Sim X
A business using its own trucks to move its own cargo would insure the cargo using a) Motor truck cargo - owners form. b) Motor truck cargo - truckers form. c) Motor carrier form. d) Trip transit coverage.
Motor truck cargo - owners form
An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of? a) False advertising b) Unfair claims c) Twisting d) Defamation
a) False advertising
In Maryland, how long is the Commissioner's term in office? a) 2 years b) 3 years c) 4 years d) Indefinitely
c) 4 years
How is the Commissioner selected for the office? a) Appointment by the Governor b) Appointment by the Department of Insurance c) Election by authorized insurers d) Public election
A) Appointment by the Governor
The pollutant cleanup and removal coverage in the businessowners policy has a limit of a) $10,000 in any 12-month period. b) $2,500 in any 12-month period. c) $5,000 in any 6-month period. d) $20,000 in any 6-month period.
a) $10,000 in any 12-month period
Because an agent is using stationery with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe? a) Assumed b) Apparent c) Express d) Implied
b) Apparent
A broker requests a hearing with the Commissioner. Within how many days of the request must the hearing be held? a) 10 b) 30 c) 60 d) 90
b) 30
Public adjusters are compensated by a) Insurance companies. b) State government. c) Federal government. d) Insureds.
d) Insureds
What is the maximum amount of a deductible on collision coverage for a damage to the insured auto in an auto insurance policy? a) $250 b) $100 c) $500 d) $50
a) $250
An insured has a special form dwelling policy written for $100,000 on a dwelling. The dwelling's replacement cost is $115,000. Fire causes $75,000 in damage to the dwelling, $15,000 damage to a separate garage, and kills 10 trees valued at $600 each. How much will the policy pay for the trees? a) $5,000 b) $10,000 c) $60,000 d) $75,000
a) $5,000 500 per tree
What is the maximum number of boarders per unit that would be allowed in the homeowners policy? a) 2 b) 3 c) 4 d) 5
a) 2 In a home it's less, dwelling is more (4)
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained? a) 3 days b) 5 days c) 10 days d) 14 days
a) 3 days
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) Arbitration
A producer's license can be reinstated retroactively it is has been expired a) For no longer than 60 days. b) For more than 60 days, but less than 1 year. c) It can only be reinstated prospectively. d) For less than 1 year.
a) For no longer than 60 days
Which authority is NOT stated in an agent's contract but is required for the agent to conduct business? a) Implied b) Apparent c) Assumed d) Express
a) Implied
An employer may satisfy the requirement of providing workers compensation insurance on their employees by all of the following methods EXCEPT a) The Monopolistic State Fund. b) Obtain coverage from a private insurance carrier. c) Obtain coverage from the Competitive State Fund. d) Self-insurance.
a) Monopolistic State Fund
If a person is using an auto with the belief that he is entitled to do so, subrogation rights under a personal auto policy would apply to all coverages EXCEPT a) Physical damage. b) Uninsured motorist. c) No-fault medical payments. d) Liability.
a) Physical damage
What method do insurers use to protect themselves against catastrophic losses? a) Reinsurance b) Indemnity c) Pro rata liability d) Risk management
a) Reinsurance
How many days after the completion of an examination must the Commissioner prepare a final report of its results? a) 30 days b) 60 days c) 90 days d) 180 days
b) 60 days
What is a premium finance company? a) A premium finance company pays premiums for large commercial clients when they surpass their grace period in exchange for fees. b) A premium finance company advances the premiums for clients in a lump sum, and in return, the client pays in monthly installments along with interest. c) A premium finance company establishes all the insurance rates for the year. d) A premium finance company is appointed by the Commissioner to monitor premium rates in the state of Maryland.
b) A premium finance company advances the premiums for clients in a lump sum, and in return, the client pays in monthly installments along with interest
The commercial general liability coverage form excludes bodily injury or property damage that the insured has assumed under any contract or agreement. However, the exclusion does not apply to certain types of contracts, as long as the injury or damage occurs a) Before the contract expires. b) After the execution of the contract. c) After the contract expires. d) Before the execution of the contract.
b) After the execution of the contract
What is a foreign insurer? a) An insurer with licensed agents who are citizens in more than one country b) An insurer with a home office in another state c) An insurer with a home office in another country d) An insurer with licensed agents doing business in other countries
b) An insurer with a home office in another state
Which of the following is NOT true regarding state required limits of liability on collision coverage? a) Collision coverage extends to rented passenger cars. b) Coverage is provided only if the insured is not at fault. c) Collision coverage provides insurance against property damage. d) Damage will be covered if an accident occurred in Mexico.
b) Coverage is provided only if the insured is not at fault
The designation symbols used in commercial auto policies can be found in which policy section? a) Conditions b) Covered Auto c) Liability Coverage d) Definitions
b) Covered Auto
Replacement cost is defined as a) Payment of the full policy limits in the event of a total loss. b) Full replacement of property at its current cost, new and without reduction for depreciation. c) The market value of property of like kind and quality. d) Full replacement of property with like kind and quality, less an allowance for physical deterioration and depreciation.
b) Full replacement of property at its current cost, new and without reduction for depreciation
Which of the following endorsements is used by individual business owners who use company vehicles for personal use rather than purchasing a personal vehicle? a) Hired autos specified as covered autos you own b) Individual named insured c) Drive other car d) Additional insured - lessor
b) Individual named insured
Which of the following perils is covered by the HO-2 and HO-3? a) War b) Sudden and accidental rupture of a heating system c) Loss due to power interruption that occurs off the premises d) Flood
b) Sudden and accidental rupture of a heating system
Medical benefits under Workers Compensation statutes are provided a) For up to $100,000 per injury or disease. b) Without limit. c) For up to $500,000 per injury or disease. d) For a certain percentage of the workers annual income.
b) Without limit
What is the maximum allowed retail value of a gift or a promotional item a producer may give to an applicant or an insured NOT to be considered rebating? a) $10 b) $20 c) $50 d) $100
c) $50
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? a) 10 days b) 3 days c) 5 days d) 7 days
c) 5 days
If an insurer nonrenews a property policy because of the risks associated with the geographic area of the policy, the Commissioner must be notified at least how many days before the nonrenewal? a) 15 days b) 30 days c) 60 days d) 90 days
c) 60 days
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) 90 days
If the subject of fraud is valued at $300, the person who committed the fraud is guilty of a) A minor violation. b) A crime. c) A felony. d) A misdemeanor.
c) A felony Anyone convicted of insurance fraud, in which the subject is valued at $300 or greater, is guilty of a felony. If the subject of the fraud is valued at less than $300, the person is guilty of a misdemeanor.
An employer may comply with Workers Compensation laws using all of the following methods EXCEPT a) Applying for and receiving approval to self-insure. b) Obtaining coverage through Maryland's competitive state Fund (Injured Workers Insurance Fund). c) Adding Personal Injury Protection (PIP). d) Purchasing Workers Compensation Insurance from a private insurer.
c) Applying Personal Injury Protection (PIP)
Bob's neighbor will not stop parking his motorcycle in Bob's rose garden no matter how many times he has been asked to quit parking there. Bob finally gets a court order requiring the neighbor to refrain from parking there. It turns out it was his neighbor's property all along. What bond was Bob required to post guaranteeing his neighbor's damages in this wrongful action will be paid? a) Bail b) Cost c) Injunction d) Attachment
c) Injunction
Who might receive dividends from a mutual insurer? a) Stockholders b) Agents c) Policyholders d) Subscribers
c) Policyholders
#2. Which of the following is NOT the consideration in a policy? a) The premium amount paid at the time of application b) The promise to pay covered losses c) The application given to a prospective insured d) Something of value exchanged between parties
c) The application given to a prospective insured
ll of the following statements are true regarding fire department service charge additional coverage under the businessowners policy EXCEPT a) This coverage is not subject to any deductible. b) This coverage provides an additional $2,500 amount of insurance. c) This coverage limit pays in place of the limit of insurance shown in the declarations. d) This coverage limit is payable in addition to the limit of insurance shown in the declarations.
c) This coverage limit pays in place of the limit of insurance shown in the declarations
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) Occurrence b) Direct damage c) Time element d) Claims made
c) Time element
What is the business auto coverage territory for? a) United States only b) United States and Mexico c) United States and its territories, Canada, or worldwide for private passenger hired autos d) Only for the specific location of the business
c) United States and its territories, Canada, or worldwide for private passenger hired autos
The Property and Casualty Guaranty Corporation is obligated to pay the full amount of any claim between $100 and $300,000 if the claim occurs within what period of time? a) 45 days after an insurer has been declared insolvent and after the insurance policy has expired b) 90 days before the policy has expired c) 180 days before the policy has expired d) 30 days after the insurer has been declared insolvent and before the insurance policy has expired
d) 30 days after the insurer has been declared insolvent and before the insurance policy has expired
Under Coverage C of a homeowners policy, the amount of insurance provided to cover personal property of the insured is a) Equal to the amount provided as Coverage B. b) Equal to the amount provided as Coverage A. c) 50% of the amount provided as Coverage B. d) 50% of the amount provided as Coverage A.
d) 50% of the amount provided as Coverage A
When does the coverage begin under the builders risk form? a) On the date the policy is issued b) On the date the policy is delivered c) On the date the premium is paid d) On the date construction starts
d) On the date construction starts
What insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk? a) Valid insurance b) Nonconcurrency c) Primary and excess d) Other insurance
d) Other insurance
Which professional liability form provides form coverage for liability arising out of malpractice, error, or mistakes made in rendering professional services? a) Lawyers professional liability b) Directors and officers liability c) Medical malpractice d) Physicians, surgeons and dentists malpractice
d) Physicians, surgeons, and dentists malpractice
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, or sleet. c) Water damage. d) Replacement cost.
d) Replacement cost