Missed questions

what is the maximum amount an insurer will pay under the equipment dealers pollution clean up and removeal extension of inland marine policy

$10,000 for all expenses inccured during 12 month period

what is the maximum allowed value of a gift that an agents can give to an insured without violation the regulation on rebating

$25

the limits of liability for bodily injury or property damage is in auto insurance 30/60/25 whats the maximum limits of limits of liability

30/60/25

An insured owns a building vauled at $400,000 to comply 80% coininsurance provisions of his insurance policy, how much should he insure the property for?

80% of the replacemnt cost or more

combined single

A single dollar limit of liability applying to the total of damages for bodily injury and property damage combined, resulting from one accident or occurrence.

what is a certificate of insurance

A written document showing the types and amounts of insurance that have been issued to the insured

the HO policy form that covers condos are?

HO-6

A mobilbe homeoweners policy is structured at the same as a

Homeowners policy

the policy conditions define

How parties to the contract must act following a loss.

insurance is a contract by which one seeks to protect another form

Loss

suerty bonds are written for a definate limit called

The bond penalty

which of the following is considered a work-related injury/occupatinoal disese under workers comp

Tom works as a painter in auto body shop. the chemicals from the paint aggravates toms asthma to the pont he must be out for 7 days

what is the business auto coverage teritory

US and its territories, canda or world wide for private passenger hired auto

an unisured motor car includes all the following except

a vehicle being used for public livery

when transacting business is this state formed under the laws of another country is know as

alien insurer

which of the following is mandatory part of an insurnace policy that varies with each individual policy?

declarations

whichh of the following is manatory part of insurance policy that varies with each individual policies

declarations

what terms includes damage to the building where the insured peril was proximate cause of loss

direct loss

Pro rata liability clause is designed to protect the principle of

indemity

Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost?

indemity

an insured owns several buildings each at different locations and insured on a spate policy what type of coverage does this insured have

specific

after filling a claim an insured tells the insurer that there is more than one insurance policy enforced that the insurer sets aside the claim until it hears what the other company will pay the insurers action will be classified to

unfair

an insured is a member of the neighborhood association and has become liable for damages to a third party. each member of the association has been assessed a portion of a loss equal to $2,000 how much of the loss settlement of HO policy pay?

up to $1,000

the proof of loss statement must be in

writing

toms truck service vehicle was stolen. the policyholder may obtain coverage for transporation expenses to which of the following limits

$20 per day maximum of $600

anyone who violates the insurance code of Texas may be fined up to

$25,000

equipment breakdown coverage is written with a single limit of insurance per accident. what is the sublimit for hazardous substance cleanup or replacement of contaminated property

$25,000

coverage for an over flow pump is excluded from the dwelling policy with the purchase of the water back up pimp overflow endorsement it covers up $5,000 in loss or damage can be provided for additional premiums. what is the deductible associated with this coverage

$250

The regular NFI program would insure an eligible single family dwelling up to for

$250.000

an insureds building has ACV of $200,000 and he has insured the property with an 80% coininsurance clause. A $0.000 loss occurs. how much will the policy pay?

$30,000

The insureds home is covered by HO-3. 2 years ago. the insured bought the home for $58,000. today its replacement value is $60,000how much coverage A does the insured need to qualify for a replacement cost coverage?

$48,000

If a liability policy had split limits of 50/100/30, what is the maximum amount that would be payable in the event of injury to a single person?

$50,000

whithin the first 60 days of coverage under dwelling policy. how much notice is required for the cancellation of a policy

10 days

what is the required notice of cancellation of HO policy

10days

under the conditions of fil coverage form how long must the insured maintain his records of each production

3 years after the policy expires

what percentage of CE hours must be in classroom setting

50%

IN Texas what is the percentage of workers comp?

75%

under works comp an insurance carrier will pay death benefits to the legal beneficiary in a amount equal to what portion of employee average weekly wage

75%

which of the following statements is true regarding the premium computation for workers comp insurance

A premium auditor has the right to examine the insureds compensation records at the end of the policy period to determine the actual premium basis

a mobile home policy is structured the same as a

Homeowners policy

insurance is a contract by which one seeks to protect from another

Loss

which of the following would be covered under the crime coverage inside the premise-theft of money and securities

Loss or damage to a lock safe , vault or cash register

burglary is defined as

Taking of property from within the premises leaving visible signs of forced entry.

which of the following protects consmers against the circulation of inaccurate or obsolete personal or financial information?

The fair credit act

a tornado that destroys property would be an example of which of the following

a peril

in a persons auto policy, the medical payments coverage is similar to

accidents insurance because it pays medical expenses regardless fault

which part of an insurance covers claims expense, reasonable expenses incurred by an insured to protect damage property from further loss

additinal coverage

a perosn who is not named as insured on the declarations page of the policy but is protected by the policy is known as the

additional insured

a person who is not named as an insured on the declarations page pf a policy but is protected by the policy is known as the

additional insured

which of the following coverages is not included on the basic dwelling form policy?

additional living expense

Crime insurance is usually written on what basis?

all risk

all the following statements are true regarding he relationship among the amount of insurance expect?

all the property losses under the basic form are settled on a replacement cost basis

the inspections and surveys condition in a businessowners policy

allows the insurer the right to inspect the insureds premises

Which coverage form would provide coverage for all incoming and outgoing shipments?

annual transit

which coverage would provide for all incoming and out going shipments

annual transit

with respect of the business of insurance a hazard is

any condition or exposure that increases the possibility of loss

an installation floatier is used to insure

appliances to become a permanent part of the building

all the following must be true of an individual before a license can be issued except that the

applicant submitted his or her most recent tax return to the department

which of the following an example of protective safeguard in a business owners policy

automatic sprinkler systems

A policy that insures all property at multiple locations for a single amount is referred as to

blanket

which of the following must an insurer obtain in order to transact insurance within a given state

certificate of authority

Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as

coercion

a producer who fails to segregate premium monies from his own personal fund is guilty of

commingling

a plasterer has a finished job . what kind of liability coverage would protect him if the plaster falls and hurts someone because he did nit do the job correctly ?

completed operations

what term best describes the act of withholding material that would be crucial to an underwriting decision

concealment

the part of the policy that sets forth rules of conduct duties and obligations of the parties is s called

conditions

what are parts of a policy structure consideration is essential part of a contract?

conditions

an insured business is damaged because of a fire, and he is forced to close the business temporarily for repairs. as a result the insusred lost income what type of loss is this

consequential

an insureds business is damaged because of a fire, he is forced to close the business for repairs the insureds loss income what type of loss is this

consequential loss

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

consideration

when an insured make trueful statements on the application for insurance and pays the required premium, its known as which of the following

consideration

in Texas the state CE requirement

consist of completing 24 hours CE each biennium

An individual construction company leaves a mobile equipment and construction machinery on the job site until the project is completed, what could the person use to insure it?

contractors equipment floater

whic if the following is the fair rental value coverage in dwellin gpolicy

coverage D

in property and casualty what is the, for the amount of loss that the insured must cover out of pocket , and insurer will only pay for the additional amount of the loss above this limits

deductible

Which of the following terms describes making false statements about the financial conditions of any insurer that are intended to injure any person in the business of insurance e

defamation

the part of the policy that clarifies terms in the policy

definitions

Employment practice liability insurance EPLI would not cover claims arising form

deliberate

which of the following would not be considered unfair discrimination by insurers

discrimination in benefits and coverages based on the insureds on the insureds habits and life style

Al the following could be considered rebates if offered to a insured in the sales of insurance except

dividends from a mutual insurer

According to the appraisal condition of a homeowners policy, what procedure may be followed if the insurer and insured do not agree as to the size of a loss?

either party may make a written request for an appraisal

diectors and officers liability insurance defends actions against a corporation or its officers and directors alleging wrongful acts, with regards to the coverage provided wrongful acts include any of the following excpet

embezzlement

directors and officers liability insurance defends actions against a corporation or its officers and directors alleging wrongful acts, with regard to the coverage provided, wrongful acts include any of the following except

embezzlement

what type of coverage does umbrella policy provide

excess coverage over an underlying or primary policy

all of the following are found in the declaration page excpet

exclusions

the section of an insurance policy that details what perils are Not insured against and what person are not insured is know as the

exclusions

what method of premium computation relates an employers losses,payroll,and premium to the rationg bureaus classification of operations

experience modification factor

All the following are excluded in the breakdown basic policy Except

explosion of steam boilers

on what participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are.

fiduciary responsibility

the requirement that agents not commingle insurance monies with there own funds is known as

fiduciary responsibility

which of the following is not covered by the condo unit endorsement

furniture in the building

insurance transactions , fiduciary responsibility means

handling insurer funds in a trust capacity

events or conditions that increase the chance of an insured loss occurring are referred as to

hazards

regarding workers comp employees who have reached maximum medical improvement will be entitles to

impairment income

regarding workers comp, employees who have reached maximum medical improvement will be entitled to

impairment income benefits

an additional loss that results from a direct loss of property is called an

indirect loss

when is hired and nonowned auto liability endorsement available in a business policy BOP?

inly if the insured does not have commercial auto coverage

which of the following occupants would not directly help to quality someone for the office of commissioner of insurance

insurance agent

all of the following are facts in the determination of ACV except

insurance premium paid

persons covered under an insurance policy, whether named or not is known as the

insureds

How does the mobile home endorsement affect the other coverage of law or ordinance in a homeowners policy?

it removes the coverages

all the following are true regarding deposit premium except

its 50% of the actual premium

if an employer in state with elective workers compensation laws chooses not to be subject to those, laws, what does the employer lose

its common law defense against liability suits

All of the following statements describe there concept of strict liability except

its imposed on defendants engaging in hazarders actives

which of the following is defined as a covered cause of loss in a business property coverage?

leakage from fire-extinguishing equipment

fro a contract to be enforceable by law the purpose of the contract must be

legal and not agaisnt public policy

which of the following coverages in dwelling and HO policies is for indirect loss?

loss of use

which of the following is not considered a misrepresentation as it pertains to unfair trade practice

making comparisons between different policy

Dans house would cost $150,000 to rebuild the house if something happened to it, when he tries to sell it the best offer was $80,000. the insurance company will insure the house for only $80,000. what method of valuation is used to insure this proprerty

market value

an insureds house will cost $1550,0000mto rebuild the house if. if something happens best offer to receive the claim I $80,000. what method of valuation is use to insure this property

market value

which policy consist of the declarations and conditions, endorsements and other attachments applicable to a single line of insurance

monoline

on a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are

not taxable since IRS treats them as a return of a portion of the premium paid

when does the coverage begin under the builders risk from?

on the date constriction starts

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 bond is written for a set limit and the surety will be liable only for this amount of the limit, this limit is known as

penalty

The cause of loss insured against in an insurance policy are known as

perils

which professional liability form provides coverage for liability arising out of malpractice, error ,or mistakes made in rendering professional services

physicians , surgeons, dentist malpractice

who are the oarties to a bond?

principal,obligee,surety

under the coverage of which of the following liability poilices may an insurer to defend a claim

professional lability

which of the following liability policies is usually written on a claims made form

professional liability insurance

under the coverage of which of the following liability policies may an insured require the insurer to defend a claim

profrssional liablility

pertaining to insurance, what is the definition of a fiduciary responsibility

promptly forwarding premiums to the insurance company

the gramm-leach Bliley act was passed tto?

protect private customers information files with a financial institution

'\/which of the following is included under the physical damage coverage of a peroneal auto policy

sound reproduction, equipment permanently installed in the covered auto

payment for medical expenses loss of wage funeral expense or the cost to repair damaged property is know as what compensatory damages

special

the legal process that gives the insurer after payment of a loss the right to seek recovery from a third party that was responsible for the loss is known as the

subrogation

in terms of parties to a contract, which of the following does not describe a company party

the Person must have at least completed secondary education

an insureds accounts receivable records have been damaged. the loss may be covered with

the accounts receivable coverage form

an insurance agency could purchase an errors and omission insurance policy which would provide protection in the event of any of the following events except

the agency losses commissions income from the policies that were not issued by the insurer

which of the following would quality as a competent party in an insurance contract

the applicant has a prior felonie conviction

all the following statements concerning coinsurance are true except

the coin insurance formula will also be applied to the total losses

the claims made trigger is based on which of the following?

the date the claim is first made writing against an insured for injurie or damaged that occurred on or after the policy retro activate date

an employee is entitled to impairment income benefits beginning

the day after the employee reaches the maximum medical improvement's

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

an employee may be eligible for supplemental income benefits on

the expiration of impairment incomer benefits

an agent receives an emergency cease desist order for chronically misrepresenting his insurance policy, the agent knows he didn't make these violations stated in the order. he wants to contest the charges in court. which is true

the hearing must be held within 10 days of the request unless they agree to a later date

under the Texas property and casualty insurance guaranty association, what is the maximum amount that a claimant may recover from an occurrence under a policy issued by an insolvent insurer?

the lesser of the above amount

Under the Texas and casualty insurance guaranty association, what is the maximum amount the claimant may recover from an occurrence under a policy issued by an insolvent party

the lesser of the above amounts

the cancellation provision in a business owners policy specifies all of the following except

the method of transferring the owner rights

which of the following statements is true concerning a bonded contractor who defaults a construction performance contract

the obligee may engage another contractor and seel reimbursements for surety

on a DP-3 dwelling propoerty specail form policy, the coverage provided for peronal prpoerty is

the same as provided on DP-2 broad form

which of the following is an example of a producer fiduciary duty

the trust that a client places In the producer in regard to handling premiums

a specific covergae part is listed on the commercial package policy declarations page, but there is no premium shown, what does that mean

there is no coverage

which of the following is regarding true single dwelling insured at least 80% of the replacement cost value

they are automatically provided with the replacement cost coverage

prior to state-directed workers comp statues being enacted, employees had

to sue an employer for the loss and prove the employee was at fault

the type of insurance used to cover goods for one specific trip is called

trip transit

supplementary payments on a CGL provide all the following excepts

up to $500 a day for lost earnings $2000 for the cost of bail bonds

the insured with a claims-made commercial general liability policy may request in writting claim and occurrence information fromthe insurer at anytime up to 60 days after the policy periods ends . the insurer must provide information

within 45 days

Commercial package policy, allows the insured to select the coverage needed and customize the policy to meet the needs of the insureds business in a CPP the business owner my select from all the following types of coverages except

workers comp coverage

An advertising company has its annual holidays party, they had to much to drink and was involved inn an accident. the occupants car the other car is suing the company will the company business owners policy provide coverage

yes non of the exclusions apply

a commercial property speacil form covers property in transit up to

$5,000

within how many years of a loss may an insured bring a lawsuit againt an insurer according to the dwelling poilcy

2 years

the employees theft crime policy includes a coverage extension that applies to employees temporaily outsiide the coverage territory for up to

90 days

which of the following is not found in commercial package policy

certificate of authority

ABC corporation has,$100,000 coverage on the building through company A, and $50,000 on the same as B assuming coininsurance isnt issued when $24k loss occures and pro rata methodis used how much will each insurer pay

company A pays $16,000 company B $8,000

because an insurance is a legal contract, it must confrom to the states laws governing contracts which required all the following elemnets except

conditions

Under the limits of insurance provision found in the Physical Damage Coverage Form in a Commercial Auto policy, how much will an insurer pay to repair or replace a covered auto?

the lesser the actual cash value or the cost to repair or replace a covered auto

in terms of parties in a contract, which of the following does not describe a competent party

the person must have at least completed secondary education

which of the following is an example of a producer fiduciary duty

the trust that a client places in the producer in regard to handling premiums

All of the following are true statements of supplementry payments of a commercial general liabiliity policy except

they pay defense cost even after the aggregate limit has been reached

yje part of the policy that sets forth the rules of conduct,duties, and obligations is called ?

conditions

the basic DP-1 provies all the following coverages without endorsements except

coverages for additional living expense

which of the following is not the consideration an insured under a HO policy

A divorced spouse living in another state

Which of the following policies will help an auto dealership cover most of its liability exposers

A garage liability covergae

A tornado that destroyes property would be an example of?

A peril

which of the following statements is true regarding the premium computation for workers comp insurance

A premuim auditor has the right to examine the insureds comp recoreds at the end of the policy period to determine the actual premium basis

which of the following would be required to be licensed as an insurance producer

a salaried employee who advertises and solicits insurance

what type of liability would a person who owns a swimming pool?

absolute

The insreds house cost $150,000 to rebuild if something happens to the house. when he tries to sell the home he only get $80,000. what method of valution is use to insure the house

actual cost value

which of the following types of valuation works best for porperty whose value dose not fluctuate much

agreeed value

crime insurance is usually written on what basis

all-risk

bob insist that the insurer owes him $10,000nin damages. the insurer owes him no more than $7,000 which of the following is most likely to pursue

arbitration

which of the following is a method of claim settlement used in casualty insurance when the insured and insurer cannot argee on how too settle a claim

arbitration

if a loss occurs the insured with HO policy is requiured to do the following excpet

arrange for an apprasil by an unbiased third party

which of the following describes the transfer of a legal right to interest inn an insurance policy

assignment

in return for the premium an insurance company must

be fair in the underwriting and paid covered losses

an employee is injured while visiting employer out of state how does workers comp benefits come in to play

benefits will be provided if the state was listed on the policy information page

the crime of force entry into the premises of another by person with felonies intent is define as

burglary

injuries that occur when an employee is traveling to or from work are

covered under workers comp only when the means of transportation is paid for by the employer

which of the following is covered under the mail floater of commercail inland maarine policy only if is sent by regesterd mail

currency and unslod traverls check

an insured applying for casualty insurance policy one of the conditions of the party allows the insurance company to inspect the insureds books at the end of the policy term to make sure sufficient premium has been collected for the exposure she plans to insure which condition is part of the insureds policy

deposit premium audit

Which of the following specail liability coverages will provide protection to managers of a corperation for claims from a wrongful act committed by the manager while in official capacity

directors and officers liablity

the section of insurance policy that details what perils are not aganist and what persons are not insured is known as the

exclusions

in liability insurance policies supplementary payments are made

in addtion to the limit of liability

What do individuals use to transfer their risk of loss to a larger group?

insurance

all of the following are conditions commonly found in insurance policy except

insuring agreement

the part of an insurance contract that describes the covered perils and the nature of coverage of the contractual agreement between the insurer and insured is called

insuring agreement

an applicant for a license in Texas must include a statement with his application that provides information about all the following except

intending to apply for another license

joint underwriter association

is a voluntary association of admitted insurers whose members have been authorized by the state to provide a particular type of insurance to the public this type is not available from this voluntary market

residual markets

is an insurance market or facility that assumes risk that are unacceptable to the voluntary insurance companies, Assigned risk are part of the residual market all admitted share higher risk divers

temporary license

is granted up yo 90 days without examination to applicants whos completed 4o hours of training course before applying for the license or within 14 das after applying for a license A temporary license cannot be renewed

the additional living expense coverage on HO policy

is intended to allow the family to maintain its normal standard of living

if an employer in a state with elective workers compensation law chooses not to be subject to those laws, what does emplooyer lose

its common law defence agaisnt suits

a contract to be enforceable by law the purpose of the contract must be

legal and not against public property

in which of the following commercial crime policy coverage is triggered by a loss that happens during the policy period but is not necessarily discovered during the policy period

loss sustain form

All the following woulb be covered under the medical expense coverage of a businessowner policy except

metal health counseling

Duties of the insurer found in property policy conditions include all of the following EXCEPT

notify the insured's in the event of a financial difficulty

a bond is written for a set limit and the surety will be liable only for this amount of the limit this is known as the

penalty

an insured has a liability policy that sets the amount for all claims that arise from a single accident at $50,000 which does this insured policy have

per occurrence

when ABC market stated that its mowing machine was the only safe mower avalible to buy, ABC was sued by XYZ lawn garden which general liability coverage?`

personal and advertising injury liabilty

which of the following statements is incorrect with the regards to surplus lines insurance

policies written by a surplus lines insurer typically contain standard coverages and forms

while an insured was towing a trailler with his car the trailer came loose and hit a strore what part of the insureds auto poilcy would pay for thr=e damage inn the store

property liability damage

after a loss an insured covered by business property coverage is not required to

reconsruct for the insurertimeline of activites leading up to a loss for use in an investigation

which of the following is used in the formula calculating actual cash value of a property

replacement cost

in property insurance actual cash vale is defined as which of the following

replacement cost at the time of loss less depreciation

insurance is the transfer of

risk

the transfer of an insured right to seek damages from a negligent party to insurer is found which of the following clauses

subrogation

insurance produced from an unauthorized insurer is called

surplus lines

which of the following symbols is avalible to an insured with vehicles subject to no fault coverrage

symbol 5

an insurer can cancel a peroneal auto policy by giving the named insured 10 days prior written notice for any of the following reasons except

the cancellation is to take effect on the 12- month anniversary of the policy

perils most easily defined as

the cause of loss insured against

All of the following statements concerning coinsurance are true except

the coin insurance formula will also be applied to total losses

which of the following dwelling coverages would provide coverage to a garage not attached to the primary insured dwelling

the damage occurred when the concrete fell

which of the following losses would be covered under the property iability coverage of a peronal auto coverage

the insured damages a rented garage when he failed to stop in time

According to the standard workers comp and emplooyer liability policy form, a state should be listed in part 3- other states insurnace of the workers comp and employers libality policy when

the insured expcets to extend operations to the state

the medical payments coverage in a peronal auto policy will pay reasonable medical expenses for all the following execpt

the insured is injured while exiting a frends moblie home

which of the following circumstances would be excluded under medical payments coverage of a personal auto policy

the insureds is inured while driving motorcycle on his resident premises

all of the following conditions must exist for injury damage to be included in the products and complete operations hazards of a commercial general liability except

the inury or damage must occur within 90 days after the work insured is complete

A sued car daler trades his car in for a partial payment for a car on its lot. customer ddint bring a title AN other customer test drives the used car and got into an accident which coerage is true

there is no coverage

which of the following is not settled on a actual cash vaule basis while coveredd under the business property coverage form

valuble papers and records

which of the following is not one of the additional coverages in the builders risk form

vandalism

when a replacemnet auto is aquired during the policy period, what coverages will apply to it automatically under peronal auto policy

whenever covergae applied to the vehicle being rreplaced