Iowa casualty

a trucking company has a $1 million umbrella policy in place. The business owner agrees to maintain a 200/500/100 limit on auto liability, and a personal liability of $400,000. After an accident, the business is sued. Injuries are awarded to a single injured party in the amount of $300,000. It turned out that the business actually carried only 100/250/50 auto liability limits. what is the total amount the umbrella policy will pay?

$100,000

how long is a waiting period for workers compensation loss of earning benefits?

3 days

insurance licenses in Iowa are issued for

3 years

if a producer changes his address, the commissioner must be notified within

30 days

which of the following best describes a rebate?

A producer returning part of her commission to her client, as an inducement to buy

which of the following injuries may be covered under coverage C-medical payments of a commercial general liability policy?

Injuries to a member of the general public that occurs on premises

in a personal auto policy, underinsured motorist coverage applies when?

You are injured in an auto accident with another motorist who is at fault but has limits of insurance that are not adequate to cover your medical expenses

In personal auto policy (PAP), a covered auto includes all of the following EXCEPT

a van used in the delivery business

the obligation to compensate injured workers without regard to fault or negligence is known as

absolute liability

what is a sudden unplanned and unexpected event, not under the control of the insured, resulting in injury or damage that is neither expected not intended called?

accident

which of the following is not a valid reason for cancelling an auto policy once it has been in force for 60 days

age of the operator

under a commercial general liability policy, which of the following is NOT considered mobile equipment?

an automobile used as a company car by a real estate company

which of the following components is NOT part of a policy structure?

benefits

all of the following are regulated areas of the insurance industry EXCEPT

commissions

insurance producers can only receive commissions for insurance written with

companies that have appointed them to act as insurance producers

An insured believes that his insurer is not properly fulfilling its obligations regarding his policy. What section of the policy will give the insured more information about specific duties of the insurer?

conditions

how often is the commissioner of insurance required to examine domestic insurers?

every 5 years

Harold died in an accident at work, leaving behind a wife and an autistic child. For how long will the child's survivor benefits continue under the state's workers compensation law?

for the remainder of the child's life

An insurer incorporated under the laws of another state but doing business in this state is considered

foreign

the commissioner is appointed to a 4 year term by the

governor

which of the following is the cause of loss?

peril

In reference to insurable interest, which of the following is NOT an element of insurable risk

personal

An insurer's right to take possession of property after having paid for the loss is referred to as the right to

salvage

Which of the following is NOT a classification of a hazard?

speculative

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

subrogation

after a hearing, who issues the written order resolving the factual issues presented in a hearing and stating what remedial action is necessary?

the insurance division

who must an insurer notify if it believes it has received a fraudulent claim?

the insurance fraud bureau

The insured's products under a commercial general liability policy does NOT include which of the following?

vending machines rented to others

When an insured's gardener was spraying weeds in the lawn, he failed to notice that the wind was drifting the spray into the neighbor's yard where he damaged their flower bed. The insured was found to be legally liable for this damage. This is an example of

vicarious liability

medical benefits under workers compensation statutes are provided

without limit

if a cease and desist order is violated, the persons license may be revoked and he or she may be subject to a maximum fine of

$10,000

if a producer knowingly violates an insurance law, the producer maybe fined up to what amount per violation?

$5,000

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

To determine the actual cash value of an insured property what must be deducted from the current replacement cost?

depreciated value

after a hearing, if the commissioner finds that a producer is in violation of unfair business practices, his or her initial action will be to

issue and cease and desist order

statistical probabilities of loss for a particular class of insureds is best predicted when the insured group is

larger

policy limits are the maximum amount an insured is protected under the terms of the

policy

the defendant being releases on a surety bail bond is the

principal

an insurer intends to cancel a private passenger automobile policy because the insured did not pay his premiums. How many days' notice must be provided prior to cancellation

10

A temporary producer's license is valid for up to

180 days

The declarations section in a homeowners policy provides all of the following information EXCEPT

policy exclusions

the commercial general liability coverage Part A- bodily injury and property damage provides coverage for which of the following?

premises

A policy contains a consent to settle a loss provision, which requires the insurer to obtain the consent of an insured before the settlement of a claim. With this in mind, what kind of liability policy does the insured most likely have?

professional liability

In order to receive transportation expenses under the personal auto policy following damage to an auto caused by collision an insured must have

collision coverage

a sworn statement must usually be furnished by the insured to an insurer, an must include what information about the occurrence and the amount of indemnity claimed?

date and description

loss valuation is best described as the process of

determining the premium charged and the amount of insurance required on a specific property

If a car is stolen and left in a snow bank, causing the radiator to freeze and sustain heavy damage, is the damage covered by the auto policy?

yes, freezing exclusion is removed if the car is stolen

grant lost a hand in a work related accident. what is he entitled to receive, if anything, while he is taking rehabilitation classes in addition to disability and medical benefits?

$100 a week for up to 13 weeks

applications for a producer license must be accompanied by a licensing fee of

$50

If a producer knowingly violates the insurance code, the maximum aggregate penalty CANNOT exceed

$50,000 in a 6 month period

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? a. $20,000 b. 12,000 c. 8,000 d. 0

$8,000

How many days in advance must an insurer give a named insured a notice when cancelling an auto insurance policy for nonpayment of premium?

10 days

which of the following is indicated on a certificate of insurance/

Amounts and types of insurance

an insurer who transacts insurance in this state but whose articles of incorporation are registered in Canada is considered what type of insurer?

alien

In order to get a nonresident license in this state, a producer must

apply and pay a fee to a nonresident state that reciprocates

if an insurer declares that the value of a loss is $5,000, but the insured is confident that the amount of the loss is substantially different, which of the following would most likely be used to settle the dispute?

arbitration

The transfer of a legal right or interest in an insurance policy is called

assignment

You are at fault in an auto wreck out of state. How does your company adjust?

at least to the minimum required by that state

an auto insurer may non renew an auto policy for which of the following reasons?

driving while intoxicated

an insured was involved in an accident that was caused by a tire blowing out. the insured was severely injured and incurred medical expenses of $100,000. The insured brought a recovery action against the manufacturers of the auto and the tires. The court held that the tire was the caused of the accident. Who is required to pay for this loss?

manufacturer of the tire

What information is found in the conditions part of an insurance policy?

the description of the duties and obligations of the insured

what types of injuries could incur additional penalties and/or increased benefits paid by the employer?

the employers willful failure to provide required safety goggles

An insured has decided to never drive another vehicle and wants to transfer his auto insurance policy to his wife. What does the insured need to transfer the policy?

the written consent of the insurer

which method of dealing with risk is applied when insurance is purchased?

transfer

The purpose of purchasing an umbrella liability policy is to provide

excess insurance over the primary liability policy

which of the following is an example of an unfair claims settlement practice?

failure to promptly settle a claim when liability has been established

an insured has a personal auto policy with the following limits: 50/100/25. the number 25 refers to

property damage coverage

which type of damages is intended as a form of punishment for negligent, willful, or outrageous intent?

punitive

an insured was injured at work on June 1. what is the latest date that his employer must be notified of the accident if the insured is to retain his workers compensation benefits?

september 1

if a high risk individual seeks to obtain insurance coverage but is unable to do so through the general insurance market, wat type of insurance may they seek?

surplus lines insurance

what entity was created to protect insureds against insurer isolvency?

the Iowa insurance guaranty association

a small appliance manufacturer in this 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 its commercial general liability policy cover the customer's claim for bodily injury?

the appliance was manufactured in the united states

all of the following are requirements for enrollment in the Iowa automobile insurance plan EXCEPT

the applicant has had a previous auto liability policy cancelled

which of the following is FALSE concerning liability coverage of a business auto policy?

the company will reimburse the insured for all loss and earnings

a couple noticed yesterday that several items of personal property were missing from their home. There has not been any apparent robbery committed, the items are merely missing and have seemingly disappeared mysteriously. the couple will

not be able to make a claim for the property since its considered to have my mysteriously disappeared

prior to paying a claimant under a professional liability policy, the insurer must

obtain the consent of the insured

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

occupation

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

only for those other states listed in the policy

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

other insurance

which of the following would not be covered under the directors and officers liability coverage?

reimbursement for fines and penalties

when an insurer pays for the cost to exchange damaged property with new property of similar kind and quality, it is called

replacement cost

an insured was having a new home built. While digging the footings for the foundation, the contractor struck a solid rock formation and found that was necessary to blast the formation in order to remove the rocks. The force of the blast broke several windows and some chinaware in a neighbor's home several blocks away. who pays for this damage?

the contractor

which of the following drivers may be excluded from an automobile insurance policy that renews on January 1?

the named insured has his driver's license suspended for two days the previous November

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

market value

an example of an alien insurer doing business in this state is one formed under the laws of

mexico

which of the following is incorrect regarding the insurance guaranty association?

producers may stress its guarantees to customers in a sales position

a personal umbrella policy may act as excess over any of the following insurance coverage policies EXCEPT

auto collision coverage

A lender who conditions approval of a loan on the condition that the borrower purchase insurance from that lender may be guilty of

coercion

which of the following statements does not describe endorsements?

endorsements may only add coverage to a current policy, not remove

the federal act that provided more favorable benefits for interstate railroad workers by allowing the injured worker to sure the employer for negligence is the

federal employers liability act (FELA)

which of the following duties is NOT required of the insured in the event of a loss?

immediately notify the insurer when the insured has filed for bankruptcy

a driver can be excluded from an auto insurance policy for any reason if the exclusion is agreed to by the

insurance company and the named insured

Agents may be found guilty of defamation if they make a false statement that is intended to?

maliciously criticize another insurance company

an applicant for property insurance owns a building in which combustible materials are carelessly stored in the furnace room. From an underwriting standpoint, this risk would likely be considered a

morale hazard

M hired L to mow the grass on his lawn twice a month for 9 months of the year. M paid L $50 each time the grass is mowed. Is M required to provide workers compensation insurance?

no, this type of employment is specifically exempt

Which of the following terms means termination of an insurance policy at its expiration date by not offering a policy continuation or replacement?

non renewal

which of the following documents notifies the insurer of events that may lead to a possible claim?

notice of claim

which of the following is used to define any person, firm , or corporation appointed by an insurer that possesses the authority to transact insurance?

producer

The commissioner may examine an insurer's records

whatever necessary in order to enforce insurance laws and regulations