Casualty Quiz
A North Carolina insured is operating an insured vehicle in another state. Financial Responsibility Laws in that state requires minimum liability limits of 15/30/10. The insured has a Personal Automobile Policy with liability limits 50/100/50 and is involved in at-fault accident. The accident causes $25,000 of B.I. to Claimant A and $51,000 of B.I. to Claimant B plus $12,000 of property damage. What is the extent of the insurance company's liability?
$87,000
An insured's automobile was stolen but it was recovered seven days later. How much, if any, could an insured collect under Other Than Collision (OTC) coverage under Part D, Physical Damage, of the Personal Automobile Policy for a vehicle rented the day the theft occurred?
$75,000
The North Carolina Automobile Reinsurance Facility is required to:
Issue automobile liability policies with limits from 30/60/25 to 100/300/50.
An insured is involved in an accident while operating a non-owned automobile. The accident results in property damage and bodily injury to another party. In what manner will the liability for this accident be satisfied?
The non-owned vehicle's policy will pay to its limits; the personal automobile policy of the insured will cover any excess.
In surety bonding, whose performance is being guaranteed?
The obligor
A covered worker is disabled for 21 consecutive days. For how many days will workers compensation provide a benefit?
14
All of the following would be an eligible risk in the North Carolina Motor Vehicle Reinsurance Facility EXCEPT:
A nonresident of North Carolina who owns a motor vehicle registered in another state but which is principally garaged in North Carolina
The Business Automobile Policy covers only those vehicles that are identified as covered automobiles on the declarations page of the policy. Covered automobiles are identified by:
A numerical designation symbol
Which of the following is a statutory requirement of the North Carolina Reinsurance Facility:
Any admitted insurer must accept automobile liability coverage from any eligible risk.
A business is unable to purchase workers compensation from an insurance company in North Carolina because of an unfavorable loss history. The business would:
Apply to the North Carolina Rate Bureau who would bind the coverage for the first 30 days
The Commercial General Liability Policy provides coverage for all of the following EXCEPT:
Damage to property owned by the named insured or in their care, custody and control.
Which of the following would be correct in regards to the Safe Driver Incentive Plan?
Inexperienced motor vehicle operators may be charged higher rates for 3 years without any moving traffic violations
Which of the following statements concerning the North Carolina Personal Automobile Policy is true?
Medical Payments (Part B) provides coverage for people who are not related to the insured while occupying an insured vehicle
All of the following are considered to be uninsured motorist losses EXCEPT?
Motor vehicle operators with liability limits equal to or greater than the minimum required limits in North Carolina, but less than the damage they caused.
A business damages a customer's property while working on the customer's home. What type of loss would this be under the business' Commercial General Liability (CGL) policy?
Operations
In determining the earned premium in a Worker's Compensation policy, an audit will determine the employer's____________?
Payroll
Which of the following coverage would NOT be provided by a Commercial General Liability Policy?
Professional LiabilityThe
All of the following activities are the responsibility of the North Carolina Department of Insurance EXCEPT:
Setting the rates charged for personal automobile insurance policies
What does North Carolina law allow if a proposed workers compensation insurance rate filing has been denied by the Insurance Commissioner?
The Rate Bureau may appeal the decision to the court which permits the insurance companies to charge the denied rate.
Which of the following persons are NOT insured under a Commercial General Liability Policy?
The named insured while at home
Under the Personal Automobile Policy, which of the following statements about a newly acquired additional vehicle is true?
The vehicle will be provided the broadest coverage now provided for any vehicle shown on the declaration's page of the policy as long as the insured asks the insurer to insure it within 30 days
Robbery is defined as:
Theft through physical force or threat of violence.
In what situation does a coverage part become mandatory in the Commercial Package Policy?
There are no mandatory coverages
Which of the following statements regarding commercial inland marine insurance is correct?
These policies provide open perils coverage
In the event a worker suffers a broken leg in a work related occurrence and is anticipated to completely recover, Worker's Compensation's disability benefit pays:
Until the worker returns to work