guarantee exam 2

if an insurance policy prohibits the insured from relinquishing ownership of insured property that has been damaged it is prohibiting a)assignment b)subrogation c) selling of property d) abandonment

d) abandonment

Under coverage E scheduled farm personal property livestock that is not specifically insured is limited to a coverage limit of

$2,000 per head

To determine the actual cash valued of an insured property , what must be deducted from the current replacement cost?

depreciated value

a performance bond is an example of a) injunction b) contract c) judicial d) fiduciary

b) contract

What is the purpose of requiring license for persons who transact insurance?

protect general public

what does the application of contract of adhesion mean?

since the insured does not participate in preparing the contract any ambiguities would be resolved in favor of the insured

all of these types of property may be covered on a farm policy EXCEPT a) barns b) silos c) farm machinery d) growing crops

d) growing crops -crop insurance policy

The garage cover form is written to cover the insurance needs of an insured in the business of selling, repairing, servicing, or storing automobiles. Which of the following coverages are not included in a garage policy? a) premises and operations liability b) product liability c) physical damage on a customers auto d) auto liability

c) physical damage on a customers auto

The defendant being released on surety bond is the a) obligee b) insured c) principal d) per occurence

c) principal

What is the max amount under a mobile home policy will pay to move mobile home to prevent further damage?

$500

When reviewing a standard workers compensation and employers liability policy, the limits of coverage are described in part one of the policy. The dollar limits of the benefits provided are stated. a) in line item 3 A of the policy info b) in paragraph 1 or part one as directed by law c) in the state workers compensation law itself d) on the face of the policy declaration page

c) in the state worker compensation law itself

Using the pro rata method, if a property is covered by Company A for $20,000 and Company B covers the same property for $40,000, how much will Company A pay on a $24,000 loss? a. $20,000 b. 12,000 c. 8,000 d. 0

c) $8,000

How long is the period of time in which a licensee must renew his or her license? a) 30 days prior to expiration b)60 days prior to expiration c)90 days prior to expiration d) 1 year prior to expiration

c) 90 days prior to expiration

Chris, who is unlicensed, works part-time in her father's insurance agency. She may perform all of the following activities EXCEPT a) assist her father in completing applications for insurance b) call prospects and collect expiration data of their existing policies for her father c) collect premium for in force policies and explain coverage's to clients that have existing policies written by her father d)make appointments with clients to meet with her father

c) collect premium for in force policies and explain coverage's to clients that have existing policies written by her father

What two policy components are part of every commercial package policy? a) consideration and agreement b) property coverage and liability coverage c) common policy declarations and common policy conditions d)common policy exclusions and agreement

c) common policy declarations and common policy conditions

Guaranteeing future dividends is considered to be an unfair or deceptive act known as a) false financial statements b) rebating c) misrepresentation d) twisting

c) misrepresentation

All of the following are true about the cancellation provision of a commercial policy EXCEPT a) the insurer is required to give advance notice of its intended cancellation to the insured b) the insurer may cancel the policy by mailing or delivering written notice of cancellation the the first named insured. c) the insured may cancel the policy at any time by mailing or delivering d) the insurer is required to provide proof that the insured received the cancellation notice prior to cancelling the policy

d) the insurer is required to provide proof that the insured received the cancellation notice prior to cancelling the policy

Section lll of the business auto policy provides physical damage coverage. All of the following are physical damages that may be selected coverages EXCEPT a) specified causes of loss coverage b) comprehensive coverage c) collision coverage d) limited peril coverage

limited peril coverage

The personal property off-premises extension of dwelling form provides limits of coverages up to a) 10% of coverage c anywhere in the world b)10% of coverage A anywhere in the U.S or Canada c) 10% if coverage A anywhere in the world d) 10% of coverage c anywhere in the U.S or Canada

a) 10% of coverage C anywhere in the world

Which of the following would be eligible for homeowners coverage f -medical payments to the event of injury at the insureds premises? a) full time maid b) the named insureds spouse c)a guest who was hurt at the insureds party five years ago

a) full time maid

What does HO personal property coverage not cover?

Personal property of roomers not related to the insured

Within how many days of the final disposition of the matter must a producer report administrative actions taken against him or her to the Commissioner?

30 days

Which of the following is not part of section ll of the boatowners policy a) watercraft damage b) watercraft liability c) medical payments d) uninsured boaters

a) water craft damage -- physical damage is covered in section l

If an insurance policy has the additional coverage provision, how does it affect the policy premium? a) premium will be calculated on a pro rata basis b) there is no additional premium c) premium will be calculated on specific loss

b) there is no premium added

Which of the following would be covered under auto on our PAP? a) your farm wagon being towed by your tractor b) your farm wagon being towed by your pick up truck c) your pick up truck used for deliveries of your business d) your farm tractor

b) your farm wagon being towed by your pickup - agricultural equipment is not insured on auto policies except form wagon being towed by a covered auto

A trucking company has a $1million umbrellas policy in place. The business owner agrees to maintain a 200/500/100 limit on auto liability and a personal liability of $400,000, After a car crash the business is sued, injuries are awarded to a single injured party in the amount of $300,000. I turned out that the business actually carried only 100/250/50 auto liability limits. What is the total amount the umbrella policy will pay ? a) $50,000 b) $100,000 c) $200,000 d) $300,000

b)$100,000

The owner and operator of a store discovers that a customer paid for a large order with forge paper money the day before during business hours. What crime coverage form would provide coverage for this loss? a) forgery or alteration b) computer fraud c) money orders and counterfeit paper d) inside the premises - theft of money and securities

c) money orders and counterfeit paper

If an insured purchases insurance with a large deductible, what risk management technique is the insured exercising? a) avoidance b) sharing c) retention d) transfer only

c) retention

the second injury will pay the benefits in which of the following situations? a)the same injury occurs to a different person b) the company will defend any suit alleging bodily injury or property damage covered by the policy c) the company will reimburse the insured for all loss of earnings d) the company will pay the premium on any appeal bond

c) the company will reimburse the insured for all loss of earnings

In a person auto policy a covered auto includes all of the following EXCEPT a) a trailer owned by the insured b) a farm implement being towed behind the insured's pickup c) a non-owned temporary substitute vehicle d) a van used in the deliver business

d) a van used in the delivery business -if used primarily for deliveries, a PAP cannot insure the vehicle

What type of policy, which may be added by endorsement or purchased separately may an insured purchase in order to provide coverage for other types of contracts? a) a term life policy b) an other coverages policy c) an added endorsement policy d) a contractual liability policy

d) contractual liability policy

The commercial crime coverage that would cover losses resulting from the theft of money, securities, and other property by employee is a) funds transfer fraud b) forgery or alteration c) inside the premises -theft of money and securities d) employee theft

d) employee theft

If an agent follows the rules and terms of his agent contract, he is exercising his a) Apparent authority b) Contractual authority c) Implied authority d) Express authority

d) express authority

Which is not true of workers compensation coverage? a) medical payment benefits are unlimited b) it offers death benefits c) it offer rehabilitation benefits d) medical payment benefits are limited

d) medical payment benefits are limited

What sublimit in a liability policy sets the max amount that will be paid for all claims arising from a single accident a) per person b) combined single c) aggregate d) per occurrence

d) per occurrence

Medical benefits under workers compensation statutes are provided a) up to $500,000 per injury or disease b) for a certain percentage of the workers annual income c) for up to $100,000 per injury or disease d) without time

d) without time

What was the purpose of the Motor Carrier Act of 1980?

to establish financial responsibility requirements for interstate motor carriers