Guarantee Test Final - P&C
D.) the time deductible
The elimination period in a disability income policy is known as? A.) the probationary period. B.) corridor deductible C.) copayment D.) the time deductible
A.) replacement cost basis
The equipment breakdown coverage form values loss on a? A.) replacement cost basis B.) Valued basis C.) stated amount basis D.) Actual cash value basis
A.) physical damage
The individual names insured endorsement offers liability coverage to the sole proprietor of a business and his or her family members. Which coverage is also provided under the individual named insured endorsement of a commercial auto policy for owned passenger vehicles and non owned vehicles? A.) physical damage B.) medical payments C.) breaded coverage D.) Mobile equipment coverage
C.) Vending machine rented to others
The insured's product under a commercial general liability policy does NOT include which of the following? A.) warranties made with respect to the fitness or quality of the product. B.) any goods or products manufactured by the insured. C.) Vending machines rented to others. D.) containers furnished in connection with the product.
C.) the LLC is designated as the named insured.
The members of a LLC are insured under business owners policy if? A.) A single individual member of the LLC is listed as the named insured B.) Members of a LLC cannot be insureds under a BOP C.) the LLC is designated as the named insured. D.) Each individual is listed as named insured on the policy.
D.) assignment
The transfer of legal right is called? A.) subrogation B.) rescission C.) liability D.) assignment
B.) 18 months
To be eligible under HiPPA regulations, for how long should an individual converting to an individual health plan have been covered under the previous group plan? A.) 63 days B.) 18 months C.) 12 Months D.) 3 years
C.) 1,250,000
To provide prearranged rides for transportation network company, a driver must have primary liability insurance coverage for at least? A.) 500,000 B.) 1,000,000 C.) 1,250,000 D.) 1,500,000
A.) Group of one or more
Under HiPAA portability, which of the following are not protected under required benefits. A.) Group of one or more B.) Self - insured C.) pregnant women D.) Mentally ill
B.) Insurer insolvency
What does the Guaranty association guard against? A.) Rebating B.) Insurer insolvency C.) Insurance Fraud D.) Double indemnity
D.) an automobile used as a company car for a real estate company
What is Not considered mobile equipment under the commercial general liability policy? A.) the department of transportation resurfacing equipment B.) A combine used on a farm C.) bulldozer D.) an automobile used as a company car for a real estate company
B.) the uncertainty or chance of loss
What is risk? A.) An event that increases the amount of loss B.) the uncertainty or chance of loss C.) the certainty of loss D.) The cause of loss
C.) Insurance Information and enforcement system.
What is the name of the New York DATA base that tracks registered car on policies? A.) DMV B.) Comprehensive motor vehicle insurance reparation act. C.) Insurance Information and enforcement system. D.) New York Automobile insurance plan.
A.) to establish financial responsibility requirements for the interstate motor carries.
What is the purpose of the motor carrier act of 1980? A.) to establish financial responsibility requirements for the interstate motor carries. B.) to prohibit foreign motor carrier to operate in interstate commerce. C.) to provide auto insurance to motor carriers who cannot obtain it on a regular marker. D.) To establish financial responsibility for personal and commercial autos
A.) 24 hours
What is the waiting period for transportation expenses coverage for a loss other than theft? A.) 24 hours B.) 48 hours C.) 12 hours D.) no waiting period
C.) in the state workers compensation law itself
When reviewing a standard WC and employers liability policy, the limits of coverage are described in a part one of the policy. the dollar limits of the benefits provided are stated.. A.) in line item 3/A of the policy information page B.) in paragraph 1 of part one as directed by law C.) in the state workers compensation law itself D.) on the face of the policy declaration.
D.) they are covered if they are used to replace previously owned auto with that coverage.
When symbol 7 is provided, which of the following statements is true with regard to newly acquired autos? A.) they are covered only until the end of the policy term. B.) they are not covered until the insurer is notified C.) They are automatically covered only for 30 days. D.) they are covered if they are used to replace previously owned auto with that coverage.
B.) Medical payments are limited
Which is not true of a workers compensation coverage? A.) to offers rehabilitation benefits B.) Medical payments are limited C.) Medical payments are unlimited D.) It offers death benefits
A.) percentage of loss
The deductible under earthquake coverage is stated as what? A.) percentage of loss B.) Flat dollar amount C.) Percentage of the policy premium D.)Half of policy premium
D.) 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? A.) HO-2 B.) HO-3 C.) HO-4 D.) HO-5
B.) Severability
A homeowners policy condition that states the insurance applies separately to each insured is known as? A.) payment of claim B.) Severability C.) Split Limit D.) Indemnity
A.) An additional 5% of the policy limit may be paid.
A house insured with a homeowners policy has been blown away by a tornado and must be completely replaced. Which of the following is true regarding debris removal? A.) An additional 5% of the policy limit may be paid. B.) Because the full policy limit must be paid for the house, there will be no coverage. C.) if there is the debris removal endorsement, it will be covered. D.) HO policies do not cover debris removal
C.) Auto collision Coverage
A personal Umbrella policy may act as excess over any of the following EXCEPT A.) Auto liability coverage B.) Comprehensive Personal Liability C.) Auto collision Coverage D.) Homeowner Section II Coverage.
D.) professional liability
A policy contains a consent to settle a loss provision, which requires the insurer to obtain consent of an insured before the settlement of a claim. What kind of liability does the insured have? A.) excess Liability B.) protective liability C.) errors and omissions D.) professional liability
B.) Higher Limits of Coverage for fine arts items
A scheduled personal property endorsement will be used to insure A.) Personal Items at their actual cash value B.) Higher Limits of Coverage for fine arts items C.) High value items only within the US D.) Personal vehicles used by travelers anywhere around the world.
C.) Securities
According to the Businessowners policy definitions, which of the following does not mean Valuable papers and records? A.) Drawings and maps B..) Inscribed deeds c.) securities D.) Manuscripts
C.) 80%
According to the meta level classification of health plans, what percentage of health cost will be covered under a Gold plan. A.) 50% B.) 60% C.) 80% D.) 100%
D.) High Premiums
All of the following are features of catastrophic plans except? A.) Out of pocket costs B.) high deductible C.) essential benefits D.) High Premiums
C.) fiduciary liability policy paid by the pension fund.
An audit revealed the administrator for a pension plan has made investments that were not consistent with the risk tolerance set forth in the plan for its members. The earnings for the past year are substantially below the average comparable funds. the governing board wants to take action against administrator. what type of commercial liability would the board need to provide for this risk? A.) Personal injury liability B.) Fiduciary liability by the administrator C.) fiduciary liability policy paid by the pension fund. D.) Employee dishonesty bond.
D.) an insured suffers a relapse of a prior disability with the 6 month of the install covered disability
An elimination period does not have to be satisfied for a disability in which of the following? A.) an insured suffered the disability from the results of active duty in the army B.) an insured is disabled from work related accident C.) an insured contracts and incurable disease D.) an insured suffers a relapse of a prior disability with the 6 month of the install covered disability
D.) 125,200
An insured has an automobile policy with the limits 100/300/50 and deductible of 1,000. He is involved in an accident with another driver. The other driver is awarded $125,000 for his injuries and $25,000 for the car. The insured vehicle has damage of $1,200. what is the total payment made by the insurance company? A.) $126,200 B.) 100,200 C.) 150,200 D.) 125,200
D.) written consent by the insurer.
An insured has decided to never drive another vehicle again and wants to transfer the auto policy into his wife's name. What does the insured need to transfer to the policy? A.) an auto policy cannot be transferred. B.) Nothing, because the wife is automatically and insured C.) The written consent of all the insureds covered by the policy. D.) written consent by the insurer.
D.) 1,050
An insured rents out a bedroom in his home for $50 a week. there was a fire and the insured had to stay in a hotel for $900. For three weeks he did not have get any rent money from the renter. How much will his policy cover under coverage D of H0-3? A.) $150 B.) 300 C.) 900 D.) 1,050
A.) fraternal insurer
An insurer that operates for one or more social, educational, charitable, benevolent, or religious purpose for the benefits of its members is known as? A.) fraternal insurer B.) mutual insurer C.) Reciprocal Insurer D.) Stock Insurer
A.) 1. provides coverage for any auto
Business auto coverage applies only to those autos that are identified as covered audits in the declaration boy entry of appropriate numerical symbol. Which symbol affords the broadest coverage. A.) 1 B.) 2 C.) 7 D.) 9
C.) Pollutant
Businessowners liability coverage automatically includes all of the following liability coverages except? A.) Host liquor B.) Product C.) Pollutant D.) Contractual
C.) An insureds 14 year old was throwing rocks at the neighbors house and broke windows.
Cover E ( Personal Liability) and/or coverage F (medical payments to others) would respond to a claim arising from all of the following situations except? A.) an insured boat stored in the garage slips off support and injures visitors. B.) Insured's dog left in the care of a friends bites a salesman. C.) An insureds 14 year old was throwing rocks at the neighbors house and broke windows. D.) maid slips and falls down stairs breaking her leg.
C.) Coverage for loss of use.
Coverage C in Homeowners policy offers all of the following except? A.) Coverage for property to others B.) coverage for property location at another residence premises. C.) Coverage for loss of use. D.) Worldwide coverage
A.) residence employee who is injured
Coverage F under homeowners would cover? A.) residence employee who is injured B.) a tenant who is injured C.) A family member residing in the premises D.)The insured for injuries sustained while working at home
A.) damage claimed by third parties.
Employers liability coverage under a workers compensation policy includes? A.) damage claimed by third parties. B.) injury occurring outside the US C.) Punitive damages awarded because a worker was employed in violation of law. D.) injury caused intentionally
B.) Bodily injury
Equipment breakdown coverage form provides coverages for all of the following EXCEPT. A.) Damage to property of others in the insured's care and custody B.) Bodily injury C.) Expediting Expenses following a covered loss D.) Damage to the insured property.
C. Riot
For additional premium , the extended coverages written on the basic form dwelling policy would cover which of the following? A.) glass breakage B.) fire C. Riot D.) Vanalism
B.) a retail sales operation run by the insured from their garage.
Home owner policies permit all of the following indent occupancies EXCEPT? A.) Bookkeeper service with one accountant B.) a retail sales operation run by the insured from their garage. C.) knitting lessons taught to no more than three students on a premises at a time D.) two chair barber
B.) it transfers the risk to all persons insured
How does insurance distribute the financial consequences of individual losses? A.) it transfers the risk to a small number of persons insured B.) it transfers the risk to all persons insured C.) it retains the financial consequences D.) it transfers the risk to associates of the insured.
D.) 72 hours
How soon does the period of restoration for business income coverage begin after direct loss? A.) immediately B.) 24 hours C.) 48 hours D.) 72 hours
C.) the underwriter approves the application
If an applicant submits the initial premium with an application, which action constitutes acceptance. A.) The producer delivers the policy B.) the insurance company receives the application and initial payment C.) the underwriter approves the application D>) The applicant submits a statement of good health
B.) 250 a day, not exceeding $25,000
If any authorized entity fails to file an annual financial solvency statement or does not reply to a written inquiry within 30 days. they are subject to a penatly up to? A.) 100 per day, not exceeding $5000 B.) 250 a day, not exceeding $25,000 C.) 300 a day, not exceeding 25,000 D.) 500 a day, not exceeding $50,000
B.) The insurer will be reimbursed for the excess cost by the NFIP.
If the premiums collected by an insurer participating in the WYO Flood Program are insufficient to cover losses, which of the following would be true? A.) federal insurance administration will remove the insurer from the NFIP B.) The insurer will be reimbursed for the excess cost by the NFIP. C.) The insurer must cover the loss out of its surplus. D.) the insurer must apply for disaster relief funds.
C.) A Partial premium refund
In a participation plan, the insured may be eligible for which of the following? A.) lower premium B.) guaranteed dividends C.) A Partial premium refund D.) increase in insurance over time
A.) Judgement rates
Insurance rates developed by the underwriter based on his skills and experience instead of actuarial analysis are know as? A.) Judgement rates B.) Merit Rates C.) Experience rates D.) Manual rates
A.) yes
Is mental anguish covered under the personal and advertising injury liability coverage form? A.) yes B.) no
B.) 1 year
NFIP Flood Insurance policies have a term period of? A.) 6 months B.) 1 year C.) 2 years D.) 10 years
B.) Limited Peril Coverage
Section III of the business auto policy provides physical damage coverage. All of the following are physical damages that me be selected coverages. A.) Collision Coverage B.) Limited Peril Coverage C.) Specified causes of loss coverage D.) Comprehensive Coverage
D.) utility services
The broad cause of loss form in the commercial property policy contains three perils in addition to the basic form perils. Which of the following is NOT one of those perils? A.) Water damage B.) Weight of snow, ice and sleet C.) falling object D.) utility services
D.) Employee Theft
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 and alteration C.) Inside premises - Theft money and securities D.) Employee Theft
A.) Premium Rates
Which of the following does not need to be included on the first page of Medicare Supplement policy? A.) Premium Rates B.) Renewal Provision C.) Continuation provision D.) The company right to change premium based on the policy holders age
C.) Contractual Liability
Which of the following exposures is not covered under the garage liability coverage form? A.) Products and completed operations B.) auto liability C.) Contractual Liability D.) Premises and operation liability
C.) A producer previously licensed in NJ who is apply in NY 120 days after being a resident of NY
Which of the following individuals must pass the written examination to be licensed as an insured? A.) A Ticket selling airline rep for one time insurance of baggage or accidental insurance. B.) an applicant who passed the written examination for an issuance agents license in the past if he applies within 2 years following the date of license termination. C.) A producer previously licensed in NJ who is apply in NY 120 days after being a resident of NY D.) non resident licensee currently licensed in another state
B.) it is written within the policy.
Which of the following is NOT true of the agents implied authority? A.) it is given by the insurer but not communicated. B.) it is written within the policy. C.) It is assumed by the agent in order to transit business. D.) it is incidental to express authority.
D.) comparative negligence
Which of the following is a statutory defense? A.) Assumption of Risk B.) Intervening Cause C.) Contributory negligence D.) comparative negligence
B.) NAIC
Which of the following is not one of the independent rating services that publishers guides to insurance companies financial integrity? A.) Moodys B.) NAIC C.) Fitch D.) AM Best
D.) notify the insurer when the insured has filed for bankruptcy.
Which of the following is not required of the insured in the event of a loss? A.) Authorize the insurer to obtain records and assets in the investigation. B.) Notify the insurer as soon as possible of the possibility of a claim C.) immediately record the specifics of any claim and notify the insurer D.) notify the insurer when the insured has filed for bankruptcy.
D.) they may own shares in the insurers represent
Which of the following is not true regarding insurance consultants? A.) they offer insurance advise to the public for a fee B.) they are required to pass a written examination C.) the superintendent must regonzie the candidate as trustworthy and competent D.) they may own shares in the insurers represent
D.) it would automatically cover all losses as they occur.
Which of the following statements is NOT true of a commercial umbrella policy? A.) it can be issued with a professional liability policy. B.) it would provide excess insurance over an existing policy. C.) it provides protection as a primary coverage where there is non other existing coverage. D.) it would automatically cover all losses as they occur.
A.) the business income loss are payable for 12 consecutive months following the occurrence.
Which of the following statements is correct regarding business income coverage under the business owners policy? A.) the business income loss are payable for 12 consecutive months following the occurrence. B.) the business income coverage is subject to coinsurance limitations of 50% C.) the business income has an aggregate dollar amount D.) the business income coverage has a monthly limitations and set benefit period.
B.) the insureds limit of liability is 25% of the sum of the direct loss payment plus the deductible amoun
Which of the following statements is correct regarding debris removal coverage under the businessowner policy? A.) the debris is covered property must be reported in writing within 270 days of the loss B.) the insureds limit of liability is 25% of the sum of the direct loss payment plus the deductible amount C.) it pays for clean up or removal of pollutants D.) it pays for removal of debris of the insured's vehicle.
C.) symbol 7
Which of the following symbols in a business auto policy indicates that coverage for newly acquired vehicles applies if the insurer already covers all autos? A.) symbol 1 B.) symbol 2 C.) symbol 7 D.) symbol 6
C.) Real property
Which of the following types of property is not movable? A.) transferable property B.) Fixed property C.) Real property D.) Firm property
A.) damage to property owned by the insured
Which of the following would NOT generally be included in the supplementary payments portion a liability policy? A.) damage to property owned by the insured B.) cost of first aid C.) expenses the insured incurs, as part of defense at the company's request. D.) loss of earnings.
C.) full time maid
Which of the following would be eligible for homeowners coverage F -Medical payments in the event of injury at the insureds premises? A.) A guest who was hurt at the insureds party five years ago? B.) a person regularyly residing on the premises C.) full time maid D.) the named insureds spouse.
D.) Yes, medial payments coverage also applies off the insureds premises.
While engage in a pick up soccer game, the insured collides with another player, breaking her nose. Would the insured's homeowners medical payment cover the injury? A.) No, because even though it was a pickup game, it is organized. B.) No, personal liability applies on premises only. C.) No, the insured was not negligent. D.) Yes, medial payments coverage also applies off the insureds premises.
A.) 3 days
an insurer must notify the consumer in writing that an investigation consumer report has been requested, with how many days of the initial request? A.) 3 days B.) 10 days C.) 30 days D.) 5 days
B.) 1000
before an adjuster licesne may be issued, an applicant must file a surety bond with the Superintendent in the amount of? A.) 500 B.) 1000 C.) 3000 D.) 5000
C.) Yes, freezing exclusion removed when stolen
if a car is stolen and left in a snow bank and the radiator freezes, is the damaged covered by the auto policy? A.) No, freezing is never covered B.) No, theft is never covered C.) Yes, freezing exclusion removed when stolen. D.) Yes, there is no exclusion for freezing.
B.) 2,500
if an individual willfully violates provisions of the fair credit reporting act, what is the maximum civil penalty? A.) 1,000 B.) 2,500 C.) 5,000 D.) 10,000
B.) while it is in any resident premises occupied by the insured
under coverage c and at the request of an insured, personal property of guest or residence employee is covered ? A.) only while on residence premises. B.) while it is in any resident premises occupied by the insured. C.) anywhere in the world D.) while it is in any residence occupied by a named insured.
C.) date the property is repaired
when does the period of restoration for business income coverage end in a Businessowners policy? A.) 72 hours B.) 30 days C.) date the property is repaired D.) the date the insurer approves the claim