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Which inland marine form would provide the best protection for a dry cleaning company against loss or damage to their customer's property while in the care, custody, and control of the dry cleaners?

Bailee's customer policy A bailee's policy does not cover property of the insured, but does cover their customer's property while in the care of the insured.

Who will transport the property of anyone who hires them?

Common carriers Common carriers transport the property of anyone who hires them.

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT

Conditions. its not offer and acceptance for crying out loud damn

The designation symbols used in commercial auto policies can be found in which policy section?

Covered Auto Section I - Covered Auto of a commercial auto policy explains the designation symbols used in that coverage.

Which of the following best describes an insurance company that has been formed under the laws of this state?

Domestic

What type of compensatory damages will pay for pain and suffering and disfigurement?

General General compensatory damages are for intangible elements that cannot be specifically measured in terms of dollars.

Which of the following covers a carrier for liability for loss to cargo while it is being transported in a truck?

Motor truck cargo policy - truckers form The motor trucker cargo truckers is liability insurance and the owners form is property coverage.

If a person is using an auto with the belief that he is entitled to do so, subrogation rights under a personal auto policy would apply to all coverages EXCEPT

Physical damage. Subrogation rights do not apply to physical damage coverage if the damage is caused by a person using the auto with a reasonable belief that they were entitled to do so.

Which of the following liability exposures is most likely for a small specialty clothing retail boutique?

Premises liability exposure The premises liability exposure exists when there is use of the premises. Operations liability exposure relates to activities in addition to use. Product liability exposure is the possibility that the public might be injured by the product. Completed operations liability refers to liability for work already performed or completed. For a boutique retail store, the only possible liability would arise from customer injury while on the premises.

Valuable papers and records form provides coverage for the reconstruction of all of the following types of records EXCEPT

Prepackaged software. Coverage for reconstructing prepackaged software is specifically excluded.

Which of the following would NOT be covered by medical payments to others in Section II of your HO policy?

You cut your leg while whacking weeds in your backyard with your neighbor's weed whacker.

The broad theft coverage endorsement on the dwelling form specifies all of the following limitations EXCEPT

$1,000 on silverware. The limit on silverware is $2,500.

The extension of coverage under the Commercial Fine Arts Floater includes coverage for newly acquired property for a maximum of

$10,000. An extension of coverage is included for newly acquired property for 30 days for up to 25% of the total limit of insurance, for a maximum of $10,000.

An insured has $5,000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000 for the first passenger, and $8,000 for the second passenger. How much will the policy pay under medical payments coverage?

$14,000 The limit is not more than $5,000 per person, per accident.

A builder's risk form is most often written as which of the following?

Completed value form A building under construction could be insured on reporting forms, but the value of the building should only increase during the policy period. To prevent all the administrative work required for reporting forms, most often completed value forms are used.

Which of the following dwelling policy forms primarily insures a structure on an actual cash value basis?

DP-1 DP-1 insures the structure on an actual cash value basis. DP-2 and DP-3 insure the structure on a replacement cost basis.

Which of the following losses would be covered by an unendorsed homeowners policy?

Fire or lightning Fire and lightning are included in the basic perils, which in turn are included in almost all homeowners policies. Earthquake coverage is only by endorsement. Theft in or to buildings under construction is not covered. If the insured's own acts, decisions, or failure to act causes the loss, it is not covered.

All of the following are exclusions that apply in all three types of Dwelling Policies EXCEPT

Fire or lightning is covered. Water damage, earth movement and government action are all exclusions

The members of a limited liability company are insureds under a businessowners policy (BOP) if

The limited liability company is designated as the named insured. If the named insured is designated as a limited liability company, the named insured and members also are insureds, but only with respect to the conduct of the business. Managers are insureds, but only with respect to their duties as managers.

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT

conditions!!!!!!!!!!!!!!!!

Which of the following is NOT covered under the Utility Services - Time Element endorsement?

Damage to the insured's property caused by utility service disruption Utility services - time element covers business income or additional expense losses arising from disruption of service caused by a covered peril.

An insured works outside the home. The insured's sister lives with him and cares for his four children. When the insured's home is severely damaged by fire, the family moves into an apartment while repairs are being made. The largest apartment available in the area has two bedrooms, so the insured's sister has to stay at a motel. How much will the HO-3 form pay for these additional living expense?

All of the expense up to the Coverage D limit Coverage D will pay the expenses incurred to maintain the same lifestyle as before the loss.

Which of the following special liability coverages will provide protection to managers of a corporation for claims arising from a wrongful act committed by the manager while in an official capacity?

Directors and officers liability Directors and officers liability policies will pay those damages that the corporation or nonprofit entity would, under the law, be required to reimburse the individual director or officer for judgments arising from actions alleging wrongful acts.

Which commercial crime form would provide coverage for a loss that did not necessarily happen during the policy period but was revealed during the policy period?

Discovery form The discovery form is used for losses that are discovered during the policy period but may not have happened during the policy period. The discovery form is one of the conditions contained in the crime general provisions forms, which contain conditions and exclusions applying to all crime forms. The discovery period is normally 1 year.

Which of the following liability policies is usually written on a "claims-made" form?

Professional liability insurance Most professional liability policies are written on a claims-made form which means that coverage may not be provided for claims arising from acts that occurred prior to the inception of the policy and for claims arising for acts that occur during the coverage period, but where the claim is not made until after the expiration of the policy, will not be covered, unless an "extended reporting period" (tail-coverage) is purchased.

While an insured was towing a utility trailer with his auto, the trailer came loose and ran into a store front. What part of the insured's auto policy would pay for the damage to the store?

Property damage liability The auto policy provides liability coverage to a trailer being towed by a covered auto.

When a vehicle travels from one state to another, what happens to the limits of policy liability in a personal auto policy?

They do not change. The minimum liability limits do not change when a vehicle travels from state to state and remain the same regardless of the state the vehicle is in.

All of the following are excluded in the equipment breakdown basic policy EXCEPT

Explosion of steam boilers. Equipment breakdown coverage covers the sudden and accidental breakdown of the vessel. Business interruption may be added by endorsement.

In a participation plan, the insured may be eligible for which of the following?

A partial premium refund The insured is eligible for dividends (partial premium refund) if the experience during the policy term falls within guidelines established by the insurer at the inception of the policy term. Dividends are not guaranteed, and to be eligible for participation, the account must generate a minimum amount of premium.

The difference in the contents coverage on an HO-3 and HO-5 is which of the following?

Contents are covered open peril on HO-5, and named peril on HO-3. HO-5 provides open peril coverage for contents; HO-3 is named peril coverage for contents. Replacement cost coverage is available only by endorsement to either form.

In liability insurance policies, supplementary payments are made

In addition to the limit of liability. \ Supplementary payments are the insurer's claim-related expenses and are made in addition to the limits of liability

All of the following statements describe the concept of strict liability EXCEPT

It is imposed on defendants engaged in hazardous activities. Strict liability is commonly applied in product liability cases. The business is then liable for defective products, regardless of fault or negligence.

To perform work on a customer's car, a mechanic in an auto shop had to put the vehicle on a service hoist. The hoist collapsed, damaging the vehicle and injuring the mechanic. In regard to the garage coverage form, which of the following statements is true?

No coverage is applicable. The garage coverage form does not cover property damage for a customer's vehicle that is on a service hoist or for bodily injury.

All of the following statements are FALSE regarding garage physical damage coverage EXCEPT

No coverage is provided for any auto stored for more than forty-five days at a location not shown in the declarations. Collision coverage is not for any specific risk. Autos held for sale are covered when auto designation Symbol 31 is shown on the declaration page. The "specific causes of loss" coverage is available for physical damage coverage.

Under the personal auto policy, liability for bodily injury resulting from the insured's use of a nonowned automobile is

Provided by the insured's policy on an excess basis. Automobile insurance follows the insured auto, so the coverage written on the auto is primary. Automobile insurance also follows the insured as excess over other collectible insurance.

In a personal umbrella policy, the amount paid by the insured for certain losses not covered under the primary coverage is called

Self-insured retention. In casualty insurance, the portion of a claim not paid by insurance is called a retention. In property insurance, it is called a deductible.

All of the following are supplemental payments included in the liability section of a personal auto policy EXCEPT

Up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident. A personal auto policy does not pay the cost of the release of a vehicle impounded by a law enforcement agency.

When would uninsured motorist coverage apply?

When the other party is legally liable but has no insurance Uninsured motorist coverage would not apply if the insured was at fault; it applies only if the other driver is at fault but has no coverage.

A stock insurer is defined as an insurer

With its capital divided into shares and owned by its stockholders. A stock insurance company is owned by its stockholders who contribute the capital. Any profits of the company are paid to the stockholders as dividends on their stock. If the company loses money, the stockholders suffer the financial losses by a reduction of the value of the stock and the absence of dividends paid.