Connecticut Casualty Adjuster for All Lines

Joseph Jones purchased a new car stereo system from Dailey's Auto Enhancements. Daily's permanently installed the stereo system in the console area of the car, where he could access it easier while driving than the typical area in the dashboard. The cost of the new system, disregarding any installation costs, was $2,000. One year after installation, Joseph's car was broken into and the stereo was stolen. At this point, the ACV of the system had fallen to $1,700. Disregarding any deductible, how much will Joseph's policy pay on this claim? $1,000 $1,700 $2,000 Because the stereo was not permanently installed in the location used by the auto manufacturer, the loss would not be covered

$1,000 Part D of the Personal Auto policy provides for a limit of $1,000 for electronic equipment that reproduces, receives or transmits audio, visual or data signals that is permanently installed in an auto, but not in the location typically used by the auto manufacturer.

Fly-By-Night Construction Company has a CGL policy with coverage dates of 03/01/17 to 03/01/18. The per occurrence limit is $500,000 and the general aggregate limit is $1,000,000. The maximum that can be paid during the policy period of the insured's behalf is: $1,000,000 $500,000 $1,500,000 $2,000,000

$1,000,000

When an HO-3 is issued with a $75,000 Coverage A limit on a one-family dwelling, what is the automatic amount of insurance for Coverage B? $15,000 $75,000 $7,500 $37,500

$7,500 Other Structures (Coverage B) are automatically covered for 10% of the Coverage A limit.

If an insurer intends to cancel a personal automobile policy for an approved reason (other than nonpayment of premium) it must provide a _____ day cancellation notice to the insured with the reasons for the cancellation. 45 30 60 20

30 The insured must be provided a 30-day notice. If the person is 55 or order he or she may designate another party to receive the notice as well. If the insurer is canceling for nonpayment of premium a 10-day notice is required.

In Connecticut, if an insurer intends to cancel a personal or commercial insurance policy (including workers' compensation), how many days advance notice must be sent to the first named insured? 30 45 15 10

30 The policy may be cancelled at any time by the company by giving to the insured and any third party designated by the insured, a 30 days written notice of cancellation accompanied by the reason for cancellation.

In Connecticut, if an insurer intends to cancel a personal or commercial insurance policy (including workers' compensation), how many days advance notice must be sent to the first named insured? 30 days 45 days 15 days 10 days

30 days

Insurance binders in Connecticut are valid for _____ days. 120 90 60 45

60

Which of the following would be covered under the "products and completed operations" coverage of a CGL policy? A product falls off a shelf and injures a customer An employee injuries a customer while demonstrating how a product operates A customer injuries their hand while attempting to obtain candy from a vending machine that is located in the store A child is injured when a wheel falls off a bicycle that was assembled at the store

A child is injured when a wheel falls off a bicycle that was assembled at the store - the other three scenarios occurred at the store location and would be considered a "premises" claim, not a "products" claim

Which of the following phrases best describes a "hazard?" a condition that increases the chances of a loss the uncertainty of a loss the cause of a loss an unexpected loss

A condition that increases the chances of a loss

The type of auto body frame that is most often used in today's automobile and is a single molded unit, is known as: A universal frame A subframe A conventional frame A unibody frame

A unibody frame

What is the limit for the "Business Income" additional coverage under a standard Businessowners policy? $100,000 Actual loss sustained for up to 12 months Actual loss sustained after the time deductible, until the business has resumed normal operations The actual loss of income from the date of the damage to the end of the policy period

Actual loss sustained for up to 12 months There is no specific amount listed in the policy as the business income limit of liability. Coverage applies for the actual loss sustained for up to 12 months, even if the policy was set to expire in the meantime.

Amanda lives in a state that does not have a no-fault law that requires personal injury protection be included on every auto insurance policy. Amanda decides to take a cross-country road trip and is involved in an accident in a state with mandatory PIP. How will Amanda's automobile insurance policy respond to pay her medical expenses? Amanda's policy would adjust its benefits to comply with the no-fault state's PIP benefits Amanda's policy would deny coverage unless she added "Other States' Coverage" added to her policy by endorsement Amanda's policy would pay benefits for this "out-of-state" accident in the same way that it would pay had the accident occurred within the borders of Amanda's home state Amanda's policy would pay only if damages exceed the amount that would be paid by the no-fault state's Guaranty Association

Amanda's policy would pay benefits for this "out-of-state" accident in the same way it would pay had the accident occurred within the borders of Amanda's home state

In which of the following situations should a non-waiver agreement be used? an insured's picture window was broken by a neighbor throwing a baseball an insured's house burned to the ground an insured's house show rot damage, and it appears there is a long-term plumbing leak an insured's roof blew off in a tornado

An insured's house shows rot damage, and it appears there is a long-term plumbing leak Non-waivers should be executed when there are unresolved questions regarding coverage, limits, or both. The adjuster would be wise to present such of waiver to the claimant/insured during the initial site visit

Which of the following professional liability policies would also cover bodily injury damages? Architects and Engineers E&O Insurance agents E&O Lawyers E&O Fiduciary Legal Liability

Architects and Engineers E&O

Part F of the standard Personal Automobile policy states that the policy can be terminated within the first 60 days for any reason other than non-payment of premium if: At least 20 days notice is provided to the insured At least 30 days notice is provided to the insured At least 10 days notice is provided to the insured Another type of policy option is provided by the insured

At least 20 days notice is provided to the insured Within the first 60 days, a Personal Automobile policy can be cancelled for any reason other than non-payment of a premium if a 20-day notice is provided to the insured

Homeowners policies provide personal liability coverage that follows an insured anywhere in the world under: Coverage E Coverage A Coverage F Coverage D

Coverage E Personal liability coverage for the insured under a Homeowners policy is found in Section II - Coverage E of the Homeowners policy.

Which of the following would be covered under Section II - Liability of the Homeowner policy? Damage to rented premises occupied by the insured caused by a fire accidentally set by the insured Intentional acts of the insured Operating a dirt bike off the insured's premises Operating a 75-HP boat owned by the insured

Damage to rented premises occupied by the insured caused by a fire accidentally set by the insured Damage to property rented to, occupied by, used by or in the care, custody or control of an insured for specified perils consisting of fire, smoke and explosion would be covered. An insured would have coverage under an HO-4 if he accidentally sets fire to the apartment where he is residing.

Which of the following endorsements can be attached to the Business Auto policy to extend coverage to individuals such as the owner of the business who does not carry personal auto insurance? Drive Other Car endorsement Name Non-owned endorsement Broad form named non-owned auto endorsement Drive Away Liability endorsement

Drive Other Car endorsement The purpose of this endorsement is to provide coverage for the owner of a business that does not own a personal automobile and therefore, does not have coverage under a Personal Auto policy. The "Drive Other Car" endorsement covers this business owner when he/she is driving "other cars" not owned or leased by the business for personal use. If the owner had a Personal Auto policy, he/she would not need this endorsement to their Business Auto policy.

In which of the following situations should an adjuster consider obtaining a non-waiver agreement? when requested by an insurer when abrogation may be involved in dealing with a potential coverage dispute when directed by the court

In dealing with a potential coverage dispute When there is a question of coverage that may be disputed, an adjuster would use a non-waiver agreement that is signed by the adjuster and the insured to make clear that a known right is NOT being waived by any party while the claim investigation is performed or before the dispute is litigated.

Alternative dispute resolutions (ADRs) are procedures to help settle disputes using all of the following, EXCEPT: mediation arbitration litigation negotiation

Litigation

Under a Business Auto policy, which of the following types of physical damage loss is not covered? collision with an animal loss to radar detection equipment transportation expenses following theft of an entire private passenger auto glass breakage caused by vandals

Loss to radar detection equipment This type of equipment is usually excluded for physical damage coverage because it is normally not legal in most states to use them.

What is the main difference between arbitration and mediation in dealing with coverage disputes in the claims adjusting process? Meditation is not binding on the parties involved, but with arbitration the decision is final and binding Mediation involves on objective and neutral third party, but arbitration involves two With mediation, the decision is final and binding on the parties involved, but arbitration is not binding Arbitration is the ADR used next if negotiation does not work, mediation is only used after both negotiation and arbitration fail

Mediation is not binding on the parties involved, but with arbitration the decision is final and binding

A person takes bank deposits to the bank every day for a business. In Commercial Crime insurance terminology, this person is known as a: Messenger Custodian Cashier Manager

Messenger. A messenger has custody of the insured's property outside the insured's premises

The penalty for failure to satisfy a coinsurance requirement of a property insurance policy is: Only a portion of a partial loss will be paid No coverage will be in effect in the event of a total loss There will be no coverage in the event of a partial loss Only a portion of the policy limit will be paid if there is a total loss.

Only a portion of a partial loss will be paid If the insured's policy contains a coinsurance clause and the insured carries less than 80% of the value of the property, a penalty will occur in case of partial losses.

If the insd, covered under a Homeowners policy, suffers the loss of an article that is part of a pair or set. All of the following are options for the insurer to settle the loss, EXCEPT: repair any part to restore the pair or set to its value before the loss pay the difference between the ACV of the property before and after the loss pay for the replacement cost of the entire pair or set replace any part to restore the pair or set to its value before the loss

Pay for the replacement cost of the entire pair or set

Which symbol is used for a non-owned auto under a Business Automobile policy? symbol 9 symbol 1 symbol 5 symbol 8

Symbol 9 - used to provide coverage for non-owned autos used for the business under a Business Auto policy

Which of the following statements regarding Commercial Auto coverage is NOT TRUE? A tractor-trailer combination is included in the definition of "auto" on the Business Automobile form Owned private passenger autos are covered under the Motor Carrier form but are not covered under the Truckers form The definition of "trucker" and "motor carrier" are the same in both the Trucker form and the Motor Carrier form A motor carrier is engaged in transporting property or passengers

The definition of "trucker" and "motor carrier" are the same in both the Truckers form and the Motor Carrier form

Which of the following statements is NOT TRUE concerning Assigned Risk Plans? They are state-sponsored insurance plans Assigned Risk Plans assist those who are unable to secure automobile insurance in the standard marketplace These plans were created to randomly assign all auto policies written in a state to admitted insurers, to be sure all insurance companies can write a proportional amount of business All insurers who write automobile policies in the state are required to participate in the plan

These plans were created to randomly assign all auto policies written in a state to admitted insurers, to be sure all insurance companies can write a proportional amount of business

The Commissioner may require a waiting period not exceeding _____ before reexamining any applicant who has failed to pass any insurance licensing examination. 10 days 30 days 60 days 6 months

six months

Which of the following losses may not be determined by an adjuster? use of a rental vehicle bodily injury medical bills loss of income

use of a rental vehicle The adjuster usually advises the claimant to rent a vehicle similar to that which is damaged and submit the bills at a later date after the claim has been negotiated.

Jones Construction Company has a CGL policy with coverage dates of 03/01/17 to 03/01/18. The per occurrence limit is $500,000 and the general aggregate limit of $1,000,000. The maximum that can be paid out on the insured's behalf is:

$1,000,000

Oliver Dogwood was in an auto accident which destroyed his car. While investigating the accident, Adjuster Doright found that Mr. Dogwood paid $1,000 for the vehicle. After checking with others he found the same vehicle with an asking price of $1,700, a retail price of $2,150 and a dealer price of $1,750. What amount will Mr. Dogwood receive? $1,950 $2,150 $1,000 $1,700

$2,150 - the insured is required to pay retail price plus sales tax

Under the Business Auto policy, what is the limit for transportation expenses when the insured has suffered a theft loss of a private passenger type vehicle? $20 per day subject to a maximum payment of $600 $15 $15 per day subject to a maximum limit of $450 $25

$20 per day subject to a maximum payment of $600

Henrietta has purchased a Personal Automobile policy and she sees the following under Part A:$25,000/$50,000/$30,000. Which of the following statements is TRUE regarding these numbers? $25,000 represents the limit for property damage liability $50,000 represents the limit of liability paid for bodily injury to one third-party involved in an accident $25,000 represents the limit of liability paid for bodily injury to all third-parties involved in an accident $30,000 represents the limit for property damage liability

$30,000 represents the limit for property damage liability

If the Commissioner finds an intentional violation of the privacy regulations regarding the sale or disclosure of personal medical information, the Commissioner may impose a penalty of up to _____ for each violation. $2,000 $10,000 $5,000 $2,500

$5,000 - If the Commissioner finds that a person intentionally violated the privacy laws, a penalty of $5,000 for each violation may be imposed, but not to exceed $50,000 in aggregate. If the Commissioner finds that there has been a violation of the prohibitions against the sale or disclosure of identifiable medical record info, the Commissioner may impose a penalty of up to $20,000 for each violation, but not to exceed $100,000 in the aggregate for multiple violations

In additional to or in lieu of suspension or revocation of an adjuster license for cause, the Commissioner may impose a fine not to exceed: $50,000 $5,000 $10,000 $25,000

$5,000 - the Commissioner, after reasonable notice to and hearing of any licensee, may suspend or revoke a licensee's license. In addition to or in lieu of suspension or revocation, the Commissioner may impose a fine not to exceed $5,000

Which of the following is the amount of additional coverage on the standardized Homeowners forms for a Fire Department Service Charge? $1,000 $500 $250 $750

$500 $500 is paid under the standardized Homeowners forms for a Fire Department Service Charge. This is an "additional coverage" and a deductible does not apply to this amount.

The standardized Homeowners policy forms provide an additional coverage for loss of trees, shrubs and other plants. The maximum limit for this coverage is: $500 for any one tree, shrub, or plant $250 for any one tree, shrub, or plant $750 for any one tree, shrub, or plant $1,000 for any one tree, shrub, or plant

$500 for any one tree, shrub, or plant This additional coverage on all the Homeowners forms provides for coverage up to 5% of Coverage A, or a maximum of $500 for any one tree, shrub or plant.

Nixon Construction Company carries a CGL policy that has a $500,000 per occurrence limit, $1,000,000 general aggregate limit and a per person medical payments limit of $25,000. Employees cause $200,000 property damage and $400,000 bodily injury when persons are injured and property is damaged in connection with a construction project. Two of the employees suffer medical expenses of $15,000 each. How much will the insurer pay on behalf of Nixon Construction? $500,000 $630,000 $610,000 $600,000

$500,000 The most the policy can pay is the occurrence limit of $500,000. The employees are not covered under medical payments. They would collect under workers compensation coverage. Remember that the policy cannot pay more than the per occurrence on any one claim. Therefore, in this question, the insured would have to pay the remaining $100,000 of this claim because the insurer will only pay $500,000 of this $600,000 claim.

Insurance binders in Connecticut are valid for ______ days 120 90 60 45

60

Insurers intending to nonrenew a property or liability policy (including workers' compensation) on a commercial or personal risk in Connecticut, must send the named insured a notice of nonrenewal at least _____ days in advance of the expiration date of the policy. 60 45 30 90

60

Insurers intending to nonrenew a property or liability policy (including workers' compensation) on a commercial or personal risk in Connecticut, must send the named insured a notice of nonrenewal at least _____ days in advance of the expiration date of the policy. 60 45 30 90

60 The insured is entitled to a 60-day nonrenewal notice.

What is the time limit provided under the basic extended reporting period under the CGL claims-made form for the reporting of claims that occurred before the expiration date of the policy? 60 days to report the claim and 5 years of coverage for the reported claims 60 days to report the claim and 2 years of coverage for the reported claims 180 days to report the claim and 5 years of coverage for the reported claims 120 days to report the claim and 3 years of coverage for the reported claims

60 days to report the claim and 5 years of coverage for the reported claims The Basic ERP (Extended Reporting Period) provides coverage for claims made after the policy expiration date. The insured has 60 days following expiration to report the occurrence and then 5 years of extended coverage for the claims reported

Kim owns an Art studio where she offers painting lessons and sells painting and art supplies. She carries a Commercial General Liability policy to cover her business. Which of the following situations would be covered by Kim's CGL insurance? Mitch slips and falls at Kim's home on her slippery kitchen floor and sustains an injury to his back Kim drives her Dodge sedan into the picket fence that surrounds the floral shop across the street from her studio. The fence is destroyed A client slips and falls on wet paint that was dripped on the floor in Kim's art studio. The client breaks her arm. Kim is injured when she falls from a stepladder at work in her art studio.

A client slips and falls on wet paint that was dripped on the floor in Kim's art studio. The client breaks her arm. The CGL policy is designed to cover "premises liability" and business liability exposures. This would cover the client who slipped and fell in the studio. Mitch, who fell in her kitchen would be covered under Kim's Homeowner policy, assuming she has one. If she carries a Personal Auto policy, it would pay for the damage to the fence at the floral shop. Kim's injuries from the fall off the stepladder could be covered under a Workers Compensation policy assuming Kim has purchased one.

A business adjusting claims in Connecticut without a license is subject to: A fine of $10,000 A fine of $2,000 and imprisonment for one year, or both Denial of future licensure A fine of $500

A fine of $2,000 and imprisonment for one year, or both

What is the potential penalty that may be imposed by the Connecticut Insurance Commissioner for information obtained under false pretenses? A fine of not more than $50,000 License revocation A fine of not more than $20,000 License suspension and a fine of not more than $20,000

A fine of not more than $20,000 Any person who knowingly and willfully obtains information concerning an individual from an insurance institution, agent or insurance-support organization under false pretenses will be fined not more than $20,000.

A warranty in insurance is best described as which of the following? A guarantee that the statements made by the applicant are completely true and untrue statements can void the coverage A statements made that represents the honest recollections of the applicant A material misrepresentation which is an untrue statement A statement that does not involve concealment nor misrepresentation

A guarantee that the statements made by the applicant are completely true and untrue statements can void the coverage A warranty is a statement made in an insurance contract by the insured when the validity of the insurance contract depends on the literal truth or statement. The parties to the contract mutually intend that the policy will not be binding unless the statement is true.

Which of the following buildings is considered to be vacant? A house whose occupants have been on vacation for over 90 days A commercial office building in which 50% of the square footage is not leased A house with no furnishing or occupants for over 60 days A commercial building used only for storage purposes with no employees stationed there

A house with no furnishings or occupants for over 60 days A vacant building is empty. A building with furnishings but no occupants is merely unoccupied. Vacancy is a more severe physical hazard than unoccupancy. Most standard policies restrict or reduce coverage for vacancy that persists longer than 60 days.

Which of the following vehicles is NOT "mobile equipment" according to the CGL definitions? a self-propelled snow plow a bulldozer a roller used for road resurfacing a forklift

A self-propelled snow plow A self-propelled snow plow could be a pickup truck with a plow on the front. This is an exception to the type of mobile equipment covered for liability under a CGL policy. These are to be covered under a Commercial Auto Policy.

Which of the following would be eligible for coverage under a Businessowners policy? a branch bank a neighborhood tavern an auto body shop a small retail store

A small retail store The BOP is intended for small, owner-operated light businesses. Bars and taverns, auto body and auto repair shops are excluded from the BOP. The branch bank would not meet the general criteria due to the large crime exposure.

Which of the following statements is NOT true regarding the insurer's request for an "examination under oath" when investigating a claim? An EUO is usually requested by the insurer while investigating a first-party claim An EUO is requested by an insurance company only when they feel the insured's account of the claim circumstances are questionable The insured has a duty under their policy to submit to an EUO if the insurer requests it An EUO is usually requested by the insurer while investigating third-party claims to determined the truthfulness of the claimants account of their injuries

An EUO is usually requested by the insurer while investigating third-party claims to determine the truthfulness of the claimant's account of their injuries is not true because EUOs are used only with first-party claims

An insurance company formed under the laws of Canada would be referred to as ______________ by any state Insurance Department in the United States. An alien insurer A domestic insurer A foreign insurer A surplus lines insurer

An alien insurer An insurance company formed under the laws of any country other than the United States, would be referred to as an alien insurer by any state Insurance Department within the United States.

Subrogation may follow which of the following events? An insured collects from her insurance company for damages caused by a third party firefighters damage the insured's property while fighting a fire nature damages the insured's property an insured causes damage to her own property

An insured collects from her insurance company for damages caused by a third party

Which of the following would be covered under a Personal Umbrella policy? an insured who is sued for failing to provide a professional service as promised a loss assessment made against the insured as a member of her neighborhood's property owners assocation an insured who commits an intentional act of violence to protect his family an insured who commits an intentional act of physical abuse

An insured who commits an intentional act of violence to protect his family There is an exception to the exclusion for "intentional acts" committed by an insured to protect persons or property. Therefore, an insured who commits an intentional act of violence to protect his family would be covered.

Sally's home is covered under an HO-3 policy. Coverage F of that policy will pay medical expenses for which of the following? Anyone who is invited onto Sally's property and is injured while there Sally's son or daughter, while they are away at college Sally and all her resident relatives Sally's roomers and/or boarders

Anyone who is invited onto Sally's property and is injured while there Coverage F -- Medical Payments to Others under a Homeowners policy provides coverage for an injury occurring on the insured premises, to a non-resident invitee.

Which of the following is the BEST explanation as to the reason insurance policies are called "unilateral contracts?" because the insurance contract will only restore one part to the contract to his or her previously held financial position because insurance contract is based on the insured's personal insurable interest because the insured is the only party to the contract that is required to pay a premium because the insurance company is the only party to the contract that can be sued if they do not meet the terms

Because the insurance company is the only party to the contract that can be sued if they do not meet the terms - an insurance policy is unilateral because only one party is legally-bound to perform its part of the agreement

Employment practices liability insurance:I. Covers claims generally excluded by workers compensation, such as wrongful discharge or sexual harassment.II. Can be added as an endorsement to a directors and officers policy. Both I and II I only II only Neither I nor II

Both I and II EPL covers employment claims not arising out of workers compensation, including wrongful discharge, sexual harassment and discrimination, It can be sold as an endorsement to D&O or a stand-alone policy.

Homeowners policies provide personal liability coverage that follows an insured anywhere in the world under: Coverage E Coverage A Coverage F Coverage D

Coverage E Personal liability coverage for the insured under a Homeowners policy is found in Section II - Coverage E of the Homeowners policy.

All of the following is a function of the standard mortgage clause in a property insurance policy, EXCEPT: Protects the rights (insurable interest) of the mortgagee, even if the insured intentionally causes a loss to the mortgaged property Guarantees that the mortgage payments will be made by an insurance policy, if the insured does not make the payments Allows the mortgagee to pay the premium if the insured refuses to do so Allows the mortgagee to submit a proof of loss if the insured refuses to do so

Guarantees that the mortgage payments will be made by an insurance policy, if the insured does not make the payments The standard mortgage clause, does NOT guarantee that the mortgage payments will be made by an insurance policy if the insured does not make the payments.

Which of the following Homeowners forms is intended to cover the possessions of the insured who is leasing an apartment? HO-8 HO-5 HO-3 HO-4

HO-4 - designed to cover the personal property of insured's who are renting their place of residence

Amelia has suffered a covered collision loss to her vehicle. The insurer requires that her vehicle be repaired at a repair shop of the insurer's choice. The insurer: Is guilty of an unfair claims practice act Can make this request Waives the deductible, if any, in this case Can usually get the work done for less and can help to reduce insurance costs

Is guilty of an unfair claims practice act The insurer can recommend a repair shop, but cannot require that a particular shop be used

Which of the following statements is TRUE regarding the HO-6 form? It does not cover the insured for liability It excludes coverage for loss of use It covers the walls, floors, and ceilings of dwelling unit It covers the siding on the outside of the condominium unit

It covers the walls, floors, and ceilings of dwelling unit

What is the purpose of tort law? To apply criminal penalties to those who commit a tort that causes bodily injury To require the tortfeasor to carry insurance that will cover any injuries they may inadvertently cause that may result in a lawsuit It provides a tort victim with a civil remedy to pursue a claim for compensation in the courts To provide a victim with a way to pursue a claim for damages in a court of law when a contract is breached

It provides a tort victim with a civil remedy to pursue a claim for compensation in the courts

The principle of indemnity is illustrated by which of the following? Restores an insured to the same condition enjoyed before a loss Allows an insured to profit from a loss Limits recovery to actual cash value Requires an insured to assign any right of recovery against a third part

Restores an insured to the same condition enjoyed before a loss

Insurance companies often outsource a large percentage of their processes to Third Party Administrators (TPAs). All of the following facts about TPAs are true, EXCEPT: TPA can collect premiums from insured TPAs must be licensed and renew their licenses annualy TPAs can adjust and process claims TPAs assume the risk of the policies they handle

TPAs assume the risk of the polices they handle The insurance company still retains the risk on the policies that a TPA may handle

Under the "Money Orders and Counterfeit Money" insuring agreement of a standard Commercial Crime form, all would be covered, EXCEPT: Taking a forged check from a customer in exchange for merchandise Receiving counterfeit currency in a sale Making change on a counterfeit bill Cashing a forged money order

Taking a forged check from a customer in exchange for merchandise

An insurance binder is best described as: A large bound volume of rules, rates, and forms A rate manual supplied by one of the rating organizations A temporary agreement to pay a claim, pending the finalization of the investigation Temporary, short-term evidence of coverage

Temporary, short-term evidence of coverage Prior to policy issuance, an insured may need evidence of insurance in writing. This is the purpose of the insurance binder. Once the policy has been issued, the binder is void.

Symbol 23 is designated on the insured's Garage Coverage form. This indicates that: That owned autos other than private passenger autos are covered That owned private passenger autos only are covered That only specifically described autos are covered That nonowned autos used in the garage business are covered

That owned private passenger autos only are covered

Claims paid under which of the following will reduce the aggregate limit under the Commercial General Liability policy? The Per Occurrence Limit The Liquor Liability Limit The Pollution Liability Limit The Retroactive Date

The Per Occurrence Limit Liquor and Pollution Liability Coverage is excluded under the CGL. Retroactive date "triggers" coverafe and has nothing to do with the policy limits and how much will be paid on the loss.

The insured is covered under an HO-6 form. The Coverage A limit is $500,000. The insured also owns a separate three-car garage adjacent to the condominium building worth $100,000. Which of the following statements is true regarding coverage for the garage? The garage is not covered under the HO-6 form The garage is covered under Coverage B - Other Structures The garage is covered for 10% of the $500,000 limit as an additional amount of insurance The garage is covered as part of the $500,000 Coverage A limit

The garage is covered as part of the $500,000 Coverage A limit. Under an HO-6 form, structures owned solely by the insured, other than the residence premises, but located at the residence premises, are covered as part of Coverage A. The garage is part of the Coverage A limit chosen by the insured.

An insured carries a liability policy and an umbrella policy. The verdict in a personal injury liability suit was higher than the insured's underlying liability policy's limit of insurance. In this situation: The insured, the insurance company providing the insured's underlying policy and the company providing the insured's umbrella policy must agree on an appeal and share the expenses of that appeal Neither the insured's underlying insurer nor the umbrella insurer may appeal without the insured's agreement The insurance company providing the insured's umbrella liability policy can appeal the case at its own expense even if the insured and the company providing the underlying policy do not appeal The case cannot be appealed by any of the parties

The insurance company providing the insured's umbrella liability policy can appeal the case at its own expense even if the insured and the company providing the underlying policy do not appeal

The Homeowners policy on Dylan's $110,000 home is voided when he intentionally burns the house to the ground. Consequently, he does not receive the settlement check he was hoping to when he committed the arson, but he still has an outstanding mortgage balance of $76,000. How does this event affect the mortgage lender? The insurer pays the mortgage lender $76,000 The insurer pays the mortgage lender $110,000 The insurer pays the mortgage lender $55,000 - half the total amount of the loss Because the arson voided the policy, the mortgage lender is paid nothing

The insurer pays the mortgage lender $76,000 The insured cannot intentionally jeopardize the mortgage lender's rights. Therefore, the insurer will pay the mortgage lender the $76,000 mortgage balance.

Which statement is true about the limits of liability under a Commercial General Liability policy? The limits of liability are the maximum amounts to be paid in the event of a covered loss The limits of liability are not part of reserves for pending claims If the limits of liability are insufficient, they can be increased at the time of loss The limits of liability represent payments made under the Supplementary Payments coverage

The limits of liability are the maximum amounts to be paid in the event of a covered loss

Which of the following statements is TRUE regarding a Government Crime policy? The policy cannot be written to cover employee theft The policy can be written only on a Loss Sustained basis The policy can be written only on a Discovery basis The policy permits the limit for employee theft to apply on either a "per occurrence" or "per employee" basis

The policy permits the limit for employee theft to apply on either a "per occurrence" or "per employee" basis

All of the following are reasons that an adjuster should keep very detailed log notes, EXCEPT: To assist in determining the negligent parties To assist in determining if the claim is fraudulent To produce notes that will support a fraudulent denial of claims To be used in case of a future arbitration, mediation, or litigation proceeding

To produce notes that will support a fraudulent denial of claims The adjuster's log notes are used to determine negligent parties, to assist in detecting fraud, to become a part of the claims file, and to be used in future proceedings. The log notes are not intended to produce a fraudulent record to deny a claim.

All of the following statements are true regarding Public Law 15 (The McCarren-Ferguson Act), EXCEPT: Under the law, the federal government retains the right to approve insurance forms The law assigned authority to the federal government to regulate fair labor standards The law left insurance licensing up to the states Under the law, the states regulate ethical conduct of its insurance licensees

Under the law, the federal government retains the right to approve insurance forms

Which of the following terms is used to describe a contract where the insurance company is the only party to the contract that is legally bound to perform its part of the agreement? Aleatory Conditional Absolute Unilateral

Unilateral An insurance policy is one-sided or unilateral because only the insurance company is legally bound to perform its part of the agreement. If an insured pays a premium and a loss occurs, the insurer is legally bound to pay for the loss under the terms of the policy. However, insureds are not legally obligated to pay premiums. If an insured stop paying premiums, the insurance company can cancel the contract but it cannot sue the insured for breaking the contract. On the other hand, if an insured fails to comply with conditions and duties specified in the contract, the insurance company may deny an insured's claim.

The liability section of the Business Auto policy excludes coverage for pollution damage except in certain circumstances. Which of the following statements describe a circumstance where pollution would NOT be covered by the Business Auto policy? When there is bodily injury caused in the same accident that caused the pollution loss When a covered truck leaks contaminating anti-freeze from its radiator because the radiator cap was accidentally left off When a covered truck leaks contaminating anti-freeze from its radiator as a result of an accident When there is property damage caused in the same accident that caused the pollution loss

When a covered truck leaks contaminating anti-freeze from its radiator because the radiator cap was accidentally left off For the leaking antifreeze to be covered, the leak must have been caused by an accident

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. Reinsurance is insurance for insurers. Rather than retain all of a risk, companies have established reinsurance contracts with reinsurance companies. Part of the risk is ceded to the reinsurer, therefore, some of the risk is the responsibility of the reinsurer

Under a Crime insurance discovery form, a loss is "discovered": When the insured first becomes aware that a loss has occurred or gives notice of an actual claim of a covered loss When the person who committed the crime is discovered and arrested When the insured becomes aware of the exact details of the occurrence When the stolen property is discovered and returned to the insured by the authorities

When the insured first becomes aware that a loss has occurred or gives notice of an actual claim of a covered loss

All of the following would be considered "uninsured motorists", EXCEPT: a motorist driving without liability insurance a motorist who is covered for liability, but does not carry enough coverage to meet the state's financial responsibility requirements a motorist driving with coverage up to the required state financial responsibility limits for liability, but not high enough to pay the claims for an at-fault accident a motorist with liability coverage with an insurance company that has become insolvent

a motorist driving with coverage up to the required state financial responsibility limits for liability, but not high enough to pay the claims for an at-fault accident

Which of the following is NOT covered by liability coverage under a Homeowner policy? a snowmobile in a park a golf cart on a golf course a runaway lawnmower motorized wheelchair

a snowmobile in a park The only owned recreational vehicle that is covered while off the insured's covered location, is a golf cart while playing golf. Vehicles pertaining to the service of the premises, or for use by the handicapped (such as a wheelchair) are covered

Under the Coverage A insuring agreement of the commercial general liability policy, the bodily injury or property damage must be caused by: an intentional tort only a sudden and accidental any activity an occurrence

an occurrence - the CGL policy provides coverage on an occurrence basis which also includes accidents

The Connecticut Insurance Commissioner is: Elected by the citizens of Connecticut Appointed by the state attorney general Appointed by the governor Elected by the state legislature

appointed by the governor

When the Personal Liability Supplement is purchased as a monoline policy, all of the following are required conditions, EXCEPT: assignment liberalization death bankruptcy

bankruptcy - there is not a condition in the Personal Liability policy outlining what the insured must do in case of bankruptcy

All of the following are excluded under the Commercial Crime "Inside the Premises - Theft of Money and Securities" insuring agreement, EXCEPT: dishonest acts of customers fire vandalism accounting errors

dishonest acts of customers - fire, vandalism, and accounting errors are specifically excluded in this insuring agreement

An application for a nonresident license will not be granted unless the applicant: resides 25 miles from the Connecticut border holds an equivalent license from the applicant's home state moves to Connecticut within one year of licensing holds an equivalent license from a state other than the applicant's home state

holds an equivalent license from the applicant's home state

Which of the following is an incorrect statement regarding insurance binders in Connecticut? insurance binders must be in writing Insurance binders can be legally made orally or in writing Binders are effective for 60 days Binders no longer remain in force when the policy is issued providing the same coverage

insurance binders must be in writing - binders can be made either orally or in writing for a period of up to 60 days

Which of the following statements is NOT correct regarding uninsured motorist coverage in Connecticut? coverage can be reduced by the insured in writing, but not lower than the state's minimum required limits of liability it can be rejected by the insured in writing it must include underinsured motorist coverage higher limits must be offered to the insured

it can be rejected by the insured in writing - the coverage is mandatory and may not be rejected

A loss reserving method that establishes aggregate reserves for all claims for a single line of insurance is known as: average value method roundtable method formula method loss ratio method

loss ratio method A loss reserving method that establishes aggregate reserves for all claims for a single-type of insurance is known as the loss ratio method.

A legal term describing an intentional act that is illegal or morally wrong, and contributes to the injury of another person is: negligence a crime a tort malfeasance

malfeasance - legal term describing an intentional act that is illegal or morally wrong, that contributes to the injury of another person

Except for certain types of bonds, an insurer in Connecticut cannot limit the time for suits against the insurer to less than: three years four years two years one year

on year - no insurance company doing business in Connecticut may limit the time during which any suit may be brought against it to less than one year from the time when the loss insured against occurs

Except for certain types of bonds, an insurer in Connecticut cannot limit the time for suits against the insurer to less than: three years four years two years one year

one year No insurance company doing business in Connecticut may limit the time during which an suit may be brought against it to less than one year from the time when the loss insured against occurs

The Businessowners policy excludes coverage for all of the following, EXCEPT: property of others in the insured's care, custody, or control loss due to power failure explosion of steam boilers, steam pipes, and steam turbines wear and tear

property of others in the insured's care, custody, or control Property of others in the insured's care, custody, or control is NOT excluded by the policy.

A person, firm, or corporation that, for compensation, acts on behalf of an insured in negotiating the settlement of certain claims for loss or damage to property is known as a/an: independent adjuster specialty adjuster public adjuster staff adjuster

public adjuster

Meg has been in very good health in the past 3 years. She has been exercising, her blood pressure is at a perfect level and her cholesterol is the envy of all her friends. Because Meg is feeling so healthy, she decides to cancel her health insurance policy. This is an example of which of the following risk management methods? risk control risk transference risk retention risk avoidance

risk retention Meg is retaining the risk that she may experience a major health issue and would have to pay the medical bills herself

Which of the following would be covered under Business Auto Symbol 7? Hired autos only Non-owned autos Specifically described auto only Any auto

specifically described auto only The purpose of Symbol 7 on Commercial Auto policies is to cover only specifically described vehicles as opposed to covering any vehicle. This occurs when an insurer may agree to cover all of the owner's vehicles except certain types. A vehicle used to transport pollutants or explosives is an example

A policy provision that prescribes a method for resolving a disputed claim regarding the value of property or the amount of a property loss is known as: the arbitration clause the appraisal clause the valued policy clause the mediation clause

the appraisal clause The appraisal clause in a property policy prescribes the method for resolving a disputed property claim.

The named insured's spouse is considered to be an "insured" under all of the following named insured designations, EXCEPT: joint venture individual trust partnership

trust the spouse of the named insured is not covered as an "other insured" in a trust

Under "Coverage A - Building" of the BOP form, which of the following is NOT covered? completed additions, and additions under construction all permanently installed fixtures, machinery, and equipment outdoor fixtures valuable papers and records

valuable papers and records Valuable papers and records are NOT included in Coverage A - Building. If business personal property is insured there is a limited amount of coverage ($10,000) provided under the extensions of coverage. Permanently installed fixtures, machinery, and equipment, outdoor fixtures, and completed additions and additions under construction are all considered "buildings" by definition