Insurance Exam

Under a commercial general liability policy which of the following is not considered mobile equipment? A) And automobile use as a company car by a real estate company b) A combined used on a farm c) The department of transportation resurfacing equipment d) The bulldozer used by an excavating company

A) And automobile use as a company car by a real estate company Mobile equipment is defined as a bulldozers farm machinery forklift and other vehicles including attached equipment designed for use of public roads vehicles maintain for used solely on or next to the insured premises vehicles that travel on crawler trade vehicles used primarily to provide mobility to power cranes shovels loaders diggers drills and any other road construction or resurfacing equipment.

What type of injuries could incur additional penalties and or increased benefits paid by the employer? A) The employer will for failure to provide required safety goggles b) Loss of a limb while following safety procedures c)An injury that occurred while on a dangerous job site d)If all that is a result of a slippery workplace for

A) The employer will for failure to provide required safety goggles Certain types of injuries might incur additional benefits to be paid by the employer or might think you're a penalty. These would include injuries that occurred to him minor who is illegally employed with any employer willfully for fails to provide required safety equipment.

The garage coverage form is written to cover the insurance needs of an insured in the business of selling repairing servicing or storing automobiles which of the following coverages are not included in the garage policy? A) Product liability B) Physical damage on the customers auto C)Auto liability D) Premises and operations liability

B) Physical damage on the customers auto The garage policy has a care custody and control exclusion which would eliminate coverage for any damage to a customers auto. Exposure would need to be covered under the garage keepers policy.

A small appliance manufacturer in the state provides products around the globe. A customer in Switzerland is injured using one of its products. If the appliance manufacturer is found liable for the damages why would his commercial general liability policy cover the customers claim for bodily injury? A) The appliance manufacturer is negligent B) The appliance was manufactured in the United States C) The commercial general liability policy extends rights to Switzerland D) The appliance manufacture did not have a permit to sell globally

B) The appliance was manufactured in the United States Coverage territory means anywhere in the world if injury or damage results from goods or products manufactured or sold any coverage territory.

Which of the following would be considered a covert auto on your personal auto policy? A) Your farm wagon being told by your tractor B) Your farm wagon being towed by your pick up truck C Your pick up truck used for deliveries of your retail business D) Your farm tractor

B) Your farm wagon being towed by your pick up truck Agricultural equipment is not insured on auto policies except for wagons or farm implements being towed by covered auto in which case the rules for trailer apply.

Which of the following exposure is not covered under the garage liability coverage form? A) Products and completed operations Liability B) Auto liability C) Contractual Liability D) Premises in operation liability

C) Contractual Liability Contractual liability other than incidental contracts is not covered under the garage liability form.

Which of the following is not true of the agents implied authority? A) It is incidental to express authority B) It is given to an agent by the insurance company that is not specifically communicated C) It is specifically stated in the contract D) It is assumed by the agent in order to transact the business of insurance

C) It is specifically stated in the contract Implied authority as authority that is not expressed or written into the contract but which the agent is assumed to have an order to transact the business of insurance for the principal. Implied authority is incidental to express authority since not every single detail of an agent authority can be spelled out in the written contract.

In order to us receive transportation expenses under the personal auto policy following damage to your auto caused by collision you must have? A) Uninsured motorist property damage B) Supplementary payments C) Other than collision coverage D) Collision coverage

D) Collision coverage The policy will pay $20 a day for a maximum of $600 for autos that cannot be used for more than 24 hours due to damage is caused by collision only if the declarations page of the policy indicate that collision coverage is provided for that auto.

Space Age Rockets makes model rockets supplies and has 12 employees. The company is located in Atlanta Georgia. Georgia has compulsory Worker's Compensation law. Space ages owner thinks that his company is too small and unprofitable to carry the workers Comp plan mandated by the state. Possible consequences of noncompliance includes all the following except? A) Closure of the business as a public nuisance by state officials B) Payment for injuries in monetary amounts stipulated by the state with respect to workers compensation plans C) Payment of fines and penalties as dictated by state compliance authorities D) Forced payment of billing for services rendered by any private ensure that bind coverage based on an employee's request for coverage

D) Forced payment of billing for services rendered by any private ensure that bind coverage based on an employee's request for coverage And employee cannot contract for Worker's Compensation coverage for an employer without the express authority of that employer.

Which of the following types of property is not movable? A) Firm property B) Transferable property C) Fixed property D) Real property

D) Real property Personal property is property that is movable real property is not movable.

Which statement best describes agreement as it relates to insurance contracts? a) One party accepts the exact terms of the other party's offer. b)The intent of the contract must be legally acceptable to both parties. c) All parties must be capable of entering into a contract. d) Each party must offer something of value

a) One party accepts the exact terms of the other party's offer. And insurance contracts there must be a definite offer by one party in this offer must be excepted an exact terms by the other party agreement includes both an offer and it's acceptance.

How is a professional liability policy written? A) Occurrence b) Claims made c) Open peril d) Excess liability

b) Claims made Most professional liability policies are written on the claims made basis.

The second injury fund will pay the benefits in which of the following situations? Hey a person is injured twice in the same year as long as neither injury affects the other injury A) a person is injured twice in the same year as long as neither injury affects the other injury b) Worker's Compensation benefits for an employee who has been injured while working for a previous employer in case injury would occur again c) And employee with a previous injury suffers a second injury that causes the disability to be more serious d) The same injury occurs to a different person

c) And employee with a previous injury suffers a second injury that causes the disability to be more serious Second injury funds are designed to pay for any additional benefits that may be required one employee with a previous injury or disability weather work related or not suffers a second injury that causes the disability to be more serious than if there had been no prior disability.

When reviewing a standard Worker's Compensation an employer liability policy the limits of coverage of described in part one of the policy. The dollar limits of the benefits provided our stated A) In line item 3A has a policy information page b) In paragraph one of part one as directed by law c) In the state Worker's Compensation law its self d) On the face of the policy declaration page

c) In the state Worker's Compensation law its self The Worker's Compensation an employer liability policy itself does not contain dollar limits of benefits covered by the policy. The state workers compensation law directs amount of coverage benefits provided by all policies written for employers of that state. Policy part one also contains no exclusions of coverage.

What doctrine may reduce or bar the recovery from a defendant if another event beyond the control of the defendant set in motion in new chain of events causing injury or damage? a) Statute of limitations b) Vicarious liability c) Proximate cause d) Intervening cause

d) Intervening cause The intervening cause doctor in bars or reduce his recovery to an injured person if in intervening cars interrupted the chain of events and sets in motion in new chain of events.

Late one night in his way home from a local bar, a man runs his covered auto into an insured car. The man was operating his vehicle while under the influence of alcohol. The insured had no personal injuries, but her car had damage. Her insurance policy paid for the damages to her car. The sub rotary ion provision in her policy allows? a) The insured to sue the man to recover only the damages not paid by her own insurance company. b) the insured to increase t=her premiums because of being a higher risk. c) The insured to sue the man to recover any damages she sees fit. d) The insurer to attempt to recover the damages from the man and/or his insurance company.

d) The insurer to attempt to recover the damages from the man and/or his insurance company. The subrogation provisions allows the insurer to recover payment for a lost it has paid to an insured from a negligent third-party that caused the loss.