Casualty insurance, PA
What is the maximum amount of monthly income loss benefits available under first-party benefits in a motor vehicle liability insurance policy?
$2,500
Abbey's station wagon was stolen on July 6 and she immediately reported the theft to her insurer. Her business auto policy's physical damage coverage will pay for transportation expenses. She immediately rents a replacement auto for $25 a day and keeps it until July 29, when her stolen auto is returned to her. What is the maximum amount her insurer will pay for this transportation expense?
$420 (21 days × $20)
With respect to workers compensation disability benefits, the most common waiting period before benefits begin is:
3 days
auto liability and professional liability
A business that owns a commercial general liability (CGL) policy will be covered for all the following exposures EXCEPT:
5 years
A claims-made commercial general liability (CGL) policy that is canceled by the insured automatically gets a basic extended reporting period (BERP), at no additional period, for how long after the policy is cancelled?
It indicates a higher than average loss experience and will increase the premium.
Alhambra Construction Corp's workers compensation insurance policy has an experience modification factor of 1.8. What effect will this mod have on Alhambra's premium for workers compensation insurance?
a vehicle that does not carry uninsured motorist coverage
All of the following are treated as uninsured motor vehicles for purposes of the personal auto policy EXCEPT:
Coverage is triggered when the bodily injury or property damage occurs.
All of the following statements about a commercial general liability policy with a claims-made form are true EXCEPT:
No-fault benefits compensate injured parties for pain and suffering.
All of the following statements about a no-fault auto insurance system are true EXCEPT:
The employee was unaware that the occupational hazard existed in the specific industry or occupation.
All of the following statements may be true when considering whether a disease is an occupational disease for purposes of workers compensation EXCEPT:
subrogation
Angela works for Metro Printing Company, which uses equipment manufactured by the Superior Company. Angela is injured while using a Superior paper cutter. Investigation reveals that the machine was defective. The workers compensation insurer pays Angela the required benefits and then sues Superior to recover the payment. What gives it the right to sue Superior?
UM/UIM
Arbitration is the submission of a dispute to one or more impartial persons for a final and binding decision. With regard to auto insurance, arbitration can be used to resolve disputes involving which coverage?
a commercial package policy
Besides serving as a stand-alone policy, business auto insurance can be included in which of the following?
personal umbrella liability
Bridget purchased a liability policy to protect her against catastrophic liability claims for which she might be legally responsible. What type of policy did she buy?
120 days
Compensation for an employee's injury will be allowed only if the employer knew about the injury or was notified of it within how many days after the injury occurred?
All of the following statements about a commercial general liability policy with a claims-made form are true EXCEPT:
Coverage is triggered when the bodily injury or property damage occurs.
deposit the policy limits with the insured and walk away from any obligation to defend
Edward is a contractor who is being sued for a construction-related bodily injury sustained by an independent subcontractor. When Edward's insurer defends the suit, it may do all of the following EXCEPT:
$2,500
First-party funeral benefits may not exceed
incidental risk, such as a time delay
For purposes of workers compensation, risks can be categorized as any of the following EXCEPT:
auto and trailer dealers only
Garage policies can be used to provide insurance to:
second injury fund
Gary lost his left hand in a job-related accident. What incentive encourages employers to hire disabled workers such as Gary who have preexisting injuries and might be prone to further injuries?
7 days
How long is the waiting period before workers compensation benefits for total disability are paid to an injured employee?
Two
How many declarations are contained in a commercial general liability policy?
two
How many declarations are contained in a commercial general liability policy?
healing period
If an employee sustains a personal injury causing permanent partial disability for which compensation is payable, the employer also pays the injured employee compensation for a(n)
at least 20 days before the policy expires
If the insurer intends to nonrenew personal auto policy (PAP) coverage, it is required to notify the named insured:
Melanie has an accident while driving Lee's car. Melanie is injured and incurs medical expenses of $5,000. She carries medical payments coverage with a limit of $5,000 in her personal auto policy. Lee has a limit of $2,500 medical payments coverage in his PAP. How are Melanie's medical expenses paid under these insurance policies?
Lee's policy pays its $2,500 limit; Melanie's policy pays the $2,500 difference.
blanket coverage
Meerbaum Retail Outlet carries employee theft coverage in its crime policy. Its employee theft insurance covers all employees in the retail operation. What type of employee theft coverage does Meerbaum carry?
medical payments
Mrs. Ogden submitted a claim under her personal auto policy for injuries she sustained in an accident. The insurer made payment, it said, despite the fault of the driver. Under what coverage did the insurer make payment for Mrs. Ogden's injuries?
other than collision
Mrs. Updike returned from shopping one day to find that her car had rolled from the parking lot, down a ditch, and into the river. What coverage on her personal auto policy, if any, would cover this loss?
What organization developed a standard workers compensation and employers liability insurance policy, which is used in the majority of states?
National Council on Compensation Insurance
Gerald asks his insurance agent about additional coverage for a small motor boat that he periodically uses in his delivery business. Should a watercraft endorsement (HO 24 75) be considered?
No, this endorsement does not apply to commercial use of a boat.
Form CG 00 39 provides coverage for pollution cleanup costs whereas form CG 00 40 provides no coverage for cleanup costs.
Regarding the commercial general liability (CGL) policy, which of the following correctly describes the primary difference between the Pollution Liability Coverage Form Designated Sites (CG 00 39) and the Pollution Liability Limited Coverage Form Designated Sites (CG 00 40) endorsements?
Brock, whose injuries were the result of the employer's inadvertent failure to properly train him in the use of a new piece of equipment
Regarding workers compensation and in spite of the exclusive remedy provision, most states permit an injured employee to sue the employer in each of the following situations EXCEPT:
financial institution bond
Seamus, a commercial banking specialist with Metro National Bank, conspires with one of his less solvent accounts to give it a loan and get a kickback from the account. What type of bond will Metro need to cover a loss it suffers from this transaction?
compulsory no-fault
State laws that restrict an injured party's right to sue another driver under tort law, following a car accident, until a specified threshold of damages is surpassed are called:
Yes, the liquor liability exclusion applies only to firms in the business of making, selling, or serving alcoholic beverages.
Sutton, Smith, and O'Halloran, a law firm, hold a reception for clients. A client becomes intoxicated at the reception and while driving home collides with a van full of passengers, several of whom file claims against the client and the law firm. Does the firm have coverage under its commercial general liability policy?
The business auto policy uses a distinctive approach on the declarations page to indicate the coverages that apply to a specific insured. Specifically, how does the policy indicate this coverage for each vehicle?
Symbols are used to designate the vehicles covered and the coverages that apply.
The business pursuits endorsement (HO 24 71) excludes liability arising from professional services of any kind EXCEPT:
Teaching
utility van principally used in a manufacturing business
The Amendment of Policy Provisions-Pennsylvania (PP 01 51) endorsement adds a definition of newly acquired auto. Under this definition, the term does not include a
a branch office in Guatemala
The counterfeit money insuring agreement of a U.S. bank's financial institution bond covered the loss resulting from its acceptance of counterfeit money in Guatemala, which means that National Bank must have:
personal and advertising injury
The owner of Boulevard Bakery tells a customer that a competitor, Mel's Donut and Bagel Shop, has a filthy kitchen and does not comply with required safety standards. The customer tells Mel about these comments and Mel sues Boulevard Bakery. Which coverage under Boulevard Bakery's commercial general liability policy might cover the bakery for this claim?
The neighbor's policy will be primary; Tina's policy will be excess.
Tina borrows a neighbor's car to run a personal errand. She collides with another car and injures the other driver. The injured driver files a liability claim against Tina and the neighbor. Whose policy will handle the claim?
$20 per day with a maximum of $600
Transportation expenses cover up to:
51%
Under workers compensation, what percentage of the deceased's wages will a surviving spouse receive if the couple do not have any children?
No, because a CGL policy does not define electronic data as tangible property.
Ursula borrowed Felix's laptop computer to shop online. She dropped the computer and damaged the hard drive, which resulted in the loss of data files that Felix used in his business. If he files a property damage liability claim under his commercial general liability policy, will it cover the loss?
$3,000
What is the maximum amount of benefit paid for reasonable funeral expenses if an employee dies as a result of a work-related injury?
$15,000
What is the minimum amount of liability coverage required in a motor vehicle liability policy issued in Pennsylvania for property damage in any one accident?
Voluntary Compensation and Employers Liability Coverage endorsement
Which endorsement to the standard workers compensation policy offers benefits to employees who would otherwise be exempt from statutory workers compensation benefits?
claims-made form
Which form of the commercial general liability (CGL) policy covers the insured for injuries or damages only if the policy is in force when the claim arises?
replacement service benefits
Which of the following benefits would not be considered a first-party benefit in a motor vehicle liability insurance policy?
funeral expenses
Which of the following is NOT an exclusion under Part B - Medical Payments Coverage on the PAP?
The injury was caused by the employee's intoxication.
Which of the following may be used as a defense in an action brought to recover damages for a personal work-related injury to an employee?
The endorsed policy would cover a leak from an above-ground storage tank but it does not cover leaks from underground storage tanks.
Which of the following statements correctly describes how a commercial general liability (CGL) policy that includes the limited pollution liability extension endorsement will respond to a leak of gasoline from a service station's underground storage tank?
Both surety bonds and insurance involve three parties.
With respect to a comparison between surety bonds and insurance, all the following statements are correct EXCEPT:
$500,000, the difference between the PAP limit and the total claim
Zahra has an umbrella liability policy with a limit of $1,000,000. Her underlying insurance includes a personal auto policy with a $500,000 limit. Zahra's PAP lapses before she has an auto accident that seriously injures the passengers in both vehicles. The claims for personal injury total $1,000,000. Zahra files a liability claim for $1,000,000 under her umbrella policy. How much, if anything, will the umbrella policy pay?
Which of the following vehicles is NOT an "uninsured motor vehicle" at the time of an accident under Part C - Uninsured Motorists Coverage on a personal auto policy?
a vehicle that has an auto insurance policy with minimum liability limits
To calculate the estimated annual premium an employer will be charged for a workers compensation policy, the unmodified premium is:
adjusted by an experience modifier
Regarding workers compensation, a surviving spouse is entitled to death benefits in the form of weekly benefits that typically end
at the earlier of age 65 or remarriage
A business that owns a commercial general liability (CGL) policy will be covered for all the following exposures EXCEPT:A business that owns a commercial general liability (CGL) policy will be covered for all the following exposures EXCEPT:
auto liability and professional liability
State laws that restrict an injured party's right to sue another driver under tort law, following a car accident, until a specified threshold of damages is surpassed are called:
compulsory no-fault
For workers compensation purposes, a child or children of the deceased include all of the following EXCEPT:
grandchild
What type of plan is available to an insurance applicant who is entitled to obtain a motor vehicle liability policy, but is unable to do so through ordinary methods?
limited liability plan
An insurance policy issued in Pennsylvania on a motor vehicle registered or principally garaged in the state must include
neither uninsured nor underinsured motorist coverage
Mr. and Mrs. Ferreira were injured when their car was rear-ended by a drunk driver. Before they can sue the at-fault driver to recover damages for their injuries, they first must submit their injury claim to their own auto insurer for payment. What type of state law makes this requirement?
no-fault insurance laws
Surety bonds, once written, are generally:
noncancellable
Unknown to his insurance company, Butch uses his personal auto as a taxi, picking up people for a fee from the airport and transporting them downtown. He is involved in an accident while driving a passenger and is injured. He files a medical payments claim with his insurer but the insurer denies the claim. On what basis can the insurer deny this claim?
public or livery conveyance exclusion
Which of the following benefits would not be considered a first-party benefit in a motor vehicle liability insurance policy?
replacement service benefits
How many declarations are contained in a commercial general liability policy?
two
Jonas leased a brand-new Lexus for three years. What definition in his personal auto policy defines the Lexus after Jonas adds it to his policy?
your covered auto
