a sensible and prudent person would expect is A. The reasonable expectation doctrine. B. The applied principles doctrine C. The ambiguous language doctrine D. The limited liability doctrine
A. The reasonable expectation doctrine.
In West Virginia, when an insurer has received notification of a claim, that insure must acknowledge having receive that notification within A 10 days B. 15 days C. 20 days D. Immediately.
B. 15 days. Taking longer than 15 days to acknowledge receipt of a claim is considered an unfair claims practice.
A blanket employee dishonesty bond will A. Name the individuals B. Does not mean the individual individuals C. Excludes certain individuals D. Exclude certain type of occupations
B. Does not name the individuals
The estimated annual premium for a Worker's Compensation policy will be based on all of the following, except... A the experience modification factor. B a schedule rating. C a premium discount. D the average premium of insurance in the same area out working in the same industry.
D the average premium of insurance in the same area working in the same industry.
Last settlement for personal property that is covered under coverage C of a standard and unendorsed ISO homeowners policy is on an A. Market value basis B. Appraised value basis C. Replacement cost basis D. Actual cash value basis
D. Actual cash value basis
Section I of the business owners policy places limitations on coverage for certain losses if they are not caused by a specific cause of loss. All of the following are specified causes of loss under the policy, except A. Fire lightning. B. Sinkhole collapse C. Water gauge D. Building glass breakage
D. Building glass breakage
Coverage B of an unendorsed standard BOP policy provides how much coverage for theft of money and securities? A. $5000 on the premises only. B. $5000 on the premises but only $2500 off premises. C. $1000 on and off the premises. D. None.
D. None.
Every owner of a vehicle that is subject to registration and West Virginia, must complete an application for registration that includes a statement under penalty of false swearing that liability is in a fact on the vehicle. If the commissioner later determined that liability insurance was not enough fact at the time the application for a vehicle registration was made then... A he or she will revoke both the drivers license of the owner vehicle registration. B he or she will not permit the vehicle to be registered in the state until liability insurance is purchased and proven and a 30 day period has passed since the false application was submitted. C he or she will find the owner of the vehicle $10,000 and the vehicle cannot be registered until the finest paid or D he or she will require the owner of the vehicle to post a bond in the amount of $50,000 before the vehicle can be registered.
A He or she will revoke both the drivers license of the owner and vehicle registration.
Physical damage to a contractors bulldozer is best covered under which of the following?
A commercial inland marine contractors equipment floater
The standardized personal automobile policies contain all of the following, except...
A common conditions page
Be an a ice model unfair claim settlement practices that specifies that the insurance company must provide the proper claim forms for reasonable explanation of how to use them to the claimant within A. 15 calendars days of the request B. 30 calendar days of the request C. 20 working days of D 10 calendar days of the request
A. 15 calendar days of the request
For restaurants to be eligible for coverage by the standard BOP policy, they cannot exceed blank and total floor area E. 7500 ft.² B. 25,000 ft.² C. 15% of the total floor area of the building D. 3000 ft.²
A. 7500 ft.²
Under the personal articles floater, a loss is covered when it occurs A. Anywhere in the world, except for fine arts. B. In the United States only. C. In the United States and Canada only. D. In the United States, Canada, and Mexico only.
A. Anywhere in the world, except for fine arts.
The mountain insurance company recently had a change in its Board of Directors. Five new directors were elected by the policyholders at their meeting. Which of the following statements correctly identifies the mountain insurance company? A. It is a mutual insurance company B. It is a fraternal insurance company C. It is a stock insurance company D. It is an insurance exchange
A. It is a mutual insurance company
The HS reform insurance for direct physical loss to cover property involving collapse of a building caused by all of the following, except A hidden decay B settling C weight of contents D use of defective materials
B. Settling
And insured has purchased ADP - three policy to cover his dwelling that is valued at a replacement cost of $100,000. He insures it for $60,000 and later suffers a $30,000 fire loss. Which of the following amounts will be paid by the policy if no deductible form is attached? A. $30,000 B. $25,000 C. $22,500 D. $15,000
C. $22,500
What is the retained limit of a personal umbrella policy that must be paid on the umbrella policy covers a claim by the underlying policy A. The cost of defending the insured and the lawsuit B. Supplementary payments coverage C. The insured must pay when the person that was excluded by the under online liability policy D. A percentage of policy limits
C. A deductible that the insured must pay when the person on Bralla policy covers it for you that was excluded by the underlying liability policy
What type of bond is required when a person dies without leaving a will? A. Surety bond B. Fidelity bond C. Administrators bond D. A state bond.
C. Administrators bond.
Which of the following garage policy coverages will pay for the physical damage to a garage customers auto regardless of legal liability? A. Section 2 garage liability coverage B. section 4. Garage physical damage coverage C. Garage keepers legal liability coverage D. Garage keepers direct primary coverage.
D. Garage keepers direct primary coverage
John Smith has met just made his last car payment which concludes his contract. The finance company, for reasons not immediately apparent, has the car repossessed. If MR. Smith brings a suit, the court will allow Mr. Smith to read take possession of the car pending the courts final ruling as to ownership if Mr. Smith provide the court a A. Attachment bond B. Indemnity bond C. Performance bond D. Replevin bond
D. Replevin bond
A producer holding nonresident license in another state has been found guilty of violating that states insurance code. What is required of this producer in the state of West Virginia? A. Nothing, because the violation occurred in another state. B. Report the findings to the commissioner prior to license renewal C. Nothing because the NAIC notifies all interstate parties of violations D. Report the findings to the commissioner within 30 days of the final disposition of the matter
D. Report the findings to the commissioner within 30 days of the final disposition of the matter
A licensee in West Virginia who has been found guilty of making excessive charges may be subject to which of the following? A a penalty up to $1000 for each and every violation. B a penalty of up to $10,000 for each and every violation. C a penalty of up to $1000 for all violations. D. A penalty of up to $10,000 for all violations.
A a penalty up to $1000 for each and every violation. The monetary penalty of $1000 for each violation maybe imposed and the insurance commissioner may revoke or suspend that persons license. If the agent knew or should've known they were in violation of the law the penalty increases to $5000 for each violation not to exceed $100,000.
Under the business auto policy, what is the limit for transportation expenses when the insured has suffered a theft loss of a private passenger type vehicle E. $20 per day subject to a maximum payment of $600 B. $15 C. $15 per day subject to a maximum limit of $450 D. $25
A. $20 per day subject to a maximum payment of $600
Which of the following is the principal in a bond A. Contractor doing the work B. Owner of the job C. The insurance company D. The surety
A. Contractor doing the work
All of the following is a function of the standard mortgage clause and a property insurance policy, except... A protects the rights, insurable interest, of the mortgagee, even if an insured intentionally causes a loss to the mortgage property. B guarantees that the mortgage payments will be made by an insurance policy if the insured does not make the payments. C allows the mortgagee to pay the premium if the insured refuses to do so D allows the mortgagee to submit a proof of loss if the insured refuses to do so.
B Guarantees that the mortgage payments will be made by an insurance policy, if the insured does not make the payments.
A new homeowner is being forced into purchasing insurance from a particular insurance company as a condition to receiving a mortgage. The lender is guilty of which of the following unfair trade practices? A unfair discrimination. B twisting. C Coercion. D rebating.
C coercion
Jenny holes and insurance license in West Virginia and has received an inquiry from the insurance commissioner in the mail. Which of the following statements is correct regarding Michaela's response to the commissioner? A. Jenny will respond in writing, making sure I have a sponsor I think 10 working days from the date of. On the inquiry itself. B. Jenny is quite busy and responds within 15 working days by telephone C. Jenny will respond in writing, making sure he'll respond to Mission or within 15 calendar days from the date. D. Jenny will respond in writing, making sure response within 15 working days from the date appearing on the inquiry itself.
D. Jenny will respond in writing, making sure her response reaches the commissioner within 15 working days from the date appearing on the inquiry itself.
All of the following situations involve misrepresentation, except A. Indemnify insurance places an ad in an insurance journal indicating that we were store insurance is an insolvent company. B. Michelle is attempting to sell a homeowners policy tomorrow Shah. When Marissa asks Michelle if the policy provides replacement cost coverage, Michelle says it does, without telling Marissa that she be required to purchase an endorsement for replacement cost coverage to apply. C. Monica a public adjuster, agrees to reduce her damage estimate by 5% and exchange for $500 in cash Per claim from indemnify insurance company. D. Michael manages an insurance agency and post the sales numbers of all agents publicly each month to promote competition.
D. Michael manages an insurance agency and posts the sales numbers of all agents publicly each month, to promote competition. Posting sales numbers to promote competition among sales personnel is not misrepresentation. The other three choices are all examples of misrepresentation.
Harry Smith is a minor under the age of 18 and has been employed in violation of the laws of West Virginia. If he is injured in a job related accident, how will this affect Worker's Compensation coverage? A. He will be covered for Worker's Compensation benefits. B. He will not be covered because he is a minor and employed illegally. C. He will have to bring a lawsuit against his employer and prove legal liability. D. Worker's Compensation coverage will not apply and the ploy will be held personally liable for his work related injuries.
A he will be covered for Worker's Compensation benefits. The West Virginia code states that the right to Worker's Compensation coverage will not be affected because he is a minor and employed in violation of the laws of West Virginia.
And insured is a set of six drawing pads designed and used by Benjamin Franklin. Each pan is worth $1000 alone, but the sun is worth $12,000. One pan is destroyed by a covered pair. Under the pair or set clause the insurance company will pay a maximum of which of the following amounts E. $7000 B. $1000 C. $12,000 D. $2000
A. $7000
A commercial property policy has the protective safeguards endorsement attached indicating that the insured has protective safe guards installed such as a sprinkler system. Shut the system become an operative, how long does the insured have to report this facts and the insurance? A. 48 hours. B. 24 hours. C. 36 hours. D. Two weeks.
A. 48 hours. If repairs cannot be completed within 48 hours, the insurer must be notified in order to comply with the conditions of the form.
Which of the following contractors would be eligible for a business owners policy? A. a Carpenter doing all of his own work building kitchen cabinets and peoples homes and earn $75,000 per year B. A general contractor who subcontracts about 5% of the business annual gross sales C. A roofing contractor with an annual payroll a $400,000 capital D. A contractor who constructs hi Risa apartment buildings up to six stories and height
A. A Carpenter doing all of his own work building kitchen cabinets and peoples homes and are in $75,000 per year
If a producer knew or should have known that his or her actions were in violation of the West Virginia insurance code, the penalty imposed by the commissioner may be 8A. A fine of $5000 and a suspension or revocation of the producers license B. Licenses suspension or revocation and a fine of up to $1000 for each violation not to exceed $10,000 C a fine of $10,000 for each and every violation D. penalty of six months in jail and the county in which the violation occurred
A. A fine of $5000 and a suspension or revocation of the producers license.
Pollo has an expensive boat and is purchasing insurance to cover it. He is discussing the deductible and his agent suggests a deductible amount the polo could pay if the hull of his boat was severely damaged. Which of the following types of deductibles would be best for polo? A a percentage deductible. B a flat deductible. C. A specified deductible. D. A stated deductible.
A. A percentage deductible. A percentage deductible is used with boats that are very expensive. This type of deductible as a percentage of the total amount it would take to repair the hull of the boat if it was severely damaged.
Bill Walters is named in the drive other car endorsement attached to the busy business auto policy of his brother, John Walters, and a premium is shown in the endorsement for liability coverage. Which of the following vehicles would be covered autos under the drive other car endorsement? A. A van being driven by Bill. The van is owned by Kathy Webster. B. A station wagon being driven by Tonya Walters, Bill's wife. She and Bill live together and she owns the station wagon. C. A pick up Being driven by Bill as part of his job in a repair garage. The truck is owned by Ted Arbor, Bill's boss. D. A sedan being driven by Bob Walther's, Bill's son. The car belongs to Bill.
A. A van being driven by Bill. The van is owned by Kathy Webster. Bill is covered while driving the van owned by Kathy Webster. He specifically named on the endorsement. The purpose of this endorsement is to extend the business auto coverage for Bill while he's operating a non-owned auto for personal reasons. The other situations would not be covered. Bella and Tonya should have vehicles they own insured under their own personal auto policy. Ted Armour should have a business auto policy on the vehicle he owns and in this case it is being used for business.
Under the "inside the premises - theft of money & securities" insuring agreement of a crime policy, which of the following situations would not be covered A. Cash that is taken by employees B. Cash in the register is destroyed in a fire C. Travelers checks that have turned up missing D. A casino suffers a fact of slot machine tokens.
A. Cash that is taken by employees
A homeowner moves into her new house built by a contractor. Shortly after moving in, the roof leaks and damage is the contents inside the home. What coverage with a contractor Carey that could respond to cover some of this claim? A. Completed operations coverage B. Operations coverage C. Contractual coverage D. Personal injury coverage.
A. Completed operations coverage
Shawn is covered under a standard, unendorsed personal auto policy. He has an external hard drive connected to the manufacture Dash installed stereo system of the car, with thousands of digital music files stored there. The vehicle was broken into and the hard drive is stolen. However the insurance company handle the claim for the hard drive? A. Deny the claim in for because this loss is excluded by a part D of the policy. B. Pay the claim in for because part of the policy provides (coverage. C. Pay the claim because the drive was being used with A stereo system that was permanently installed by the manufacture. D. Pay the claim up to the part D specified amount limit of $1000.
A. Deny the claim in full because this loss is excluded by party of the policy. These items are specifically excluded under the policy claim, therefore the claim would be denied. There is an endorsement that can be added to the policy for an additional premium to cover these types of items, but the question did not specify that this endorsement was carried in our example.
A warranty and insurance is best described as which of the following A. I guarantee that the statements made by the applicant are completely true and untrue statements can void the coverage B. A statement made the represents the honest recollection is that the applicant C. A material misrepresentation which is an untrue statement D. A statement that does not involve misrepresentation
A. I guarantee that the statements made by the applicant are completely true and I'm sure statements can void the coverage
The condition section of an insurance contract specifies which is the following? I. The property location. II. The insurance companies responsibilities. III. The insurance responsibilities. IV. The policy duration. A. II & III only B. I & II only C. I & IV only D. I, II, III, & IV.
A. II & III ONLY
Isabell is covered under a standard capital oh capital H - six form and must vacate her condominium because an adjacent unit has suffered extensive fire damage. Isabella will need to collect additional living expenses from coverage D. How will this amount be calculated? A. Isabella will receive 50% of the coverage see limit she selected when she purchased the policy B. Isabella will receive 30% of the coverage same limit she selected when she purchased the policy C. The HO-6 specifies a coverage D limit of $5000 D. The HO-6 specifies a coverage D limit of $3000
A. Isabell received 50% of the coverage C limit she selected when she purchased the policy
The per occurrence limit under a commercial general liability policy also contains a sublimit for A. Medical payments. B. The completed operations aggregate limit. C. The general aggregate limit. D. The products aggregate limit.
A. Medical payments. The occurrence limit under AC GL policy is the most the policy will pay for each occurrence. This limit is also subject to specific supplements for personal and advertising injury, medical payments, and damage to property of others.
The principle of indemnity is illustrated by which of the following? A. Restore as an insured to the same condition enjoyed before a loss B. Allows an insured to profit from a loss C. Limits recovery to actual cash value D. Requires an insured to assign any rights of recovery against a third-party
A. Restores and insured to the same condition enjoyed before a loss
Which of the following is not covered under the basic cause of loss form of a commercial property policy? A. Smoke from industrial operations B. Wind storm C. Explosion D. Damage caused by vehicles
A. Smoke from industrial operations
An insured does not carry enough insurance to comply with the coinsurance clause of his homeowners policy. If this insured would have a loss to his covered home, how will the insurer settle the loss? A the insurer will settle the loss at replacement cost value and charge the insured and additional premium overtime to cover the loss settlement. B the insurer well either settle the loss at ACV, or pay the proportion of the cost to repair or replace the part of the building that was damaged, based on the amount of insurance the insured carried. C the insurer will return the premiums paid by the insured so that he can use it to repair his dwelling. D the insurer will refer the insured to his states guarantee fund to have his loss settled as replacement cost.
B the insurer will either settle the loss at ACV, or pay the proportion of the cost to repair or replace the part of the building that was damaged, based on the amount of insurance the insured carried.
The chief deputy of the county auditors steals $2.5 million from the county and gambles it away. What bond if any would The county need to have in place in order to try and recoup this loss? A. Employee dishonesty. B. Blanket public official bond. C. Fiduciary bond. D. Extortion commercial entities.
B. A blanket public official bond.
And insured under and unendorsed homeowners policy can be all of the following, except: A. A 14-year-old niece of HOME the name insured has custody. B. A childhood friend of the named insured who is visiting for a month from England. C. The named insured 22-year-old daughter who is a full-time graduate student. D. The spouse of the name insured who is also a resident of the insured's location.
B. A childhood friend of the named insured who is visiting for a month from England. A childhood friend of a named insured would not be considered an insured under a homeowners policy.
Which of the following would be considered vacant on in an endorsed commercial property policy? A. A building which is 25% vacant. B. A leased building in which less than 31% of the building is occupied C. A retail store located in a shopping mall which closed and has been completely vacant for 45 days. D. A building his utilities were turned off 31 days ago.
B. A leased building and watch less than 31% of the building is occupied.
A business covered by a standard business owners 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? A. Business income. B. Extra expense C. Extended business income D. Business income from dependent properties.
B. Extra expense.
Which of the following is generally not considered to be a legal defense against claims of negligence? A. The relevant statute of limitations for filing a lawsuit has expired B. The loss of the plaintiff was caused intentionally by the defense C. A state law give specific community from the liability to the defend it D. And intervening causes was the proximate cause of the plaintiffs injury rather than the defendants action or in action.
B. The loss of the plaintiff was caused intentionally by the defense.
Trevor purchases a condemned house and I want down neighborhood that is scheduled for demolition by the city. He paid $10,000 for the house and wants to protect his financial investment by purchasing insurance. Which of the following statements is true? A. The property is not insurable because it is not definable. B. The property is not insurable because the loss is expected. C. The property is not Insurable because It does not have a quantifiable value D. The property is not in trouble because the loss would not be substantial.
B. The property is not insurable because the loss is expected
All the following are considered to be unfair or deceptive claims settlement practices according to the West Virginia insurance code, except... A failing to pay agreed amount of the settlement within five working days of the agreement. B failing to provide the necessary claim forms within 15 working days of receiving a claims notice. C explaining a claims denial to a claimant by pointing out the provision, condition, or exclusion that was the basis for the claims denial. Or D failing to adopt and implement standards for the prompt handling of written grievances.
C Explaining a claims denial to a claimant by pointing out the provision, condition, or exclusion that was the basis for the claims denial.
When a loss occurs and coverage is provided by reciprocal exchange, which of the following is responsible to cover the loss? A. The "name". B. They will reinsure. C. The member insurers. D. The attorney in fact.
C the member insurers. The private, unincorporated mutual ensures who are members of the reciprocal are responsible to cover the loss.
The standardized building and personal property coverage form requires the insured to submit a signed, sworn proof of loss statement... A within 30 days of the loss. B within 30 days of the insurance companies request. C within 60 days of the insurance companies request. D within 45 days of the loss.
C within 60 days of the insurance companies request.
The insured carries and unendorsed DP-3 dwelling policy on his home and personal contents. While traveling abroad someone broke into the home and stole $200 in cash, a shotgun valued at $1000, and other household items valued at $2000. Damage caused by the burglars is $1500. Assuming no deductible applies to their coverage how much would be paid? A $3200 B. $4500 C. $1500 D. $2000
C. $1500 because the DP - 3 only provides damage to covered property caused by the burglars. Theft is excluded under the DP - 3 unless endorsed with the theft endorsement.
Which of the following sentence which best describes the term fiduciary A. A person who submit the claim to their insurance company B. A person who has been bonded at as honest and trustworthy C. A person who is entrusted with the assets of another D. A person who holds a Fiduciary license
C. A person who has entrusted with the assets of another
Under a commercial property policy, all of the following types of outdoor property are covered under the additional coverage for collapse if they are damaged directly by the collapsed building, except A. A satellite dish. B. Awnings, gutters and downspouts. C. A septic system for the insured commercial building. D. A fence around the building.
C. A septic system for the insured commercial building.
A guest on vacation deposit cash and travelers checks in the hotel safe deposit box located behind the front desk. When they guessed a tamps to retrieve them, the box is empty. What coverage is required to cover this loss for the hotel? A. Funds transfer fraud B. Save depository C. Guests property D. Kidnap ransom extortion.
C. Guests property.
Under a mobile home owners package policy, how is the mobile home itself covered in case of a total loss? A. On a purchase price basis B. On an actual cash value basis C. On a replacement cost basis D. On a stated amount basis.
C. I don't replacement cost basis
All of the following are types of rehabilitative services under a Worker's Compensation policy except A. Mental B. Physical C. Substance-abuse D Vocational
C. Substance abuse
When determining if an injury or illness is come comp and supple under a Worker's Compensation policy, which of the following is the criteria used? A. What was the proximate legal cause of loss B. But the injury or illness arose out of the course of employment C. But the injury or illness arose out of and in the course of the employment D. The person or people at fault and causing the accident that led to the injury or illness
C. That the injury or illness arose out of and in the course of the employment
Which of the following is the organization that provides standardize Worker's Compensation forms and provides experience ratings for employers A. The federal government B. The state Worker's Compensation laws C. The national Council on compensation D. The national Institute of insurance commissioner.
C. The national Council on compensation
Gavin, the named insured under a personal auto policy, his daughter Tabatha, and two of her friends are riding in the covered auto when Gavin accidentally runs a stop sign, striking another vehicle. Everyone in Gavin's vehicle was injured as well as the driver and two passengers in the other car. How long do Tabatha's friends have to submit their medical expense claims for coverage under part B of Gavin standardized personal auto policy? A. Within six months of the date of the accident. B. Within two years of the date of the accident. C. Within three years of the date of the accident. D. Within 18 months of the date of the accident.
C. Within three years of the date of the accident.
The increased cost of compliance coverage on flood insurance provides: 1. Policy limit coverage for ordinance and Law changes. 2. Coverage for floodplain management ordinance or law changes. 3. $30,000 of coverage per building. The answer choices are: a. Number three only B. Number two only C. 1, 2 and three. D. Two and three only.
D. Two and three only. The increased cost of compliance coverage will provide up to $30,000 of coverage to handle the floodplain management ordinance or law changes affecting the repair and reconstruction of a flood damaged structure.
