Additional Study Terms

The Building and Personal Property coverage form provides coverage for all of the following types of property, EXCEPT: Answer Choices: Select the Correct Answer Growing crops and lawns. Tenants improvements and betterments. Yard fixtures. Business personal property.

Growing crops and lawns. . EXPLANATION: The Building and Personal Property coverage Form specifically lists growing crops and lawns as "property not covered".

How is property covered under an unendorsed BOP form? Answer Choices: Select the Correct Answer Coverage is written on a named peril basis Coverage is written on a broad peril form Coverage is written on an open peril basis Coverage is written on a basic peril bases

Coverage is written on an open peril basis. EXPLANATION: The forms were revised to provide open peril coverage on buildings and contents. Coverage can be amended to named peril basic coverage by endorsement.

The penalty for violating a cease and desist order in New Hampshire is: Answer Choices: Select the Correct Answer $2,500. $500. $1,500. $2,000.

$2,500.

To satisfy the financial responsibility law in New Hampshire the owner of a vehicle must carry limits of: Answer Choices: Select the Correct Answer $25/50/25. $20/40/15. $50/100/25. $20/40/10.

$25/50/25 BI/Aggregate/PD

In the case of a covered loss under a fire policy the company must begin the adjustment of the loss within _____days after receipt of notice of loss. 15 20 30 60

15

What are the parts of PAP

A - Liability B - Med Pay C- Uninsured/under insured D - Phys Damage

Under the Farm insurance forms, the maximum amount payable for a loss to a satellite dish is: Answer Choices: Select the Correct Answer $250. Actual cash value. $500. $750.

Actual cash value.. EXPLANATION: The 2016 form eliminated the special limit for a satellite dish, radio, and TV antennas. If these items are detached from the structure, they are covered up to the Coverage B limit.

Part F of the standard Personal Automobile policy states that the policy can be terminated within the first 60 days for any reason other than non-payment of premium if: Answer Choices: Select the Correct Answer At least 20-days' notice is provided to the insured. At least 30-days' notice is provided to the insured. At least 10-days' notice is provided to the insured. Another type of policy option is provided by the insurer.

At least 20-days' notice is provided to the insured.

According to the nationwide marine definition as adopted in this state, which of the following structures may be written under an inland marine insurance form? Answer Choices: Select the Correct Answer Bridges and Piers Occupied Dwellings Oceangoing Hulls Warehouses

Bridges and Piers is correct. EXPLANATION: Usually we think of inland marine as applying to non-stationary items. Bridges and piers and several others are exceptions to the rule.

Match the type of policy with the coverage provided DP-1 DP-2 DP-3 Open peril Named peril

DP-1 - Open peril DP 2 & 3 - named peril

When a motor vehicle is a total loss, what method is used to determine its value? ACV repair value fair value of the vehicle in the local area

Fair value of the vehicle in the local area.

What is the purpose of a window muntin? Answer Choices: Select the Correct Answer Supports the window frame. Holds the window to the house framing. Individual strips of wood that hold panes of glass inside the larger frame of the window. Never used to hold smaller pieces of window panes.

Individual strips of wood that hold panes of glass inside the larger frame of the window.. EXPLANATION: A muntin is a strip of material, often wood, plastic, or aluminum that holds panes of glass inside the larger frame of the window. When window panes needed to be made of smaller pieces of glass, they were a necessary feature for holding the window together. Today, muntins are more of a decorative feature for traditionally-styled homes rather than a necessary feature.

Under a Commercial Auto policy with respect to physical damage to a covered vehicle, which of the following is true regarding diminution of value? is is covered is it excluded

It is specifically excluded.. EXPLANATION: A decrease in the value because of an accident is not a covered loss in most states. The policy excludes this decrease in value when a covered vehicle has been damaged and causes a decrease in value even though it has been repaired.

Selena is a claims representative. She has reviewed and set the reserves for a claim. She asks her friend and fellow claims representative, Orville, to independently evaluate and set the reserve on the same claim file. Selena is using which of the following methods to set her claim reserves? Answer Choices: Select the Correct Answer Expert system method. Average value method. Roundtable method. Individual case method.

Roundtable method.. EXPLANATION: In this example, Selena is using the roundtable method which uses the consensus of two or more claim representatives who have independently evaluated the claim file.

Coverage B of the Ordinance or Law Endorsement to a Commercial Property policy covers: Answer Choices: Select the Correct Answer The cost to demolish and remove the undamaged portion of the building, if that destruction must occur because of an ordinance or law requirement. The actual cost of the undamaged portion of the building that must be destroyed due to an ordinance or law. The cost of the direct physical loss to property by a covered cause of loss. The increased costs to repair or rebuild to comply with current building, zoning, or land use ordinances or laws.

The cost to demolish and remove the undamaged portion of the building, if that destruction must occur because of an ordinance or law requirement.. EXPLANATION: Coverage B covers the cost to demolish and remove the undamaged portion of the building, if that destruction must occur because of an ordinance or law requirement. Do not confuse this with Coverage A of the endorsement, that reimburses the insured for the value of the undamaged portion of the building itself.

An insured is covered under an HO-3 form. If the insured hits his own house and also damages the garage and the attached fence with his vehicle, which of the damages would be covered? Answer Choices: Select the Correct Answer The damage to the house and garage only. The damage to the fence only. None of the damages would be covered because the insured's vehicle caused the damage. The damage to the house, garage and the fence would all be covered

The damage to the house, garage and the fence would all be covered..

f the "other insurance" clause in a policy specifies that more than one policy will share equally in the loss until the lowest policy limit is exhausted and continue in that fashion until all policy limits are exhausted. This is known as: Answer Choices: Select the Correct Answer Pro-rata liability. Primary and excess liability. Contribution by equal shares. Other insurance clause.

Contribution by equal shares.. EXPLANATION: If more than one policy is involved in a liability situation, "contribution by equal shares" will require each policy to share in the loss up to the lowest limit of insurance which at that point, that lowest limit policy is exhausted and excused. The remaining companies continue to share the loss equally until each policy is exhausted.

Under Part A of a Personal Automobile policy, "supplementary payments" refer to which of the following? Answer Choices: Select the Correct Answer Payment of defense and other expenses by the insurance company beyond the limits of liability. Payments made by the insured for damages exceeding his policy limits. Payments received by the insured directly from the person or persons who caused a loss. Payments made by the insurance company for the insured's own medical expenses, to supplement any other medical insurance.

Payment of defense and other expenses by the insurance company beyond the limits of liability. . EXPLANATION: Any expense the insurance company incurs in the processing of a claim is outside the limits of coverage. The insured is not penalized by a reduction in the limits of liability by these expenses incurred by the insurer.

Blake is covered by a Homeowners policy with a $50,000 Coverage C limit. Disregarding any deductibles, what is the most Blake can collect if his $1,500 boat is stolen from the insured premises? Answer Choices: Select the Correct Answer $1,000 $1,500 $1,400 $2,000

$1,500. EXPLANATION: The insured can collect up to $1,500 because of the "special limits of liability" for Coverage C that apply to watercraft.

If the Agreed Value option of the Business Income form is selected by the insured, the coinsurance requirement is: Answer Choices: Select the Correct Answer Waived. Still applies. Converted to a reporting form. Never reinstated.

Waived

Which inland marine form covers single shipments of property? Answer Choices: Select the Correct Answer Trip Transit Policy Motor Cargo Policy Annual Transit Policy Bailee Form

Trip Transit Policy. EXPLANATION: A trip transit policy is used to cover the interests of the shipper for a single trip.

Under "pollution cleanup and removal" coverage under the standard ISO BOP form, when must a loss be reported? Answer Choices: Select the Correct Answer Within 180 days Within 60 days Immediately Within 90 days

Within 180 days. EXPLANATION: The expenses will be paid only if they are reported to the insurer within 180 days of the date of the direct loss or by the end of the policy period, whichever is earlier.