Iowa casualty
a trucking company has a $1 million umbrella policy in place. The business owner agrees to maintain a 200/500/100 limit on auto liability, and a personal liability of $400,000. After an accident, the business is sued. Injuries are awarded to a single injured party in the amount of $300,000. It turned out that the business actually carried only 100/250/50 auto liability limits. what is the total amount the umbrella policy will pay?
$100,000
how long is a waiting period for workers compensation loss of earning benefits?
3 days
insurance licenses in Iowa are issued for
3 years
if a producer changes his address, the commissioner must be notified within
30 days
which of the following best describes a rebate?
A producer returning part of her commission to her client, as an inducement to buy
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
in a personal auto policy, underinsured motorist coverage applies when?
You are injured in an auto accident with another motorist who is at fault but has limits of insurance that are not adequate to cover your medical expenses
In personal auto policy (PAP), a covered auto includes all of the following EXCEPT
a van used in the delivery business
the obligation to compensate injured workers without regard to fault or negligence is known as
absolute liability
what is a sudden unplanned and unexpected event, not under the control of the insured, resulting in injury or damage that is neither expected not intended called?
accident
which of the following is not a valid reason for cancelling an auto policy once it has been in force for 60 days
age of the operator
under a commercial general liability policy, which of the following is NOT considered mobile equipment?
an automobile used as a company car by a real estate company
which of the following components is NOT part of a policy structure?
benefits
all of the following are regulated areas of the insurance industry EXCEPT
commissions
insurance producers can only receive commissions for insurance written with
companies that have appointed them to act as insurance producers
An insured believes that his insurer is not properly fulfilling its obligations regarding his policy. What section of the policy will give the insured more information about specific duties of the insurer?
conditions
how often is the commissioner of insurance required to examine domestic insurers?
every 5 years
Harold died in an accident at work, leaving behind a wife and an autistic child. For how long will the child's survivor benefits continue under the state's workers compensation law?
for the remainder of the child's life
An insurer incorporated under the laws of another state but doing business in this state is considered
foreign
the commissioner is appointed to a 4 year term by the
governor
which of the following is the cause of loss?
peril
In reference to insurable interest, which of the following is NOT an element of insurable risk
personal
An insurer's right to take possession of property after having paid for the loss is referred to as the right to
salvage
Which of the following is NOT a classification of a hazard?
speculative
when an insurer acquires the insured's rights against a third party for the purposes of receiving indemnification for loss, this is called
subrogation
after a hearing, who issues the written order resolving the factual issues presented in a hearing and stating what remedial action is necessary?
the insurance division
who must an insurer notify if it believes it has received a fraudulent claim?
the insurance fraud bureau
The insured's products under a commercial general liability policy does NOT include which of the following?
vending machines rented to others
When an insured's gardener was spraying weeds in the 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 legally liable for this damage. This is an example of
vicarious liability
medical benefits under workers compensation statutes are provided
without limit
if a cease and desist order is violated, the persons license may be revoked and he or she may be subject to a maximum fine of
$10,000
if a producer knowingly violates an insurance law, the producer maybe fined up to what amount per violation?
$5,000
During policy solicitation, an insurer exaggerates the financial condition of one of its competitors, and makes it sounds worse than it is. This is an example of an unfair trade practice of
defamation
To determine the actual cash value of an insured property what must be deducted from the current replacement cost?
depreciated value
after a hearing, if the commissioner finds that a producer is in violation of unfair business practices, his or her initial action will be to
issue and cease and desist order
statistical probabilities of loss for a particular class of insureds is best predicted when the insured group is
larger
policy limits are the maximum amount an insured is protected under the terms of the
policy
the defendant being releases on a surety bail bond is the
principal
an insurer intends to cancel a private passenger automobile policy because the insured did not pay his premiums. How many days' notice must be provided prior to cancellation
10
A temporary producer's license is valid for up to
180 days
The declarations section in a homeowners policy provides all of the following information EXCEPT
policy exclusions
the commercial general liability coverage Part A- bodily injury and property damage provides coverage for which of the following?
premises
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?
professional liability
In order to receive transportation expenses under the personal auto policy following damage to an auto caused by collision an insured must have
collision coverage
a sworn statement must usually be furnished by the insured to an insurer, an must include what information about the occurrence and the amount of indemnity claimed?
date and description
loss valuation is best described as the process of
determining the premium charged and the amount of insurance required on a specific property
If a car is stolen and left in a snow bank, causing the radiator to freeze and sustain heavy damage, is the damage covered by the auto policy?
yes, freezing exclusion is removed if the car is stolen
grant lost a hand in a work related accident. what is he entitled to receive, if anything, while he is taking rehabilitation classes in addition to disability and medical benefits?
$100 a week for up to 13 weeks
applications for a producer license must be accompanied by a licensing fee of
$50
If a producer knowingly violates the insurance code, the maximum aggregate penalty CANNOT exceed
$50,000 in a 6 month period
Using the pro rata method, if a property is covered by Company A for $20,000 and Company B covers the same property for $40,000, how much will Company A pay on a $24,000 loss? a. $20,000 b. 12,000 c. 8,000 d. 0
$8,000
How many days in advance must an insurer give a named insured a notice when cancelling an auto insurance policy for nonpayment of premium?
10 days
which of the following is indicated on a certificate of insurance/
Amounts and types of insurance
an insurer who transacts insurance in this state but whose articles of incorporation are registered in Canada is considered what type of insurer?
alien
In order to get a nonresident license in this state, a producer must
apply and pay a fee to a nonresident state that reciprocates
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 different, which of the following would most likely be used to settle the dispute?
arbitration
The transfer of a legal right or interest in an insurance policy is called
assignment
You are at fault in an auto wreck out of state. How does your company adjust?
at least to the minimum required by that state
an auto insurer may non renew an auto policy for which of the following reasons?
driving while intoxicated
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 caused of the accident. Who is required to pay for this loss?
manufacturer of the tire
What information is found in the conditions part of an insurance policy?
the description of the duties and obligations of the insured
what types of injuries could incur additional penalties and/or increased benefits paid by the employer?
the employers willful failure to provide required safety goggles
An insured has decided to never drive another vehicle and wants to transfer his auto insurance policy to his wife. What does the insured need to transfer the policy?
the written consent of the insurer
which method of dealing with risk is applied when insurance is purchased?
transfer
The purpose of purchasing an umbrella liability policy is to provide
excess insurance over the primary liability policy
which of the following is an example of an unfair claims settlement practice?
failure to promptly settle a claim when liability has been established
an insured has a personal auto policy with the following limits: 50/100/25. the number 25 refers to
property damage coverage
which type of damages is intended as a form of punishment for negligent, willful, or outrageous intent?
punitive
an insured was injured at work on June 1. what is the latest date that his employer must be notified of the accident if the insured is to retain his workers compensation benefits?
september 1
if a high risk individual seeks to obtain insurance coverage but is unable to do so through the general insurance market, wat type of insurance may they seek?
surplus lines insurance
what entity was created to protect insureds against insurer isolvency?
the Iowa insurance guaranty association
a small appliance manufacturer in this state provides products around the globe. a customer in Switzerland is injured using one of its 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?
the appliance was manufactured in the united states
all of the following are requirements for enrollment in the Iowa automobile insurance plan EXCEPT
the applicant has had a previous auto liability policy cancelled
which of the following is FALSE concerning liability coverage of a business auto policy?
the company will reimburse the insured for all loss and earnings
a couple noticed yesterday that several items of personal property were missing from their home. There has not been any apparent robbery committed, the items are merely missing and have seemingly disappeared mysteriously. the couple will
not be able to make a claim for the property since its considered to have my mysteriously disappeared
prior to paying a claimant under a professional liability policy, the insurer must
obtain the consent of the insured
among people in the same class and life expectancy, which of the following factors can be used to influence premium rates?
occupation
The other states' insurance section of a workers compensation policy provides coverage
only for those other states listed in the policy
which provision defines how the policy will respond if there is other valid insurance written on the same risk?
other insurance
which of the following would not be covered under the directors and officers liability coverage?
reimbursement for fines and penalties
when an insurer pays for the cost to exchange damaged property with new property of similar kind and quality, it is called
replacement cost
an insured was having a new home built. While digging the footings 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
which of the following drivers may be excluded from an automobile insurance policy that renews on January 1?
the named insured has his driver's license suspended for two days the previous November
which valuation method takes into consideration what a willing buyer would pay for an insured property?
market value
an example of an alien insurer doing business in this state is one formed under the laws of
mexico
which of the following is incorrect regarding the insurance guaranty association?
producers may stress its guarantees to customers in a sales position
a personal umbrella policy may act as excess over any of the following insurance coverage policies EXCEPT
auto collision coverage
A lender who conditions approval of a loan on the condition that the borrower purchase insurance from that lender may be guilty of
coercion
which of the following statements does not describe endorsements?
endorsements may only add coverage to a current policy, not remove
the federal act that provided more favorable benefits for interstate railroad workers by allowing the injured worker to sure the employer for negligence is the
federal employers liability act (FELA)
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
a driver can be excluded from an auto insurance policy for any reason if the exclusion is agreed to by the
insurance company and the named insured
Agents may be found guilty of defamation if they make a false statement that is intended to?
maliciously criticize another insurance company
an applicant for property insurance owns a building in which combustible materials are carelessly stored in the furnace room. From an underwriting standpoint, this risk would likely be considered a
morale hazard
M hired L to mow the grass on his lawn twice a month for 9 months of the year. M paid L $50 each time the grass is mowed. Is M required to provide workers compensation insurance?
no, this type of employment is specifically exempt
Which of the following terms means termination of an insurance policy at its expiration date by not offering a policy continuation or replacement?
non renewal
which of the following documents notifies the insurer of events that may lead to a possible claim?
notice of claim
which of the following is used to define any person, firm , or corporation appointed by an insurer that possesses the authority to transact insurance?
producer
The commissioner may examine an insurer's records
whatever necessary in order to enforce insurance laws and regulations
