Missed Questions
If a person is using an auto with the belief that he is entitled to do so, subrogation rights under a personal auto policy would apply to all coverages EXCEPT A) physical damage B) uninsured motorist C) no-fault medical payments D) liability
A) physical damage
Which of the following is the federal body that regulates truckers who travel across state lines? A) Federal Motor Carrier Safety Administration B) Motor Carriers Commerce Agency C) Truckers and Trade Commission D) Federal Trade Commision
A) Federal Motor Carrier Safety Administration
What is the business auto coverage territory for? A) United States and its territories, Canada, or worldwide for private passenger hired autos B) only for the specific location of the business C) United States only D) United States and Mexico
A) United States and its territories, Canada, or worldwide for private passenger hired autos
With respect to auto insurance, the term owned autos includes all of the following EXCEPT A) a pickup or van titled to and used in the named insured's business B) any private passenger auto titled to the named insured C) a pickup or van acquired by the named insured during the policy period D) any private passenger auto leased to the named insured for a period of more than 6 months
A) a pickup or van titled to and used in the named insured's business
In a personal auto policy, the medical payments coverage is similar to A) accident insurance, because it pays medical expenses regardless of fault B) accident insurance, because it has the same limits C) bodily injury coverage, because it pays the insured's doctor bills D) bodily injury coverage, because it provides legal protection if the insured causes injuries to others
A) accident insurance, because it pays medical expenses regardless of fault
In order to get a nonresident license in Connecticut, a producer must do which of the following? A) apply and pay a fee to a nonresident state that reciprocates B) pass the nonresident state exam and satisfy their continuing education requirements C) represent an agency located in Connecticut D) surrender their license in their state of residence
A) apply and pay a fee to a nonresident state that reciprocates
Which of the following is NOT covered under the Utility Services - Time Element endorsement? A) damage to the insured's property caused by utility service disruption B) loss of business income arising from loss of utility service caused by an insured peril C) extra expense incurred to remain open for business following the loss of utility service caused by a covered peril D) none of the above would be covered
A) damage to the insured's property caused by utility service disruption
Residential structures, including individual condominium units, and their contents are insured by what part of the National Flood Insurance Program? A) dwelling policy form B) basic coverage form C) residential condominium building association policy (RCBAP) D) general property policy form
A) dwelling policy form
The condition allowing for legal action against insurers is subject to which of the following limitations? A) in the case of homeowners insurance, the suit must be entered against the insurer within 1 year from the date of loss B) in the case of a surety bond, the suit must be entered against the insurer within 1 year from the date of loss C) in the case of a construction payment bond, the suit must be entered against the insurer within 2 years from the date of loss D) in the case of an uninsured motorists claim, the suit must be entered within 18 months from the determination of uninsured status of the third party causing damage
A) in the case of homeowners insurance, the suit must be entered against the insurer within 1 year from the date of loss
Which of the following personal auto coverages would pay for the insured's travel expenses and loss of earnings while involved in the settlement process of a covered loss? A) liability coverage B) medical payments C) comprehensive coverage D) collision coverage
A) liability coverage
Under the dwelling policy, Coverage C - Personal Property is A) limited to covering a servant's property while at the insured location B) automatically provided as 50% of Coverage A C) a prohibited coverage in the dwelling form D) limited to 50% of the amount of insurance that is written as Coverage A
A) limited to covering a servant's property while at the insured location
ABC trucking company recently purchased XYZ manufacturing company. ABC wants to transport the new company's freight with their trucking division. The company also wants to continue to haul freight for the clients it has served for many years. In regard to coverage , which of the following is true? A) motor carrier coverage is needed B) the company must choose between being a private carrier and a common or contract carrier C) truckers coverage form is needed D) a truckers coverage form is needed along with the business auto coverage form
A) motor carrier coverage is needed
Which of the following covers a carrier for liability for loss to cargo while it is being transported in a truck? A) motor truck cargo policy - truckers form B) motor truck cargo policy - owners form C) trip transit policy D) truckers coverage form
A) motor truck cargo policy - truckers form
Erroneous Publishing copied all the material from Angels Inc.'s book. The only changes made by Erroneous were to rename the title and chapters, put a different cover on it, and distribute it as its own. Angels Inc. files a claim against Erroneous and seeks damages. Will a commercial general liability policy cover the claim? A) no, because the claim results from copyright infringement and is not in an advertisement B) no, because there is no bodily injury or property damage C) yes, because the claim is a result of Erroneous products and work D) no, because this event does not meet the definition of infringement
A) no, because the claim results from copyright infringement and is not in an advertisement
Which of the following would be the insured's duty in the event of a loss according to the duties in event of occurrence, claim, or suit condition? A) providing specific details regarding an occurrence B) delivering a claim to the insurer in person C) initiating the investigation of a claim D) promptly notifying the insurer of a claim by phone
A) providing specific details regarding an occurrence
The Federal Fair Credit Reporting Act A) regulates consumer reports B) protects customer privacy C) regulates telemarketing D) prevents money laundering
A) regulates consumer reports
A certified insurance consultant was advising his client on benefits and advantages of an insurance policy. His friend, an insurance producer, later sold the policy to the client. As a token of his appreciation for added business, the producers shared part of his commission with the consultant. Which of the following statements is true regarding this scenario? A) the consultant has violated the Cod provisions for compensation and will have to pay a fine B) the transaction was illegal; the consultant's license will be revoked C) the transaction was legal; consultants may receive fees for their services and commissions from the sale of policies they recommend D) the transaction was legal, as long as the Department of Insurance was notified
A) the consultant has violated the Code provisions for compensation and will have to pay a fine
All of the following situations would be covered under a professional liability policy EXCEPT A) the failure of an attorney to properly defend a client due to his personal dislike of the client B) failure of a doctor to render the quality of care that is customary in the medical field C) an accountant's error that inflated a bid and caused a client to lose a major account D) negligence of an architect who designed an unsafe building
A) the failure of an attorney to properly defend a client due to his personal dislike of the client
According to businessowners policy Section I, which of the following is NOT a condition to be met for the terms of the policy to apply to mortgageholders? A) the mortgageholder must petition the state department of insurance for named status B) if the insurer denies the claim, the mortgageholder may still take steps to receive loss payment C) the mortgageholder has the right to receive loss payment D) the insurer will pay covered losses or damage to each mortgageholder shown in the declarations
A) the mortgageholder must petition the state department of insurance for named status
Which of the following is NOT a goal of risk retention? A) to minimize the insured's level of liability in the event of loss B) to reduce expenses and improve cash flow C) to increase control of claim reserving and claims settlements D) to fund losses that cannot be insured
A) to minimize the insured's level of liability in the event of loss
Which of the following would NOT qualify as a hired auto? A) an auto rented for personal use B) an auto borrowed from an employee C) an auto hired by an employer D) an auto leased from a commercial rental company
B) an auto borrowed from an employee
Which of the following could be covered by an HO policy? A) property of a tenant not related to the insured B) an oriental rug in an on-premises apartment C) birds, fish, and animals D) a sports car kept in an attached garage
B) an oriental rug in an on-premises apartment
Which of the following statements is true regarding the premium computation for workers compensation insurance? A) the premium is set at the beginning of the policy period and will not change B) a premium auditor has the right to examine the insured's compensation records at the end of the policy period to determine the actual premium basis C) the premium basis for workers compensation insurance varies by the type of industry in which the insured is involved D) the insured pays a guaranteed premium based on an estimated value of the annual income received
B) a premium auditor has the right to examine the insured's compensation records at the end of the policy period to determine the actual premium basis
A businessowners policy is A) a monoline policy B) a self-contained prepackaged policy C) a special policy designed for large retail operations D) part of a commercial package policy
B) a self-contained prepackaged policy
Which of the following would be considered an insured under a business auto coverage form? A) a partner of the named insured for any covered auto owned by that person or a member of his or her household B) anyone while using, with permission, a covered auto owned by the named insured C) the owner or anyone else from whom the named insured hires or borrows a covered auto D) anyone using a covered auto while working in a business of selling, servicing, repairing, or parking autos if it is not the named insured's business
B) anyone while using, with permission, a covered auto owned by the named insured
A small trucking company stops transporting hay for area farmers and begins to haul hay for its own farm exclusively. In regard to the coverage on its trucks, which of the following is true? A) farm liability coverage applies B) business auto coverage form may apply C) any coverage form applies D) coverage can continue under the truckers coverage form
B) business auto coverage form may apply
In addition to the common policy conditions, all of the following conditions apply to liability coverage EXCEPT A) bankruptcy B) employers liability C) separation of insured D) legal action against insurer
B) employers liability
What method of premium computation relates an employer's losses, payroll, and premiums to the rating bureau's classifications of operations? A) arbitration plan B) experience modification factor C) workers classification factor D) merit rating plan
B) experience modification factor
An insured is involved in an auto accident in another state. The state has a financial responsibility law that specifies limits of liability higher than the limits shown in the declarations. What amount will the insured's policy pay? A) only the limits specified in the policy B) higher limits C) lower limits D) the insurer will not pay for out of state accidents
B) higher limits
Which of the following statements is NOT true regarding a personal umbrella liability policy? A) it provides excess liability coverage over underlying personal liability B) it provides errors and omissions coverage for an agency C) it may cover certain exposures not provided under the primary layer D) it may require the payment of a self insured retention
B) it provides errors and omissions coverage for an agency
Which of the following is defined as a covered cause of loss in businessowners property coverage? A) pollution B) leakage from fire-extinguishing equipment C) rain D) smoke from agricultural smudging
B) leakage from fire-extinguishing equipment
An insured unintentionally accepted forged currency during the course of regular business. Which of the following crime coverages protects against such a loss? A) forgery or alteration B) money orders and counterfeit paper currency C) employee theft D) inside the premises - theft of money or securities
B) money orders and counterfeit paper currency
All of the following are additional causes of loss included in the broad form of a commercial property policy EXCEPT A) water damage B) replacement cost C) falling objects D) weight of ice, snow, or sleet
B) replacement cost
At the time of loss insured against in a property and casualty policy, the insurer's claim settlement options include all of the following EXCEPT A) paying the value of the lost or damaged property B) replacing the property with other property of a lesser kind or quality C) paying the cost of repairing or replacing the lost or damaged property D) taking all or part of the property at an agreed or appraised value
B) replacing the property with other property of a lesser kind or quality
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must A) send an actual certified copy of the entire report to the consumer B) respond to the consumer's complaint C) defend the report if the agency feels it is accurate D) change the report
B) respond to the consumer's complaint
In a personal umbrella policy, the amount paid by the insured for certain losses not covered under the primary coverage is called A) participation requirement B) self insured retention C) stop loss D) coinsurance
B) self insured retention
Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy? A) the insured would have to pay the self-insured retention limit B) the insured would be responsible for the amount required as underlying limits in the event of a claim C) it would have no effect on the umbrella policy D) the policy will be cancelled
B) the insured would be responsible for the amount required as underlying limits in the event of a claim
All of the following statements are true regarding fire department service charge additional coverage under the businessowners policy EXCEPT A) this coverage provides an additional $2,500 amount of insurance B) this coverage limit pays in place of the limit of insurance shown in the declarations C) this coverage limit is payable in addition to the limit of insurance shown in the declarations D) this coverage is not subject to any deductible
B) this coverage limit pays in place of the limit of insurance shown in the declarations
The insurer must be able to rely on the statements in the application, and the insured must be able to rely on the insurer to pay valid claims. In the forming of an insurance contract, this is referred to as A) implied warranty B) utmost good faith C) reasonable expectations D) a warranty
B) utmost good faith
All of the following are essential elements of a commercial package policy (CPP) EXCEPT A) policy conditions B) valuations and/or settlement provisions C) interline endorsements D) declarations page
B) valuations and/or settlement provisions
What is the limit for the forgery or alteration coverage in the businessowners policy? A) $500 B) $1,000 C) $2,500 D) $5,000
C) $2,500
The businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period? A) 90 days B) 120 days C) 1 year D) 3 years
C) 1 year
Which of the following statements is true concerning the special form dwelling policy? A) both Coverage A and Coverage C are provided for the broad form perils B) Coverage A is for all-risk perils, and Coverage C is for basic perils only C) Coverage A is for all-risk perils, and Coverage C is for the broad form perils D) Both Coverage A and Coverage C are provided on an all-risk basis
C) Coverage A is for all-risk perils, and Coverage C is for the broad form perils
The Commissioner suspects a producer of chronically misleading prospective applicants. Before a cease and desist order is issued, what must happen? A) the State must covertly monitor the producer for 90 days B) the State must issue a warrant for the producer's arrest C) a legal hearing will be held D) the license will be put on probation for 90 days
C) a legal hearing will be held
Which of the following is NOT considered an insured contract under the commercial general liability policy? A) an obligation as required by ordinance to indemnify a municipality, except for work for a municipality B) a written lease agreement on the insured premises C) a written agreement which indemnifies a person for fire damage to the premises rented to the insured D) an elevator maintenance agreement
C) a written agreement which indemnifies a person for fire damage to the premises rented to the insured
First aid costs for others injured on the insured's premises A) Also cover injuries to the insured's family members B) Are deducted from the liability limit C) Are paid in addition to the liability limit D) Apply only if the insured is legally liabile
C) are paid in addition to the liability limit
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? A) representation B) adhesion C) consideration D) good faith
C) consideration
Professional liability coverage protects the insured against legal liability resulting from A) dishonest acts B) the unprofessional conduct of an employee C) errors and omissions D) liability assumed under a contract
C) errors and omissions
Which of the following is a unit of measurement an underwriter uses when determining the premium rates for insurance? A) hazard B) risk C) exposure D) loss
C) exposure
The condition allowing for legal action against insurers is subject to which of the following limitations? A) in the case of a construction payment bond, the suit must be entered against the insurer within 2 years from the date of loss B) in the case of an uninsured motorists claim, the suit must be entered within 18 months from the determination of uninsured status of the third party causing damage C) in the case of homeowners insurance, the suit must be entered against the insurer within 1 year from the date of loss D) in the case of a surety bond, the suit must be entered against the insurer within 1 year from the date of loss
C) in the case of homeowners insurance, the suit must be entered against the insurer within 1 year from the date of loss
A business uses its own trucks to deliver their own products to the customer. Which commercial auto coverage form should the business but to insure the trucks? A) commercial carrier coverage B) Truckers liability C) motor carrier coverage D) business auto physical damage
C) motor carrier coverage
the purpose of insurance regulation is to A) make insurance statutes uniform among states B) make insurance companies pay taxes C) promote the public welfare D) keep producers honest
C) promote the public welfare
Under the personal auto policy, liability for bodily injury resulting from the insured's use of a nonowned automobile is A) shared on a pro rata basis B) provided by the insured's policy on a primary basis C) provided by the insured's policy on an excess basis D) not covered
C) provided by the insured's policy on an excess basis
property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called A) blanket coverage B) described coverage C) specific coverage D) schedule coverage
C) specific coverage
Which of the following would the livestock coverage form NOT insure against? A) death of livestock caused by accidental drowning B) death of livestock caused by a tornado C) the euthanasia of livestock after being hit by a vehcile D) the euthanasia of livestock suspected of carrying mad cow disease
C) the euthanasia of livestock after being hit by a vehicle
Who is NOT an insured for liability on a BAP? A) anyone liable for the conduct of the insured B) the named insured in any covered auto C) the owner of a car the insured borrows D) anyone using a covered auto with permission
C) the owner of a car the insured borrows
The individual named insured endorsement under a commercial auto policy provides coverage for which of the following? A) the sole proprietor of the business and his or her employees B) the sole proprietor of the business and his or her spouse only C) the sole proprietor of the business and his or her family members D) the sole proprietor of the business only
C) the sole proprietor of the business and his or her family members
All are true if a contractor defaults on a performance contract EXCEPT A) the principal's obligations end B) the surety will attempt to seek reimbursement from the contractor for any amounts it pays C) the surety may cancel the bond so as to avoid having to pay losses and expenses D) the obligee may hire another contractor to complete the job and have the surety repay the obligee
C) the surety may cancel the bond so as to avoid having to pay losses and expenses
A commercial auto coverage form that is designed for insureds engaged in the business of transporting goods for others is a A) garagekeepers coverage form B) cargo carriers coverage form C) truckers coverage form D) commercial carrier coverage form
C) truckers coverage form
CGL Coverage B (Personal and Advertising Injury) will cover A) the failure of goods to conform to advertised quality or performance B) oral or written publication of material the insured knows is false C) an offense committed by an insured whose business is advertising D) inadvertent injury to others caused in the course of advertising the insured's product
D) inadvertent injury to others caused in the course of advertising the insured's product
Each automobile liability insurance policy issued or renewed will provide uninsured and underinsured motorist coverage with limits for bodily injury and death equal to those purchased to protect against loss resulting from the liability imposed by law A) unless any named insured requests in writing a lesser amount than the limits specified by law as liability limits B) unless any named insured verbally requests a lesser amount than the limits specified by law as liability limits C) unless any named insured requests in writing a lesser amount, but not less than the limits specified by law as liability limits D) unless the claimant requests in writing a lesser amount, but not less than the limits specified by law as liability limits
C) unless any named insured requests in writing a lesser amount, but not less than the limits specified by law as liability limits
The cost of restoring farm records is an additional coverage offered under a farm policy. How much will the policy pay to restore the records? A) up to $1,000 B) up to $1,500 C) up to $2,000 D) up to $2,500
C) up to $2,000
which of the following is NOT settled on an actual cash value basis while covered under the business property coverage form? A) manuscripts B) works of art or antiques C) valuable papers and records D) property of others
C) valuable papers and records
Under Coverage C of a farm policy, what is the limit payable on business property located away from the premises? A) $1,000 B) $100 C) $250 D) $500
D) $500
Rates that are established based on the similarities of the risk with other risks are known as A) experience rates B) "A" rates C) Merit rates D) Manual rates
D) Manual rates
which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses? A) exclusions B) declarations C) insuring agreement D) additional coverage
D) additional coverage
In which of the following types of property valuation will the policy pay the full value as specified on the policy schedule, regardless of the insured property's appreciation or depreciation? A) replacement cost B) stated amount C) market value D) agreed value
D) agreed value
A farmer is remolding his 100 year old farmhouse. He is in the process of painting the porch and hanging shutters. He keeps his ladder, paint, and other materials used to remodel his home under the porch. Which of the following provides coverage for his remodeling materials? A) coverage B B) coverage C C) coverage D D) coverage A
D) coverage A
All of the following are optional coverage that may be attached to an HO-3 policy EXCEPT A) home day care coverage B) Earthquake coverage C) personal property replacement cost D) dwelling replacement cost
D) dwelling replacement cost
In addition to the common policy conditions, all of the following conditions apply to liability coverage EXCEPT A) separation of insured B) legal action against insurer C) bankruptcy D) employers liability
D) employers liability
Which of the following statements is NOT true regarding a personal umbrella liability policy? A) it may cover certain exposures not provided under the primary layer B) it may require the payment of a self-insured retention C) it provides excess liability coverage over underlying personal liability D) it provides errors and omissions coverage for an agency
D) it provides errors and omissions coverage for an agency
Which of the following terms refers to other insurance that is written on the same risk, but not on the same coverage basis? A) primary and excess B) pro rata C) contribution by equal shares D) nonconcurrency
D) nonconcurrency
What type of coverage is Coverage E in homeowners policies? A) additional coverage B) loss of use C) personal property D) personal liability
D) personal liability
In a dwelling policy, which of the following other structures would be covered? A) used as part of a farming operation B) used by the insured in which to operate a retail business C) used by the insured to house a manufacturing operation D) rented to a neighbor for use as a private garage
D) rented to a neighbor for use as a private garage
Which method of loss valuation is contrary to the basic concept of indemnity? A) Functional replacement cost B) market value C) Agreed value D) Replacement cost
D) replacement cost
According to the businessowners policy (BOP) definitions, which of the following does NOT mean valuable papers and records? A) manuscripts B) drawings and maps C) inscribed deeds D) securities
D) securities
An HO 91 client has suffered losses to his home from fire. The city building inspector advises that the home will need to have sprinklers installed when the home is repaired in order to comply with city building ordinances. Which of the following statements is correct concerning these losses? A) these losses cannot be covered in a policy in CT B) the losses will not be covered, since increase in the cost of construction due to building ordinance or law is exluded C) the losses will be covered as any other losses would, assuming that the underlying causes of the losses are covered and there is a sufficient dollar limit for Coverage A D) the losses will be covered, subject to a limit of 10% of Coverage A
D) the losses will be covered, subject to a limit of 10% of Coverage A
All of the following are other coverages included in both the broad and special form dwelling policy EXCEPT A) collapse B) breakage of glass C) lawns, trees, shrubs, and plants D) theft of personal property
D) theft of personal property