Guarantee Exam (2)

What is the maximum limit for property protection insurance benefits for property damage in a single accident?

$1,000,000

Eric Erickson was judged at fault in an automobile accident. Eric has the 100/300 bodily injury liability coverage. Three other individuals were injured in the vehicle which Eric hit. They were awarded damages of $150,000, $75,000 and $75,000. What amount, if any, was not covered by his insurance policy?

$50,000

The automatic limit for Coverage B is ___ of the limit of liability that applies to Coverage ___

10%/A

The Commissioner has determined that a producer is ineligible for appointment by an insurer. The Commissioner must notify the insurer within

5 days

Debris removal is not an additive coverage; it is part of the policy limit. However, when the amount of loss plus the cost to remove debris exceeds the policy limit, an additional ___ of the limit may be paid for debris removal

5%

Automatic increase in insurance is an optional endorsement that may be added to a dwelling policy to increase the amount of insurance by an annual percentage to offset the effects of inflation. This endorsement requires

Additional premium

In auto insurance, what is the term that defines parts that are used in the repair of an insured vehicle by other than the original manufacturer?

After-market parts

A house insured with a homeowners policy has been blown off its foundation by a tornado. It must be demolished and removed so a replacement house can be built. Which of the following is true about debris removal?

An additional 5% of the policy limit may be paid for debris removal

Section II of the homeowners policy provides medical payments to others but excludes coverage for the payment of medical payments of

An insured

Under which legal defense may a claimant's recovery be defeated if the defendant can show that the claimant contributed, no matter how slightly, to the injury or damage?

Comparative negligence

Other than perils, the difference in the three DP forms is in coverage provided. Which of the following coverage options is covered by the DP-2 and DP-3 but not DP-1?

Coverage E - Additional Living Expense

What group provides auto insurance for people who qualify, but are unable to obtain insurance through regular methods?

Michigan Automobile Insurance Placement Facility

An insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest, so the agent guarantees higher dividends than he knows would be possible. Which term describes what the agent has done?

Misrepresentation

How many hours of Continuing Education are required to maintain a Counselor's license?

None

Which provision defines how the policy will respond if there is other valid insurance written on the same risk?

Other insurance

___ is a provision in an insurance policy that defines how the policy will respond if there is other valid insurance written on the same risk.

Other insurance

For an additional premium, the extended coverages written on the basic form dwelling policy would cover which of the following?

Riot

When an insurer acquires the insured's rights against a third party for the purposes of receiving indemnification for loss, this is called

Subrogation

A property insurer goes bankrupt and is unable to pay on any of its insured's claims. Which of the following will happen?

The insured's claims will be paid by a state-based program

If an insurance policy has the additional coverage provision, how does it affect the policy premium?

There is no additional premium