Property and casualty Missed practice exam questions

A standard fire policy may be written. to cover all of the following EXCEPT? A. reinsurance B. there are no exceptions C. personal property. D. commercial property

A ( standard fire policy will not. be used fro reinsurance between insurers)

In the event of a claim under a commercial general liability policy, the insured has all the following duties to the insurer EXCEPT A. submitting to a medical exam when requested B. providing prompt written notice of any claim or suit actually filed against the insured C. Furnishing. the insurer with copies of any demands, notices, or other legal papers received in connection with a claim or suit. D. assisting the insurer upon the request of any right against any person or organization that. may be liable to the insured.

A. (under medical payments coverage, the injured third party has to submit to an exam upon request, not the insured)

If an insured covered under mobile homeowners policy moves the mobile home to protect it from a covered peril, the policy will pay up to? A. 350 B. 500 C. 750 D. 1000

B

What is the name for the type of property damage coverage that protects the insured or the covered auto in an accident with someone who does not have coverage? A. underinsured motorist B. uninsured motorist C. disaster coverage D. Calamity motor coverage

B

The national do not call registry was created to regulate A. telemarketers B. field underwriters C. Insurers D. insurance solicitors

A

which of the following entities established the Do-Not-Call Registry? A.the better business bureau B. The NAIC C. the consumer protection agency D. The federal trade Commission

D (The FTC established the Do Not call list)

A $100,000 house insured on a policy with an 80% coinsurance requirement has a fire that caused $40,000 of damage; the owner has a policy with $60,000 coverage. How much can the owner collect for his loss? A. $20,000 B. $30,000 C. $40,000 D. $60,000

B (because $60,000 is 75% of the minimum requirement, it will only pay 75% of the damages)

The insured's mother-in-law falls and breaks their leg falling down on the front steps of the insured's premises. The insured's homeowners medical payment coverage will pay what? A. Pay only the mother-in-law has no health insurance of their own B. share equally in the cost with the mother-in-law's health insurance C. apply to injuries of any guests or visitors D. pay as excess over the mother-in-law's insurance

C

The Louisiana automobile insurance plan was established to? A. subsidize losses of insured who are insured under the plan B. approve rates to be charged of high risks insureds C. provide a method of insuring drivers who are unable to purchase liability insurance in the voluntary market D. All of the above

C ( was established as a method of providing auto insurance to those entitled, but unable to procure auto insurance in the normal market)

How can a person become the commissioner? A. appointment by the retiring commissioner B. appointment by the Governor C. election D. appointment by NAIC

C (elected to a 4 year term)

a premium discount is the term that describes when an insured owes a total standard premium greater than A. $15,000 B. $1,000 C. $5,000 D. $10,000

C (loss sustained crime coverage pays for losses that occur during the policy period and are found for up to 1 year after the policy is terminated)

Which of the following best describes liberalization clause in a policy? A. the insurer is relieved of its contractual obligations to the insured B. the insured may assign the policy to any person without their written consent C. the policy cannot be canceled D. changes adopted by the insurer that broaden coverage automatically apply to the policy at no additional premium

D

Which of the following examples of losses under a HO-3 also would be paid under an HO-2 homeowners policy? A. damage to the dwelling caused by lava or dust from a volcanic eruption B. damage from a dwelling caused by the insured while moving furniture

A

Which of the following would be covered under the Garage Liability coverage form? A. insured's business premises B. product recalls C. fellow employees D. Loss of use

A

The Louisiana Insurance Guaranty Association Board of directors are placed in office by A. election and appointment. B. lottery. C. Election D. appointment

A (5 are elected, and 4 are appointed by the commissioner)

All of the following statements regarding a boat-owners policy are true EXCEPT? A. replacements for the boat in the decelerations are automatically covered, if the insured notifies the insurer within 60 days and pays the additional premium. B. watercraft liability protects up to specified limits for claims against a "covered person" for damages due to bodily injury caused by a watercraft. C. physical damage coverage is provided on an actual cash value (ACV) basis D. perils are insured on an open-peril basis, providing that the insurer will pay for direct and accidental loss to the property insured.

A (Automatic coverage is provided on replacements for the boat listed in the declarations provided the insured notifies the insurer within 45 days of purchase and pays any additional premium required)

an insurance producer fails to obtain automobile insurance for a client after agreeing to do so. this client is involved in an automobile accident after running a red light and is found to be at fault. the damage to the other vehicle totals $5,000. which statement regarding the producer's errors and omissions liability policy is true? A. it will provide coverage because the damage to the client resulted from the producers negligence B. it will not provide coverage; such physical damage to property is not covered C. it will not provide coverage because the property damage resulted from the client breaking the law D. it. will provide coverage because punitive damages have been awarded.

A (Errors and omissions coverage protects insurance producers and brokers from financial losses they may suffer if an insured sues to recover his or her financial loss due to the producer giving incorrect advice or not informing the insured of important issues)

who is NOT considered an employee in a commercial general liability (CGL) policy? A. temporary worker B. leased worker C. full-time worker D. Part-time worker

A (in CGL policy, a temporary worker is not considered an employee)

Which type of commercial crime policy coverage is triggered by a loss that happens during the policy period, but is not necessarily discovered during the policy period? A. loss sustained form B. retroactive form C. mysterious disappearance form D. discovery form

A (loss sustained crime coverage pays for losses that occur during the policy period and are found for up to 1 year after the policy is terminated)

Which of the following is available to an insured with a vehicle subject to no-fault coverage? A. symbol 5 B. symbol 6 C. symbol 7 D. Symbol 9

A (symbol 5 covers autos subject to no-fault coverage)

According to the Workers Compensation and employer liability policy form, a state. should be listed in Part Three- other states' insurance of the workers compensation and employers liability policy when? A. the state has a monopolistic workers compensation fund B. The state expects to extend in the state where the policy is written C. the insured has operations in the state where the policy is written D. The insurer is not licensed to write workers compensation in that state.

B

At the time of loss insured against in a property. and casualty policy the insurer's claim settlement options include all of the following EXCEPT? A. paying the value of the lost or damaged property B. replacing the property with other property of lesser kind or value C. paying the cost of replacing the lost or damaged property. D. Taking all or part of the property at an agreed or appraised value.

B

Which of the following would be considered an insured under a business auto coverage form? A. a parter of the named insured for any covered auto by that person or a member of his or her household. B. Anyone while using, with permission, a covered auto by the named insured C. the owner or anyone else from whom the named insured hires or borrows a covered auto D. 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

Which loss listed below would be fully covered by a homeowners policy? A. $5,000 firearm collection B. $2,000. silver tea set C. $1,200 pedigreed golden retriever stolen D. $24,000 bass boat destroyed in a tornado

B (tea sets are covered with a specific limit of $2,400 for the peril of theft; firearm coverage is up to $2,500; boats are covered for no more than $1,500, dogs are not covered at all)

What type of bond guarantees that a construction contractor will enter into a contract at a set price. A. maintenance bond B. bid bond C. performance bond D. payment bond

B (when construction projects are awarded based on the lowest bid, the obligee usually requires a bid bond. the bid bond promises that if the contractor is regarded, the contractor actually will accept the contract)

Any clause condition or provision contained in the fire policy contrary to the valued policy law will. A. Void the policy B. Be enforced instead of the valued policy C. be considered null and void D. none of the above

C

Which of the following would NOT be covered by medical payments to others in section II of your HO policy? A. you are walking your neighbor's dog and it bites someone B. you allow the neighborhood kids to play flag football in your yard, and one is injured C. you cut your leg while whacking weeds in your backyard with your neighbor's weed whacker. D. your child's nanny falls while waking down your steps.

C ( medical payments to others covers invitees, residents. employees not covered by workers comp, and injury to others caused by animals in your control. If you hurt yourself, accident and health insurance would be needed for your injuries)

Which of the following would be considered under a business auto from? 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 auto hires or borrows a covered auto.

C ( the business coverage form provides coverage on covered autos while used by the insured or employees of the insured; or others using. the covered auto with permission; but does not cover the exposure of other autos not owned, hired, or leased by the insured)

Which of the following policy provisions would automatically broaden coverage under a policy without requiring additional premium? A. subrogation B. assignment C. Liberalization D. other insurance

C ( the liberalization claims, all policies issued within a certain time before the change will be interpreted as if they have been changed, provided the change does not require additional premium)

An insured is a member of the neighborhood association, and has become liable for damage to a third party. Each member of the association has been assessed a portion of the loss equal to $2,000. How much will the Loss Assessment additional coverage of the insured's homeowners liability policy pay? A. nothing B. up to $500 C. up to $1,000 D. up to $2,000

C ( the policy will pay up to $1000 a person during the policy period)

Erroneous Publishing copied all the material from angels inc.'s book. The only change made by Erroneous were to rename the title and chapters, put a different cover on it, and distribute it. Angels Inc. files a claim against Erroneous and seeks damages. Will commercial general liability policy cover the claim? A. no, because this event does not meet the definition of infringement B. No, because the claim results from copyright and is not an advertisement C. no, because there is no bodily injury or property damage D. yes, because the claim is a result of erroneous products and work

C (advertising injury is only in the case of libel, slander, or violation of the privacy of others; copyright is specifically excluded)

an insurer conducts business in Louisiana without a certificate of authority. hundreds of policies are sold, and claims start rolling in. Which of the following is true? A. because the insurer is not authorized, the guaranty association will pay the claims B. because the insurer is not authorized, it is not required to pay the claims C. the insurer will have to pay the claims anyways D. The insurer will void all the policies

C (if the company issues insurance illegally, it will be responsible for paying claims under its fraudulent policies)

which of the following risks is eligible for coverage under a business-owners responsibility? A. automobile dealers B. bars or taverns C. condominiums D. banks

C (insurance services, inc. (ISO) maintains a list of risks not eligible for consideration for a BOP. Financial institutions, auto dealer, and bars/ grills are specifically exclude from the coverage)

Any inducement offered in the sale of insurance products that is not specified in the policy is an unlawful practice known as? A. False advertising B. Coercion C. Rebating D. Twisting

C (rebating is defined as any inducement offered to the insured in the sale of insurance products that is not specified in the policy. Both the offer and acceptance of a rebate are illegal)

which of the following is NOT found in a commercial package policy? A. common policy declarations B. Interline endorsements C. Certificate of Authority D. common policy conditions

C (regardless of how the policy is written, it will be comprised of the following essential elements: common policy declarations page, common policy condition, interline endorsements, and coverage parts)

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports? A. they provide information about a customers character and reputation B. the customer has no knowledge of this action C. The consumer's associates, friends, and neighbors provide the report's data. D. they provide additional information from an outside source about a particular risk.

C (reports are provided from an outside source about a customer's character. both reports are used under Fair Credit Reporting Act)

a Producer is charged with committing several crimes in Louisiana. Who is required to report the charges to the Commissioner? A. the State police B. the charges don't need to be reported to the commissioner C. the producer D. the court

C (the produce is responsible for reporting the conviction to the commissioner)

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information? A. the Guaranty Association B. The Consumer Privacy Act C. The Fair Credit Reporting Act D. Unfair-trade practices law

C (the purpose of this act is to protect consumers against the circulation of inaccurate or obsolete. information and to insure the reporting agencies are fair and equitable in their treatment of customers)

an insured is dissatisfied with her insurance policy and wants to negotiate certain provisions of the contract. What entity would her producer represent? A. the government B. the insured C. The insurer D. the commissioner of insurance

C (under agency law, producers usually represent the insurance company with which they are contracted)

of the following, which is NOT defined in the personal auto policy as an uninsured motor vehicle? A. a vehicle covered by a bodily injury liability policy B. a vehicle covered by a bodily injury policy, but the coverage limit is less than minimum required by the financial responsibility law. C. a vehicle owned by a government entity D. a vehicle in which the driver or owner is unknown

C (vehicles owned by the government are specifically excluded as uninsured.)

All of the following are true of coverage-B Other structures EXCEPT? A. this coverage. is not applicable on the HO-4 form. B. the amount of coverage provided by coverage B is an amount equal to 10% of Coverage A C. Land where other structures are located is not covered D. it must be added by endorsement to homeowners policy

D (Coverage B covers 10% of amount in coverage A, this amount can only be increased by endorsements)

in insurance transactions, fiduciary responsibility means? A. maintaining a good credit record B. being liable with respect to payment of claims C. commingling premiums with agent's personal funds D. handling insurer funds in a trust capacity.

D (an agent's responsibility includes handling insurer funds in a trust capacity)

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 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? A. split B. aggregate C. per occurrence D. combined single

D (combined single is a single dollar limit of liability applying to the total of damages for bodily injury and property damage combined resulting from one accident. or occurrence)

Which of the following statements is true regarding the commercial general liability policy's coverage c- medical payments? A. the coverage provides high limits of insurance for bodily injury losses. B. the coverage is considered good will because payments are made without regard to fault C. the coverage applies to bodily injury to the named insured D. the coverage is liability insurance because it pays only if the insured is legally liable.

D (coverage C- medical payments provides necessary medical, surgical, ambulance, hospital, nursing or funeral expenses for injuries to 3rd parties. payments will be paid without regard to. the fault or negligence of the insured)

Under the workers compensation system, who is responsible for the expenses resulting from work-related injuries and occupational diseases? A. the employer, but only if it was at fault for the injury or disease B. The employee and employer in equal shares C. the employee D. the employee, regardless of whether it was at fault for the injury or disease

D (employers are required to purchase workers compensation policies. Part one pays for work-related injuries to employees without regard for negligence)

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business? A. apparent B. assumed C. express D. implied

D (implied authority exists because not every single detail of an agent's authority can be written in a contract.)

which of the following is NOT true regarding mobile agricultural. machinery and equipment coverage? A. it relates to devices used in the everyday farm operations B. it covers detached parts and accessories of mobile devices C. it insures eligible equipment for open perils D. this coverage must be written as part of farm coverage

D (mobile agricultural equipment coverage may also be written on a separate stand-alone policy)

an applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the names and address of the consumer reporting company? A. consumer privacy act B. conditional receipt C. disclosure rule D. Fair Credit Reporting Act

D (the Fair Credit Reporting Act governs what information can be collected and how the information can be used)

In which of the following sections of a commercial auto policy will you find specific information about the policy period? A. additional coverages B. selected endorsements C. definitions D. conditions

D (the conditions section of auto policy defines coverage in greater detail and determines such things as policy period, coverage territory, and how coverage will apply in certain situations)

Which of the following covers a carrier for liability for a loss to cargo while it is being transported in a truck? A. Motor truck cargo policy- owners form B. trip transit policy C. truckers coverage form D. motor truck cargo policy- truckers form

D (the motor trucker is liability insurance and the owners form is property coverage)

how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained? A. 3 days B. 5 days C. 10 days D. 14 days

A

when a producer could be in violation of an insurance law or regulation, the commissioner will issue a A. cease and desist order B. suspension order C. noncompliance order D. stop-action order

A (the commissioner will issue a cease and desist order when a producer could be in violation of an insurance law or regulation)

Under the Fair Credit and Reporting Act, individuals rejected for insurance due to information contained in a consumer report. A. must be informed of the source of the report B. are entitled to obtain a copy of the report from the party who ordered it C. must be advised that a copy of the report is available to anyone who requests it D. may sue the reporting agency to get inaccurate data corrected

A (the consumer must be advised an provided with the name and address of the reporting agency)

a policyholder has an equipment breakdown policy with a $200,000 limit. if a boiler causes $100,000 of damage to the boiler itself, $50,000 to the insured's building, and $30,000 of expediting expenses, how much will the insured collect under the policy? A. $175,000 B. $180,000 C. $200,000 D. $100,000

A (the limit breakdown policy applies to all personal property, except a limit of $25,000 on expediting expense)

Coverage F (medical payments) under homeowners policy would cover? A. a residence employee who is injured on the job B. a tenant who is injured while on the premises. C. a family member who is injured while residing in the insured premises D. the insured for injuries sustained while working at home.

A ( residence employees are covered by the policy if not covered by workers comp)

a producer who fails to segregate premium monies from his own personal funds is guilty of? A. commingling B. larceny C. embezzlement D. theft

A ( they are commingling there applicants funds with their own)

The purpose of insurance regulation is to A. promote the public welfare B. workers compensation coverage C. Crime coverage D. makes insurance companies pay taxes

A (the purpose of the state insurance department is to protect the public's interest in matters concerning insurance)

what is the main justification for the existence of the Sate Insurance Department? A. to protect. the State from practices of companies and producers B. to protect the public C. to Protect companies from malicious law suits D. To Protect producers from the national association of insurance commission

B ( the Sate Insurance Department exists to protect the public)

if a producer is suspected of acting in violation of the insurance authority would preside over a legal hearing regarding the matter? A. The NAIC B. The commissioner C. the Governor D. The county court

B ( the commissioner is in. charge of hearings regarding matters of insurance code violations.)

A Commercial Package Policy (CPP) allows the insured to select the coverage needed and customize the policy to meet the needs of the insured's in a CPP, the business owner may select form all of the following types of coverage EXCEPT? A. General liability coverage B. Workers compensation coverage C. Crime coverage D. Boiler and machinery coverage

B ( workers compensation is not available through CPP)

How much coverage is provided under a homeowners policy for the theft or unauthorized use of a credit card? A. $100 B. $500 C. $1,000 D. $5,000

B ($500 is provided automatically, and may be increased by endorsement)

The minimum fine for violating the Insurance Code is? A. $500 B. $1,000 C. $1,500 D. $2,000

B (The statues limits the fine to $1000, unless the person knew the act was a violation, in that case, the fine can be increased. to as much as $25,000)

Which of the following insurers are owned by stockholders? A. fraternal B. stock C. mutual D. reciprocal

B (only insurance companies are owned and controlled by stockholders)

All of the following statements concerning the liability coverage are true EXCEPT? A. liability policies defend the insured against claims, real or alleged B. the policyholder can sue the insurer whether or not all conditions & provisions of the policy are met. C. the insurer cannot refuse to pay a claim even if the insured is bankrupt D. Liability polices normally include supplementary payment provisions

B (the legal action against the insurer condition states that the policy holder. cannot sue the insurer unless he or she has met all conditions in the policy)

A temporary license may be issued without examination to all of the following EXCEPT? A. the surviving spouse of a deceased producer B. the spouse of a retired producer C. the legal guardian of a disabled producer D. the designee of a producer entering active service in the US Navy.

B (there is no provision for a temporary license to be issued to conduct business of a retired producer)

agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of A. rebating B. twisting C. defamation D. misrepresentation

B (twisting is a misrepresentation that persuades an insured or policy holder, to his detriment to cancel, lapse, or switch policies)

Payment of medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages? A. general B. special C. tort. D. Normal

B. (Special damages are tangible damages that. can be specifically measured in dollar amounts; such as out-of-pocket medical expenses, and loss of wages)

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? A. 10 days B. 3 days C. 5 days D. 7 days

C

The insured with a homeowners policy has had damage to his property caused by a volcano. Which of the following is true? A. all eruptions are considered separate occurrences no matter how close together. B. Coverage for each volcanic eruption would require a separate deductible C. all volcanic eruptions within a 72-hour period will be considered one event. D. none of the damage is covered

C

Which endorsement under the commercial auto policy provides the insured's employees additional protection while using a vehicle not owned, hired or borrowed for the insured's business? A. deductible liability B hired autos C. employees as insureds D. drive other car

C

Which of the following is the correct formula for the computing loss ratio? A. (incurred loss- loss adjusting expenses)/ earned premium B. loss adjusting expenses- incurred expenses C. (incurred losses+ loss adjusting expense)/earned premium D. (incurred expenses+ loss adjusting expense)/earned premium

C

if the Louisiana citizens property insurance Corporation denies an application, the applicant may appeal to the? A. commissioner B. Louisiana department of insurance C. Louisiana insurance rating commission D. Louisiana citizens Property Insurance Corporation

C

The insured with a claims-made commercial general liability (CGL) policy may be requested 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. A. within 60 days B. as soon as practical C. within 45 days D. within 60 days

C (this is a standard CGL claims-made provision)

Shipbuilders and repairers are covered by the A. jones Act B. State workers compensation laws C. federal Employer's Liability act D. US Longshore and Harbor Workers Compensation Act

D

a basic dwelling policy automatically provides coverage against fire, lightning and A. smoke B. riot C. windstorm D. internal explosion

D

a temporary license is good for A. 30 days B. 60 days C. 90 days D. 180 days

D

the transfer of money inside a banking premises to a person other than a messenger outside those premises or to a place outside those premises is covered under which commercial crime coverage? A. Money orders and counterfeit paper currency B. other crime coverage C. outside premises D. computer fraud

D

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? A. actual cash value B. replacement cost C. reproduction cost D. stated amount

D ( stated amount is an amount of insurance scheduled in a property policy which is not subject to any coinsurance requirements in the event of a covered loss)

The bankruptcy provision found in the personal auto policy states that bankruptcy of the insured A. is one of the reasons an insurer can cancel the policy B. Will suspend the physical damage coverage C. will waive all future premiums D. will not relieve the insurer of its policy obligations.

D ( the insurer must provide the coverage stated in the policy)

A BOP is most similar to? A. auto B. umbrella C. cargo D. homeowners

D (this is because both require property insurance and liability insurance in a single policy)

Which of the following statements is true concerning underinsured motorist coverage under a personal auto policy? A. it will pay up to the limits of insurance for any loss which involves an uninsured driver B. limits must equal the bodily injury limits of the policy C. limits may differ from the limits of uninsured motorist coverage D. coverage applies only to the extent that the underinsured motorist limits exceed the bodily injury limits carried by the operator of the other vehicle

D (uninsured motorist coverage will act in excess coverage over the at fault drivers bodily injury coverage)

Because an insured owns a lot of expensive jewelry, her insurance agent has advised her. to purchase a scheduled personal property endorsement. If the insured adds this endorsement to her homeowners policy, which of the following statements would be correct? A. the amount of coverage would be doubled B. the endorsement becomes excess coverage C. the endorsement becomes primary coverage and HO contract is secondary D. Coverage C will no longer apply to the jewelry insured by the endorsement

D (when items are scheduled, they are excluded from Coverage C as insured items, and are covered only under the scheduled personal property endorsement)

an insured has $5000 of medical coverage on a personal auto policy at the time of a covered accident. the insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000 for the first passenger, and $8,000 for the second passenger. How much will the policy pay under medical payments coverage? A. $14,000 B. $15,000 C. $5,000 maximum for the accident D. $5,000 minus the policy deductible

A ( the policy limit is $5,000 per person, per accident)

what is the minimum number of continuing education credits in ethnics every licensing period? A. 3 B. 5 C. 10 D. 12

A (24 continuing education credits are necessary, 3 of which must be on ethnics)

The designation symbol used in commercial auto policies can be found in which policy section? A. covered auto B. liability coverage C. Definitions D. Conditions

A (Section I- covered auto of a commercial auto policy explains the destination symbols used in the coverage)

Which of the following property coverages provide protection to contents damaged by fire? A. coverage C B. coverage D C. coverage A D. coverage B

A (coverage c- personal property provides coverage for the contents of an insured dwelling)

residential structures, including individual condominium units, and their contents. are insured by what part. of the National Flood insurance program? A. Dwelling policy form B. Basic coverage form C. Residential condominium Building. association policy (RCBAP) D. General Property policy form

A (dwelling policy forms are used to insure residential structures and there belongings; includes condos)

Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance? A. Slandering B. Defamation C. undercutting D. twisting

B (defamation is making statements that are false as to the financial condition of any insurer and which are calculated to injure any person engaged in the business of insurance)

Which of the following is eligible for a business-owners policy form? A. a mercantile risk with gross sales over $4million B. a 6-story building with less than 100,000 sq/ft C. an 8 story building D. a convenience. store with gas pumps with 60% of gross sales from the gasoline sales

B (minimum eligibility, 6-stories high; 25,000 sq/ft; 100,000 sq/ft office buildings; and. 3 million in gross sales)

Which of the following is NOT a goal of risk retention? A. to fund losses that cannot be insured B. to minimize the insured's level of liability in the event of a loss C. to reduce expenses and improve cash flow D. to increase control of claim settlements

B (retention usually results from three basic desires of the insured: to reduce expenses and. improve cash flow, to increase control of claim reserving and claims settlements and to fund losses that cannot be insured)

Under which type of coverage does the insurer agree to pay for bodily injury or property damage liability which the insured has agreed to assume under a written contractual agreement? A. Property damage liability policy B. bodily injury liability policy C. contractual liability policy D. Personal liability policy

C

What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act? A. $100 per violation B. Revocation of license C. $2,500 D. $1,000

C

When a resident producer changes his residence, the insurance Department, must be notified within A. 3 days B. 15 days C. 30 days D. 60 days

C

according to the appraisal condition of a homeowners policy, what procedure must be followed if the insurer and insured do not agree as to the size of a loss? A. the parties must pursue a lawsuit B. the policy holder is allowed to hire an appraiser, and the insurer will pay the amount determined C. either party may make a written request for an appraisal D. the insured is required to accept what the insurer is willing to pay

C

an insurance company assures its new policy holders that their premium costs will not increase for a period of at least five years. however due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act? A. unfair discrimination B. erros and omissions C. fraud D. defamation

C (any falsely omissions of material fraud are considered unlawful insurance fraud)

in a farm policy, which of the following coverages would reimburse the insured for loss of rental income following damage to the insured dwelling by and insured peril? A. Coverage A B. Coverage C C. Coverage D D. Coverage E

C ( Coverage D provides coverage for the loss of use of the insured dwelling when it is rendered uninhabitable because of damage by an insured peril).

A commercial policy has been in direct 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? A. 10 days. B. 30days C. 60 days D. 90 days

C ( Unless there is a nonpayment of premium which only requires a 10 day notice, a 60 day notice is required)

a beauty parlor burns to the ground. What type of loss is this to the owner? A. specific B. consecutive C. direct D. consequential

C ( damage caused by a peril that is insured is classified by a direct loss)

Which of the following would NOT be covered by a homeowner policy? A. a $550 utility trailer blown away by a tornado B. a stolen silver tea set worth $2000 C. an $800 outboard destroyed by hail D. a coin collection valued at $500 lost in a fire

D ( the policy only pays $200 for coins)

A licensed life producer has completed 12 hours of his continuing education hours for this period. how many more will he have to finish? A. 3 B. 8 C. 10 D. 12

D (24 hours of continuing education hours is required every 2 years)