guarantee exam f#*k

a personal umbrella policy may act as excess over any of the following insurable insurance coverage policies, except.... a. auto collision coverage b. homeowners Section 2 coverage c. auto liability coverage d. comprehensive personal liability

auto collision coverage

which of the following describes an insurer's responsibility for payment under a policy as stated in the common policy provisions? a. utmost good faith b. premiums c. limits of liability d. consideration

limits of liability

what kind of coverage does form DP-3 provide? a. open peril b. basic peril c. named peril d. broad peril

open peril

in reference to insurable interest, which of the following is not an element of insurable risk? a. business b. personal c. blood d. financial

personal

a policy contains a consent to settle a loss provision which requires the insured to obtain the consent to settle a loss provision which requres the insured to obtain the consent of an insured before the settle of a claim. With this in mind what kind of liability policy does the insured most likely have? a. excess liabilty b. protective liabilty c. errors and omissions d.professional liabilty

professional liability

which of the following would not be covered by commercial inland marine policy? a. bridges and tunnels b. property loss due to military action c. commercial property floater's risk d. loss caused by weather's conditions

property loss due to military action

For there to be negligent liability, all of the following must exist EXCEPT A. A reasonable expectation that the act may cause injury or damage. B. /a breach of legal duty which result in injury or damage to another person. c. a legal duty to act or not to act under the circumstance d. proximate cause between the wrong and injury or damage

A reasonable expectation that the act may cause injury or damage

An insurer must be fair in underwriting and must pay all covered losses of any insured. For the faithful execution of these duties, an insurer has the right to A.Implement strict guidelines for the initiation of claims against all policies B. Accept the payment of premiums currently in force C. Use Flexible underwriting standards so as to exclude higher-risk insureds. D. Employ any and all resources available to avoid paying legit claims

B. Accept the payment of premiums currently in force

Regarding workers compensation, what term is given to a situation that is more than 50% of the cause of an injury? A. Compensable injury B. Balance Billing C. Comparative Negligence D. Major Cause

Major Cause

in a personal auto policy, a covered auto includes all of the following except: a. a farm implement being towed behind the insured's pickup b. an non-owned substitute vehicle c. a van used in the delivery business d. a trailer owned by the insured

a van used in the delivery business

a house insured with a homeowners policy has been blown off its foundation by a tornado. it must be demolished and removed so a replacement house can be built. a. H-0 policies do not cover debris removal b. an additional 5 percent of the policy limit may be paid for debris removal c. because the full policy limit must be paid for the house there is no coverage for debris removal d. it will be paid if the debris removal endorsement has been added

an addiitonal 5 percent of the policy limit may be paid for debris removal

The obligation to compensate injured workers without regard to fault or negligence is known as a. absolute liablity b. employer's liability c. elective liability d. compulsary liability

absolute liability

when do binders expire

as soon as the policy is issued

In a DP-1, if the insured elects to apply Coverage B to a detached garage, Coverage A will..... a. be reduced by 10 percent b. the only applicable if the insured pays a higher deductible c. only be applicable if the insured pays an additional premium d. be increased by ten percent

be reduced by 10%

which of the following would not generally be included in the supplementary payments portion of a liability policy? a. damage to property owned by the insured b. the cost of firstaid to others at the time of the accident c. expenses the insured incurs as part of defense at the company's request d. loss of earnings due to the accident

damage to property owned by the insured

All of the following are ways to handle risk except A. Transfer B. ELimination c. avoidance d. reduction

elimination

which of the following is the other major coverage provided by the business owner's liability coverage form? a. auto liability b. employer's liability c. medical payments d. personal liability

medical payments

which of the following is establishing a premium on large commercial accounts.... a. premium discount b. merit rating plan c. experience modification factor d. retrospective rating

retrospective rating

which of hte following is not a cause of loss form for commerical property coverage? a. special b. basic c. broad d. specific

specific

the personal property off premises extension of dwelling forms provides limits of coverage up to a. 10 percent of coverage A anywhere in the US or Canada b. 10 percent of coverage A anywhere in the world c. 10 percent of coverage C anywhere in the US or Canada d. 10 percent of coverage C anywhere in the world

10 percent of coverage C anywhere in the world

An insurer needs to cancel a driver's personal auto insurance policy for multiple convictions of driving while intoxicated. What type of notice to the insured is required? A. No notice; cancellation may be immediate B. 10 days C. 20 days D. 30 days

20 days, in the case of nonpayment of premium would be 10 days.

Which of the following is False concerning liability coverage of a business auto policy? A. The company will reimburse the insured for all of the earnings B. THe company will pay the premium on any appeal bond. C. The company will pay an interest accuring between time of judgement and payment D. The Company will defend any suit allenging bodily injury or property damage covered by the policy.

A. The company will reimburse the insured for all of the earnings

Which of the following would be considered adequate proof of financial responsibility? A. Previous year's tax returns B. employer reference C. Valid drivers license D. Certificate of Insurance

Certificate of insurance

According to the insurance code definition, which of the following coverages in NOT considered casualty insurance? A. Malpractice B. Flood Insurance C. Vehicle Insurance D. Workers Compensation insurance

Flood insurance

Guaranteeing future dividends is considered to be an unfair or deceptive act known as A. Misrepresentation B. Churning C. False Financial Statements D. Rebating

Misrepresentation

If a producer's license has been terminated, what is the producer required to do? A. Return the license to the insurer who has terminated the producers appointment. B. Nothing, once a license has been terminated by the Department, no further action is required from the producer. C. Return the license to the Commissioner Immediately. D. Return the License within 10 days of termination.

Return the license to the Commissioner Immediately.

Due to appreiciation, the insurance of business is less than 80% of its actual value on the date of the loss. Which of the following is true? A. The full amount of the loss less any deductible is paid. B. The policyholder is responsible for twice the amount of the deductible. C. The coinsurance penalty applies. D. The policy pays nothing

The coinsurance penalty applies,

An insured purchased a fire policy on his building with a limit of $300,000. At the time of the loss, the building had an actual cash value of $100,000. The insurance company declined to pay more than $100,000 and the insured sued them. The court held that the insurer had to pay the insured the full amount of the policy limit, $300,000. What law was the court applying in this case? A. Valued Policy Law B. Property Valuation Law C.Fair settlement Practice Law D. Replacement Value Law

Valued Policy Law

When an insured's gardener was spraying weeds in his lawn, he failed to notice that the wind was drifting the spray into the neighbor's yard where he damaged their flower bed, The insured was found to be liable for this damage. THis is an example of

Vicarious liability

The limited theft endorsement designs for a landlord excludes all of the following EXCEPT a. silverware stolen from the landlord's china cabinet b. a lawnmower that the landlord owns and keeps at rented premises c. jewelry stolen from landlord's home d. money stolen from the tenant's apt

a lawnmower the landlord owns and keeps at rented premises

an insured was involved in an accident that was caused by a tire blowout. the insured was severely injured and incurred medical expenses of $100,000. the insured brought a recovery action against the manufacturer of the auto and the tires. the court held that the tire is the cause of the loss. who is required to pay this loss? a. manufacturer of the tire b. both manufacturers would share the loss c. neither manufacturer would have to pay bc of the buyer beware doctrine. d. manufacturer of the auto

manufacturer of the tire

an applicant for property insurance owns a building in which combustible materials are stored in the furnace room. from an underwriting standpoint the risk would most likely be considered a... a. morale hazard b. speculative risk c. moral hazard d. physical hazard

morale hazard

how is the premium paid for the business owners policy? A. Itemized Premium B. Pro Rata Liability Premium C. Separate Premium for Property and for Liability D. One Indivisible Premium

one indivisible premium

a small applicance manufacturer in this state provides products around the globe. a customer in Switzerland is injured using the products. if the appliance manufacturer is found liable for the damages, why would its commercial general liability policy cover the customer's claim for bodily injury? a. the applicance manufacturer is negligent. b. the appliance was manufactured in the US c. the commercial liability policy extends rights to Switzerland d. the appliance manufacturer did not have a permit to sell globally

the appliance was manufactured in the US

what types of injuries could incur additional penalties and/or increased benefits paid by the employer a. the employer's willful failure to provide safety goggles b. loss of a limb while following safety procedures c. an injury that occurred while on a dangerous job site d. a fall that is the result of a slippery work place floor

the employer's willful failure to provide safety goggles

a golfer slices a tee shot and the ball goes through a house beside the fairway. the broken glass is paid for by.... a. the property coverage of the golf course b. the golfer's homeowners' liability coverage c. the homeowners' property coverage of the house d. the liability policy of the golf course

the golfer's liability coverage

if an insurance policy has the additional coverage provision, how does it affect the policy premium a. there is no additional premium b. premium will be recalculated when a specific loss covered by this provision occurs c. additional premium will be assessed. d. premium will be calculated on a pro rata basis based on the amount of additional coverage

there is no additional premium

Which of the following would be considered a covered auto on your personal auto policy? a. your farm wagon being towed by your pickup truck b. your pickup truck used for deliveries of your retail business c. yoru farm tractor d. your farm wagon being towed by your tractor

your farm wagon being towed by your pickup truck