Review Questions
A specific coverage part is listed on the commercial package policy declarations page, but there is no premium shown. What does that mean? a)coverage is automatic b)there is no coverage c)coverage applies without premium d)this must be a misprint on the form
B
All of the following are considered parts of the policy structure EXCEPT a)conditions b)provisions c)exclusions d)insuring clause
B
Property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called a)described coverage b)specific coverage c)schedule coverage d)blanket coverage
B (one location insured for specific amount)
A house insured under a dwelling policy has been vacant for 70 consecutive days. Which of the following statements is true? a)damage to glass building blocks is not covered b)loss by theft is covered c)loss by vandalism and malicious mischief is excluded d)glass breakage as a result of vandalism is covered
C
How much coverage is provided under a homeowners policy for theft or unauthorized use of credit card? a)$100 b)$500 c)$1,000 d)$5,000
B
Insurance companies transacting automobiles insurance in Nevada must offer uninsured and underinsured motorist coverage that equals a)the insureds coverage limits for property damage b)the insureds coverage limits for bodily injury c)the insureds coverage limits for physical damage d)the insured coverage limits for personal injury protection
B
A building insured with commercial property insurance has been vacant 90 days. which of the following is NOT true? a)the insured has no coverage for losses caused by glass breakage b)payment for unnamed perils is reduced by 15% c)payment for unnamed perils is reduced by 25% D)the insured has no coverage for losses caused by theft
C
A common exclusion found under physical damage to your auto includes a)riot or civil commotion b)towing and labor c)mechanical breakdown d)glass breakage
C
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)replacement cost b)reproduction cost c)stated amount d)actual cash value
C
A used car dealer takes a car in trade as partial payment for a car on its car lot. The customer promises to bring in the car's title but does not. Another customer takes the trade-in for a test drive and has an accident. In regard to the dealership's business auto physical damage coverage, which of the following is true? a)Full coverage is provided b)Damage to the trade-in is covered c)there is no coverage d)liability coverage is provided
C
Which of the following is a mandatory part of an insurance policy that varied with each individual policy? a)exclusions b)insuring agreement c)declarations d)conditions
C
A unique feature in a bailee form is that it covers a)fire and theft losses to the insured's stock held for sale without any deductibles b)all loss and has no exclusions c)the building occupied by the insured whether it is owned or leased d)customers property whether or not the insured has been negligent
D
A person who acts as a motor vehicle physical damage appraiser without a license is subject to an administrative fine of a)not less than $1,000 for each violation b)not more than $2,500 for each violation c)not less than $2,500 for each violation d)not more than $1,000 for each violation
D
Who approves the form that states who may be excluded from a policy's coverage? a)the insurer b)the insured c)the state regulatory board of insurance d)the commissioner
D
How many days after cancellation of a license in another state does a new resident agent have to apply for Nevada producer license without having to fulfill licensing examination and education requirements? a)10 b)30 c)60 d)90
D
Super Value Store has a commercial general liability policy written with a general aggregate limit of $300,000 and an occurrence limit of $100,000. A customer injured on the premises was awarded $45,000 for medical expenses and loss of earnings, and $60,000 for pain and suffering. The court costs and attorney fees were $15,000. How much will the CGL policy pay? a)$115,000 b)$120,000 c)$100,000 d)$105,000
$115,000 (pays the OCCURRENCE limit $100,000) PLUS attorneys fees $15,000
A grave marker was damaged by vandals. It would cost $3,000 to have the damage repaired. Under these circumstances, how much would a homeowners policy pay? a)$1,000 b)$3,000 c)$0 d)$500
$3,000 homeowners policy 2000 pays up to $5,000 for grave markers
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
$5,000
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? Step 1- __________ X .80 = $80,000 (insurance required) Step 2- $_________ /(divided by) $________ = .75 Step 3- .75 X ______ = $30,000 ANSWER $30,000
-$100,000 -$60,000 ; $80,000 (answer to step 1 IS SECOND) -$40,000
All of the following are essential elements of a commercial package policy EXCEPT a)valuations and/or settlement provisions b)interline endorsements c)declarations page d)policy conditions
A
All of the following are other coverages included in both the broad and special form dwelling policy EXCEPT a)theft of personal property b)collapse c)breakage of glass d)lawns, trees, shrubs, and plants
A
All of the following statements are true regarding fire department service charge additional coverage under the business owners policy EXCEPT a)this coverage limit pays in place of the limit of insurance shown in the declaration b)this coverage limit is payable in addition to the limit of insurance shown in the declarations c)this coverage is not subject to any deductible d)This coverage provides an additional $2,500 amount of insurance
A
A policy holder has an equipment breakdown policy with a $200,000 limit. If a boiler explosion causes $100,000 damage to the boiler itself, $50,000 damage 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 (expediting expense not exceed $25,000) *** REMEMBER BECAUSE MISSED TWICE !
An insured owns a large dog. The first day he has to leave the dog home alone to go to work, the insured comes back to find his $400 couch torn apart, his $100 coffee table chewed up, his $50 window curtain shredded, and a $200 window pane shattered where his dog jumped through. The insured has personal property coverage under a special form dwelling policy. How much of this loss will the policy cover? a)$0 b)$200 c)$250 d)$750
A
Professional photographers and musicians may insure their equipment with a)a commercial articles floater b)a theatrical property coverage form c)a contractors equipment floater d)an installation floater
A
Which of the following losses would NOT be covered by the dwelling policy if the dwelling is vacant for over 60 days? a)vandalism b)fire c)windstorm d)internal explosion
A
Which of the following is true regarding insurance company appointment for a broker? a)brokers do not need to be appointed b)brokers must be appointed by the insurer c)brokers act as agents d)brokers represent insurers
A PS - (if two answers are opposite such as A and B, one of those is the answer!!)
Under business owners policy Section 1 if an insurer wants to non renew a policy for nonpayment of premium, how many days before the expiration date must the insurer notify the mortgage holder? a)10 days b)15 days c)20 days d)30 days
A ( INSURANCE notifies insured! less notice because they have not paid premium!)
All of the following are other coverages included in both the broad and special form dwelling policy EXCEPT a)theft of personal property b)collapse c)breakage of glass d)lawns, trees, shrubs, and plants
A (THEFT USUALLY NEVER INCLUDED UNLESS BY ENDORSEMENT!!!)
First aid costs for others injured on the insured's premises a)are paid in addition to the liability limit b)apply only if the insured is legally liable c)also covers injuries to the insured's family members d)are deducted from the liability limi
A (first aid cost only apply if you are NOT legally liable and are in addition to the STATED limits do not apply to people regularly at the location)
All of the following are true regarding rebates EXCEPT a)rebates are allowed if its in the best interest of the client b)rebates are only allowed if specifically stated in the policy c)rebates can be anything of economic value, given as an inducement to buy d)dividends are not considered to be rebates
A (rebates ONLY allowed if stated in policy! A is NOT true) PS - when taking test try writing down what the question is asking for such as... what is not true? what is true?? then go through each answer choice and ask "is A true" "is B true" ?)
All of the following are excluded in the equipment breakdown basic policy EXCEPT a)loss of power, light, heat, steam, or refrigeration b)explosion of steam boilers c)ordinance or law coverage d)business interruption
B
All of the following are supplemental payments found in liability policies EXCEPT a)limited amounts for bail bonds and other bonds related to a claim b)costs the insured incurred in hiring an attorney c)all expenses and defense costs incurred by the insurer d)reasonable expenses incurred by the insured
B
An insured has a personal auto policy with both comprehensive(other than collision) and collision coverage. His car is stolen and recovered five days later. If the insured claims transportation expenses of $20 per day, how much will his policy pay? a)$45 b)$60 c)$75 d)$100
B
An insured stated on her application for life insurance that she had never has a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied? a)estoppel b)material misrepresentation c)waiver d)utmost good faith
B
An uninsured motor vehicle includes all of the following EXCEPT a)the vehicle has no liability bond or insurance in force b)a vehicle being used for public livery c)the accident was a hit and run d)the insurance company denies coverage
B
Which of the following may NOT be included in an insurance company's advertisement? a)an identification of a limited policy as a limited policy b)that its policies are covered by a state Guaranty Association c)the policies limitations or exclusions d)the name of a specific agent
B
Which one of the following symbols used in business auto coverage is correctly described? a)symbol 7 - hired autos only b)symbol 9 - non owned autos only c)symbol 1 - owned auto only d)symbol 2 - owned autos subject to no fault
B
Joe received a notice from his insurer that his policy would be cancelled in 30 days. The notice did not give any reason for the cancellation and did not tell Joe any way to obtain that information. When will this cancellation be effective? a) Immediately b) The cancellation is not effective c) 30 days d) 6 days after Joe received the notice
B ( both nonrenewal and cancellation notice NEED this information included!)
Which of the following is an example of a producer being involved in an unfair trade practice of rebating? a)making deceptive statements about a competitor b)telling a client that his first premium will be waived if he purchases the insurance policy today c)inducing the insured to drop a policy in favor of another one when it is not in the insureds best interest d)charging a client a higher premium for the same policy as another client in the same insuring class
B (rebating - offering any inducement not specified in policy (reducing price = rebating)
Before an insurer will pay any loss under a policy, what is usually required from the insured? a)a binder b)a claims-made form c)proof of loss d)notice of claim
C
Coverage under the builders risk form will end in all of the following situations EXCEPT a)60 days after the building became occupied=sold b)the insured has sold the property c)60 days after the construction has ended d)construction has been abandoned **YOU GOT THIS WRONG AGAIN >:c try to remember this
C
Insurance is a contract by which on seeks to protect another from a)uncertainty b)hazards c)loss d)exposure
C
Professional liability coverage protects the insured against legal liability resulting from a) dishonest act b) the unprofessional conduct of an employee c) errors and omissions d)liability assumed under a contract
C
The members of a limited liability company are insureds under a business owners policy if a)a single individual member of the limited liability company is listed as the named insured b)members of a limited liability company cannot be insureds under a BOP c)the limited liability company is designated as the named insured d)each individual is listed as a named insured on the policy
C
The occurrence form trigger is based on which of the following? a)the amount of the insured's deductible b)the number of claims made during the policy period c)the date when injury or damage occurs d)the place where the injury or damage occurs
C
Which coverage form would provide coverage for all incoming and outgoing shipments? a)motor truck cargo b)mail coverage c)annual transit d)trip transit
C
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information? a)The guaranty association b)consumer privacy act c)the fair credit reporting act d)unfair trade practices law
C
Workers compensation will pay under which of the following situations? a) only when the employee is engaging in a negligent act b) only when an employee as at fault c)paid without consideration of fault or negligence on the part of either employee or employer d) only when the employer is engaging in a negligent act
C
how much is covered for debris removal under the HO property additional coverages? a)everything after a $200 deductible b)nothing unless added by an endorsement c)all reasonable costs d)90% of the total cost of clean up
C only if caused by a peril that is insured against!
Dwelling policy Coverage C - Personal Property will cover all of the following EXCEPT a)hobby aircraft b)computer software c)canoes d)animals and birds
D
According to business owners policy Section I, which of the following is NOT a condition to be met for the terms of the policy to apply to mortgage holders? a)if the insurer denies the claim, the mortgage holder may still take steps to receive loss payment b)the mortgage holder has the right to receive loss payment c)the insurer will pay covered losses or damage to each mortgage holder shown in the declarations d)the mortgage holder must petition the state department of insurance for named status
D
An insurance contract must contain all of the following to be considered legally binding EXCEPT a)offer and acceptance b)consideration c)competent parties d)beneficiary's consent
D
In addition to other insurance, each insurer that provides property insurance covering mobile homes must do what? a)provide casualty insurance for any accidents taking place in the home b)offer casualty insurance to members of the family c)offer both casualty insurance and life insurance through the same carrier d)pay the market value of the mobile home in the event of a total loss of the mobile home
D
In liability insurance policies, supplementary payments are made a)as part of the limit of liability b)at the option of the insured c)at the option of the insurer d)in addition to the limit of liability
D
Insurance is the transfer of a)loss b)hazard c)peril d)risk
D
Losses caused by continuous or repeated exposure to conditions resulting in injury to persons or damage to property that is neither intended nor expected is the definition of which of the following terms? a)peril b)hazard c)accident d)occurrence
D
What is the purpose of the coinsurance clause found in property insurance policies? a)encourage higher standards of care by requiring the insured to pay a portion of every loss b)ensure that insureds do not over insure their property c)prevent insureds from profiting from a loss d)encourage the insured to insure the property closer to its full value
D
Which of the following best described a misrepresentation? a)making a deceptive or untrue statement about a person engaged in the insurance business b)making a maliciously critical statement that is intended to injure another person c)discrimination among individuals of the same insuring class d)issuing sales material with exaggerated statements about policy benefits
D
Which of the following best describes the unfair trade practice of defamation? a)assuming the name and identity of another person b)issuing false advertising material c)refusing to deal with other insurers d)making derogatory oral statements about another insurers financial condition
D
Which of the following must be obtained by someone who intends to function as an administrator? a)certificate of authority b)administrator's license c)limited lines producer license d)certificate of registration
D
Which of the following statements concerning the builders risk coverage form is correct? a)it usually continues in effect for one year after completion of the structure b) it covers the interest of the builder only and cannot include coverage for the owner c)it may not be written for perils other than fire and extended coverage d) it may be written on a reporting form for the completed value of the structure
D
What type of liability would a person who owns wild animals have? a)vicarious b)implied c)direct d)absolute
D (any conduct inherently dangerous such as explosives or wild animals)
Business personal property coverage form covers all of the following EXCEPT s)furniture and fixtures b)machinery that is not permanently installed c)stock d)automobiles held for same
D (only covered under garage !)
A business using its own trucks to move its own cargo would insure the cargo using a)motor truck cargo - truckers form b)motor carrier form c)trip transit coverage d)motor truck cargo - owners form
D (own truck; own cargo = owners form)
Which of the following is covered under the Mail floater of a Commercial Inland Marine policy ONLY if is sent by registered mail? a)postage and revenue stamps b)money orders, checks, drafts, notes c)bonds, stocks, stock certificates, coupons attached to bonds d)currency and unsold travelers checks
D (registered mail = currency = MONEY)
A startup used car dealership buys cars at auto auctions in 30 states. It wants to be certain that damage coverage is provided when the cars are driven or transported from the auctions to the dealership. In regard to the business auto physical damage coverage, which is true? a)coverage is provided at additional premium b)coverage is provided for the wholesale amount only c)coverage is not provided under this form d)coverage is provided if dealership employees are in possession of the subject automobile
A
A tornado that destroys property would be an example of which of the following a)a peril b)a pure risk c)a loss d)a physical hazard
A
All of the following are true regarding physical damage coverage EXCEPT a)the limit of liability is the greater of the ACV of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle b)losses to non owned autos will be covered the same as the broadest coverage available for any covered auto, except non owned trailers are limited to $1,500 c)the policy will pay up to $20 per day to a maximum of $600 for rental transportation d)the insurer will pay for direct and accidental loss to a covered auto minus any applicable deductible
A
All of the following statements concerning coinsurance are true EXCEPT a) The coinsurance formula will also be applied to total losses b) It is used to help adequacy and equity in rates c) The insured agrees to maintain insurance equal to some specified percentage of the value of the property d) If the insurance carried is less than required, the insurance may not cover the whole loss
A
An advertising company has its annual holiday party for employees and customers, after which a customer who had too much to drink is involved in an automobile accident. Occupants of the other car involved in the accident sue the company for serving the customer too much alcohol. Will the company's business owners policy provide coverage? a)yes, none of the exclusions will apply b)yes, employer liability obligates the company to pay c)no, accidents outside the company premises are not covered d)no, liquor liability is excluded
A
An insured has an auto liability policy with limits of 25/50/15. The insured is involved in an accident caused by her negligence and is held legally liable for bodily injuries of 3 persons in the other auto as follows. A 15,000 B $30,000 C $35,000. How much will her insurer pay in total for all injuries A)$50,000 B) $105,000 C)$25,000 D)$30,000
A
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? a)combined single b)split c)aggregate d)per occurrence
A
An insured owns and operates a commercial business. He has included a business income coverage form with his commercial package policy. when the insureds business is severely damaged by fire, the business income coverage will pay for a)net income plus continuing expenses of the business b)sales value production less the cost of raw stock c)annual sales less the cost of merchandise d)loss of total annual sales
A
B&B market was sued when an employee detained a person he believed to be a shoplifter, but the person turned out to be the meter reader. Which coverage would apply to this suit? a)personal and advertising injury liability b)bodily injury liability c)property damage liability d)crime coverage part
A
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT a)conditions b)consideration c)legal purpose d)offer and acceptance
A
Bob insists that the insurer owes him $10,000 for liability damages, while his insurer asserts that they owe him no more than $7,000. Which of the following would most likely describe the type of claim settlement that they might pursue? a)arbitration b)small claims court c)independent audit d)appraisal hearing
A
Business personal property coverage form covers all of the following EXCEPT a)automobiles held for sale b)furniture and fixtures c)machinery that is not permanently installed d)stock
A
Employee fidelity may be written in all the following ways EXCEPT a)location schedule b)individual c)name schedule d)position schedule
A
The commissioner denied an application for insurance license and notified the applicant. Which of the following is true regarding a hearing regarding this? a)a hearing will be held within 30 days of the request b)the applicant has 15 days to request a hearing c)the hearing will be conducted by the state court system d)no hearings will be held for denial license application
A
What is a penalty for transaction insurance without a proper license? a)$1,000 b)$5,000 c)$10,000 d)$500
A
What method of premium computation related an employer's losses, payroll, and premiums to the rating bureau's classifications of operations? a)experience modification factor b)workers classification factor c)merit rating plan d)arbitration plan
A
When is a hired and nonowned auto liability endorsement available in a business owners policy BOP? a)only if the insured does not have commercial auto coverage b)only in addition to commercial auto coverage c)only if the insured has 4 or more employees d)never
A
Which of the following is covered under the Mail floater of a Commercial Inland Marine policy ONLY if is sent by registered mail? a)currency and unsold travelers checks b)postage and revenue stamps c)money orders, checks, drafts, notes d)bonds, stocks, stock certificates, coupons attached to bonds
A
Which of the following is required for a producer to transact business on behalf of an insurer? a)an agent appointment b)a business entity license c)a certificate of authority d)only the producers active license
A
Which of the following licensees are not compensated directly related to the amount of insurance sold? a)insurance consultant b)insurance company c)insurance agent d)insurance broker
A
An insurance producer faults to obtain automobile insurance for a client after agreeing to do so. The 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 punitive damages have been awarded b)it will provide coverage because the damage to the client resulted from the producer's negligence c)it will not provide coverage; such physical damage to property is not covered d)it will not provide because the property damage resulted from the client breaking the law
B
An insured owns several buildings, each at a different location and insured on a separate policy. What type of coverage does the insured have? a)special b)specific c)schedule d)blanket
B
If the insurer offers to renew the policy on different terms, how long does the policyholder have to cancel the policy without being penalized? a)30 days before the expiration of the policy b)30 days after receiving notice of the changes c)there is no time limit for the policyholder d)60 days before the expiration of the policy
B
In Nevada, to qualify to act as a surplus lines broker, a person must have been a resident, general lines producer for a minimum period of a)3 months b)6 months c)1 year d)60 days
B
In a dwelling policy, which of the following other structures would be covered? a)used by the insured to house a manufacturing operation b)rented to a neighbor for use as a private garage c)used as part of a farming operation d)used by the insured in which to operate a retail business
B
Liability imposed on one party as a result of the actions of another person is known as a)absolute liability b)vicarious liability c)comparative negligence d)strict liability
B
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of a)rebating b)misrepresentation c)concealment d)unfair claim practice
B
The homeowners policy covers collapse caused by all of the following EXCEPT a)weight of too many people attending an event hosted in the house b)foundation cracks c)weight of snow d)hidden insect or vermin damage
B
The proof of loss statement must be a)an oral statement b)in writing c)both oral and in writing d)in a videotape format
B
Under the coverage of which of the following liability policies may an insured require the insurer to defend a claim? a)personal liability b)professional liability c)auto liability d)general liability
B
What is the maximum time a binder can be effective without approval by the Commissioner? a)40 days b)90 days c)30 days d)120 days
B
Which inland marine form would provide the best protection for a dry cleaning company against loss or damage to their customer's property while in the care, custody, and control of the dry cleaners? a)vendor's single interest policy b)bailee's customer policy c)furriers block policy d)personal property coverage part
B
Which of the following persons is required to hold a producer license? a)a person who administers employee benefits b)a person who negotiates insurance contracts c)a person who creates insurance advertisements d)a person who takes messages related to claims
B
Which of the following statements is FALSE regarding motor vehicle physical damage appraisers? a)they investigate claims of physical damage to insured motor vehicle b)they do not have to be employed by any one insurance company c)they must be licensed by the commissioner d)they must post a bond of $2,500 in favor of the people of the state of Nevada
B
Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy? a)the insured would have to pay the self-insured retention limit b)the insured would be responsible for the amount required as underlying limits in the event of a claim c)it would have no effect on the umbrella policy d)the policy will be cancelled
B
Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses? a)insuring agreement b)additional coverage c)exclusions d)declarations
B
within the first 60 days of coverage under a dwelling policy, how much notice is required for the cancellation of a policy? a)5 days b)10 days c)15 days d)20 days
B
A producer who has allowed his or her license to lapse may reinstate the license without retaking the examination within what maximum time period? a)30 days b)6 months c)12 months d)2 years
C
All of the following are conditions commonly found in the insurance policy EXCEPT a)subrogation b)appraisal c)insuring agreement d)cancellation and nonrenewal
C
All of the following situations would be covered under a professional liability policy EXCEPT a)an accountant's error that inflated a bid and caused a client to lose a major account b)negligence of an architect who designed an unsafe building c)the failure of an attorney to properly defend a claim due to his personal dislike of the client d)failure of a doctor to render the quality of care that is customary in the medical field
C
All of the following statements are FALSE regarding garage physical damage coverage EXCEPT a)Autos held for sale by a dealer are listed individually in the policy b)specific causes of loss coverage is not available for physical damage coverage c)no coverage is provided for any auto stored for more than forty-five days at a location not shown in the declarations d)collision coverage is provided only for dealers
C
An auto dealer reported $500,000 worth of automobiles on its lot at the end of May to its insurer. On June 10, it received $200,000 worth of care. By June 20, the dealership sold $100,000 worth of cars. A hail storm on June 21 caused $50,000 worth of damage to the inventory. Without considering any deductibles how much will the insurer pay for damages? (round ) a)$35,700 b)$40,000 c)$41,700 d)$50,000
C
An insured has a liability policy that sets the amount for all claims that arise from a single accident at $50,000. Which type of limit of liability does this insured's policy have? a)aggregate b)split c)per occurrence d)per person
C
Coverage for medical payments under a personal auto policy applies to expenses following a covered accident that are incurred and services rendered within what maximum time period? a)90 days b)1 year c)3 year d)5 year
C
Every insurance Administrator must file a surety bond with the Commissioner which is written for an amount of at least a)$50,000 b)$75,000 c)$100,000 d)$25,000
C
In Nevada, how long must producers keep records of insurance transactions under their license? a)1 year after the commissioners examination b)2 years c)3 years after a policy expires d)5 years after a policy is issued
C
In a personal auto policy, the medical payments coverage is similar to a)bodily injury coverage, because it pays the insureds doctor bills b)bodily injury coverage, because it provides legal protection if the insured causes injuries to tohers c)accident insurance, because it pays medical expenses regardless of fault d)accident insurance, because it has the same limits
C
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)coinsurance b)premium c)deductible d)self-insured retention
C
Prior to state directed workers compensation statues being enacted, employees had a)limited payments for their work-related injuries b)guaranteed protection for their work related injuries c)to sue an employer for the "loss" and prove that the employer was at fault d)no right to sue their employers for their work related injuries
C
The Commissioner must give a reasonable notice to all interested parties as to the time, place, and purpose of a hearing within the minimum of how many days of the hearing? a)10 days b)15 days c)20 days d)30 days
C
The employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to a)30 days b)60 days c)90 days d)120 days
C
The insured with a claims-made commercial general liability policy may request 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 30 days
C
The medical payments coverage in a personal auto policy will pay reasonable medical expenses for all of the following EXCEPT a)the insureds child sustains injuries when the car she is accidentally rolls down a hill b)a friend is injured while driving the insured vehicle with permission c)the insured is injured while exiting a friends mobile home d)the insured is injured by a motor vehicle while crossing the street
C
The risk of loss may be classified as a)named risk and unnamed risk b)high risk and low risk c)pure risk and speculative risk d)certain risk and uncertain risk
C
Under the limits of insurance provision found in the Physical Damage Coverage Form in a Commercial auto policy, how much will an insurer pay to repair or replace a covered auto? a) the lesser of the replacement cost value or the cost to repair or replace a covered auto b)the greater of the replacement cost value or the cost to repair or replace a covered auto c)the lesser of the ACV or the cost to repair or replace a covered auto d)the greater of the ACV or the cost to repair or replace a covered auto
C
Under the personal auto policy, liability for bodily injury resulting from the insured's use of a non owned automobile is a)shared on a pro rata basis b)provided by the insured's policy on a primary basis c)provided by the insured's policy on an excess basis d)not covered
C
What type of damages may be awarded by the court to create disincentives that discourage behavior that is deemed highly undesirable by society? a)compensatory b)specific c)punitive d)general
C
Which of the following best expresses the purpose of a stated value contract? a)to establish the value of property subject to loss by theft or robbery b)to provide a maximum limit for which the insurance company may become liable in casualty losses c)to pre-establish the amount of coverage available for property items that are difficult to value d)to ensure that the principle of indemnification applies
C
Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract? a)indemnity b)representation c)warranty d)concealment
C
Which of the following liability policies is usually written on a claims-made form? a)personal liability b)umbrella liability c)professional liability insurance d)automobile liability
C
Which of the following statement is true concerning the special form dwelling policy? a)both coverage A and C are provided for broad form perils b)coverage A is for all-risk perils, and Coverage C is basic perils only c)coverage A is for all-risk perils, and Coverage C is the broad form perils d)Both coverage A and C are provided on an all-risk basis
C
Which of the following statements is true regarding the commercial general liability policy's Coverage C- Medical Payments? a)the coverage is liability insurance because it pays only if the insured is legally liable b)the coverage provides high limits of insurance for bodily injury losses c)the coverage is considered good will because payments are made without regard to fault d)the coverage applies to bodily injury to the named insured
C
Who is responsible for the cost of examination conducted by the Commissioner? a)The NAIC b)the policyowners c)the insurer being examined d)the division of insurance
C
With respect to auto insurance, the term owned autos includes all the following EXCEPT a)a pickup or van acquired by the named insured during the policy period b)any private passenger auto leased to the named insured for a period of more than 6 months c)a pickup or van titled to and used in the named insured's business d)any private passenger auto titled to the named insured
C
A passenger in a friend's car is injured while getting into the car. Which of the following statements would apply if both the passenger and the driver had medical payments coverage under a personal auto policy? a)the drivers policy will act in excess of the passengers policy b)the passengers policy would be primary c)both policies will share equally in the loss d)the drivers policy would be primary
D
A policy holder has an equipment breakdown policy with a $200,000 limit. If a boiler explosion causes $100,000 damage to the boiler itself, $50,000 damage to the insured building, and $30,000 of expediting expenses, how much will the insured collect under the policy? a)$180,000 b)$200,000 c)$100,000 d)$175,000
D
All of the following are additional causes of loss included in the broad form of a commercial property policy EXCEPT a)falling objects b)weight of ice, snow, sleet c)water damage d)replacement cost
D
All of the following are other coverages under the dwelling policy EXCEPT a) Other structures b) Debris removal c) Improvements, alterations, and additions d) Earth movement
D
An insurer offering private automobile policies recently increased an insured's premiums. This insurer must advise the insured of her right to request the reasons for this increase, within a few days of the expiration of her policy. How many days? a)60 days b)90 days c)14 days d)30 days
D
Commercial policies issued for a term longer than one year may be cancelled by the insurer by giving notice of cancellation a)70 days before the expiration of the policy b)30 days before any anniversary date of the policy c)45 days before the expiration of the policy d)60 days before nay anniversary date of the policy
D
Coverage under the builders risk form will end in all the following situations EXCEPT a)construction has been abandoned b)60 days after building became occupied c)the insured has sold the property d)60 days after the construction has ended
D
Crime insurance is usually a written on what basis? a)specific risk b)named peril c)closed risk d)all risk
D
Employee theft coverage may be written as a)blanket coverage b)name schedule coverage c)position schedule coverage d)any of the above
D
How many hours of approved continuing education within a 3 year period are required? a)36 b)24 c)33 d)30
D
If a named insured commits bodily injury to another named insured, which course of action may the insurer take? a)exclude coverage for the injuring party b)reduce or limit coverage for the injuring party c) reduce coverage for the injuring party's family members d)all of the above
D
In dwelling policies, automatic increase in insurance is a)automatic coverage b)coverage without additional premium c)coverage for newly acquired property d)coverage by endorsement
D
Insurance companies in Nevada must offer insureds under policies covering the use of passenger cars the option of purchasing how much coverage to pay for reasonable and necessary medical expenses resulting from an accident? a)$100 b)$5,000 c)$2,500 d)$1,000
D
Persons covered under an insurance policy, whether named or not, are known as the a)named insureds b)first named insureds c)additional insureds d)insureds
D
The business income coverage form covers consequential loss of business income that occurs when a business must suspend operations because of a direct loss which of the following terms best describes the nature of this type of coverage? a)claims made b)occurrence c)direct damage d)time element
D
Under a personal auto policy, in which of the following locations would a vehicle primarily garaged in California is covered? a)anywhere in the world b)Mexico c)only in california d)any other state
D
When other insurance is written on the same basis as a commercial property policy, the obligation of the insurer is to cover a)all of the losses b)the loss on an excess basis c)the loss on a primary basis d)a share of the loss
D
Which of the following coverages is included in an unendorsed homeowners policy? a)personal property replacement coverage b)fungi, wet or dry rot, or bacteria c)earthquake d)medical payment to others
D
Which of the following is NOT settled on an ACV basis while covered under the business property coverage form? a)property of others b)manuscripts c)works of art or antiques d)valuable papers and records
D
Which of the following risks would NOT be eligible for coverage under a homeowners policy? a)an applicant who lives in a duplex that she does not own b)an applicant who owns and lives in a duplex c)an applicant who owns and lives in a single family dwelling that also contains incidental business activities d)an applicant who owns and lives on a commercial farm
D
Who can countersign a policy issued in this state? a)an insurance broker only b)an underwriter c)a policy applicant d)an appointed and licensed agent
D
homeowners policies provide coverage for a)losses caused by off-premises power failure b)the land under the residence c)property of tenants, roomers, or boarders not related to any insured d)business property while on the residence premises
D
