Guaranteed Exam missed questions

in the event that a premium financing agreement is cancelled or prepaid, the service charge or other allowable charge will be...

RETAINED BY THE PREMIUM FINANCE COMPANY - the service charge does not have to be sent back to insured

for an additional premium, the extended coverages written on the basic form DP would cover???

RIOT - w.c s.h.a.v.e.R

What is not true about the completion of a pre-licensing training?

THE REQUIREMENT CAN BE FULFILLED BY COMPLETING TRAINING THROUGH LECTURE COURSE, HOME STUDY, OR ONLINE- it is limited to a lecture class format.

How often must the preparation and posting of records of insurance transactions occur?

EVERY 30 DAYS- books and records of all insurance transactions must be maintained by licensees. The prep and posting of such records must occur at least every 30 days

A homeowner misplaced some of her insured personal property and has no idea where is is. Which HO policy would cover such loss?

HO-5 - it covers misplacing or losing as a theft loss

A structure may be eligible for coverage under the national flood insurance program EXCEPT:

IF IT IS ENTIRELY OVER WATER - must have 2 solid walls, a roof, be principally above ground, and NOT over water.

Unless additional coverages are added to the BOP, the max amount of coverage an outdoor sign is limited to is..

$1000

if a producer's license is violated for criminal activity, what is the max they can be charged?

$10k - $100k for each offense but no more than $100k

All of the following are TRUE regarding cancellation condition of a policy:

- Insurer are required to give advance notice to the 1st named insured only -insurer is required to give advance notice of its cancellation to insured -the insured may cancel the policy at any time by mailing a written notice of cancellation

What best describes agreement as it relates to an insurance contract?

1 PARTY ACCEPTS THE EXACT TERMS OF THE OTHER PARTY'S OFFER - there must be a definitie offer by one party and it must be accepted in it's exact terms by the other.

The personal property off-premises extension of dwelling forms provides limits of coverage up to...

10% OF COVERAGE C ANYWHERE IN THE WORLD

What is the max civil penalty that a producer can be charged if found guilty of violations in a court of law?

100,000 - in addition to ot instead of any applicable denial, suspension, or revocation of a license, a person may, after a hearing, be subject to civil penalty of up to $10k for each cause, but no more than $100k

Within how many days must insurers pay approved claims?

30 DAYS

cancellation of a commercial lines policy for any other reason other than nonpayment of premium required how many days advance notice?

60 DAYS - this is required for a commercial line policy if they are being non renewed anything other than non payment

What type of entity is eligible for a BOP?

A convenience store

In order to get a nonresident license in Illinois, producers must...

APPLY AND PAY A FEE TO A NONRESIDENT STATE - show they are in a good standing as a producer in their home state and by paying a fee

An insureds limit of liability to a total of damages for BI and PD resulting from one accident, which may be used in any combination of amounts, not to exceed the single limit. What type of limit does the insured have?

COMBINED SINGLE - a single dollar limit or liability applying to the total of damages for BI and PD combined that result from 1 accident or occurrence. The limit may be used in any combo of amounts but cannot exceed the single limit

Which dwelling policy requires insurance equal to at least 80% of the RCV of the dwelling at the time of the loss in order to provide replacement cost coverage?

DP-2 & DP-3 - in order to collect replacement cost amounts in the event of a loss, the amount of insurance must not be less than 80% of the replacement cost of the dwelling at the time of the loss. if it is less than 80% then the penalty is an ACV settlement.

How does insurance distribute the financial consequences of individual losses?

IT TRANSFERS THE RISK TO ALL PERSONS INSURED

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... what has he done?

MISREPRESENTATION - portraying sales that is false, misleading, or deceptive.

An applicant for property insruance owns a building in which combustible materialsare stored in the furnace room... what kind of risk is this?

MORALE HAZARD - the insured lacks caution in storing the materials and it increases the likelihood of fire of an explosion.

What is the limit to the 90-day temp license that a person can hold?

NO MORE THAN 1 PER LIFETIME

according to the Insurance fraud prevention act, will the person who suspects a fraudulent transaction be penalized for reporting?

NO, AS LONG AS THE ACT IS REPORTED IN GOOD FAITH

A trust officer of a bank wants to counsel people on their life insurance policies for a small fee, what licensure must the officer recieve to do this legally?

NONE - nobody may offer insurance advise, counsel or opinions for a fee unless that person is a licensed producer, an attorney, a trust officer of a bank, or an actuary or certified public accountant employed in a consulting capacity.

if an insurance policy is cancelled within 90 days following the inception date, what manner will they be refunded?

ON A PRORATED BASIS- if an insurance policy is canceled for any reason within 90 days following inception date, they are refunded on a prorated basis.

How is the premium paid for the BOP?

ONE INDIVISIBLE PREMIUM- there is no separate premium for property and liability.

what sub-limit in a liability policy sets the maximum amount that will be paid for all claims arising from a single accident?

PER OCCURRENCE - a sublimit in a liability policy that puts a ceiling on the payment for all claims that arise from a single accident.

What does HO personal property NOT cover

PERSONAL PROPERTY OF ROOMERS NOT RELATED TO INSURED - contents coverage does not apply to people who PAY to be in their home.

in reference to insurable risk, which is NOT an element of insurable risk?

PERSONAL- insurable interest must exist. its broken into 3 categories: financial (monetary interest), blood (relative) and business (business partner)

policy limits are the maximum amount an insured may collect, or for which an insured is protected under the terms of the...

POLICY - policy limits are the max amount an insured ill collect, or for which an insured is protected under the terms of the policy

the insurance company requires that an insured installs fire alarms and an automatic sprnkler system as a condition for coverage. This is an example of ?

PROTECTIVE SAFEGUARDS ENDORSEMENT - adds a policy condition requiring the insured to maintain protective safeguards as a condition for coverage.