Practice Test (property and casualty)
15%
A building insured with commercial property insurance has been vacant for more than 60 days, what will the insurer now reduce the amount they would have otherwise paid by..?
A bill of lading
A contract for the transport of goods between the shipper and the carrier is called....?
$5,000
A covered watercraft was damaged in an accident. The actual cash value of the damaged property was assessed at $10,000. The cost of repairs for the watercraft was assessed at $5,000. The insureds watercraft policy is written with a $25,000 limit. How much will the insurer pay for coverage to damage to the watercraft?
Appraisal
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...?
Stated amount
A property insurance policy that is not subject to any coinsurance requirements but has a set amount of insurance scheduled for the property would use what loss valuation method?
Automatically transfer to a legal representative
According to the common policy conditions for a commercial package policy, if the insured dies, the policy rights and duties....?
Contractors equipment floater
An individual's construction company leaves mobile equipment and construction machinery on the job site until the project is completed. What could this individual use to insure it?
Contractors equipment floater
An individuals construction company leaves mobile equipment and construction machinery on the job site until the project is completed. What could this individual use to insure it?
Appliances intended to become a permanent part of the building
An installation floater is used to insure...?
HO-6
An insured condominium unit owner wants to purchase fire and extended coverage for personal property and liability coverage for himself and his family members. He should purchase....?
Transportation/permission to move endorsement
An insured covered under a mobile homeowners policy wants to move the location of the covered mobile home. What must the insured obtain from the insurer?
Combined single
An insured is driving her car through a residential area when she loses control and crashes into a neighbors front porch. The neighbor, who was sitting on the porch, is injured. The insureds 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?
Higher limits
An insured is involved in an auto accident in another state. The state has a financial responsibility law that specifies limits of liability higher than the limits shown in the declarations. What amount will the insureds policy pay?
Within 30 days after the end of each month
Coverage under a Floor Plan Merchandise form is written on a reporting form basis that requires the insured to file reports with the insurer. What is the time frame for those reports?
Are paid in addition to the liability limit
First aid costs for others injured on the insureds premises...?
It removes the coverage
How doee the mobilehome endorsement affect the other coverage of law or ordinance in a homeowners policy?
It removes the coverage
How does the mobile home endorsement affect the other coverage of law or ordinance in a homeowners policy?
6 months
How long is a temporary license good for before you have to renew it?
30 days
How long is a waiting period upon purchase of flood coverage through NFIP?
1 year
How long is the policy period for NFIP flood insurance?
$500
How much coverage is provided under a homeowners policy for theft or unauthorized use of a credit card?
A change in the risk that substantially increases the hazard insured against
If a policy has been in effect for at least 60 days or is due for renewal, a cancellation may only be effected for what reason?
10 days
If a policy is canceled due to nonpayment of premium, how many days advance notice must the insurer give the policyholder before cancellation?
$500
If an insured covered under a mobile homeowners policy moves the mobile home to protect it from a covered peril, the policy will pay up to...?
25%
If the actual values exceed the limit of insurance, the businessowners policy (BOP) contains a seasonal increase provision that automatically increases the limit of insurance for business personal property by....
Part A
In a watercraft policy, what coverage part will respond to a claim for damages for bodily injury or property damage for which the insured becomes legally liable because of a watercraft accident?
Part A
In a watercraft policy, which coverage part will respond to a claim for damages for bodily injury or property damage for which the insured becomes legally liable because of a watercraft accident?
Handling insurer funds in a trust capacity
In insurance transactions, fiduciary responsibility means...?
2 years
Insurers must update copies of its rates, plans, systems, and underwriting rules every...?
12:01 am the day after the application and premium payment are mailed
Johanna purchased a NFIP 10 days after her community entered an emergency program. When would her coverage be effective?
Insureds
Persons covered under an insurance policy, whether named or not, are known as the...?
Other than collision coverage
Rental Reimbursement is only available if the policy includes which coverage?
Certificate of authority
To legally transact insurance in this state, an insurer must obtain which of the following?
Insuring agreement
The part of the insurance contract that describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured is called the...?
Medical supplies located in a hospital
The physicians and surgeons equipment floater is NOT intended for...?
They are automatically provided with replacement cost coverage
What is true regarding single dwellings that are insured to at least 80% of the replacement value?
The bulldozer being used as part of a business addition under construction that is parked 500 feet from the building
What item would NOT be covered under building coverage in a building and personal property policy?
A person who negotiates insurance contracts
What person is required to hold a producer license?
Earthquake
What term best describes a trembling or shaking of the earth that is volcanic or seismic in origin?
Movable personal property, wherever it may be located
What type of property does a personal floaters policy cover?
Moveable person property, wherever it may be located
What type of property does a personal floaters policy cover?
Mobile equipment during transportation to and from the job site
What will be covered by the contractors equipment floater in an unfiled inland marine insurance?
Sewer backup
What would NOT be considered a flood?
Landslides
What would NOT be considered causes for flood conditions covered by the National flood insurance program?
The carrier
When a regular bill of lading is issued, who will be responsible for the invoice cost of any damaged property?
Every 2 years on the last day of the producers birth month
When does a producers license expire?
Foreign
When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?
Stated amount
When the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss, the coverage is said to be written as...?
DP-1
Which of the following dwelling policy forms primarily insurers a structure on an actual cash value basis?
leakage from fire extinguishing equipment
Which of the following is defined as a covered cause of loss in businessowners property coverage? Pollution Leakage from fire-extinguishing equipment Rain Smoke from agricultural smudging
Vandalism
Which of the following losses would NOT be covered by the dwelling policy if the dwelling is vacant for over 60 days? Vandalism Fire Windstorm Internal Explosion
A person who negotiators insurance contracts
Which of the following persons is required to hold a producer license?
Directors and officers liability
Which of the following special liability coverages will provide protection to managers of a corporation for claims arising from a wrongful act committed by the manager while in an official capacity?
The oblige may engage another contractor and then seek reimbursement from the surety
Which of the following statements is true concerning a bonded contractor who defaults on a construction performance contract?
Uninsured motorist coverage
Which type of liability insurance may an insured reject in writing?
uninsured motorist coverage
Which type of liability insurance may an insured reject in writing?
Agreed value
Which type of valuation works best for property whose value does not fluctuate much?
DP-2 and DP-3
Which, if any, dwelling policies insure the structure on a replacement cost basis?
Principal, obligee, and guarantor
Who are the parties to a bond?
Insured
Who is responsible for filling out a notice of claim form?
A vehicle that is titled to another person, but is being used with permission by an insured
With respect to the personal auto policy, what could be classified as a nonowned auto?
6 stories
to be eligible for BOP coverage, an office building cannot be higher than....?
$250,000
The regular National Flood Insurance Program would insure an eligible single-family dwelling for up to...?
Trip transit
The type of insurance used to cover goods for one specific trip is called...?
90 days
The Employee Theft crime policy form includes a coverage extension that applies to employees temporarily outside the coverage territory for up to....?
One that has met the minimum floodplain management guidelines
To be eligible for coverage under the National Flood Insurance Program, an insured must live in what kind of community?
Owned or leased by the residents of the mobile home
The mobile home endorsement alters the homeowners policy to cover a mobile home and other structures on land....
15 months
What is the maximum period of time a temporary license can be in force?
Utility service — direct damage
An accident on the premises causes the building to lose refrigeration for 32 hours. The state inspectors will not allow the meat in the fridge to be sold for human consumption, and Frank loses $18,500 in disposing of the meat. What coverage under franks BOP policy will cover the loss?
6
An agent must be a resident of the state and be present in the state for at least how many months each year?
5 years
Authorized insurance companies are examined by the commissioner at least once every...?
Personal and Advertising Injury Liability
BB Market was sued when an employee detained a person he believed to be a shoplifter, but the person turned out to be the meter reader. Which coverage would apply to this suit?
Automobiles held for sale
Business personal property coverage form doesn't cover what?
Collapse
Name an additional coverage that is covered by the BROAD causes of loss form?
Animals and birds
Name something NOT included in Dwelling policy Coverage C - personal property...?
The method of transferring the owners rights
The cancellation provision in a businessowners policy specifies all of the following EXCEPT
Description of the property insured
The commercial property declarations page contains what information?
$160,000
The insured purchased a $200,000 extra expense policy. If the percentages applying to the limit of insurance are 40%, 80%, and 100%, what would be the maximum payable for a 47-day loss?
Businessowners liability coverage form
The liability coverage of the businessowners policy is written on a...?
30 days
The mail coverage form is always written on a reporting form basis; after the end of each reporting period shown in the declarations, reports are due within...?
For inspections and examinations
The major portion of the premium for an equipment breakdown policy pays....
Pair or set
Under a dwelling policy, which of the following clauses applies if an insured has lost one of two matching silver candlesticks?
Insureds income and net worth at the time of loss
Under a homeowners policy, all of the following information must be included in the insureds signed, sworn proof of loss EXCEPT...?
$5,000
Under the commercial crime coverage inside the premises — robbery or safe burglary of other property, what is the special per occurrence limit that applies to loss or damage to precious metals, precious and semiprecious stones, pearls, furs, manuscripts, drawings, or records?
3 years after the policy expires
Under the conditions of a film coverage form, how long must the insured maintain records of each production?
30 days
Under the dwelling policy, if an insurer chooses to repair or replace damaged or lost property, it must inform the insured within how many days of receiving proof of loss?
Get the insureds consent
Under the professional liability loss settlement provision, what must an insurer do before offering to pay a claimant to settle a claim?
Prepackaged software
Valuable papers and records form provides coverage for the reconstruction of all the following types of records EXCEPT...?
A uniform bill of lading
What are common carriers required to issue to every shipper that it transports goods for?
Up to $1,000 per occurrence
What best describes the amount of loss assessment coverage included under a homeowners policy liability coverage section?
Motor truck cargo policy — carriers form
What covers a carrier for liability for a loss to cargo while it is being transported in a truck?
Any loans required to offset uncollectible amounts
What is NOT covered under accounts receivable coverage form...?
Any loans required to offset uncollectible amounts
What is NOT covered under accounts receivable coverage form?
Valuable papers and records
What is NOT settled on an actual cash value basis while covered under the business property coverage form?
Internal explosion
What is a peril that is covered under both the basic form and broad form dwelling policies?
Collapse
What is an additional coverage that is covered by the broad causes of loss form?
Property is stolen as a result of a driver leaving a vehicle unlocked
What is an example of a situation where a common carrier would be legally liable for damage to property being transported?
Property damage liability
What is defined as the legal liability arising from physical damage to the belongings of others caused by the negligence of an insured?
Damage from animals
What is excluded from the special form dwelling policy?