2-20 book questions

Joe has a Personal Auto Policy with one car with Liability of 10/20/10, basic PIP, 10/20 UM and no Med Pay. His Florida neighbor has an identical policy on her car. Joe is driving her car, loses control, and hits a tree. Joe is hurt wit $15,000 in medical bills. What is the maximum Joe can collect from UM from all sources from this accident?

$0

Joe has a DP-1 policy with $50,000 Coverage A and $2,000 Coverage C. A fire damages the building, and a storage shed. The replacement cost of the dwelling damage is $22,000, with an ACV loss of $15,000. The storage shed out back has $2,000 replacement cost damage (ACV of $1,000) with a $500 deductible, what will policy pay?

$15,000

Joe has a Personal Auto Policy with two cars and UM limits of 25/50 stacked. He also has basic PIP and $1,000 Med Pay. He is involved in an accident where a hit and run driver runs into his car. He has $42,000 in medical bills. How much would his UM pay?

$31,000

Ralph has a PAP with Liability of 10/20/10 and basic PIP with a $1,000 deductible. He is running one day and is struck by a pedestrian by a car. A week later he dies. Medical bills are $3,000 and lost wages are $1,000. How much will PIP pay in this claim?

$7,200

Joe has a standard DP-3 on his Florida home with the following coverages: A- $80,000; C- $20,000. Which of the following would be covered, ignoring a deductible:

A $3,000 TV set burns in a fire.

General Crime exclusions include all of the following:

Acts committed by name insure or partner Indirect losses such as loss of future income Any legal expenses

For a DP-2 policy, which is correct:

Building and contents are named peril

For a Business owners Policy, which is correct:

Building and contents offer replacement cost coverage

Bond underwriting normally looks for the 3 C's that include

Capability Capital Character

Which is try of a CGL Claims-Made form:

Claims must occur after the retroactive date, and during the policy period in order for coverage to apply.

Sue has a Farm Property coverage policy and wants to cover two silos and a barn. She would find that coverage under what section on her policy?

Coverage G

Under Coverage "C" (Medical Payments) in the CGL which is true:

Coverage applies on a per person basis

Personal Liability can inlude:

Coverage at the residence Coverage away from the residence Medical payments coverage

Which of the following is covered under "extended coverage" in a DP-1 policy?

Damage by aircraft

Inside the Premises- Theft of Money and Securities coverage provides coverage for which of the following:

Damage to Locked Containers

Which is true of the Lawyer's Professional Liability form:

Defense costs are included in the limits of liability

All are penalties for noncompliance with Worker's Compensation:

Employee may claim statutory benefits or sue employer Employers business may be closed until compliance is made Employer may be prohibited from hiring new employees

Joe worked for Tastee Burger, Inc. As part of his compensation package, he is supplied with a company car that he gets to take home each night. Joe wants to make sure that the Liability coverage under his own personal Auto Policy covers him while driving the company car. What should he ask his agent to add to his own policy?

Extended Nonowned Liability coverage

Inside the Premises- Theft of Money and Securities includes several exclusions. All of the following are exclusions:

Fire damage Acts of employees Vandalism damage to the premises

Which of the following best describes the underwriting consideration of an Aircraft Hull policy?

Flying hours of the pilot, type, age and size of the plane

On the way to Europe heavy seas place a cargo ship in danger of sinking. The crew decides that if they dispose of the heavy equipment they are hauling they won't sink. They toss overboard 10 tractors owned by John Deere. The cartons of cotton balls owned by Eli Cotton are OK as is the whipped marshmallow cream being shipped for Kraft foods. When they get to Europe, Kraft and Eli Cotton are asked to chip in for the loss that John Deere sustained. This is an example of:

General Average Clause

The type of Inland Marine policy designed to cover equipment and machinery in transit to or being installed in the course of construction or renovation is:

Installation floater

This form covers property sold on an installment basis and can bee written in the buyer or seller's interest. This is?

Installment Sales floater

Which of the following is a supplemental payment benefit under a Personal Auto Policy?

Interest accruing after judgement.

Under the basic HO-6, Coverage A:

Is included for only $5,000

Which statement is true concerning auto Physical Damage coverage in a Personal Auto Policy?

It can cover both an owned auto and a non owned auto.

Which is true of the Broad Causes of Loss form?

Losses are covered on a "named peril" basis

All of the following are included under the general aggregate of CGL:

Medical payments claims Premises claims fire damage claims

"Additional Coverage", under a Commercial Property policy include all of the following except:

Newly acquired locations for up to 60 days

The type health provision that provides the greatest degree of continuation protection without any change in benefits to the insures is:

Non-cancelable

All of the following are coverage extensions found in the Building and Personal Property Coverage form except:

Off premises sign coverage up to $2,500

Which type health insurance policy states that the company may not cancel the policy during the policy term, but may elect not to continue coverage at expiration?

Optionally renewable

Under non construction industry, which is an "employee":

Part time employees who work less that 20 hours a week

The Farm Liability policy provides coverage for:

Personal Injury

Under a Personal Liability policy coverage that cannot be added:

Personal Injury

A selected group of hospitals and medical practitioners in a given area who have joined together in an effort to reduce medical costs is referred to as:

Preferred Provider Organizations

For a dwelling flood policy, which is correct:

Primary residences are covered at replacement cost on building losses.

Section I under a Homeowners Policy deals with:

Property Coverages

Boiler and machinery coverage has on unique feature that most insurance policies do not have. it is:

Reps can immediately suspend coverage with written notice if a dangerous conditions exists at inspection

Contract bonds may include all:

Supply contract bond Subdivision bond Maintenance bond

The three parties to a bond are:

Surety, principle, obligee

Which of the following is/are not a "your covered auto" under a Personal Auto Policy for Liability?

The 1990 Chevy 22 days after you purchase it as an additional vehicle for your son who just got his license.

All of the following are true of Worker's Comp:

The average weekly wage is based on the last 13 weeks employment Permanent total disability is compensated for an unlimited period of time Part-time employees are included as "employees"

Coverage under a Builders Risk policy ceases in all of the following cases except:

The building is completed 60 days after construction begins

All of the following are true of the Supplemental Extended Reporting Period (SERP) under a claims-made CGL policy except:

The coverage is automatic and need not be requested by the insured.

All of the following are try of Worker's Comp:

The employer must contest the claim of an employee within 21 days Part 3 of the Workers Comp policy deals with other states coverage To qualify for Workers Comp JUA (FWCJUA) an employer must have been rejected by two companies

Which of the following would result in the denial of Worker's Compensation benefits?

The injury due to intoxication from alcohol use The injury was caused while impaired by illegal drugs The employee intentionally injured himself

In a Personal Auto Policy, which of the following statements is incorrect?

The maximum amount payable under the Supplementary Payments is $250.

Burglary is defined as:

The taking of property by a person unlawfully entering or leaving the premises

Joe owns a home cleaning service and is cleaning the home of a client one afternoon. Before washing the windows Joe picks up the TV set to move it out of the way. While doing so drops the set to the ground, destroying it. Under his CGL policy, which is true:

There is no coverage due to the care, custody and control exclusion

A policy may contain a provision that states a period of time between issuance and acceptance before sickness benefits begin. This is called:

Waiting period

Under the CGL policy mobile equipment is not covered:

While on a covered automobile

Sally owns two autos. Auto A has $10,000 basic PIP coverage and Auto B has no PIP coverage. While driving Auto B, Sally is involved in a wreck causing extensive damage to her auto and $7,000 in medical bills. How much benefit will Sally receive from her PIP coverage?

$0

Joe has a standard DP-2 on two houses located right next to each other in Orlando. Both houses have $50,000 Coverage A and $10,000 Coverage C. During a lightning storm a bolt of lightning hits both houses at the same time. Damage to the first house is $1,500 and damage to the second house is $2,500. There is no contents damage. With a $250 deductible, what would the policy pay?

$3,500

Joe has a DP-3 policy with $80,000 Coverage A. A tornado blows the house down totally destroying it. A $2,000 storage shed is also destroyed. It takes the insured four months to rebuild the house, and he usually rents it for $500 per month. There is about $2,000 of furniture (ACV) that is also destroyed. Ignoring any deductible, how much will the policy pay?

$84,000

The waiting period for medical bills to be covered in Worker's Compensation is:

0 days

The "maximum period of indemnity" endorsement is an optional endorsement in the Business Income Coverage form and it provides coverage after the period of restoration for what period of time:

120 days

The valuation clause in boiler and machinery provides replacement cost coverage on all covered equipment if made within how many months of damage:

18 months

Florida Law requires how many days notice of cancellation for Health Insurance?

20

The Florida Valued Policy Law applies to:

Mobile Homes

Employee theft coverage may be written which way:

Name schedule, position schedule, blanket coverage

All of the following are true of Worker's Compensation in the construction industry:

Sole proprietors are considered employees Partners are considered employees A general contractor doe not have to provide coverage for independent contractors

Which is not correct for a standard HO-3?

Specified perils are the only covered losses.

Under a Hospital Professional Liability form which is true:

Coverage for liability for injuries to employees is excluded

What coverages are available in the Commercial Auto JUA?

Unlimited Liability limits if such limits are required by statue, UM and PIP.

Custom Auto Repair, Inc. has a Garage Policy with $100,000 Liability (symbol 21) and basic PIP. They also have garage keepers (written as "direct excess") in the amount of $40,000 with $100 Comprehensive deductible and $500 Collision deductible. One night a customer brings a car in for repair work. The customer has a PAP with 10/20/10 and Comprehensive only with a $200 deductible. He does not have collision coverage on his PAP. That night the car is parked outside the repair bays. An unknown driver loses control of his car and hits the customers car, leaving the scene. Damage to the customer's car is $1,500. What, if anything, would be payable by the Garage Policy for this claim?

$1,000

Seaside Burgers, Inc. has a Business Auto Policy with Liability of $100,00 (symbol 2), Comprehensive with a $200 deductible and collision with a $500 deductible (symbol 2). On 2/1/98 they acquire a new 1998 Chevy Camaro 2-door car. They don't tell their agent. On 4/20/98 they go to work and find the car stolen. On 5/1/98 the Camaro is found in a ditch with $2,000 damage. What, if anything would BAP pay for this claim?

$1,800

A Florida insured has a Personal Auto Policy providing PIP coverage with a $1,000 deductible. The inured is injured in his vehicle and sustains $15,000 in medical bills. How much will his policy pay under PIP?

$10,000

Joe has a Personal Auto Policy with Basic PIP and Liability of 10/20/10. His mother lives with him, but she owns no car. Mom is driving his var and is struck by a city bus. She is hurt and has $14,000 in medical bills. How much in total will Joe's Policy pay for his mothers bills?

$10,000

Joe has a standard DP-1 with $50,000 "Coverage A" on a rental house. The house has a lifespan of 50 years and is 25 years old. A fire occurs when the tenant goes to sleep smoking. A contractor estimates that it will cost $4,000 (replacement cost) to repair the building. Ignoring application of any deductible, what will the policy pay?

$2,000

Joe has a Ho-3 with $90,000 of Coverage A. He would have how much Coverage D?

$27,000

Sam has a CGL policy with an occurrence limit of $300,000, a general aggregate limit of $600,000, and a products/completed operations aggregate of $300,000. During the policy period a premises and the jury awards $400,000. Then a products claim takes place and the jury awards $275,000. Under the policy, how much is paid for the products/completed operations claim?

$275,000

Joe has a Personal Articles Floater with a fine arts schedule covering a painting. Coverage is in the amount of $5000. A three year old child comes in the house and ruins the painting by marking it up with a black marker. The painting is now worthless. The company has located the exact same painting for $2000. What will the policy pay?

$5000

Joe has Personal Articles Floater covering a musical keyboard he uses for personal use only. While away on vacation in Europe the keyboard is stolen. He had it scheduled for $1,000. To purchase a new keyboard the cost would be $1250. The company could get the same item at a used musical store for $750. What would the policy pay?

$750

Joe has a Personal Auto Policy with Liability of 25/50/25. He hits a car with four occupants from Minnesota, all of whom are hurt. They all sue. The first sues for $20,000; the second sues for $35,000; the third sues for $22,000; the fourth sues for $18,000. The car Joe hits has $8,000 in damage. The company spends $20,000 on a law firm for defense. Ignoring any PIP or Med Pay, what is the total cost to the company for Joe's claim?

$78,000

Sally has a Personal Auto Policy with basic PIP and $1,000 Med Pay coverage. She has no UM coverage. Her neighbor, Beckie, owns a car and has basic PIP and $2,000 Med Pay coverage. Sally is in Beckie's car in Orlando with Beckie driving. Beckie loses control and flips the car. Sally incurs $12,000 of medical bills. How much PIP will Sally collect from all available sources?

$9,600

The discovery period under General Crime provisions is:

12 months

Joe purchased a lot to build a house on. He plans to take about three months to have it built, then rent it out when completed. Which type policy could you write?

A Dwelling Property Policy

After a loss the insured must do all of the following except:

Discontinue premium payments

Joe's New Cars, Inc. has a Business Auto Policy (BAP). The owner, Joe, owns no car himself since he always drives a company car. If you were the agent, what coverage would you add to the BAP to give Joe liability coverage while he drives a car not owned by the corporation?

Drive Other Car Coverage

The type organization that provides comprehensive health service to its members for a prepaid fixed fee and whose goal is preventive activity is:

HMO

Joe owns an aircraft hanger and repair facility. He is worried that a plane may be damaged while he has it for repair. In order to protect himself, what coverage would he want to have?

Hangarkeepers Liability

The type of health insurance policy that pays a flat amount per day of hospital confinement, regardless of other insurance is:

Hospital Indemnity Insurance

Under a standard Personal Liability policy coverage for loss assessment:

Is not included

Which statement is true concerning Liability coverage in a Personal Auto Policy?

It gives coverage only to those with the status of "insured."

Under an HO-3 which situation would not be covered for liability?

Joe owns a bass boat (16 foot, 100 HP outboard motor, speed 80mph) and hits another boat, destroying the other boat. Other owner sues Joe.

Which of the following is not eligible for a Homeowners Policy?

Joe who owns the house he rents to his neighbor

What satisfies the Florida Financial Responsibility Law for all situations other than DUI?

Liability for 10/20/10

Joe has a standard HO-2 with Liability of $100,000 and $1,000 Medical Payments. He has a 14 foot motor boat with a 70 HP outboard motor that he owned at policy inception. He is out in the boat and runs into another boat, hurting the other driver, and totally destroying Joe's boat. The other driver sues Joe for $10,000 and wins. Which statement is true concerning the claim for damage to Joe's boat and also the suit against him?

Neither the suit nor the boat is covered

Rita purchases a used car on 5/1/96 from Daytona Used Cars, Inc. The car is a 1982 Ford with 50,000 miles. She purchases the Mechanical Breakdown (MB) insurance with a $100 deductible. On 9/12/97 the transmission blows as the odometer turns over to 61,000 miles. She had the transmission serviced regularly. She has the car towed ($50) in to Vero Used Cars, Inc. for repair. The repair costs $450. While it is in they do a tuneup for another $100. What, if anything, with the MB policy pay Rita?

Nothing

Coverage under the CGL excludes liquor liability claims:

Only if the insured's business is selling, serving, or furnishing alcohol

Which statement is true concerning Medicare Supplement insurance policies?

Policy coverages and exclusions are standardized and do not vary from company to company

Which of the following is an exclusion found in the CGL policy:

Pollution

Miami Paint and Asphalt is working on the parking lot of a local drug store. This job will take three weeks to complete and one day after finishing for the day the crew leaves a hole in the ground without a proper warning sign. They plan to come back the next day to continue work, but during the night when it is dark a child falls into the unmarked hole. The prints sue Miami paint and asphalt. Under the CGL policy what tip of claim:

Premies/Operations

Joe Smith has been appointed by the court as the trustee for the assets of the estate of his deceased friend and must obtain a bond. The tripe bond he needs is a:

Probate bond

Joe has a 100 foot yacht. He is out one day in heavy fog and doesn't see the other boat until he is on top of them. He slams into the other boat, doing $20,000 in damage to the other boat. Where, under Joes Ocean Marine policy would there be coverage for the other boat?

Running down Clause

Joe has a 1,000 acre farm where he grows corn. To keep in touch with his workers he installs a cellular radio tower. He wants to make sure his farm policy covers the antenna. Where would it be covered on the policy?

Section G

Sam's New Cars, Inc. has a standard Garage Policy with Symbol 21 for liability. All of the following claims would be covered under Sam's policy except:

Susie, a customer, (owns her own car that is fully insured) is test driving a new car. She runs a light ands hurts Heather. Heather files a law suit against Susie.

Which of the following is not a valid Covered Auto Symbol in the Garage Coverage form?

Symbol 28- Garage Service Operation Vehicles Only

The limit on medical payments under Worker's Compensation is:

Unlimited coverage