PROPERTY & CASUALTY
Under businessowners policy Section I, if an insurer wants to nonrenew a policy, how many days before the expiration date must the insurer notify the mortgageholder?
10 days
if the Commissioner is scheduling a hearing for a potential violation of the Insurance Code, what is the minimum required notice?
10 days
if the commissioner is scheduling a hearing for a potential violation of the Insurance Code, what is the minimum required notice?
10 days
within the first 60 days of coverage under a dwelling policy, how much notice is required for the cancellation of a policy?
10 days
Johanna purchased a National Flood Insurance policy 10 days after her community entered an emergency program. When would her coverage be effective?
12:01am the day after the application and premium payment are mailed
a man sustained multiple fractures from an auto accident in which the operator of the other vehicle cannot be identified. the man notified the police as required, as well as the insurance company of the time, date, and place of the injury. the insurance company must mail the required forms for completion within how many days following the notification of the accident?
15 days
when an insurer makes changes to premium rates, the insurer must notify policy owners within how many days of the change?
15 days
within how many years of a loss may an insured bring a lawsuit against an insurer, according to the dwelling policy?
2 years
the appraisal clause of the standard fire policy allows for the process of settling disputes over ACV of the property or the amount of loss. when disputes arise, each party (insurer and insured) must select an impartial appraisal within
20 days
to maintain their insurance license, agents are required to complete how many hours of continuing education every 2 years?
24 hours
the standard fire policy limits legal action against the insurance company to how many years?
3 years
How long is the waiting period after the application has been accepted before flood coverage goes into effect?
30 days
If an insured is in the process of moving to a new location, his personal property coverage under the dwelling policy will apply on a pro rata basis at both locations for
30 days
The removal coverage included in the broad form dwelling policy will cover property temporarily removed from the premises to protect it from damage for how long?
30 days
The removal coverage that is included in the broad form dwelling policy will cover property temporarily removed from the premises to protect it from damage for how long?
30 days
if the commissioner denies an initial application for an agent, how long does the applicant have to request a review after receiving notification of the denial?
30 days
the initial binding period for new workers compensation coverage issued by the north carolina rate bureau is
30 days
under businessowners policy section I, if an insurer wants to cancel a policy for any reason except nonpayment of premium, how many days before the effective cancellation date must the insurer notify the mortgageholder?
30 days
under the additional coverages of a businessowners policy, property removed to protect it from loss will be covered at another location for up to:
30 days
an automobile rate filing made by the North Carolina Rating Bureau is deemed to be approved after
50 days
Under Coverage C of a homeowners policy, the amount of insurance provided to cover personal property of the insured is
50% of the amount provided as coverage A
Assuming the insurer and the insured agree on the amount payable for a loss covered under a dwelling policy, how soon after the insurer has received proof of loss must it make payment?
60 days
an insurance agent visits a potential client and explains various types of policies. the customer displays a lack of interest, so the agent guarantees higher dividends than he knows would be possible. which term describes what the agent has done?
misrepresentation
guaranteeing future dividends is considered to be an unfair or deceptive act known as
misrepresentation
a home is insured under an HO-2. the homeowner decides to replace the roof on the house. he wasn't able to complete the roof in one day and left a portion of it unfinished overnight. a heavy rainstorm caused $20000 of damage to the interior of the house and some furniture. in this situation, the policy will pay
nothing
the commercial general liability coverage part A - bodily injury and property damage provides coverage for which of the following?
premises
a small appliance manufacturer in this state provides around the globe. a customer in switzerland is injured using one of its products. if the appliance manufacturer is found liable for the damages, why would its commercial general liability policy cover the customer's claim for bodily injury?
the appliance was manufactured in the united states
which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy?
the insured would be responsible for the amount required as underlying limits in the event of a claim
the members of a limited liability company are insureds under a businessowners policy (BOP) if
the limited liability company is designated as the named insured
on a DP-3 dwelling property special form policy, the coverage provided for personal property is
the same as provided on the DP-2 broad form
how much is the funeral benefit under workers compensation?
$3500
an insured was judged at fault in an automobile accident. he has the 100/300 bodily injury liability coverage. three other individuals were injured in the vehicle hit by the insured. they were awarded damages of $150000 and $75000. what amount, if any, was not covered by his insurance policy?
$50000
the businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period?
1 year
when an agent changes email address, the department of insurance must be notified within
10 days
Under the additional living expenses coverage, if a civil authority prohibits the insured from using the dwelling because of direct damage to a neighboring location from a peril covered in the insured's policy, loss would be covered for up to
2 weeks
a licensee who ceases to maintain residency in NC is required to deliver any insurance licenses to the Commissioner by mail or in person within how many days after terminating residency?
30 days
after appointing an agent, how long does an insurer have to file with the commissioner the form detailing the agent's name, address, and other needed information?
30 days
an employee injured at work must give notice within how many days of the injury?
30 days
an insured with a homeowners policy has removed property from the insured location to protect it from loss which could be caused by a covered peril. the removal coverage applies for:
30 days
the commissioner must examine every domestic insurer at least once every
5 years
the employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to
90 days
coverage F (medical payments) under a homeowners policy would cover
a residence employee who is injured on the job
which of the following would NOT be eligible for coverage under a personal auto policy?
a vehicle purchased 90 days ago
an employee is injured while visiting the employer's out-of-state site. how will the workers compensation benefits be determined?
benefits will be provided if the state was listed on the policy information page
Under the HO-4 and HO-6 homeowners policy forms, property is insured against
broad form perils
employers liability coverage under a workers compensation policy includes
damages claimed by third parties
a licensee decided to terminate his residency in this state. which of the following would be an appropriate action?
delivering the license to the Commissioner within 30 days
which of the following is covered by auto other-than-collision (comprehensive) coverage?
electric equipment required for the normal operation of the car
the general powers and duties of the commissioner of insurance include all of the following except
enact statutes to govern the insurance industry
in a dwelling policy, which of the following is true regarding personal liability coverage?
it must be added as a supplement or written as a separate policy
under the dwelling policy, coverage C - personal property is
limited to covering a servant's property while at the insured location
a property insurance policy that insures a commercial building on a replacement cost basis includes the ordinance or law coverage endorsement. this endorsement will cover all of the following expenses EXCEPT
ordinance with which the insured was required to comply prior to the loss
an insured has a liability policy that sets the amount for all claims that arise from a single incident at $50000. which type of limit of liability does this insured's policy have?
per occurrence
what type of coverage is coverage E in homeowners policies?
personal liability
the garage coverage form is written to cover the insurance needs of an insured in the business of selling, repairing, servicing or storing automobiles. which of the following coverages are not included in a garage policy?
physical damage on a customer's auto
Who would participate in a Write Your Own (WYO) flood insurance program?
private insurers that wish to write and service national flood insurance policies on a no risk bearing basis
While an insured was towing a utility trailer with his auto, the trailer came loose and ran into a store front. What part of the insured's auto policy would pay for the damage to the store?
property damage liability
membership into the north carolina motor vehicle reinsurance facility is
required for all insurer licensed to write auto liability insurance
in case of a loss, the indemnity provision in insurance policies
restores an insured person to the same financial state as before the loss
Coverage B - Personal and Advertising Injury Liability responds to claims arising from
suits alleging infringement of a copyright
the amount an insurer will pay under coverage D (loss of use) depends on
the amount of coverage on the dwelling
the occurrence form trigger is based on which of the following?
the date when injury or damage occurs
which would NOT be covered by an insured's uninsured motorist coverage?
the insured causes a head-on collision with the car of an uninsured motorist
which of the following would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy?
the insured would be responsible for the amount required as underlying limits in the event of a claim
if the underwriters direct a vessel to proceed to a particular port for repair, who pays the expenses, including wages and maintenance, of doing so?
the insurer
in ocean marine insurance, who pays all reasonable expenses if sue and labor is required to lessen a loss?
the insurer
all of the following are true regarding physical damage EXCEPT
the limit of liability is the greater of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle
which of the following best describes the amount of loss assessment coverage included under a homeowners policy liability coverage section?
up to $1000 per occurrence
the insured with a claims-made commercial general liability 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
how long does a NC agent have to notify the Department of Insurance in the event of a change in residency address?
10 business days
insurance companies are required to provide proof of loss forms to the claimant within how many days after receipt of notice of loss?
15 days
how long is the waiting period upon purchase of flood coverage through NFIP?
30 days
removal coverage under a standard fire policy remains in effect for:
5 days
the main difference between an HO-4 and an HO-6 is
HO-6 provides limited dwelling coverage as well as contents coverage
With regards to a homeowners policy, which coverage provides for indirect or consequential losses?
coverage D
in the personal auto policy, owned trailers being towed by an insured auto are automatically covered for
uninsured motorist coverage
supplementary payments on a CGL provide all of the following EXCEPT
up to $500 a day for lost earnings and $2000 for the cost of bail bonds
when does an insurer's duty to defend a suit or claim end in a commercial general liability policy?
when loss payments equal the applicable limit of insurance
an insurer or authorized representative of the insurer that terminates the appointment, employment, contract, or other insurance business relationship with an agent shall notify the Commissioner:
within 30 days after the effective date of the termination
a commercial package policy (CPP) allows the insurer to select the coverage needed and customize the policy to meet the needs of the insured's business. in a CPP, the business owner may select from all of the following types of coverages EXCEPT
workers compensation coverage
if a car is stolen and left in a snow bank and the radiator freezes and does a lot of damage, is the damage covered by the auto policy?
yes, freezing exclusion is removed if the car is stolen
an insured has an automobile policy with limits of 100/300/50 and a deductible of $1000. he is involved in an auto accident and crashes into another driver's auto. the other driver is awarded $125000 for his injuries and $25000 for the damage to his car. the insured's vehicle has damage in the amount of $1200. the total payment made under the insured's policy is
$125200
a policyholder has an equipment breakdown policy with a $200000 limit. if a boiler explosion causes $100000 damage to the boiler itself, $50000 damage to the insured's building and $30000 of expediting expenses, how much will the insured collect under the policy?
$175000
in accordance with American Institute Hull Clauses, a pro rata return of premium will be given for all the following reasons EXCEPT
if the policy is cancelled by the insured
all of the following are true of coverage B - other structures except
it must be added by endorsement to a homeowners policy
which of the following is NOT true concerning the fair rental value coverage provided in a dwelling policy?
loss or expense caused by the cancellation of a lease is covered
which of these is defined as the maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claims that may be made or the number of accidents that may occur?
aggregate limit of liability
under a commercial general liability policy, which of the following is NOT considered mobile equipment?
an automobile used as a company car by a real estate company
employers liability insurance, part 2 of a standard workers compensation and employers liability policy form, excludes,
an intentional act that is caused by the insured
you are at fault in an auto wreck out of state. how does your company adjust?
at least to the minimum required by that state
which of the following statements is true concerning the special form dwelling policy?
coverage A is for all-risk perils, and coverage C is for the broad form perils
which of the following dwelling coverages would provide coverage to a garage not attached to the primary insured dwelling?
coverage B
which of the following property coverages would provide protection to contents damaged by fire?
coverage C
in a dwelling policy, which of the following provides coverage for additional living expense incurred by an owner-occupant in the event a covered peril makes the premises uninhabitable due to a covered loss?
coverage E
under the examination of books and records condition, the insurance company has the right to examine and audit the insured's books and records related to the policy
during the policy period and for up to 3 years after the termination policy
whenever a bureau rate is held to be unfairly discriminatory or excessive and no longer effective by order of the commissioner, the members of the bureau shall have the option to continue to use such rate for the interim period pending judicial review of such order. which of the following statements is correct?
each member shall place in escrow account the unfairly discriminatory or excessive portion of the premium collected during such interim period
which of the following is defined as the cost to replace damaged property with less expensive and more modern construction or equipment?
functional replacement cost
homeland housing corp holds a mortgage on a property that john and carol thomas purchased. john and carol have a homeowners policy with home protection insurance which has a mortgagee clause naming Homeland as a loss payee. if john and carol suffer a fire to their home
the thomases and homeland will be considered co-claimants and receive loss reimbursement from home protection insurance
all of the following are true regarding notice of cancellation of an auto policy EXCEPT
the written notice of cancellation does not have to include a statement advising the insured of the penalties for operating a vehicle without insurance
all of the following are other coverages included in both the broad and special form dwelling policy EXCEPT
theft of personal property