Simulated Exam Missed Questions

An insured has a standard HO-4 policy with a $30,000 limit of coverage for personal property. While he was traveling, a fire in his hotel destroys clothes ad luggage with a replacement value of $10,000 and jewelry with a replacement value of $10,000. Disregarding any deductible, and assuming a depreciation of 20% has occurred in both properties, what amount is the insurer obligated to pay?

$16,000

What is the smallest deductible for uninsured motorist coverage in this state?

$250

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?

$3,000

If a policy is cancelled due to nonpayment of premium, how many days advance notice must the insurer give the policyholder before cancellation?

10 days

Under business owner policy section 1, if an insurer wants to nonrenewal a policy for nonpayment of premium, how many days before the expiration date must the insurer notify the mortgage holder?

10 days

Within the first 60 days of coverage under a dwelling policy, how much notice is required for the cancellation of a policy?

10 days

What is the maximum period of time a temporary license can be in force?

15 months

Within how many years of a loss may an insured bring a lawsuit against an insurer, according to the dwelling policy?

2 years

Insurers must update copies of its rates, plans, systems, and underwriting rules every

2 years.

If the actual value exceeds the limit of insurance, the business owners policy (BOP) contains a seasonal increase provision that automatically increases the limit of insurance for business personal property by

25%

Under workers compensation laws, injured workers are entitled to how many weeks of treatment from the date of the accident?

400 weeks

If the premium for a policy will be increased more than 15%, how much warning must the insured get?

45 days

Rates for private passenger motor vehicle insurance on file with the Commissioner are considered approved after

45 days

In the event of theft of a covered vehicle, transportation expenses coverage in a personal auto policy will cover the expenses starting how many hours after theft?

48 hours

IF a policy has been in effect for at least 60 days or is due for renewal, a cancellation may only be effected for which of the following reasons?

A change in the risk that substantially increases the hazard insured against.

With respect to auto insurance, the term owned autos includes all of the following EXCEPT

A pickup or van titled to and used in the named insured's business.

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?

Additional coverage

When transacting business in this state an insurer formed under the laws of another country is know as a

Alien insurer

Which of the following must an insurer obtain in order to transact insurance within a given state?

Certificate of authority

What are two major sections of commercial crime policies?

Commercial entities and government entities.

What is the title of the chief officer of the Department of Insurance?

Commissioner

A builders risk form is most often written as which of the following?

Completed value form.

Which of the following risks is eligible for coverage under a business owners policy?

Condominiums

Which of the following positions is responsible solely for offering advice on insurance policies (for a fee)?

Counselor

Which of the following statements is true concerning the special form dwelling policy?

Coverage A is for all-risk perils, and coverage C is for the broad form perils.

Which of the following would be covered under a business liability insurance policy?

Damage to a watercraft while on shore at the insured's premises

Which of the following best describes an insurance company that has been formed under the laws of this state?

Domestic

When does a producer's license expire?

Every 2 years on the last day of the producer's birth month.

Expenses that an organization would not have incurred if business interruption had not existed are known as

Extra expenses.

An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming?

Foreign

All of the following statements describe the concept of strict liability EXCEPT

It is imposed on defendants engaged in hazardous activities.

What type of property would NOT be covered under the dwelling policy special form Coverage A - Dwelling?

Land on which the dwelling is located.

A nonresident agent is allowed to conduct insurance transactions in Georgia because his home state allows Georgia residents to transact insurance business in it. This is known as a

Reciprocity agreement

After a loss, an insured covered by a business property coverage is NOT required to

Reconstruct for the insurer a timeline of activities leading up to the loss for use in an investigation.

What type of information would be found in a policy's insuring agreement?

Renewal dates

Insurance is the transfer of

Risk

Which of the following is included under physical damage coverage of a personal auto policy?

Sound reproduction equipment permanently installed in the covered auto

Which of the following is an example of a producer being involved in an unfair trade practice of rebating?

Telling a client that his first premium will be waived if he purchases the insurance policy today.

Which of the following is NOT the consideration in a policy?

The application given to a prospective insured.

Surety bonds are written for a definite limit called

The bond penalty

If the commissioner is not able to serve due to disability, resignation, or death, which of the following will happen?

The chief deputy will serve until the next election.

The claims-made trigger is based on which of the following?

The date the claim is first made.

The occurrence form trigger is based on which of the following?

The date when injury or damage occurs.

Which of the following statements is true concerning a bonded contractor who defaults on a construction performance contract?

The oblige may engage another contractor and then seek reimbursement from the surety.

If an insurance premium is paid by the policyowner to the agent, and the agent fails to remit that premium to the insurer, which of the following statements is true?

The policy will not lapse since payment to the agent is the same as a payment to the insurer.

Which of the following is an example of a producer's fiduciary duty?

The trust that a client places in the producer in regard to handling premiums.

What method of premium computation relates an employer's losses, payroll, and premiums to the rating bureau's classifications of operations?

experience modification factor.

The homeowners policy covers collapse caused by all of the following EXCEPT

foundation cracks

A property insurance policy that insures a commercial building on a replacement cost basis includes the ordinance or law coverage endorsement. This endorsement will cover all of the following expenses EXCEPT

ordinance with which the insured was required to comply prior to the loss.

Under the personal auto policy, liability for bodily injury resulting from the insured's use of a nonowned automobile is

provided by the insured's policy on an excess basis.

It would be considered unfair discrimination to ask an insurance applicant about which of the following and then use that information as a rating factor to determine insurability?

sexual orientation

I the event of a claim under a commercial general liability policy, the insured has all of the following duties to insurer EXCEPT

submitting to a medical exam when requested.

All of the following are supplemental payments included in the liability section of a personal auto policy EXCEPT

up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident.

The insured with a claims-made commercial general liability (CGL) 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 information

within 45 days