ExamFX
Applicants for a resident producer license must meet the following requirements EXECPT
Be at least 21 years old
Under which legal defense is there an appointment of damages based upon the degree of fault of each of the plaintiffs and the defendant?
Comparative negligence
ACE Insurance uses dwelling inspections to determine whether applicants are eligible for home insurance. Which of the following can ACE Insurance use to determine which dwellings will be inspected?
Dwelling size
Which of the following statements is true concerning a workers compensation and employers liability policy?
Exposures in states listed on the information page are covered
Space Age Rockets makes model rocket supplies and has 12 employees. The company is located in Atlanta, GA. Georgia has compulsory workers compensation laws. Space Age's owner thinks that his company is too small and unprofitable to carry the workers comp plan mandated by the state. Possible consequences of noncompliance include all of the following EXCEPT
Forced payment of billing for services rendered by any private insurer that "binds" coverage based on an employee's request for coverage
Restoring an insured financially after a claim is known as
Indemnity
Which of the following types of property is NOT moveable?
Real property
What are the types of compensatory damages?
special and general
A trucking company has $1 million umbrella policy in place. The businessowner agrees to maintain a 200/500/100 limit auto liability, and a personal liability of $400,000. After a car accident, the business is sued. Injuries are awarded to a single injured party in the amount of $300,000 it tuned out that the business actually carried only 100/250/50 auto liability limits. What is the total amount the umbrella policy will pay?
$100,000
An insured has an automobile policy with limits of 100/300/50 and a deductible of $1,000. He is involved in an auto accident and crashes into another driver's auto. The other driver suffered $125,000 in injuries and had $25,000 worth of damage to his car. The insured's vehicle has damage in the amount of $1,200. The total payment made under the insured's policy is
$125,200
An employee was injured at work and is now totally disabled and unable to do any work. How much will his weekly indemnity benefits from Workers Compensation be?
80% of his after-tax wage
Which of the following would be required to become licensed as an insurance producer?
A customer service representative who solicits no more than one policy a year.
An insured believes that his insurer is not properly fulfilling its obligations regarding his policy. What section of the policy will give the insured more information about specific duties of the insurer?
Conditions
Under which legal defense may a claimant's recovery be defeated if the defendant can show that claimant contributed, no matter how slightly, to the injury or damage?
Contributory negligence
Which of the following entities is eligible for a businessowners policy?
Convenience stores
The supplementary payments section of the commercial general liability policy would cover
Court costs assess against the insured in a suit.
Which of the following will be covered under Coverage A - Bodily Injury and Property Damage in the commercial general liability policy?
Third-party bodily injury due to the insured's negligence
When an employee got her new job, she was told that the local government required her to get a bond to guarantee that she would follow the city laws and regulations associated with her job. What kind of bond does the employee need?
License and Permit Bond
Which of the following covers the interest of a secured lender in personal property?
Loss payable clause
What is the maximum limit for property protection insurance benefits for property damage in a single accident?
$1,000,000
An auto insurer must write uninsured motorist coverage in limits that are at least
$250,000/$500,000/$10,000
All of the following are allowable reasons for an insurer to decline an application for Homeowners insurance EXCEPT
Owning a dwelling containing 4 units
Which of the following is most likely INELIGIBLE for coverage under the businessowners policy?
An auto mechanic shop
For negligent liability to exist, which is NOT a requirement?
An intervening cause
A personal umbrella policy may act as excess over any of the following insurance coverage policies EXCEPT
Auto collision coverage
Lost Treasures has a guard dog in a fenced lot to protect the salvage yard. The dog scared a passerby, who now claims that it was a traumatic experience and that he now suffers from recurring nightmares. A claim for personal injury of $5,000 is filed against Lost Treasures. Why will the personal and advertising injury liability section (Coverage B) of the CGL policy cover this claim?
Mental anguish is a covered injury
What are the two sources for workers compensation insurance?
Monopolistic state fund and competitive market
How many hours of Continuing Education are required to maintain a Counselor's license?
None
Which of the following losses would be covered under Coverage B - Personal and Advertising Injury Protection of commercial general liability insurance?
Nonphysical injury to a third party
Which statement best describes agreement as it relates to insurance contracts?
One party accepts the exact terms of the other party's offer
A pharmacy offers a delivery service to its customers. When the delivery driver parked his truck in from of a customer's home, someone broke into the delivery truck and stole the money inside the vehicle. Which crime coverage will cover the loss of the money?
Outside the premises (theft, disappearance or destruction)
A policy contains a consent to settle a loss provision, which requires the insurer to obtain the consent of an insured before the settlement of a claim. With this in mind, what kind of liability policy does the insured most likely have?
Professional Liability
Which of the following is NOT available in a package policy?
Professional liability
Which of the following actions does NOT constitute false advertising?
Stating that dividends are not guaranteed
In contrasting stock insures with mutual insurers, which statement is true?
Stock insurers are owned by the shareholders and issue nonparticipating policies.
All of the following states regarding personal property coverage in the homeowners program are correct EXECPT
The HO-3 policy covers the mysterious disappearance of personal property
Which of the following is NOT one of the requirements for obtaining a nonresident license in Michigan?
The applicant must complete prelicensing education and examination to the nonresident state
The insured's guest cottage, which is insured under his farm policy, is being rented by a young couple. When one of the renters is injured in the rented property, the insured files a claim under his farm liability coverage. How will the coverage respond?
The claim will not be covered
Late one night on his way home from a local bar, a man runs his covered auto into an insured's car. The man was operating his vehicle while under the influence of alcohol. The insured had no personal injuries, but her car had damage. Her insurance policy paid for the damages to her car. The subrogation provision in her policy allows
The insurer to attempt to recover the damages from the man and/or his insurance company
What is an insured contract?
Those contracts that are automatically covered under the exposure of premises coverage in a general liability insurance contract
Who participates in the Michigan Automobile Insurance Placement Facility?
All authorized insurers writing auto insurance.
When reviewing a standard workers compensation and employers liability policy, the limits of coverage are described in Part One of the policy. The dollar limits of the benefits provided are stated
In the state workers compensation law itself
Which of the following injuries may be covered under Coverage C - Medical Payments of a commercial general liability policy?
Injuries to a member of the general public that occures on a premises.