NH Adjuster for Property & Casualty
The Business Auto policy defines an "accident" as:
"A sudden and unforeseen event that includes continuous or repeated exposure to the same conditions that results in bodily injury or property damage." This is the definition of "occurrence" in most liability policies, but the Business Auto policy creates its own definition of "accident" like most liability policies. It is important for you to understand that if you are asked a "definition" question, you will need to remember the definition from the specific policy type, as they can be different.
Under the ISO standard BOP form, how much would be paid for any one tree, shrub, or plant in case of a covered cause of loss?
$1,000 -- w/ a total limit of $2,500
If an insured takes precautionary measures to protect property from flood damage such as creating a retaining wall of sand bags, how much coverage if any, will be provided by a flood policy?
$1,000 if the flood is imminent and the property is in danger of flooding.:: The policy will provide additional coverage up to $1,000 for preventative measures taken to prevent the property from an imminent flood loss. This $1,000 however will be subtracted from the policy limit covering any property that may be damaged by the imminent flood.
The insured has suffered roof damage as a result of a tornado. He makes temporary repairs until permanent repairs can be made. He spends $1,500 for this work. How much, if any, will the DP-2 dwelling policy pay?
$1,500 :: The policy will pay all of the costs due to the "reasonable repairs" clause in the policy. This pays for the cost to make reasonable repairs in order to protect the property from further loss.
John has commercial property coverage written on a value reporting form. The maximum limit of coverage for inventory values is $150,000. The insured has reported an inventory value of $75,000 when the actual value was $100,000. A $20,000 loss occurs. The insurer will pay:
$15,000 : The insured is required to carry a 100% coinsurance clause when the reporting form method is used. The insured is also required to report 100% of the actual inventory values. This insured reported less than the actual inventory by 25% and will only receive 75% of a partial loss or $15,000.
Bob is purchasing a commercial property policy to cover contents of a building valued at $100,000. The policy includes an 80 percent coinsurance clause. To avoid a coinsurance penalty in the event of a partial loss, Bob should purchase a policy with minimum limits of at least$80,000
$80,000 :: The value of the covered property is ($100,000) times 80% = $80,000.
The amount of loss under a fire insurance policy will be due and payable in______ days after receipt by the insuring company of proof of loss, and the insured may commence an action after the expiration of that time to recover the same.
60 Days
Dwelling forms include a liberalization clause. It says that any revision of coverage which broadens the insurance without an additional premium charge will be automatically applied to existing policies, if the revision is adopted during the policy period or within:
60 days prior to the effective date. ::: This provision is slightly broader on personal lines than on commercial coverages. On most commercial policies, the time period is 45 days. Except where a state exception applies, 60 days is correct for dwelling forms.
Which of the following is a type of "voluntary loss" taken to save the property from further loss?
A "General Average Loss" is a partial loss that is "voluntary". This type of loss is taken to save the property from further loss, such as an insured who uses a garden hose to extinguish a fire that has started on her couch. The water damage is "voluntary" but it prevented further loss to the house.
The insured has sustained a loss of income from a covered peril under his Businessowners policy. What deductible applies to "loss of income" coverage?
A "time deductible" of 72-hours. :: Business income coverage is triggered by direct physical loss or damage, from a covered cause of loss, to property at the described premises. This loss must result in a suspension of the businesses operations and activities during the period of restoration. The period of restoration begins 72 hours after the time of the direct physical loss or damage. Thus, there is a time deductible.
Whenever the Commissioner has reason to believe that any person involved in the insurance business in New Hampshire is engaging in any method of competition, or any act or practice that appears to be unfair or deceptive may call for a hearing. A ____day notice must be sent to the involved parties.
A 10-day Notice is required
Whenever the Commissioner has reason to believe that any person involved in the insurance business in New Hampshire is engaging in any method of competition, or any act or practice that appears to be unfair or deceptive may call for a hearing. A ____notice must be sent to the involved parties.
A 10-day notice must be sent to all parties.
An insurer that wishes to cancel or non-renew a policy OTHER THAN an automobile, workers compensation or commercial policy may do so for the approved reasons by sending the insured a _____ day advance notice.
A 45-day advance notice is required except for nonpayment of premium which requires a 10-day notice on policies OTHER THAN automobile, workers compensation, or commercial coverages.
An insurer desiring to cancel or nonrenew a personal auto policy must send the insured a _____day advance notice.
A 45-day notice is required except for nonpayment of premium which requires a 10-day notice.
An oral or written contract for temporary insurance is referred to as a:
A Binder: A binder is issued where evidence of insurance is needed prior to the policy issuance. In most states the binder can be in writing or made orally. There are a few state exceptions, such as California, where oral binders are not permitted.
The insured owns a 20-foot fishing boat with a 50-horsepower motor. Which of the following policies would be best suited to cover the loss of the boat while its on a lake?
A Boatowners/Watercraft policy :: The Boatowners/Watercraft policy would be the better product to cover a fresh water boat of this size and horsepower. The Homeowner policy has a limitation for physical damage coverage and does not cover the theft of a boat off the insured's premises. Also, the Homeowners policy would not cover the liability of an outboard motor of more than 25-horsepower.
A person takes bank deposits to the bank every day. In crime insurance terminology, this person is known as a:
A Messenger: :: A Messenger has custody of the insured's property outside the insured's premises
The information provided by the insured in a proof of loss form is considered:
A Representation:: Statements made by the insured that are assumed to be truthful to the best of the insured's knowledge
Covered auto is car being borrowed for use either , personal or borrowing while car is getting serviced or when wrecked in accident.
A car being out of gas is not a covered auto.
Which of the following people does NOT have an insurable interest in an insured property?
A home owner's interest in the local town's water pipes that deliver water to his home.. :: The homeowner has no insurable interest in the town's water pipes as he does not own them
What commercial auto policy form would be used to cover a company that transports their own property and property of others?
A motor carrier is anyone who transports property by auto in a commercial enterprise, regardless of whether he or she was hired for that purpose. The BAP can be used to cover an insured when transporting his or her own property. However, if an insured is transporting property of others and his or her own property, the Motor Carrier form should be used. Damage to the cargo itself would be covered under a Commercial Inland Marine form.
According to the Definitions section of a homeowner policy, the term best described by the phrase an "unforeseen and unintended" event is a/an:
Accident
How are household personal property claims settled under the farm policy?
Actual Cash Value :: Claims under farm policies for household personal property will be settled on an actual cash value basis similar to the homeowner policy. An endorsement for replacement cost settlement is available for additional premium.
In New Hampshire, every insurer, upon notice of a claim, must acknowledge the receipt of such notice in writing within:
All claims must be acknowledged within 10 working days. This requirement does not preclude a faster acknowledgement.
Under the Motor Carrier Act of 1980, a vehicle hauling excess oil, explosives or nitrous gases is required to carry a minimum liability limit of:
Although oil haulers are only required to carry $1,000,000, the key word here is "excess oil" and when followed up with "explosives" makes this freight hazardous requiring the $5,000,000 limit.
The insured is a trucking company that carries cargo. One of the insured trucks is involved in an accident and the goods it is transporting are damaged. Which of the following coverages would respond to cover this loss?
An Inland Marine Motor Truck Cargo Policy:: Property in the insured's care, custody and control is excluded. The insured would need to carry a motor truck cargo inland marine type of policy.
Cyber liability coverage provides all of the following, EXCEPT
An employee intentionally downloading a program containing a virus onto the company computer which compromises customer information. :: Intentional acts by the insured, employees or contractors hired to perform services for the insured are excluded from coverage. The ISO form, when attached to the CGL policy, is called the "E-Commerce" endorsement.
Other "private" structures on a farm policy are defined as
Another private structure on the property separated from the dwelling by a clear space..:: A detached garage separated by a clear space from the dwelling and not for business purposes would be considered a "private" structure
In the event of a dispute between the insurer and insured concerning the value of a property settlement, which of the following homeowner conditions would apply?
Appraisal:: In case of a dispute regarding the value of the insured property in case of a loss the problem can often be resolved by the appraisal clause. Each party gets an appraiser. If they can't agree then an umpire is selected to make the decision. Each party pays their share of the umpire's fee.
An interline endorsement used in a Commercial Package Policy (CPP): I. May be mandatory or optional. II. Is an endorsement that applies to more than one line of insurance.
Both I and II :: Interline endorsements are used in the CPP to simplify coverages and conditions among many different forms. Many of the same policy conditions apply to the various coverage parts.
Because of the Nationwide Inland Marine definition, which of the following can be covered under a commercial inland marine policy?
Bridges:: Eligible b/c they are an instrument of transportation -- same w tunnels
All of the following are true regarding the "mobile agricultural machinery and equipment" form, EXCEPT
Combines and cotton pickers are eligible for coverage.. :
Which of the following coverages would apply to a rental car used by an insured executive while on vacation?
Coverage for Non-Owned Autos :: whether it be a rental car or a vehicle belonging to a friend
Fidelity bonds are used to cover:
Employee dishonesty
Under Coverage E - Scheduled Farm Property, how is the property covered?
For the limit shown in the policy declarations :: The property is covered for the limit shown on the declarations page of the policy for the property specifically scheduled.
Each of the following people would be an insured for auto medical payments coverage under Bob Miller's business auto policy, EXCEPT:
Frank Thomas, Bob's 17-year-old son, occupying an auto that is not a covered auto. Frank lives with his mother, who is divorced from Bob. :: The son is not covered. He does not live with the named insured and is injured by an auto that is not a covered auto owned by Bob Miller.
Which of the following results in immediate payment when the claimant signs a release relinquishing his or her right to sue?
Full Release Settlement
Which of the following pollution losses would be covered under the garage liability policy? I. Escape of toxic sludge from a dump site the named insured utilizes to store garage waste. II. Pollution of a creek caused by gasoline leaking from the ruptured fuel tank of a truck following a collision with another vehicle.
II Only : Only escaped pollutants that are needed for the proper operation of the vehicle (such as fuel, oil, or battery), or pollutants that escape as a result of an auto accident are covered.
Insurance companies add the name of the claimant's attorney as an additional loss payee on claim settlement drafts. Which of the following statements describes the reason for this?
If the insurance company only lists the claimant on the settlement, the claimant may not pay the attorney his/her fee from that payment, and the attorney could then sue the insurance company for payment.
Jack rents a home to Tanya and maintains a DP-3 policy on the dwelling. Tanya accidentally leaves the oven on all day while she is out, her Lasagna catches fire, burning Jack's house to the ground, along with all the contents located inside. Which of the following items would be covered under Coverage C of Jack's DP-3 policy?
Jack's appliances :: Coverage C is for personal property (contents). Since this is Jack's policy, it will cover his appliances but nothing belonging to Tanya (her renters insurance would cover it). The damage to the structure would be covered under Coverage A of Jack's policy.
Joe's 21-pound cat runs into the neighbor's yard and severely scratches the neighbor's arms and face. Which of the following would respond to the neighbor's emergency room bills?
Joe's homeowners policy under the Personal Liability section
A furrier customers policy does not cover:
Loss in excess of the value of the property as declared by the owner. :: The furrier is not responsible for a value beyond what is declared by the owner of the property.
Maggie Mae is a cleaning professional who works for Maid My Day household cleaning services. Maggie Mae is traveling in her own vehicle, to a client's home when she strikes and hits a pedestrian. Maggie Mae is liable as the owner and operator of the vehicle, but Maid My Day could be held _______ liable, because Maggie Mae was acting on their behalf.
Maid My Day could be held vicariously liable, because Maggie Mae was acting on their behalf.
Any misinformation provided by an applicant which is such that the insurance company would not have issued a policy if the true facts were known is:
Material Misrepresentation :: This statement defines material misrepresentation, which is deliberately withholding an important fact that would have a bearing on the acceptability and/or pricing of the risk.
If an insurer is neglectful in adjusting a property claim or commence repairs within 20 days after the adjustment of the loss, the insured:
May proceed with the repairs on their own. :: The insured may proceed to rebuild or repair at the expense of the company, which will be liable for the reasonable expenses incurred in so doing and for the loss sustained by its neglect, not exceeding the amount insured; or the insured may commence an action upon the policy.
What coverage under the BOP automatically applies if a customer slips and falls on the named insured's premises, regardless of legal liability?
Medical expense coverage :: Medical expense coverage pays regardless of the insured's legal liability. It is a "good will" type of coverage where negligence is not a factor in the claim.
Which of the following statements is FALSE concerning coverage under the Business Auto policy?
Medical payments coverage is automatically provided. :: Medical payments coverage is an optional coverage (and not automatically provided) for autos under the Business Auto policy.
What Commercial Auto form is used to cover taxis and bus companies?
Motor Carrier Form: used to cover these types of vehicles. This form is used for a risk carrying persons or property. An MCS-90 filing would be required, showing that a minimum of 1 million of liability coverage per accident was in place when hauling passengers for a fee.
Common and Contract Carriers Liability that covers damage to cargo, may be insured under:
Motor truck cargo forms :: Motor truck cargo forms are used to cover common and contract carriers against damage to the property being transported.
Oliver Dogwood was in an auto accident which destroyed his car. While investigating the accident, Adjuster Doright found that Mr. Dogwood paid $1,000 for the vehicle. After checking with others he found the same vehicle with an asking price of $1,700, a retail price of $2,150 and a dealer price of $1,750. What amount will Mr. Dogwood receive?
Mr. Dogwood will receive $2,150 plus any sales tax. The insured is required to pay retail price plus sales tax.
The penalty for failure to satisfy a coinsurance requirement of a property insurance policy is:
Only a portion of a partial loss will be paid. :: If the insured's policy contains a coinsurance clause and the insured carries less than 80% of the value of the property, a penalty will occur in case of partial losses. Topic found in the Property Insurance Concepts chapter; Module A of the Virtual Classroom.
Collision is referred to as colliding with another object or _____of the vehicle.
Other terms for the collision include "upset" and "rollover"
Under the farm policy, which of the following is not considered livestock?
Poultry have two legs, whereas livestock has four legs. Therefore, poultry is not eligible under the generic livestock form and would require a special endorsement to be covered.
All of the following would be covered under a Builders Risk Policy, EXCEPT:
Prospective Buyer :: A prospective buyer could not be added to the policy as an insured. They would not have an insurable interest in the property.
An insured has purchased a Businessowners Policy. He insures both the real and personal property. Assuming no endorsements apply, will property losses be adjusted on an actual cash value basis or on a replacement cost basis?
Replacement Cost Basis :: Unless endorsed otherwise, the BOP adjusts property losses on an RCB
Meg has been in very good health in the past 3 years. She has been exercising, her blood pressure is at a perfect level and her cholesterol is the envy of all her friends. Because Meg is feeling so healthy, she decides to cancel her health insurance policy. This is an example of which of the following risk management methods?
Risk Retention:: Meg is retaining the risk that she may pay her own Medical Bills should something arise
Forcible removal of property from a messenger through the threat of violence is called:
Robbery. :: Must involve a threat of violence or injury
Roger has his golf clubs stolen out of the trunk of Sam's car. Which policy will pay?
Roger's homeowner policy. :: The claim would be paid under Roger's Homeowner policy. The Homeowner policy provides worldwide coverage on personal property including the peril of theft. Certain classes of personal property provide for a limit of coverage for theft.
Unless revoked by the Commissioner, the license and any renewal will expire on October 1 of the:
Second calendar year after its issue. :: Adjuster licenses expire on October 1 of the second calendar year after issue.
An adjuster has uncovered some discrepancies in matters pertaining to a claim, and is unable to contact the insured to discuss these matters. What should the adjuster do in this situation?
Send a reservation of rights letter to the insured's last known address.
What symbol or symbols are used to cover hired and non-owned vehicles under the commercial auto policy?
Symbols #8 and #9 is used in these instances. Symbol #8 represents hired autos only and symbol #9 represents non-owned autos only.
Which of the following is the first duty of the insured after suffering a property loss?
Take steps to protect the property from further loss
Which of the following is an ideal form of protection for the frequent shipper of goods?
The Annual Transit Policy is written to cover the goods shipped by the insured on a regular basis throughout the year. A Trip Transit Policy is designed to cover only a single shipment of goods.
What limit of liability would be needed for a risk that transports radio active materials as required by the Motor Carrier Act under the MCS-90 endorsement?
The MCS-90 endorsement requires the insured to carry a minimum of $5,000,000 in liability coverage. The endorsement provides for environmental restoration coverage as a result of pollution damages. The higher limit is required if transporting extra hazardous material.
In terms of fidelity bonds, what does "name scheduled" refer to?
The bond covers only those persons listed by name on the bond's schedule. :: Some fidelity types of coverage do not provide blanket coverage for all employees. As such, coverage is provided for only those individuals named on the schedule attached to the bond.
An insured building suffers a total loss as a result of fire or lightning without criminal fault of the insured. The insurance company is required to pay:
The building limit insured by the policy :: The insurer is required to pay the total limit of the policy on the building.
If Symbol 23 is used in the Declarations to identify covered autos under a Garage policy, which of the following would be a covered auto?
The correct answer is: A sedan owned by the named insured..:: Symbol 23 in the Garage policy is similar to Symbol 3 in the Business Auto policy. Symbol 23 is used to cover "private passenger-type" vehicles only.
Which of the following statements describes an action that the adjuster cannot take after a claimant has hired an attorney to represent him/her in handing a claim?
The correct answer is: Contact the claimant without the consent of the attorney..::: Once the claimant has hired an attorney to represent the claimant, the adjuster may not contact the claimant directly without the consent of the attorney.
How do you calculate the number of square yards of carpeting and padding needed for a room?
The correct answer is: Determine the square footage of the room and divide by nine.. ::: Carpeting and padding are calculated on a per yard basis. There are nine feet in a square yard. Determine the square footage of the room by multiplying the width by the length of the room and divide by nine. This will give you the number of square yards of carpet and padding needed to complete the room. NOTE TO STUDENT: You cannot take a calculator into the state licensing exam with you. You will need to calculate this on your own, so practice practice!
Kelly, Vince, Ed, and Ginny are all staff adjusters. Which of these adjusters is acting appropriately as a fiduciary agent?
The correct answer is: Ed knows the claimant can't possibly afford to pay for their extensive damages, but he denies the claim anyway because the cause of loss was not covered by the policy..:: If a claim is not covered by the policy, the staff adjuster has a fiduciary responsibility to protect the financial interest of the insurer and deny the loss. The fact that the claimant can't afford to pay for the damages has nothing to do with the coverage issue.
The Businessowners Policy provides coverage on the buildings and contents. How is the coverage provided?
The correct answer is: Either on an actual cash value basis or replacement cost basis.
Which of the following is considered a "garage operation"? I. Ownership, maintenance or use of garage premises. II. Sale of products or services in connection with garage operations. III. Ownership or maintenance of covered autos. IV. Production or support of racing or competitive operations.
The correct answer is: I, II, and III only. Garage operations includes auto and business liability for covered autos, the premises and its associated operations, but specifically excludes all forms of racing.
When is it appropriate for an adjuster to secure a non-waiver agreement with an insured?
The correct answer is: If there is a question of coverage. ::: A properly executed non-waiver agreement allows the insurance company to complete a thorough investigation without implying that coverage is available for the loss.
In a published interview, a local merchant charges that one of his competitors is guilty of unethical and illegal business practices. The competitor sues and is awarded $25,000 in damages. Under which definition of "personal injury" would the merchant have coverage for this claim under his CGL policy?
The correct answer is: Libel, slander, defamation, invasion of privacy..
A homeowner who moves into a new house and discovers that it has several major defects, may seek a claim against the contractor's: I. Products and completed liability coverage. II. Owner's and contractor's protective liability coverage.
The correct answer is: Neither I nor II.::: Although the homeowner may have a valid claim against the contractor, neither liability coverage applies because the damages do not involve either bodily injury and/or property damage.
Which of the following is NOT a claim settlement option in a property loss?
The correct answer is: Pay market value only.. :: Offering market value only is not a claim settlement option. If the insured carries replacement cost coverage then the adjuster needs to address the payment of the claim accordingly.
Under the discovery clause in the loss sustained policy, which of the following is covered?
The discovery clause in the loss sustained form states that losses that occur during the policy period, but are not discovered for up to one year after the policy has expired, can be covered under the expired policy. The discovery clause in the discovery form provides coverage during the policy period or within 60 days after the policy expires for coverage to apply.
An insured has her property covered under an "open peril" cause of loss form. She experiences a loss. The burden of proof that the peril that was the actual cause of loss in the claim, lies with:
The insurance company :: When coverage is provided under an open peril (all-risk) form, the burden of proof lies with the insurance company to prove that the cause of loss is excluded. Topic found in the Property Insurance Concepts chapter; Module A of the Virtual Classroom.
A New Hampshire insured has wrecked his vehicle. The insurer has asked for an estimate of damage. Who is responsible for the fee for this first estimate?
The insured.. :: The insured or claimant will only be responsible for the cost of one damage estimate for motor vehicle property damage liability and collision and comprehensive claims. The insurer will be responsible for any charge incurred by the insured or claimant for a second or any subsequent damage estimates required by the insurer.
A temporary adjuster's license may be issued by the Commissioner in the event of an emergency or disaster for what period of time?
The license cannot be issued for a longer period than one year.
What is the limit that is paid for water damage under an Equipment Breakdown policy?
The limit is 25K
In the case of a covered loss under a fire policy the company must begin the adjustment of the loss within _____days after receipt of notice of loss.
The loss adjustment procedure must commence within 15 days upon receipt of notice of claim
Jim drives Linda's car. Both Jim and Linda have a personal auto policy. Which of the following statements is CORRECT concerning coverage if Jim causes an accident?
The policy Linda owns is primary and the policy Jim owns is excess. :: Insurance follows the car. Therefore, Linda's policy would pay first and Jim's policy would be excess.
You have a 15 x 28 room with a 10 ft. ceiling. It costs $.50 per square foot to clean and prep the room and another $.50 per square foot for painting the room. How much will it cost to prep and paint the room and ceiling?
The room is 15 X 28 with a ceiling height of 10 feet. The ceiling area is 420 sq. feet The wall area is (2 walls @ 30 feet) and (two walls @ 56 feet). This is a total of 86 feet times the height of the ceiling which is 10 feet = 860 square feet plus the ceiling of 420 equals a total of 1280 square feet. $1.00 times 1280 square feet equals $1,280.
The term "time element coverage" is used when the amount of loss depends on:
The time it takes to repair, rebuild or restore damaged property. :: Aka the Restoration Period
If the company decides to rebuild or repair the property destroyed or injured, it must begin to do so within _____ days after adjusting the loss, and must prosecute the work with reasonable diligence until it is completed.
The work must commence within 20 days after adjusting the loss.
Which of the following terms would describe a situation where a building is not a total loss, but the cost to repair the building is greater than the value of the building?
This is an example of a constructive total loss. The loss is too great to rebuild the structure.
Which of the following best describes the purpose of the "insuring agreement" contained in an insurance policy?
To the insurer's promise to pay in case of a loss. :: The insuring agreement section of the policy contains the insurer's promise to pay. This is the section where the "contractual agreement" is located.
The insured has a communication failure at his premises due to a lightning strike at the phone company. The insured's phone system is damaged and he is out of business for four days. Which endorsement is necessary to provide coverage for the loss of business income
Utility Services - Time Element :: Utility Services - Time Element endorsement would cover the loss of business income in this example if the phone system was listed on the endorsement and the cause of the loss was covered by the policy.
Under the definitions section of the CGL policy, the term "your product" does not include:
Vending machines rented to or located for use by others.. :: A vending machine rented for use by others is not considered to be "your product."
On the HO-2 policy, damage caused by wind to personal property would be covered if:
Wind blew a hole in the structure allowing the wind to damage the contents. :: The HO-2 provides broad form perils coverage on contents. The wind would first have to damage the structure and then the contents. If Mother Nature lets herself in, the loss is covered. If you let Mother Nature in, the damage will be excluded.
The Common Policy Conditions apply to which coverage parts of a Commercial Package Policy?
With a Commercial Package Policy, the Common Policy Conditions apply to all of the coverage parts.
Unless otherwise provided by law, within ____ days from the receipt of the notice of claim, the insurer must make a complete decision regarding coverage, acceptance, denial or payment of a claim and communicate this to the insured or claimant.
With few exceptions to the time limit of 30 days, the insurer must advise the claimant of its intentions regarding the claim.
The Classic Drug Company's claims-made CGL basic extended reporting period provides coverage for occurrences reported to the insurer within 60 days of the policy expiration date and claimed against the insured:
Within five years of the policy expiration date. :: The standard claims-made form includes a "basic extended reporting period" which allows an insured to report to its insurer any incident or matter which the insured feels MAY result in a liability claim being made against them. If a third party brings a liability claim against the insured for one of those reported incidents within five years of the policy expiration date, the insurer will cover the claim.
"Hired car" liability coverage under the Business Auto policy will cover all of the following for liability, EXCEPT:
Your answer: A new SUV owned by an employee, that he is using until the insured company can make a purchase of an SUV to be used in the business. is correct. :: Hired car coverage does not apply to employees using their own vehicles on company business. This would be an employers non-owned auto coverage and would only protect the employer in case the employee had an at-fault accident while using the vehicle for company business.
Dan has coverage under an HO-3. He borrows Mike's scuba diving equipment for a trip to Puerto Rico. While in Puerto Rico, Mike's scuba diving equipment is stolen. Mike's property is:
Your answer: Covered anywhere in the world at the insured's request. is correct. :: Coverage C -- Personal Property includes property owned or used by the insured anywhere in the world. The scuba diving equipment was being used by the insured and it would be covered under Dan's HO-3 policy.
The $1,000 coverage for reasonable expenses incurred to remove property to another location to protect it from flood damage is available on flood insurance:
Your answer: For 45 days from the time it was removed. is correct. :: The policy will provide up to $1,000 of expenses incurred to remove property from the premises to protect it from damage for each flood loss occurrence. Use of this coverage will reduce the limit available for other damaged property in the loss.
Which of the following statements is true regarding the business auto policy?
Your answer: One or more of ten symbols triggers coverage. is correct. ::: There are 10 symbols used to set up the coverage for the business auto policy risk. Coverage is tailored to the needs of the insured. The trucker risks are insured under the motor carrier coverage form. The selling and/or servicing of vehicles are best covered under a garage liability policy. Equipment dealers need CGL and a form of inland marine coverage.
Which of the following is not an "additional coverage" under Homeowners Liability -- Section II coverage?
Your answer: Payments made by the insurer to settle a claim. is correct.:::: Settlements paid by the insurer come from the limits of liability shown on the Declarations page and are not an "additional coverage.
Which of the following statements is true regarding controlled forms?
Your answer: These forms are usually issued according to published rules and rates. is correct.:: Controlled forms and their rates are filed for approval with the state insurance departments. They are usually issued according to published rules and rates. A jewelers block policy is an example.
