Exam Questions
The Running Down Clause would cover which claim?
Collision damage to another vessel when the insured is liable A Collision and Running Down Provision is contained in the standard Hull Policy to cover liability incurred for damage to another vessel or structure
Section III of the Businessowners Coverage Form includes:
Common Policy Conditions
Detached structures on the insured premises are included in which coverage under a Dwelling Policy?
Coverage B
Which of the following is correct concerning the Commercial Property Special Causes of Loss Form?
Coverage is provided for all losses except as specifically limited or excluded
Which of the following is true regarding the Camera Floater? A Automatic coverage is provided on newly acquired items for 60 days B Automatic coverage is provided on newly acquired items for 90 days C Blanket coverage is provided on cameras and lenses D Newly acquired are covered up to 25% of the policy amount until reported
D, AND THERES A 30DAY LIMIT
Which of the following is not a Supplementary Payment under Part A of the Personal Auto Policy? A Up to $250 for the cost of bail bonds B Reasonable expenses incurred at the insurer's request C Payment for lost earnings up to $200/day D Medical payments for an occupant of an insured vehicle
D, MEDICAL PAYMENTS ARENT SUPPLEMNTARY
Which of the following describes the purpose of the Gramm-Leach-Bliley Act? A Deregulating the trucking industry B Establishing privacy protection for consumers C Enforcement of fraudulent insurance acts D Regulating investment companies
ESTABLISHING PRIVACY FOR CONSUMERS
Which of the following is true about binders?
It contains only the essential coverage information, except the premium amount.
Peril
It is the specific cause of loss
A guest falls in K's house and is injured in an amount of $1,000. How much will K's Homeowners Policy pay regardless of fault, if the Coverage F limit is $1,500? A $1,000 B $500 C $1,500 D Nothing
K's policy will pay the actual amount of medical expenses up to the policy limit of Coverage F.
Which of the following is not covered under the Building and Personal Property Coverage Form? A Buildings B Personal property of others C Liability D Business personal property
Liability is not covered under this form, but is covered under the Commercial General Liability policy.
why is this wrong, It is written only with split limits of liability
Limits of liability may be either split or single. Personal effects would be covered by the owner's homeowners or renter's policy.
Section II of the buisnessowners coverage form - medical expenses
Medical Expenses payments do not apply to persons hired to work, or an insured
The Extra Expense form pays the necessary expenses incurred by the insured during which of the following?
Period of Restoration
Which of the following is true regarding the Medical Payments coverage under the Business Auto Policy?
The BAP does not automatically include Medical Payments coverage
Which of the following are the Territorial Limits of the Personal Auto Policy?
The United States, its territories and possessions, Puerto Rico, and Canada
Which of the following is used to resolve differences between the insured and the insurer? A Liberalization B Non-renewal C Subrogation D Arbitration
The arbitration provision of the insurance policy provides a method of settling disputes between the insurer and the insured as an alternative to legal action.
why is this wrong: The insurer is subject to North Carolina insurance laws
Unauthorized insurers are not subject to North Carolina insurance laws, which are designed to protect the insurance consuming public.
In an insurance contract, the value that each party gives the other is called the:
consideration
Which of the following is not a condition found in an insurance policy?
insuring agreement
Construction material having a fire-resistance rating between one and two hours for walls, floors and roofs, is classified as:
modified fire resistive
is buisnessowners coverage form subject to coinsurance?
nop
The formal statement that verifies details so the insurer can determine liability is called:
proof of loss
what is not within an agent's authority?
representing the insureds interest
Which of the following is found in the Common Policy Declarations of the CPP?
the deductible
What is part of consideration of an insurance contract?
-promise to indemnify in event of loss -Payment of initial premium -payment of claim for insured
A license applicant must notify the Commissioner in writing within _____ days of a change in residential or email address or of being convicted of a crime other than an auto misdemeanor.
10 days
An insurer must provide claim forms to a claimant within _____ days of receiving notice of loss.
15
Whenever an insurer changes the coverage, other than at the request of the insured, or changes the premium rate, the insurer must give the insured at least _____ days advance written notice of such coverage change or premium rate change.
15
Under the unendorsed Homeowners Policy, jewelry is covered up to what amount?
1500$ by loss of theft
A temporary license may be issued to an individual for up to how long?
180
The Commissioner of Insurance may issue a temporary license, without regard to education, experience, or exam requirements, for up to ___ days, to specified persons, under certain circumstances.
180
A temporary license may be issued to an individual for up to how long?
180 days
How much is money covered up to per occurence in Homeowners Policy
200$
Every person holding a property, casualty, personal lines, or adjuster insurance license must obtain _____ hours of continuing education credit as specified in the insurance code.
24
No privacy information notice needs to be provided to the insured if one was provided within the previous ______ months.
24
How much is silverware covered up to per occurence in Homeowners Policy
2500$
The Limited Mexico coverage provides coverage for how many miles into Mexico?
25miles
Motels may not be written insured by a Businessowners Policy if they exceed:
3 stories, not limited by area
An agent convicted of a misdemeanor in another jurisdiction must report the adverse action to the Commissioner within:
30 days after the final disposition. Must iclude a copy of the order, consent order, and any other relevant legal docs.
An agent convicted of a misdemeanor in another jurisdiction must report the adverse action to the Commissioner within: A 15 days B 30 days C 3 months D 6 months
30`
All of the following are true of a Homeowners Policy, Coverage F, except: A Under Coverage F, coverage applies to persons that are on the insured location with permission B Under Coverage F, a covered accident may occur during the policy period C Under Coverage F, payments apply to necessary medical expenses incurred within a maximum of 1 year D Under Coverage F, coverage does not apply to injuries of the named insured or any regular resident of the insured's household
3yrs
A Builder's Risk policy automatically ends within how many days after construction is complete? A 120 B 60 C 90 D 30
90
All of the following statements about binders are true, except: A A binder specifies the insurer providing the coverage B A binder specifies the perils covered C A binder specifies the effective date of coverage and amount of coverage D A binder specifies the premium amount
A binder does not specify the premium amount. The Declarations of an actual policy would include the premium.
When an auto has two auto policies with the same insurer, the insurer's liability would not exceed:
the highest limit of the two policies
A contract that binds only one party to future performance, is a(n):
unilateral contract
The voluntary surrender of a right is known as which of the following?
waiver
Which of the following is covered on a Basic Cause of Loss Form?
windstorm
true or false: per Homeowners policy, borrowed property is a content
yes
Concurrent coverage
Applies to seperate policies covering a risk, such as a primary or umbrella.
Under the Building and Personal Property Coverage Form, coverage applies to all of the following, except: A Personal property used to service and maintain the building B Windstorm damage to outdoor signs not attached to the building C Materials that are within 75 feet of the premises D A tenant's interest in a built-in wall cabinet
Outdoor signs not attached to the building are excluded except for limited coverage under Outdoor Property, which does not cover wind losses
The maximum amount that a coverage will pay for loss to any one injured party regardless of overall policy limits, is known as the: A Split limit B Per person limit C Aggregate limit D Per occurrence limit
PER PERSON LIMIT
Under Coverage C of the Special Dwelling Form, all of the following are included, except: A Pets belonging to the insured B At the insured's option, property of guests and servants C Household and personal property D Property of others that is in the care, custody, and control of the insured
PETS BELONGING TO INSURED
Hull insurance on an ocean marine policy covers the vessel for which of the following? A Physical damage B Cargo damage C Liability D Seaworthiness
PHYSICAL DAMAGE
Which of the following is NOT a type of coverage provided under a farm liability policy? A Bodily injury and property damage liability B Personal and advertising injury C Professional liability D Medical payments
PROFESSIONAL LIABILITY
Most liability policies do not provide coverage for: A Special damages B General damages C Compensatory damages D Punitive damages
PUNITIVE
Which type of standard policy includes coverage options that would not exclude damage by flood?
Part D - Coverage for Damage to Your Auto covers flood, including flash flood.
01:21:42 The Workers' Compensation Policy Conditions Section includes which of the following?
Part Six - Conditions of the Workers' Compensation Policy includes the cancellation requirements.
All of the following are excluded from the Workers' Compensation Law, except:
Part time employees
Which statement is false regarding Supplementary Payments under the Commercial General Liability policy? A Coverage only applies to Coverages A and B B Payments made under this section reduce the limits of the policy C The cost of bail bonds is included up to $250 D Claim related expenses are included
Payments for Supplementary Payments do not reduce the limits of the policy.
Personal Injury includes...
Personal Injury is non-bodily injury to a person arising from wrongful conduct. Slander, Libel, False Arrest
Which of the following is not an Optional Coverage under the Businessowners Policy?
Personal property of others that is in the insured's care, custody and control
An insured who goes to client's offices and homes for appointments would need coverage for which liability exposure?
Premises and Operations
ABC Industries contracts with municipal governments to build bridges, viaducts, and similar engineering projects. If workers from ABC Industries cause damage to a taxicab while pouring the foundation for a new overpass, which kind of liability exposure would this be an example of?
Premises and operations
If other insurance also applies to a loss covered by a policy, which of the following will establish the method for determining how the insurance companies will pay the loss?
Pro rata liability
Policy A provides liability coverage to Fred's Grocery up to $500,000. Policy B provides coverage for the same risks up to $1.5 million. Both policies pay on a pro rata basis. If Fred's Grocery is determined to have a legal liability of $400,000 to a claimant who was injured on the property, how much will Policy A pay? A $400,000 B $500,000 C $50,000 D $100,000
Pro rata liability requires that each policy pays no more than its share of the loss. The total insured amount carried by Fred's Grocery is $2 million ($500,000 + $1.5 million). Policy A's share of that amount is 25% ($500,000 ÷ $2 million). Therefore, its share of any loss would be 25% of the loss amount. 25% of $400,000 is $100,000.
All of the following about the CGL's products liability coverage are correct, except: A Coverage applies to bodily injury occurring away from premises the insured owns or rents B Damage to the product itself is covered C Coverage applies to property damage the product causes D Coverage applies to bodily injury the product causes
Products liability coverage covers damage or injuries caused by the insured's product, but does not include damage to the product itself.
Section II (Liability) of the Garage Coverage Form covers which of the following?
Property damage for which the insured is legally responsible
Homeowners policies located at another location limits
Property usually located at another location is limited to 10% or $1,000, whichever is greater.
Liability coverage is designed to:
Protect the insured from bodily injury and property damage they are legally obligated to pay
The Reasonable Expectations Doctrine states that:
Reasonable expectations is a legal doctrine that holds that the reasonable expectations of policyowners will be honored even if the strict terms of the policy do not support these expectations.
Claimant A has bodily injuries in the amount of $49,500; claimant B, $19,500; and claimant C $14,000 arising out of a 4-car accident caused by the insured, whose PAP carries limits of 25/50/10. What will the insurer pay?
Regardless of the individual claim amounts, because the total of the individual claims ($83,000) exceeds the per accident limit of $50,000, the insurer's liability is limited to $50,000 for all three claimants.
When an underlying policy doesn't cover a particular loss, the umbrella will drop down and cover the entire loss, after payment by the insured of a: A Premium B Retention C Copayment D Commission
Retention
K owns several buildings at different locations with each one insured on a separate policy. Which of the following methods of writing insurance does this describe? A Agreed Value B Specific Limit C Blanket D Scheduled
SPECIFIC LIMIT
Choose the item that is not covered under the BOP.
Satellite dish located on the premises Outdoor fences, radio or television antennas, satellite dishes, and its lead-in wiring, masts or towers are excluded under the BOP.
Methods of writting property insurance?
Scheduled, Specific, and Blanket
When using a neighbor's lawnmower, the insured strikes a large rock and causes $2,000 in damage to the neighbor's automobile. Which policy section of the insured's Homeowners policy may pay for part of the damage? A Personal property B Personal liability C Dwelling, since the lawnmower is equipment used to service the residence D Loss of use
Section II Coverage E provides personal liability coverage for property damage to others due to actions of the insured. Under the additional coverage Damage to Property of Others, the limit is $1,000 of coverage.
why is this wrong: Coverage F limits are subject to a deductible
Section II coverages are not subject to a deductible.
Section II (Liability) of the Garage Coverage Form covers which of the following? A Injuries to an employee that are caused by a fellow employee B Property damage for which the insured is legally responsible C Injuries covered by Workers' Compensation D Property in the care and custody of the insured
Section II covers property damage liability for which the insured is legally responsible.
Which section of the Garage Coverage Form provides coverage for autos in the care, custody and control of the insured? A Section II B This coverage is not provided under the Garage Coverage Form C Section I D Section III
Section III Section III, know as Garagekeepers coverage, provides insurance for amounts the insured is legally obligated to pay for loss or damage to a customer's vehicle and/or equipment while it's in the insured's care for servicing, repair, parking, or storing.
Which of the following perils is not covered under the Dwelling Broad Form? A Vehicle damage to the dwelling B Burglary damage C Smoke damage from industrial operations D Weight of ice and snow
Smoke damage is a covered peril of the Dwelling Broad Form; however, the description of the peril specifically excludes smoke from agricultural smudging or industrial operations.
Which of the following is an example of Special Damages?
Special damages are an award to an injured party for actual and known expenses such as bills, loss of earnings, and the costs of repairing or replacing damaged property. Special damages are paid for tangible loss or damage.
The time period in which a lawsuit may be filed after the occurrence of a claim is referred to as: A Limit of liability B Statutory law C Statute of limitations D Common law defenses
Statute of limitations is the length of time from the date of claim that legal proceedings may be initiated. This time period is established by federal or state law
The basic causes of loss form under the Commercial Property Coverage Part would not cover which of the following?
Steam Boiler Explosion, must purchase Boiler and Machinery Insurance Covers Sinkhole, sprinkler leaks, and riot or civil commmotion
What is the principle of liability that imposes legal liability for injury and damage by products?
Strict liability applies to products causing an injury, whether or not the product was defective.
Which of the following statements is incorrect about Supplementary Payments under the CGL? A The insurer's claim-related expenses are included B Supplementary payments apply to losses under all Section I coverages C The cost of bail bonds is included up to $250 D Payments do not reduce the Limit of Liability
Supplementary Payments only apply losses insured under Coverages A and B. They are not applied to no fault Medical Payments, since these are issued without involvement of a suit. B
Which statement is false regarding the Equipment Breakdown Protection Coverage Form? A If an initial breakdown causes other breakdowns, they will all be considered one breakdown B The period of restoration ends 15 days after the damaged property is repaired or replaced C Covered equipment does not include catalysts, insulating, or refractory material D Deductibles ordinarily apply separately to each applicable coverage
THE PERIOD OF RESTORATION ENDS 5 DAYS, NOT 15
Which coverage form covers business exposures of motor carriers for hire who transport the goods of others? A Symbol 30 under the Business Auto B Motor Carrier C Contract Carrier D Truckers
TRUCKERS
In property insurance, which clause prevents the insured from relinquishing ownership and leaving damaged property to the insurer and claiming a total loss?
The Abandonment clause provides that the company will not accept property abandoned by an insured when there is a claim dispute.
Policyholder B has a BAP with limits of 100/300/50. In an accident for which B was liable, there were BI claims in the amounts of $80,000; $100,000; and $125,000; and PD claims of $20,000 and $35,000. How much will his policy pay? A $300,000 BI and $50,000 PD B $305,000 BI and $55,000 PD C $280,000 BI and $50,000 PD D $305,000 BI and $50,000 PD
The BI claims of $80,000 and $100,000 will be paid in full. The $125,000 claim exceeds the per person limit and will only be paid up to $100,000, resulting in total BI payments of $280,000. The PD payments will be capped at the policy limit of $50,000 per accident.
The uniform document that common carriers are required to issue to the shipper of the goods being transported, is called a: A Shipping Receipt B Bill of Lading C Bill of Acceptance D Bill of Transportation
The Bill of Lading is a receipt for the goods being shipped that sets forth the basic agreement between the carrier and the shipper.
Broad Theft Endorsement on a Dwelling Policy
The Broad Form Theft endorsement is attached to owner-occupied Dwelling policies to provide theft coverage for the owner-occupant's Personal Property. On-premises and off-premises coverage is available.
Which of the following crime forms requires the use of a Retroactive Date? A Discovery Form B Claims-made form C Occurrence Form D Loss Sustained Form
The Discovery Form covers losses that are discovered during the policy period but did not necessarily occur during the policy period. Claims-made and occurrence forms are used with Commercial General Liability policies, not Commercial Crime.
All of the following are loss conditions of the BAP, except: A Transfer of rights of recovery B Examination of Your Books and Records C Legal action against the insurer D Duties in the event of an accident
The Examination of Your Books and Records condition is a Common Policy Condition of the CPP.
What are the minimum policy limits that the Facility will cover a risk ceded by a member insurer?
The Facility provides 100% reinsurance for 30/60/25, or $30,000 for bodily injury per person, $60,000 for bodily injury for 2 or more persons in any one accident, $25,000 for property damage per accident, and $1,000 for medical payments per person, except motorcycles and uninsured motor vehicles.
What deos H0-2 cover?
The HO-2 pays all losses on a broad form (Named Perils) basis. The HO-2 covers owner-occupied dwellings The HO-2 pays for losses to the dwelling on a replacement cost basis
H0-4 UNENDORSED VS ENDORSED....
The HO-4 provides Broad Form named perils coverage on an actual cash value basis. Replacement cost coverage is available by endorsement, for an additional premium.
Coverage for recreational vehicles can be added to the Personal Auto Policy by the:
The Miscellaneous Type Vehicles coverage includes recreational vehicles.
Under Section II of the Homeowners Policy, a one or two family dwelling where the insured resides in one of the units, including other structures and grounds at that location, is defined as:
The Residence Premises The Residence Premises is either a 1, 2, 3, or 4 family dwelling in which the named insured resides. The residence premises also includes other structures and the grounds at that location, such as the 5 acres upon which the insured sits, including the barn, detached garage, and swimming pool.
Livestock is not eligible for coverage on which Farm policy? A Special Cause of Loss Form B Broad Cause of Loss Form C Basic Cause of Loss Form D Livestock Coverage Form
The Special Cause of Loss Form specifically excludes coverage for livestock. The Basic form covers flood and earthquake loss to livestock and the Broad form covers electrocution of covered livestock.
Special Form dwelling coverage:
The Special Form dwelling policy provides coverage for all perils except what's excluded. Catastrophic perils are named exclusions. limited by the named exclusions
What is the coverage territory for bodily injury claims under the Employers Liability coverage?
The United States, its territories, and Canada
Workers' Compensation Assigned Risk Plan?
The Workers' Compensation Assigned Risk Plan is available to those employers who cannot obtain coverage in the voluntary market because of their loss experience or the hazardous nature of their employment.
ABC industries has insured a factory building for $80,000. The replacement value is $150,000. If the commercial property policy insuring the building has an 80% coinsurance clause, how much will ABC's insurer pay for a $12,000 covered loss?
The coinsurance clause requires insurance at 80% of the replacement value, or $120,000. Because the policy limit of insurance is only $80,000, or 2/3 of $120,000, the claim payment would be 2/3 of $12,000, or $8,000.
Which of the following is true regarding the Supplemental Extended Reporting Period? A Cancellation by the insurer requires 90 days notice of cancellation B The premium is a one-time charge C It covers occurrences that take place after the policy term, during the Supplemental Extended Reporting Period D The charge for the Supplemental Extended Reporting Period may not exceed the annual premium of the expiring policy
The cost of the endorsement may be up to 200% of the CGL's annual premium. This is a one-time charge and is fully earned at issuance.
Which of the following is true regarding Property Off Premises coverage under the Building and Personal Property Coverage Form? A There is a coverage limit of $5,000 on Property Off Premises B It is offered as an Additional Coverage C Property in a motor vehicle or in the care, custody, and control of a salesperson is included D Property Off Premises is covered only for 30 days after its removal from the premises
The coverage extension for property off premises provides up to $10,000 of coverage for the insured's covered property (other than stock) while it is temporarily at a location the insured does not own, lease, or operate. This includes property located at a fair, trade show, or exhibition; in or on a vehicle; or in the care, custody, or control of the named insured's salesperson.
Which statement is true concerning Coverage D of the Homeowners Policy?
The coverage will pay for any increase in living expenses required to maintain the insured's normal standard of living, not anything they were paying prior
An insured who has coverage under the NFIP with a $500 deductible for the dwelling and contents sustains flood damage to both their home and personal property. What is the maximum the insured will have to pay for damages assuming the loss is under the policy limits? A $1,000 B Nothing C $500 D $1,500
The deductible applies separately for the dwelling and the contents, therefore the insured is responsible for $1000 in deductibles.
Equiptment Breakdown Coverage Form does not cover what
The definition of breakdown does not include malfunction, including adjustment, alignment, calibration, cleaning, or modification.
Under a Commercial Crime policy written on a discovery form, what is the latest date that a covered loss can be discovered? A 1 year following policy expiration B 5 years following policy expiration C 2 years following policy expiration D The policy expiration date
The discovery form provides coverage for losses are discovered during the policy period. D
Under a Homeowners Policy, Coverage A includes coverage for:
The dwelling on the premises plus structures that are attached to the dwelling The policy does not cover theft in, to, or from a dwelling under construction, including materials used in the construction.
what does the Home Business endorsement cover?
The endorsement provides both business property and liability coverages for an eligible home business.
Which of the following parties may assign a standard property policy?
The insured with prior written permission of the insurer
An insured has a homeowners broad form with a $200,000 limit on the dwelling and the standard deductible. If the insured's $2,500 boat and trailer are stolen from his driveway, what is the most the insured will collect from the policy?
The limit for watercraft including trailers is $1,500. The policy will pay the limit less the standard deductible of $250.
Which of the following is designed to cover the risk of a business that experiences a specified increase in business personal property during a designated period?
The peak season endorsement is available for businesses that have an annual buildup of inventory during their peak season.
All of the following are producer responsibilities owed to the insured or applicant during an insurance transaction, except
The producer represents the insured's interests
Where can you find insurance coverage after being rejected by voluntary market insurers? A Residual market B Risk Retention insurance C Lloyd's of London D Reinsurance
The residual market is a private coverage source of last resort for businesses and individuals who have been rejected by voluntary market insurers.
Which of the following would not be considered an insured under a CGL? A Real Estate Manager acting on behalf of the insured B An LLC employee's spouse assisting in cleaning the office so they can leave for vacation more quickly C Executor of the CEO's estate after his death D Volunteer worker
The spouse of an LLC employee is not considered an insured. The LLC, its members and managers are considered insureds.
Which of the following forms provide coverage for indirect loss? A Commercial Glass Coverage Form B Business Income Coverage Form C Legal Liability Coverage Form D Building and Personal Property Coverage Form
The two indirect loss forms to the Commercial Property Coverage Part are the Business Income Coverage Form and the Extra Expense Coverage Form.
The Watercraft Liability endorsement provides which coverage? A Property damage arising out of the racing of sailing vessels B Property damage arising out of motorboat being operated in a race C Bodily injury sustained by an employee in the course of employment D Bodily injury and property damage arising out of the ownership and use of boats rented to others
The watercraft liability exclusion for racing does not apply to sailing vessels. Bodily injury sustained by an employee in the course of employment, damage arising out of boats rented to others, and damage arising out of watercraft being operated in a race are not covered.
DIC Differents in Conditions Policy and coinsurance
There is no coinsurance clause or pro rata clause and it may be written for a different amount from the policy it complements
Which Statement is true regarding a Difference In Conditions Policy? A There is a pro rata clause B There is always a coinsurance clause C The standard deductible is $250 D There is no standard form
There is no coinsurance or pro rata clause and the standard deductible is in the range of $10,000.
why is this wrong: The HO-4 covers the dwelling against the Broad Form Perils
There is no coverage for the dwelling under an HO-4, only contents coverage.
Under the HO-4 and HO-6, personal property is covered on which basis? A Broad perils coverage B Open perils coverage C Basic perils coverage D Replacement cost coverage
These two Forms provide Broad Form Perils Coverage. Open perils coverage is available by Endorsement for scheduled items at an additional premium
Which of the following is true of supplementary payments under Part A of the Personal Auto Policy?
They are paid in addition to the liability limits of the policy
A person who willingly and knowingly made submitted several fraudulent claims over the past several years is subject to which of the following penalties?
Treble damages
Negligence is what kind of tort? A A criminal tort B A gross tort C An intentional tort D An unintentional tort
UNINTENTIONAL TORT
Which of the following is a duty required of the insured in the event of a loss under the PAP? A Immediately initiate repairs to the vehicle to protect it from further damage B Give notice of the accident to the insurer within 5 days C Allow an inspection and appraisal of the damage before an auto is repaired D If the vehicle was stolen, contact the insurer for permission to report the theft to the police
Under Part E - Duties After a Coverage D Loss, the insured must also allow and inspection an appraisal before the damage is repaired and promptly notify the police if the car was stolen.
arent an 'insured' under Larry's Business Auto Policy?
Under the BAP, the owner of a vehicle borrowed by the named insured is NOT an 'insured.'
Which of the following does not pay regardless of fault
Uninsured Motorist Bodily Injury The other party must be legally responsible for bodily injury to an insured that arises out of ownership, maintenance, or use of an uninsured motor vehicle in order for this coverage to apply.
Which is a TRUE statement about motor vehicle liability policy requirements?
Uninsured motorist coverage may be up to $1 million per person/per accident
At what age will the child of an employee who died due to a work-related injury no longer be eligible to receive benefits from Workers' Compensation?
Upon the job-related death of an employee, Survivor Benefits are provided to dependent children until the age of 18, unless the child is a full-time student or permanently disabled.
Choose the false statement about a newly acquired additional vehicle under the PAP: A Coverage will be as broad as the broadest coverage on any insured vehicle in the household B It must be reported to the insurer within a specified period C It may be used on a farm D It may be used to transport goods for hire if receipts are less than $10,000
Vehicles used to carry goods for hire cannot be insured under a Personal Auto Policy.
All of the following are covered perils under the Extended Coverage Endorsement to the DP-1, except: A Vehicles B Volcanic eruption C Weight of ice, snow or sleet D Windstorm
WEIGHT OF ICE,SNOW, OR SLEET
Policyholder S has an HO-5 policy with a $250,000 Coverage A limit. After a strong wind blows a mailbox into S's front picture window, causing $2,500 damage, S immediately buys $250 of wood and plastic sheeting to cover the damaged window and prevent further damage. How much will S's policy pay? A $250 B $2,750 C $500 D $2,250
When an insured's property is damaged by a covered peril, the Reasonable Repairs additional coverage pays the reasonable costs by the named insured to take necessary measures to protect the property against further damage. The policy would therefore pay the full amount of the loss to the window, plus the insured's cost in covering it to prevent further damage.
Which of the following Part D claims would be denied under the Personal Auto Policy?
While the insuring agreement of Part D is very broad, many perils are excluded, including wear and tear, freezing, mechanical or electric breakdown, or road damage to tires.
he Outdoor Property coverage extension under the Building and Personal Coverage Form insures against which of the following perils? A Riot, civil commotion, and vandalism B Windstorm, hail, riot, and civil commotion C Explosion, riot, and civil commotion D Windstorm, hail, explosion, and vehicles
Windstorm, vehicles and vandalism are not covered perils under this coverage extension.
Physical therapy and vocational training are two examples of what kind of benefits? A Rehabilitation benefits B Death and survivor benefits C Medical benefits D Disability benefits
a
Which of the following describes the term General Average under Ocean Marine Insurance? A A partial loss where the loss is shared B The average value per item of all the cargo on the ship C The average freight charges on the entire cargo of the ship D A partial loss where the loss is not shared
a General Average refers to loss resulting from a voluntary sacrifice of any part of the vessel or cargo to safeguard the vessel and the rest of the cargo. When such a loss occurs, the ship owner and all cargo owners pay it on a pro rata basis.
#/#/#
a bodily injury (BI) limit per person, a bodily injury (BI) limit per accident, and a separate limit for property damage (PD) per accident
Which of the following residents in the insured's dwelling is eligible to receive medical payments under Section II of a Homeowners Policy?
a residence employee
Z is a distributor of natural gas. While connecting gas to B's house, an explosion occurs and the house is destroyed. Z's defense is that B did not turn off the pilot light on her furnace before the hookup as instructed by the company. The court ruled that the activities of connecting gas lines were so dangerous that Z's defense did not relieve its liability. What legal principle is applicable in this case?
absolute liability
how are contents covered of the Dwelling policy Special Form?
actual cash value basis
An insurer that is authorized to do business in a particular state is said to be:
admitted
Which of the following is not an insured contract under CGL?
advertising contract
Under a CGL (Commercial General Liability Coverage) , at what point in time is the earned premium determined by the premium audit?
at the end of the policy period
Which of the following incidents is not covered under the Inside The Premises Theft of Money and Securities Form?
attempted robbery of a custodian
When a producer exceeds the authority expressed in the agency contract and the insurer does not take action, which of the following types of authority is created? A Actual B Apparent C Implied D Express
b A producer has apparent authority when he/she exceeds his/her contractual authority, and the insurer does nothing to intervene.
Which of the following is not a Supplementary Payment under Part A of the Personal Auto Policy? A Up to $250 for the cost of bail bonds B Medical payments for an occupant of an insured vehicle C Reasonable expenses incurred at the insurer's request D Payment for lost earnings up to $200/day
b Medical payments are paid out of Part B of the policy and are not considered Supplementary Payments
P's liability policy has the following limits: $50,000 per person, $250,000 per occurrence, and $400,000 aggregate. During the policy period, the policy paid out $250,000 in liability claims. If P suffers another loss of $250,000 during the same policy period, how much will the policy pay?
$150,000 Because the policy has an aggregate limit of $400,000 during the policy period, and has already paid out $250,000, the most it will pay for the remainder of the period is $150,000, regardless of the amount of loss.
All of the following are true of automobile liability coverage, except: A It pays up to $500/day for loss of income by the insured B It provides third party protection C It may be written with either split or single limits D It protects the insured for losses when the insured is legally liable
$200
Which of the following methods of writing insurance is used to provide insurance on properties at different locations, using a single policy, and a single limit of insurance?
blanket
Which of the following is not one of the limits of liability provided by the CGL? A General aggregate limit B Personal and advertising injury limit C Medical expense limit D Bodily injury limit
bodily injury limit
An insurance professional who represents the insured is which of the following?
broker
what is not covered under the Condominium Commercial Unit-Owners Coverage Form?
building exterior walls
Under a Homeowners policy, Coverage B is what percentage of Coverage A? A 50% B 5% C 10% D 25%
c
Which of the following covers physical damage to non-owned trailers and their equipment? A Interline Coverage B Truckers Coverage C Trailer Interchange Coverage D Other Insurance Clause
c
Personal Article Floater claims are normally settled on a(n): A Replacement Cost basis B Functional Replacement Cost basis C Actual cash value basis with some exceptions D Market value basis
c, except for agreed value due to jewelery
The insured can request the following initial information be added to a property policy, except:
caim surcharge
Coverage C of the Homeowners policy would cover which of the following?
camera stolen on vaction
Which of the following is NOT an eligible employee under the Workers' Compensation policy?
casual employee, labor worker, farm worker
The BOP policy provides the same liability coverage as which of the following policies?
commerical general liability
Which of the following carries people and property belonging to the general public, for a fee, from one place to another?
common carrier
Which of the following describes both the premium paid by the insured and the promise by the insurer to pay a covered loss and defend the insured in a lawsuit?
consideration
common law defenses
constibutory negligence, intervening cause, assumption of risk
The North Carolina Motor Vehicle Reinsurance Facility wont provides automobile insurance to ....
construction or farm equiptment
which coverage is specifically excluded in the Farm Liability coverage form
contractual liability
Under the Dwelling Policy, household and personal property, including property in transit between the insured's old and new residences, are covered under:
coverage c
Which is true of Coverage C of the Dwelling Policy?
covers personal property of a guest
All of the following are covered perils under the Extended Coverage Endorsement to the DP-1, except: A Volcanic eruption B Windstorm C Vehicles D Weight of ice, snow or sleet
d
A commercial property has a $400,000 Commercial Building and Personal Property policy, and a fire breaks out on the loading dock, causing $80,000 in damage and $20,000 in debris removal. What is the maximum that may be received for the damage?
100,000$ The $80,000 loss plus the entire $20,000 debris removal will pay, since that amount is less than the 25% of coverage limit.
A violation of the Privacy Protection Act is punishable by all of the following, except:
100,000$ fine
For how many hours after the first tremor would earth movement damage be covered under the Businessowners Earthquake endorsement? A 72 hours B 144 hours C 168 hours D 24 hours
168
Reasonable medical expenses incurred and reported within how many years following an accident are covered under Medical Payments coverage of the CGL?
1year
Reasonable medical expenses incurred and reported within how many years following an accident are covered under Medical Payments coverage of the CGL? A 2 B 5 C 1 D 3
1year
A Building and Personal Property Coverage Form, will pay up to what percentage of the building coverage for debris removal? A 15% B 10% C 25% D 5%
25%
Under the PAP, how long does an injured party have following an accident to report a Medical Payments claim?
3 years
Which of the following is not included in the definition of mobile equipment? A Vehicle on crawler treads B Bulldozer C 3/4 ton pickup D Forklift
3/4 ton pickup
Which Commercial auto symbol is unique to the Garage Coverage Form?
30
Medical expenses of the Farm Liability Coverage Form provide coverage if the accident is reported within
3yrs
The North Carolina Rate Bureau assesses and recommends rates for property and casualty insurance against loss to residential contents and real property with not more than ___ housing units, theft and physical damage loss to nonfleet private passenger motor vehicles, and Workers' Compensation and employers' liability insurance.
4
Residential dwellings with no more than _____ residential units and _____ roomers or boarders per family are eligible under a Homeowners Policy.
4 residential units and 2 roomers or boarders Residential dwellings eligible for the homeowners policy may contain one to four residential units and no more than 2 roomers or boarders per family.
Transportation Expenses coverage under the Personal Auto Policy begins how long after a covered auto has been stolen?
48hrs
Each insurer or its agents must maintain a record of all written complaints for at least _____ years after the complaint's final disposition or, for domestic companies, until the Commissioner adopts a final report of a general examination that contains a review of these records, whichever is later.
5
Under a Homeowners Policy, how much coverage is provided for theft or unauthorized use of a credit card?
500$
If property under a Personal Floater risk is insured at a $5,000 valued basis, how much would the insured receive if the item is a total loss, the actual cash value is $4,000, and an auction is selling the same item for $3,500?
5000$, If an item is insured on a valued basis, that is how much the policy will pay for a loss.
A leased auto is an eligible vehicle if the lease contract is for a continuous period of at least how many months?
6
Choose the false statement about the CGL policy. A A Products and Completed Operations Liability claim will reduce the General Aggregate Limit B The General Aggregate Limit will be reduced by a medical payment C Changes to a CGL policy may be made only by endorsement issued by the insurer D A bodily injury claim must be caused by an occurrence and it must have taken place in covered territory
A
Regarding inland marine policies, which of the following statements is false? A The Bailees Customers Form covers the insured's property B The Contractor Equipment Floater Form is usually written on an open peril basis C The Installation Floater Policy provides coverage while the property is in transit and during installation D The Accounts Receivable Coverage Form is a controlled or standardized form
A
Which of the following is an example of Special Damages? A Compensation to an injured party for actual medical expenses and loss of earnings B The damages assessed by the court as a penalty for gross negligence C Compensation to a husband or wife for the loss of companionship of a spouse D The damages of pain, suffering, and disfigurement
A
Which of the following types of liability limits allow the most to be paid for a single occurrence without regard for the number of claimants? A Combined Single Limit B Comprehensive Limits C Split Limits D Per Person Limit
A
The Personal Auto Policy Collision Coverage applies to which of the following? A Your car, regardless of liability B The car you run into, regardless of liability C Your car only if you are legally liable D Your car and the car you run into
A Collision only applies to a vehicle of the insured and is applied regardless of fault.
Choose the false statement about commercial auto coverage. A Specified Peril Coverage pays for damage to an insured vehicle from almost any cause except collision B Garagekeepers Insurance provides coverage for damage to a customer's car C The Motor Carrier Coverage Form provides coverage for business exposures due to the transportation of goods owned by others for hire and transporting their own property D A Garage Coverage Form will cover legal liability from completed operations
A Specified Peril Coverage provides coverage only for certain named perils such as fire.
After an employee of a service station failed to tighten the oil filter, the leaking oil caused $700 in damage to the engine. Section II of a Garage Coverage Form would pay: A $700 only if the employee is proven negligent B Nothing C $700 less the $100 mandatory deductible D $700 less the $250 mandatory deductible
A $100 deductible applies to all losses resulting from property damage to an auto as a result of work performed on that auto by the insured.
Under Uninsured Motorist Coverage of the Personal Auto Policy, which of the following would be an insured?
A family member, occupying an insured auto struck by an uninsured vehicle
Which of the following best describes a hostile fire?
A fire caused by a spark escaping from a fireplace and igniting a carpet
Why is this wrong: A home loan provider must require an issued policy as evidence of insurance, not a binder
A home loan provide may accept a binder as long as it includes specified identifying information and may not be cancelled without 10 days' written notice to the mortgagee.
does a home loan require a binder?
A home loan provide may accept a binder as long as it includes specified identifying information and may not be cancelled without 10 days' written notice to the mortgagee.
The Homeowners policy covers all of the following losses to trees, shrubs and plants, except:
A loss resulting from a windstorm
Which of the following losses would the Building and Personal Property Coverage Form NOT pay on an actual cash value basis?
A loss to the building of $2,500 or less would be paid at replacement cost, all others mentioned are paid at actual cash value.
Which of the following is a characteristic of a Mutual Insurance Company? A Stockholders have ownership B Dividends are returned profits C A policyholder is a voting member on the Board of Directors D Members are provided insurance by the company
A mutual insurer is owned by its members (not stockholders) and dividends are a return of unused premium (not a return of profit). Although policyholders are the owners of a mutual insurer, they are not voting members of the Board of Directors. Members are provided insurance by the company.
Under the Personal Auto Policy, Medical Payments coverage is provided for which of the following?
A passenger while occupying the covered auto
Choose the true statement regarding general business regulations for property insurance.
A premium overpaid for a sum in excess of a building's actual cash value must be reimbursed at 6% annual interest from the date of issue
Which of the following statements is NOT true regarding the Consumer Division? A A receipt for an insurance premium must be dated and signed by the agent B Commingling is prohibited C An agent may not buy salvage from a claimant D An agent charging a service fee must display that fee in their office
A premium receipt must be dated, state the name and address of the agency, agent, broker, or limited representative, state the name of the insurer and be signed by the person accepting the payment.
To which disability would a scheduled benefit apply? A Permanent Total B Temporary Partial C Permanent Partial D Temporary Total
A scheduled benefit applies to specific permanent partial injuries, such as a specific dollar amount for the loss of a hand.
Which statement is true of Section I of a Homeowners Policy?
A special limit of $1,500 limit applies to watercraft
Which of the following would not be a covered auto under the Business Auto Policy Mobile Equipment endorsement?
A truck licensed and registered for use on public roads would be covered under the standard BAP, without need for an endorsement.
The concept that the insured should not profit from an insurance transaction is called: A The principle of indemnity B The principle of personal aspect C The principle of subrogation D The principle of utmost good faith
A, INDEMENITY
All of the following statements are correct about a Homeowners Policy, except: A Coverage D of a Homeowners Policy includes loss of income from an incidental business B Coverage D of a Homeowners Policy covers additional living expenses C Home schooling is covered under a Homeowners Policy D A Homeowners Policy will not cover theft of a boat away from premises
A, IT DOES NOT
Which of the following is correct regarding coverage under the Farm Property Coverage Form? A For coverage to apply, there must be a limit shown in the Declarations B The limit for Coverage G is the same as the limit of Coverage A C Coverage G includes loss of use D Coverage B - Other Private Structures includes farm buildings and silos
A, MUST BE SHOWN IN DEC
Which of the following losses would be covered by a commercial crime policy? A Vandalism occurring in the course of a burglary B A fire resulting from the aftermath of a robbery C Damage to company computers due to an act of vandalism D The mysterious disappearance of important papers previously stored in a safe
A, VANDALISM
Under Part A of the Personal Auto policy, which of the following would be covered?
damage to a parked car
What is the name for an insurer organized in the same state in which it is authorized to do business?
domestic
Which of the following is an element of fiduciary responsibility?
duty of loyalty
elements of negligence
duty owed, poximate cause, forseeable consequence
The Commercial basic Cause of Loss Form does not cover which of the following perils?
earth movement
Umbrealla Policy Exclusions?
employment practices liability, Workers' Compensation and employer's liability, war and terrorism, Product recall, contractual liability, professional services, and expected or intentional injury
In commercial liability policies, the word 'tail' is synonymous with: A Retroactive date B Endorsement C Extended reporting period D Supplementary payments
entended reporting period
Under a PAP, liability resulting from the insured's use of a non-owned auto is
excess basis The owner's coverage is primary and the driver's coverage is excess
Which of the following is not found in the Common Policy Declarations page of a Commercial Package Policy?
exclusions
Which of the following would not be found in the Common Policy Declarations page of a Commercial Package Policy? A The inception and expiration date B The policy premium C The insured's name and address D Exclusions
exclusions
true or false: Injury caused by an accident occurring after the policy period expiration date will be covered
false
true or false: An applicant for a Workers' Compensation self-insurance license must have at least $1,000,000 in total fixed assets.
false An applicant for a Workers' Compensation self-insurance license must have at least $500,000 in total fixed assets.
Which of the following would be an eligible risk under the BOP?
fast food resturant
rated for no less then one hour with combustible floors and roofs
fire-resistive
The earthquake endorsement is fairly broad but does not cover damage from:
flood
Hull Coverage and Cargo Coverage under Ocean Marine Insurance are generally written on which basis?
full value
Loss of money due to a fraudulent instruction to a bank to pay funds would be covered under which crime insuring agreement?
fund transfer fraud
Which of the following types of property would be covered by the Guests' Property endorsement to a commercial crime policy? A Client property destroyed in a fire B Property stored in a hotel safety deposit box by someone renting a room C The funds of credit union members stolen during a robbery of the credit union D Customer property stored in a bank safety deposit box
guests property-safety deposit box
Which kind of agent enters into agreements with more than one insurer?
independent
Which of the following coverage forms covers equipment during transportation, unloading and installation until control is given to the purchaser?
installation floater
Which of the following indicates a disrupted chain of events that frees the defendant from liability?
intervening cause
All of the following are true of the Fine Arts Floater, except: A It has a 90-day automatic coverage for newly acquired items B Coverage is written on a replacement cost basis C It covers such items as paintings, rare manuscripts and antiques D Coverage applies only to scheduled items
it is written on a valued basis, not replacement
Under Coverage A of a Dwelling Policy, all of the following are covered, except:
land, including the land on which the welling is located
The predictability of loss improves when the number of similar units increase because of which principle?
law of large numbers
Which of the following Coverages is not found under Section I of the Homeowners Policy?
liability
what would be included under Scheduled Farm Personal Property?
livestock
Medical Payments under Section II of the Homeowners Policy would not cover.....
loss of income of an injured person Coverage F (Medical Payments to Others), pays necessary medical expenses incurred within three years from the date of an accident. This may include surgical, dental, hospital, ambulance, professional nursing and similar expenses.
In what kind of state is Workers' Compensation insurance only available through a state-operated fund?
monopolisitic
Implied Warranties and the 3
mplied warranties aren't always written into the contract, but are generally understood by all parties and binding upon them. Examples of implied warranties include no deviation in voyage, legality, and seaworthiness.
T's office condominium is covered under a Condominium Commercial Unit-Owners Coverage Form. Which of the following is not covered on a primary basis? A Fixtures owned by the Association B Business personal property C Furniture D Improvements
n the event both the unit-owner's policy and the association's policy cover the fixtures, the unit-owner's coverage will be excess.
Up to what amount of coverage is provided for a $1,000 shed if the insured doesn't use an available fire extinguisher to put out a shed fire?
neglect eclusion- NOTHING, failed to save the property
Which of the following is defined as the failure to act in a reasonable and prudent manner?
negligence
Will liability policies cover damage to the insureds own property?
no
does the The Section I deductible apply to this endorsement?
no
does theThe Basic Causes of Loss Form covers water damage?
no
Which of the following would not be covered under Coverage C of the Special Dwelling Form? A Property of guests and servants B Household and personal property C Property of others that is in the care, custody and control of the insured D The insured's golden retriever
no pets, D
Which term describes the situation when two policies covering the same property contain different policy periods?
non on urrency
Which of the following vehicles is covered by Liability coverage under the Personal Auto Policy?
non-owned golf cart
The insured would be required to pay which of the following in the event of a Workers' Compensation claim? A Premiums for the appeal bonds when the insurer appeals to a higher court B Expenses the insured spends to appear in court to assist the defense C Any excess amounts incorrectly paid by the insurer D Interest applied to the final judgment for the delay in payment
ANY EXCESS AMOUNTS INCORRECTLY PAID BY INSURER
Under the HO-8 policy, the dwelling is valued on which basis?
Actual Cash Value
Under the Commercial Property policy, debris removal and fire department service charge coverage are examples of:
Additional Charges that are automatically included
Which of the following is covered under Section II of a Homeowners Policy? A Liability arising from a business pursuit B An injury to a guest of the insured C An injury to the insured's employee D An injury to the insured's 10-year-old son
An injury to a guest of the insured
When property is valued on a replacement cost basis, losses will be paid: A At an amount previously agreed upon by the insured and insurer B At market value of the damaged property C At the cost to replace with functionally equivalent property D At today's costs, without any deduction for depreciation
At today's costs, without any deduction for depreciation
A Personal Auto Policy is designed to cover: A Personal and commercial autos that are owned by an individual or family B Only the non-business use of a personal automobile C The use, by an individual and/or spouse only, of a personal automobile D An individual's or family's personal use of an auto
B
All of the following are true of the Fair Credit Reporting Act, except: A The Act protects the rights of the individual from overly intrusive information collection practices B A report can be changed by court action only C A consumer who was investigated must be informed whenever credit or insurance was denied because of an adverse report D A consumer has the right to obtain the substance of the information in the reporting agency file
B
Which of the following statements about Section II of the Homeowners Policy is false? A Insurer investigation expenses are paid in addition to the limits stated in Coverage E B Coverage F limits are subject to a deductible C The obligations of an insurer end when it pays damages equal to the policy limit for any one occurrence D Total liability Coverage resulting from any one occurrence may not exceed the Coverage E limit that is stated in the policy
not subject to a deductible
which coverages is provided under the Additional Coverage of Property Removed?
open peril coverage for 30days
Inland Marine Policies are generally written on what basis? A Special Causes of Loss Form B Basic Causes of Loss Form C Broad Causes of Loss Form D Open Perils
open perils
When coverage applies to a property loss by all perils except those specifically excluded, the policy is written on which basis?
open perils
Which of the following is false about the CGL policy form? A The per occurrence limit is the most the company will pay for damages under Coverage A and Coverage C, arising out of any one occurrence B The limits of the policy stated in the Declarations are the maximum amounts payable for the life of the policy C Section III of the Commercial General Liability Coverage Forms describes the limits of insurance D The general aggregate limit is the most the company will pay for all damages under Coverage A, Coverage B, and medical payments under Coverage C, except for products and completed operations claims
B The limits stated in the policy apply separately to each claim (and/or aggregate) within a policy period.
The maximum amount that a coverage will pay for loss to any one injured party regardless of overall policy limits, is known as the:
per person limit
The insuring agreement of a policy describes
perils that are covered
Which type of standard policy includes coverage options that would not exclude damage by flood?
personal auto
An insurance agent would recommend which of the following floaters to his client who is traveling to Europe for a month's vacation?
personal effects floater
Coverage for injury resulting from invasion of privacy is covered under which Endorsement?
personal injury
Which of the following would not be covered under Section II of the Homeowners Policy?
property damage to the property owned by an insured
Part E of the Personal Auto Policy states that after a loss the insured must:
protect the auto from further damage
Offering a premium discount not specifically included in the policy is called:
rebating
Damage to a building insured under the Businessowners Policy is valued on which basis?
replacement cost
After a claim has been paid under the Businessowners Liability Coverage, what happens to the recovery rights?
rights belong to the insurer
Which coverage is not included in a Workers' Compensation policy? A Second injury fund B Medical benefits C Employer's liability D Disability income benefits
second injury fund
Which of the following would not be covered under a Valuable Papers and Records Floater?
securities
The Garage Coverage Form may be written for
service station dealership public parking garage
what are Trip Transit Forms used to insure?
single shipments
Livestock is not eligible for coverage on which Farm policy?
special cause of loss form
Medical expenses and loss of earnings awarded to an injured party are considered:
special damages
Which of the following would be an insured under the CGL policy?
spouse of a partner
statutory defense
statute of limitations
An insurer with capital that is divided into shares, and is owned by shareholders, is considered a:
stock company
Which insurance provision prevents the insured from collecting twice for the same loss?
subrogation
Which of the following places insurance with a non-admitted insurer when insurance cannot be placed with an admitted insurer?
surplus lines produce
The Conditions list
the general rules and duties in the event of a loss under the polic
Policyholder G wants her PAP to insure her sedan, primarily used for sales calls, her husband's SUV for car-pooling, the station wagon that their daughter uses to drive to school, and the van their son uses part-time to deliver dry-cleaning. Which of the following cars will G's agent tell her is not eligible?
the van, no business delveries
Section II of a Homeowners policy may cover which of the following incidents? A The insured hits and injures a swimmer while enjoying a ride in an owned inboard motorboat B An insured's guest damages the stair railing during a visit C The homeowner's family dog bites their 2 year old son D Bodily injury caused by an insured's activities while picnicking at a city park
Bodily injury caused by an insured's activities while picnicking at a city park
Which of the following statements about liability insurance is false? A Property damage includes physical injury to tangible property and loss of use B Loss of consortium means the loss of companionship of a spouse C Personal injury includes libel, slander, and false arrest D Bodily injury includes personal injury, sickness and disease
Bodily injury does not include personal injury.
Bodily injury is best described as:
Bodily injury is any physical injury, including sickness, disease, and death caused by the acts or omissions of an insured. Bodily injury liability expenses can include medical bills, lost wages, mental anguish, and pain and suffering.
Which of the following is covered by Medical Payments under the CGL?
Bodily injury to an insured's customer while shopping on the insured's business premises
medical payments are made regardless of fault or negligence: true or false
true
true or false: First Aid Expenses do not apply to the insured or resident of the household.
true
true or false: The Part A limit of liability under the Personal Auto Policy makes clear the maximum amount of insurance that is available in various circumstances.
true
When the insurance company and insured cannot agree upon the amount of the loss, the person selected to help the two hired appraisers is called a(n):
umpire
Which statement about the BOP's Hired Auto and Non-owned Auto endorsement is correct? A Coverage is limited to owned vehicles B It changes coverage for owned autos from named perils to open perils C Business auto coverage for a vehicle the insured rents is added to the coverage D It covers personal use of a non-owned vehicle
Business auto coverage for a vehicle the insured rents is added to the coverag
To whom must the insured assign recovery rights after being paid by the insurance company for a collision loss caused by another party? A The insured must assign rights to the negligent party to pay the insurance company B The insured does not have to assign her rights to anyone as she has been paid for the loss C The insured must assign the rights to the insurance company to recover from the negligent party or insurer D The insured must assign rights to the negligent party's insurer to pay the insured's company for the damage
C
Statements in the application that are guaranteed true, but later found to be false at the time of application, may result in which of the following?
voidance of the contract
An applicant makes a statement on the insurance application, which becomes part of the contract, that she has an alarm system which qualifies her for a premium discount. This statement is considered a:
warranty
Which of the following provides coverage for commercial crime losses which occur during the policy period and are discovered within a specified time? A Employee Theft B Occurrence Form C Loss-Sustained Form D Discovery For
C The loss sustained form covers losses that occur during the policy period and are discovered within 12 months of policy termination.
Which of the following is false about the CGL's two coverage forms? A The claims-made form covers losses that occur after the retroactive date and before the policy expiration date B Coverage is triggered when an occurrence takes place during the policy period C Coverage under the occurrence form is based on when the loss is reported D The retroactive date is unique to the Claims-Made form
C, OCCURENCE IT DOESNT MATER
Which of the following is true about the Builders Risk Floater? A Scaffolding is excluded from coverage B Coverage can be provided for farms C The floater covers the building for named perils D Fixtures that will become part of the building are not covered until they are installed
CAN BE COVERED FOR FARMS The Builders Risk floater covers commercial, residential, and farm buildings, fixtures are covered until installed, and the coverage is open peril with some limits for theft and vandalism coverages.
The right to sue a person to recover property is called: A Voir dire B Common law C Litigation D A chose in action
CHOSE IN ACTION
Which of the following types of liability limits allow the most to be paid for a single occurrence without regard for the number of claimants? A Per Person Limit B Comprehensive Limits C Combined Single Limit D Split Limits
COMBINED SINGLE LIMIT
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 or Tunnels B Domestic Shipments C Imports and Exports D Commercial Buildings
COMMERCIAL BUILDINGS
Part D of the Personal Auto Policy provides which of the following coverages? A Medical Payments Coverage B Coverage for Damage to Your Auto C Liability Coverage D Underinsured Motorists Coverage
COVERAGE FOR DAMAGE TO YOUR AUTP
Which of the following types of liability limits allow the most to be paid for a single occurrence without regard for the number of claimants?
Combined Single Limit
Comprehensive Coverage under Physical Damage Coverage of the Business Auto Coverage Form, includes all of the following, except: A Collision B Lightning C Glass Breakage D Theft
Comprehensive Coverage under the Business Auto Coverage Form is a broad open perils coverage that covers damage from perils not excluded. Collision is excluded under the policy.
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?
Computer Fraud
What is the difference between the policy forms covering 'computer fraud' and 'fund transfer fraud'?
Computer fraud applies when a computer is used to illegally transfer money, and fund transfer fraud applies when a computer generates a fraudulent funds transfer orde
Which of the following is not automatically included in a Garage Coverage Form? A Premises liability B Contractual Liability C Mandatory $100 deductible for Completed Operations losses D Garagekeepers Coverage
Contractual Liability
The equal sharing of a loss by two or more insurers until the loss is paid, or until each insurer has exhausted its limits of insurance, whichever comes first, is the description of which of the following?
Contribution by equal shares
Which of the following is correct regarding Other Insurance under Part A of the Personal Auto Policy? A If there is other liability coverage applicable to the insured auto, the policy will share the loss with the other policy on an excess basis B If there is other liability coverage applicable to the insured auto, the policy will pay the proportion that the limit of liability bears to the total of all limits C The Personal Auto Policy is the primary policy in all cases of duplicate coverage D There is no coverage for non-owned vehicles if there is other coverage applicable to such vehicles
Coverage A of the Personal Auto Policy shares with other applicable liability insurance on a proportional basis. However, it is excess over other insurance on non-owned autos.
Which of the following would be found in Section I of a CGL? A List of insureds under the policy B Coverage for bodily injury and property damage C The Commercial General Liability conditions D The policy definitions
Coverage A provides coverage for bodily injury and property damage liability. The conditions are found in Section IV, the definitions are found in Section V, and Who Is An Insured is found in Section II.
Which statement is false regarding the completed operations exposure
Coverage includes replacement of the work that caused the loss
Builders Risk Forms
Coverage may be written with any of the Cause of Loss Forms (Basic, Broad, or Special).
The HO-3 dwelling and other structures coverages are insured against which perils? A Modified Perils B Broad Perils C Basic Perils D Open perils
Coverages A and B of the HO-3 are insured on an open perils basis in which all perils are insured unless specifically excluded.
Which statement is false? A Obligations of an insurer end when it pays damages equal to the policy limit for any one occurrence B Total liability coverage resulting from any one occurrence may not exceed the Coverage E limit that is stated in the policy C Insurer investigation expenses are in addition to the limits stated in Coverage E D Coverage F limits are subject to a deductible
D
All of the following are considered to be insured under a Homeowners Policy, except: A A 79-year-old father-in-law who is living with an insured B A friend's 14-year-old daughter who is living with an insured C A son or daughter while away at college, who is 23 D A 25-year-old friend who is living with an insured
D The definition of insured does not include anyone over the age of 21 that is not a relative.
An insured has auto insurance with both Company A and Company B; how much will Company B have to pay for a covered loss of $3,000 if Company A's Limit of Liability is $100,000 and Company B's is $200,000? A $500 B $3,000 C $1,000 D $2,000
D, 2000$
Flood is a specified cause of loss under which section of the Garage Coverage Form? A Section II B Section I C Section III D Section IV
D, SECTION 4 SPECIFIES PERILS
All of the following statements about the Fine Arts Floater are true, except: A It covers such items as paintings, rare manuscripts and antiques B It has a 90-day automatic coverage for newly acquired items C Coverage applies only to scheduled items D Coverage is written on a replacement cost basis
D, VALUED BASIS
Of the Dwelling Policy Forms, which one does not cover damage by burglars? A Broad Form (DP-2) B Basic Form (DP-1) C Special Form (DP-3) D None of the Dwelling Policies cover Damage done by Burglars
DP-1
Which of the following damages would be covered under the Liability Coverage of the Personal Auto policy?
Damage caused to a rented garage by the insured auto
Which statement regarding the Businessowners Policy is not correct? A The personal injury limit is written on a per person or organization basis B The medical expense limit is written on a per person basis C The Damage to Premises Rented to You limit is written on a per person basis D The bodily injury limit is written on a per occurrence basis
Damage to Premises Rented to You is written on a per occurrence (fire or explosion) basis.
Which of the following homeowners coverages does not have a deductible? A Dwelling B Damage to Property of Others C Other Structures D Personal Property
Damage to Property of Others is an Additional Coverage under Section II, which is not subject to a deductible.
Which statement is true concerning Section II of a Homeowners Policy? A Damage to Property of Others coverage is provided up to a specified limit regardless of negligence B Medical payments coverage is available for the insured and resident relatives C Medical payments will pay for a maximum of 1 year from the date of the accident D Medical payments coverage is not available for a residence employee
Damage to Property of Others pays up to $1,000 regardless of whether the insured is liable or not.
Why is this wrong:Damage to Property of Others coverage is provided up to a specified limit regardless of negligence
Damage to Property of Others pays up to $1,000 regardless of whether the insured is liable or not.
Under Part A of the Personal Auto policy, which of the following would be covered?
Damage to a parked car
The part of an insurance contract that varies with each individual policy, but is still a mandatory part of the policy, is the:
Declarations
Which federal entity administers the Terrorism Insurance Program created by TRIA?
Department of the Treasury
The Terrorism Insurance Program created by TRIA is administered by which of the following federal entities?
Dept of the Treasury
When firefighters extinguish a house fire with water, the water damage is considered a(n):
Direct loss
The standard policy structure for insurance policies includes all of the following sections, except: A Duties B Insuring agreement C Conditions D Exclusions
Duties=found in the policy conditions
After noticing the disappearance of office supplies from within a private office facility, which coverage might an insured add to a commercial crime policy?
Employee theft or dishonesty
Which of the following is covered under Section II of the Businessowners Coverage Form? A Professional Liability B Medical payments to volunteer workers C Employers Liability D Watercraft Liability
Employers liability, professional liability, and watercraft liability are all excluded under the policy.
Which coverage is not an Additional Coverage under the Businessowners Coverage Form? A Equipment breakdown B Increased cost of construction C Business income and extra expense D Pollutant clean up and removal
Equipment Breakdown is an Optional Coverage, not an Additional Coverage.
Which of the following is not included in the definition of Money under Commercial Crime Coverage?
Evidence of debt Money includes coins, currency, bank notes, travelers checks and money orders. Evidences of debt are not negotiable items.
Under the CGL, which of the following would exclude from coverage the legal liability associated with a product?
Expected or intended injury
The North Carolina Motor Vehicle Reinsurance Facility provides automobile insurance to each of the following, except: A A person whose vehicle has been principally garaged in North Carolina for at least 6 months B A farmer who wants to insure farm equipment C Military personnel stationed in North Carolina who intend to return to their home state D A person who is unable to obtain insurance in the regular market
FARMER WHO WANTS TO ENSURE FARM EQUIPTMENT
Coverage D of the Dwelling Policy provides coverage for: A Additional Living Expenses B Other Structures C Fair Rental Value D Trees, Shrubs, and Other Plants
Fair Rental Value
Which of the following losses would be covered under the Dwelling Policy DP-1?
Fire damage to building materials on the insured premises
With respect to marine policies, the term uncontrolled means:
Forms that are not standardized by any rating bureau
When a property insurance policy states that damaged property will be replaced with other property that performs the same function with similar efficiency but is not identical to the damaged property, the policy is written on which of the following bases? A Agreed Value B Actual Cash Value C Valued Policy D Functional Replacement Cost
Functional Replacement Value represents the cost to replace property with other property that performs the same function with similar efficiency, although the replacement property is not identical to the property being replaced.
Section III of the Garage Coverage Form provides which coverage? A Products liability B Liability for owned vehicles that are used in the business C Liability for garage operations D Garagekeepers coverage
GARAGEKEEPERS COVERAGE
Losses that cannot be calculated objectively, such as pain and suffering or mental anguish, are considered:
General damages
Driving while under the influence of alcohol is an example of: A Contributory negligence B Vicarious Liability C Assumption of risk D Gross negligence
Gross Negligence exhibits a lack of care through recklessness or deliberate indifference to the well-being of others.
Which of the following provisions in an Ocean Marine policy covers direct damage caused by bursting of boilers? A Running Down Clause B Boiler and Machinery Clause C Mechanical Failure Clause D Inchmaree Clause
INCHMAREE CLAUSE
Which statement is true of the Equipment Breakdown Protection Coverage Form? A Every policy automatically includes Business Income and Extra Expense Coverage B It may be written as a coverage part of the Commercial Package Policy C Explosion and damage during testing are covered D Defects, erasures, errors, limitations or viruses in computer equipment are included in the definition of breakdown
IT MAY BE WRITTEN AS A COVERAGE PART OF THE COMMERCIAL PACKAGE POLUCY
All of the following are excluded under Part A of the Personal Auto Policy, except: A Use of a non-owned vehicle without permission B Damage caused by a vehicle designed mainly for off road use C A vehicle driven by an unlicensed driver D Intentional damage caused by the insured
If a covered driver is using the covered auto with permission, the driver is still covered even if not properly licensed.
An insured has auto insurance with both Company A and Company B; how much will Company B have to pay for a covered loss of $3,000 if Company A's Limit of Liability is $100,000 and Company B's is $200,000? A $1,000 B $500 C $2,000 D $3,000
If other auto liability insurance applies, each policy will pay its proportionate share of the loss. Company B's limit is 2/3 of the total coverage by both policies. 2/3 of the total loss of $3,000 = $2,000.
Part A of the Personal Auto Policy?
If there is other liability coverage applicable to the insured auto, the policy will pay the proportion that the limit of liability bears to the total of all limits
For which of the following persons is the Drive Other Car endorsement intended?
Individuals who do not own an auto
Commercial General Liability Conditions (Section IV) under the Claims-Made Form 4 facts
Insurance applies as if each named insured were the only named insured, and separately to each insured against whom the claim is brought The insured cannot sue the insurer until all terms of the policy have been fully complied with The insured must maintain records necessary so the insurer may compute the premium Neither bankruptcy nor insolvency of the insured or of the insured's estate relieves the insurer from its obligations.
The Insurance Guaranty Association provides coverage under which of the following circumstances?
Insurance company is insolvent
Which of the following is true about an aggregate limit?
It applies to losses from all occurrences within a specified policy period
Yacht Policy
It is an Ocean Marine Form and provides both property and liability coverage designed for large, ocean-going vessels within a specific territory, a Yacht Policy includes Hull, Protection and Indemnity, Medical Payments, and Jones Act coverages.
what is the Boatowners policy similar to ?
It is similar in design to a Homeowners Policy and similar in coverage to the Personal Auto Policy The Boatowners policy is a package policy that provides both property and liability coverage and is similar in design to the homeowners policy. The coverage it provides is similar to that provided by the personal auto policy. The policy is generally used to insure boats that can be towed by a car.
Which of the following best describes a liability policy that is written on a primary basis?
It is the policy that pays first with respect to other policies
Which of the following is true regarding the Boatowners Policy? A It provides open perils coverage, and losses are settled on a replacement cost basis B It provides named perils coverage, and losses are settled on an actual cash value basis C It provides open perils coverage, and losses are settled on an actual cash value basis D It has a standard deductible of $250
It provides open perils coverage, and losses are settled on an actual cash value basis
Construction material having a fire-resistance rating between 1-2 hours one hours for walls, floors and roofs, AND EXTERIOR WALLS OF MASONRY is
Jointed masonary
Which property insurance condition states that a suit may not be filed by the insured against the insurer under certain circumstances?
Legal Action Against Us
The Legal Action Against Us under Part F - General Provisions of the Personal Auto Policy, states which of the following?
Legal action may not be brought against the insurer until the insured has complied with all the terms of the policy
Which of the following claims would be covered under the Personal Injury Endorsement attached to an HO-3 Policy?
Liability arising from publication of material that violates another person's right of privacy
Vicarious Liability?
Liability for the acts of another/employee
Insurer G decides to increase the first aid benefits for one of its insureds for no extra premium. What is the name of the provision which automatically applies this broader coverage without additional premium to all policies currently in effect by the same insurer? A Assumption of risk B Assignment C Subrogation D Liberalization
Liberalization provides that when coverage is broadened without an additional premium charge, it automatically applies to all policies currently in effect.
All of the following are true of Section II of a Homeowners Policy, except: A Medical expense coverage is payable to guests B Medical payments coverage would apply if the family dog were to bite someone 3 blocks from home C Loss assessment charges against the insured by a property owner's association are excluded D First aid expenses are automatically included
Loss assessment charges against the insured by a property owner's association are covered up to $1,000.
Which of the following expenses would not be reimbursed under the Workers' Compensation policy?
Loss of insured's earnings because the insurer requested the insured come to court
Losses vs contents, dwelling policy special form
Losses to the dwelling are paid on a replacement cost basis, while the contents are paid on an actual cash value basis. Cracking of walls and theft are excluded under the policy.
Which statement is false under a Homeowners Policy? A An endorsement may be added to cover the contents on a replacement cost basis B Money is covered up to $500 per occurrence C The scheduled personal property endorsement provides open perils coverage D Theft of silverware is covered up to $2,500
MONEY IS 200$
Choose the physical damage claim that would be covered under the Personal Auto Policy.
Malicious mischief is covered under Other Than Collision
Which statement regarding the Medical Payments Coverage of the Business Auto Policy is true? A Medical Payments Coverage also pays loss of income during disability arising from a covered accident B The BAP does not automatically include Medical Payments Coverage C Medical Payments Coverage is designed to provide medical payments coverage for employees D Coverage is limited to medical expenses incurred in the first year after the accident
Medical Payments Coverage is available by endorsement to the Business Coverage Form. The coverage is not automatically included in the commercial auto forms.
why is this wrong: Medical payments cover personal injury
Medical payments pays for bodily injury without regard as to fault by the insured. Personal injury expenses are not covered.
Choose the true statement concerning Homeowners Policies. A The HO-4 provides open peril coverage on both the dwelling and contents B Section I limits coverage on fire department service charge to $100 C The Section I deductible does not apply to property covered under the Scheduled Personal Property Endorsement D Section I limits coverage on utility trailers up to $500
NO DEDUCTIBLES, C
Which provision specifies that no coverage applies if the loss benefits a person who has care, custody, or control of the insured's property?
No Benefit to Bailee
The Scheduled Articles Floater provides which of the following coverages to described property? A Blanket coverage B Replacement cost C Named Perils D Open Perils
OPEN PERILS
All of the following are true of the Business Auto Coverage Form, except: A Coverage is primary on owned autos and excess on non-owned autos B Medical payments coverage may be added by endorsement C Coverage may be written on owned private passenger autos D Uninsured Motorist Coverage is included in Section II
OPTIONAL ENDORSEMENT, D
Is ocean marine coverage regulated?
Ocean Marine coverage is generally unregulated with respect to both forms and rates.
All of the following are unfair trade practices in insurance, except: A Giving capital stock, benefit certificates or shares in a corporation, securities, special or advisory board contracts, or contracts promising returns and profits as inducements to purchase insurance B Making misleading representations or fraudulent comparisons of policies; misrepresenting a policy's terms or benefits; or making misleading representations as to an insurer's financial condition C Making any false statement that is maliciously critical or derogatory of any insurer's financial condition with intent to injure someone in the insurance business D Offering any rebate, discount of premium, advantage, or valuable consideration specified in the policy
Offering any rebate, discount of premium, advantage, or valuable consideration not specified in the policy is an unfair trade practice in insurance.
Payroll is covered for how long under Businessowners Business Income coverage? A 12 months B Payroll is not covered C 6 months D 60 days
60DAYS
Which of the following vehicles IS covered under Part B - Medical Payments of the PAP?
A car used to carpool with colleagues
Pure Risk?
A fire, tornado, or stf
Which of the following is true regarding liability insurance? A A liability policy provides coverage for unintentional torts B A liability policy provides coverage for all torts C A liability policy provides coverage for criminal acts D The liability policy provides coverage for all acts of wrongdoing
A liability policy is intended to provide protection in the event the insured's negligence causes bodily injury or property damage to others for which the insured becomes legally obligated to pay damages. Liability is an unintentional tort. Neither intentional torts nor criminal acts are covered by a liability policy.
Which of the following statements regarding types of property loss is false? A Fire damage to an insured home is considered a direct loss from a fire B Direct losses include additional living expenses C A direct loss is a loss resulting directly from a peril insured against D An indirect loss is the same as a consequential loss
Additional living expenses are an indirect loss, not a direct loss.
covered under Coverage E of the Dwelling Policy?
Additional living expenses incurred after a covered direct loss
What is the term for the idea that some risks are less desirable than average risks, and that these risks tend to seek coverage to a greater extent than more favorable risks?
Adverse Selection
SDIP plan surcharges
An insurer may provide for premium surcharges for insureds having less than 3 years' driving experience as licensed drivers.
An insured looking to cover the dwelling against damage from hail would need to purchase which dwelling form?
Any form except for the unendorsed DP-1 Hail is a covered peril under the DP-3, the DP-2, and the DP-1 if purchased with the Extended Coverage endorsement.
whats a attractive nuisance
Attractive nuisances are artificial or uncommon objects that attract children who are too young to realize the possible danger associated with them.
Choose the false statement about Medical Payments coverage under the Personal Auto Policy. A The policy limit is applied on a per occurrence basis, not per person B Persons other than the named insured and family members must be occupying the insured auto in order to be covered C The named insured and family members are covered if injured while occupying any auto D The named insured and family members are covered if injured as pedestrians
Auto medical payments coverage applies a per person limit.
Non-owned autos under the Business Auto Coverage Form include:
Autos owned by the insured's employees while being used in the insured's business
The Businessowners Liability Coverage Form includes coverage for bodily injury, property damage, personal injury and advertising injury to which coverage applies, plus: A Liquor liability B Liability assumed under an insured contract C Employers liability D Mobile equipment being transported on an auto owned or operated by an insured
B
Which of the following is false about the CGL's two coverage forms? A The claims-made form covers losses that occur after the retroactive date and before the policy expiration date B Coverage under the occurrence form is based on when the loss is reported C The retroactive date is unique to the Claims-Made form D Coverage is triggered when an occurrence takes place during the policy period
B
Which of the following must participate in the Workers' Compensation Assigned Risk Plan? A All insurers authorized to do business in the state B Insurers that are authorized to write Workers' Compensation in the voluntary market C Insurers that write Workers' Compensation insurance exclusively D All domestic insurers in the state
B
Which of the following perils would be covered under a Dwelling policy? A Water leakage in a driveway B Water discharged by a plumbing failure C Water accumulating below the surface of the ground D Overflow of water from a sump pump
B, Water damage is excluded if caused by surface water, tidal water, or leakage through a building, foundation, or other structure.
Which DP form does not cover burglar damage?
Basic Form (DP-1)
Bodily injury includes
Bodily injury includes such items as medical expenses, lost wages, mental anguish, death and disfigurement.
Which is a TRUE statement about motor vehicle liability policy requirements? A Policy does not cover the named insured using a non-owned vehicle B The minimum policy liability limits are 25/50/10 C Uninsured motorist coverage may be up to $1 million per person/per accident D Policy must automatically cover a newly acquired auto for 14 days
C
Which of the following is covered under Aircraft Liability Insurance? A The incidental auto liability exposure of private pilots B Legal liability of owners and operators of aircraft hangers and aircraft repair shops C Liability claims arising from the ownership, maintenance or use of an aircraft D Owners of private, municipal, and commercial airports
C Aviation Insurance Liability includes Aircraft Liability, Airport Liability and Hangerkeepers' Liability. Aircraft Liability insurance covers claims arising from the ownership, maintenance, or use of an aircraft.
e Collision or Running Down Clause in Ocean Marine Insurance covers:
Collision damage to another vessel when the shipper is liable
Which of the following defenses against negligence prevents recovery for injuries caused by a negligent party if the claimant was also negligent? A Assumption of Risk B Contributory Negligence C Intervening Cause D Comparative Negligence
Contributory Negligence prevents recovery for damages caused by a negligent party if the claimant was negligent to any extent. For example, if the claimant is 5% negligent and the wrongdoer is 95% negligent, the claimant is not permitted to collect damages.
Which type of construction material has a fire-resistance rating between one and two hours for walls, floors and roofs? A Fire Resistive B Joisted Masonry C Non-Combustible D Modified fire-resistive
MODIFIED FIRE-RESISTIVE
Under the Voluntary Compensation Endorsement to a Workers' Compensation Policy, an employer must provide which of the following?
The class of employees to be covered
Speculative Risk?
Wall streets decline in the stock market
The party for whose benefit a surety bond is written is the: A Surety B Guarantor C Obligee D Principal
c
What is the maximum the Supplementary Payments coverage of a BAP will pay for the cost of bail bonds?
$2000
Under the PAP, after a collision the insured is entitled to Transportation expenses up to:
$600
What is the limit of insurance available under an HO-3 policy for a tree totally damaged in a hail storm? A $1,000 B 0% C $250 D $500
0$
