FINAL EXAM
A. Appraisal
1/100 Which of the following is the procedures would the insured use to settle a dispute with the insurer over the value of covered property in a claim? A. Appraisal B. Subrogation C. Audit D. Pro rata Liability
A. The difference between the negligent driver's coverage and the insured's underinsured motorist coverage.
10/100 Under the underinsured motorist limit, how much will be paid on a claim providing the insured can prove his or her claim for damages? A. The difference between the negligent driver's coverage and the insured's underinsured motorist coverage. B. The limit of the insured's uninsured motorist coverage. C. The insured's medical limit coverage if purchased. D. The full limit of the insured's coverage less his or her self-insured deductible.
D. All of the responses are correct
100/100 Which of the following is true regarding personal property floaters? A. It is blanket coverage for personal property by category. B. Coverage is written on an all risk basis. C. It cannot be purchased to insure golf carts. D. All of the responses are correct
C. Georgia FAIR Plan
11/100 Whenever an insurer gives notice of intent not to renew a homeowners policy, or gives notice of cancellation for any reason other than nonpayment of premium, it is also required to provide notice to the insured of possible eligibility for insurance through the: A. Georgia Assigned risk Plan B. Georgia Guaranty Insurance Association C. Georgia FAIR Plan D. Farm Bureau Association
A. Personal articles floater.
12/100 Which of the following should an insurance agent recommend to a prospective insured who owns substantial amounts of valuable silverware, jewelry, and furs? A. Personal articles floater. B. Homeowners policy. C. Personal effects floater. D. Extended coverage endorsement.
A. Premises and Operations Liability coverage.
13/100 While examining a hand saw at Elmer's Hardware, a customer accidentally cuts her hand. Elmers' liability exposure would be addressed by which of the following coverages? A. Premises and Operations Liability coverage. B. Products and Completed Operations Liability coverage. C. Contractual Liability coverage. D. Owners and Contractors Protective Liability coverage.
not c
14/100 Which of the following is NOT true regarding the binding of insurance risks in Georgia? A. Binders must be made in writing B. Binders can be made orally C. Binders can be extended beyond 90 days with approval from the Commissioner D. Binders are not valid beyond 90 days
A. A detached garage.
15/100 When insurance is written on a dwelling form each of the following types of property would be insured under Coverage A (dwelling coverage), EXCEPT: A. A detached garage. B. An attached laundry room. C. A central air conditioner. D. Materials in the yard intended for a new addition to the home.
A. Broken windows and damage to a door
16/100 Which of the following losses would be covered under a crime policy's "Inside the Premises - Robbery or Safe Burglary of Other Property?" A. Broken windows and damage to a door B. Theft of money and securities C. Fire damage to the insured building caused by a burglar D. Vandalism to a trailer on the insured premises caused by a burglar
D. File a claim against the auto insurer and advise the agent that there is the possibility of an errors and omissions claim for failure to properly notify the insurer of the acquisition of an automobile.
17/100 You purchase a new car and, as the terms of your auto policy require, you contact your agent and notify him of the purchase. He states to you, "No problem, you're covered." Two months later you are involved in an accident. When you report the claim to your agent he says, "Oh no, I forgot to notify the company! I'm afraid you're not covered." You can: A. File a claim with the insured's auto insurance carrier to cover the insured's damages as a result of the accident and provide defense and payment for damages claimed by the other driver if it is claimed the insured was negligent. B. File a claim against the agent's errors and omissions coverage for damages if the auto insurer denies coverage for the auto accident because the agent failed to notify the automobile insurance carrier. C. File a claim against the other driver if the facts of the accident support this action and negligence is proven on the part of the other driver. D. File a claim against the auto insurer and advise the agent that there is the possibility of an errors and omissions claim for failure to properly notify the insurer of the acquisition of an automobile.
not d
18/100 Which of the following is NOT consideration in an insurance policy? A. The premium paid by the insured B. The application given to a prospective insured C. Something of value exchanged between parties D. The promise to pay covered expenses
D. Completion bond.
19/100 Contractor Joe has borrowed funds from a bank in order to finance a construction project. A surety bond which guarantees the lender that the contractor will use the borrowed funds to finish the contract free and clear of liens is known as a: A. Bid bond. B. Performance bond. C. Labor and materials bond. D. Completion bond.
A. Legal expenses
2/100 Which of the following is NOT covered under most commercial crime policies? A. Legal expenses B. Employee theft C. Computer fraud D. Forgery and alteration
B. Deny the claim
20/100 A person insured under the basic dwelling form DP-1 causes damage to the fence on his property amounting to $200 while driving his own auto. The policy will: A. Pay the $200 as a supplementary payment B. Deny the claim C. Pay the claim after applying the appropriate deductible D. Subrogate against the auto insurer
A. It only applies to all losses included within the products and completed operations hazard.
21/100 Under the CGL policy, each of the following statements are true about the general aggregate limit, EXCEPT: A. It only applies to all losses included within the products and completed operations hazard. B. All losses under the premises and operations subline are subject to the limit. C. It is an annual limit that is reinstated at the beginning of each new policy year. D. Once the aggregate has been exhausted, the insurer has no further obligation for additional claims.
A. Makes the seller responsible to the buyer until the goods have been delivered as agreed.
22/100 What does the phrase "free on board destination" mean? A. Makes the seller responsible to the buyer until the goods have been delivered as agreed. B. An ocean term referring to jettison. C. The title to the goods to be shipped is transferred to the buyer at the shipping point. D. The term is in reference to a cruise ship agreement for passengers.
A. I, II, and III only
23/100 Which of the following are additional coverages under a Businessowners policy with the named peril form attached? I. Debris removal. II. Pollutant cleanup and removal. III. Exterior glass. IV. Collapse A. I, II, and III only B. I and II only C. III and IV only D. I, II, III and IV
A. An insured location.
24/100 Under the personal liability of Section II of a Homeowner policy, a cemetery plot is considered to be: A. An insured location. B. The insured premises. C. A non-insured location. D. A non-insured premises.
A. Employees in connection with bodily injury to third parties
25/100 Which of the following are also insureds in connection with conducting the insured's business under a commercial umbrella policy? A. Employees in connection with bodily injury to third parties B. Employees in connection with bodily injury to another employee C. Employees participating in a recreational athletic event not sponsored by the employer D. None of the responses are correct
A. Guarantee faithful performance of the elected or appointed public official.
26/100 Public Official bonds are meant to: A. Guarantee faithful performance of the elected or appointed public official. B. Guarantee financial obligations. C. Assure the employees are faithful in their jobs. D. None of the responses are correct.
A. Responsible for the acts of his or her staff members.
27/100 The Georgia Insurance Commissioner is: A. Responsible for the acts of his or her staff members. B. Is not responsible for the acts of his or her staff members. C. Avoids all responsibility when problems are reported to the state Attorney General's Office. D. Answerable only to the insurance agents in the state of Georgia.
D. The house, garage and the fence
28/100 An insured is covered under an HO-3 form. If the insured hits his own house and also damages the garage and the attached fence with his vehicle, what coverage would apply? A. The house and garage only B. The fence only C. Nothing because the insured's vehicle caused the damage D. The house, garage and the fence
C. Authority given by the principal to the agent that is not formally expressed or communicated.
29/100 What is an insurance producer's "implied authority"? A. The authority that the public reasonably believes the producer has. B. The authority that the producer believes it has. C. Authority given by the principal to the agent that is not formally expressed or communicated. D. Those specified in a contract with the insurer.
not c
3/100 Assume a general liability policy is issued for a one-year period, and has a per occurrence limit of liability of $50,000, and a general aggregate limit of $100,000. The maximum that can be paid by the insurer under this provision over the one-year period is: A. $50,000 B. $100,000 C. $150,000 D. $300,000
<<<<NOT D
30/100 Which of the following property is excluded under Homeowner's Personal Property Coverage? A. A suitcase full of clothes while the named insured is vacationing in Russia. B. A suitcase full of clothes while the named insured is vacationing in Mexico. C. A valuable baseball card collection owned by the named insured's son that is covered under a separate personal articles floater. D. A valuable baseball card collection that the named insured's young son owns, but the agent is unaware of.
<<<<<NOT B
31/100 How is unscheduled personal property covered under standard ISO homeowners policies? A. Market value B. Appraised value C. Replacement cost D. Actual cash value
D. Deny further obligations to the insured as a result of the other injured party.
32/100 A business auto policy has a $100,000 limit of insurance for liability coverage. As a result of an automobile accident involving a covered auto, two people are injured. The first injured party sues the named insured and wins a $150,000 judgment. The insurer pays its limit of insurance. If the other injured party later sues the insured, the insurer will: A. Either defend or settle the suit. B. Pay up to $100,000 of the damages the injured party is awarded. C. Pay a negotiated amount. D. Deny further obligations to the insured as a result of the other injured party.
<<NOT A
33/100 An insurance company would be guilty of an Unfair Claims Practice violation if it: A. Paid claims quickly to avoid law suits. B. Failed to acknowledge within reasonable time, communications with respect to claims. C. Failed to pay an uncovered claim. D. Terminated an appraiser for filing fraudulent claims.
C. The Excess & Surplus Lines Market
34/100 All of the following are examples of government insurers, EXCEPT: A. The state run FAIR plan B. The National Flood Insurance Program C. The Excess & Surplus Lines Market D. Medicare/Medicaid
<<<<NOT A
35/100 The "coverage territory" of umbrella liability policies is usually: A. The United States of America, its territories and possessions, Puerto Rico and Canada only. B. Anywhere in the world but sometimes with a requirement that suits be brought in the United States or Canada. C. The continental United States of America only. D. The state in which the insurance company is domiciled.
A. HO-8
36/100 Which of the following homeowner forms provide the least amount of peril coverage? A. HO-8 B. HO-2 C. HO-3 D. HO-5
B. Leading a client to believe that an insurance policy provides benefits that it does not provide.
37/100 Misrepresentation is: A. Encouraging a prospect to drop an existing policy in order to sell another policy. B. Leading a client to believe that an insurance policy provides benefits that it does not provide. C. Offering an inducement for the purchase of insurance. D. Suggesting that the insured's carrier is inferior and does not pay claims promptly.
A. Robbery.
38/100 Forcible removal of property from a messenger through the threat of violence is called: A. Robbery. B. Theft. C. Burglary. D. Mysterious disappearance.
A. Reported within one year of the accident.
39/100 Under the commercial general liability policy, medical payment expenses must be: A. Reported within one year of the accident. B. Paid within one year of the accident. C. Reported within two year of the accident. D. Paid within three years of the accident.
**** TRY A. Crop Insurance not c
4/100 The Terrorism Risk Insurance Program Reauthorization Act of 2015 covers all of the following, EXCEPT: A. Crop Insurance. B. Property Insurance. C. Workers Compensation. D. Directors and Officers Liability Insurance.
A. It is used only for liability coverage.
40/100 Which of the following statements is true with respect to symbol 1 used on the BAP declarations page? A. It is used only for liability coverage. B. It identifies owned and hired autos only. C. When it is used to identify covered auto, 30 days' notice to the insurer is required to arrange coverage on newly acquired autos. D. When it is used, the covered autos must be specifically described.
A. 30
41/100 An insurer that terminates an appointment of a Georgia agent, must notify the Insurance Commissioner within _____ days of the effective date of termination. A. 30 B. 15 C. 25 D. 20
A. Symbol 8.
42/100 What symbol is used for a hired auto in a commercial automobile policy? A. Symbol 8. B. Symbol 2. C. Symbol 5. D. Symbol 4.
A. Only in participating communities.
43/100 Coverage under the National Flood Insurance Program may be written: A. Only in participating communities. B. For any property located in the United States. C. For any property located in flood prone areas. D. Only in participating states.
D. The commercial auto policy contains an aggregate limit for all claims paid during the policy year. Once that limit is paid for all accidents, the insured would be uninsured for future claims during the remainder of the year.
44/100 All of the following are true regarding the limit of insurance shown on the declarations page of a commercial auto policy, EXCEPT: A. The limit of coverage applies to each vehicle listed on the declarations page. B. The number of vehicles involved in the accident does not affect the limit of coverage per accident. C. The number of claims per accident does not change the limit of coverage for the accident. D. The commercial auto policy contains an aggregate limit for all claims paid during the policy year. Once that limit is paid for all accidents, the insured would be uninsured for future claims during the remainder of the year.
A. A snowmobile in a park
45/100 Which of the following is NOT covered by liability coverage under a Homeowner policy? A. A snowmobile in a park B. A golf cart on a golf course C. Runaway lawnmower D. Motorized wheelchair
>>>NOT C
46/100 The dwelling property program is designed to cover all of the following properties, EXCEPT: A. A 1-story apartment house with eight roomers. B. A 3-family apartment house. C. A mobile home which is installed on a permanent foundation. D. A 4-family building complex with one resident using a bedroom as an office.
A. Replacement without deduction for depreciation.
47/100 Replacement cost coverage is best defined as: A. Replacement without deduction for depreciation. B. Replacement cost minus tax depreciation. C. Original cost minus physical depreciation. D. Original cost minus tax depreciation.
D. All the responses listed are correct.
48/100 In a legal sense, the term "person" includes: A. Individuals B. Companies C. Other business entities D. All the responses listed are correct.
D. Forgery
49/100 Signing someone else's name or falsifying documents is considered: A. Rebating B. Coercion C. Misrepresentation D. Forgery
A. Tourists on a cruise ship
5/100 Which of the following persons are not covered under the Jones Act? A. Tourists on a cruise ship B. Crewmembers of a ship C. Dock workers D. Port employees
>>> NOT D
50/100 All of the following would be covered under Part B - Medical Payments of the personal auto form, EXCEPT: A. Injuries sustained by the insured's mother when a tree falls on the automobile while she is sitting inside the automobile while it is parked in the driveway. B. Injuries sustained by an elderly man riding in the insured vehicle after having paid the insured to take him to the grocery store. C. Injuries sustained by the insured when using his father's pickup truck to pick up furniture he recently purchased. D. Injuries sustained by a neighbor who carpools with the insured and who, while getting into the insured's car, slips, falls, and injures her knee.
A
51/100 Which of the following persons is EXEMPT from insurance licensing requirements? A. A personnel officer who enrolls agency employees in a group health insurance program. B. A financial adviser who does insurance consulting. C. A clerical worker in an insurance agency who also describes coverages to insureds. D. An active partner in an agency who directs the sales force.
A. An occurrence may include continuous or repeated exposure to conditions.
52/100 Which of the following statements regarding "an occurrence" is correct? A. An occurrence may include continuous or repeated exposure to conditions. B. An occurrence must be a sudden, violent act. C. The property damage or bodily injury may be intended by the insured. D. The terms "Occurrence" and "accident" always mean the same thing.
A
53/100 Ten years ago, an insured purchased a building for $50,000 that would cost $100,000 to rebuild today. If the physical value of the building has depreciated $2,000 each year, the building's present actual cash value is: A. $80,000. B. $100,000. C. $50,000. D. $30,000.
C. Damage resulting from the collision of the truck carrying a covered auto with another vehicle.
54/100 An insured auto dealer has purchased garage policy physical damage coverage against specified causes of loss. Which of the following losses will not be covered by the policy? A. Flood damage to a covered auto. B. Vandalism damage to a covered auto. C. Damage resulting from the collision of the truck carrying a covered auto with another vehicle. D. Explosion.
A. They are included at no extra cost.
55/100 Which of the following statements is true about "additional coverages"? A. They are included at no extra cost. B. They are automatically included only if medical payments coverage is purchased. C. They are included for a minimum premium. D. They are optional on the part of the insured.
A. Loss conditions
56/100 The procedure for resolving a disagreement between an insured and an insurance company about a loss is described in which of the following parts of an insurance policy? A. Loss conditions B. Declarations C. Insuring agreement D. Exclusions
B
57/100 In order for a contract to be binding in a court of law, it must be designed for: A. Two parties. B. Legal purposes. C. Res ipsa loquitor. D. Easy interpretation.
A. An accident.
58/100 A sudden an unexpected event that is normally identifiable as to time and place is best described as: A. An accident. B. Liability. C. Negligence. D. An error or omission.
B. 30 days
59/100 Businessowners policies provide "Preservation of Property" coverage when property is removed from the premises to protect it from a covered cause of loss. The coverage will apply at other locations for up to: A. 60 days B. 30 days C. 10 days D. 20 days
A. Carry a sufficient limit and purchase replacement cost coverage on the customers property
6/100 The insured carries Commercial Property insurance and he has property belonging to others in his care, custody and control. His insurance agent tells him that in case of a loss where there is negligence, the owner of the property may want his property covered on a replacement cost basis. What coverage must the insured purchase to be properly covered? A. Carry a sufficient limit and purchase replacement cost coverage on the customers property B. Nothing since the form automatically covers customers property on a replacement cost basis C. Customer's property is covered on an unlimited basis D. The insured needs to purchase a bailee type policy
A
60/100 With a Commercial Package Policy, interline endorsements are endorsements that: A. Could apply to more than one coverage part. B. Are attached to the common policy declarations C. Apply only to the common policy conditions. D. Only apply to commercial property coverage.
A. 30 percent
61/100 Under the HO-3, what percentage of Coverage A is written as the Coverage D limit (loss of use)? A. 30 percent B. 20 percent C. 25 percent D. 40 percent
B
62/100 An insurance company intends to cancel or nonrenew a personal auto policy for the approved reasons. How many days notice of cancellation or nonrenewal must be sent to the named insured? A. 45 day notice B. 30 day notice C. 60 day notice D. 90 day notice
D. All of the listed answers are correct.
63/100 Anywhere Computer Care specializes in building customer websites. They purchase a CGL policy. It should be pointed out to the insured that: A. Damage to a customer's computer left for repair at the business is excluded. B. Personal and Advertising Injury Liability is excluded for website design exposures. C. Damage to the insured's own property is excluded under the CGL. D. All of the listed answers are correct.
<<<NOT D
64/100 Which of the following circumstances would most likely not be covered under most state workers compensation laws? A. An employee was injured during a lunch break in the factory parking lot B. A work-related accident occurred when the risk of injury was well known to the employee C. An injury to an employee was caused by the carelessness of another worker D. A workplace injury was caused by an employee's own negligence
A. Drive other car coverage.
65/100 Which of the following endorsements can be used under the BAP to extend coverage to individuals such as the owner of the business who does not carry personal auto insurance? A. Drive other car coverage. B. Named non-owned auto endorsement. C. Broad form named non-owned auto endorsement. D. Drive away liability coverage.
<<<NOT C
66/100 All of the following statements about the limits of insurance under the CGL policy are correct, EXCEPT: A. The "Damage to Premises Rented to You" limit applies to any direct damage the insured negligently causes to its rented building. B. The general aggregate limit does not apply to Products-Completed Operations claims. C. Only BI & PD Liability coverage claims are subject to the per occurrence limit. D. Medical Payments claims are subject to a limit per person.
<<<NOT A
67/100 Which of the following best describes the purpose of workers compensation coverage? A. Medical B. Disability C. Indemnity D. Burial, loss of wage coverage and disability benefits
<<<NOT A
68/100 Which of the following is found in Section I of the homeowner form? A. Liability Coverage B. Medical Payments C. Personal Property Coverage D. Supplementary Payments
A. The value reporting form.
69/100 In order to avoid problems with underinsurance and overinsurance, a business which has fluctuating inventory values during the year should consider coverage written on: A. The value reporting form. B. The business income form. C. A blanket basis. D. A replacement cost basis.
A. Automated Teller Machine Coverage
7/100 Which of the following coverage endorsements under commercial crime and bonding would cover an ATM machine? A. Automated Teller Machine Coverage B. On premises burglary and robbery C. Off Premises Money and Securities Coverage D. Employee Fidelity ATM Coverage
A. I only
70/100 A tort is: I. A civil wrong. II. A legal obligation. A. I only B. II only C. Both I and II D. Neither I nor II
A. Both I and II.
71/100 The Discovery clause in a commercial crime policy states that losses are covered if they are discovered by the insured: I. During the policy period. II. Within 60 days of the termination or cancellation date if no other insurance is obtained. A. Both I and II. B. I only. C. II only. D. Neither I nor II.
A. Instrumentalities of transportation and communication.
72/100 Many stationary objects, such as bridges, tunnels and power lines fall within the nationwide marine definition because they are considered to be: A. Instrumentalities of transportation and communication. B. Of substantially high values. C. Capable of being transported. D. Exposed to the same perils as vessels at sea.
B. 66 2/3%
73/100 If an employee suffers a non-catastrophic injury, what percentage of their average weekly wage is paid as the result of the injury? A. 75% B. 66 2/3% C. 80% D. 65%
A. Pollution of a stream caused by gasoline leaking from the ruptured fuel tank of a covered auto following a collision.
74/100 Which of the following pollution losses would be covered by garage policy liability coverage? A. Pollution of a stream caused by gasoline leaking from the ruptured fuel tank of a covered auto following a collision. B. Escape of toxic sludge from a dump site used by the named insured to store waste produced in its garage operations. C. The cost of a governmentally ordered clean-up of the pollution from a dump site used by the named insured. D. None of the losses described would be covered.
B. The limit of insurance must be at least equal 100% of the average personal property values for the previous 12 months
75/100 What is required in order for seasonal increase coverage to apply under the BOP? A. The insured must purchase the coverage by endorsement B. The limit of insurance must be at least equal 100% of the average personal property values for the previous 12 months C. Submit average inventory values for the previous three years D. The BOP does not provide automatic seasonal increase in coverage
A. Someone who represents an insurance company in the soliciting and negotiation of insurance.
76/100 What is the definition of "agent"? A. Someone who represents an insurance company in the soliciting and negotiation of insurance. B. Someone who shops and obtains insurance for the insured. C. Someone with a certificate of authority. D. Someone who only handles claims for an insurer.
B. $60,000
77/100 Horace Timm has a general liability policy with the Marvel Insurance Company. The policy's limit of liability is $25,000 per occurrence. In the course of one policy year, Mr. Timm becomes liable for the following amounts as a result of three separate occurrences: Occurrence #1 $35,000 Occurrence #2 $10,000 Occurrence #3 $25,000 The total amount Marvel will pay as result of these three occurrences is: A. $25,000 B. $60,000 C. $70,000 D. $75,000
D. None of the responses are correct
78/100 The HO-3 provides coverage against how many perils on covered structures? A. 17 perils B. 18 perils C. 24 perils D. None of the responses are correct
A. $140 million
79/100 Under the Terrorism Risk Insurance Program Reauthorization Act of 2015, what is the "trigger limit" before claims are paid for the year 2017? A. $140 million B. $120 million C. $100 million D. $160 million
C. I and II only
8/100 Which of the following is covered property under the HO-3 form? I. Belongings of the insured's daughter while she is away at college II. The insured's garage III. The insured's dog IV. Personal property of a tenant A. I, II, and III only B. I, II, III, and IV C. I and II only D. II and III only
A. Collision
80/100 Joe Taylor has the automobile coverages listed below under a personal auto policy. Select the coverage that would apply when Mr. Taylor runs over a log and damages his auto. A. Collision B. Bodily Injury and Property Damage Liability C. Comprehensive (other than collision) D. Medical Payments
C. An act which results in damage within the United States, or outside the United States in the case of United States air carriers, vessels and/or missions that is not committed as an act of a declared war.
81/100 Under the Terrorism Risk Insurance Program Reauthorization Act of 2015, which of the following would be considered a certified act of terrorism that would be covered? A. An act committed by a citizen of the United States against a foreign embassy. B. An act that causes damage within the United States and is certified as such by the United States Senate. C. An act which results in damage within the United States, or outside the United States in the case of United States air carriers, vessels and/or missions that is not committed as an act of a declared war. D. Any act that causes bodily injury or property damage within the boundaries of the United States and is certified as such by the President of the United States.
A. 6 months.
82/100 The Georgia Insurance Commissioner may issue a temporary insurance license for: A. 6 months. B. 30 days. C. 45 days. D. 60 days.
>>> NOT C
83/100 Which of the following are not required to be licensed in Georgia for insurance purposes? A. Representative of ocean marine insurers B. Representatives of farmer's mutual fire insurance companies C. Licensed attorneys who from time to time adjust or assist in adjusting claims D. None of the responses are required to be licensed
>>> NOT A
84/100 Under the BOP, apartment buildings are eligible, including residential condominium associations, along with offices, mercantile, service or processing agencies or contractors as long as they do not exceed: A. 15,000 sq. feet B. 35,000 sq. feet C. 30,000 sq. feet D. 40,000 sq. feet
C. Personal effects form
85/100 The insured's have a homeowner policy with a $5,000 loss deductible. The husband has purchased some expensive camera equipment to take on a cruise for recording their trip. Also special scuba gear and sportswear have been purchased for both. They are concerned about fire and theft. What coverage would you recommend? A. Personal articles form B. Personal property form C. Personal effects form D. Reduce the homeowner deductible temporarily
A. DP-3.
86/100 The most comprehensive coverage provided by the dwelling property program is found in the: A. DP-3. B. DP-1. C. DP-2. D. DP-4.
B. The insurance company will cover the item for the full $50,000 amount.
87/100 The insured owns an expensive rare painting. He has it appraised by an art dealer and has it insured for $50,000 under a personal articles floater. There is a market decline for this item. It is destroyed in a fire at his office. The company offers him $40,000, the current market value. How will the loss be handled? A.The item is not covered because it was away from the insured's residence at the time of the loss. B. The insurance company will cover the item for the full $50,000 amount. C. The insurance company is correct in offering fair market value at the time of the loss. D. The insurance company will ask for a reevaluation of the item based on records and documentation of the price paid, the current market value and the appraised value.
A. One formed in Great Britian.
88/100 An alien insurance company is: A. One formed in Great Britian. B. One formed in Florida. C. One formed New York. D. One formed in Chicago and Atlanta.
>>> NOT C
89/100 An applicant's statement that property to be insured has an operable sprinkler system is considered to be: A. A warranty. B. An agreement. C. A representation. D. An affidavit.
not c
9/100 Which of the following is NOT true concerning the Terrorism Risk Insurance Program Reauthorization Act of 2015? A. Coverage is mandatory B. The insured can reject the coverage C. It is an agreement between insurers and the United States government to provide coverage D. Must be certified as an act of terrorism by the Secretary of Treasury in concurrence with the Secretary of Homeland Security and the US Attorney General
C. Contribution by equal shares.
90/100 In a liability situation, more than one policy will share equally in the loss until the lowest policy limit is exhausted and continue in that fashion until all policy limits are exhausted. This is known as: A. Pro-rata liability. B. Primary and excess liability. C. Contribution by equal shares. D. Other insurance clause.
>>NOT A
91/100 A surety which provides a Performance Bond to a contractor might also provide another performance bond which guarantees the materials will be provided at the price quoted and the quality and quantity specified. This bond is referred to as a: A. Completion Bond. B. Supply Bond C. Performance Bond. D. Surety Bond
>>> NOT C
92/100 Unfair claims practices include all the following, EXCEPT: A. Requesting a claimant to sign a release that extends beyond the subject matter that gave rise to the claim payment. B. Issuing checks or drafts in partial settlement of a loss or claim under a specified coverage which contain language releasing an insurer or its insured from its total liability. C. Compensating a reviewing physician on the basis of a percentage of the amount by which a claim is reduced for payment. D. Actively pursuing a full release on a claim
B. Unfair Discrimination
93/100 Making distinctions in the premium rates charged for insurance between insureds or property having like insuring or risk characteristics is an example of: A. Rebating B. Unfair Discrimination C. Unfair Representation D. False Underwriting
<<<NOT B
94/100 A gentleman is in a restaurant and bites into his salad and breaks his tooth. Under the restaurant's CGL policy, this claim will be covered under: A. Products/completed operations with the CG 2407 endorsement added B. Premise/operations C. Contractual D. Personal injury
>> NOT C
95/100 You're at a party and run out of soft drinks. Your car is at the front of the driveway so you borrow a friend's car which is parked at the end of the driveway nearest the street. From your coverage perspective this car is known as a: A. Non-owned Auto B. Owned Auto C. Temporary Substitute D. Hired Auto
D. Vehicles where snow plows are permanently mounted to remove snow on the premises
96/100 Which of the following would NOT be considered mobile equipment under the business auto policy? A. Bulldozers B. Vehicles used solely on the farm premises C. Front end loaders D. Vehicles where snow plows are permanently mounted to remove snow on the premises
>> NOT D
97/100 The insured owns the following properties. Which one of them would be considered to be "business property" by the personal umbrella liability policy? A. A farm used for personal use B. An apartment building C. A cabin at a lake where the insured spends occasional weekends D. A single-family home used only as residence by the insured
A
98/100 All of the following are exclusions under Equipment Breakdown coverage, EXCEPT: A. Sudden and accidental loss. B. Fire losses. C. Flood. D. Wear and tear.
D. A truck has an accident and gasoline escapes from the gas tank.
99/100 Pollution coverage is normally excluded under commercial auto coverage. Under which of the following situations would coverage apply without endorsement? A. The insured is hauling pollutants and has an accident and a pollution loss occurs. B. The insured has a truck that has been gradually leaking pollutants. C. The insured is hauling pollutants for others and has an accident causing the pollutants to spill onto the land. D. A truck has an accident and gasoline escapes from the gas tank.
