Exam 2
Supplementary payments under Part A of the Personal Auto Policy will pay which of the following? A Doctor bills when the insured is injured in an auto accident B Loss of earnings when the insured is disabled C A judgment against the insured in excess of liability limits D $250 for bail bonds
$250 for bail bonds
While most covered losses under the Building and Personal Property Coverage Form are settled on an actual cash value, which of the following is settled on a replacement cost basis? A A loss to outdoor equipment or furniture B A loss to awnings and floor coverings C A loss of $2,500 or less to a building D A loss to appliances, whether attached or not
A loss of $2,500 or less to a building
First Aid Expenses under the Homeowners Policy would cover: A Nonfamily residents of the household while on the premises B The Named Insured while on or off the premises C A neighbor who gets injured while helping the insured install a carpet D Members of the insured's family while on or off the premises
A neighbor who gets injured while helping the insured install a carpet
A person can purchase an insurance policy to cover losses from all the following, except: A Loss of property through burglary or theft B Sudden and direct damage to property by natural causes C Loss of assets through tort actions brought against the person D An operation of drug smuggling
An operation of drug smuggling
In liability policies, an aggregate limit: A Replaces the per occurrence limit B Is a lifetime limit C Applies per occurrence D Applies to losses from all occurrences within the specified policy period
Applies to losses from all occurrences within the specified policy period
At what point in time is the earned premium used to compute the final premium determined for the premium audit? A At the end of the policy period B At the time the premium deposit is made C At the beginning of the policy period D Monthly
At the end of the policy period
A damage award that is reduced in proportion to the amount of negligence is an example of: A Comparative risk B Contributory negligence C Contributory risk D Comparative negligence
Comparative negligence
All of the following are true of Section II of a Homeowners Policy, except: A No coverage applies to property owned by the named insured B Under Damage to Property of Others, intentional damages that are caused by any insured who is at least 13 years of age are not covered C Coverage would apply to damage to a neighbor's house that is caused by the insured's car when it accidentally rolls from the insured's driveway D Under Coverage E, coverage does not apply to bodily injury of the named insured or any relative or minor who resides in the same household
Coverage would apply to damage to a neighbor's house that is caused by the insured's car when it accidentally rolls from the insured's driveway
Which is the broadest basis for the Garagekeepers Coverage? A Direct excess basis B Legal liability basis C Full coverage basis D Direct primary basis
Direct primary basis
Coverage D of the Dwelling Policy includes: A Additional Living Expenses B Trees, Shrubs, and Other Plants C Other Structures D Fair Rental Value
Fair Rental Value
Which of the following is not covered by Supplementary payments? A Bail bonds B Loss of income C The insurer's claim-related expenses D First aid
First aid
The Business Auto Coverage Form is used: A For only owned, leased, hired or borrowed trucks, trailers and semi-trailers that are used by businesses B For owned, leased, hired or borrowed private passenger autos, trucks, trailers and semi-trailers that are used by businesses C For only owned, leased, or hired trucks, trailers and semi-trailers that are used by businesses D For only owned, leased, hired or borrowed private passenger autos that are used by businesses
For owned, leased, hired or borrowed private passenger autos, trucks, trailers and semi-trailers that are used by businesses
Which of the following is not a required element of a valid contract? A Consideration B Offer and acceptance C Incompetent parties D Legal purpose
Incompetent parties
Under Liability Insurance, Personal Injury Liability Coverage includes which of the following? A Bodily Injury, sickness, disease, or death B Misappropriation of advertising ideas or style of doing business C Infringement of copyright, title, or slogan D Libel, slander, false arrest, invasion of privacy, etc.
Libel, slander, false arrest, invasion of privacy, etc.
Which of the following is an example of concealment? A Mary indicates on her application that her annual mileage is 15,000, when she knows that she drives more than 450 miles per week to and from work B Mary answers 'No' to the question 'Have you been convicted of driving under the influence in the past ten years?' when she is scheduled to appear for trial for a DUI arrest tomorrow morning C Mary tells her agent she paid a traffic citation for speeding ten days ago, but her agent marks the application 'No' without Mary's knowledge because he knows the ticket will not show up on her driving record for at least 90 days D Mary inadvertently answers 'No' to the question, 'Have you been involved in more than one traffic collision in the past three years?' believing her accident happened more than three years ago
Mary answers 'No' to the question 'Have you been convicted of driving under the influence in the past ten years?' when she is scheduled to appear for trial for a DUI arrest tomorrow morning
Which coverage is not provided under Section II of a Homeowners Policy? A Third party property damage for which the insured is legally liable B Damage to property of others C Medical expense of a regular resident in the insured's home D Medical expense of a guest
Medical expense of a regular resident in the insured's home
What is it called when a producer, agent, or broker makes a false statement about an insurer's financial condition? A Rebating B Twisting C Misrepresentation D Defamation
Misrepresentation
Under the Business Income Coverage Form, when proper entry is made in the Declarations, the following are all Optional Coverages, except: A Business Income Agreed Value B Maximum Period of Indemnity C Monthly Limit of Indemnity D Non-Time Element Coverage
Non-Time Element Coverage
Commercial Property policies cover all of the following perils, except: A Fire B Vandalism C Riot or civil Commotion D Ordinance or law
Ordinance or law
The Businessowners Coverage Form Section II - Liability, provides coverage for: A Personal injury or advertising injury that is caused by an offense arising out of the insured's business, but only if the offense takes place in the coverage territory during the policy period B Advertising injury by an insured whose business is advertising C Personal Injury arising from an occurrence that took place during or before the policy period D Advertising injury of an insured newspaper
Personal injury or advertising injury that is caused by an offense arising out of the insured's business, but only if the offense takes place in the coverage territory during the policy period
Which of the following is NOT a type of coverage provided under a farm liability policy? A Medical payments B Bodily injury and property damage liability C Professional liability D Personal and advertising injury
Professional liability
Insuring an automobile is considered which of the following? A Pure Risk B Adverse selection C Speculative risk D Excluded peril
Pure Risk
An optional reporting period of unlimited duration that may be purchased by endorsement to a Claims-Made Form, if requested within 60 days of the end of the policy term, is called: A Basic Extended Reporting Period B Supplemental Extended Reporting Period C Mini-Tail D Midi-Tail
Supplemental Extended Reporting Period
Which statement is false regarding the Personal Auto Policy? A It provides medical payments for up to 3 years B Supplementary payments include up to $500 per day for loss of income C Theft is covered under other than collision (comprehensive) coverage D Auto collision coverage will cover damage to the insured vehicle regardless of liability
Supplementary payments include up to $500 per day for loss of income
All of the following are false concerning the Dwelling Policy Form, except: A The Broad Form covers the cost to repair defective plumbing B The Special Form covers the contents on an open peril basis C The Basic Form covers the perils of fire, lightning and internal explosion D The Basic Form covers the contents for theft
The Basic Form covers the perils of fire, lightning and internal explosion
Which statement is false of Homeowners policies? A The HO-2 pays for losses to the contents on an actual cash value basis B The HO-2 does not cover loss to a fence, driveway or walk caused by a vehicle owned or operated by the insured C The HO-2 covers the dwelling and contents for the broad form perils D The HO-2 will pay for repairs to a broken pipe that has caused water damage
The HO-2 will pay for repairs to a broken pipe that has caused water damage
Which of the following is true about a Stock Insurance Company? A The company is directed by officers and directors and has a stated amount of capital stock owned by stockholders B An insurance company whose home office is in some other state, but does business in this state C Any insurance company whose home office is in this state and is incorporated in this state D Policyholders own the insurance company
The company is directed by officers and directors and has a stated amount of capital stock owned by stockholders
Coverage for a loss that was discovered, but did not occur during the policy period, is provided by: A The occurrence form B The discovery form C The loss sustained form D The claims made form
The discovery form
Under what circumstances is an insurer permitted not to communicate information which otherwise would be required? A The insured waives the right to receive communication B It is too costly for the insurer to provide C The information is too complicated for the insured to completely understand D The insured deems it immaterial
The insured waives the right to receive communication
Which statement is false regarding the Building and Personal Property Coverage Form? A Coverage does not apply to money or securities B The Peak Season Endorsement can be provided for a specified increase for a certain period C If either the insurer or the insured submits a written demand for appraisal, each will choose and pay for his or her own appraiser D The standard deductible is $100
The standard deductible is $100
Which of the following might be considered a physical hazard? A The storage of all flammables in a fireproof container B The insured's attitude that good housekeeping is not important C Dishonesty on the part of an insured D The storage of flammables near a furnace
The storage of flammables near a furnace
All of the following are true, except: A Under the supplemental tail, the insured must request coverage within 60 days after the end of the policy term B Under the mini tail, the insurer must be notified of a claim within 60 days after the end of the policy period C The supplemental tail requires an annual premium to be paid in advance D The extended reporting period does not increase the policy limits
The supplemental tail requires an annual premium to be paid in advance
The following are all essential in determining the tort of negligence, except: A There must be the commission of a criminal act or wrong B There was a failure to act in a reasonable and prudent manner C There has been injury or damage D The proximate cause was negligence
There must be the commission of a criminal act or wrong
All of the following are true of a Homeowners Policy, except: A Under Coverage F, a covered accident must occur during the policy period B Under Coverage F, coverage applies to persons that are on the insured location with permission C Under Coverage F, coverage does not apply to injuries of the named insured or any regular resident of the insured's household D Under Coverage F, payments apply to necessary medical expenses incurred within a maximum of 1 year
Under Coverage F, payments apply to necessary medical expenses incurred within a maximum of 1 year
Which insurance company department is responsible for risk selection: A Underwriting B Actuarial C Claims D Sales
Underwriting
All of the following are major advantages of a Businessowners Policy, except: A Extra expense coverage for 12 months B Unlimited business income for up to 6 months C Automatic peak season coverage D Replacement cost coverage automatically provided
Unlimited business income for up to 6 months
Under medical benefits for Workers' Compensation, California provides what type of medical coverage for injuries that occur while the employee is on the job? A Full medical benefits, up to $500,000 B Unlimited coverage on an 80/20 percent coinsurance basis for the first $10,000 of benefits C Unlimited coverage after the application of a small deductible, which varies from state to state D Unlimited coverage
Unlimited coverage
Under medical benefits for Workers' Compensation, most states provide what type of coverage for injuries that occur while the employee is on the job? A Unlimited coverage after the application of a small deductible, which varies from state to state B Full medical benefits, up to $500,000 C Unlimited coverage D Unlimited coverage on an 80/20 percent coinsurance basis for the first $10,000 of benefits
Unlimited coverage
Hull Coverage and Cargo Coverage under Ocean Marine Insurance is generally written on which of the following basis? A Replacement Cost B Actual Cash Value C Valued basis D Market Value
Valued basis
Under the Homeowners Policy, Medical Payments coverage will apply to expenses that are incurred within what length of time? A 3 years B At the time of the accident C 4 years D 1 year
3 years
All of the following are true, except: A A representation is a statement made in the application by the insured, which is guaranteed B Reserves are accounting measurements of insurer's future obligations to the policyholder C Proximate cause is the immediate or actual cause of a loss D Under a unilateral contract, only one party is legally bound to future performance
A representation is a statement made in the application by the insured, which is guaranteed
For insurance purposes, which of the following is the best definition of an accident? A A sudden, unforeseen, and unintended event that causes a loss B Damage caused intentionally by persons unknown C Damage caused by an inherent flaw in the property
A sudden, unforeseen, and unintended event that causes a loss
A contract whereby only one party is bound to future performance, is said to be: A A unilateral contract B An aleatory contract C A bilateral contract D A conditional contract
A unilateral contract
All of the following statements regarding a warranty are correct, except: A An implied warranty is stipulated in the contract and is considered a fact B A warranty may relate to past, present, or future C A warranty is either expressed or implied D Failure to comply with a warranty breaches a contract
An implied warranty is stipulated in the contract and is considered a fact
Common carriers need to purchase Common Carrier Cargo Liability: A In case goods improperly packaged by the shipper are damaged in shipment B In case of an inherent flaw in property that manifests itself while in the shipper's possession C Because they can be held legally liable for loss or damage to property in their custody D In case goods in their custody are damaged by an act of God
Because they can be held legally liable for loss or damage to property in their custody
Which of the following is included under Coverage C medical expense of the Commercial General Liability policy? A Bodily injury to any insured B Bodily injury of any customer C Bodily injury to any person on that part of the premises that the insured owns or rents and that the person normally occupies D Bodily injury to a person hired to do work
Bodily injury of any customer
A Property & Casualty Broker-Agent also licensed as a Life-Only or Accident & Health agent must do all of the following prior to renewing his or her license, except: A Complete all mandatory continuing education required for any line of licensing, regardless of the total hours of CE already credited toward renewal B Complete 3 hours of ethics continuing education C Complete 24 hours of continuing education in any line of licensing D Complete 24 hours of continuing education in each line of licensing
Complete 24 hours of continuing education in each line of licensing
All of the following statements are true, except: A Contents are covered under a Flood Policy if located within 100 feet of the building B The federal government is the reinsurer C Under a Flood Policy, protection is provided to property that is on normally dry land D In order to qualify for a federal-guaranteed mortgage loan, the property must be covered by Flood Insurance if located in a designated flood area
Contents are covered under a Flood Policy if located within 100 feet of the building
All of the following are methods of managing risk, except: A Retaining the risk B Contracting the risk C Transferring the risk D Avoiding the risk
Contracting the risk
Which of the following statements about the National Flood Insurance Program is false? A Mudflow is covered; mudslide is not covered B Coverage for property moved to avoid a loss is insured for 45 days at the new location C Coverage becomes effective after a 24-hour waiting period D The deductible applies separately to the building and contents
Coverage becomes effective after a 24-hour waiting period
All of the following are true of the California Fair Plan, except: A The Fair Plan must maintain an 800-telephone number B Coverage is available for auto and farm risks C The application must be signed by both the applicant and the producer D Any person who has been unable to obtain basic property insurance is eligible to apply
Coverage is available for auto and farm risks
All of the following are true of Earthquake Coverage in California, except: A For those who desire earthquake insurance, policies may only be purchased through the California Earthquake Authority B All California Earthquake Authority policies are marketed and serviced by a participating insurer who is compensated for the claims and services they provide on behalf of the authority C The California Earthquake Authority has no authority to sell anything other than earthquake coverage D No residential insurance policy may be issued or delivered unless the insured is offered coverage for loss or damage caused by the peril of earthquake
For those who desire earthquake insurance, policies may only be purchased through the California Earthquake Authority
Which of the following is true concerning medical payments as they relate to Products Liability Coverage? A They are made regardless of fault B Medical payments to others is not included because the coverage of Products Liability does not commence until care, custody and control of the product has been relinquished to the purchaser C Payment of medical expenses under Medical Payments is not an admission of fault D All medical expenses incurred within one year of the date of the accident are covered
Medical payments to others is not included because the coverage of Products Liability does not commence until care, custody and control of the product has been relinquished to the purchaser
Which of the following is not true about a Reciprocal Insurance Company? A Each subscriber assumes a share of the risk of all other subscribers B It is managed by an attorney-in-fact C Members are grouped into syndicates D If funds are insufficient to pay claims, the subscribers are assessed for additional premium
Members are grouped into syndicates
Which of the following is an example of a common carrier's legal liability? A Neglect of an employee B Neglect of a shipper C Inherent vice D Exercise of a public authority
Neglect of an employee
In addition to the named insured in a property policy, coverage is automatically provided for: A Persons who purchase the insured's property B Persons who are legal representatives of the insured C The insured's employer D Persons who appraise the property
Persons who are legal representatives of the insured
Personal property of others is covered if it is within how many feet of the premises? A 50 B 10 C 100 D 250
100
Motels may not be written under the Businessowners Policy if they exceed: A 2 stories B 100,000 square feet C 3 stories D 25,000 square feet
3 stories
The Code requires insurers to notify the Fraud Division within how many days of uncovering an incident of actual or suspected fraud? A 20 B 30 C 10 D 60
60
Failure of an admitted insurer to accept an application or cancel insurance under conditions less favorable to the insured, except for reasons that apply to all persons of the same marital status, gender, race, color, religion, national origin or sexual orientation is considered: A A method of protecting against adverse selection B A felony C A discriminatory practice D Common practice
A discriminatory practice
Which of the following is true regarding liability insurance? A A liability policy provides coverage for all torts B The liability policy provides coverage for all acts of wrongdoing C A liability policy provides coverage for criminal acts D A liability policy provides coverage for unintentional torts
A liability policy provides coverage for unintentional torts
The taking of property from inside the premises by a person unlawfully entering or leaving the premises as evidenced by visible signs of forcible entry or exit, is covered under which of the following Crime Coverages? A Extortion B Robbery C Theft D Burglary
Burglary
Under the Dwelling policies, which is correct regarding coverage of trees, shrubs or plants? A Damage by wind, hail, weight of ice, snow or sleet is not covered B Theft of shrubs and plants is covered C All vehicle damage to trees, shrubs, or plants is covered D The Limit of Liability is $1,000 for any tree, shrub, or plant
Damage by wind, hail, weight of ice, snow or sleet is not covered
Property Damage in Liability Insurance includes: A Damage to the insured's products arising out of the products B Damage to tangible property, including loss of use of that property caused by the insured's negligence C Damage to property owned by, or leased to, the insured D Damage to property of others in the insured's care, custody, or control
Damage to tangible property, including loss of use of that property caused by the insured's negligence
Which statement is false regarding a Homeowners Policy? A Damages to Property of Others excludes intentional damage by a 12-year-old B First aid expenses are unlimited C The insurer will reimburse the insured for time off work to testify at a trial covered by the policy D Payments under Damage to Property of Others are limited to $1,000
Damages to Property of Others excludes intentional damage by a 12-year-old
In a presentation to the local life underwriter association, Randy wrongly stated that ABC insurer is in financial difficulty. Randy may be guilty of: A False advertising B Twisting C Coercion D Defamation
Defamation
Generally, a licensed person who maintains claims files as required by law must do all of the following, except: A Discard by cross-cut shredding or incineration all claim files which are more than 3 years old B Keep copies of all documents, notes and work papers, and correspondence reasonably relevant to the claim C Make required files available for inspection by the Commissioner at all times D Document the date a claim was received, and the date a claim was paid, denied, or closed without payment.
Discard by cross-cut shredding or incineration all claim files which are more than 3 years old
All of the following are true, except: A Dram Shop Liability protects against legal liability that may be imposed on a seller of a packaged liquor store B The insurer may examine the insured's books anytime during the policy period, or within 3 years after the policy ends C Contingent Liability Policies are also called Owners and Contractors Protective Liability D The insurer's written consent is required for any transfer of rights and duties to another person
Dram Shop Liability protects against legal liability that may be imposed on a seller of a packaged liquor store
Which crime coverage form does Tom need in the event a couple of his bank employees plan and carry out the theft of money from a bank cash drawer? A Theft of Money and Securities B Theft Collusion by Employees C Employee Theft D Robbery or Safe Burglary
Employee Theft
The definition of Business Personal Property under the Building and Personal Property Coverage Form includes: A Stock on consignment held for sale by the insured B Business Personal Property of others rented to, or leased by, the insured C Furniture, fixtures, machinery and equipment, stock held for sale (including raw material) and other personal property owned by the insured D Accounts, bills, and currency of others on the premises in the insured's trust
Furniture, fixtures, machinery and equipment, stock held for sale (including raw material) and other personal property owned by the insured
The Collision or Running Down Clause in Ocean Marine Insurance covers: A It covers damage to the insured vessel caused by running aground B It covers collision damage to the insured vessel when it collides with another vessel C It covers collision damage to the insured vessel when it collides with a pier or fixed object D It covers collision damage to another vessel
It covers collision damage to another vessel
All of the following are true of negligence, except: A It does not require a duty to be owed B It does not include breach of contract C It is a type of tort D It is the failure to use ordinary care
It does not require a duty to be owed
All of the following are true of insurance, except: A It protects against uncertainty B It transfers risk C It eliminates risk D It is a means of sharing loss
It eliminates risk
Which of the following is true regarding the Yacht Policy? A The policy contains no navigational limits B The policy provides coverage only for damage to the yacht itself C Liability related exposure must be covered under a separate policy D It is an Ocean Marine Form and provides both property and liability coverage
It is an Ocean Marine Form and provides both property and liability coverage
Which of the following is not a function of insurance? A It is designed to be used to protect the insured from dishonest acts B It transfers risk from the insured to the insurer C It protects against uncertainty and reduces anxiety D It is the substitution of a small certain expense for a large uncertain loss
It is designed to be used to protect the insured from dishonest acts
Any notice required to be given to an insured by the insurer may be mailed, postage paid, and addressed to the policyowner, insured, claimant, or beneficiary to be notified at the: A Home address B Business address C Agent's business office address D Last known address of record
Last known address of record
All of the following are true of Section II of a Homeowners Policy, except: A Loss assessment charges in any amount against the insured by a property owner's association are excluded B Medical payments include guests C First aid expenses are automatically included D Medical payments coverage would apply if the family dog were to bite someone 3 blocks from home
Loss assessment charges in any amount against the insured by a property owner's association are excluded
Hull insurance on an ocean marine policy covers the vessel for which of the following? A Cargo damage B Liability C Physical damage D Seaworthiness
Physical damage
An agent would be guilty of 'pretexting' or conducting a 'pretext interview' in which of the following situations? A Pretends to be someone or something other than an insurance producer in order to obtain personal non-public information about someone in connection with an insurance transaction B Pretending to be an employee of a local utility company when attempting to obtain information in the investigation of an insurance claim C Advises a client to lapse, forfeit, or surrender any insurance contract on the basis of misrepresentation or fraud D Sends unsolicited text messages to persons who are not existing client
Pretends to be someone or something other than an insurance producer in order to obtain personal non-public information about someone in connection with an insurance transaction
Under a personal auto policy, liability for bodily injury resulting from the insured's use of a borrowed vehicle is: A Not covered because of the Care, Custody and Control Clause B Shared pro rata between the insured's policy and the policy on the vehicle C Provided on a primary basis D Provided on an excess basis
Provided on an excess basis
Which of the following definitions pertain to the taking of property from the care and custody of a person by one who has caused or threatened bodily harm to that person? A Theft B Burglary C Robbery D Assault
Robbery
The Insurance Commissioner has all of the following powers, except: A Sentencing a person to state prison for conviction of insurance fraud B Suspending or revoking the license of a producer convicted of insurance fraud C Assess civil penalties for failure of an insurance company to provide requested information concerning insurance fraud D Investigate suspected insurance fraud
Sentencing a person to state prison for conviction of insurance fraud
Kevin owns several buildings at several locations. He has them insured each on a separate policy and with separate amounts. Kevin has them insured on which of the following methods of writing insurance? A Scheduled B Agreed Value C Blanket D Specific
Specific
Under Commercial Property Coverage Part, the Basic Causes of Loss Form covers all of the following, except: A Steam boiler explosion B Sinkhole collapse C Volcanic action D Sprinkler leakage
Steam boiler explosion
A natural and continuous sequence, unbroken by any efficient intervening cause that produces injury, and without which the result would not have occurred is known as: A Efficient Cause B Indirect Cause C The Proximate Cause D Incidental Cause
The Proximate Cause
An agent's appointment remains in effect until any of the following takes place, except: A Cancellation B Filing of a notice of termination by the appointing insurer C Expiration of the license D The agent attains the age of 65
The agent attains the age of 65
Which statement is correct concerning the Optional Coverage - Inflation Guard under the Building and Personal Property Coverage Form? A The percentage of increase applies only to the renewal policy B The annual percentage of increase is applied to the policy at the rate of 1/365 each year C The percentage of increase is applied to the policy pro rata, on a monthly basis D The percentage of increase is applied to the policy pro rata, on a weekly basis
The annual percentage of increase is applied to the policy at the rate of 1/365 each year
The retroactive date is: A The date the grace period begins for late premium payments B The date of policy inception C The earliest date after which a covered occurrence of injury or damage can take place D The date on which the extended reporting period begins
The earliest date after which a covered occurrence of injury or damage can take place
Which of the following is true concerning the Home Day Care Coverage Endorsement to the Homeowners Policy? A It provides Commercial General Liability coverage for the day care operation B The endorsement covers injury to an employee, as well as attendees, arising out of day care operations C The endorsement covers injury to attendees while loading or unloading them from draft or saddle animals D The endorsement extends Section II coverages to the insured's home day care business
The endorsement extends Section II coverages to the insured's home day care business
Under the Dwelling Policy coverage extension of Debris Removal, which of the following is correct? A The limit for Debris Removal is 5% of the Coverage A Limit of Insurance B The extension does not increase the amount of insurance under the policy C The limit for Debris Removal is 10% of the Coverage A Limit of Insurance D The limit for Debris Removal is an additional amount of insurance
The extension does not increase the amount of insurance under the policy
Which of the following would not reduce the General Aggregate Limit under a Commercial General Liability Coverage Form? A The insurer pays a claimant injured by a product made by the insured B A small fire in the insured's office causes damage to the leased premises C The insured misappropriates the advertising slogan of a competitor D A customer is injured on premises and the insured calls an ambulance to take the injured party to the hospital for treatment
The insurer pays a claimant injured by a product made by the insured
Which of the following best describes the concealment and fraud condition in a property insurance policy? A Making a false statement accidentally does not constitute fraud B The policy will be voided if there is material concealment, misrepresentation, or fraud on the insured's part C The insured must cooperate with the company in the investigation of a claim D The company will not grant any coverage that benefits a bailee
The policy will be voided if there is material concealment, misrepresentation, or fraud on the insured's part
All of the following are true of the Law of Large Numbers, except: A There is a decreased degree of error in predicting losses of large groups B It relates to the determination of the probability of loss C The prediction of individual losses is based upon past experience D The prediction of group loss is based upon past experience
The prediction of individual losses is based upon past experience
All of the following are true of Uninsured Motorists Property Damage Coverage in California, except: A If a vehicle is not insured for collision losses, the coverage pays up to $3,500 of the actual cash value of the damage to the insured vehicle B The purchase of the coverage is required for motorists to fulfill their financial responsibility requirements in California C Auto insurers are required to offer the coverage D If a vehicle is insured for collision losses, the coverage is a waiver of the collision deductible
The purchase of the coverage is required for motorists to fulfill their financial responsibility requirements in California
Which of the following is not a duty of the California Insurance Commissioner? A To prosecute violators of insurance law B To issue Certificates of Authority to companies that meet the requirements of state law C To subpoena witnesses/documents for testimony on any insurance-related matter D To make sure that insurer rates are adequate, not excessive, or unfairly discriminatory
To prosecute violators of insurance law
Temporary authority can be granted to an unlicensed person to handle the affairs of an agent on active military service, to do all of the following, except: A Mail out any claim payments due to clients B Transmit premiums to the insurer which are sent to the agent's office C Provide administrative assistance to existing clients D Transact new business in that agent's name
Transact new business in that agent's name
All of the following are true of dwelling policies, except: A Mobile homes are eligible if written on a DP-1 B Trees, shrubs and plants are covered for up to $1,000 total C Incidental business occupancies are permitted, but they must provide service rather than sales D Farm dwellings are not eligible
Trees, shrubs and plants are covered for up to $1,000 total
Which of the following is designed for a firm that transports goods of others, rather than its own goods? A Specified Peril Policy B Non-Owned Good Policy C Truckers Coverage Form D Truckers Liability Coverage
Truckers Coverage Form
Which of the following risks may not be insured by a non-admitted company? A Marine builders risk B International maritime transportation C Workers' Compensation D Property and liability insurance for aircraft or spacecraft
Workers' Compensation
The territory of coverage for a personal effects floater is: A Worldwide, including the insured's home B Worldwide, excluding the insured's home C The U.S., Canada, and Mexico D The insured's home, only
Worldwide, excluding the insured's home
