PSI

Which of the following methods of risk management have an insured practicing actions to control risk?

*1. avoidance 2. reduction 3. retention 4. transfer

Liability arising out of any of the following is excluded from the personal and advertising injury liability coverage EXCEPT

*1. unknowingly inflicting injury that violates the rights of another. 2. oral or written publication of material that the insured knows is false. 3. criminal acts committed by or at the direction of the insured. 4. failure of goods or products to conform with advertised quality.

What does an application for insurance contractually represent for the insured?

*1.an offer 2. a promise to pay 3. an agreement of terms 4. a primary source of information

All of the following are the most commonly used personal inland marine forms EXCEPT

. 1.personal property form. 2. personal articles form. *3. builder's floater form. 4. personal effects form.

Which of the following describes why the insuring agreement is the heart of an insurance policy?

1. It states the ground rules for the policy. 2. It describes the losses for which the insured is not covered. 3. It lists the amount of coverage provided. *4. It describes property covered and perils insured.

As general rule, commercial inland marine insurance covers all EXCEPT

1. domestic shipments *2. merchandise while it is being manufactured. 3.musical instruments for professional use. 4.contractor tools used on a job site.

Which of the following BEST differentiates the terms vacant versus unoccupied?

1. vacant means insured is away for a period of time 2. vacant means the absence of people 3. unoccupied means absence of people and property *4. vacant means the absence of people and property

Which of the following limits of insurance on the dwelling are available and apply to Coverage D-Fair Rental Value?

1.10% 2. 15% *3. 20% 4. 25%

Which of the following represents the maximum amount reimbursable for tree debris removal for one occurrence under all Homeowners forms?

1.5% of coverage A 2. 15% of coverage A 3. $500 *4. $1,000

All of the following are examples of types of reinsurance EXCEPT

1.FAIR plan program. 2. Federal Crop Insurance. 3. National Flood Insurance Program. *4. Workers' Compensation Insurance.

Which of the following is EXCLUDED as a covered loss under the DP-3 coverage?

1.Freezing of pipes when water is shut off during a vacancy 2. Vandalism in a house vacant for 30 days 3. Sudden seepage from an air conditioning system *4. Damage by ice to outdoor radio and television antennas and aerials

Which of the following homeowners forms is most appropriate for older homes with replacement values that may far exceed their market values?

1.HO-2 2. HO-3 3. HO-5 *4. HO-8

The Fair Credit Reporting Act permits consumer reporting agencies to include applicant information about bankruptcies MORE than 10 years old under which of the following circumstances?

1.The applicant has been convicted of a felony or fraud. 2. The applicant is a public or political figure. *3. The applicant is seeking a transaction greater than $150,000. 4. The applicant is employed in the financial industry.

Which of the following policy assignment rights occurs when the named insured dies?

1.The closest relative takes over the policy. 2. A new owner of the property takes over the policy. *3. The insured's legal representative takes over the policy. 4. No-one is permitted to take over the policy.

When does the coverage begin for a builders risk form?

1.The date the policy premium is paid 2. On the date any construction begins 3. On the date construction starts above the highest basement floor if there is a basement *4. On the date construction starts above the lowest basement floor if there is a basement

Which of the following types of insurers operates within the United States, but outside of the state in which it is incorporated?

1.alien 2. domestic *3. foreign 4. interstate

What is the type of authority that is either stated orally or in writing and allows an agent to act on behalf of the insurance company?

1.apparent *2. express 3. formal 4. applied

When an insured disagrees with the valuation of a loss and his appraiser and the insurance company's appraiser disagree, how will the loss be settled?

1.by the insurance company's appraiser 2. a third appraiser called an umpire will make the decision 3. the insured's appraiser will determine the valuation of the loss *4. the amount agreed to by any two of the three

All of the following are covered for named perils under Coverage B EXCEPT

1.detached garage .2. perimeter fencing. *3. grave markers. 4. in ground swimming pool.

All of the following losses are excluded from the DP-1 basic policy form EXCEPT

1.earth movement. *2. lightning strike. 3. power interruption. 4. water damage.

Which of the following is an example of replacement cost valuation?

1.fair market value of item at time of loss 2. actual cash value of item at time of loss *3. cost new without depreciation at the time of loss 4. cost of functional value of item at time of loss

Which of the following is not authorized to conduct business in the state under ordinary circumstances but may offer specialized coverages for certain circumstances?

1.fraternal benefit society 2. independent agent *3. nonadmitted insurer 4. non-exclusive agent

All of the following are TRUE regarding identity theft EXCEPT

1.identity theft involves using personal information without permission. 2. some states consider identity theft the same as a forgery or alteration. 3. whether the offense is a felony or misdemeanor depends on the intent. *4. identity theft protection is a standard feature of most insurance policies.

Which of the following business liability exposures does a slip and fall loss fall under?

1.indirect and contingent 2. medical expense *3. premises and operations 4. retail hazards

Which of the following are defined as a part of the policy and can void the policy if they are breached, whether the breach was intentional or unintentional?

1.material facts 2. representations 3. waivers *4.warranties

All of the following are listed in the duties of the insured following loss EXCEPT

1.notice of claim. 2. proof of loss. 3. submitting to examination. *4. contracting for restoration.

Which one of the following is an example of pure risk?

1.placing a bet on your favorite sports team *2. storing your new motorcycle outside 3. rolling over your 401K to a local broker 4. investing in a financially troubled company

Which policy condition encourages policyholder to insure to at least 80% of replacement value to avoid a penalty with partial losses?

1.replacement cost 2. repair cost *3. coinsurance 4. functional cost

Which of the following injuries will medical payments on a homeowner policy pay?

1.the insured's arm broken when trimming his tree 2. a telephone company employee injured while servicing insured's phone *3. a neighbor's injury from fall while helping clean insured's eaves 4. the insured's daughter who slipped on the front steps

Federal Crop Insurance is a type of insurance sometimes called which one of the following?

1.voluntary private insurance 2. special broadened forms insurance 3. national association coverage insurance * 4. residual market insurance

All of the following are a covered cause of loss under the Homeowners HO-2 Broad form EXCEPT

1.weight of ice, snow, or sleet. 2. freezing of plumbing or related systems. *3. discharge or overflow of water from a sump. 4. sudden and accidental damage from electrical current.