Guaranteed Exam part 2
A liability policy that provides increased limits and expanded coverage over underlying casualty coverages is called
Umbrella
if an insurer declares that the value of a loss is $5,000, but the insured is confident that the amount of the loss is substantially diff. who would likely settle the dispute
arbitration
Where to check to understand what perils are not insured against
exclusions
Inspection and surveys as common policy condition
grants the insurer the right to make inspections regarding issued insurance
An automobile policy has limits of 100/300/50. The number 100 means
maximum limit for bodily injury claims that can be paid for one person
NJ Auto Full Insurance Underwriting Association does NOT offer
more than 500,000 for bodily injury
Twin brother offers to take exam since brother can not pass it, the commissioners action will be
revoke the license
if it will take 30 days to get a policy in-force on the cars to be sold. one option could be
to get a binder from the planned insurer
When Jane and her insurer could not agree on the amount of liability loss after her accident, the settlement was submitted to someone whose decision was then binding on both parties. What condition did Jane use.
Arbitration
An insured owns an automobile liability policy with bodily injury limits of $200,000 and an umbrella liability policy with a limit of 1,000,000. The insured is involved in an automobile accident and is found liable for injuries totaling $900,000. How will benefits be paid?
Auto liability= $200,000 and Umbrella Liability= $700,000
Which of the following commercial auto coverages provides protection for most commercial auto exposures except truckers, garages, and motor carriers.
Business auto coverage
How is a professional liability policy written
Claims-made
Power to conduct investigations and hold hearings
Commissioner
Two workers working in manufacturing, one gets hurt due to the others negligence:
Company is responsible for workers compensation clause that will ensue
The supplementary payments section of the commercial general liability policy would cover
Court costs. up to $250
An insured reads his policy and is under the impression that a particular loss will be covered. The insurer, however, insists that the loss will not be covered. What authority will settle this dispute?
Court system
Other than collision would cover financial losses due to
Damage to an insureds car caused by wind or hail. falling objects, fire, theft, windstorms, hail, and vandalism not covered
Covered by auto other-than-collision (comprehensive) coverage
Electrical Equipment
The Commercial Crime Coverage that would cover losses resulting from the theft of money, securities, and other property by employees is
Employee theft
Which of the following statements is correct regarding domestic coverage in a homeowners policy
Every homeowners insurance policy issued in NJ must provide coverage against liability from any injured domestic servant or household employee and dependents
Casualty insurance policies that have been in effect for a period of 90 days or more, may be cancelled for all of the following specific allowable reasons except
Excessive claims
Which of the following would be considered a peril
Fire
Which of the following injuries may be covered under Coverage C- Medical Payments of a commercial general liability policy
Injuries to a member of the general public that occurs on premises
if named insured fails to elect tort option in writing for PIP
Limitation on lawsuit
An example of an alien insurer doing business in this state in one formed under the laws of
Mexico
An applicant for property insurance owns a building in which combustible materials are stored in the furnace room. From an underwriting standpoint, this risk would likely be considered a
Morale Hazard
The other states insurance section of a workers compensation policy provides coverage
Only for those states listed in the policy
What injury is less physical than those covered under bodily injury liability
Personal Injury Liability
The defendant being released on surety bail bond is the
Principle
Which of the following could most likely be issued a resident producer license
Sally lives in a neighboring state but has an office in New Jersey
Workers compensation statues require employers to meet capital reserves requirements sufficient to pay any claims that might arise. Employers can meet such obligations through all of the following except
Second Injury Funds Programs
In contrasting stock insurers with mutual insurers, Which statement is true
Stock insurers are owned by the shareholders and issue nonparticipating policies
There is a particular type of insurance that no insurer in NJ offers. In order for the New Jersey residents to obtain this insurance, they will need to be covered by
Surplus lines insurers
Rates for the NJ personal Auto Insurance Plan are set by adjusting -------------- upward by a specific percentage for insureds having 1 or more moving violations, 4 or more points, or an at-fault accident within the preceding 3 years.
Territorial base rates
While delivering the morning mail, a postman slipped and fell on the insured's pathway injuring his back and head. The insured will be liable for
The bodily injuries sustained by the postman
An insured was having a new home built. While digging the footing for the foundation, the contractor struck a solid rock formation and found that was necessary to blast the formation in order to remove the rocks. The force of the blast broke several windows and some chinaware in a neighbor's home several blocks away. Who pays for this damage?
The contractor
Who assumes absolute liability for any injury suffered by an employee at work
The employer
Who pays for benefits under a Workers Compensation Program
The employer of the employee who is injured
Who would not be covered by an insured uninsured motorist coverage
The insured causes a head-on-collision with the car of an uninsured motorist
An insured was backing his car out of the driveway and hit a fire hydrant. The automobile sustained $1,300 of damage to the bumper. The insured's auto policy has a $500 deductible. Which of the of following is true
The insured is responsible for the first $500 of any claim that he makes on his policy
Not covered by an insured's uninsured motorist coverage
The insured's car is hit by someone whose auto insurer is insolvent.
Penalty for violating cease and desist order
$5,000
An insured has an automobile policy with limits of 100/3000/50 and a 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. Total payment made under the insureds policy is
125,200
Within how long of completing an approved prelicensing education course must a candidate submit a license application
2 year
Required limit of liability for property damage in auto policies in NJ
5,000
The commissioner conducts an investigation regarding a possible misconduct. At a hearing, the licensee is found guilty for knowingly violating a cease and desist order. the penalty is
5,000 for each violation
An insured owns 2 automobiles that are insured under a single policy. Each auto has uninsured/underinsured motorist coverage limits of 250/500/100. in the event of an accident, what is the total amount of bodily injury coverage available to the insured
500,000
In NJ, if the insurer chooses not to renew a casualty policy on the anniversary date, The insured must receive notice how many days before the expiration date of the coverage
60 days
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 contractual liability policy
Personal auto policy (PAP) does not include
A van used in the delivery business
Which of the following would be added for coverage under a property policy by an endorsement
Additional insureds
What is indicated on a certificate of insurance?
Amounts and types of insurance
covered by the medical payments coverage in a personal auto policy
An insured slams a hand in a car door while getting in, breaking the hand
