Practice Exam Questions

An insured suffers a windstorm loss in which the insured's driveway is blocked by two of the insured's trees and two of the neighbor's trees. The total amount of the removal adds up to the following: three trees at $300 per tree, and one tree at $600. How much will the insurer pay for the loss?

$1,000

The minimum fine for violating the Insurance Code is

$1,000

A premium discount is the term that describes when an insured owes a total standard premium greater than

$5,000

What is the correct formula for computing a loss ratio?

(Incurred losses+loss adjusting expense)/earned premium

Damage to insured property caused by earth movement or earthquake is covered under which of the following homeowner's forms? 1)None 2)HO-2 3)HO-3 4)HO-5

1)None

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 days

Which of the following could be covered by an HO policy? 1)A sports car kept in an attached garage 2)Property of a tenant not related to the insured 3)An oriental rug in an on-premises apartment 4)Birds,fish, and animals

3) An oriental rug in an on-premises apartment

An insurer has just cancelled an insured's policy. How long does the insurer have to explain this cancellation?

6 months

A commercial policy has been in effect for less than 60 days and is not a renewal policy. If the insurer decides to cancel the policy for any reason other than nonpayment of premium, how much notice must it give the first named insured?

60 days

If an insurer decides to nonrenew a commercial policy, how much prior notice must be given to the first named insured?

60 days

The employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to

90 days

Following an injury, loss of wages benefits are paid after the injured worker has been unable to work for

A week

What documentation grants express authority to an agent?

Agent's contract with the principal

Who is required to become a member of the Louisiana Automobile Insurance Plan?

All insurers writing motor vehicle insurance in the state

Which of the following terms refers to other insurance that is written on the same risk, but not on the same coverage basis? a) Contribution by equal shares b)Non-concurrency c)Primary and excess d)Pro rata

B) Non-concurrency

Which of the following statements regarding coverage for the flood and earthquake perils is true?

Both flood and earthquake are excluded perils in all property policies

An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's liability policy has a limit of $500,000. This amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does the insured have?

Combined single

The extra expense coverage form provides

Coverage that will permit the insured to continue in business without interruption following a property damage loss

Residential structures, including individual condominium units, and their contents are insured by what part of the National Flood Insurance Program?

Dwelling Policy Form

The voluntary compensation endorsement provides statutory coverage for which types of employees?

Farmworkers

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?

Implied

Who is NOT considered an employee in a commercial general liability (CGL) policy?

Temporary worker

In the personal auto policy, owned trailers being towed by an insured auto are automatically covered for

Uninsured motorist coverage

The insured with a claims-made commercial general liability (CGL) policy may request in writing claim and occurrence information from the insurer at any time up to 60 days after the policy period ends. The insurer must provide the information

Within 45 days

Which of the following would NOT be covered by HO liability insurance? a) Intentional Tort b) Bodily Injury c) First aid expenses d) Property damage

a) Intentional Tort

Which of the following symbols is available to an insured with vehicles subject to no-fault coverage? a) Symbol 5 b) Symbol 6 c) Symbol 7 d) Symbol 9

a) Symbol 5

All of the following types of property are covered by a standard builder's risk form EXCEPT a) Tools 50 feet away from the building b)The building itself c)Temporary structures d)Machinery that will be permanently attached to the building

a) Tools 50 feet away from the building

All of the following are true regarding rebates EXCEPT a) Dividends are not considered to be rebates b) Rebates are allowed if it's in the best interest of the client c) Rebates are only allowed if specifically stated in the policy d) Rebating can be anything of economic value, given as an inducement to buy.

b) rebates are allowed if it's in the best interest of the client.

Which of the following homeowners endorsements covers liability exposures arising from an incidental business conducted within a building on the residence premises? a) Business income- report of values b)Permitted incidental occupancies c)Special limit of liability d) Professional liability

b)Permitted incidental occupancies

Which of the following would the livestock coverage form NOT insure against? a)Death of livestock caused by accidental drowning b)Death of livestock caused by a tornado c) The euthanasia of livestock after being hit by a vehicle d)The euthanasia of livestock suspected of carrying mad cow disease

c) The euthanasia of livestock after being hit by a vehicle

Which of the following would be considered an insured under a business auto coverage form? a)Anyone using a covered auto while working in a business of selling, servicing, repairing, or parking autos if it is not the named insured's business. b) A partner of the named insured for any covered auto owned by that person or a member of his or her household c) Anyone while using, with permission, a covered auto owned by the named insured d) The owner or anyone else from whom the named insured hires or borrows a covered auto

c)Anyone while using, with permission, a covered auto owned by the named insured.