Guarantee Exam P+C

10 days

when a hearing regarding insurance matter is requested, all parties affected must be notified within what time period of the hearing?

As soon as the policy is issued

when do binders expire?

The business income losses are payable for 12 consecutive months following the occurence.

which of the following statements is CORRECT regarding business income coverage under the business owners policy (BOP)?

HO-5

A homeowner has misplaced some of her insured personal property and has no idea what may have happened to it. Which HO policy form would cover such a loss?

Professional liability

A policy contains a consent to settle a loss provision, which requires the insurer to obtain the consent of an insured before the settlement of a claim. With this in mind, what kind of liability policy does the insured most likely have?

The insurer's chartered location or domicile

All of the following are considerations in determining which state's law applies when a worker is required to travel into another state and is injured while working in the other state EXCEPT

90% of the limit written

An Insured is the owner of a clothing boutique. She has a Floor Plan Merchandize Floater to cover the property that is financed until it is sold. At closing time a month ago, she noticed that 3 very expensive dresses had been stolen. However, she did not file a report to her insurance company until recently. How much will her insurer pay for their loss?

Misrepresentation

An insurance agent visits a potential client and explains various types of policies. The Customer Displays lack of interest, so the agent guarantees higher dividends than he knows would be possible. Which term describes what the agent has done?

$125,200

An insured has an auto policy with the limits of 100/300/50 and deductible of $1,000. He is involved in an auto accident and crashes into another driver's auto. The other driver is awarded $125,000 for his injuries and $25,000 for the damage to his car. The insured's vehicle has damage in the amount of $1,200. The total payment made under the insured's policy is...

Notice of Claim Form

An insured has extended coverage on her dwelling that includes coverage for vandalism and malicious mischief. One evening, she is sitting in her living room when she hears a crash and the sound of glass breaking. She runs to the door and discovers a brick has been thrown through her glass door. To inform her insurer of a possible claim, she fills out a form detailing the events leading to the loss. What is the name of the form

Manufacturer of the tire

An insured was involved in an accident that was caused by a tire blowing out. The insured was severely injured and incurred medical expenses of $100,000. The insured brought a recovery action against the manufacturers of the auto and the tires. The court held that the tire was the cause of the accident. who is required to pay for this loss.

$50,000

An insured was judged at fault in an automobile accident. He has the 100/300 bodily injury liability coverage. Three other individuals were injured in the vehicle hit by the insured. They were awarded damages of $150,000, $75,000, and $75,000. What amount, if any was not covered by his insurance policy?

The Thomases and Homeland will be considered co-claimants and receive loss reimbursement from Home Protection Insurance.

Homeland Housing Corp holds a mortgage on a property that John and Carol Thomas purchased. John and Carol have a Homeowners policy with Home Protection Insurance which has a mortgagee clause naming Homeland as a loss payee. If John and Carol suffer a fire to their home...

There is no additional premium

If an insurance policy has the additional coverage provision, how does it affect the policy premium?

A van used in the delivery business

In a Personal Auto Policy (PAP), a covered auto includes all of the following EXCEPT

Forced payment of billing for services rendered by any private insurer that "binds" coverage based on an employee's request for coverage.

Space Age Rockets makes model rocket supplies and has 12 employees. The company is located in Atlanta, GA. Georgia has compulsory workers compensation laws. Space Age's owner thinks that his company is too small and unprofitable to carry the workers comp plan mandated by the state. Possible consequences of noncompliance include all of the following EXCEPT.

Appraisal

The appraisers then agreed on a fair value without having to select an umpire. What condition did John Use?

Employee Theft

The commercial crime coverage that would cover losses resulting form the theft of money, securities, and other property by employees is...

Premises

The commercial general liability Coverage Part A - bodily injury and property damage provides coverage for which of the following?

A lawnmower the landlord owns and keeps at rented premises

The limited theft endorsement designed for a landlord excludes all of the following EXCEPT

Only for those other states listed in the policy

The other states' insurance section of a workers compensation policy provides coverage..

Any loss paid under Coverage B reduces the Coverage A limit of liability

Under Coverage B - other structures, a homeowners policy provides coverage for other structures on the residence premises. Which of the following statements is NOT true of this coverage?

Special and General

What are the types of compensatory damages?

When a community applies for the program

When does the federal emergency flood insurance program go into effect?

When loss payments equal the applicable limit of insurance

When does the insurers duty to defend a suit or claim end in a commercial general liability policy?

Benefits

Which of the following components is NOT part of a policy structure?

Limits of liability

Which of the following describes an insurer's responsibility for payment under a policy, as stated in the common policy provisions?

Endorsements may only add coverage to a current policy, not remove.

Which of the following does NOT describe endorsements?

Professional Liability

Which of the following is NOT available in a package policy?

Insuring Agreement

Which of the following is NOT found in the common policy declarations of a commercial package policy?

Insurance to value

Which of the following provisions is usually found in homeowners policies and provides a replacement cost settlement to policyholders who carry adequate insurance?

An 80% insurance to value requirement is in place

Which of the following statements is CORRECT regarding the replacement cost coverages under the business owners policy (BOP)?

Fire

Which of the following would be considered a peril?

Certificate of Insurance

Which of the following would be considered adequate proof of financial responsibility?

Sue Ellen and her husband work a night shift together. Sue Ellen claims that her husband hit her at work during a fight, causing injuries that require medical treatment.

Which one of the following is NOT a compensable injury?

Yes, Medical payments coverage also applies off the insured premises

While engaged in a pick up soccer game in the neighborhood park, the insured collides with another player, breaking his nose. Would the insured homeowners medical payments cover the injury?

Major Cause

regarding workers compensation, what term is given to a situation that is more than 50% of the cause of an injury?