Comprehensive Exam (PC indiana)

The maximum medical payment under the Automobile Insurance Assigned Risk Plan (AIP) is:

$1,000

An insured is part of a homeowners association. After a property loss to a common area owned by all of the association's members, the insured is assessed $1,500 for the damages. The insured's Homeowners policy will provide:

$1,000 of coverage

Policyholder J hit a deer with their Honda. J has collision coverage with a $250 deductible and Other Than Collision coverage with a $50 deductible. The damage to J's car was $450. How much will the policy pay?

$400

If an insured has a Personal Auto policy with collision coverage, transportation expenses incurred after a collision are covered, up to a total of:

$600

Under the Workers' Compensation policy, the insurer may audit records pertaining to the policy, such as tax reports and payrolls, for up to how many years after the policy period ends?

3

A Builders Risk policy insuring a commercial building under construction automatically ends how many days after construction is complete?

90

Part B - Medical Payments Coverage of a Personal Auto policy would cover medical expenses sustained by any insured while they occupy:

A car used to carpool with colleagues

Under the Watercraft Liability Endorsement on a Homeowners policy, an injury to which of the following people would be covered under Coverages E and F?

A guest of the insured

Who among the following would not be exempt from licensing?

A person who receives a commission for selling group insurance

Under Homeowners policies, a worker whose duties are related to the maintenance or use of the residence premises is defined as:

A residence employee

An unintended and unforeseen event from which a loss results is called which of the following?

Accident

All of the following statements regarding the structure of a property policy are correct, except:

Additional Coverages are added to the policy for an additional premium

An insurance company is organized under the laws of the United Kingdom, and is authorized to do business in New York. In New York, what kind of insurer is this?

Admitted alien insurer

When property is difficult to replace or value, like fine art pieces, insurers will often use which valuation basis to settle covered losses?

Agreed value

An insured slips on an icy patch in the road and collides with a tree. The insured's Personal Auto policy will provide coverage as long as the insured:

Allows the insurer to inspect the damage before repairs

Under the Hired Auto and Non-owned Auto Liability Endorsement on a Businessowners policy, which of the following would not be considered a hired auto?

An auto owned by the insured's employee

All the following injuries are covered under a Workers' Compensation policy, except:

An employee whose injury results from intoxication

Which of the following is an example of vicarious liability?

An employer's liability for the acts of an employee

Theft is specifically defined as:

Any act of stealing

When property is valued on a replacement cost basis, losses will be paid:

At today's costs, without any deduction for depreciation

To help offset inflation, insureds under a Dwelling policy may purchase which endorsement?

Automatic Increase in Insurance

Which of the following is not covered under Section II of the Garage Coverage Form?

Bodily injury to an employee

An insured uses the Building and Personal Property Coverage Form for insurance on their commercial building. Building coverage provided by the form would cover direct loss to:

Completed additions

The purpose of the Businessowners Coverage Form is to:

Cover major property and liability exposures of a small- to medium-sized business

K has a Broad Form Dwelling policy. Which coverage applies to the building described in the Declarations?

Coverage A

L has a Business Auto policy covering autos used for L's small business. All of the following are an insured under Section II - Covered Autos Liability Coverage of L's BAP, except:

D, who owns a private passenger auto L borrows for the business

Which of the following is a violation of the Indiana Producer Licensing Law?

Failing to inform the Commissioner of a change of legal name

Which of the following losses covered by a Homeowners policy would be subject to a deductible?

Floor damage after water overflows from an appliance

Which of the following is a violation of the Indiana Unfair Claims Settlement Practices Act?

Forcing an insured to sue the insurance company in order to receive a claim settlement

The Conditions section of a liability policy would include which of the following pieces of information?

If another insurance policy also applies to a covered loss, the insurer will pay its pro rata share

The Indiana Commissioner of Insurance may administer any of the following punishments for violating the Indiana Producer Licensing Law, except:

Imprisonment

An insured has two primary property policies on their home, and both policies have Other Insurance conditions that specify a pro rata liability coordination of coverage. The policy with Insurer A has a $100,000 limit. The policy with Insurer B has a $200,000 limit. In the event of a covered loss equaling $45,000, how will the insurers settle the losses?

Insurer A pays $15,000 and Insurer B pays $30,000

Which statement regarding the purpose of Employers Liability insurance is not correct?

It extends policy benefits to states not listed on the Information page

Coverage for recreational vehicles and motor homes can be added to a Personal Auto policy by the:

Miscellaneous Type Vehicle Endorsement

An insured looking to cover the dwelling against an intentional loss would need to purchase which Dwelling form?

No Dwelling form offers this coverage

The Insuring Agreement of a policy describes:

Perils that are covered

In Indiana, which of the following is not an unfair claims practice?

Promptly acknowledging communications pertinent to a claim.

Most liability policies do not provide coverage for:

Punitive damages

Under Workers' Compensation laws, vocational training benefits are a type of:

Rehabilitation benefit

An agent has authority to do all of the following, except:

Represent the insured

Under the Building and Personal Property Coverage Form on a Commercial Package policy, which of the following is included in coverage for the insured's business personal property?

Telephone systems

Which of the following is not true about an insurance policy?

The Insuring Agreement includes the name of the insured

Under the Earthquake and Volcanic Eruption Endorsement attached to the commercial property coverage part, which of the following statements is correct?

The endorsement's deductibles apply separately for each building, personal property in each building, and personal property in the open

If a Homeowners policy provision is change, the change must be made in writing by:

The insurer

Which of the following is true about the right of salvage?

The insurer has the right to take possession of damaged property after payment of a loss

Which statement is true regarding inspections and surveys under the BOP?

The insurer has the right, but is not obligated, to make inspections and surveys at any time

Insurers are subject to all of the following liability policy terms, except:

The insurer is relieved of its obligations if the insured is bankrupt

H lives in an area that is particularly prone to tornadoes. All of the following statements about coverage available to H to insure against the peril of windstorm are correct, except:

Windstorm coverage is typically provided without requiring a deductible

Wrongful acts covered by an Employment Practices Liability policy include all of the following, except:

Workplace injuries

Which of the following clauses protects the interests of the loss payee?

loss payable clause

Which Commercial Crime form provides coverage for any covered loss, as long as it occurs during the policy period and is discovered up to 1 year after policy termination?

loss sustained form

An insured has a Businessowners policy, and the Declarations page designates the insured as a corporation. Based on this designation, who is considered an insured under Section II of the policy?

the corporation's executive officers, directors and stockholders

Under the Building and Personal Property Coverage Form, what limit of insurance applies when coverage is extended to cover business personal property temporarily away from the premises?

$10,000

Failing to report a change of address to the Indiana Insurance Commissioner will result in a penalty of:

$100

Q's liability policy has the following limits: $25,000 per person, $100,000 per occurrence, and $2,000,000 aggregate. This year, five separate claimants each file $25,000 for injuries suffered in a single accident. How much will the policy pay?

$100,000

All of the following vehicles are considered mobile equipment by the CGL, except:

A pickup used on a farm

The Loss Assessment Additional Coverage provided by Section I of a Homeowners policy provides limited coverage for:

Assessments made for the insured's share of losses relating to property owned by a homeowners association

W plays hockey on the weekends and was injured while defending the goal. Which of the following defenses could the owner of the ice rink use to avoid liability for W's injuries?

Assumption of risk

The Hired Auto and Non-owned Auto Liability Endorsement on a Businessowners policy will cover:

Bodily injuries to others arising out of an employee's business use of a hired auto

An insured's Businessowners policy provides coverage for sums the insured is legally obligated to pay as damages due to bodily injury, property damage, or personal and advertising injury. This is provided by which coverage under Section II?

Business liability

The termination of an insurance policy, by either the insured or the insurer, before the policy's expiration date is known as:

Cancellation

Which of the following is not covered under comprehensive coverage under the Business Auto Coverage Form?

Collision

What type of insurance is provided by the Terrorism Insurance Program established by TRIA?

Commercial property and casualty

Which of the following defenses against negligence reduces damages in proportion to the degree of negligence?

Comparative negligence

An auto dealership has an Auto Dealers policy. If an insured is legally liability for damages paid to a consumer due to a negligent act, error, or omission, the policy will cover:

Compensatory damages

In which type of regulatory environment are private insurers permitted to write Workers' Compensation insurance?

Competitive

A contract prepared by one party and submitted to the other party on a take-it-or-leave-it basis, without negotiations, is called a(n):

Contract of adhesion

What is the term for a contract written by one party on a take-it-or-leave-it basis?

Contract of adhesion

Under Dwelling policies, household and personal property, including property in transit between the insured's old and new residences, are covered under:

Coverage C

Which of the following contract terms applies to the Musical Instruments Floater?

Covered instruments may not be played for pay during the policy term unless the insured selects a coverage option

A producer licensed in Indiana who intentionally makes a false statement about a competing insurance company's financial condition may be found guilty of:

Defamation

Which federal entity administers the Terrorism Insurance Program created by TRIA?

Department of the Treasury

All of the following are duties of an insured after a loss, except:

Determining the valuation method the insurer will use to pay the loss

Under the Auto Dealers Coverage Form, Section III - Acts, Errors, or Omissions Liability Coverages provides coverage for damages an insured must pay due to a negligent act, error, or omission arising out of any of the following, except:

Discrimination that violates a customer's civil rights

When the Commercial Crime coverage part is written on the Loss Sustained Form, covered losses must occur:

During the policy period

The standard policy structure for insurance policies includes all of the following sections, except:

Duties

Which of the following relationships involves vicarious liability?

Employer and employee

Which of the following would NOT be excluded under Coverage A of a Commercial General Liability policy?

Injuries resulting from the insured's operation of mobile equipment

If J has no endorsements added to their Personal Auto policy, under which of the following scenarios will J's injuries be covered under Part B - Medical Payments Coverage?

J was driving their own car from the post office after retrieving their employer's mail

Under a Business Auto policy, which of the following statements about towing coverage provided under the policy's physical damage coverage is correct?

Labor must be performed at the place of disablement to be covered

An accounting firm has a Commercial Package policy with the Commercial General Liability coverage part. Which of the following exclusions would not apply?

Liquor Liability

Under a Commercial General Liability policy, which coverage pays regardless of fault?

Medical payments coverage

Under which section of a Workers' Compensation and Employers Liability policy would the insured's duties be found?

Part Four

Supplementary payments are best described as:

Payments for costs associated with investigating and resolving claims, such as premiums on appeal bonds

All the following are considered violations of the Indiana Producer Licensing Law, except:

Selling a policy to a family member

When a claimant can prove that a product caused an injury, the fact that the manufacturer will be held liable regardless of whether the product was defective or not is an example of:

Strict liability

In a legal insurance contract, all of the following are considered part of the consideration, except:

The legal capacity of the involved parties

Which of the following about policy limits applicable to Commercial General Liability policies is not correct?

The limits of the policy stated in the Declarations are the maximum amounts payable for the life of the policy

ROS Company owns a large office building, out of which it conducts business. During a storm, lightning strikes the building, causing significant damage to the building's electrical system and starting a fire that causes $100,000 in damage. Until the necessary repairs are made, the office cannot be used. If the company has the Business Income and Extra Expense Coverage Form included in its Commercial Package policy, extra expense coverage would apply to which loss?

The necessary expenses incurred after the loss to minimize the suspension of business by establishing a workplace at another location

All of the following statements regarding property insurance are correct, except:

The owner of clothing left in the care of a dry cleaner is called a bailee

Which statement regarding liability insurance coverage is incorrect?

The per occurrence limit is the maximum amount recoverable during the policy period

Which of the following is stated in the Insuring Agreement?

The perils insured against

Which of the following is true concerning the Premium Audit condition of the Commercial General Coverage Part?

The premium audit determines what the earned premium will be at the end of the policy period

The concept that the insured should not profit from an insurance transaction is called:

The principle of indemnity

For a corporation to be licensed as an Indiana resident producer, which of the following is required?

There must be a designated licensed producer responsible for compliance

If a licensed producer from Ohio moves to Indiana and immediately applies for an Indiana resident producer license, which of the following statements is true?

They must surrender their current resident producer's license to the state of Ohio

The insurance provided by a liability policies applies:

To each insured separately, except for policy limits

Which of the following are true regarding uninsured/underinsured motorists coverage?

UM/UIM coverage may be rejected by the insured

In the event a company's records are destroyed, the Accounts Receivable Coverage Form would cover uncollectable sums if the loss resulting from which of the following perils?

theft

The unendorsed Dwelling Broad Form (DP-2) insures against all of the following perils, except:

theft