Property

Under coverage B - other structures, a homeowners policy provides coverage for other structures on the residence premises. Which of the following statements is NOT true of this coverage?

Any loss paid under coverage B reduces the coverage A limit of liability

which of the following would be considered a peril

Fire

A situation occurring when property is insured by more than 1 policy against the same hazard, in an amount exceeding the fair value of that property, is called

Overinsurance

Policy limits are the maximum amount an insured may collect, or for which an insured is protected under the terms of the policy?

Policy

In Washington after an insurance contract goes into affect, it can be cancelled for any reason within

60 days

Which statement best describes "agreement" as it relates to insurance contracts?

One party accepts the exact terms of the other party's offer

A farm owner policy is usually what type of policy

Package policy

What type of insurer uses a formal sharing agreement

Reciprocal insurers

An insureds limit of liability applies to a total of damages for bodily injury and property damage resulting from 1 accident which may be used in any combination of amount , not to exceed the single limit. What type of limit does the insured have?

combined single

All advertisements, regardless of their source of creation are the responsibility of the

Insurer

under coverage C and at the request of an insured , personal property of a guest residence employee is covered

While it is in any residence premises or occupied by an insured

under the farm property and livestock coverage forms, which of the following property is covered for loss by the perils of earthquake or flood?

Farm animals

What is a bailee responsible for?

Property of others in his custody

How does insurance distribute the financial consequences of individual losses?

it transfers the risk to all persons insured

During the 120 day period after receiving notice of cancellation of an agency contract, the agency can continue to perform which of the following transactions?

perform routine adjustments of losses

Which of the following types of property is NOT movable

real property

Premiums collected on behalf of the insurance company by an agent will be held in what capacity?

Fiduciary

before an insurer may transact business in a specific state they must apply for a license or certificate of authority from the state department of insurance and meet

Solvency requirements

What information is found in the conditions part of an insurance policy

The description of duties and obligations of the insured

If an insurance policy prohibits the insured from relinquishing ownership of insured property that has been damaged, its prohibiting?

abandonment

An insured purchased his home 10 years ago for 80,000 it had a replacement cost of 100,000. Today the house has a replacement cost of 200,000 and has depreciated by 4% each year. The Home has an actual cash value of..?

120,000(replacement cost- depreciation) or (200,000 x 4%) x 10 years

Which of the following describes an insurers responsibility for payment under a policy, as stated in the common policy provisions?

Limits of liability

Which of the following covers the interest of a secured lender in personal property?

Loss payable clause

When an insurer acquires the insureds rights against a third party for the purposes of receiving indemnification for loss called

Subrogation

All of the following are unfair claims settlement practices Except

Suggesting negotiations in settling the claim

What is a sudden unplanned and unexpected event not under the control of the insured resulting in injury or damage that is neither expected or intended called?

Accident

An insured was told to leave his home because of endangerment by a brush fire that was out of control. The insured was able to have his personal property moved to storage away from the endangered area. For how long will the homeowners policy provide coverage for the stored property?

30 days

if an insurer participating in the WYO flood program pays more in flood claims than it has collected in flood premiums. Which of the following is true?

FIA will pay back he difference

When insurance is written on a dwelling form,which of the following types of property would be insured under coverage B?

a garage separated from the dwelling

with regard to homeowners section II which of the following does NOT meet the definition of "insured location"?

a plot of farmland owned or rented by the insured

Homeowners policies consider all of the following insured locations except?

a strawberry patch owned by the insured

In a DP-1, if the insured elects to apply coverage B to a detached garage, coverage a will

be reduced by 10%

Which of the following statements is true regarding advertisement that the insurance guaranty Association would assure payment of benefits in the event of insurer insolvency?

it is illegal to mention the association in advertisements

A commercial policy has several named insureds, When servicing the policy, with whom does the insurer deal with?

First named insured

which of the following would be a proper choice of policy for a company that transports goods that are irreplaceable in nature?

Valued policy

Roger owned a grocery store & had a reporting form policy with a 100,000 limit for the stores invintory. Last report showed value of 50,000. than increased to 75,000 but did not make a timely report. what is the maximum amount of coverage for Roger?

50,000 because that was the last timely report

In insurance, agents have authorization to represent the company and may exercise this relationship through

Alien authority

Insurance rates developed by the underwriter based on his skill and experience instead of actual analysis are known as

Judgement rates