P&C Practice EXAM
Coverage for medical payments under a personal auto policy applies to expenses following a covered accident that are incurred and services rendered within what maximum time period?
3 years
When other insurance is written on the same basis as a commercial property policy, the obligation of the insurer is to cover
A share of the loss
What type of liability would a person who owns wild animals have?
Absolute
Which of the following types of valuation works best for property whose value does not fluctuate much?
Agreed value
A policy condition that stipulates how the amount of damaged or lost property will be determined if the insured and the principal do not agree on the value of a property loss is known as
Appraisal
Following a PROPERTY loss that is covered under a businessowners policy, if the insurer and insured cannot agree on the amount of the loss, what method is used to resolve the issue?
Appraisal
Who will transport the property of anyone who hires them?
Common carriers
An insured's business is damaged because of a fire, and he is forced to close the business temporarily for repairs. As a result, the insured lost income. What type of loss is this?
Consequential
The designation symbols used in commercial auto policies can be found in which policy section?
Covered auto
In businessowners policies, which coverage will require a deductible?
Debris removal
The part of a property policy that shows the amount of insurance, premium, and policy term is the
Declarations
Who would be named on the declarations page of a property or liability policy
First named insured
Events or conditions that increase the chances of an insured loss occurring are referred to as
Hazards
An additional loss that results from a direct loss of property is called a/an
Indirect loss
Which personal auto coverage would pay for the insured's travel expenses and loss of earnings while involved in the settlement process of a covered loss?
Liability coverage
A policy condition that states if a policy is broadened with no additional premium, then the expanded coverage will be automatically applied to all policies of the same type is known as
Liberalization clause
What is NOT part of the policy structure?
Provisions
Which method of loss valuation is contrary to the basic concept of indemnity?
Replacement cost
What symbol is available to an insured with vehicles subject to no-fault coverage
Symbol 5
What is the purpose of a stated value contract?
To pre-establish the amount of coverage available for property items that are difficult to value
What is the business auto coverage territory for?
United States & its territories, Canada, or worldwide for private passenger hired autos
In insurance, an OFFER is usually made when
an applicant submits an application to the insurer
A hazard is
any condition or exposure that increases the possibility of loss
How is the commissioner selected for the office
appointed by the governor
Expenses that an organization would not have incurred if business interruption had not existed are known as
extra expenses
Losses caused by continuous or repeated exposure to conditions resulting in injury to persons or damage to property that is neither intended nor expected is the definition of
occurrence
A certificate of insurance is a written document that
shows the types and amount of insurance issued to the insured
Property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called
specific coverage
The policy provision found in property insurance policies that prevents the insured from collecting twice for the same loss is
subrogation
for what reason can a temporary license be issued
to service existing business