Exam FX Guaranteed Exam - Kansas
An insured has a commercial blanket bond in the amount of $25,000. Three identifiable employees steal $10,000 each in a single loss. How much will the bond pay? A - $25,000 B - $30,000 C - $75,000 D - $10,000
A - $25,000
Business auto coverage is applied only to those autos that are identified as covered autos in the declarations by entry of the appropriate numerical symbol. Which symbol affords the broadest coverage? A- 1 B- 2 C- 7 D- 9
A - 1
What guarantees that the information explained in the insurance contract is true? A - a warranty B - a representation C - utmost good faith D - a binder
A - a warranty
If an insurer declares that the value of a loss is $5000, but the insured is confident that the amount of loss is substantially different, which of the following would most likely be used to settle the dispute? A - arbitration B - small claims court C - umpire hearing D - third-party settlement
A - arbitration
In order to receive transportation expenses under the personal auto policy following damage to your auto caused by collision, you must have A - collision coverage B - uninsured motorist property damage C - supplementary payments D - other than collision coverage
A - collision coverage
And insured's home catches fire. As a result, the insurance family must stay in a motel until the home is repaired. The cost of the motel stay would be considered a A - consequential loss B - result in loss C - direct loss D - negligent loss
A - consequential loss
Which of the following exposures is not covered under the garage liability coverage form? A - contractual liability B - premises in operations liability C - products and completed operations liability D - auto liability
A - contractual liability
Other than collision would cover financial losses due to A - damage to an insurance card caused by wind or hail B - damage to an insured's neighbor mailbox that was caused by the insurance pick up C - damage to an insurance card in an accident for which the insured was found at fault D - legal action brought against an insured for an accident
A - damage to an insurance card caused by wind or hail
Which of the following would not generally be included in the supplementary payments portion of a liability policy? A - damage to property owned by the insured B - cost the first aid to others at the time of an accident C - expenses the insured and curves, as part of defense, at the companies request D - loss of earnings due to the accident
A - damage to property owned by the insured
Which of the following is not true regarding the automatic increase in insurance endorsement in dwelling policies? A - it does not require additional premium B - it increases the amount of coverage by annual percentage C - it is optional D - it provides protection from inflation
A - it does not require additional premium
Which of the following elements best describes insurance written in support of public policy? A - legal purpose B - consideration C - offer an acceptance D - competent parties
A - legal purpose
And insured was involved in an accident that was caused by a tire blowing out. The insured was severely injured and incurred medical expenses of $100,000. The insured brought a recovery action against the manufacturers of the auto in the tires. The court held that the tire was the cause of the accident. Who is required to pay for this loss? A - manufacture of the tire B - both manufacturers would share the loss C - neither manufacture would have to pay because of the buyer beware doctrine D - manufacturer of the auto
A - manufacture of the tire
The other states insurance section of your workers compensation policy provides coverage A - only for those other states listed in the policy B - for new operations in other states if reported to the insured within 60 days C - only for incidental operations in other states D - for any other state the insured may have operations in
A - only for those other states listed in the policy
According to the section 1 - property of the business owners policy definitions, what is the term for insurance business activities occurring at the described premises? A - operations B - covered territory C - enterprise D - controlled business
A - operations
Worker's Compensation reading has developed by applying a reading bureau job classification rate to which of the following? A - payroll B - non-cash compensation C - minimum wage D- job title
A - payroll
Which of the following would not be covered under the directors and officers liability coverage? A - reimbursement for fines and penalties B - wrongful acts while directors and officers are acting in an official capacity C - neglect in breach of duty D - misstatements made by the directors and officers
A - reimbursement for fines and penalties
For an additional premium, the extended coverage is written on the basic form dwelling policy would cover which of the following? A - riot B - vandalism C - Glass breakage D - fire
A - riot
Shut the following is false concerning liability coverage of a business auto policy? A - the company will reimburse the insured for all loss of earnings B- the company will pay the premium on any appeal bond C - the company will pay any interest accruing between time of judgment and payment D- the company will defend any suit alleging bodily injury (BI) or property damage (PD) covered by the policy
A - the company will reimburse the insured for all loss of earnings
What types of injuries could incur additional penalties and/or increase benefits paid by the employer? A - the employers willful failure to provide required safety goggles B - loss of a limb while following safety procedures C - an injury that occurred while on a dangerous job site D - a fall that is the result of a slippery workplace floor
A - the employers willful failure to provide required safety goggles
If an applicant submits the initial premium with an application, which action constitutes acceptance? A - the underwriters approved the application B - the applicant submits a statement of good health C - the producer delivers the policy D - the insurance company received the application and initial premium
A - the underwriters approved the application
If a car stolen and left in a snowbank in the radiator freezes and does a lot of damage, is the damage covered by the auto policy? A - yes, freezing exclusion is removed if the car is stolen B - yes, there is no exclusion for freezing C - no, freezing is never covered D - no, theft is never covered
A - yes, freezing exclusion is removed if the car is stolen
A liability policy that provides increased limits and expanded coverage over underlying casualty coverages is called A- Umbrella Liability B- personal liability C- pro rata liability D- professional liability
A- Umbrella liability
Statistical probabilities of loss for particular class of insurance is best predicted when the insured group is A- larger B - diverse C - older D - smaller
A- larger
The personal property off-premises extension of dwelling forms provides limits of coverage up to A-10% of coverage see anywhere in the world B - 10% of coverage a anywhere in the US or Canada C - 10% of coverage anywhere in the world D - 10% of coverage see anywhere in the US or Canada
A-10% of coverage see anywhere in the world
A trucking company has a $1 million umbrella policy in place. The business owner agrees to maintain a 200/500/100 limit on auto liability, and a personal liability of $400,000. After a car accident, the business suit. Injuries are awarded to a single injured party in the amount of $300,000. It turned out that the business actually carried only 100/250/50 auto liability limits. What is the total amount the umbrella policy will pay? A - $50,000 B - $100,000 C - $200,000 D - $300,000
B - $100,000
Insurance covered under a mobile home owners policy move their mobile home to prevent it from being damaged by a fire. What is the maximum amount of the policy will pay for this? A- $350 B- $500 C- $1,000 D- $5,000
B - $500
The last 72 hours, there were three instances of volcanic eruption that damage to property covered by a dwelling policy. How many deductibles with the insured have to pay before the policy covers damages by the irruption's? A - 0 B - 1 C - 2 D - 3
B - 1
Homeowners policies considered all of the following insured locations except A - the hotel ballroom rented by the insured for a family reunion B - a strawberry patch on by the insured C - land owned by the insured on with his new home is under construction D - an individual cemetery plot
B - a strawberry patch on by the insured
All of the following persons would be covered under the business auto policy except A - the owner from whom a trailer is borrowed and connected to an auto owned by the name insured B - an employee of the name and short operating an auto that is owned by the employee spouse C - a person operating an auto borrowed by the name insured with permission D - a person operating a covered auto with the permission of the insured
B - an employee of the name and short operating an auto that is owned by the employee spouse
An insured intentionally did not disclose a material fact on an application for insurance. This would be considered A- misrepresentation B - concealment C - coercion D - avoidance
B - concealment
Which of the following duties is not required of the insured in the event of a loss? A - immediately record the specifics of any claim and notify the insurer B - immediately notify the insurer and the insured has filed for bankruptcy C - authorize the insured to obtain records and assist the insurer and its investigation D - notify the insurer as soon as possible of the possibility of a claim
B - immediately notify the insurer and the insured has filed for bankruptcy
Restoring an insured financially after a claim is known as A- reasonable expectations B - indemnity C - adhesion D - Restoration
B - indemnity
What part of the insurance contract describes the covered perils and the nature of coverage on the contractual agreement between the insurer and the insured? A - conditions B - insuring agreement C - exclusions D - declarations
B - insuring agreement
An agreement that is enforceable by law is known as what kind of contract? A - Unilateral B - legal C- conditional D - adhesion
B - legal
Which of the following exposures is NOT covered under a homeowners policy? A - personal liability B - medical payments to an insured C - unscheduled personal property damage D - bodily injury to others
B - medical payments to an insured
A couple noticed yesterday that several items of personal property were missing from their home. There has not been any apparent robbery committed, the items are merely missing and have seemingly disappeared mysteriously. The couple will A - need to call the local authorities and report the mysterious disappearance of goods B - not be able to make it clean for the property since it is considered to have mysteriously disappeared C - not be able to file a report with authorities without proof of purchase and proof of loss of the kids in question D - need to report the loss to their insurance company so that a claim can be filed and paid
B - not be able to make it clean for the property since it is considered to have mysteriously disappeared
Which of the following documents notifies the insurer of events that may lead to a possible claim? A -appraisal statement B - notice of claim C - subrogative statement D - binder
B - notice of claim
In reference to insurable interest, which of the following is not an element of insurable risk? A - business B - personal C - blood D- financial
B - personal
The commercial general liability coverage part a dash bodily injury and property damage provides coverage for which of the following? A- machinery B - premises C - hired autos D - employers
B - premises
The insurance right to take possession of property after having paid for the loss is referred to as the right to A - replace B - salvage C - exchange D- retain
B - salvage
What information is found in the conditions part of an insurance policy? A- the amount of coverage provided by the policy B - the description of the duties and obligations of the insured C- the persons or risks not covered under the policy D - the identity of the name insured
B - the description of the duties and obligations of the insured
Which of the following statements is correct regarding the debris removal coverage under the business owners policy (BOP) ? A- the debris of covered property must be reported in breeding within 270 days of the loss B - the insurance limit of liability is 25% of the sum of the direct loss payment plus the deductible amount C - it pays for cleanup or removal of pollutants from land and water D - it pays for removal of the debris of the insurance damage to
B - the insurance limit of liability is 25% of the sum of the direct loss payment plus the deductible amount
If an insurance policy has the additional coverage provision how does it affect the policy premium? A-premium will be calculated on a pro rata basis based on the amount of additional coverage B - there is no additional premium C - premium will be recalculated when a specific loss covered by this provision occurs D - additional premium will be assessed
B - there is no additional premium
A structure may be eligible for coverage under the national flood insurance program if it meets all of the following requirements except A- is principally above ground B- is entirely overwater C - is not located within the coastal Berry or resource system D - has two solid walls in a roof
B- is entirely overwater
The business owners liability coverage form will cover medical expenses incurred and reported within the maximum time. After the accident? A-90 days B - 6 months C - 1 year D - 3 years
C - 1 year
As specified in the protective safeguard endorsement added to a business owners policy, if the automatic sprinkler system is shut down due to freezing conditions, the insured does not need to notify the insurance company as long as the system is restored within A - 12 hours B - 24 hours C - 48 hours D - 72 hours
C - 48 hours
A sworn statement must usually be furnished by the insured to an insured, and must include what information about the occurrence in the amount of indemnity claimed? A - extremity B - type and frequency C - Date and description D - category
C - Date and description
In a business owners policy (BOP), which of the following would be covered? A- pollution B- Mobile Equipement C- Medical Expenses D- Liquor Liability
C - Medical expenses
Which of the following is not found in the common policy declarations of a commercial package policy? A - insuring agreement B - schedule of coverage parts C - amount of premium for each coverage part D - policy number
C - amount of premium for each coverage part
Which of the following is indicated on a certificate of insurance (COI) ? A- cost an amount of insurance B - types of cost of insurance C - amounts and types of insurance D - terms and conditions of insurance
C - amounts and types of insurance
Under a commercial general liability policy, which of the following is not considered mobile equipment? A - the department of transportation resurfacing equipment B - the bulldozer used by an excavating company C - an automobile used as a company car by a real estate company D - a combined used on a farm
C - an automobile used as a company car by a real estate company
Which of the following components is not part of the policy structure? A- additional coverage B - definitions C - benefits D - declarations
C - benefits
Which of the following is not an indicator of a competent party? A - mental proficiency B - comprehension of contract C - business profession D - legal age
C - business profession
And insured believes that his insurance is not properly fulfilling its obligations regarding his policy. What section of the policy will give the insured more information about specific duties of the insurer? A -definitions B - obligations C - conditions D - endorsements
C - conditions
Which of the following elements of an insurance contract requires payment a premium A- competent parties B - offer and acceptance C - consideration D - legal purpose
C - consideration
Which of the following statements does not describe endorsements? A - endorsements are printed addenda to a policy B - endorsements must be signed by an executive officer C - endorsements may only add coverage to the policy not remove D - endorsements may be added during the policy
C - endorsements may only add coverage to the policy not remove
An insurer must be fair and underwriting and must put all covered losses of any insured. For the faithful execution of these duties, and it sure has the right to A- employ any and all resources available to avoid paying legitimate claims B - implement strict guidelines for the initiation of claims against our policies C - except the payment premiums for all policies currently in force D - she's flexible underwriting standards so as to exchange higher - risk insurance
C - except the payment premiums for all policies currently in force
An insured just purchased an auto policy for his new car he wants to understand what perils are not insured against. Which section of his policies should be insured check? A- declarations B - definitions C - exclusions D - insuring agreement
C - exclusions
Which of the following would be considered apparel? A - driving too fast for conditions B - playing golf at a thunderstorm C - fire D - smoking
C - fire
Which of the following is true regarding inspection and service as a common policy condition? A - it requires the insurer to conduct an inspection at least once during the policy period B - it does not allow findings to be used for establishing premium charges C - it grants the insurer the right to make inspections regarding insurance D- it does not allow the insurers to make recommendations
C - it grants the insurer the right to make inspections regarding insurance
When does a period of restoration for business income coverage and in a business owners policy? A-72 hours after the loss B - 30 days after the loss C - on the deed the property is repaired D - on the date the insurance approves the claim
C - on the deed the property is repaired
Defendant being released on a surety bail bond is the A - obligee B - insured C - principal D - surety
C - principal
Corporation is insured under a commercial general liability (CGL) policy and is named in a lawsuit to recover expenses for bodily injury and property damage is from a claim. The insurance company is obligated to provide coverage for all of the following named in the suit except A - stockholders B - employees of the corporation C - spouses of officers and stockholders D - officers of the corporation
C - spouses of officers and stockholders
Which of the following symbols in a business auto policy indicates that coverage for newly acquired vehicles applies if the insurer already covers all autos owned by the insured? A - symbol 1 B - symbol 2 C - symbol 7 D - symbol 19
C - symbol 7
An insured was having a new home built while digging the footings and foundation, the contractor struck a solid rock formation and found that was necessary to blast the formation in order to remove the rocks. The force of the blast broke several windows and some chinaware in a neighbors home several blocks away. Who pays for this damage? A- the insurance insurer, if the neighbor proves that the insured was negligent B - the insurance insurer, regardless of negligence C - the contractor D - that neighbors insurer
C - the contractor
If Mortgage is named in a mortgagee clause, how would a property policy pay claims and a home damaged in a fire? A - only the insured would receive loss reimbursement B - the mortgagee my only receive loss reimbursement if the mortgage he brings in action against the insured C - the mortgagee would receive loss reimbursement D - the insured is considered a Coke claimant and receives loss reimbursement from the mortgagee
C - the mortgagee would receive loss reimbursement
What does any act of stealing or removing property from its rightful owner called? A - loss B - repossession C - theft D- mysterious disappearance
C - theft
Supplementary payments under the personal auto policy include all of the following except: A - defense costs B - cost of appeal bond C - unlimited cost of bail bonds D - loss of earnings up to $200 per day
C - unlimited cost of bail bonds
What type of damages is intended as a form of punishment for negligent, willful, or outrageous intent? A- General B-Property C-Punitive D-Special
C-Punitive
How soon does a period of restoration for business income coverage begin after the direct loss? A - immediately B - 24 hours C - 48 hours D - 72 hours
D - 72 hours
A homeowner has misplaced some of her ensure personal property and has no idea what may have happened to it. Which HO policy form would cover such a loss? A - HO - 2 B - HO - 3 C- HO - 4 D - HO - 5
D - HO - 5
Which homeowners form insurance both buildings and personal property on up in peril basis? A - HO - 2 B - HO - 3 C Dash HO - 4 D - HO - 5
D - HO - 5
Which of the following could be insured with replacement cost coverage under the flood insurance program? A - garage B - in apartment building C - a shed D - a single-family home
D - a single-family home
Under the government contractor floater of an inland marine policy, coverage while the property is in transit between the insured and the subcontractor is usually written on which basis? A - unfiled B - named perils C Dash on named perils D - all risk
D - all risk
The second injury fund will pay the benefits in which of the following situations? A - the same injury occurs to a different person B - a person is injured twice in the same year, as long as neither injury affects the other injury C - Worker's Compensation benefits for an employee who has been injured while working for a previous employer in case injury would occur again D - an employee with a previous injury suffers a second injury that causes the disability to be more serious
D - an employee with a previous injury suffers a second injury that causes the disability to be more serious
Which of the following statements is correct regarding the replacement cost coverage under the business owners policy (BOP)? A - a coinsurance percentage varies from risked risk and will be found on the declarations page B - damage of property belonging to others is the indemnified on the same replacement cost basis C - there are no current insurance requirements for the BOP D - and 80% insurance to value requirement is in place
D - and 80% insurance to value requirement is in place
When an insured in her insurer could not agree on the amount of liability loss after her accident, the settlement was submitted to someone who's decision was then binding on both parties. What policy condition was applied? A - appraisal B - fair value C - third-party D - arbitration
D - arbitration
Which of the following conditions allows the insurer to examine the insurance records at the end of a policy term to make sure an adequate fee is being collected for exposure? A - insurable interest evaluation B - underwriting C - excess liability evaluation D - deposit premium audit
D - deposit premium audit
To determine the actual cash value of an insured property, must be deducted from the current replacement cost? A-agreed value B - stated value C - fair market value D - depreciated value
D - depreciated value
Loss valuation is best described as the process of A- providing equal benefits for a wide array of covered properties B - defining the replacement cost of property in relation to other insurance cost of the same type C - accepting or denying coverage based on historical evidence of an applicant property losses D - determining the premium charge in the amount of insurance required on a specific property
D - determining the premium charge in the amount of insurance required on a specific property
Which of the following is covered by auto other - than - collision (comprehensive) coverage? A - radar detector B - portable CD player C - awning attached to car for camping D - electric equipment required for the normal operation of the car
D - electric equipment required for the normal operation of the car
And executive is accused of sexual harassment. What type of coverage would respond? A- Worker's Compensation B - hiring practices liability C - commercial general liability (CGL) D - employment practices liability
D - employment practices liability
The federal act provided more favorable benefits for interstate railroad workers by allowing the injured worker to sue the employer for negligence is the A - US Longshore and Harbor Worker's Compensation act B - federal black lung compensation act C - Jones act D - federal employers liability act (FELA)
D - federal employers liability act (FELA)
To have insurable interest in the personal property covered by a property insurance policy, which of the following potential risks must policyowner face? A - physical injury B - property damage C - illness D - financial loss
D - financial loss
Which of the following describes an insurance responsibility for payment under a policy, as stated in the common policy provisions? A - consideration B - at least good faith C - premiums D - limits of liability
D - limits of liability
An insurance policy form that list specific covered peril provides A- Open peril coverage B - special peril coverage C - blanket coverage D - named peril coverage
D - named peril coverage
Prior to paying a claimant under a professional liability policy, the insured must A- terminate the insurance policy B - provide legal counsel to the claimant C - reaffirm the claimants insurance D - obtain the consent of the insured
D - obtain the consent of the insured
Which term includes losses caused by continuous or repeated exposure to conditions resulting in injury to persons or damage to property that is neither intended nor expected? A - accident B - incident C - additional coverage D - occurrence
D - occurrence
Which of the following would be covered under a building and personal property coverage form? A - building foundations B - personal property while airborne C - underground pipes D - outdoor sign
D - outdoor sign
What supplement in a liability policies touch the maximum amount that will be paid for all claims arising from a single accident? A - per person B - combine single C - aggregate D - per occurrence
D - per occurrence
the declaration section in a homeowners policy provides all the following information except A - basic underwriting information B - amount of deductible applied to a loss C - insured locations D - policy exclusions
D - policy exclusions
Which of the following is not available in a package policy? A - business auto liability B - fire legal liability C - medical payments D - professional liability
D - professional liability
The purpose of the Fair Credit Reporting Act is to A- protect the insurer from adverse selection B - ensure the consumers receive a copy of investigative consumer reports C - ensure coverage for all applicants D - protect consumers against the circulation of an accurate or obsolete personal or financial information
D - protect consumers against the circulation of an accurate or obsolete personal or financial information
When an insurer pays for the cost to exchange damaged property with new property of similar kind and quality, it is called a - actual cash value B - market value C - stated amount D - replacement cost
D - replacement cost
The taking of another's property by violence or the threat of violence is called A- burglary B - borrowing C - extortion D - robbery
D - robbery
What are the types of compensatory damages? A-positive and reward B - unique in general C- special and positive D - special and general
D - special and general
Due to appreciation, the amount of insurance on the business is less than 80% of its actual value on the date of loss. Which of the following is true? A - the policy pays nothing B - the full amount of the lost less any deductible is paid C - the policyholder is responsible for twice the amount of the deductible D - the coinsurance penalty applies
D - the coinsurance penalty applies
The owner of the rental dwelling, insured under a DP - 2, turns off the heat in the insured dwelling during the winter months because the dwelling is not occupied. The buildings water pipes freeze and break, causing damage. How are the policy react to this loss? A - the loss is covered B - the DP policy will pay for the pipes, but not the labor C - the DP policy will pay for the labor, but not the pipes D - the loss is excluded from coverage
D - the loss is excluded from coverage
A structure that is not inhabited by anyone and stores no property is considered A- unoccupied B - empty C - derelict D - vacant
D - vacant
Which of the following is not a classification of a hazard? A - speculative B - moral C - morale D- physical
D- physical