misses on learn as you go
A dwelling policy has a standard deductible that applies to all property coverage, except fair rental value, additional living expense, and the fire department service charge. How much is this deductible?
$250
what is the maximum duration of a temporary license
180 days
What is the limit for the forgery or alteration coverage in the businessowners policy?
2500
How long is a waiting period upon purchase of flood coverage through NFIP?
30 days
the automobile rate filing made by the North Carolina Rating Bureau is deemed to be approved after
50 days
under the dwelling policy form, what is the maximum time limit during which multiple volcanic activities would be considered part of one occurrence?
72 hours
Coverage F (medical payments) under a homeowners policy would cover
A residence employee who is injured on the job.
Which of the following coverages is NOT included in the basic form dwelling policy?
Additional living expense
Under a businessowners policy, an insured can cancel the policy
At any time by mailing a written notice of cancellation.
Which of the following other coverages is NOT included in the basic form dwelling policy?
Breakage of glass (Breakage of glass is included in the DP-2 and DP-3 only.)
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 (The binding force in any contract is consideration. Consideration on the part of the insured is the payment of premiums and the health representations made in the application. Consideration on the part of the insurer is the promise to pay in the event of loss.)
With regards to a homeowners policy, which coverage provides for indirect or consequential losses?
Coverage D
The commercial property declarations page contains which of the following information?
Description of the property insured
Which of the following homeowners forms is designed for individuals that own and reside in a condominium?
HO-6
A Mobile Homeowners Policy is structured the same as a
Homeowners Policy.
How does the mobilehome endorsement affect the other coverage of law or ordinance in a homeowners policy?
It removes the coverage.
The insured was mowing the lawn in his yard with a lawnmower borrowed from his brother. The fuel line ruptured, and the lawnmower was destroyed in the fire. How will the insured's homeowners liability policy respond?
It will cover the damage.
A property insurance policy that insures a commercial building on a replacement cost basis includes the ordinance or law coverage endorsement. This endorsement will cover all of the following expenses EXCEPT
Ordinance with which the insured was required to comply prior to the loss.
The mobilehome endorsement alters the homeowners policy to cover a mobilehome and other structures on land
Owned or leased by the resident of the mobilehome.
The endorsement that can be attached to a Boiler and Machinery policy to provide coverage for perishable property for spoilage or damage caused by contact with refrigerant is called
Refrigeration interruption coverage. (Refrigeration interruption coverage covers perishable property.)
In a dwelling policy, which of the following other structures would be covered?
Rented to a neighbor for use as a private garage
Which policy condition in HO policies states that insurance applies separately to each insured?
Severability of insurance (Severability of insurance means that the insurance applies separately to each insured. This condition does not increase the insurer's liability for any one occurrence.)
Under the commercial property coverage program, the basic causes of loss form insures against loss caused by
Sprinkler leakage.
The members of a limited liability company are insureds under a businessowners policy (BOP) if
The limited liability company is designated as the named insured.
All of the following types of property are covered by a standard builders risk form EXCEPT
Tools 50 feet away from the building.
An insured covered under a Mobile Homeowners Policy wants to move the location of the covered mobile home. Which of the following must the insured obtain from the insurer?
Transportation/Permission to Move Endorsement
When is a producer allowed to charge a service fee in addition to the premium for the processing of an application for insurance?
When consented to in writing by the applicant
An insurer or authorized representative of the insurer that terminates the appointment, employment, contract, or other insurance business relationship with an agent shall notify the Commissioner
Within 30 days after the effective date of the termination.
On behalf and on request of an insurer by which an agent or limited representative is appointed, the agent or limited representative may from time to time act as an adjuster and investigate and report upon claims; however, he may do so
Without being licensed as an adjuster.
an insured works outside the home. The insureds sister lives with him and cares for his four children. when the insureds home is severely damaged by a fire, the family moves into an apartment while repairs are being made. the largest apartment available in the area has two bedrooms, so the insureds sister has to stay at a motel. How much will the HO-3 form pay for these additional living expense?
all of the expenses up to the coverage D limit
which of the following dwelling coverages would provide coverage to a garage not attached to the primary insured dwelling
coverage B
which of the following coverages will respond if a claim is made or a suit is brought against an insured for damages due to bodily injury or property damage caused by an occurrence to which the coverage applies?
coverage E- personal liability
the commercial property declarations page contains which of the following information
description of the property insured
which type of losses are covered by the standard fire policy?
direct losses only
all of the following are other coverages under the dwelling policy EXCEPY
earth movement
the perils covered b the beach area property plan include all of the following except
flood
the homeowners policy covers collapse caused by al of the following except
foundation cracks
which of the following types of property would be covered in homeowners coverage forms?
landlord furnishings in an on-premises apartment
under the dwelling policy, coverage c- personal property is
limited to covering a servants property while at an insured location.
which of the following homeowners endorsements covers liability exposures arising from incidental business conducted within a building on the residence premises?
permitted incidental occupancies
What type of coverage is Coverage E in homeowners policies?
personal liability
eligibility requirements for obtaining property coverage in the FAIR plan include all of the following except
property at risk must be owner occupied
a commercial property special form covers property in transit up to
$5,000
If the ownership of an insured vessel changes involuntarily, within how many days of the ownership transfer will the hull policy terminate?
15
The appraisal clause of the standard fire policy allows for the process of settling disputes over the ACV of the property or the amount of loss. When disputes arise, each party (insurer and the insured) must select an impartial appraisal within
20 days.
How many days prior to an insurer becoming insolvent may a claim be covered by the North Carolina Insurance Guaranty Association?
30 days
an automobile rate filing made by the NC rating bureau is deemed to be approved after
50 days
How much coverage is provided under a homeowners policy for theft or unauthorized use of a credit card?
500
assuming the insurer and the insured agree to make an amount payable for loss covered under a dwelling policy, how soon after the insurer has received proof of loss must it make payment?
60 days
Any agent, broker or limited representative who acts for a person other than himself negotiating a contract of insurance, for the purpose of receiving the premium, is deemed to be
An agent of the company. (Any agent, broker or limited representative who acts for a person other than himself negotiating a contract of insurance, for the purpose of receiving the premium, is deemed to be the company's agent. Any agent, broker or limited representative knowingly procuring by fraudulent representations payment, or the obligation for the payment, of a premium of insurance, may be found guilty of a Class 1 misdemeanor.)
Which of the following is NOT found in a commercial package policy?
Certificate of authority
which of the following dwelling coverage forms would pay replacement cost for the dwelling?
DP-2 and DP-3
Which of the following examples of losses paid under an HO-3 also would be paid under an HO-2 homeowners policy?
Damage to the dwelling caused by lava or dust from a volcanic eruption (An HO-3 covers losses on an open peril basis. An HO-2 covers losses on a named peril basis. Both forms cover damage to the dwelling caused by lava or dust from a volcanic eruption.)
replacement cost is defined as
Full replacement of property at its current cost, new and without reduction for depreciation.
Events or conditions that increase the chances of an insured loss occurring are referred to as
Hazards. (Hazards are conditions or situations that increase the probability of an insured loss occurring.)
When would a misrepresentation on the insurance application be considered fraud?
If it is intentional and material (A misrepresentation would be considered fraud if it is intentional and material. Fraud would be grounds for voiding the contract.)
For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become
larger
which of the following is true regarding business liability and medical payments coverage?
loss of electronic data is excluded under a business liability policy
which of the following is not true concerning fair rental value coverage provided in the dwelling policy
loss or expense caused by the cancellation of a lease is covered.
untrue statements on the application unintentionally made by insureds that, if discovered, would alter the underwriting decision of the insurance company, are called
material misrepresentations
which of the following will be covered by the contractors equipment floater in an unfiled inland marine insurance?
mobile equipment during transportation to and from the job site
which policy consists of the declarations and conditions, endorsements, and other attachments applicable to a single line of insurance?
monoline
an individual who sells insurance soley as a foreign military sales agent works with a
restricted license
an apartment occupants personal property would be insured under which homeowners form?
tenant broad form (HO-4)
which of the following statements best describes the abandonment clause of the standard fire policy?
the abandonment clause prohibits abandoning the property to the insurer in order to claim a total loss.
under a dwelling policy, which of the following is not a factor in determining loss
the amount negotiated by the insured
under a dwelling policy, which of the following is not a factor in determining a loss?
the amount negotiated by the insured.
The removal coverage included in the broad form dwelling policy will cover property temporarily removed from the premises to protect it from damage for how long?
30 days (Removal coverage is provided for 30 days in the broad and special form, provided that endangerment by a covered peril made the removal necessary.)
The regular National Flood Insurance Program would insure an eligible single-family dwelling for up to
$250,000.
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?
$48,000 (A house must be insured for at least 80% of its value on the date of loss to qualify for replacement coverage. In this example, 80% of $60,000 is $48,000.)
A commercial property special form covers property in transit up to
$5,000.
All of the following are special personal property limits under a homeowners policy EXCEPT
$500 for business personal property on the insured premises. (HO forms place a $2,500 limit for business personal property that applies on premises only. A limit of $500 applies to loss of business personal property while away from the premises.)
insurance companies are required to provide proof of loss forms to the claimant within how many days after the receipt of notice loss?
15
The Earthquake and Volcanic Eruption Endorsement added to Commercial Property policies consider all earthquake shocks as one earthquake if they occur within what maximum time period?
168 hours
under the additional living expense coverage, if a civil authority prohibits the insured from using the dwelling because of a direct damage to a neighboring location from a peril covered in the insured policy, loss would be covered for up to
2 weeks
If 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
30 days
The initial binding period for new workers compensation coverage issued by the North Carolina Rate Bureau is
30 days
how many days prior to an insurer becoming insolvent may a claim be covered by the north Carolina insurance guaranty association?
30 days
the removal coverage included in the broad form dwelling policy will cover property temporarily removed from the premises to protect it from damage for how long?
30 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
The removal coverage that is included in the broad form dwelling policy will cover property temporarily removed from the premises to protect it from damage for how long?
30 days (Removal coverage is provided for 30 days in the broad and special form, provided that endangerment by a covered peril made the removal necessary.)
According to the Insured Duties after a Loss provision in homeowners policies, if the insurer requires a signed, sworn proof of loss, the insured must provide within how many days?
60 days (If a loss occurs, the insured is required to send a signed, sworn proof of loss within 60 days of the insurer's request.)
Which of the following would NOT be covered by HO liability insurance?
Intentional tort
A private investigator has been hired by an insurance company to obtain a character report on an insurance applicant. The investigator contacts the applicant and requests an interview stating that he is conducting a research for a publication. The applicant permits the interview and unknowingly gives information that will be used in the underwriting decision. Which of the following does this scenario describe?
Pretext interview
following a property loss that is covered under a business owners policy, if the insurer and insured cannot agree on the amount of the loss, what method is used to resolve the issue?
appraisal
fist aid costs for others injured on the insureds premises
are paid in addition to the liability limit
the commissioner reports any violations of insurance laws and regulations to the
attorney general
if a licensee fails to notify the commissioner of insurer insolvency, if known or suspected, and to provide a statement of relevant facts, which of the following is true?
the commissioner may suspend or revoke the persons license.
Losses that result from the freezing of a plumbing system while the dwelling is vacant would be excluded under a homeowners policy unless
the insured had drained the plumbing system
an agent represents
the insurer
the cancellation provision in a business owners policy specifies all of the following except
the method of transferring the owner's rights
the commissioner is empowered to examine the records of any person transacting insurance in the state as an agency, an agent or broker of record. If the commissioner does examine a person, the expense of that examination will be paid by
the person examined
all of the following are other coverages included in both the broad and special form dwelling policy EXCEPT
theft of personal property
the business income coverage form covers consequential loss of a business income that occurs when a business must suspend operations because of a direct loss. which of the following terms best describes the nature in this type of coverage?
time element
which of the following best describes the amount of loss assessment coverage included under a homeowners policy liability coverage section?
un to 1,000 per occurrence
In an insured's neighborhood, individuals are required to pay the fire department if called to their premises. This insured has a homeowners policy. How much will the policy pay for these fire department service charges?
up to $500
An insured is a member of the neighborhood association, and has become liable for damage to a third party. Each member of the association has been assessed a portion of the loss equal to $2,000. How much will the Loss Assessment additional coverage of the insured's homeowners liability policy pay?
up to 1000
