WV Property and Casualty Licensing Exam

the insured is covered under a businessowners policy. he has several computers and the electronic data is corrupted as a result of lightning. the loss is $20,000. how much will the policy pay for the damaged data?: $20,000 $10,00 nothing $2,500

$10,000

rachel's home is worth $525,000. she has the home covered under a $500,00 homeowners policy with a 1.5% deductible. when rachel's husband sets their kitchen on fire while frying a turkey, he accidentally causes $36,000 in damages. how much can rachel and her husband expect to receive in their settlement?: $28,500 $28,125 $35,460 $35,125

$28,500

minimum automobile liability limits that must be carried in WV are: 20/40/10 20/20/10 25/50/25 40/20/10

25/50/25

how are losses settled under a typical inland marine policy?: actual cash value replacement cost functional replacement cost cost to repair only basis

actual cash value

under the terrorism risk insurance program reauthorization act of 2015, which of the following would be considered a certified act of terrorism that would be covered?: an act committed by a citizen of the US against a foreign embassy. an act that causes damage within the US and is certified as such by the US Senate. an act which results in damage with in the US, or outside the US in the case of US air carriers, vessels and/or missions that is not committed as an act of a declared war. any act that causes bodily injury or property damage within the boundaries of the US and is certified as such by the president of the US.

an act which results in damage within the US, or outside the US in the case of US air carriers, vessels and/or missions that is not committed as an act of declared war.

an "admitted insurer" in WV is: any insurer licensed to conduct business within the borders of the US, it's territories ad possessions. any insurer formed under the laws of WV. any insurer licensed to conduct business within the state. any incorporated insurer with capital owned by the state of WV.

any insurer licensed to conduct business within the state.

the form known as "commercial crime forgery or alteration" is: commercial crime coverage form B. commercial crime coverage form A. commercial crime coverage form F. commercial crime coverage form P.

commercial crime coverage form B.

which of the following statements best defines "manager" under a commercial crime insurance policy?: employee with no supervisory duties. employee with supervisory duties. director of the limited liability company. someone with custody of property inside premises of the insured.

director of the limited liability company.

which of the following may be included in the commercial package policy?: i. commercial auto ii. commercial auto iii. equipment breakdown coverage iv. aviation

i, ii, and iii

due to inflation guard percentage, the building coverage under a businessowners policy will: decrease by 2% each year as the building depreciates. increase by 8% per year, unless another amount is shown in the declarations. decreased by 8% per year as the building depreciates. increased by 4% per year, unless another amount is shown in the declarations.

increase by 8% per year, unless another amount is shown in the declarations.

the difference between independent agents and captive agents:

independent agents can represent more than one insurer, whereas captive agents represent only one insurer

medical payments coverage under the farmowners policy covers which of the following?: injuries sustained by an invitee. injuries sustained by a farm employee. injuries sustained by the insured. injuries sustained by a tenant living in the insured's dwelling.

injuries sustained by an invitee.

which of the following is not true uninsured coverage in WV?: may be rejected by the insured. may not be rejected by the insured. higher limits must be offered by the insurer. the uninsured property damage has a $300 deductible.

may be rejected by the insured.

the base deductible of 5% under the earthquake endorsement can be converted to a specific dollar amount by: multiplying the greater of coverage a or c, by the deductible percentage scheduled on the policy. scheduling a dollar amount on the endorsement form. multiplying the limit of liability for coverage a but the deductible percentage. multiplying the limit of liability for coverage c but the deductible percentage.

multiplying the greater of coverage a or c, by the deductible percentage scheduled on the policy.

which of the following professional liability policies would cover a dishonest, fraudulent or criminal act of the manager of a llc?: fiduciary liability malpractice liability errors and omissions none of the policies cover these acts

none of the policies cover these acts

under a surety bond, the owner of the project is called the: obligee surety principal administrator

obligee

where is covered property listed and described on the BOP?: in the coverage form. under the conditions. on the dec page. under the extensions of coverage.

on the dec page.

the three parties to a contract bond are: principal, obligee, surety. obligator, principal, surety. principal, obligee, employee. employee, obligor, principal.

principal, obligee, surety.

coverage E under the farm forms covers which of the following?: unscheduled personal property scheduled personal property scheduled real property coverage blanket real property coverage

scheduled personal property

the contract between an insurance agent/producer and an insurance company is known as: the agency contract the appointment contract the principal agency contract the selection contract

the appointment contract

the retroactive date can be used in the claims-made version of the CGL policy is: the earliest date an injury can occur for coverage to apply. the latest a date can be made for a coverage to apply. the earliest date a claim can be excluded. the latest date an injury can occur for coverage to apply.

the earliest date an injury can occur for coverage to apply.

Pete is covered under a personal auto policy with indemnify insurance when his car is stolen. Six months pass, Pete's car is never found and the policy period with indemnify expires. he decides to purchase another personal auto policy with fiduciary insurance, inc. He is covered under the policy with fiduciary for about three months, When his stolen auto Mobile is found with only minor physical damage. How will this claim be handled?:

the indemnify insurance will pay the claim

when insurance coverage is written on a reporting basis: the annual premium is paid at policy inception. periodic premium adjustments are made as losses occur. the insured must submit periodic reports to the insurer. a flat premium charge is determined at the inception of the policy.

the insured must submit periodic reports to the insurer.

all of the following statements are true when an insurance company cancels a standard commercial package policy, EXCEPT: the insurer is not permitted to cancel a cpp midterm. any uep is returned to the insured on a prorata basis. a 30 day notice to the insured is required for any reason approved in the policy for cancellation. the cancellation notice to the insured must be in writing.

the insurer is not permitted to cancel a cpp midterm.

which of the following claims would not be covered under section 2 - liability of a homeowners policy?: the named insured files a claim for damage to his house caused by his dog. the insured's neighbor files a claim for damage to his house caused by the named insured's dog. an insured accidentally runs over his neighbors foot with a golf cart at the local country club. an insured's dog attacks and damages his neighbors golf cart.

the named insured files a claim for damage to his house caused by his dog.

under a liability policy, "supplementary payments" include all of the following, EXCEPT: pre- and post judgment interests. the negotiated settlement. the insured's travel expenses when incurred at the insurer's request in defense of a claim. appeal and bail bonds.

the negotiated settlement.

under the commercial general liability "occurrence" form, to be considered a covered products liability claim: the claim must be made, and the product must have been sold, during the policy period. the occurrence must have transpired within the policy period, regardless of when the product was sold. the claim must be made, and the product must have been manufactured, during the policy period. the occurrence must have transpired prior to the policy period, regardless of when the product was manufactured.

the occurrence must have transpired within the policy period, regardless of when the product was sold.

some items covered under the ISO standardized businessowners policy have a theft limit. which of the following items does not have a specific theft limitation?: furs and fur garments. jewelry, watches, watch movements, pearls, jewels, precious and semi-precious stones, bullion, gold, silver, platinum and other precious alloys or metals. tobacco products. patterns, dies, molds.

tobacco products.

in WV, the board of insurance education sets the requirements for prelicensing and continue education. this board is comprised of the insurance commissioner and six members who are represented by:

two p & c agents, one health agent, one representative from a domestic company, and one representative from a foreign company