Guarantee Exam
An insured has an automobile policy with limits of 100/200/50 and a deductible of 1k. If an accident causes 125k in injuries, 25k in damages, 1,200 in damages. The payment made by the company will be
125,200
How is a professional liability policy written?
Claims-made
Under which legal defense may a claimant's recovery be defeated in the defendant can show that the claimant contributed, no matter how slightly, to the injury or damage?
Contributory negligence
Guaranteeing future dividends is considered to be an unfair or deceptive act known as
Misrepresentation
Who is responsible for verifying that an insurer is authorized to sell insurance policies in this state?
Soliciting producer
Which of the following types of bonds guarantees that a supplier will furnish supplies, materials, and equipment as specified within the contract?
Supply bond
All of the following are true regarding the federal Fair Credit Reporting Act except
Reports may be sent to anyone who requests one
Which of the following is false concerning liability coverage of a BAP
The company will reimburse the insured for all loss of earnings
A binder issued on a policy in this state may last for a maximum of
90 days
How much notice must an insurer give if it is cancelling or nonrenewing a medical malpractice policy?
90 days
Under which circumstance must an agent or other representative of an insurance company give a binder to an applicant
When an applicant remits premium money to an insurer
What type of policy, which may be added by endorsement or purchased separately, may an insured purchase to provide coverage for other types of contracts?
A contractual liability policy
All of the following persons would be covered under a business auto policy except
An employee of the named insured operating an auto that is owned by the employee's spouse
In order to get a nonresident license in this state, a licensed producer from another state must
Apply for a nonresident license and pay a fee
In a state with compulsory WC laws, a small employer who feels his company is too small and unprofitable to pay WC. Possible consequences include
Forced payment of billing services rendered by any private insurer that "binds" coverage based on an employees request for coverage
In Washington, after an insurance contract goes into effect, it can be cancelled for any reason within
60 days
A small appliance manufacturer in this state provides products around the globe. If insurer is found liable for damages caused by product in switzerland, why does the policy cover the claim?
The appliance was manufactured in the US
Producer licenses are valid from the initial licensing or reinstatement period until
The last day of the birth month plus one year
Which of the following duties is not required of the insured in the event of a loss?
Immediately notify the insurer when the insured has filed for bankruptcy
Property damage coverage required under state auto laws means phys damage to the insured vehicles, unless the policy provides coverage for the vehicle contents or other forms of property damage. Property damage coverage
May be rejected by the insured
Under the employee theft coverage, when a covered employee is found to have participated in a dishonest act, the coverage for that employee will terminate
immediately
