Casualty Guarantee Exam

A

Employers liability coverage under a workers compensation policy includes A. Damages claimed by third parties B. Injury occurring outside the United States C. Punitive damages awarded because a worker was employed in violation of law. D. Injury caused intentionally by the insured

10 days The Association may cancel policies by mailing 10 days' written notice to the last known address of the insured

How much notice must the Property and Casualty Guaranty Association give before cancelling insurance policies

C

In contrasting stock insurers with mutual insurers, which statement is true? A. Nonparticipating policies can pay out dividends to the policyholders B. Mutual insurers are owned by the shareholders and issue participating policies C. Stock insurer are owned by the shareholders and issue nonparticipating policies D. Stock dividends are tax free while policy dividends are taxable

D

What group provides auto insurance for people who qualify, but are unable to obtain insurance through regular methods? A. Insurance Guaranty Association B. Auto insurance Placement Act C. Michigan Auto Insurance High-Risk pool D. Michigan Automobile Insurance Placement Facility

Insuring agreement

What part of the insurance contract describe the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured

To establish financial responsibility requirements for interstate motor carriers

What was the purpose of the Motor Carrier Act of 1980?

Supply bond

Which of the type of bond guarantee that a supplier will furnish supplies, materials, products, and equipment as specified in the written contract?

D

A homeowner has misplaced some of her insured personal property and has no idea what may have happened to it. Which HO policy form would cover such a loss? A. HO-2 B. HO-3 C. HO-4 D. HO-5

A

In a BOP, which of the following would be covered? A. Medical expenses B. Liquor liability C. Pollution D. Mobile equipment

1 year

The businessowners liability coverage form will cover medical expenses incurred and reported within what maximum time period after the accident?

D The businessowners liability coverage form specifically excludes claims arising from pollution

Businessowners liability coverage automatically includes all of the following liability coverages EXCEPT: A. Contractual B. Host liquor C. Product D. Pollution

Adhesion

Which insurance principals states that ambiguities in a policy will always be construed in favor of the insured?

A Coverage E is a personal liability for. The following are the exclusions that apply to it: damage to property owned by or in the care of the insured; contractual liability; bodily injury to any person eligible for workers comp; and bodily injury to the named insured, relative, or minor residing in the household

Which of the following exclusions would specifically fall under Coverage E? A. Contractual liability B. Bodily injury to a residence employee C. Falling objects D. Land

C Section II of the homeowners policy provides medical payments to others but excludes coverage for the payment of medical expenses of an insured

Which of the following exposures is NOT covered under a homeowners policy? A. Bodily injury to others B. Personal liability C. Medical payments to an insured D. Unscheduled personal property damage

C Contractual liability, other than insured contracts, is not covered under the garage liability coverage

Which of the following exposures is not covered under the garage liability coverage form? A. Products and completed operations liability B. Auto liability C. Contractual liability D. Premises and operation liability

A

Which of the following is NOT one of the independent rating services that publishes guides to insurance companies' financial integrity A. NAIC B. Fitch C. AM Best D. Moody's

Without receiving written consent from an insurance regulatory official

Federal law makes it illegal for any individual convicted of a crime involving dishonesty, breach of trust or a violation of the Violent Crime Control and Law Enforcement Act of 1994 to work in the business of insurance affecting interstate commerce

By the licensee's month and date of birth

How is a licensee's date of Continuing Education credit review determined?

Claims-made

How is a professional liability policy written?

Expected or intentional injury exclusion Losses caused intentionally by the insured are excluded. In this example, Sarah had no reason to take such extreme measure to restrain the child until the police arrived

Sarah owns a local toy shop. One day she notices a child taking a toy and trying to leave without paying. Sarah runs out after the child, pushes him down and sits down on him until the police arrive. The child suffers multiple fracture of the ribs, as well as psychological trauma. Which of the following exclusions in the commercial general liability policy applies?

Federal Employers Liability Act (FELA)

The federal act that provided more favorable benefits for interstate railroad workers by allowing the injured worker to sue the negligenc is

C Boatowners policy Section I - Physical damage coverages Section II - Insuring agreement for watercraft liability, medical payments, and uninsured boaters

Which of the following is NOT part of Section II of the boatowners policy? A. Medical payments B. Uninsured boaters C. Watercraft damage D. Watercraft liability

B Absolute liability is the obligation to compensate injured workers without regard to fault or negligence

The obligation to compensate injured workers without regard to fault or negligence is know as A. Compulsory liability B. Absolute liability C. Employers liability D. Elective liability

Twisting

An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as

A

Which endorsement, when added to the personal auto policy, alters the definition of covered auto to include motor homes, golf carts, or motorcycles? A. Miscellaneous-type vehicle endorsement B. Recreational vehicle endorsement C. Extended coverage endorsement D. Nonhighway vehicle endorsement