psi exam

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.

.3. grave markers.

A personal injury liability policy indemnifies for all of the following EXCEPT 1. bodily injury 2. slander/ libel 3. invasion of privacy 4. n/a

1. bodily injury

Which of the following is TRUE regarding consent to settle a loss?

A signature of the insured providing consent is not required.

Which of the following are covered under Part D- coverage for damage to your auto of the personal auto policy?

Electronic equipment permanently installed in the auto.

All of the following is TRUE regarding an umbrella policy EXCEPT

the policy can be issued alone without an underlying liability policy.

All of the following are TRUE regarding burglary EXCEPt

to escape notice

Under liability coverage which of the following will trigger coverage for property damage?

unintended damage to tangible property of others

is more likely to be insured by state or federal government programs

war risk

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

20%

All of the following are Unfair Claims Settlement Practices EXCEPT 1. misrepresentation of policy provisions. 2. failure to acknowledge pertinent communications. 3. failure to respond to a first notice of loss within 24 hours. 4. denial of claim without a reasonable investigation.

3. failure to respond to a first notice of loss within 24 hours.

A personal injury liability policy indemnifies for all of the following EXCEPT 1. bodily injury. 2. false arrest. 3. liable and slander. 4. invasion of privacy.

4. invasion of privacy.

What does the abandonment condition state?

Correct answer: It prevents the insured from abandoning property before being reimbursed.

Which of the following is TRUE when the insured's limits of insurance apply per occurrence?

Coverage is triggered for smoke damage to siding caused by repeated acts by insured's neighbor.

Why is an insurance contract a contract of adhesion?

The insurance company wields more power than the insured.

Why is an insurance policy an aleatory contract?

The policy is contingent on an uncertain event.

All of the following are TRUE about the appraisal condition EXCEPT

a referee makes the final decision

All of the following are TRUE regarding a nonowned auto EXCEPT

a rental car would not be covered under the policy.

Which of the following describes an insurance company that meets the insurance department's standards and is authorized to do business in the state?

admitted

A personal injury liability policy indemnifies for all of the following EXCEPt

bi

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

coinsurance

Which of the following does HO-6 provide?

coverage for personal property of a condominium owner

The description of the insured will be found in which part of an insurance policy?

definitions

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

discharge or overflow water from a sump

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

grave markers

Which of the following is how defense costs are paid in relation to the limit of insurance under the personal auto policy for bodily injury and property damage part A-liability coverage?

in excess of the limit

What does a misrepresentation involve that could void a policy?

information that may change the insurer's interest in issuing the policy if known at the time of the application

What does the coinsurance condition encourage policy holders to do?

insure for a minimum total value of the property

Which statement is INCORRECT regarding personal liability coverage?

it is standard coverage in a dwelling policy.

A contract that is against public policy is not enforceable according to which contract characteristic?

legal purpose

All of the following situations represent additional personal liability exposures that can be met with an umbrella policy EXCEPT

liability arising out of business pursuits.

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

lightning strike

What does the insuring agreement that is known as "the heart of the policy" detail?

losses covered under the insurance agreement

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

minimum 500 per tree/shrub 1k max

Which of the following is an example of risk avoidance?

not driving a car to not risk an accident

Which of the following would be covered perils under the DP-1 Basic policy form?

riot/civil commotion

The Terrorism Risk Insurance Act and the National Flood Insurance Program are similar by providing which of the following?

subsidies, loss sharing or excess coverage

Which of the following is the special limit of coverage on the homeowners policy form for property damage to personal watercraft?

1500

How does functional replacement cost differ from replacement cost?

Functional replacement provides for less expensive but serviceable equivalent items.

With which of the following methods are losses settled on an actual cash value (ACV) basis?

less depreciation

All of the following perils are specifically listed as being other than collision losses in the personal auto policy Part D- coverage for damage to your auto EXCEP

tapes records etc

A woman slips on icy steps and breaks her leg. Which of the following is the peril in this situation?

the fall