Practice Test 5
James has purchased a 20 year old home for $120,000. He covers it with an HO-5 form for $100,000 with deductible of $500. The roof of the home needs to be replaced and James has this work performed and purchases a service agreement on the roof before moving into the home. The service agreement covers $1000 for the roof damage from any cause that occurs within 5 years of the installation of the new roof. Two years after moving into the home, a heavy thunderstorm hits James' neighborhood and large sections of his roof are damaged, totaling $3,000 in damage. How much will this claim be paid? a. the insurance company pays $3,000 minus the $500 deductible. The service agreement does not pay anything because it is considered excess and only pays when the policy limits are exhausted b. The service agreement pays $1,000 first, leaving the $2,000 minus the deductible for the insurance company to pay c. the insurance company pays the entire $3,000 and adds the deductible amount to the insureds premium bill. The service agreement will then pay the insured $1,000 to cover the additional living expenses incurred while the roof was being repaired d. the service agreement will pay $500 for the damage and $500 to meet the insureds deductible. Then the insurance company will pay $2,000 minus the deductible on the damage.
The service agreement pays $1,000 first, leaving the $2,000 minus the deductible for the insurance company to pay
The auto liability limits $100/300/50 are an example of: a. split limits b. combined single limits c. aggregate limits d. occurrence limits
a. split limits
Coverage E under the farm forms covers which of the following? a. unscheduled personal property b. scheduled personal property c. scheduled real property coverage d. blanket real property coverage
b. scheduled personal property
Which of the following best describes when an aircraft is "in motion"? a. when the plane is being pushed from the gate by another vehicle b. when the plane is moving under its own power or from momentum generated from its own power c. when the planes engines are creating movement d. when the planes landing gear has been deployed and is in contact with the ground
b. when the plane is moving under its own power or from momentum generated from its own power
A formal request to an insurance company requesting a payment according to the terms of an insurance contract is known as: a. a notice of lawsuit b. a declaratory judgment request c. an insurance claim d. a service of process
c. an insurance claim
Section I of the Homeowners forms provides up to __________ when the insured is assessed by a corporation or property owners association for damage to property owned collectively, but only if it was damaged by a peril insured against under Coverage A of the policy. a. $250 b. $1500 c. $500 d. $1000
d. $1000
When someone dies without a will they are said to have died: a. in replevin b. testate c. without a principal d. intestate
d. intestate
A Personal Automobile policy provides liability coverage on a single limit basis for $100,000. A covered accident caused by Mr.Jones involves a $75,000 liability judgement to Mr.Allen for his injuries and $25,000 liability judgement for the damage to his car. In addition $20,000 in legal bills are incurred defending the insured. The company will pay: a. $120,000 b. $25,000 c. $75,000 d. $100,000
a. $120,000
What is the Part D limit of liability for damage to a non-owned trailer under the Personal Auto policy? a. $1500 b. $500 c. $1000 d. $2000
a. $1500
A standard Homeowners policy has been issued to cover a one-family structure with a coverage limit of $75,000 no the dwelling. What is the automatic amount of insurance coverage on personal property? a. $37,500 b. $7,500 c. $15,000 d. $45,000
a. $37,500
If an insured carries Coverage C under a Dwelling policy, how much coverage applies off the insured premises (world-wide policy) a. 10% of the Coverage C b. 25% of the Coverage C c. 40% of the Coverage C c. 50% of the Coverage C
a. 10% of the Coverage C
Under the additional coverages contained in Section II of the Homeowners forms, damage to property of others will not be covered if that damage was caused intentionally by an insured who is at least: a. 13 yrs old b. 15 yrs old c. 16 yrs old d. 18 yrs old
a. 13 yrs old
Homeowners policies provide personal liability coverage that follows an insured anywhere in the world under: a. Coverage E b. Coverage A c. Coverage F d. Coverage D
a. Coverage E
Which of the following coverage symbols would be designated on the Declarations of a Commercial Auto policy to cover a customers auto left with the insured to be serviced? a. Symbol 30 b. Symbol 31 c. Symbol 32 d. Symbol 33
a. Symbol 30
What symbol is used for a hired auto in a commercial automobile policy? a. Symbol 8 b. Symbol 2 c. Symbol 5 d. Symbol 4
a. Symbol 8
When a policy is issued by a surplus lines company who later becomes insolvent, who pays the claims? a. The insured must assume the loss b. The guaranty fund of the state where the insurance was placed c. The operating fund of the state Insurance Department where the insurance was placed d. The NAIC guaranty fund for surplus/excess lines insurers
a. The insured must assume the loss
The purpose of licensing surplus lines brokers in a given state is: a. To allow them to place business with nonadmitted insurers b. To allow them to place business with admitted insurers c. To allow them to place business with domestic insurers d. To allow them to place business with foreign insurers
a. To allow them to place business with nonadmitted insurers
The insured has sustained a loss of income loss from a covered peril under his Businessowners Policy. What deductible applies to loss of income coverage? a. a time deductible of 72 hours b. the same deductible that applies to the building or contents coverage c. a $500 deductible d. no deductible
a. a time deductible of 72 hours
Public adjusters: a. adjust first party property loss claims b. adjust third party property loss claims c. adjust third party bodily injury claims d. adjust liability claims
a. adjust first party property loss claims
Of the following businesses, which one is NOT eligible for coverage under a Businessowners policy? a. an auto dealership with $1 million dollars in gross annual sales b. a barbershop with two chairs c. a hair salon with 7,000 square feet of floor space d. a pizza joint with a seating capacity of 30
a. an auto dealership with $1 million dollars in gross annual sales
Which of the following statements BEST describes the reason it was necessary to create a federal flood insurance program in 1968? a. because the other property policies routinely excludes flood from coverage b. because people were building their homes closer and closest to large bodies of water than ever before c. because the US was experiencing more flooding that ever before d. because the flood insurance policies that were being issued at the time, did not provide adequate coverage for contents
a. because the other property policies routinely excludes flood from coverage
Under the "Inside the Premises- Theft of Money and Securities" insuring agreement of a crime policy, which of the following situations would NOT be covered: a. cash that is stolen by employees b. cash in the register is destroyed by a fire c. travelers checks that have turned up missing d. a casino suffers a theft of slot machine tokens
a. cash that is stolen by employees
Ocean marine protection and indemnity (P&I) coverage usually insures the ship owner against liability for all of the following EXCEPT: a. damage to or loss of another ship caused by a negligent collision b. injuries to seamen c. cargo lost or damage through negligence d. damage to pier
a. damage to or loss of another ship caused by a negligent collision
Barrys Vending Inc. covers its automobiles under a BAP. The owner, Barry does not own a car since he always drives a company car. If Barry would like to drive his friends car occasionally, when one of his employees is using his company car, what coverage should be added to the BAP to provide Barry with liability coverage while driving a vehicle not owned by the corporation? a. drive other car endorsement b. extended nonowned liability endorsement c. nonowned liability endorsement d. drive away liability endorsement
a. drive other car endorsement
In the event of a catastrophe, the Director may permit non resident adjusters to handle claims in South Carolina if the nonresident adjuster exhibits: a. evidence of an adjusters license in his/her home state b. a surety bond in the amount of $25,000 c. an ability to handle catastrophic losses d. all of the above are correct
a. evidence of an adjusters license in his/her home state
Which of the following is not a claim settlement option for liability claims? a. excessive amounts claimed b. lost wages claimed c. loss of use d. disfigurement
a. excessive amounts claimed
A customer in a restaurant becomes ill after they return home after eating. Which policy would respond to handle the claim? a. general liability policy that is unendorsed b. professional liability policy c. general liability policy with products coverage specifically added by endorsement d. errors and omissions
a. general liability policy that is unendorsed
Many stationary objects, such as bridges, tunnels and power lines fall within the nationwide marine definition because they are considered to be: a. instrumentalities of transportation and communication b. of substantially high values c. capable of being transported d. exposed to the same perils as vessels at sea
a. instrumentalities of transportation and communication
Compensation payable for the delaying a vessel carrying freight: a. is called demurrage b. not payable under an ocean marine contract c. no subject to any deductible to negotiation d. limit is predetermined prior to the voyage
a. is called demurrage
The Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA) covers all of the following, EXCEPT: a. malpractice insurance b. property insurance c. workers compensation d. directors and officers liability insurance
a. malpractice insurance
Robert is retired and lives in an older home in Maine. He has an old flood furnace to heat his home that is in need of repair and he forgets to have it checked. In the winter he stays in Florida for a month with his daughter. While Robert is away, the furnace malfunctions, allowing the temperature in the house to drop so low that all his water pipes freeze and burst, causing massive water damage. His house is covered under a Homeowners broad cause of loss form, that includes water damage from a heating or plumbing system. How will the adjuster handle this claim? a. pay for all damages except the furnace b. deny the entire claim because of neglect of the insured c. pay for the furnace and the resulting water damage only d. pay for the water damage and depreciate the payment for the replacement of the furnace
a. pay for all damages except the furnace
What does an insurer do when the insured has possibly waived his or her rights in a liability claim? a. send a reservation of rights letter b. deny the claim c. pay only a portion of the proven liability claim d. insist the insured obtain his or her own legal counsel
a. send a reservation of rights letter
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? a. send a reservation of rights letter to the insureds last known address b. deny the claim c. do nothing until the insured can be contacted d. pay the claim and give the insured the benefit of the doubt
a. send a reservation of rights letter to the insureds last known address
In which part of an insurance contract would you expect to find a description of the duties and obligations of the insured? a. the conditions b. the insuring agreement c. the exclusions d. the declarations
a. the conditions
A typical directors and officers liability policy covers each of the following EXCEPT: a. the corporation for suits being brought against it because of the actions of the officers and directors b. the directors and officers for their personal liability when not reimbursed by the corporation c. the corporation for amounts it reimburses officers and directors in the event of a claim d. the directors and officers for wrongful acts they may commit in the scope of their duties
a. the corporation for suits being brought against it because of the actions of the officers and directors
All of the following statements are TRUE of the coverage extensions on a Building & Personal Property coverage form, EXCEPT: a. the coverage extensions apply to any policy that provides 75% or more of the total value of the property in insurance coverage b. the coverage extensions apply if the policy declarations page has a value reporting form symbol shown c. the coverage extensions apply if the policy has a value reporting form attached d. the coverage extensions apply if the policy provides 80% or more of the total value of the property in insurance coverage
a. the coverage extensions apply to any policy that provides 75% or more of the total value of the property in insurance coverage
Which of the following policy provisions or clauses is designed to prevent the violation of the principle of indemnity ? a. the other insurance provision b. the liberalization clause c. the coinsurance clause d. the subrogation clause
a. the other insurance provision
Errors and omissions claims may be brought against insurance agents/producers by: a. their clients/insureds and the insurance companies with whom the agent/producer contracts b. third parties injured by their clients c. other agent/producers d. professional associations
a. their clients/insureds and the insurance companies with whom the agent/producer contracts
Which of the following statements is CORRECT regarding fidelity bonds? a. they are two party contracts between the employer and an insurance company b. they are three party contracts between the principal, obligee and surety c. they are two party contracts between the employer and the employee d. they are three party contracts between the employer, the employee, and the customer
a. they are two party contracts between the employer and an insurance company
What is the main purpose of an adjusters interim or status report? a. to report on the ongoing status of the claim b. to render a final opinion on the claim c. to provide the final amount for which the claim will settle d. to provide final estimates of the damages claimed
a. to report on the ongoing status of the claim
The giving up of a known right is called: a. waiver b. estoppel c. violation of policy conditions d. rebating
a. waiver
Under a Crime Insurance discovery form, a loss "discovered: a. when the insured first becomes aware that a loss has occurred or gives notice of an actual claim of a covered loss b. when the person who committed the crime is discovered and arrested c. when the insured becomes aware of the exact details of the occurrence d. when the stolen property is discovered and returned to the insured by the authorities
a. when the insured first becomes aware that a loss has occurred or gives notice of an actual claim of a covered loss
The basic limit of Coverage F- Medical Payments of the standard Homeowners forms is: a. $500 per person b. $1,000 per person c. $2,500 per person d. $5,000 per person
b. $1,000 per person
Parmelia is covered under two separate standardized Personal Auto policies, with Part C limits under both policies set at $200,000. Parmelia is involved in an accident with an uninsured motorist and she sustains bodily injury damages for $262,320. How much will Parmelia receive when she submits a claim for these damages? a. $262,320 b. $200,000 c. $400,000 d. It depends Parmelia's percentage of fault in the accident
b. $200,000
Which of the following flood zones show a flood depth instead of a flood base elevation on a FIRM? a. V b. AO c. AE d. VE
b. AO
Which of the following serves as a deterrent for an insured to cancel an insurance policy before its expiration date? a. state laws that report mid term cancellations to a database, making it more difficult for the insured to find new coverage b. a short rate penalty deducted from the unearned premium c. a pro-rata penalty deducted from the unearned premium d. a regulation that requires the insured to return a percentage of any claims submitted during the policy period as a penalty for a mid-term cancellation
b. a short rate penalty deducted from the unearned premium
Which of the following shoes a correct sequence of activities for an adjuster when negotiating a claim? a. determining the amount of the damage, then check the policy coverage b. acknowledging the claim, then opening a line of communication with the insured or claimant c. negotiating the settlement, then completing the investigation d. determine the cost to repair or replace, then check for coverage under the policy
b. acknowledging the claim, then opening a line of communication with the insured or claimant
Which of the following methods is specified by the standard NCCI workers compensation policy to handle claims payments when other insurance, including self-insurance, covers the workers compensation risk? a. pro-rata share b. contribution by equal shares c. apportionment d. primary policy pays until the limit of liability is exhausted
b. contribution by equal shares
Mike Moonshine Inc. is located in a state that permits Mike to decide whether he would like to provide workers compensation coverage to his employees or not. Mike lives in a(n): a. pro choice state b. elective state c. obligatory state d. compulsory state
b. elective state
Fancy has purchased a new home and is required to purchase Flood insurance as a condition of closing the loan. Fancy has submitted a Flood Insurance application along with his premium, when does the coverage become effective? a. 30 day waiting period b. immediately c. 1 day waiting period d. On the date the Flood Insurance binder indicates
b. immediately
Any person who is a party to a dispute auto property damage claim may: a. request the court to appraise them b. request the court to arbitrate them c. demand the court to issue a declaratory judgement d. their only recourse is to sue the other party
b. request the court to arbitrate them
Which of the following statements is TRUE regarding the National Flood Insurance Programs Preferred Risk Policy? a. the NFIP Preferred Risk policy is offered to home and apartment dwellers who have not submitted a flood insurance claim in more than 5 years b. the NFIP Preferred Risk policy is offered to home and apartment dwellers who reside in areas of low to moderate flood risk c. the NFIP Preferred Risk policy provides fixed combinations of building and contents coverage limits, or contents-only coverage to emergency program communities d. the NFIP Preferred Risk policy is offered to homeowners who reside in areas of low flood risk
b. the NFIP Preferred Risk policy is offered to home and apartment dwellers who reside in areas of low to moderate flood risk
A public adjusters fiduciary responsibility is to: a. the attorney handling the claim on behalf of the principal b. the insured c. the state department of insurance d. the insurer
b. the insured
The insured owns a one-family dwelling with a detached garage. The dwelling is insured for $200,000. How much coverage applies to the detached garage? a. $10,000 b. $15,000 c. $20,000 d. $0
c. $20,000
The minimum financial responsibility limits required for auto insurance in South Carolina is: a. $15/30/10 b. $20/40/10 c. $25/50/25 d. $50/100/25
c. $25/50/25
An employee who has suffered an injury and is considered partially disabled is entitled to disability benefits for ______ weeks. a. 300 b. 250 c. 340 d. 400
c. 340
If an employee is injured in a work related accident, what percentage of their average weekly wage will be paid as a benefit? a. 70% b. 65% c. 66 2/3% d. 75%
c. 66 2/3%
An additional coverage provided by Part D of the Personal Watercraft policy include coverage for "salvage liability". This is best described as: a. a maritime law that states that any salvage from watercraft belongs to the state where the watercraft was being used at the time of the accident b. coverage for damage caused to another vessel by the salvage of the damage watercraft c. A maritime law requiring watercraft owners to recover items that have gone overboard d. coverage for bodily injury caused to others when the covered watercraft collides with another boat or a dock
c. A maritime law requiring watercraft owners to recover items that have gone overboard
An adjuster license is for a term of: a. 2 years b. 1 year c. An indefinite period of time d. 3 years
c. An indefinite period of time
The major difference in Section I of an HO-2 and an HO-4 form is: a. Coverage B b. Coverage D c. Coverage A d. Coverage C
c. Coverage A
The Part B- Medical Payments coverage of Dorinda's coverage of Dorinda's personal auto policy has a limit of $5,000. Three of Dorinda's friends were injured in an accident that occurred while they were riding in Dorinda's car. The amount of medical expenses per person were as follows: Harvey- $1500 Diane- $4575 Thomas-$6250 a. Each of the three people would receive $1667 to apply to their medical expenses b. Harvey would receive $1,500, Diane would receive $4575, and Thomas would receive $6250 c. Harvey would receive $1,500, Diane would receive $4575, and Thomas would receive $5000 d. the injured parties would each receive $5000
c. Harvey would receive $1,500, Diane would receive $4575, and Thomas would receive $5000
Which of the following are considered unfair claim settlement practices in South Carolina? I. Provisioning misleading information with respect to the coverages II. Failing to acknowledge with reasonable promptness pertinent communications with respect to a claim III. Attempting in good faith to make prompt, fair and equitable settlements of claims on which liability has become reasonably clear IV. Compelling policyholders or claimants to initiate suits to recover amounts due under a policy a. I, II and III b. II , III and IV c. I, II, and IV d. I and II only
c. I, II, and IV
Dave has suffered a property loss. He hires Katie, a public adjuster to assist him in presenting his claim to Indemnify Insurance Inc., the company that insures his damaged property. Indemnify assigns the claim to Mark, one of their staff adjusters. Which of the following statements best describes how Katie and Mark will proceed in processing Dave's claim? a. Katie will process the claim from Dave's perspective and submit it to Mark, who will use the Information to complete his claims report to indemnify b. Katie and mark will immediately begin the claims investigation as a team, creating their reports together, providing for a smooth settlement between the two parties c. Katie will proceed with her investigation and Mark will proceed with his investigation independently of each other. Each will create individual reports regarding the claim d. Any time a public adjuster is involved in a claim, a lawyer must also be hired. Katie and Mark will each submit their claim reports to Dave's Attorney who will make a decision as to whether or not a lawsuit will result
c. Katie will proceed with her investigation and Mark will proceed with his investigation independently of each other. Each will create individual reports regarding the claim
Which of the following statements correctly applies to a named perils policy? a. only the perils described in the Declarations are covered b. All direct damage to property is covered, unless the policy specifically excludes the peril c. Only the perils listed by name in the policy are covered d. All indirect damage to property Is covered
c. Only the perils listed by name in the policy are covered
When insuring agreement of the Personal Auto policy would provide coverage for damage caused to the other drivers car, when the insured was at fault in an accident? a. Part D- Physical damage b. Part B- Medical payments c. Part A- Liability d. Part C- Uninsured Motorists
c. Part A- Liability
Which of the following types of property would be covered by Coverage B of a standard, unendorsed Businessowners policy? a. an owned auto b. an unscheduled exterior business sign c. a copy machine that is leased by the covered business d. an outdoor fence
c. a copy machine that is leased by the covered business
The Medical Payments section of the standard Yacht policy will provide coverage for all of the following EXCEPT: a. an aquaplaning accident b. a water skiing accident c. a scuba diving accident d. a snorkeling accident
c. a scuba diving accident
Of the following physical damage losses, which would be covered by a BAP providing comprehensive and collision coverage? a. the engine is damaged when water in the cooling system freezes. The insured failed to add antifreeze b. a front wheel bearing burns out after 70,000 miles of use c. among other items of damage, the front tires are blow out in a high- speed head- on collision d. none of the losses would be covered
c. among other items of damage, the front tires are blow out in a high- speed head- on collision
Which of the following NFIP policies is required to include the Increased Cost of Compliance ICC coverage? a. an NFIP contents only policy b. an NFIP Dwelling policy under the Emergency Program c. an NFIP Dwelling policy under the Regular Program d. an NFIP General Property policy under the Regular Program
c. an NFIP Dwelling policy under the Regular Program
Which of the following statements BEST DESCRIBES the main difference between a Commercial Umbrella policy and an Excess Liability policy? a. there is no difference b. excess lines policies broaden coverage and commercial umbrella policies increase the limits of the underlying policy c. both excess and commercial policies increase the limits of the underlying policy but the commercial umbrella policy can also broaden and extend the coverages d. excess lines policies provide coverage for manufacturing businesses only, while the Commercial Umbrella policy provides coverage for individual professional risks only
c. both excess and commercial policies increase the limits of the underlying policy but the commercial umbrella policy can also broaden and extend the coverages
The Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA) excludes all of the following except: a. commercial auto coverage b. surety bonding c. commercial property coverage d. theft insurance
c. commercial property coverage
Personal Excess Liability policies provide coverage for all of the following EXCEPT: a. injuries sustained by a third party on the insureds property b. personal injury or property damage sustained by a third party due to an at fault accident by the insured c. damage to an insureds property due to fire d. injuries to a neighbor while riding in the insureds covered boat
c. damage to an insureds property due to fire
Uninsured Motorist (UM) coverage claims are: a. third party claims b. processed by the state government c. first party claims d. must be litigated in a court of law to determine coverage
c. first party claims
Most aircraft physical damage hull policies are settled on a : a. replacement cost basis b. market value basis c. insured value basis d. actual cash value basis
c. insured value basis
What is the purpose of tort law? a. to apply criminal penalties to those who commit a tort that causes bodily injury b. to require the tortfeasor to carry insurance that will cover any injuries they may inadvertently cause that may result in a lawsuit c. it provides a tort victim with a civil remedy to pursue a claim for compensation in the courts d. to provide a victim with a way to pursue a claim for damages in a court of law when a contract is breached
c. it provides a tort victim with a civil remedy to pursue a claim for compensation in the courts
Under the farm policy, which of the following is not considered livestock? a. pack mule b. sheep c. poultry d. cattle
c. poultry
Section II of the Business Auto policy provides the details of the insurers duty to defend the insured in a lawsuit. This duty is more broad than the insurers responsibility to pay any damages for which the insured is liable. Which of the following describes this broadened duty on the BAP? a. the BAP duty to defend extends to providing a defense for the insured against punitive damages imposed by a court b. the duty to defend section of the BAP extends to providing a defense for a negligent driver who did not have permission to use the covered auto c. the BAP duty to defend extends to providing a defense against fraudulent claims d. the duty to defend section of the BAP extends to providing a defense to a negligent driver who is a family member of an employee did not have permission to use the covered auto
c. the BAP duty to defend extends to providing a defense against fraudulent claims
Which of the following Commercial Property cause of loss forms include the additional coverage for "Fungus, Wet Rot, Dry Rot, and Bacterial"? A. the special cause of loss form only b. the broad and special cause of loss forms only c. the basic, broad and special cause of loss d. the basic and broad cause of loss forms only
c. the basic, broad and special cause of loss
Axel Jamison contacts an insurance agent to purchase a Homeowners policy. The agent advises Axel that he will stop by later that day to inspect the home and take the policy application. Before the agent arrives, Axel hides his collection of venomous snakes and does not disclose them on his policy application. The Homeowners policy, with personal liability coverage is issued later that week, and the next day a snake escapes and bites a neighbor. How will the adjuster handle this claim? a. the claim will be paid because the policy provides personal liability coverage b. the claim will be denied based upon soft fraud c. the claim will be denied because Axel is guilty of concealment d. A reservation of rights letter will be issued to the insured while the adjuster continues the claims investigation
c. the claim will be denied because Axel is guilty of concealment
All of the following statements are TRUE regarding the "Equipment Breakdown" coverage extension of the standard Businessowners policy, EXCEPT: a. provides coverage for direct damage to covered equipment b. the damage must be caused by a sudden and accidental breakdown c. the damage can be caused by a gradual wear and tear of parts within the equipment d. the equipment must be located at the premises described in the Declarations
c. the damage can be caused by a gradual wear and tear of parts within the equipment
Mr. York had his pickup truck stolen while it was parked in a "no parking" zone outside his office. The value of the truck was $18,500. In addition, tools valued at $200, extra tires and hubcaps for the truck valued at $550 and a tarp worth $50 were in the truck. Mr. York has a collision deductible of $500 and a comprehensive deductible of $250. The insurance company will pay what amount? a. $18,000 b. $18,250 c. $19,050 d. $18,800
d. $18,800
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? a. $500,000 b. $750,000 c. $1,000,000 d. $5,000,000
d. $5,000,000
An insured had his home covered under Dwelling policies with three different insurance companies. Company A provides 50% of the coverage, Company B provides 45% of the coverage, and Company C provides 5% of the coverage. When Settling a claim for $10,000 worth of damage to the dwelling, what will company C pay? a. $10,000 b. $1,000 c. $4500 d. $500
d. $500
The penalty for acting as an adjuster without a license is: a. A fine of not more than $5,000 and six months in jail b. A fine of not more than $10,000 and six months in jail c. A fine of not more than $10,000 and one year in jail d. A fine of not more than $10,000 and/or two years in jail
d. A fine of not more than $10,000 and/or two years in jail
When is a nonresident of South Carolina permitted to hold an adjuster license in the state? a. At the discretion of the Director of Insurance b. If south Carolina has a reciprocal agreement with the adjusters home state c. If the adjusters home state will allow licensees of South Carolina to hold a nonresident license in that state d. All of the choices are correct
d. All of the choices are correct
To qualify as an adjuster, the applicant must comply with all of the following, EXCEPT: a. Have sufficient knowledge of the business of insurance b. Be of good moral character c. Has not been violated any insurance laws of South Carolina d. Be a resident of South Carolina
d. Be a resident of South Carolina
Which of the following statements is TRUE regarding controlled commercial inland marine forms? a. these forms are very flexible and can be manuscripted to meet the needs of individual insureds b. these forms are always issued by state insurance departments c. conditions and rates for these forms are determined solely on the basis of underwriting judgement d. These forms are usually issued according to published rules and rates
d. These forms are usually issued according to published rules and rates
In order to lawfully write insurance business in a state, an insurance company must hold: a. a certificate of agency b. a certificate of authorization c. a certificate of admission d. a certificate of authority
d. a certificate of authority
Which of the following is NOT a hazard? a. oily rags left by the hot water heater b. matches within reach of a small child c. wet leaves on the sidewalk d. a fire started in a waste basket
d. a fire started in a waste basket
All of the following statements are TRUE if Builders Risk coverage is written on a completed value basis, EXCEPT: a. the insured is required to cover the risk for the full completed value of the building being constructed b. the insured is required to meet a 100% coinsurance requirement c. if the insured does not have the required amount of insurance at the time of a loss, they will be penalized d. all premiums must be paid up front before construction can begin
d. all premiums must be paid up front before construction can begin
Watercraft owned by the insured are excluded from coverage under a CGL policy except when the watercraft is: a. in the water b. on a public roadway on a trailer c. being raced in an organized sporting event d. ashore on the insureds premises
d. ashore on the insureds premises
Angie has suffered an automobile physical damage loss. All of the following are insureds duties after a loss under Angie's Personal Auto policy, EXCEPT: a. take reasonable steps after the loss to protect the property from further damage b. promptly notify the police if the vehicle is stolen c. allow the insurer to inspect and appraise the damaged property d. facilitate the repairs to the vehicle and submit the invoice to the insurer
d. facilitate the repairs to the vehicle and submit the invoice to the insurer
A customer is injured on the insureds premises and the insured is not found legally liable. The insured carries a Commercial General Liability policy. Which of the following CGL coverages would apply to cover the customers injuries? a. bodily injury liability b. property damage liability c. personal injury liability d. medical payments
d. medical payments
Which of the following is NOT a claim settlement option in a property loss? a. replacement the property with like kinda and quality b. replace the property with new c. repair the property d. pay market value only
d. pay market value only
A business owner would be covered for wrongful eviction, defamation of character, false arrest, and malicious prosecution under which of the following Commercial General Liability coverage part? a. completed operations b. contractual liability c. strict liability d. personal and advertising injury
d. personal and advertising injury
All of the following would NOT be covered under any section of the Business and Personal Property coverage form, EXCEPT: a. automobile held for sale b. an automobile that is licensed for use on public roads c. retaining walls that are not part of the building described in the declarations but are destroyed by a covered cause of loss d. the cost to restore electronic data that was corrupted by a covered cause of loss
d. the cost to restore electronic data that was corrupted by a covered cause of loss
Which of the following losses would be covered under the standard Dwelling policy optional coverage V & MM? a. the missing jewelry and money taken while the insured was having a party b. the smashed windows caused by a gang in the neighborhood while the insured was out for the evening c. the light and bathroom fixtures removed from the covered dwelling after the insured left it vacant for 75 days d. the grafitti painted on the siding caused by a gang in the neighborhood while the insured was out for the evening
d. the grafitti painted on the siding caused by a gang in the neighborhood while the insured was out for the evening
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: a. the mediator b. the contractor that will repair the damage c. the insured d. the insurance company
d. the insurance company
All of the following would be covered under Coverage B of a Homeowners policy EXCEPT: a. a 4 car garage located on the insured location away from the covered building b. a gazebo located several yards away from the insured dwelling, beside a pond on the insured location c. a shed containing the insureds work tools, located near an unattached garage and not attached to the insured dwelling d. the roof of the covered dwelling
d. the roof of the covered dwelling
On the renewal date of her existing NFIP policy, the insured selects 2 additional coverages. Which of the following statements is TRUE about the insureds waiting period before the new additional coverages will take effect? a. 1 day waiting period applies b. 60 day waiting period applies c. 30 day waiting period applies d. there is no waiting period
d. there is no waiting period
