EXAM PASSED
An insured decides to store some heavy boxes in the attic. While moving them around, he accidentally drops a heavy box that crashes through the ceiling, causing $1,000 of damage. The insured's HO-3 policy form will pay
$1,000 minus the deductible.
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
The Earthquake and Volcanic Eruption Endorsement added to Commercial Property policies consider all earthquake shocks as one earthquake if they occur within what maximum time period?
168 hours
An insured with a homeowners policy has removed property from the insured location to protect it from loss that could be caused by a covered peril. The removal coverage applies for
30 days
Who is a representative of 1 or more insurance companies, and must be appointed by each company they represent?
Individual licensee
The common policy condition is a modular part combined with other parts to create the contract. The common policy condition section contains provisions that are applicable to all lines of coverage that may be included in the policy. Which of the following provisions would be found in the common policy conditions section of the policy?
The first named insured may cancel the policy at any time by giving written notice to the insurer.
What is the purpose of a disclosure letter?
To protect the consumer
If the actual values exceed the limit of insurance, the businessowners policy (BOP) contains a seasonal increase provision that automatically increases the limit of insurance for business personal property by
25%
The removal coverage that is included in the broad form dwelling policy will cover property temporarily removed from the premises to protect it from damage for how long?
30 days
A surplus lines broker's records of procured coverage are open to examination by the Commissioner for how long after the issuance of the coverage?
5 years
When may the Insurance Commissioner suspend, revoke, or refuse to renew a license?
After a hearing which determines a licensee committed violations of the Code
A producer is not acting on behalf of any insurers. Which of the following is true regarding the producer's appointment?
Appointment is not required.
Who will transport the property of anyone who hires them?
Common Carriers
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
Consideration
In a commercial package policy, who may cancel the policy in writing and make changes to the policy with the consent of the insurer?
First Named Insured
For what purpose must licensees keep all records covering issued policy information?
Inspection by the Commissioner
Persons covered under an insurance policy, whether named or not, are known as the
Insureds
An insured attends an auction at an estate sale. She bids on an original painting by Picasso and acquires it. Under the personal articles floater of her homeowners policy, what coverage is offered on her new painting?
It will be covered for its actual cash value or 25% of the scheduled limit for up to 90 days
A house insured under a dwelling policy has been vacant for 70 consecutive days. Which of the following statements is true?
Loss by vandalism and malicious mischief is excluded.
The Gramm-Leach-Bliley Act was passed to
Protect private customer information filed with a financial institution.
Which of the following does a producer have the authority to do?
Receive an application
What type of information would be found in a policy's insuring agreement?
Renewal Dates
Basic property insurance means insurance against direct loss to any property, caused by perils as defined and limited in the
Standard fire policy and extended coverage endorsement.
When the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss, the coverage is said to be written as
Stated amount
Upon suspending or revoking a broker's surplus lines license, the Commissioner may also
Suspend or revoke all other licenses of the same individual.
A surplus lines insurer is considered as having received the insured's premium payment when
The insured pays the premium to the surplus lines broker that placed the insurance.
When is coverage under the Delaware FAIR Plan effective?
When the Plan accepts the application
