allstate
QUESTION: Blake is covered by a Homeowners policy with a $50,000 Coverage C limit. Disregarding any deductibles, what is the most Blake can collect if his $1,500 boat is stolen from the insured premises?
$1,500
Which of the following is the most the Arizona Guaranty Fund will pay for the return of unearned premium on a covered claim?
$10,000..
What is the standard minimum limit of liability for Coverage E -- Personal Liability coverage on Homeowners policies?
$100,000 per occurrence..
Heather's house is fully insured with a DP-3 with a limit of $85,000. One day, the house is struck by lightning, and despite the fire department's efforts, burns to the ground. She still had a balance of $20,000 left on her mortgage at the time of the fire. What is the maximum indemnification that would go to Heather, the fire department, and her mortgage lender respectively?
$65,000; $500; $20,000. (The maximum payable for the loss is the $85,000 policy limit which would be split at $20,000 for the mortgage lender and a $65,000 check for Heather. The policy also contains an additional coverage of $500 for fire department service charges. This is paid in addition to the policy limits. There is no mention in the question of the deductible amount so you do not assume there is one in answering this question.)
Collin suffered a work-related injury on the morning of February 5th and was off work completely until he returned to work on full duty on February 19th. Collin had worked for his employer for four years and was paid $42,125 per year. Collin's state sets the TTD rate at 66 2/3rd percent of the average weekly wage. The state sets the maximum compensation rate at $420 per week and the waiting period at 3 days retroactive after 10 days. Collin was not paid for working on February 5th, so how many days of TTD compensation is Collin entitled to receive?
14.
Insurers in Arizona must pay Homeowners claims within ______ days of reaching an agreement with the insured.
30 days..
The insured owns a 20-foot fishing boat with a 50-horsepower motor. Which of the following policies would be best suited to cover the loss of the boat while it is on a lake?
A Boatowners/Watercraft policy.
All of the following injuries occurring on the job would probably be deemed compensable, EXCEPT:
A cerebral hemorrhage occurring at work and caused from years of high blood pressure..
Which of the following types of insurance companies is a non-profit organization?
A fraternal benefit society.
Which of the following losses would be covered by Part D of a standard Personal Auto policy providing both "Other Than Collision" (Comprehensive) and "Collision" coverage?
A front tire blows out in a high-speed head-on collision, which also causes extensive damage to the vehicle. .
While inspecting a recently insured building, an insurance company representative notices a loose handrail on a stairway. When writing to the agent, the company official would refer to this situation as which of the following?
A hazard.
Which of the following could be considered "your covered auto" under a standard Personal Auto policy?
A newly acquired car reported to the insurer
The aircraft physical damage (hull) deductible is normally expressed as:
A percentage of the value of the aircraft..
Which of the following types of insurance companies is known as a "nonparticipating company" because they do not pay their policyholders a dividend?
A stock insurance company.
A couple has volunteered to cook at special events for their church. The church is concerned that one of these volunteers might be injured in the kitchen and wants to protect them in case of an accident. The church maintains workers compensation coverage for its maintenance personnel. What should the church do to provide coverage?
Add the Voluntary Compensation Endorsement to the workers compensation policy
When are Workers Compensation benefits in Arizona retroactive to the date of the injury?
After 14 days of continuous disability
An "admitted insurer" in any given state could include all of the following, EXCEPT:
An "admitted insurer" in any given state could include all of the following, EXCEPT:
All of the following would be eligible for coverage by the Business Pursuits endorsement to the Homeowners policy, EXCEPT:
An architect employed by "Architects Are Awesome", who draws up plans for a client, but has incorrectly drawn the dimensions for the home, causing it to collapse and cause bodily injury.
Which of the following would be considered an "incidental occupancy" under a Homeowners policy?
An art studio located in the named insured's home, where she also holds occasional painting classes.
Which of the following circumstances would NOT be an injury considered to "arise out of and in the course of" the employment?
An employee was injured during a lunch break in the factory parking lot..
The Homeowners policies allow for the attachment of the Personal Injury endorsement. Which of the following exposures would be covered under this endorsement?
An insured's oral statements to others that harmed the reputation of another person..
In Arizona, an insurance institution or insurance producer must provide a notice of information practices (privacy practices) to insureds with renewing policies:
At least annually during the continuation of the relationship with the policyholder..
When the Personal Liability Supplement is purchased as a monoline policy, all of the following are required conditions, EXCEPT:
Bankruptcy
The Part B - Medical Payments coverage under a standard Personal Auto policy will cover the insured if he/she is injured while a passenger on a:
Bus(Personal auto medical coverage is available to the policyholder or a family member (resident relative) injured while occupying, or as a pedestrian, struck by a motor vehicle or trailer designed for use on public roads. It also covers any other persons while they are occupying your motor vehicle. It does not cover injuries sustained while riding in vehicles not intended for use on public roads such as trains, subways and airplanes.)
Which of the following is NOT considered to be a "contract of insurance" in Arizona?
Contracts providing fire protection services.
The Home Day Care Coverage endorsement imposes a policy year aggregate limit for liability and medical payments coverage combined. The amount of this limit:
Corresponds to the Coverage E limit shown on the Declarations page of the policy..
The Permitted Incidental Occupancies endorsement deletes several exclusions listed on the Homeowners forms. Which of the following is an exclusion that is added by this endorsement?
Coverage for bodily injury to an employee arising out of the business described in the schedule on the endorsement..
Which of the following is NOT one of the five types of general liability exposures?
Errors & Omissions..
Which of the following is not covered by the supplementary payments section of a Commercial General Liability policy?
Expenses for first aid at the time of an accident..
An insured has purchased BAP physical damage coverage against specified causes of loss. Protection applies to all of the following perils, EXCEPT:
Falling objects.
Fernando is a railroad worker covered under the Federal Employers Liability Act (FELA). He has sustained an injury on the job, which of the following must be true in order for Fernando to collect on a claim?
Fernando must prove that his employer's negligence caused his injury..FELA requires that the employee prove negligence against the employer and the comparative negligence standard is used to award damages.
All of the following statements are TRUE regarding the perils of the Homeowners forms, EXCEPT:
Fire or lightning is a named peril covering the buildings and other structures under an HO-4 form..(Fire or lightning is NOT named peril covering the buildings and other structures under an HO-4 form because this form does not cover the building or structures, it only covers the personal property of renters and tenants.)
A department store has a large inventory of costume jewelry and watches. No single item is valued for more than $100.00. A customer steals most of the items and flees the scene. What theft coverage would be provided by an unendorsed standardized BOP policy?
Full limit of Coverage B.(An unendorsed BOP provides theft of jewelry and watches up to the full contents limit if the value per item does not exceed $100.00. For high-end jewelry and watches, the policy provides a maximum theft limit of $2,500 for the entire theft loss. Please keep in mind that these limitations would not apply to losses from the other insured perils.)
A guest on vacation deposits cash and traveler's checks in the hotel safe deposit box located behind the front desk. When the guest attempts to retrieve them, the box is empty. What coverage is required to cover this loss for the hotel?
Guests' property endorsement.
A church has had the woodwork in the building refinished and new stain and varnish has been applied. The workers placed the rags and brushes that were used to apply the varnish in a small closet and closed the door, creating the possibility of spontaneous combustion. Which of the following terms best describes this condition?
Hazard.
The "period of restoration" for the Extra Expense coverage included on the Business Income form is:
Immediately following the direct physical damage..
Which of the following statements is TRUE regarding the DP-2 cause of loss form?
It automatically includes the EC perils, V&MM coverage, and the broad form perils..
Which of the following statements is NOT TRUE regarding Trailer Interchange coverage?
It covers damage to a trailer under the policy of the trucker who owns the trailer but was not in possession of that trailer at the time of the loss
The Watercraft Endorsement to the Homeowners policy provides:
Liability and Medical Payments coverage that would otherwise be excluded under the Homeowners policy.
Garagekeeper's liability coverage excludes all of the following losses, EXCEPT:
Loss to a high-value audio system permanently installed in a covered auto. .
QUESTION: Charles' wife Mary has a company car furnished to her through her job. One day, Charles runs out of the wax he is using to polish his boat and he decides to go out to the store and get more. Mary's company car is parked behind Charles' car in the driveway, so he grabs Mary's keys and drives her car to the store. On the way back home, Charles has an accident in which he is at fault, and bodily injury and property damage are the result. Which of the following statements is TRUE regarding how this claim will be settled?
Mary's company policy will pay first, and Charles' policy will also pay, but on an excess basis. .
All of the following statements are true regarding the coverage of mobile or trailer homes under a Dwelling insurance policy, EXCEPT:
Mobile or trailer homes can be owner or tenant occupied..Mobile or trailer homes can be insured under the DP-1 (no other Dwelling forms) only if they are owner-occupied, they cannot be tenant-occupied.
An applicant for insurance has been advised by his insurer that something adverse appeared on his investigative consumer report. The information is in error. The applicant may:
Obtain the name of the reporting agency from the insurer and correct the error.
All of the following statements are TRUE regarding the Broad Theft coverage endorsement to a Dwelling policy, EXCEPT:
Off-premises coverage can be purchased by the named insured for a tenant's personal property..
All of the following items have a special limit of liability for Coverage C of the Homeowners forms, EXCEPT:
Outdoor furniture..
An "other insurance" clause is included in insurance policies to deal with the problem of:
Overinsurance..(This clause is also called the "apportionment clause" or the "pro-rata share" clause. This prevents the problem of over-insurance that would occur if each policy paid up to its limit of liability.)
The standard Personal Automobile policy provisions state that the insurance company has subrogation rights against any person permitted to use a covered auto, under all coverages, EXCEPT:
Part D..
PS&D Liability policies include coverage for which of the following?
Partnership, Association or Corporation Professional Liability
"Experience rating" provides employers with the incentive to
Prioritize safety and control hazards in the workplace.
All of the following statements about Financial Institution bonds are correct, EXCEPT:
Provides third-party coverage for the negligent acts of employees..
The Motor Carrier Act of 1980:
Requires trucking operators to file proof of liability insurance..
The common conditions of a Commercial Package policy:
States that to properly rate the policy, the insurer has the right to examine the books and records of the insured company.
A 100-year flood is an example of which of the following types of risk?
Static risk.
Under Ben Green's personal auto policy, each of the following would qualify as a "family member" EXCEPT:
Susan Green, Ben's wife. Susan maintains a separate residence although she and Ben are not divorced..
Gena purchased a policy to cover her home for personal use. Recently, she has been conducting business from the home and has hired several employees. She also has several clients per day coming to the home for business purposes. When Gena's insurer finds out about the additional exposures she has introduced into her home, they decide to take action. Which of the following actions is Gena's insurer most likely going to take?
Suspend her policy until she moves the business out of her home.
Gino owns a pizza restaurant and has hired drivers to deliver pizzas to customer's homes in their own vehicles. His restaurant carries a standard Businessowners policy and a Commercial Automobile policy. One evening, one of Gino's hired drivers has an accident and injures other people. Those who were injured in the accident sue Gino's Pizza for damages. Which of the following statements best indicates how the claim will be handled
The Commercial Automobile policy will respond to the claim
The National Flood Insurance Program is managed by:
The Federal Emergency Management Agency.
Which of the following Commercial Automobile forms would be used to cover a limousine for hire?
The Motor Carrier Coverage form
Which of the following statements is TRUE regarding the National Flood Insurance Program's Preferred Risk Policy?
The NFIP Preferred Risk policy is offered to home and apartment dwellers who reside in areas of low to moderate flood risk..
Mr. Jones purchases a blender at a discount store. He brings it home, plugs it in and it malfunctions causing the house to catch fire. The fire destroys the blender, the home and its contents. It also causes bodily injury. Which of the following is NOT covered under the Commercial General Liability policy?
The blender..
Coverage B of the Ordinance or Law Endorsement to a Commercial Property policy covers:
The cost to demolish and remove the undamaged portion of the building, if that destruction must occur because of an ordinance or law requirement..
Which of the following statements is TRUE regarding the auto dealers' physical damage coverage under the Garage policy?
The coverage is provided by a blanket limit for covered autos.
Which of the following insurance marketing or distribution systems includes agents that are hired as actual employees of the insurance company?
The direct writer system.
When the Employee Theft insuring agreement is selected as part of a Crime insurance policy and coverage is provided on a named scheduled basis, this means:
The employees covered are listed by name..
Which of the following statements concerning the Limited Fungi, Wet or Dry Rot, or Bacteria Coverage Endorsement to the Homeowners policy is true?
The endorsement is used to add coverage to the property and/or liability sections of a Homeowners policy..
All of the following statements are true regarding the cancellation or nonrenewal of an auto policy in Arizona, after it has been in effect for 60 days or more, EXCEPT:
The insurer cannot cancel for nonpayment of premium..
If the Navigational Limits or Lay-Up period shown on the Declarations page of a standardized Yacht policy is breached because of something out of the control of the insured:
The insurer must be notified within 10 days after the breach and any additional premium that is due must be paid.
Which of the following statements is NOT TRUE regarding the Dwelling Under Construction endorsement to a Dwelling policy?
The limit the endorsement will pay at any given time in the construction process is 25%, 50%, or 75%..
The actual "loss" that is covered by the "Extortion - Commercial or Government Entities" endorsement to a Crime policy includes all of the following, EXCEPT:
The loss of the named insured's reputation when he doesn't pay the extortionists' demands for cash and the extortionist reveals the insured's extramarital affair on social media..
A property insurance policy provision that protects the interests of an entity that has extended credit to, or leased chattel property to the insured is known as:
The loss payable clause
Under the DP-3 special form, which of the following would be covered?
Theft of outside lighting attached to the dwelling.
Which of the following statements is CORRECT regarding fidelity bonds?
They are two-party contracts between the employer and an insurance company..
Which of the following statements about Excess Liability insurance policies is FALSE?
They can be written to broaden the coverage of the underlying liability policy..
The law that prohibits individuals from transacting insurance without written consent from the governing authorities if they have been convicted of a felony involving dishonesty is:
Title 18 of the United States Code (USC) Section 1033
Which of the following would be covered by the Earthquake Endorsement to a Homeowners policy?
Tremors that accompany a volcanic eruption..
Making distinctions in the premium rates charged for insurance between insureds or property having similar risk characteristics is an example of:
Unfair discrimination.
Which of the following most accurately describes reinsurance?
When an insurance company buys insurance for some of the risks for which it has issued coverage..
Commercial inland marine policies require the insured to submit a signed, sworn statement of loss:
Within 60 days of the insurer requesting it..
To be covered under a workers' compensation policy, the last exposure to the conditions causing bodily injury by disease must occur:
Within the policy period.
The coverage territory for "products" coverage to apply under a Commercial General Liability policy is BEST DESCRIBED by which of the following statements?
Worldwide coverage is provided as long as the product is manufactured or sold in the covered territory and any lawsuit regarding the claim is brought within the coverage territory of the policy.
Personal property that is covered under the Personal Property Replacement Cost Endorsement of a Homeowners policy is damaged and a claim has been filed. The replacement cost of the property at the time of the loss is $2,500. The full cost to repair the property is $2,000. The Coverage C limit of the Homeowners policy is $8,000. No special limits apply to this property and there is no limit applied to the type of property being claimed. Which of the following is the amount that will be paid under the endorsement?
$2,000..(The endorsement will pay the smallest amount of the replacement cost at the time of the loss, the full repair cost, the Coverage C limit, any applicable special limits, or the limit that applies to the type of property being claimed.)
The additional coverage on the Building and Personal Property coverage of a Commercial Property policy for electronic data provides _________ for the cost of replacing and restoring electronic data that has been destroyed or corrupted by a covered cause of loss.
$2,500 in the aggregate..
Maci has $500 cash destroyed by fire in her covered home. She files a claim under her standard Homeowners policy. How much will the policy pay on this claim?
$200.
What is the maximum amount payable for bail bonds under the "supplementary payments" provided by Part A of the Personal Auto policy?
$250
Telemarketers who disregard the National Do Not Call Registry and place calls to consumers who are listed there may be subject to:
$40,000 per call..
Which of the following property would be excluded from coverage for loss under Coverage C of the Homeowners policies?
A valuable baseball card collection owned by the named insured's son that is covered under a separate personal articles floater. .
Anna is walking through the park one day while unwrapping an ice cream sandwich. It was a windy day, and the ice cream wrapper was covered with partially melted ice cream. Anna doesn't want to look for a trash can to throw away the wrapper so she simply throws it down. The wind takes the wrapper across the park and drops it to the ground just in time for Ulysses to ride onto it with his unicycle. The melted ice cream on the wrapper causes Ulysses' unicycle to slip out from under him and he falls backward, striking his head on the pavement. Several witnesses saw Anna throw the ice cream wrapper into the wind, so Ulysses sues her for his medical bills. Ultimately, Anna was not proven to be negligent and her insurance company did not have to pay damages to Ulysses. What is the most likely reason for the court's finding?
Anna could not have foreseen that the act of throwing her ice cream wrapper into the wind would have resulted in the bodily injuries to Ulysses
All of the following are covered under the Limited Fungi, Wet or Dry Rot, or Bacteria Coverage endorsement, EXCEPT:
Fungi that are in a product that is intended for consumption.
Gavin, the named insured under a Personal Auto policy, his daughter Tabitha, and two of her friends are riding in the covered auto when Gavin accidentally runs a stop sign, striking another vehicle. Everyone in Gavin's vehicle was injured as well as the driver and two passengers in the other car. Who would be covered for their injuries under Part B of Gavin's policy?
Gavin, Tabitha, and Tabitha's friends..
Which of the following is NOT a coverage of the Truckers form?
Medical payments..
Darryl is a worker who is injured in the United States and brings a lawsuit against his employer. All of the following are locations where Darryl is permitted to bring the suit, EXCEPT:
Mexico (US, Canada, Puerto Rico)
All of the following situations involve misrepresentation, EXCEPT:
Michael manages an insurance agency and posts the sales numbers of all agents publicly each month, to promote competition..
Cameron has his home covered under a Homeowners policy and his limit for bodily injury is $100,000. He also purchased a Personal Umbrella policy with a $1,000,000 limit of liability. Cameron is sued and a judgement was made against him for $500,000. To trigger his Umbrella policy, his Homeowners policy must pay $100,000, but he finds that the insurance company from which he purchased his Homeowners policy has become insolvent. How will the Umbrella insurer pay the claim (disregarding any retention limit)?
The Umbrella policy will not become primary when the insurer carrying the underlying insurance becomes insolvent, but will pay the
When Symbol 48 is indicated on a Truckers form:
Physical damage to a non-owned trailer is covered when the insured trucker is liable under a written interchange agreement.
Marcus has two Commercial Property policies covering his warehouse. Policy A is the primary policy and has a $200,000 limit, and Policy B is an excess policy with a $100,000 limit. After a fire causes $140,000 damage to his warehouse, how will each of Marcus' policies respond (disregarding any deductible)?
Policy A will pay $93,333 and Policy B will pay $46,667..(The question specifies that Marcus has suffered a PROPERTY loss. "Primary" and "Excess" insurance only comes into play with LIABILITY losses. With PROPERTY losses the OTHER INSURANCE clause is triggered. When there are two or more property policies covering the same risk, each policy pays its share of the loss, equal to its share of the total insurance in force. Policy A has 67% of the insurance in force ($200,000 is 67% of the total insurance in force, which is $300,000) and therefore, it will pay 67% of the $140,000 loss, which equals $93,333 and Policy B will pay the difference.)
Which of the following statements regarding Commercial Auto coverage is NOT TRUE?
The definition of "trucker" and "motor carrier" are the same in both the Truckers form and the Motor Carrier form..
The named insured is aware that his Business Auto policy provides transportation expense in the event of total theft of an insured private passenger vehicle. While the sales manager is attending a seminar in a neighboring state, his company car is stolen on March 10. Since his hotel is located 10 miles from the seminar site, he rents a car that same day. The insurance company pays the insured for the theft loss on March 20 after the police department had recovered the vehicle on March 17. The car had been burned and was a total loss. The insured turned in rental costs of $20/day for 11 days and mileage expense of 800 miles at 30 cents per mile. How much will the insurance company pay for these expenses?
$160. (First, the insured will not be paid for a rental car until after 48 hours has elapsed. Second, the transportation coverage will cease once the vehicle has been returned to use or the insurer pays for its loss. From March 10th, when the car was stolen to March 20th when the insurance company paid for the loss is 10 days. If we subtract the 48-hour waiting period, the insured will be entitled to 8 days' of rental car expenses at $20 per day or $160 total. There is no coverage for the mileage expenses.)
Willie's Widgets has leased a business location for a term of 10 years. In the seventh year of the lease, the location is destroyed by fire. As luck would have it, Willie had purchased "Leasehold Interest" coverage as part of his Commercial Package policy. All of the following would be covered for Willie, EXCEPT:
The damage that Willie caused to the parking lot by bringing large, heavy rigs onto the lot, causing the asphalt to buckle..
A Personal Automobile policy provides liability coverage on a single limit basis for $100,000. A covered accident caused by Mr. Jones involves a $75,000 liability judgment to Mr. Allen for his injuries and $25,000 liability judgment for the damage to his car. In addition, $20,000 in legal bills are incurred defending the insured. The company will pay:
$120,000. (Legal expenses are in addition to the limit of liability. The single limit covers both bodily injury and property damage liability. Therefore, the policy will pay the $100,000 in damages and the cost to defend the insured in the lawsuit for a total of $120,000.)
Ellie's Engineering, Inc. has several warehouses and it is necessary for employees to transport different items between the warehouses, depending on what products are being manufactured at any given time. One day Bill, Karen, and Josh were required to load several containers of an explosive chemical onto a truck to transport it across town to another warehouse. Karen knew that the chemical must be handled carefully to prevent it from exploding, but she did not refuse to move the containers nor did she indicate to Bill and Josh that the chemical was dangerous. After loading the containers, Josh is moving the truck out of the loading zone and negligently backs it into a brick wall, causing an explosion, injuring all three workers. Bill died from the injuries several days after the accident. Which of the following statements most accurately describes the common law defense(s) that Ellie's Engineering might use to defend themselves against a lawsuit filed by Karen?
The assumption of risk and the fellow worker doctrine only..(Ellie's Engineering may assert that Karen assumed the risk by knowing the danger and not refusing to load the chemicals. Ellie's might also assert the fellow worker doctrine due to Josh's negligence in causing the explosion. Ellie's would not assert the contributory negligence doctrine because she did not commit the negligent act of backing the truck into the brick wall, causing the explosion.)
