Exam FX
Engaging in any unfair trade practices will result in what amount of fine?
$1,000 each violation; 10,000$ for all
What is the maximum penalty for a habitual willful noncompliance with the fair credit reporting act
$2,500
A $100,000 house insured on a policy with an 80% coinsurance requirement has a fire that cost 40,000 of damage. The owner has a policy with 60,000 coverage. How much can the owner click for his loss
$30,000
If the insurer needs more than 30 calendar days from the date, a proof of losses received to determine whether to accept or deny the claim the insurer must notify the claimant of the delay in writing within how many days
15 working days
An insured was involved in a hit-and-run accident within what time period Must the insured report the accident to the police
24 hours
The minimum limits of liability available in the West Virginia auto insurance plan are
25/50/25
An insured with a homeowners policy has removed property from the insured location to protect it from walls that could be caused by a covered peril. The removal coverage applies for.
30 days
How long is a waiting period upon purchase of flood covers through NFIP
30 days
Under business owners, policy section one, if an insurer wants to cancel policy for any reason, except nonpayment of the premium how many days before the effective cancellation date must the insured notify the mortgage holder?
30 days
How many days following a hearing does the commissioner have to enter in order based on conclusions researched during the hearing
45
After the commissioner receives a written demand for a hearing from by a person, aggrieved by any act or failure to act, a hearing must be held within
45 days
An insured has an auto liability policy with limited 25/50/25. She's involved in an accident caused by her negligence and is held legally liable for bodily injuries of three persons in the other car as follows.
50,000
Candidates for individual insurance producer licenses are required to submit, fingerprints for criminal history and federal background checks, how long are the fingerprint results valid?
60 days
An insured owns a building that is valued at 400,000. To comply with the 80% coinsurance provision of his insurance policy, how much should he ensure the property for
80% of the property's replacement cost or more
Under what conditions can an insurer cancel an existing automobile policy
A late payment of premium on policy that has been enforced for five years
A tornado that destroys property would be an example of which of the following
A peril
What is a material misrepresentation?
A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company
Which of the following risks would not be eligible for coverage under a homeowners policy?
An applicant who owns and lives on a commercial farm
Which of the following describes contributory negligence
Any degree of negligence by the injured party may bar recovery
An equipment breakdown coverage, all accidents would be considered a single accident if they occur
At a single location at the same time, and from the same cause
Insurable interest in property insurance must exist
At the time of loss
Which of the following is the most precise synonym for an admitted insurer
Authorized
In West Virginia, a producer license expires based on
Birth month
The activities, operations, financial condition and affairs of all people transacting insurance in West Virginia, may be examined
By the commissioner
Which of the following must insurer obtain in order to transact insurance within a given state
Certificate of authority
The insurance code, defines all the following as transacting insurance, and as such, requiring a valid license, issued by the commissioner, except
Coercing
When doing business in this state and insurance company that is formed under the laws of another state is known as which type of insurer
Foreign
A mobile homeowners policy is structured, the same as
Homeowners policy
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. The insurer is hoping that this advertising will help to eliminate the competition and therefore create a monopoly. Which of the following best describes this act?
Illegal.
Insurers are limited in their ability to non-renew property insurance policies that have been
In effect for at least 4 years
West Virginia law requires written notice of cancellation of property policies. The notice must comply with all of the following, except.
Include a full refund
Which insurance principle states, that if a policy allows for a greater compensation than the financial loss incurred, the insured may only receive benefits for the amount loss?
Indemnity
To purchase insurance, the policy owner must have financial interest in the property being insured this is known as
Insurable Interest
Which of the following coverages in dwelling and homeowners policies is for indirect losses
Loss of use
A non-admitted insurer who provides unique insurance coverage that is not available from an admitted insurance is called
Surplus Lines Insurer
Robbery is
Taking someone's property by threat or force is
Who issues licenses for insurer who want to conduct the business of insurance in this estate?
The West Virginia insurance commissioner
Under a dwelling policy, which of the following is not a factor in determining a loss
The amount negotiated by the insured
An insurer wasn't able to pay a claim within 90 days of the claimants filing of the proof of loss. Which of the following is true regarding the Mountain insure will be obligated to pay.
The amount of the claim, interest at the current prime rate, plus1 percent
An agent has quoted an auto insurance policy for a new client. The client has agreed to buy the policy, effective today, and the agent placed coverage enforce immediately. Which of the following statements is not true concerning the length of coverage, provided by the binder.
The binder will cease 30 days from the date of application if no other action occurs
Peril is most easily defined as
The cause of loss insured against
All of the following statements concerning coinsurance are true, except?
The coinsurance formula will also be applied to total losses.
Application, forms, group, insurance, certificate, forms, and application, forms or riders must be approved by
The commissioner
Which of the following best describes negligence
The failure to use reasonable and prudent care
Wind damage to a tenant occupied historic warehouse insured under the fair plan caused $275,000 worth of damage. The policyholder will receive.
The full amount minus any deductible
Which of the following is most likely to occur if it is determined by the audit that the deposit premium was too high?
The insured will receive a return premium
A producer retired two years ago, commissions on a sale that he made three years ago could be issued, which of the following are true
The producer will still be able to collect commission on this sale
What is the purpose of the West Virginia insurance guaranty association?
To pay benefits to insureds whose insurers have become insolvent
An insured relocated to another state for work. However, she still owns an insure a house in this state, but has had no one living in it for three months. She is also storing some furniture and clothes in the house. From an insurance standpoint the insurance house is considered.
Unoccupied
An insured, nine-year-old son, threw a ball, accidentally breaking a neighbors plate, glass window. The insured was filmed, legally liable for the cost of replacing the window. This is an example of.
Vicarious liability
Which of the following is a statutory defense?
comparative negligence
An insured business is damaged, because of a fire, and he is forced to close the business temporarily for repairs. As a result, the insured lost income. What type of loss is this?
consequential
When an insured makes truthful statements on the application for insurance, and pays the required premium, it is known as which of the following
consideration
In business owners policies, which of the following additional coverages, will require a deductible
debris removal
Losses caused by continuous or repeated exposure to conditions resulting in injury persons or damage to property that is neither intended nor expected is the definition of which of the following terms?
occurrence
A tornado that destroys property would be an example of which of the following?
peril
What are the two types of compensatory damages?
special and general
A building is insured, but no one has lived or worked in it for 10 years the building is completely empty of any furniture or personal belongings. From an insurance standpoint, the building is considered.
vacant
An insured is driving her car through a residential area when she loses control and crashes into the neighbors front porch. The neighborhood is sitting on the porch is injured. The insurer liability policy has a limit of 500,000. The amount of plastic, the total of damages for any bottling injury and property damage resulting from one accident which type of liability does the insured have
Combined single
The legal theory used to determine responsibility and damages by considering the negligence of every party involved in an accident is referred to as
Comparative negligence
The part of the policy that sets forth the rules of conduct, duties, and obligations of the party is called
Conditions
An individuals construction company leaves, mobile equipment and construction machinery on the job site until the project is completed. What could this individual use to insure it
Contractors equipment floater
An insured house is damaged by fire that is an inhabitable. As a result, the insured has to rent an apartment until repairs are made. A dwelling insurance policy will pay for the expenses of renting the apartment. Which type of broad or special form coverage does the insured have
Coverage E
Which of the following is not true about earthquake coverage?
Coverage is commonly provided through a federally-funded program.
What is mine subsidence?
Damage to a structure caused by the collapse of an underground coal mine
An insured is applying for a casualty insurance policy. One of the conditions of the policy allows the insurance company to inspect the insured book at the end of the policy term to make sure sufficient premium has been collected for the exposure. She plans to ensure. Which condition is part of the insured policy
Deposit premium audit
A beauty parlor burns to the ground. What type of loss is this to the owner
Direct
Which of the following best describes an insurance company that has been formed under the laws of this state?
Domestic
Under the examinations of book and records condition, the insurance company has the right to examine and and audit. The insured books and records related to the policy.
During the policy period, and for up to three years after the termination of the policy
What is the purpose of the coinsurance clause found in property insurance policies?
Encourage the insured to insure the property closer to its full value
In West Virginia, producers license expire
Every 2 years
Which of the following is required to determine an applicants eligibility for becoming glossed as an insurance producer in this state
Fingerprints
The major portion of the premium for an equipment breakdown policy pays
For inspections and examinations
The primary purpose of a surety bond is to
Make sure obligations are fulfilled
The insured house is located 1 mile from the country, newest landfill and across the road from the entrance of the rock quarry. It would cost $150,000 to rebuild the house if something happened to it, but when the insured tried to sell it, the best offer he received was $80,000. The insurance company will ensure the house for only $80,000. What method of evaluation is used to ensure this property.
Market Value
An insurer is required to remit a renewal appointment fee, no later than midnight on
May 31
The physicians and surgeons equipment floater in not intended for which of the following
Medical supplies located in a hospital
A producer is selling an insurance policy, and as an inducement shows the client a projection based upon dividends paid on a similar policy. This is called.
Misrepresentation
Which of the following will be covered by the contractors equipment floater in an unfiled inland marine insurance
Mobile equipment during transportation to and from the job site
A business using its own trucks to move its own cargo would ensure the cargo using
Motor truck cargo - owner forms
A producer may apply for licenses for how many solicitors
No more than 2
Erroneous publishing, copied all the material from Angels Inc. book. The only changes made by Erroneous were to rename the title in chapters, put a different cover on it, industry it as its own. Angels incorporated files, a claim against erroneous and six damages. Will commercial general liability policy cover the claim
No, because the claim results from copyright infringement, and it is not an advertisement
On a participating insurance policy, issued by mutual insurance company, dividends, paid to the policyholder are
Not taxable since the IRS treats them as a return of a portion of the premium paid
What is the major difference between a stock company and a mutual company?
Ownership
An insured has liability policy that says the amount for all claims that raise from a single accident at $50,000. Which type of limit of liability does the insured policy have?
Per occurrence
Which of the following limits, shown in the declarations of a policy, applies to medical expenses?
Per person
Which of the following floaters will be used to ensure personal effects, carried or worn by the insured while traveling
Personal effects floater
All of the following factors may be used in determining insurable interest, except
Potential for financial gain
An individual appointed by an insurance company to solicit, negotiate, or effect insurance contracts, based on its behalf, is a
Producer
An agent offers his clients free tickets to a sporting event, and exchange for the purchase of an insurance policy. This agent is guilty of.
Rebating
Which method of loss valuation is contrary to the basic concept of indemnity?
Replacement cost
Which of the following is used in the formula for calculating the actual cash value of a property
Replacement cost
When an insurer non-renews an auto policy in West Virginia, the insurer must do which of the following
Send the insured an advanced written notice of the non-renewal, including the reasons for the nonrenewal and the potential eligibility for assigned risk coverage
An insured owns several buildings, each building has a different location and insured on a separate policy. What type of coverage does the insured have?
Specific
Events in which a person has both the chance of winning or losing our classified as
Speculative risk
The transfer of an insured right to seek damages from my negligent party to the insurer, is found in which of the following
Subrogation