Property and Casualty OREGON
Reporting Form
A business owner whose inventory changes significantly throughout the year should consider having coverage written on what type of form?
Mechanical breakdown
A common exclusion found under physical damage to your auto includes
The tree is blocking the driveway.
A neighbor's tree has fallen into the insured's yard. The insured's homeowners policy will only pay to remove the tree if
The producer must notify the Director within 30 days of the final disposition of the matter.
A producer became subject to an administrative action by a governmental agency (not the state Department of Insurance). Which of the following would be considered an appropriate action?
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?
Damage to a third-party property for which the insured is legally liable.
Additional coverages in the liability section of a homeowners policy cover all of the following EXCEPT
Intervening Cause
After a storm dumps several inches of snow, an insured spends several hours clearing his sidewalk and driveway. Later that night it begins to sleet. Before the insured can clear his walks again, his neighbor slips and falls while walking past the insured's house, breaking his arm. Which defense will reduce recovery for the neighbor's injury?
insuring agreement
All of the following are conditions commonly found in the insurance policy EXCEPT
Loss of use
All of the following are exclusions under farm property coverage EXCEPT
Sales
All of the following are factors in rating workers compensation insurance EXCEPT
To pay defense cost even after the aggregate limit has been reached
All of the following are true statements regarding the supplementary payments of a commercial general liability policy EXCEPT
Suggesting negotiations in settling the claim
All of the following are unfair claims settlement practices EXCEPT
This coverage limit pays in place of the limit of insurance shown in the declarations.
All of the following statements are true regarding fire department service charge additional coverage under the businessowners policy EXCEPT
Parts used in the repair of an insured vehicle by other than the original manufacturer must use replacement parts from the manufacturer only.
All of the following statements regarding parts used in the repair of an insured vehicle are true EXCEPT
Benefits will be provided if the state was listed on the policy information page.
An employee is injured while visiting the employer's out-of-state site. How will the workers compensation benefits be determined?
Fraud
An insurance company assures its new policyholders 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?
The insured boatowners policy
An insured invites his neighbors out for a day on the water in his boat powered with a 150 hp outboard motor. While attempting to tie the boat to dock, his neighbor's hand is broken when caught between the boat and dock. What coverage would apply to the broken hand?
Loss is not covered
An insured is driving her automobile and strikes a large pothole that causes a flat tire. Which coverage of the insured's personal auto policy will pay for the repair?
Combined single
An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's liability policy has a limit of $500,000. This amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does the insured have?
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 insured's policy pay?
Low Deductible
An insured purchases a difference in conditions policy. It may contain all of the following characteristics EXCEPT
30 days
An insured with a homeowners policy has removed property from the insured location to protect it from loss that could be caused by a covered peril. The removal coverage applies for
The accounts receivable coverage form
An insured's accounts receivable records have been damaged. The loss may be covered with
A producer who handles insurer funds in a trust capacity
Concerning insurance, the definition of a fiduciary is
3 years
Coverage J under farm coverage agrees to pay reasonable medical expenses, regardless of fault, caused by an accident if the expenses are incurred and reported to the insurer within how many years of the accident date?
60 days after the construction has ended.
Coverage under the builders risk form will end in all of the following situations EXCEPT
None
Damage to insured property caused by earth movement or earthquake is covered under which of the following homeowners forms?
Land on which the dwelling is located
Dwelling coverage includes all of the following EXCEPT
Deliberate Law Violation
Employment practices liability insurance (EPLI) would NOT cover claims arising from
Peak season
HMS Toys carries more inventory from October 1 to December 31. Which of these would provide higher coverage limits during those months and lower limits the rest of the year?
All reasonable cost
How much is covered for debris removal under the HO property additional coverages?
10 days
If a homeowner's policy is being cancelled because of unpaid premiums, how much notice should be provided?
Nothing
If a nonresident producer for this state changes his or her home address, what must the producer do to comply with the Oregon rules?
133% 1/3% the states average weekly
If a worker is killed in a work-related equipment accident, the dependents would receive workers compensation survivor benefits. The maximum amount for these benefits is
Impairment
If a worker returns to work after a permanent partial disability, which of the following benefits will be paid?
21 days
If the Director requests information regarding a claim, within how many days must the insurer provide a response?
Experience rating plan
If the premium charged for a particular insured is increased or decreased for a future period based on that insured's loss experience for a period in the recent past, the policy uses a/an
It must be added as a supplement or written as a separate policy.
In a dwelling policy, which of the following is true regarding personal liability coverage?
When an insurer's underwriter approves coverage
In forming an insurance contract, when does acceptance usually occur?
Deductible
In property and casualty insurance, what is the term for the amount of a loss that the insured must cover out of pocket, and the insurer will only pay for the additional amount of the loss above this limit?
A specified time
In the event of a loss covered by the policy, if the insurer requests a signed sworn proof of loss, the named insured is required to submit it within
Surplus lines insurance.
Insurance procured from an unauthorized insurer is called
Basic Property only
Insurers that write ______ insurance need to belong to the FAIR Plan.
The same as provided on the DP-2 Broad Form.
On a DP-3 Dwelling Property Special Form policy, the coverage provided for personal property is
Prosthetic expenses for 2 years, up to a limit of $15,000
Personal Injury Protection includes coverage for which of the following accident-related expenses?
A commercial articles floater
Professional photographers and musicians may insure their equipment with
Considered true to the best of the applicant's knowledge.
Representations are written or oral statements made by the applicant that are
Do not allow private insurers to be licensed to write workers compensation coverage
States with monopolistic state workers compensation funds
The difference in the actual cash value as a pair and as a single
The contents coverage on a homeowners policy would pay how much after the loss of one of a pair of golden candlesticks?
Up to 2000
The cost of restoring farm records is an additional coverage offered under a farm policy. How much will the policy pay to restore the records?
Auto businesses, such as auto dealers, service stations, and auto repair shops.
The garage coverage form is used to insure
The sole proprietor of the business and his or her family members
The individual named insured endorsement under a commercial auto policy provides coverage for which of the following?
For inspections and examinations.
The major portion of the premium for an equipment breakdown policy pays
Principal
The party to a surety or fidelity bond who promises to fulfill the obligation is the
Exclusions
The section of an insurance policy that details what perils are not insured against and what persons are not insured is known as the
A producers retirement
This state provides for a temporary license for all of the following EXCEPT
No coverage is applicable
To perform work on a customer's car, a mechanic in an auto shop had to put the vehicle on a service hoist. The hoist collapsed, damaging the vehicle and injuring the mechanic. In regard to the garage coverage form, which of the following statements is true?
pair or set
Under a dwelling policy, which of the following clauses applies if an insured has lost one of two matching silver candlesticks?
When being carried or towed by a covered auto
Under the business auto coverage form, mobile equipment is covered for liability insurance
Limited to covering a servant's property while at the insured location.
Under the dwelling policy, Coverage C - Personal Property is
During the policy period and for up to 3 years after the termination of the policy.
Under the examinations 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
5
What is the maximum number of roomers or boarders for properties insured under the dwelling policy?
The Oregon Workers' Compensation Insurance Plan
What is the name of the entity developed to assign risk and provide the equitable apportionment among workers' compensation insurers?
Renewal dates
What type of information would be found in a policy's insuring agreement?
Renewal dates
What type of information would be found in a policys insuring agreement?
Open peril policy
What type of insurance policy insurers against all risk of loss that are not specifically excluded by the policy
Personal and advertising injury liability
When ABC Appliance's marketing stated that its mowing machine was the only safe mower available for purchase in town, ABC was sued by XYZ Lawn and Garden. ABC's coverage would come from which part of its general liability coverage?
300,000
When cities reach a certain size, unfair discrimination between risks of the same degree of hazard is not permitted when issuing burglary and theft or robbery policies. For this to take effect, the city must have a population of at least
The association coverage form will be considered primary and pay the loss.
When the condominium association coverage form and the condominium commercial unit-owners form both cover the same loss,
When the other party is legally liable but has no insurance
When would uninsured motorist coverage apply?
Annual transit
Which coverage form would provide coverage for all incoming and outgoing shipments?
outside the premises
Which coverage would a business owner need in a crime policy to cover money that may be stolen from a messenger?
Loss of use
Which of the following coverage's in dwelling and homeowners policies is for indirect losses
DP-2 and DP-3
Which of the following dwelling coverage forms would pay replacement cost for the dwelling?
DP-1
Which of the following dwelling policy forms primarily insures a structure on an actual cash value basis?
Joint underwriting association
Which of the following entities helps ensure availability and affordability of commercial liability insurance in the State of Oregon?
Permitted incidental occupancies
Which of the following homeowners endorsements covers liability exposures arising from an incidental business conducted within a building on the residence premises?
HO-4
Which of the following homeowners policies covers those who rent their dwelling?
The insurer may inspect the workplace after giving the insured 5 days notice
Which of the following is INCORRECT in regard to the conditions found in a workers compensation policy?
To regulate premium rates for property insurance
Which of the following is NOT a purpose of the FAIR Plan?
Workers compensation
Which of the following is NOT an optional coverage available in a businessowners policy?
Vandalism
Which of the following is NOT one of the available additional coverages in the builders risk form?
Participation in the Plan is voluntary.
Which of the following is NOT true regarding the Oregon Workers' Compensation Fund Insurance Plan?
To make property insurance available to those who cannot obtain it in the normal market
Which of the following is a purpose of the FAIR Plan?
Automatic sprinkler system
Which of the following is an example of a protective safeguard in a businessowners policy?
Replacement Cost
Which of the following is used in the formula for calculating the actual cash value of a property?
Fire or Lightning
Which of the following losses would be covered by an unendorsed homeowners policy?
All insurers who write basic property insurance
Which of the following must belong to the FAIR Plan?
A premium auditor has the right to examine the insured's compensation records at the end of the policy period to determine the actual premium basis.
Which of the following statements is true regarding the premium computation for workers compensation insurance?
Defamation
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?
Non-concurrency
Which of the following terms refers to other insurance that is written on the same risk, but not on the same coverage basis?
Owned watercraft 30 feet long used for carrying passengers for a fee
Which of the following types of property will NOT be covered by business liability insurance?
Bodily injury is caused by the insured's negligence while driving a three-wheel all-terrain vehicle.
Which of the following would NOT be covered under the liability section of a personal auto policy?
Advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered
Which of the following would be considered an unfair claims settlement practice?
Endorsments
Which of the following would modify the original insurance contract by either adding or removing coverage?
Loss cost rating
Which rating method provides an insurer with that portion of a rate that does not include provisions of expenses (other than adjusting expense) or profit and is based on historical aggregate loss and loss adjustment expenses projected through development to their ultimate value and through trending to a future point in time?
Property damage liability
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?
Often, any person occupying a commercial vehicle would be covered under a workers compensation policy.
Why don't commercial auto coverage forms automatically include medical payment coverage?
Immediately report to an emergency room for medical examination.
With regards to the personal auto policy, in the event of a claim or loss, the insured is required to do all of the following EXCEPT
