guaranteed exam questions

the BOP extension coverage form for personal property off premises is limited to

$10,000

what is the maximum fine the commissioner may impose on an insurer for a single willful violation of the insurance code?

$25,000

Using the pro rata method, if a property is covered by Company A for $20,000 and Company B covers the same property for $40,000, how much will Company A pay on a $24,000 loss?

$8,000

which of the following is most likely INELIGIBLE for coverage under the businessowners policy?

a bank

which of the following would be eligible for homeowners coverage F - medical payments in the event of injury at the insureds premises?

a full time maid

when an insurance is written on a dwelling form, which of the following types of property would be insured under coverage B (other structures)?

a garage separated from the dwelling

Testimony, documents, or other evidence obtained by the Commissioner may NOT be used in which of the following situations

a private civil proceeding against an agency or producer

homeowners policies consider all of the follow insured locations EXCEPT

a strawberry patch owned by the insured

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

a homeowners policy conditions that states that insurance applies to each insured is known as

severability

all of the following statements regarding personal property coverage in the homeowners program are correct EXCEPT

the HO-3 policy covers the mysterious disappearance of personal property

in a liability policy with split limits of 25/50/25, which number is the maximum amount that would be payable in the event of damage to a persons property?

the amount of the third number $25,000

Due to appreciation, the amount of insurance on a business is less than 80% of its actual value on the date of the loss. Which of the following is true?

the coinsurance penalty applies

after receiving a notice of nonrenewal for his personal risk policy, an insured mails a written request to the insurer, asking for an explanation of the nonrenewal. the insurer must respond to the request within

20 days

all resident producers must complete at least how many hours of continuing educations every two years?

24 hours

under business personal property limit - seasonal increase, if no percentage is specified in the declarations, seasonal fluctuations will automatically increase the limit for business personal property by

25%

licensees must inform the commissioner of name or address changes within how many days of the change?

30 days

as specified in the protective safeguard endorsement added to a businessowners policy, if the automatic sprinkler system is shut down due to freezing conditions, the insured does not need to notify the insurance company as long as the system is restored within

48 hours

in addition to the current year, for how many prior years must an insurer maintain claim records

5 years

according to business property coverage form vacancy condition, if a policy is issued to the owner of a building, the building will be considered vacant if what portion of the square footage is unused?

69%

An insured is the owner of a clothing boutique. She has a Floor Plan Merchandise Floater to cover the property that is financed until it is sold. At closing time a month ago, she noticed that very expensive dresses had been stolen. However, she did not file a report to her insurance company until recently. How much will her insurer pay for this loss?

90% of the limit written

the chief officer & head of the TN department of insurance is the

Commissioner

which homeowners form provides open peril coverage for dwelling (coverage A) & contents (coverage C)?

HO-5

an insurer must be fair in underwriting & must pay all covered losses of any insured. for the faithful execution of these duties, an insurer has the right to

accept the payment of premiums for all policies currently in force

Under the Garment Contractor Floater of an Inland Marine policy, coverage while the property is in transit between the insured and the subcontractor is usually written on which basis?

all risks

a limited insurance representative may solicit & negotiate contracts for all of the following insurance products EXCEPT

automobile physical damage insurance

the HO-4 form designed for tenants covers losses on what basis?

broad peril

which of the following will be covered by business owners property coverage form?

buildings & business personal property

which of the following types of property would be covered under Coverage C personal property in a dwelling policy?

rowboats

What two policy components are part of every commercial package policy?

common policy declarations & common policy conditions

which of the following exclusions would specifically fall under coverage E in homeowners insurance?

contractual liability

During policy solicitation, an insurer exaggerates the financial condition of one of its competitors, and makes it sounds worse than it is. This is an example of an unfair trade practice of

defamation

how does insurance distribute the financial consequences of individual losses?

it transfer the risk to all persons insured

with respect to the commercial package policy, an interline endorsement is one that

may apply to more than one line of insurance that is included in the package

which of the following exposures is NOT covered under a homeowners policy?

medical payments to an insured

among the applicants in the same class & life expectancy, which of the following factors can be used to influence premium rates?

occupation

In the last 72 hours, there were 3 instances of volcanic eruptions that damaged a property covered by a dwelling policy. How many deductibles will the insured have to pay before the policy covers the damages caused by the eruptions?

one

which statement best describes agreement as it relates to insurance contracts?

one party accepts the exact terms of the other party's offer

what kind of coverage does form DP-3 provide?

open peril

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

policy

which of the following would NOT be covered by commercial inland marine policies?

property loss due to a military action

the insurance company requires that an insured installs a fire alarm & an automatic sprinkler system as a condition for coverage. this is an example of

protective safeguards endorsement

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

riot

an insured's home is totally destroyed by a fire. he has a fire insurance policy that must pay him of the ACV of his home at the time of loss. if the insured has paid premiums in excess of the ACV of his home, how much will he be reimbursed?

the difference between the amount named in the policy & the actual value, with interest at 6% per annum

an insured was backing his car out of the driveway & hit a fire hydrant. the automobile sustained $1,300 of damage to the bumper. The insureds auto policy has a $500 deductible. Which of the following is true?

the insured is responsible for the first $500 of any claim that he makes on his policy

which of the following statements is correct regarding the debris removal coverage under the businessowners policy (BOP)?

the insureds limit of liability is 25% of the sum of the direct loss payment plus the deductible amount

all of the following are TRUE, regarding the cancellation of a policy EXCEPT

the insurer must provide proof that the insured received the notice

each of the following may be insured under an HO-3 homeowners policy EXCEPT

the owner occupant of a condominium unit

all of the follow are considered insured under the hired & nonowned auto liability endorsement added to a businessowners policy EXCEPT

the owner of a nonowned vehicle

under the property & casualty conditions of a homewoners policy, what may happen if it is discovered that the policy owner committed concealment or fraud?

the policy may be voided

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

there is no additional premium

the commissioner may issue a temporary license in all of the following cases EXCEPT

to the designated employee of retiring license producer, for the purpose of continuing the business.

what amount of coverage is provided on HO policies for watercraft?

up to $1,500

The broad cause of loss form in the commercial property policy contains three perils in addition to the basic form perils. Which of the following is NOT one of those three perils?

utility services