🟧FX Exam (edited 6;00pm🥸)
Animals and bird
Dwelling policy Coverage C - Personal Property will cover all of the following EXCEPT
45
In the event an insurer decides to cancel a commercial policy because of an increase in hazard, how many days' notice must it provide the insured?
indemnity
In the event of a loss an insured is permitted to collect only to the extent of the financial loss.
HO-8 (modified homeowners)
What HO form covers a historic home with replacement cost more than the market value?
HO-6 (condominium unit owners)
What HO form covers condominium unit owners?
HO-4 (tenant broad form)
What HO form insures a tenant living in an apartment?
HO-3 (special form)
What Homeowners policy form is known as a special form?
Liability
What Personal Auto Coverage would pay for the insured's travel expenses and loss of earnings while the insured is involved in the settlement process of a covered loss?
Special and general
What are the two types of compensatory damages?
Small to medium size businesses
What businesses qualify for coverage under a businessowners policy?
Other insurance
What insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk?
Theft coverage
What is the broadest coverage in the Commercial Crime Form?
Retroactive date
What is the date stipulated on the declaration page of a claims-made liability form as the earliest date on which an incident may occur and be covered by the policy?
The SIR
What is the deductible of a commercial liability umbrella policy called?
$300
What is the maximum deductible for uninsured motorist property damage coverage for damages caused by collision?
$1 million
What is the minimum amount of additional coverage provided by umbrella policies?
Interline endorsements
What is the name for policy endorsements that may apply to more than one coverage part?
Liability coverage
What type of coverage is included in Homeowners policies, but is not available in Dwelling policies?
Underinsured motorist
What type of coverage protects the insured in an accident caused by a driver with insufficient coverage?
Monoline
What type of policy consists of the declarations, conditions, endorsements, and other attachments applicable to a single line of insurance?
Driver's own vehicle
When a Transportation Network Company arranges a ride for a customer, which of the following vehicles would be used?
Financial Responsibility Law
Which of the following terms refers to the minimum amount of insurance required to operate a motor vehicle in Indiana?
any person with permission
Who is considered insured under Part A: Liability of a personal auto policy?
Split limit coverage
1st limit: Bodily Injury per person 2nd limit: Bodily Injury per accident 3rd limit: Property Damage
Homeowners
A businessowners policy is mostly similar to what other insurance form?
Morale Hazard
A condition of carelessness or indifference that increases the frequency or severity of loss.
Felony.
A person who knowingly and with intent to defraud an insurer files a statement of claim containing any false, incomplete, or misleading information can be found guilty of committing a
60 days
A personal auto policy may be cancelled for any reason if it has been in effect for less than
material misrepresentation
A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company
50/100/25
A transportation network company driver must maintain a primary automobile policy with minimum coverage of at least
newly acquired auto
A vehicle acquired by the insured during the policy period
Hired auto
A vehicle rented from a commercial rental company is known as what type of auto?
Insuring agreement.
All of the following are conditions commonly found in the insurance policy EXCEPT
Indiana Automobile Insurance Plan
An individual is entitled to automobile liability coverage, but is unable to obtain coverage through ordinary markets. Where may he apply for such coverage?
30 days
An insured with a Homeowners policy has removed property from the insured location to protect it from loss that could be caused by a covered peril. The removal coverage applies for how many days?
20 days
An insured's driver's license was suspended. As a result, his insurer wants to cancel his policy. How many days' notice must the insurer provide prior to cancellation?
Coverage E (Additional Living Expense)
An insured's house becomes uninhabitable due to damage by a fire. As a result, the insured has to rent an apartment until repairs are made. Which type of coverage under the dwelling policy will pay for the expense of renting the apartment?
Coverage A (CGL)
BI provides coverage for any injury, sickness, disease or death suffered by third parties because of the insured's business activities. PD provides coverage for injury to, destruction of, or loss of use of property of others due to the insured's business activities.
B.B. BICE-GOLF
Bursting of heating systems; Burglary damage; Breaking of water heaters; Ice, snow, or sleet weight; Collapse of building or part of a building; Electrical damage (artificially generated); Glass breakage; Objects falling from outside; Leakage of water or steam damage; Freezing of plumbing
Basic, Broad, and Special
Commercial property coverage can be written with one of three causes of loss forms. What are they?
Hazards
Conditions or situations that increase the probability of an insured loss occurring.
Transportation Network Company (TNC)
Connects riders with drivers that will transport them for a fee. a company that uses a digital network to connect riders to company drivers who will then provide a prearranged ride for a fee.
Commercial General Liability (CGL)
Coverage A - Bodily Injury and Property Damage, Coverage B - Personal and Advertising Injury, and Coverage C - Medical Payments
3 years
Coverage for medical payments under a Personal Auto Policy applies to expenses following a covered accident that are incurred and services rendered within what time period?
On an open peril basis
How are the dwelling and other structures covered in an HO-3 policy form?
20 days
How much notice must an insurer give to an insured prior to the nonrenewal of a personal property insurance policy?
Every 2 years
How often must insurance producers in this state complete continuing education requirements?
$80,000
If an auto policy has liability limits of 40/60/20, what would be the equivalent combined single limit?
$30,000
If an auto policy has split limits of 30/50/25, what is the maximum amount the policy will pay for injuries to one person in a single accident?
Recovered property
If property is recovered after loss settlement, the insured may either retain the property and return any loss settlement payment or surrender property to the insurer;
25/50
In Indiana, what are the minimum, required limits for Uninsured Motorist coverage?
Self-insured retention
In a personal umbrella policy, the amount paid by the insured for certain losses not covered under the primary coverage is called
72 hours
In dwelling policies, any volcanic activity will be considered part of one occurrence if it all happens within how many hours?
80%
In order for forms HO-2, HO-3, and HO-5 to provide coverage, a dwelling must be insured for at least what percentage of replacement cost?
Principal or obligor
In surety bonds, who purchases the bond and promises to fulfill the obligation?
indirect loss
Loss that is a result or consequence of a direct loss
Professional Liability
Medical malpractice, agents and brokers errors and omissions, and directors and officers liability are examples of what type of liability insurance?
Coverage C (CGL)
Medical payments coverage provides for necessary medical, surgical, ambulance, hospital, professional nursing or funeral expenses for third parties injured because of the insured's business operations, without regard to fault.
Coverage B (CGL)
Personal and advertising injury liability
Errors and omissions
Professional Liability coverage protects the insured against legal liability resulting from what?
Reasonable repair
Reasonable costs incurred by the insured for repairs necessary to protect property from further damage at the time of a covered loss is also covered. This is not an additional amount of insurance.
Moral Hazard
Refer to those applicants that may lie on an application for insurance
Mine Subsidence Fund
Reinsure providers of mine subsidence coverage.
business auto coverage form
Section I - Covered Auto Section II - Liability Coverage Section III - Physical Damage Coverage; Section IV - Business Auto Conditions; and Section V - Definitions.
90 Days
The Employee Theft crime policy form includes a coverage extension that applies to employees temporarily outside the coverage territory for up to
Inspections and surveys
The insurer is granted the right, but does not have an obligation, to make inspections, surveys, reports, and recommendations relating to the insurance. An insurer does not warrant that conditions are safe and comply with laws, regulations, standards or codes.
$250,000
The regular National Flood Insurance Program would insure an eligible single-family dwelling for up to
Casualty Coverage
Third-Party contract. The policy pays the proceeds to the third party
Property Coverage
Two Party Between the insured and the insurer
When it is purchased
When are the limits for uninsured motorist property coverage set?
10 days
When cancelling a personal property insurance policy for nonpayment of premium, an insurer must provide an insured with a written notice of no less than
DP-2 (Broad) and DP-3 (Special)
Which dwelling coverage form(s) will pay for the replacement cost of a dwelling?
DP-3 (Special)
Which dwelling form provides open peril coverage on the building?
Coverage B - Other Structures (dp)
Which dwelling policy coverage will insure a garage not attached to the primary insured dwelling?
DP-1 (Basic)
Which of the 3 DP forms provides the most limited coverage?
Cancellation previous insurer
Which of the following is NOT an acceptable reason for an insurer to cancel a personal property insurance policy that has been in effect for more than 60 days?
Counteroffer
Which of the following is NOT an essential element of an insurance contract?
Insurance Commissioner
Which of the following is responsible for the powers, duties, management, | | and control of the Insurance Department?
$100 of payroll.
Workers compensation rating is developed by applying a rating bureau job classification rate to each
direct loss
a financial loss that results from the physical damage, destruction, or theft of the property
Pure Risk
a risk that presents the chance of loss but no opportunity for gain
Speculative Risk
a situation in which either profit or loss is possible
HO-4 (contents broad form),
also referred to as tenant broad form, insures personal property for broad perils. Coverage may not be issued to an owner-occupant. The HO-4 form may be written for a tenant
Bodily Injury
any injury, sickness, disease or death suffered by third parties because of the insured's business activities
Peril
cause of loss
Property Damage
coverage for injury to, destruction of or loss of use of property of others due to the insured's business activities
Unknown claim
coverage is only extended for 60 days after policy expiration. This means that if an insured receives notice of a previously unknown claim on day 70 after policy expiration, no coverage will apply.
Unknown claim:
coverage is only extended for 60 days after policy expiration. This means that if an insured receives notice of a previously unknown claim on day 70 after policy expiration, no coverage will apply. If it became known on day 45, coverage would apply and be applicable up to 5 years after expiration (Mini Tail).
HO-5 (comprehensive form)
covers both the dwelling and other structures on an open peril basis. It also covers personal property on an open peril basis, with the exception of landlord furnishings in an apartment that is rented
Advertising Injury (Coverage B CGL)
covers injuries that occur if, in the course of advertising, the insured inadvertently libels, slanders, defames or violates the privacy of another.
Elements of Insurable Risk
due to chance, definite and measurable, statistically predictable, not catastrophic, randomly selected and large loss exposure
The insured's policy acts as
excess over the underinsured driver's. The other driver will pay $50,000 (the per person limit), and the insured's policy will pay the difference ($125,000 - $50,000 = $75,000).
Physical Hazard
hazards are those arising from the material, structural, or operational features of the risk, apart from the persons owning or managing it.
Known claim
if the insured reports a claim not later than 60 days after the policy expiration, the claim is covered for up to a 5-year period of time (Midi tail);
Mobile equipment
includes any of the following types of land vehicles, including any attached machinery or equipment:
Personal Injury
injuries to third parties that result from mental anguish, false arrest or imprisonment, wrongful eviction, malicious prosecution, defamation of character, slander, libel, and invasion of privacy
Dwelling form
is a named peril coverage form and provides the most limited coverage of the three forms. It is very important to understand the circumstances in which a particular peril does not apply. Unlike the broad and special forms, there is no minimum amount of insurance required for the basic form. The basic form insures against the following perils or causes of loss:
HO-3 (special form)
provides protection for dwelling and other structures on an open peril basis, and personal property is covered only for broad perils. Unlike under the HO-2 (broad form), vehicle damage to fences, driveways, or walks is covered even if caused by an insured or resident.
HO-2 (broad form)
provides protection for losses from named perils. There are some noticeable limitations that should be pointed out to a client.
insurance
the transfer of risk of loss. The cost of an insured's loss is transferred over to the insurer and spread among other insureds.