P & C Test Review (2)

A producer is not considered to be holding a license for the purpose of controlled business as long as: A The commissions do not exceed 25% of the aggregate commissions earned during any 12-month period B The commissions do not exceed 50% of the aggregate commissions earned during any 12-month period C Not more than 25% of the total volume of premiums per year is derived from controlled business D The commissions do not exceed 15% of the aggregate commissions earned during any 12-month period

A

An insured who goes to client's offices and homes for appointments would need coverage for which liability exposure? A Premises and Operations B Contingent Liability C Completed Operations D Products

A

Choose the false statement regarding the Extra Expense Coverage Form. A It provides coverage for direct losses under the policy B It is considered to be a Time Element Coverage C It includes costs to equip a temporary location D It covers necessary additional expenses incurred during the period of restoration that would not have occurred if there had been no direct physical loss

A

A producer is not considered to be holding a license for the purpose of controlled business as long as: A The commissions do not exceed 15% of the aggregate commissions earned during any 12-month period B Not more than 25% of the total volume of premiums per year is derived from controlled business C The commissions do not exceed 50% of the aggregate commissions earned during any 12-month period D The commissions do not exceed 25% of the aggregate commissions earned during any 12-month period

D

Under Part One - Workers' Compensation Insurance of a Workers' Compensation and Employers Liability policy, the insured would be required to pay which of the following in the event of a Workers' Compensation claim? A Premiums for the appeal bonds when the insurer appeals to a higher court B Interest applied to the final judgment for the delay in payment C Expenses the insured spends to appear in court to assist the defense D Any excess amounts incorrectly paid by the insurer

D

Under flood insurance provided by the National Flood Insurance Program, which of the following statements regarding flood insurance is NOT correct? A Coverage is provided for direct losses to property caused by the inundation of normally dry land B In order to qualify for a federal loan, a property owner located in a special flood hazard area must purchase flood insurance C The federal government is the reinsurer for all flood losses D No deductible applies to loss of contents

D

Which of the following is not a standard exclusion under a Commercial Umbrella Liability policy? A Professional services B Contractual liability C Product recall D Personal injury

D

After an employee of a service station failed to tighten the oil filter, the leaking oil caused $700 in damage to the engine. Section II of a Garage Coverage Form would pay: A $700 less the $100 mandatory deductible B Nothing C $700 less the $250 mandatory deductible D $700 only if the employee is proven negligent

A

Under a Homeowners policy, an unrelated resident in the care of the named insured is also considered an insured up to what age? A 21 B 24 C 18 D 16

A

Which of the following about policy limits applicable to Commercial General Liability policies is not correct? A The limits of the policy stated in the Declarations are the maximum amounts payable for the life of the policy B Section III describes the limits of insurance C The each occurrence limit is the most the company will pay for damages under Coverage A and Coverage C, arising out of any one occurrence D The general aggregate limit is the most the company will pay for payments under Coverages A, B, and C, except for damages for products and completed operations claims

A

With regard to examinations, which of the following statements is NOT correct? A The expense of examination of an insurer or of any person is paid by the Department B The Commissioner may initiate actions or proceedings pursuant to an examination C The Commissioner may examine, as often as the Commissioner deems advisable, the records of any insurance agent, solicitor, broker, general agent, adjuster, or insurer representative D The Commissioner must report to the Governor annually regarding examinations of insurers

A

According to the Nationwide Marine Definition, all of the following risks may be insured by inland marine insurance, except: A Domestic shipments B Commercial autos C Transmission towers and their equipment D Cargo being transported for export

B

B is traveling to Europe for a month's vacation and wants to protect personal property taken on the vacation, like clothing. Which of the following coverage options might B's agent recommend to cover these items? A Personal Articles Floater B Personal Effects Floater C Scheduled Personal Property Endorsement D Camera Floater

B

L owns a home covered under an HO-3 for $200,000. Under Coverage D, how much coverage does L have for lost rental income if the basement apartment becomes uninhabitable due to a fire loss? A $200,000 B $60,000 C $100,000 D $30,000

B

Under Section II of the Homeowners policy, a two-family dwelling where the insured resides in one of the units, including other structures and grounds at that location, is defined as: A Nonbusiness premises B Residence premises C Other structures D Dwelling structures

B

Under a Commercial Crime policy written on the Loss Sustained Form, what is the latest date a covered loss can occur? A The retroactive date B The policy expiration date C 2 years following policy expiration D 1 year following policy expiration

B

Under a Commercial Package policy, which of the following is found in the Common Policy Declarations? A The insurer's cancellation right B The deductible C The provision granting the insurer the right to make inspections of insured property D The provision that the first named insured is responsible for all premiums

B

Under a Personal Auto policy, how long does an injured party have following an accident to report a medical payments claim? A 1 year B 3 years C 48 hours D 6 months

B

Under a Personal Auto policy, which of the following vehicle uses is not excluded by medical payments coverage? A Residence B Farm use C Organized racing D Livery conveyance

B

Which of the following statements regarding the Commercial Articles Coverage Form is correct? A Coverage is only provided for property while on the insured's premises B It covers property used for business purposes, such as cameras and films C Coverage is written on a named perils basis D Coverage is provided while the property is in transit on land and at sea

B

coverage for recreational vehicles and motor homes can be added to a Personal Auto policy by the: A Recreational Vehicles Endorsement B Miscellaneous Type Vehicle Endorsement C Extended Non-owned Coverage Endorsement D Joint Ownership Endorsement

B

Liability coverage is designed to: A Protect an insured from being sued by an injured party B Permit the insured to countersue the insurer for losses not covered C Protect the insured from the cost of damages for bodily injury and property damage that the insured is legally obligated to pay D Cover injuries and damages caused by the insured's intentional and unintentional actions

C

A loss caused by which of the following would be automatically covered under a Businessowners policy? A Earth movement B Off-premises power failure C Increased cost of construction D Mechanical breakdown

C

All of the following are true of Section II of the Businessowners Coverage Form, except: A Bodily injury coverage does not apply to rendering or failure to render professional services B A personal injury loss must be committed in the coverage territory during the policy period C Business liability coverage applies to damage to an insured's property or work D Includes the cost of defending the insured

C

If an insured has comprehensive physical damage coverage provided by their Personal Auto policy, the insurer would deny which of the following physical damage claims? A Loss to the covered auto's electronic ignition equipment B Earthquake damage to the covered auto C Loss to the covered auto's tires caused by road damage D Loss to sound reproduction equipment permanently installed in the covered auto

C

In property insurance, which condition prevents the insured from relinquishing ownership, leaving damaged property to the insurer, and claiming a total loss? A Assignment B Loss Payable Clause C Abandonment D Loss Settlement

C

The limit of insurance that the insurer will pay for a physical damage loss covered by a Business Auto policy is the: A Greater of the actual cash value or the cost to repair or replace with like kind and quality B Actual cash value of the damaged or stolen property C Lesser of the actual cash value or the cost to repair or replace with like kind and quality D Replacement cost of the damaged or stolen property

C

Under a Homeowners policy, which statement about personal property coverages is incorrect? A An endorsement may be added to cover the contents on a replacement cost basis B Theft of silverware is covered up to $2,500 on an unendorsed policy C Money is covered up to $500 per occurrence on an unendorsed policy D The Scheduled Personal Property Endorsement provides open perils coverage for listed items

C

Which injury would be covered by a CGL policy? A The spouse of a sole proprietor injured carrying boxes into the shop B A leased worker injured on the production line C A customer injured while standing in an area marked as being for employees only D An employee injured by the transportation of mobile equipment during the manufacturing process

C

Which of the following is true about binders? A A binder will not end when the policy is issued B A binder always expires 15 days after its inception date C The amount of insurance is stated in a binder D A binder does not name the company providing coverage

C

Which of the following statements is false with respect to the Property and Casualty Guaranty Association Act? A The Act provides a way to pay covered claims under certain insurance policies B The Act avoids excessive delay in payments C The Act provides an association to assess the cost of protection among the insured D The Act avoids financial loss to claimants due to the insolvency of an insurer

C

All of the following are eligible for coverage under the Dwelling Program, except: A A single-family home in the suburbs B A duplex occupied by tenants C A vacation home used as a secondary residence D A beauty shop with a small bedroom attached

D

All of the following are false concerning the National Flood Insurance Program, except: A Dwelling coverage includes trees, shrubs, and plants B Flood policies are available only from the National Flood Insurance Program C Agents may bind flood insurance for up to 15 days prior to submitting the final application D Payment for losses are made by the federal government

D

Policy A provides liability coverage to F's Grocery up to $500,000. Policy B provides coverage for the same risks up to $1.5 million. Both policies pay on a pro rata basis. If F's Grocery is determined to have a legal liability of $400,000 to a claimant who was injured on the property, how much will Policy A pay? A $50,000 B $500,000 C $400,000 D $100,000

D

The following qualifications are required for a producer license, except: A Reside in Oklahoma B Pass a licensing examination for each subdivision of insurance to be transacted C Pay the required fee D Be at least 21 years of age

D

Which of the following is NOT an unfair claims practice? A Failing to attempt, in good faith, to promptly, fairly, and equitably settle a claim in which the insurer's liability has become reasonably clear B Refusing to pay a claim without investigating it C Misrepresenting pertinent policy facts or provisions to claimants D Promptly acknowledging communications pertinent to a claim

D

Which of the following perils is always excluded under the Farm Property Coverage Form? A Volcanic action B Falling objects C Sinkhole collapse D Landslide

D