Missed ?'s Sim. Two
What is the limit for the forgery or alteration coverage in the businessowner's policy
A) $2,500 b) $500 c) $5,000 d) $1,000
The owner of a small business applies for a fire insurance policy with limits equal to 100% of the property's value. The owner has huge unsold inventories and a large personal gambling debt. From an underwriting standpoint, this might indicate
A) A moral hazard b) A peril c) A speculative risk d) A pure risk
Because an insured owns a lot of expensive jewelry, her insurance agent has advised her to purchase a scheduled personal property endorsement. If the insured adds this endorsement to her homeowners policy, which of the following statements would be correct?
A) Coverage C limits no longer apply to the jewelry insured by the endorsement b) The amount of coverage will be doubled c) The endorsement becomes excess coverage d) The endorsement becomes primary coverage and the HO contract is secondary
All of the following are parts of a personal auto policy EXCEPT
A) Physical damage coverage b) Medical payments coverage c) Duties after an accident or loss d) Liability coverage
Which of the following persons is required to complete pre-licensing education in Wisconsin?
A) Resident applicant with a 2-year associate's degree in business management b) Any person who has completed a 4-year college degree in business with an insurance emphasis c) Any person who has completed a 2-year Wisconsin vocational school degree in insurance d) Limited lines titles insurance applicant
Personal property coverage under a homeowners policy would cover
A) The insured's camera if it was stolen while the insured is on vacation b) A neighbor's fence if damaged by the insured c) Property moved to a newly acquired residence after 60 days d) A pet that the insured is temporarily keeping for a friend
The Wisconsin Insurance Plan's maximum limit of coverage against loss by burglary or theft on any dwelling is
a) $15,000 b) $25,000 C) $5,000 d) $10,000
What is WIP's maximum coverage limit for burglary/theft on any dwelling?
a) $25,000 b) $50,000 C) $5,000 d) $10,000
The insured's home is covered by an HO-3. Two years ago, the insured bought the home for $58,000. Today, its replacement value is $60,000. How much Coverage A does the insured need to qualify for replacement cost coverage?
a) $46,400 B) $48,000 c) $58,000 d) 60,000
An insured's auto strikes a deer, causing the insured to lose control of the car and run into a tree. The total damage to the auto is $6,000. How will this loss be covered?
a) $6,000 would be paid under collision coverage b) This would not be a covered loss C) $6,000 would be paid under other-than-collision coverage d) $3,000 would be paid under other-than-collision; $3,000 would be paid under collision coverage
An intermediary's license remains in effect for how long?
a) 1 year b) 2 years c) 3 years D) Indefinitely
After the original hearing and a final order is issued, an aggrieved person may request a re-hearing within
a) 40 days b) 15 days C) 20 days d) 30 days
In an insured is in the process of moving to a new location, his personal property coverage under the dwelling policy will apply on a pro rata basis at both locations for
a) 60 days b) 90 days c) 5 days D) 30 days
Coverage under the builders risk form will end in all of the following situations EXCEPT
a) 60 days after the building became occupied b) The insured has sold the property C) 60 days after the construction has ended d) Construction has been abandoned
What documentation grants express authority to an agent?
a) Agent's insurance license b) Fiduciary contract c) State provisions D) Agent's contract with the principal
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
Which of the following would be named on the declarations page of a property or liability policy?
a) Beneficiaries b) All insureds c) Additional insureds D) First named insured
Pat is licensed to sell insurance to residents of Wisconsin through insurers are not authorized in Wisconsin. What kind of license allows Pat to do this?
a) Broker license b) Non-residential license C) Surplus lines license d) Resident producer license
Using an air-cooled engine, a proposed insured has developed a new, experimental aircraft. If the inventor applies for liability insurance, what rating type will the insurer most likely use?
a) Class b) Schedule c) Merit D) Judgement
Which of the following terms describes a situation in which an agent and policyholder act together to defraud the insurer?
a) Collaboration B) Collusion c) Coercion d) Teaming
A specific coverage part is listed on a commercial package policy declarations page, but there is no premium shown. What does that mean?
a) Coverage is automatic B) There is no coverage c) Coverage applies without premium d) This must be a misprint on the form
If an agent advises a policyholder to replace an insurance policy but only does so for the purpose of making commissions, the agent has committed an act of
a) Defamation b) Coercion C) Churning d) Misrepresentation
A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example of
a) Defamation b) Twisting C) Coercion d) Loading
An agent is selling a client a Variable Life Insurance policy and as an inducement shows the client a projection based upon shares of dividends paid on a similar policy. This is
a) Defamation b) Unacceptable business practice C) Misrepresentation d) Twisting
An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act?
a) Defamation b) Unfair discrimination c) Errors and omissions D) Fraud
A property form must contain all of the following clauses EXCEPT
a) Effect of other insurance on the coverage provided by the policy b) Termination of the insurance contract C) Assignment clause d) Location and description of the insured property
Which of the following special liability coverages will provide protection to managers of a corporation for claims arising from a wrongful act committed by the manager while in an official capacity?
a) Employment practices liability b) Errors and omissions insurance c) Malpractice insurance D) Directors and officers liability
The major portion of the premium for an equipment breakdown policy pays
a) For repairs after a loss b) For coverage for bodily injury and property damage of others c) For replacement parts D) For inspections and examinations
Melt Away Diet, Inc. circulates a flyer that falsely reports that is competitor, See Food Diet, markets a product that causes hair loss and skin rashes. This is an example of
a) Invasion of privacy b) Slander C) Libel d) False advertising
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
An insurer can refuse, cancel or deny insurance coverage to a class of risks based on which of the following characteristics of an applicant or insured?
a) Moral character b) Physical condition or developmental disability c) Sexual preference D) None of the above
An insured has a homeowners policy and is required to be a member of the homeowners association in her neighborhood. The association's community house has burned down, and the insured has been assessed $1,200 for her share of the rebuilding cost. How much of the assessment will her homeowner's policy pay?
a) None b) $500 C) $1,000 d) $1,200
Which of the following is NOT covered under Coverage E - Scheduled Farm Personal Property?
a) Portable structures b) Livestock c) Fish D) Turkey
What type of ocean marine insurance provides physical damage coverage for the ship while it is in transit?
a) Protection and indemnity B) Hull c) Cargo d) Freight
Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company?
a) Subrogation b) Warranty C) Aleatory d) Adhesion
The Commissioner conducts an exam of a domestic insurer and believes that the costs of examination places an unreasonable financial burden on the insurer. Which of the following will happen?
a) The fed. govt. will absorb part of the cost, and the state govt. will absorb the rest of the cost b) The costs will be reduced to the amt. that the examinee can reasonably pay; the rest will be paid by the fed. govt. C) The Commissioner's office may pay all or part of the costs d) If the Commissioner finds that the costs of an exam places an unreasonable burden on the examinee, the Commissioner's office may pay all or part of the costs
In which of the following situations would off-premises coverage in a broad theft endorsement apply?
a) The insured's jewelry is stolen from her vacation home after she returns home b) The insured's vacuum cleaner is stolen from her apartment C) The insured's camera is stolen from his vacation home while he is there d) The insured's live-in maid quarters are burglarized
The cancellation provision in a businessowner's policy specifies all of the following EXCEPT
a) The method of refund of unearned premiums b) The insured's cancellation requirements c) The insurance company's cancellation requirements D) The method of transferring the owner's rights
All of the following are true regarding physical damage coverage EXCEPT
a) The policy will pay up to $20 per day up to a maximum of $800 for rental transportation b) The insurer will pay for direct and accidental loss to a covered auto minus any applicable deductible C) The limit of liability is the greater of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle d) Losses to non-owned autos will be covered the same as the broadest coverage available for any covered auto, except non-owned trailers are limited to $1,500
Which of the following property clauses allows the extension of a major coverage, applying to specific losses not already insured?
a) The right of salvage clause b) The pair and set clause C) The extensions coverage d) The additional coverage clause
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) Uninsured motorist b) No-fault medical payments c) Liability D) Physical damage
Frank's Steaks furnishes meat to steakhouses. An accident on the premises causes the building to lose refrigeration for 32 hours. The state inspectors will not allow the meat in the refrigerating units to be sold for human consumption, and Frank loses $18,500 in disposing of the meat. What coverage under Frank's BOP policy will cover the loss?
a) Utility service - time element b) Extra expense c) Protective safeguards D) Utility service - direct damage
Personal business property out in the open is covered under commercial property policy only while
a) Within 150 feet of the described premises B) Within 100 feet of the described premises c) Located on the described premises d) Specifically described on the declarations