XCEL Final Exam

Under Trailer Interchange Supplementary Payments, the max amount for traffic bonds is?

$0

The standard Deductible of a Dwelling policy is

$500

If a cybersecurity event occurs, a licensee must notify the director of insurance within

10 business days

An individual applying for a Michigan resident producer license must have completed the required pre-licensing education within __ months of license application

12

The required minimum limits for automobile liability coverage in Michigan are

20,000/40,000/10,000

Michigan requires that a licensee complete ___ hours of continuing education on the subject of ethics every reporting period

3

The additional coverage of the Commercial Building and Business Personal Property Form protects property removed to protect it for further loss for up to how many days

30

When Angela's property insurance policy was canceled after 90 days because the insurer discovered a misrepresentation on the application, she received

30 days advance notice

What is the length of time for a midi-tail under the Basic Extended Reporting Period of a CGL?

5 years

In a state that has rules a injured party cannot be more than Half at fault for their own injuries to collect damages from a negligent part is known as

50% rule

Which of the following statements pertaining to Medical Payment Part C of the CGL is False

A person has to establish the liability of the insured before medical benefits will be paid under the contract

D has a training business......

Additional Insured

All of the following is CORRECT about Market Value EXCEPT

An insured's home valuation is based upon purchase price of the home

Which of the following losses would be covered under ANY crime coverage form?

An insurer provides legal expenses to a company who is suing someone that forged checks

Which of the following types of insurers limits the exposures it writes to those of its owners?

Captive Insurer

J has a policy that pays a maximum single dollar amount for property damage and death or bodily injury. Which limit of liability does J's policy have?

Combined Single Limit

Any changes of address by a licensee requires notice within 30 days to which of the following

Commissioner

An insurance application requires an applicant to make a full, accurate disclosure of the risk factor involved. Using this criteria, an insurance policy is considered what type of contract?

Contract of utmost good faith

As regards personal protection insurance coverage, automobile insurance carriers may consider

Earned income

Power Surge Retail has just learned that one of its merchandise employees has stolen an entire shipment of brand new DVD players. The type of crime policy that would cover Power Surge Is

Employee Dishonesty

M owns a parking garage and has coverage that states, "We will cover losses regardless if you are legally liable for the loss" this no fault ideology will be found under

Excess direct coverage

According to ISO guidelines, which of the following construction will have the highest rating against fire?

Fire Resistive

Which of the following conditions does qualify for coverage under a flood policy

Flooding in a widespread area

H builds a three flat building that he will rent out to tenants and is the least fire resistant construction available. Under ISO construction guidelines, H's building would be classified as

Frame

J owns an antique, historic home.....

Functional Replacement Cost

Liability arising of the premises, operations, products, and exposure to independent contractors in regards to a business that services or sells auto would be covered under which form?

Garage Operations - Other than covered autos

Which of the following statements are NOT true regarding the limited fungi, wet or dry rot , or bacteria coverage

HO 04 26 endorsement is used with HO 03 forms

Which of the following statements are NOT true regarding the limited fungi, wet or dry rot bacteria coverage

HO 04 26 is used with HO3 forms

All of the following are covered under Garagekeepers form Physical Damage Coverage EXCEPT

Hail

Which of the following is considered to be an event or condition that increases the probability of an insured's loss?

Hazard

When does the duty to defend clause end

If the limit of liability is exhausted

The unwritten authority given to a producer to carry out necessary incidental acts of the agency agreement is called

Implied authority

The endorsement changes the Intentional Loss Exclusion

In the case of fire losses due to arson, the endorsement only excludes payment to the insured responsible for loss

Under which circumstance may a deferred insurance commission be paid to an individual?

Individual was a licensed producer at the time of the sale

Effective date of coverage, all endorsements and schedules can be found in the ______ pages of a Workers comp policy

Information

B has a property policy and would like to know the perils are covered. B should read the

Insuring Clause

In what ways are insurance policies said to be aleatory?

Involves the potential for the unequal exchange of value

All of the following statements about the Supplemental Extended Reporting Period Endorsement are true EXCEPT

It extends a midi-tail to 10 total years instead of only 5 years

Insurance companies determine risk exposure by which of the following

Law of large numbers and risk pooling

What is known as the immediate specific event causing loss and giving rise to risk?

Peril

Which of the following endorsements adds Property Protection Insurance to a personal automobile policy?

Property Protection Coverage - Michigan

Which of these is the BEST example of misrepresentation?

Providing incorrect, misleading, incomplete materially untrue information in the license application is considered an act of misrepresentation

Which endorsement allows to coordinate their health insurance and personal injury protection

The Personal Injury Protection Coverage - Michigan

Authorized insurers may terminate a producer's authority to represent them with respect to home insurance for all of the following reasons, EXCEPT

The geographic location of the insurance producer's home insurance business

Heartbeat hospital has been sued by a patient for giving the wrong medicine......

The insured

Which of the following statements regarding the Second Injury Fund is correct?

The last employer pays any benefits solely related to the 2nd dismemberment. Then the second injury fund pays for the permanent disability benefits.

Which of the following statements about NFIP deductibles is true?

There is a deductible applied to the building and another to the contents under both the emergency and the regular programs

J owns a business that is run out of a marina and he is required to have both state and federal workers comp insurance

U.S. Longshore and Harbor Workers Comp Act

Under a DP-2 Broad Form, which of the following is NOT a broad peril

Vandalism

which of the following commercial building and personal property form perils is covered by broad form but not basic

Weight of snow ice or sleet

In which situation could the producer of an insurer be personally liable

When the producer performs an act which is prohibited in the agency contract

Protection and indemnity insurance protects against which of the following losses?

While trying to save damaged cargo, a ship's crew gets repeatedly it with waves which causes the crew to become ill

Which of the following statements regarding the filing of workers comp claim is correct?

Within 2 years from the date that one knew or had a reasonable belief, that the disease was work-related

Af aftermarket crash part is defined as

a replacement part for an external non-mechanical part

In the Michigan Insurance Code, Chapter 45, insurance fraud defines financial loss as all of the following EXCEPT

additional premiums

An insurer operating in the U.S. but headquartered outside the U.S. is

an alien insurer

License and permit bonds

are required by many municipalities before a contractor can work in an area

To non renew a property insurance policy the insurer must provide the named insured

at least 30 days prior notice

Defamation occurs when a producer

circulates, a false, or malicious statement, as to the financial condition of any insurer

The insurer's obligation to pay a claim depends on whether the insured or beneficiary has complied with all policy conditions. This makes the policy a

conditional contract

When Harry and his insurance company disagreed about the dollar value of his claim, they

each chose an appraiser, who then chose an umpire

Endorsement HO 04 55 covers

earthquake

The primary difference of how employee theft is covered under commercial crime employee insurance versus government crime employee coverage is

employee theft is covered as a per loss basis but government can be covered under both a per loss and per employee basis

When an agent does not promptly turn over funds received when acting as an agent, it is evidence that he has violated his responsibility as a

fiduciary

Free from Particular Average Coverage

frees the shipper from minor losses

None of the following listed workers are subject to Workers Comp requirements EXCEPT

local and state government workers

A "repair cost policy" is a home insurance policy in which the insurance carrier bases the coverage

on the property's market value

False arrest, malicious prosecution and slander would be considered

personal injury

In a property insurance contract, the declarations state

premium amount

All of the following are covered under directors and officers coverage EXCEPT

punitive damages

B has a large warehouse for his tool and die business....

supplementary additional payments

The Insurance Guaranty Fund protects an insured in the event of

the insurer's insolvency

What is the purpose of the Michigan Property and Casualty Guaranty Association

to pay covered claims in cases where property and casualty insurance companies have become insolvent

Under personal watercraft insurance, the insurer will pay for

when the insured driving a boat accidentally harms a swimmer who then has medical and surgical costs

In which situation could the producer of an insurer be personally liable?

when the producer performs an act which is prohibited in the agency contract

According to. the conditions of the homeowners policy, the insured must submit a signed Proof of Loss form to the insurance company

within 60 days of the insurer's request