Comprehensize exam
An HO-3 policy will pay how much for a tree damaged in a windstorm? A $0 B $1,000 C $250 D $500
A
An insured has a Commercial Umbrella Liability policy. If the insured's underlying Commercial Auto policy is cancelled and not replaced, and the insured then becomes liable for damages related to its commercial autos, the Umbrella policy will: A Act as though the underlying auto policy is still in place B Also be cancelled, as of the date of cancellation for the Commercial Auto policy C Drop down to cover all damages D Cover the loss as primary insurance, less a penalty
A
An insured owns a commercial building and business personal property, insured on the Business and Personal Property Coverage Form with the Replacement Cost Optional Coverage. After a total loss to the building, the insured chooses to rebuild at a different location. Which of the following best describes the insurer's liability? A The insurer will pay the amount that would have been incurred if the building was rebuilt at the original location B The insurer will not provide coverage for building at a new location C Because the building is in a new location, the insurer will pay up to $100,000 for the rebuilding cost D The insurer will pay the actual cash value of the building in the new location
A
As defined by a Commercial Crime policy, which of the following is correct? A Theft includes any unlawful taking of property, including burglary and robbery B Burglary includes losses evidenced only by an inventory shortage C Burglary must include threat of violence D Money includes evidences of debt
A
The Scheduled Personal Property Endorsement on a Homeowners policy may insure all of the following types of property, except: A Rare or exotic animals B Musical instruments C Fine arts D Coin collections
A
Under Dwelling policies, household and personal property, including property in transit between the insured's old and new residences, are covered under: A Coverage C B Coverage A C Coverage B D Coverage D
A
Under the BOP, which of the following is not an Optional Coverage? A Electronic Data B Money and Securities C Employee Dishonesty D Outdoor Signs
A
Under the Business Income Coverage Form, the period of restoration for business income coverage begins how long after the time of loss? A 72 hours B 48 hours C Immediately D 24 hours
A
Under the Farm Property coverage part, which of the following could be insured under Coverage E - Scheduled Farm Personal Property? A Livestock B Chutes C Pickups D Fences
A
Under the Nebraska Workers' Compensation Act, the __________ is liable for all reasonable medical, surgical, and hospital services required by the nature of the injury and that will relieve pain or promote employee's restoration to health and employment. A Employer B Employee C Insurer D State
A
What coverage is not included under a Yacht policy? A Personal injury coverage B Towing expenses coverage C Protection and Indemnity coverage D Personal property coverage
A
Which of the following would not be covered under Section II of a Homeowners policy? A Property damage to property owned by an insured B Injuries to guests visiting the insured's home C First-aid expenses D The family dog bites someone three blocks from the residence premises
A
Which part of a property insurance policy describes the perils? A Insuring Agreement B Definitions C Declarations D Additional Coverages
A
An unendorsed Garage Coverage Form does not provide: A Physical damage coverage for the insured's autos B Advertising liability coverage C Garagekeepers coverage D Product liability coverage
B
Eligible dwellings for Homeowners insurance may have up to how many roomers or boarders per family? A Three B Two C None D Five
B
On the DP-2, a loss to which of the following could be valued at its replacement cost? A Interior carpeting B A detached garage C A swimming pool D Household appliances
B
The Broad Theft Coverage Endorsement added to a Dwelling policy insures against theft of which of the following types of property? A Motor vehicles B Money and securities C Credit cards D Animals
B
Under the BOP, the Money and Securities Optional Coverage would cover which of the following? A Theft of currency by employees B Theft of contracts representing money C Destruction of business personal property D Accounts receivable records
B
Which statement is correct about medical payments provided by a Personal Auto policy? A Medical expenses include payments for injuries that result from an auto racing activity B Expenses for medical services sustained by the insured are covered C Medical payments coverage is provided by Part A D Medical expenses are paid only when the insured is legally liable
B
All of the following would be included in the definition of insured location, except: A A summer vacation home rented by the insured B A boat slip used by the named insured C A 5-family dwelling in which the insured lives in one of the units, including the structures and grounds D Land upon which a 4-family dwelling is being built as a residence for the named insured
C
An agent is best described as which of the following? A A producer authorized by the Department of Insurance to adjust insurance claims B A producer who represents persons who have contracted with the producer to obtain insurance for them C A producer who has a contract with an insurer to represent that insurer in the sale of its products D A producer who represents members of the public wishing to purchase insurance
C
Equipment covered by the Equipment Breakdown Protection Coverage Form includes all of the following, except: A Mechanical equipment used to generate energy B Communication equipment C Computer equipment manufactured for sale D Equipment operating under an internal vacuum
C
On a Special Form Homeowners policy, the dwelling and other structures are insured against which perils? A Broad perils B Basic perils C Open perils D Named perils
C
The Bailees Customers Coverage Form could be used to cover which of the following property belonging to a customer? A Animals and birds B Furs and jewelry C Clothing and storage property D Bills and money
C
Under a Homeowners policy, how much coverage is provided for theft or unauthorized use of a credit or debit card? A $1,000 B $200 C $500 D The Coverage C Limit of Insurance
C
Under the Garage Coverage Form, Section II - Liability Coverage provides all of the following coverages, except: A Completed operations liability B Products liability C Damage to the customer's car in the insured's care D Premise and operations liability
C
Which statement regarding a Workers' Compensation insurance policy is not correct? A It covers investigation and defense costs B Payment of benefits is made without regard to negligence C The premium is paid by the employee D It pays medical expenses, loss of time benefits, and death benefits
C
An insured has a Commercial General Liability policy written on the Occurrence Form, effective as of January 1 and expiring on January 1 of the following year. A customer was injured on the insured's business premises on December 1. In order for the insured's policy to provide coverage, the legal claim against the insured must be made: A Within 60 days after the end of the policy B Within 5 years after the end of the policy C Within 60 days after the date of the occurrence D At any time
D
Coverage A on a Homeowners policy with the Mobile Home Endorsement would cover all of the following, except: A Structures attached to the mobile home B Permanently installed appliances and cabinets C Utility tanks D The land on which the mobile home is located
D
If a messenger has insured property stolen by a pickpocket on a subway, this is an example of what kind of crime? A Burglary B Robbery C Extortion D Theft
D
If an insured adds the Automatic Increase in Insurance Endorsement to their Broad Form Dwelling policy, what effect does it have on the policy? A It increases policy limits for the dwelling only B It increases policy limits for the dwelling, other structures, and personal property only C It increases policy limits for all coverages D It increases policy limits for the dwelling and other structures only
D
Under the Building and Personal Property Coverage Form, which statement concerning the Agreed Value Optional Coverage is correct? A Agreed value coverage eliminates the deductible in loss payment B Agreed value coverage requires coinsurance of at least 90% C The agreed value is the amount of loss agreed upon by the insurer and the adjuster D Agreed value coverage suspends the coinsurance requirement
D
Which of the following claims would be covered by collision coverage under Part D - Coverage for Damage to Your Auto of a Personal Auto policy? A Damage to the auto caused by collision with an animal on the roadway B Damage to the auto caused by objects blown into it during a tornado C Breakage of the windshield caused by collision with a stone or other missile D Damage to the insured auto's bumper when the auto crashed into a tree
D
A Basic Form Dwelling policy does not include which coverage? A Loss of fair rental income after a direct physical loss B Worldwide coverage on personal property C Additional living expenses incurred after a direct physical loss D Property removed to a newly acquired residence
C
Business liability coverage provided under Section II of the BOP includes coverages for defense costs, which: A Reduce the relevant limit of liability B Are subject to a Duty to Defend sublimit C Are paid in addition to the limits of liability D Are subject to a Defense Aggregate limit
C
Every insurance company transacting business in this state must annually pay _____ of the Workers' Compensation benefits it paid during the preceding year to the Workers' Compensation Trust Fund. A 1% B 5% C 2% D 10%
C
The authority of a producer to perform duties that are directly stated in their agency contract is said to be: A Apparent powers B Implied powers C Express powers D Assumed powers
C
When an individual faces the risk of economic loss in the event of property damage, this indicates which of the following? A Subrogation B Merit rating C Insurable interest D Limit of recovery
C
Which of the following applies when two parties rely upon the promises of the other? A Parole evidence rule B Concept of adhesion C Concept of utmost good faith D Doctrine of estoppel
C
Which of the following is considered property not covered by the BOP? A Personal property leased by the insured B Outdoor furniture C A satellite dish located on the roof of an insured building D Landlord's furnishings located in common areas
C
A retail store, protected by a Businessowners policy, has a claim made against them by a customer injured on the store's premises. Notice of the claim must be delivered to the insurer: A Within 30 days B Within 20 days C Within 10 days D As soon as practicable
D
After an accident at an insured's home that results in bodily injury to a guest, the insured's Homeowners policy requires the insured to do all of the following, except: A Promptly forward to the insurer any legal documents related to the accident B Aid the insurer in taking the case to court, at the insurer's request C Provide written notice of the accident to the insurer as soon as practical D Voluntarily make payments toward the guest's medical expenses
D
An insured has a Commercial General Liability policy written on the Claims-Made Form. Which of the following is correct regarding the supplemental extended reporting period? A Cancellation of the insured's SERP by the insurer requires 90 days' advance written notice B The SERP increases the policy's limits of insurance C The SERP covers occurrences that take place after the policy term during the supplemental extended reporting period D The SERP's premium is a one-time charge
D
Market value loss valuation means that the insurer will pay: A The amount for which property can be sold at the end of its life B The cost of replacing property with its functional equivalent C The cost to repair or replace property, minus depreciation D The price a willing buyer would pay under fair market conditions
D
The HO-6 would provide coverage for all of the following losses, except: A Medical expenses for a guest injured in the condo unit B Smoke damage to personal property owned and used by the insured in a vacation home C Additional living expenses incurred after a fire in the condo building D Theft of the insured's pet
D
The Mobile Agricultural Machinery and Equipment Coverage Form includes coverage for all of the following, except: A Farm tractors B Cotton pickers C Hay balers D Irrigation equipment
D
To appoint a producer as its agent, an insurer must file a notice of appointment within _________ from the date the agency contract is executed. A 10 days B 5 days C 30 days D 15 days
D
Under a Homeowners policy, medical payments coverage will apply to medical expenses incurred after an accident within: A Two years B One year C Four years D Three years
D
Under a Personal Auto policy, Part A would provide coverage to all of the following people as insureds, except: A The named insured's unlicensed child B A neighbor borrowing the auto to deliver food to a relative C A nonresident relative using the named insured's auto with permission D A mechanic servicing the auto
D
Under the Dwelling Program, which Other Coverage is not included on the Basic Form? A Property Removed B Improvements, Alterations, and Additions C Worldwide Coverage D Trees, Shrubs, and Other Plants
D
Which of the following perils is not covered under the Extended Coverage Endorsement to the DP-1? A Explosion B Smoke C Riot or civil commotion D Damage by burglars
D
Which of the following statements regarding Property Off Premises coverage under the Building and Personal Property Coverage Form is correct? A Property located off the insured's premises is covered for up to 30 days after its removal to protect it from a covered loss B The coverage applies to property in transit on a motor vehicle C It is automatically included in the policy as an Additional Coverage D Property in the care, custody, and control of a salesperson is excluded if they are not at a fair, trade show, or exhibition
D
Which type of cargo policy would cover a person who owns their own truck and hauls their own goods? A Commercial Articles Floater B Truckers Coverage Form C Business Auto policy D Motor Truck Cargo Owners Coverage Form
D
After Company ABC's computer network is damaged by a virus during an intrusion by hackers, which Commercial Crime Insuring Agreement would indemnify the loss? A No coverage is available for this loss B Computer Fraud C Inside the Premises - Robbery or Safe Burglary of Other Property D Fund Transfer Fraud
A
It is an unfair trade practice to present any information that is misleading about any insurer in the conduct of their insurance business. This is known as: A False advertising B Coercion C Unfair discrimination D Rebating
A
Livestock is not eligible for coverage under which Covered Causes of Loss option available to Farm Property policies? A Covered Causes of Loss - Special B Covered Causes of Loss - Basic C Covered Causes of Loss - Comprehensive D Covered Causes of Loss - Broad
A
Producers must report to the Director any criminal prosecution taken against them in any jurisdiction within __________ of the date of arraignment. A 30 days B 20 days C 45 days D 10 days
A
The part of an insurance contract that varies with each individual policy, but is still a mandatory part of the policy, is the: A Declarations B Insuring Agreement C Exclusions D Conditions
A
Which Commercial General Liability coverage form helps insurers reduce the risk associated with long-tail reporting periods for claims made against the insured? A Claims-Made Form B Occurrence Form C Discovery Form D Loss Sustained Form
A
Which of the following best describes the situation when a property has neither contents nor occupants? A Vacancy B Mysterious disappearance C Abandonment D Unoccupancy
A
Which of the following is not an Additional Coverage under the BOP? A Personal Effects B Business Income C Forgery or Alteration D Collapse
A
he BOP's Money and Securities Optional Coverage will cover: A Money and securities against theft, disappearance, or destruction B All business personal property C Accounts receivable records necessary to prove amounts owed the insured D Money or securities stolen employees
A
he relationship of a person acting on behalf of an insurance company whereby the person's actions can bind the company is defined by: A The law of agency B Brokerage business C The law of large numbers D Surplus lines or excess insurance
A
Rates established by the underwriter, rather than by a risk classification or the insured's loss history, for a specific insured describes which rating method?
A Judgment rating B Merit rating C Manual rating D Loss cost rating A
An unendorsed Personal Auto policy may be used to insure all of the following, except: A A conversion van B A motorcycle C A farm pickup D A station wagon
B
Licensees must inform the Director of insurance of a change of legal name or address within ______ days after the change. A 20 B 30 C 45 D 15
B
Under a Mobile Homeowners policy, if the mobile home is insured under Coverage A for $100,000, how much coverage would ordinarily apply to personal property under Coverage C? A $30,000 B $40,000 C $50,000 D $20,000
B
Under the Property Removed Other Coverage of a Dwelling policy, which of the following is incorrect? A The coverage does not change the limit of liability that applies to the property B The policy will not provide any coverage while insured property is being removed when endangered by a covered peril C Removed property is covered against direct loss from any peril D Under the DP-1, coverage is provided for up to 5 days
B
Which of the following defenses against negligence reduces damages in proportion to the degree of negligence? A Assumption of risk B Comparative negligence C Statute of limitations D Contributory negligence
B
Which of the following is not considered an unfair claim settlement practice? A Compelling insureds to institute litigation to recover amounts due by offering substantially less than the amounts recovered in actions brought by legal process B Failing to pay a claim prior to the receipt of a proof of loss C Delaying investigation or payment of a claim by requiring submission of a preliminary claim report D Refusing to pay claims without conducting a reasonable investigation
B
The Business Auto Coverage Form would cover which of the following losses? A Expenses incurred to respond to damage caused by the escape of lubricant from a covered auto after a covered accident B Expected or intended injuries C Injuries resulting from the operation of mobile equipment D Property damage caused by the insured's completed operations
A
The McCarran-Ferguson Act of 1945 set what standard for the insurance industry? A Insurers must be admitted by a state to transact insurance in that state B All states must use standardized forms established by ISO C The NAIC may enact and enforce insurance laws D The federal government cannot regulate insurance when the states have authority to do so
D
The CGL's general aggregate limit does not cover which of the following? A Liability associated with a recalled product B Advertising injury liability C Medical payments D Bodily injury liability
A
Endorsements may be added to an insurance policy to do any of the following, except: A Add coverages not included in the policy B Increase policy limits C Amend a standardized policy to comply with state law D Specify the policy's annual premium
D
Homeowners policies provide liability coverage for the use of all of the following motor vehicles, except: A A motorized wheelchair B An ATV on the insured's premises C A riding lawn mower pulling a two-wheel garden trailer D A motorized golf car being driven on a public beach
D
Which of the following would not be considered an insured under a Commercial General Liability policy? A An LLC employee's spouse assisting in cleaning the office so they can leave for vacation more quickly B Volunteer worker handing out flyers for the insured's business C Executor of the CEO's estate after their death D Real estate manager acting on behalf of the insured
A
An accounting firm discovers that someone has hacked into its records to steal the account numbers and routing numbers of its employees, and used these numbers to fraudulently draw funds from those accounts. Under which Commercial Crime Insuring Agreement would this loss be covered? A Inside the Premises - Theft of Money and Securities B Computer Fraud C Money Orders and Counterfeit Money D Forgery or Alteration
B
An insured covers their commercial property on the Building and Personal Property Coverage Form. A salesperson employed by the insured attends a trade show and must take property off the insured premises. Coverage for this property is: A Provided while it is in transit to the trade show, but not while at the trade show itself B Provided as a Coverage Extension C Provided as an Additional Coverage D Not provided by the policy
B
Because the insurance company must pay claims and the insured must comply with the policy terms, the insurance contract is considered which of the following types of contracts? A Unilateral contract B Conditional contract C Contract of adhesion D Aleatory contract
B
Building and Personal Property Coverage Form will pay up to what percentage of the building loss amount for debris removal expenses incurred after a direct physical loss? A 10% B 25% C 15% D 5%
B
Other than collision coverage provided under Part D of an insured's Personal Auto policy would cover losses to an insured vehicle caused by all of the following, except: A Hail B Driving into a tree C Larceny D Fire
B
The Director of Insurance may issue a temporary insurance producer license for up to ____ days without requiring an examination if the temporary license is necessary for the servicing of an insurance business under certain circumstances. A 270 B 180 C 240 D 210
B
The Equipment Breakdown Protection Coverage Form would not cover which of the following? A Explosion of a steam boiler or steam engine B An air conditioning unit intentionally disabled by an employee C Spoilage of refrigerated materials following a transformer failure D Accidental smoke damage to a machine caused by an employee
B
The Nationwide Marine Definition specifies risks that may be written under Marine insurance. All of the following may be insured under Marine policies, except: A Bridges and tunnels B Commercial buildings C Domestic shipments of goods for distribution D Imports and exports
B
The Truckers Coverage Form is designed for: A Any firms that lease commercial vehicles from others B Firms in the business of transporting goods or commodities for hire C Only those firms that own and operate tractor-trailer units D Any firms that operate trucks as a part of their business operation
B
Under Part One of a Workers' Compensation and Employers Liability policy, the insurer agrees to pay all of the following expenses, except: A Workers' Compensation benefits owed to injured workers B The insured's loss of earnings due to the insurer's investigation C Interest on judgments against the insured D Premiums for appeal bonds
B
Under a Homeowners policy, personal liability coverage includes all of the following, except: A Payment of prejudgment interest awarded against the insured, subject to the applicable limit B Coverage for damages awarded against an insured due to personal injury to a third party C Coverage for damages awarded against an insured due to bodily injury to a third party D The insurer's duty to defend the insured at the insurer's expense
B
A Difference in Conditions policy is a special form used to fill in coverage gaps found in a property policy. Which of the following is correct regarding DIC policies? A DIC policies must have a coinsurance requirement of at least 80% B DIC policies are written with a standard deductible of $1,000 C DIC policies are written on an open perils basis, excluding perils covered under standard property forms D The standard DIC form is developed and filed by the NAIC
C
A dental lab protected by an unendorsed Businessowners policy is damaged by a fire. Hoping to minimize the suspension of business, the lab incurs extra expenses to move to a temporary location and resume business. These extra expenses are covered during the period of restoration, which begins: A Immediately after the fire loss B 24 hours after the fire loss C 48 hours after the fire loss D 72 hours after the fire loss
C
A property owner in a participating community completes the application with the NFIP and pays the first premium. Their flood policy will become effective: A After 15 calendar days B As soon as the NFIP binds coverage C After 30 calendar days D Immediately
C
According to Workers' Compensation laws, exclusive remedy means that: A Only full-time employees are eligible for Workers' Compensation benefits B Once an employee has been compensated for an injury by Workers' Compensation, the policy will not pay for any subsequent injuries C Employees covered by Workers' Compensation insurance cannot sue for work-related injuries D The employer may decide which types of employees are eligible for benefits provided by a Workers' Compensation policy
C
All of the following are true of liability policies, except: A They will pay sums that the insured becomes legally liable to pay B They are designed to cover third party injuries or damages C They will cover damage to the insured's own property D They do not cover medical expenses incurred by the insured
C
The HO-2 protects against all of the following losses, except: A Fire loss to a tool shed that stored gasoline in gas cans for the insured's personal use of a lawn mower B Theft of jewelry C Rain damage to the interior after a window was left open during a storm D Smoke damage to a fence after a house fire
C
Under a Homeowners policy, which statement about personal property coverages is incorrect? A The Scheduled Personal Property Endorsement provides open perils coverage for listed items B An endorsement may be added to cover the contents on a replacement cost basis C Money is covered up to $500 per occurrence on an unendorsed policy D Theft of silverware is covered up to $2,500 on an unendorsed policy
C
An insured has coverage under the Equipment Breakdown Protection Coverage Form. A $25,000 sublimit applies to all of the following losses, except: A Spoilage due to ammonia contamination B The cost to research, replace, or restore damaged data or media C Additional expenses to respond to hazardous substances affecting covered property D Loss to equipment that is used to supply utility services to the premises and that is owned by a private utility
D
As provided by the Commercial Inland Marine Conditions Form, in the event of a partial loss to covered property, the claim payment will: A Automatically be based on an appraisal B Not reduce the applicable sublimit, but the aggregate limit will be reduced C Reduce the limit of liability D Not reduce the limit of liability
D
In which capacity would a bank teller have the responsibility of taking bank securities to a sister bank every morning? A Watchperson B Trustee C Custodian D Messenger
D
Insureds who have flood insurance through the NFIP may qualify for Coverage D, which provides up to $30,000 for: A Indirect financial loss B Debris removal C Costs that result from loss to a single-family building in the Emergency Program D Costs that result from compliance with local floodplain management laws or ordinances
D
The Personal Liability Supplement provides all of the following coverages, except: A Medical payments coverage B Damage to the property of others coverage C Bodily injury liability coverage D Personal injury liability coverage
D
Under a legal insurance contract, the insurer and insured exchange unequal values, as the values received by each party depends on the uncertainty of a covered loss occurring during the policy period. This best describes which type of contract? A Contract of adhesion B Conditional contract C Unilateral contract D Aleatory contract
D
