Missed EXAM Fx questions
The PRO rata liability clause is designed to protect the principle of
Ideminity
An insured's business is damaged because of a fire, and he is forced to close the business temporarily for repairs. As a result, the insured lost income. What type of loss is this?
consequential
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
consideration
An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?
illegal
What do individuals use to transfer their risk of loss to a larger group?
insurance
All of the following are major coverages included in the homeowners policy EXCEPT
loss of income
What is the major difference between a stock company and a mutual company
ownership
What is the maximum duration of a binder
90 days
When the insurer receives a proof of loss, it must respond either with a written offer to settle or rejection of the claim within how many days of receiving the proof of loss?
90 days
What term describes an individual domiciled and licensed as a resident agent in a state other than Oklahoma? Cortney Breedlove
A non resident agent Cortney is now
In the event of a loss covered by the policy, of the insurer requests a signed sworn proof of loss the named insured is required to submit it within
A specified time
In a personal auto policy, the medical payments coverage is similar to
Accident insurance, because it pays medical expenses regardless of fault
In insurance an offer is usually made when
An applicant submits an application to the insured
When does the gene wallace file a report with the governor stitt?
Annually
In return for premium, an insurance company must
Be fair in underwriting and pay covered losses.
Dad is working on the roof of Ginas house, and Cody is watching from the ground. When roof shingles are thrown off the roof, they hit Cody in the face injuring his eye. Which best classifies the dads legal liability
Bodily injury
Which of the following other coverages is NOT included in the basic form dwelling policy?
Breakage of glass DP2 and DP3 only
Homeowners policies provide coverage for
Business property while on the residence premises
An insured/dad invites his neighbors Cody Royse out for a day on the water in his boat powered with a 150 hp outboard motor. While attempting to tie the boat to dock, his Cody neighbor's hand is broken when caught between the boat and dock. What coverage would apply to the broken hand?
Dads insureds boat owners policy
What is the purpose of the coinsurance clause found in property insurance policies?
Encourage the insured to insure the property closer to its full value
All of the following are found in the declarations section of a policy EXCEPT the
Exclusions
When an insurance agency published an advertising brochure, it emphasized the company's financial stability and sound business practices. In reality it's financial health is terrible, and the company will soon have to file for bankruptcy. Which of the following terms best describes the advertisement?
False financial statement
The proof of loss statement must be
In writing
All of the following are factors in the determination of actual cash value EXCEPT
Insurance premium paid
Insurance contracts are agreements between which two parties?
Insurer and insured
The part of the insurance contract that's describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured is called the
Insuring agreement
All of the following statements describe the concept of strict liability EXCEPT
It is imposed on defendants engaged in hazardous activities.
Which of the following personal auto coverages would pay for the insureds travel expenses and loss of earnings while involved in the settlement process of a covered loss?
Liability coverage
Under the dwelling policy, Coverage C - Personal Property is
Limited to covering a servant's property while at the insured location.
The process of determining the premium charged and how much insurance is required for a particular loss is called
Loss valuation
What kind of license would a person need to obtain in order to sell insurance through OAIP
Property and Casualty, no other BS
While an insured was towing a utility trailer with his auto, the trailer came loose and ran into a store front. Which part of the insured's auto policy would pay for the damage to the store?
Property damage liability
Under the personal auto policy, liability for bodily injury resulting from the insured's use of a nonowned automobile is
Provided by the insureds policy on an excess basis
Insurance is the transfer of
Risk
Which of the following insurers are owned by STOCKholders who have the usual rights of ownership, including the right of voting
Stock- stockholders in definition
A passenger in a friend's car is injured while getting into the car. Which of the following statements would apply if both the passenger and the driver had medical payments coverage under a personal auto policy?
The driver's policy would be primary.
When an umbrella policy is BROADER than UNDERLYING insurance and it pays a loss that is not covered by the underlying policy, it usually only pays
The excess over the self insured retention
Negligence may be defined as
The failure to use reasonable and prudent care
Who is entitled to the salvage of property after a total loss has been paid under the terms of an insurance policy?
The insurer
On a DP-3 dwelling property special form policy, the coverage provided for personal property is
The same as provided on the DP-2 broad form
How much coverage can be available for watercraft damage in a homeowners policy/SEADOO
Up to 1,500
An insured's 9-year-old son threw a ball, accidentally breaking a neighbor's plate glass window. The insured was found legally liable for the cost of replacing the window. This is an example of
Vicarious liability he was vicarious I'm throwing the ball
In FORMING an insurance contract when does acceptance
When an insurers underwriter approves coverage/no defects
Every licensing agent must notify the commissioner of any change of the address shown on the license
Within 30 days after the change
A peril is defined as:
the cause of a possible loss
An insured has a home owners policy and is required to be a member of the homeowners association in her neighborhood. The associations community house has burned down, and the insured has been assessed $1200 for her share of the rebuilding cost. How much of the assessment will her homeowners policy pay?
$1,000
An insured has $5000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs 7,000$ for the Insured and 4000$ for the first passenger and 8000$ for the second passenger. How much will the policy pay under medical payments coverage?
$14,000
When the insurer recieves a proof of loss it must be respond either with a written offer to settle or a rejection of the claim within how many days of receiving the proof of loss?
90 days
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT
Conditions
Under the Fair Credit and Reporting Act, individuals rejected for insurance due to information contained in a consumer report
Must be informed of the source of the report
What insurance policy provision defines how the policy will respond if there is MORE THAN ONE insurance policy written on the same risk?
Other insurance
A participating insurance policy may do which of the following?
Pay dividends to the policyowner
Which of the following homeowners endorsements cover liability exposures arising from an incidental business conducted within a building on the residence premises?
Permitted incidental occupancies
Section 1 of dads boat owners policy covers
Physical damage, cause dads the #1 cause of physical damage on any boat that he operates lol
Who would participate in a Write Your Own (WYO) flood insurance program?
Private insurers that wish to write and service National Flood Insurance policies on a no risk-bearing basis
The other insurance PROvision that limits the LIABILITY of the insurer to a portion of the loss no greater than the amount the insurer bears/RATS to all the insurance covering the property is called
Pro rata liability
What is the minimum civil penalty the Commissioner may impose on a producer who violates a cease and assist order?
100$
Within how many years of a loss may an insured bring a lawsuit against an insurer, according to the dwelling policy?
2 years
Transportation expenses are covered under a personal auto policy for
20$ per day for a max of $600
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained
3 days
Under the dwelling policy, if an insurer chooses to repair or replace damaged or lost property, it must inform the insured within how many days of receiving proof of loss?
30 days
An insurer cannot cancel a homeowners policy solely because the insured filed a first claim of the policy has been in effect for at least how many days?
45 days
If a consumer requests additional information concerning a INVESTIGATiVE*ASAP* consumer report, how long does the insurer or reporting agency have to comply?
5 days. Gives you M,T,W,T and F for you to print out more info
With respect to the personal auto policy, which of the following vehicles could be classified as a nonowned auto?
A vehicle that is titled to another person, but is being used with permission by an insured
Which of the following types of valuation works best for property whose value does not fluctuate much?
Agreed value
The abs corporation has $100,000 of coverage on its building through insurance company A and $50,000 of identical coverage on the same building through insurance Company B assuming coinsurance is not an issue, when a 24,000$ loss occurs and the pro rata method is used, how much will each insurer pay?
Company A will pay $16,000 Company B will pay $8,000
When applying for an individual life insurance policy, an applicant states that he went to the doctor for NASEAU, but fails to mention that he was also having severe chest pains. This is an example of
Concealment
When would a misrepresentation on an insurance application be considered fraud?
If it's intentional and material
Under which of the following conditions can broad theft coverage be added to a dwelling policy?
If the insured is owner occupant of the dwelling
What type of information would be found in a policy's insuring agreement
Renewal dates
The regulation of the insurance industry primarily rests with the..
The State of Oklahoma
Before an insurer pays fees or commissions to an agent, which of the following must happen?
The commissioner must approve the agents appointment
Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy?
The insured would be responsible for the amount required as underlying limits in the event of a claim.
