Guarantee Exam Missed Questions

You open you locked safe this morning and find $4,000 worth of property is missing with no signed of forces entry. How much does your safe burglary policy pay?

$0

A producer continues to use an unapproved trade name for 10 days after being notified by the Commissioner to stop using the unapproved name. What is teh maximum fine the producer may face?

$5,000

An insured was judged at fault in an automibile accident. He has the 100/300 bodily injury coverage. Three other individuals were injured in the vehicle hit by the insured. 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

What type of policy, which may be added by endorsement or purchased separately, may an insured purchase in order to provide coverage for other types of contracts?

A contractual liability policy

Homeowners policies permit all of the following incidental occupancies EXCEPT

A retail sales operation run by the insured from his garage

Which of the following would NOT be eligible for coverage under a personal auto policy?

A vehicle purchased 90 days ago?

An insured's limit of liability applies to a total of damages for bodily injury and property damage resulting from one accident, which may be used in any combination of amounts, not to exceed the single limit/ What type of limit does this insured have?

Combined Single

Which of the following elements of an insurance contract requires payment of premium?

Consideration

When an agent obtains an insurance license for the primary purpose of writing insurance for himself, his spouse, or his own business, this is called?

Controlled business

Which of the following is covered by auto other-than-collision (comprehensive) coverage?

Electric equiptment required for the normal operations of the car

An executive is accused of sexual harassment. What type of coverage would respond?

Employment practice liability

When does the insurer's duty to defend a suit or claim end in a commercial general liability policy?

When loss payments equal the applicable limit of insurance

Under Coverage C, and at the request of an insured, personal property of a guiest or residence employee is covered

While it is any residence premises occupied by an insured

Which of the following would be considered a covered auto on your personal auto policy?

Your farm wagon being towed by your pick up truck

If the commissioner issues a cease and desist order, that means the insurer must

Stop committing a particular violation

An audit revealed the administrator for a pension plan has made investments that were not consistent with the risk tolerance set forth in the plan for its members. The earnings for the past year are substantially below the average for comparable funds. The governing board wants to take action against the administrator. What type of commercial liability would the board need to provide for this risk?

Fiduciary liability policy paid by the pension fund

Which of the following is NOT a characteristic of a difference in conditions (DIC) policy?

It is a standard policy

Which valuation method takes into consideration what a willing buyer would pay for an insured property?

Market Value

Which of the following is NOT trued of workers compensation coverage?

Medical benefits are limited

What coverage form in the farm policy insures equipment on an open peril basis?

Mobile agriculture machinery and equipment

What term includes caused by continous or repreated exposure to conditions resulting in injury to persons or damage to property that is neither intended nor expected

Occurrence

The other states insurance section of a workers compensation policy provides coverage

Only for those other states listed in the policy

The commercial general liablity Coverage Part A - Bodily Injury and Property Damage provides coverage for which of the following?

Premsis

An insured's child ran into a neighbor's planter on his bicycle and broke the planter and ruined the plants. The cost to replace the planter was $400, and the cost to replace the plants was $100. Which section of the insured's homeowners policy would pay?

Section II with no deductible

Which of the following is NOT a cause of loss form for commercial property coverage?

Specifc

When symbol 7 is provided, which of the following statements is true with regards to newly acquired autos?

The are covered if they are used to replace previously owned autos with that coverage

The cost bond gurantees

The plaintiff will pay court cost and damages to the defendant if the plaintiff loses the court case

The owner of a rental dwelling, isnured under a DP-2, turns off the heat in the insured dwelling during the winter months because the dwelling is not occupied. The builifing's water pipers freeze and break, causing damage. How will the policy react to this loss?

This loss is excluded from coverage

In a DP-1, if the insured elected to apply Coverage B to a detached garage, Coverage A will

be reduced by 10%

In a liability policy with split limits of 25/50/25, which number is the maximum mount that would be payable in the event of damage to a person's property?

the amount of the third number, $25,000