Final Missed (2)

Which crime coverage form is used to cover securities held in trust by another party as collateral for some obligation? a) Coverage M - Safe Depository Liability b) Coverage J - Securities Deposited with Others c) Coverage K - Liability for Guests' Property - Safe Deposit Box d) Coverage L - Liability for Guests' Property - Premises

B

In the split limit coverage in personal auto policies, which limit indicates the maximum amount the policy will pay for bodily injury per person? a) First limit b) Second limit c) Third limit d) Combined limit

A

Under Commercial Crime Coverage Form K - Liability for Guests' Property - Safe Deposit Box, which covered is included? a) Loss resulting from acts of employee dishonesty b) Liability assumed under a written agreement c) Loss resulting from the insured's release of any other negligent party from their legal liability d) Damage caused by inherent vice, insects, animals, wear and tear, and gradual deterioration

A

What is the minimum required medical benefit coverage in motor vehicle insurance policies sold in this state? a) $5,000 b) $10,000 c) $15,000 d) $25,000

A

What type of compensatory damages will pay for pain and suffering and disfigurement? a) General b) Special (specific) c) Tort d) Normal

A

When Commercial Crime Coverage Form M - Safe Depository Liability is written, what must be attached to the policy? a) The Safe Depository General Provisions b) The Safe Depository Direct Loss Provisions c) The Robbery and Safe Burglary Provisions d) The General Provisions

A

Which of the following would NOT be considered an unfair and deceptive practice? a) Controlled business b) Rebating c) Defamation d) Misrepresentation

A

An insurance company receives an application with some information missing and issues the policy anyway. What is this called? a) Aleatory b) Waiver c) Estoppel d) Subrogation

B

To comply with requirements for insurance for public liability under the Motor Carrier Act of 1980, which endorsement is added to motor carrier coverage form? a) MCS-70 b) MCS-90 c) MCS-80 d) Garage

B

What term includes damage where the insured peril was the proximate cause of loss? a) Negligent loss b) Direct loss c) Indirect loss d) Consequential loss

B

Which of the following statements is NOT true regarding a personal umbrella liability policy? a) It provides excess liability coverage over underlying personal liability. b) It provides errors and omissions coverage for an agency. c) It may cover certain exposures not provided under the primary layer. d) It may require the payment of a self-insured retention.

B

Which of the following statements would be an example of a product liability claim? a) The insured's product has to be recalled because of an expiration date. b) Faulty packaging of a cereal caused spoilage that resulted in someone getting sick. c) An insured, while delivering product to a customer, hits another car with the delivery truck causing bodily injury and property damage. d) Someone tampers with the insured's product causing the insured to have to recall all products that are on the shelf.

B

General-cargo ships are used to transport a) Coal, grain, phosphates, and other loose cargo. b) Break-bulk cargo. c) Motor vehicles. d) Containerized cargo.

B General cargo ships are generally used to carry break-bulk cargo. Break-bulk cargo is cargo that is too large to be carried in a container or boxed goods, or too small to justify use of a full container.

A loss has occurred before the first report has been filed on a value reporting coverage form. Which is NOT true? a) Full amount of loss up to the policy limit is paid if the loss occurs before the first report due date. b) 75% of the loss is paid if the loss occurred after the first report due date. c) Never more than 75% of the loss is paid. d) Provisional premium is based on 75% of the full amount of coverage.

C

An insured relocated to another state for work. However, she still owns and insures a house in this state, but has had no one living in it for 3 months. She is also storing some furniture and clothes in the house. From an insurance standpoint, the insured's house is considered a) Under repair. b) Vacant. c) Unoccupied. d) Condemned.

C

Employment practices liability insurance (EPLI) would NOT cover claims arising from a) Wrongful termination. b) Discrimination. c) Deliberate law violation. d) Sexual harassment.

C

Insurers are required to keep records. When may the Department examine these records? a) Every year b) Every 5 years c) At any time d) Never The Department may conduct an exam when it sees fit.

C

What is the civil penalty for violating a cease and desist order of the Commissioner? a) $1,000 b) $5,000 c) $10,000 d) $50,000

C

What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine policy? a) $20,000 all expenses incurred during a 12-month period b) $5,000 for all expenses incurred during a 12-month period c) $10,000 for all expenses incurred during a 12-month period d) $15,000 all expenses incurred during a 12-month period

C

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business? a) Assumed b) Express c) Implied d) Apparent

C

Which of the following is NOT true concerning the fair rental value coverage provided in a dwelling policy? a) Coverage continues until repairs are completed. b) The period of time to repair or replace is not limited by the expiration date of the policy. c) Loss or expense caused by the cancellation of a lease is covered. d) It pays for the loss of rent you would have collected less any expenses that would not have continued.

C

Which of the following terms refers to such disabilities as the loss of a limb, hearing, or eye sight? a) Temporary total disability b) Temporary partial disability c) Permanent partial disability d) Permanent total disability

C

A producer has successfully completed 52 hours of continuing education (CE). How many hours can the producer apply to her current reporting period, and how many hours can she carry toward the next reporting period? a) 24 hours will be applied to the current reporting period, and 28 can be applied to the period immediately following. b) 26 hours will be applied to the current reporting period, and the remaining 26 can be applied to the period immediately following. c) Only 24 hours of the 52 earned may applied to this reporting period. d) 24 hours will be applied to the current reporting period, and 24 can be applied to the period immediately following.

D

All of the following are essential elements of a commercial package policy (CPP) EXCEPT a) Interline endorsements b) Declarations page c) Policy conditions d) Valuations and/or settlement provisions

D

All of the following statements describe the concept of strict liability EXCEPT a) Claimants may need to provide proof that a product defect caused an injury. b) It is imposed regardless of fault. c) It is applied in product liability cases. d) It is imposed on defendants engaged in hazardous activities.

D

Farm fences (except field and pasture fences) are covered by which farm coverage form? a) Coverage A b) Coverage B c) Coverage E d) Coverage G

D

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? a) 7 days b) 10 days c) 3 days d) 5 days

D

In addition to income benefits, how much will a dependent survivor receive as a funeral benefit for a deceased employee covered under workers compensation? a) $1,000 b) $3,000 c) $5,000 d) $7,000

D

Professional photographers and musicians may insure their equipment with a) A theatrical property coverage form. b) A contractors equipment floater. c) An installation floater. d) A commercial articles floater.

D

Under which of the following circumstances can financial institutions share insurance coverage information with third parties, for the purpose of soliciting the purchase of insurance? a) Whenever it is requested by the Commissioner b) Under no circumstances; nonpublic personal financial information cannot be shared with third parties c) If a consumer decides to opt out d) If a consumer does not sign and return the notice of disclosure within 30 days

D

Which of the following insurance options would be considered a risk-sharing arrangement? a) Stock b) Mutual c) Surplus lines d) Reciprocal

D

Which of the following is an example of a protective safeguard in a businessowners policy? a) Errors and omissions insurance b) Recordkeeping c) Professional liability endorsement d) Automatic sprinkler system

D

Which of the following may be covered by electronic data processing coverage form under an inland marine policy? a) Computer hardware that is specifically scheduled. b) Extra expense the insured incurs to continue the business following a loss. c) Data processing media, including magnetic tapes or paper tapes, punch cards and discs d) All of these are covered.

D

Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses? a) Exclusions b) Declarations c) Insuring agreement d) Additional coverage

D

The members of a limited liability company are insureds under a businessowners policy (BOP) if a) Each individual is listed as a named insured on the policy. b) A single individual member of the limited liability company is listed as the named insured. c) Members of a limited liability company cannot be insureds under a BOP. d) The limited liability company is designated as the named insured.

D If the named insured is designated as a limited liability company, the named insured and members also are insureds, but only with respect to the conduct of the business. Managers are insureds, but only with respect to their duties as managers.

Which of the following describes contributory negligence? a) The time period in which a claim must be filed b) Negligence is apportioned between both parties in an accident. c) The voluntary assumption of exposure to risk d) Any degree of negligence by the injured party may bar recovery.

D In states that have contributory negligence laws, the defendant must have been 100% at fault for an accident and the claimant free of fault if the claimant is to be successful in collecting damages.