Maryland property and casualty
U has decided to install an automatic sprinkler system in his building in order to receive a discount under the business owner policy this endorsement is known as A) protective safeguards B) Utility services Direct damage C) Utility services time element D) Special endorsement discount
A. protective safeguards
All of the following are main elements of a commercial package policy except A) liability B) Common declarations C) Coverage parts D) Common condition
A. liability
An insurer may cancel a business owner policy with just five days notice for all of the following activities except: A) non-payment of premium B) Insured building is vacant for more than 60 days C) There has been no water or electrical connection to the insured building for more than a month D) The insured has not paid the property taxes on the described property in more than one year
A. non-payment of premium
If the landlord and inappropriately enters the apartment of a tenant with no legal right to do so this is an example of what kind of injury to the tenant? A) personal B) Property C) Real property D) Bodily
A. personal
The insured under an HO3 has to keep more than 80% of the replacement cost of her insured dwelling in force at the time of a covered loss. The ACV of the carpeting is $5000 It can be replaced for $3500 how much will the policy pay for the damaged carpeting?
$3500
R has endorsement HO 04 55 identity theft expense on her Homeowners policy and has had identity theft issue pertinent to her business. Because of the events R has lawyer expenses of $27,000 according to her policy how much her insurer pay? A) $0 B) $10,000 C) $14,750 D) $15,000
A. $0
Under trailer interchange supplementary payments the maximum amount for traffic bonds is? A) $0 B) $1000 C) $2000 D) $3000
A. $0
Under a BOP policy The limit paid on damage to an attached outdoor sign is A) $1000 B) $5000 C) $10,000 D) $20,000
A. $1000
Free from particular average coverage A) Frees the shipper from minor losses B) Does not cover theft C) Covers partial losses D) Does not cover earthquakes
A.Frees the shipper from minor losses
Which of the following perils are covered by the HO3 and HO5 policies?
An earth movement caused by an explosion
Jay has rented a room in his home to a tenant And it's helped furnish the rented room with the carpet refrigerator and so far costing him $4000 less than one month later is furnishings were destroyed in a small fire. How much will J collect from the HO2 policy for his loss? A) $0 B) $1000 C) $2500 D) $4,000
C. $2500
General average coverage A) frees the shipper from minor losses B) Does not cover theft C) Covers partial losses D) Does not cover earthquakes
C. Covers partial losses
The maximum amount paid by a commercial building and business personal property form for pollution cleanup or removal is A) $0 B) $1000 C) $2500 D) $10,000
D. $10,000
Owned autos acquired after the policy begin will be covered if which of the following symbols are entered by item 2 in the declaration. A) 8 B) 9 C) 7 D) 19
D. 19
. Which of the following is not a form of coverage available under a commercial building in business personal property form? A) Basic B) Broad C) Special D) Earthquake
D. Earthquake
All of the following will be excluded under a business owner policy except A) floating water craft B) Illegal contraband C) Computers permanently installed D) Fire extinguisher recharge
D. Fire extinguisher recharge
If a business is concerned with repetitive coverages and paying more than once for the same coverage the commercial package policy solve this issue: A) by removing the duplication with commercial floater coverage B) By providing substantial discounts when coverage is duplicated C) By recommending the business purchase a business owner policy instead D) Through interline endorsements
D. Through interline endorsements
Inland marine forms which have been preapproved for sale by a department of insurance are referred to as A) approved forms B) Pre-approved forms C) Filed forms D) Uncontrolled forms
D. Uncontrolled forms
If a business intends to claim debris removal under a commercial building and business personal property for my must be reported to the insurer A) immediately upon loss B) Within 30 days from the date of physical loss C) Within 90 days from the day of physical loss D)Within 180 days from the date of physical loss
D. Within 180 days from the date of physical loss
Which of the following would be considered scheduled property under the endorsement HO 04 61
Fine art
Which of the following statements are not true regarding the limited fungi, wet or dry rot or, bacteria coverage
HO 04 26 endorsement is used with HO3 forms
In a property Contract all the following may provide a form of coverage A except A) H02 B) H05 C) HO4 D) H06
HO4
J's winter holiday decoration business has extreme fluctuations And his inventory throughout the calendar year. As J's Agents which of the following endorsements would you recommend J potentially add to his coverage?
Peak season limit of insurance with value reporting form
H is reading through his HO4 policy and keeps seeing the language you and your. under HO contract definition you and your refers to A) The insured B) The insured and any legal spouse C) The insured and the spouse of the insured who lives at any address D) The insured and the spouse of the insured who lives at the same address of the insured
The insured and the spouse of the insured who lives at the same address of the insured
Bodily injury is defined as
bodily harm, sickness, and disease
Which of the following commercial building and business personal property form perils is covered by the broad form but not by the basic form? A) Weight of snow ice or sleet B) Volcanic action C) Sinkhole collapse D) Sprinkler leakage
A. Weight of snow ice or sleet
All the following are covered under garage keepers form physical damage coverage except A) fire B) Explosion C) Hail D) Theft
C. Hail
If valuable papers are destroyed on the premises by a loss covered by a business owner policy what is maximum dollar amount that can be collected to restore papers? A) $10,000 B) $7500 C) $5000 D) $2500
A. $10,000
Which of the following endorsements extends coverage to home daycare centers? A) HO 04 97 B) HO 04 90 C) HO 04 55 D) HO 04 27
A. HO 04 97
A CPP policy must: A) have at least two coverage forms B) None of the answers listed C) Have at least one coverage form D) Include professional liability
A. have at least two coverage forms
Which of the following losses would require the insured to pay a deductible required by a business owner policy? A) Highwinds do damage to the roof of the describe building B) The insured suffers a covered loss that results in receiving payments from his business income and extra expense coverages C) The insured has a covered loss that results in $5000 for fire extinguisher recharge expenses D) The insured receives $1000 bill for a fire department service charge
A. Highwinds do damage to the roof of the describe building
Which of the following causes of loss would a common carrier be liable for the property loss of goods they are transporting that are owned by another party? A) The driver for the carrier takes a dinner break and does not lock the track door allowing thieves to steal property during the drivers dinner break B) The goods are destroyed well on a truck of a common carrier that is destroyed in a flash flood from a river C) The shipper of the goods has not packaged them properly and when they arrive they are broken and worthless D) The goods are taken by the government in a seizure by the Center for disease control
A. The driver for the carrier takes a dinner break and does not lock the track door allowing thieves to steal property during the drivers dinner break
Under a CGL policy coverage B if The insured advertises services and the ad does not harm another which of the following actions would not be covered? A) The insured has intentionally written several untrue and damaging facts about a local business competitor B) The ad has revealed private information about someone C) The insured has engaged in copyright infringement D) The Insured has used a slogan which is owned by another company
A. The insured has intentionally written several untrue and damaging facts about a local business competitor
BP 04 56 endorsement is utilized for businesses that are more susceptible to loss when utility services are interrupted because of the exclusion in the BOP caused by loss resulting from utility service and power interruption that originates away from the premises of the insured. This endorsement is known as A) Utility services direct damage B) Utility services time element C) Protective safeguards D) None of the answers listed
A. Utility services direct damage
Which of the following scenarios best describes the running down Clause? A) V's ship collides with another vessel B) B forgets to anchor his ship and it is floating away he jumps in the ocean to bring it back C) J hires a pilot to navigate the vessel into a difficult port D) K is about to take an adventure on the open sea
A. V's ship collides with another vessel
According to section 3 of BOP the insurer can make warranted changes to premium (subject to an audit) A) after the close of the coverage period B) Before the close of the coverage period C) During underwriting only D) Within 45 days of a policy being issued
A. after the close of the coverage period
For coverage to exist for losses to business personal property under a business owner policy the property must be located A) at the property described or in the open or in a vehicle that is within 100 feet of the premises B) In the building owned by the insured but it's not listed in the declarations of the policy C) If the property described or in the open but not in a vehicle within 100 feet of the premises D) At the property described or in the open or in a vehicle that is within 150 feet of the premises
A. at the property described or in the open or in a vehicle that is within 100 feet of the premises
The nationwide definition of property eligible for coverage under inland marine includes all the following except A) buildings B) Instrumentalities of transportation like a bridge or tunnel C) Property in the care custody and control of a bailee D) Personal property such as jewelry or furs
A. buildings
Which of the following are reasons a client would add commercial endorsement CP 04 05? A) damage due to ordinances or law can add 50% or more to the loss of a claim B) Only perishable stock is covered in this form C) The insured is afraid of power outages D) All of the answers listed
A. damage due to ordinances or law can add 50% or more to the loss of a claim
Under a business auto policy the categories of covered autos are found in which part of the contract? A) declarations B) Conditions C) Insuring clause D) Exclusions
A. declarations
A heating and cooling company who will be affirming central air conditioners at a job site should A) purchase and installation floater because the installer is responsible for the property until it actually installed and becomes part of a structure ( Real property) B) Purchase of contractors equipment floater which will cover all personal items installed in a building until the owner takes for possession of the property after taking property ownership C) Just sit tight as these items are covered under a typical business property like a BOP or commercial building policy offers D) Purchase a commercial article floater for personal property that is destined to become part of real property
A. purchase and installation floater because the installer is responsible for the property until it actually installed and becomes part of a structure ( Real property)
Which of the following is not true regarding cargo insurance A) this coverage extends to the vessel's owner B) Coverage extends to loading and unloading goods piracy and some weather conditions C) Shipment owners are covered in transit until the goods are delivered to the buyers D) Cargo insurance is not covered under a hull policy
A. this coverage extends to the vessel's owner
The statements which follow concerning the claims made coverage trigger are true except: A) The claim can take place anywhere in the world and it's not limited to any specific geographical area B) The lost must occur on or after the retroactive data C) The claims made coverage trigger can apply to both bodily injury and property damage loss D) The claim must be first made either during the policy period or during the extended reporting period
A.The claim can take place anywhere in the world and it's not limited to any specific geographical area
J has purchased an auto dealership and is concerned about the type of liability coverage this type of business carries. The type of coverage that J will need for his new business is: A) garage coverage form B) Commercial auto part D C) Hired auto coverage D) CGL
A.garage coverage form
Section 1 of our homeowners policy provides : A)dwelling and detached structures on the insured's premises B) Personal property of the insured C) Loss of use D) All of the answers listed
All of the answers listed
The special form of commercial building and business personal property form dishonest or criminal acts by employees is not covered. Which of the following is most likely reason for this exclusion? A) it is available as an endorsement to the special form B) It is a cause of loss not meant to be covered under property insurance but is instead a casualty policy loss C) It is covered under the basic form D) It is covered under the broad form
B. It is a cause of loss not meant to be covered under property insurance but is instead a casualty policy loss
Which of the following are correct regarding additional supplementary payments under a garage coverage form? A) $10,000 in expenses incurred by the insurer B) $3000 in bail bonds C) Do you $250 per day for missing wages for an insured to give deposition in court D) Interest on judgment so long as it is after the entry of the judgment
B. $3000 in bail bonds
The most common distribution of extra expense funds during the first three months following is covered direct loss is A) 20/40/40 B) 40/80/100 C) 100/0/0 D) 40/60/100
B. 40/80/100
Liberalization affords the insured broadened coverage of the insurer Makes any adjustments to a business owners policy within. Days prior to or during the policy period A) 30 B) 45 C) 60 D) 90
B. 45
.Which of the following losses would HO4 42 endorsement cover? A)bacteria coverage to an insureds home B) An insured home office C) Fraud identity D) None of the answers listed
B. An insured home office
Which of the following personal articles is best insured utilizing a stated value basis for loss payment A) A rare coin collection B) An original oil painting by a prominent artist C) Family owned Sterling silverware which has been handed down for six generations in a family D) Vintage and rare camera equipment
B. An original oil painting by a prominent artist
If the local police refuse to let a business owner gain access to his business due to safety concerns for a couple of weeks the owner is entitled to business income because of which additional expense coverage? A) alterations B) Civil authority C) Extended business income D) Modified business income
B. Civil authority
All of the following are additional coverage found in a business owner policy except A) Business income B) Employee dishonesty C) Electronic data D) Pollution cleanup and removal
B. Employee dishonesty
Which of the following conditions does qualify for covered under a flood policy? A) sump pump failure B) Flooding in a widespread area C) Isolated flooding D) Flooding that is in the control of the insured
B. Flooding in a widespread area
Which of the following homeowners forms will cover structures on an open peril basis but will cover personal property on a name perils basis? A) HO 2 B) HO 3 C) HO 5 D) HO 6
B. HO 3
Under truckers coverage form and ensure will cover trailers in possession of the insured and the insureds trailers in the possession of others as long as there is which type of agreement in place? A) insuring agreement B) Interchange agreement C) Exchange agreement D) Intercoastal agreement
B. Interchange agreement
All of the following are considered to be covered autos under truckers coverage form except: A) trucks, trailers, tractors owned by the business B) AutoS owned in a no-fault required state C) Auto owned in a state they can reject uninsured motorist coverage D) Autos rented or borrowed
C.Auto owned in a state they can reject uninsured motorist coverage
Which of the following scenarios with best exemplify the doctrine of concurrent causation under a BOP? A) A flood destroys a business computers in the basement of the building B) Lightning causes a power failure and interrupts business C) A crime scene shuts down an insureds property D) None of the answers listed
B. Lightning causes a power failure and interrupts business
Boats of what length require your coverage? A) 24 feet or longer B) Longer than 26 feet C) Longer than 28 feet D) 36 feet or longer
B. Longer than 26 feet
Which of the following businesses would be eligible for a business owner policy? A) The seventh National bank and trust company B) Mikes chicken to go C) Bob's bar and Grill emporium D) The jolly fun amusement park
B. Mikes chicken to go
Bob's frozen pizza delivers 1000 pizzas a day to local grocery stores for retail sale and shipped them in a refrigerated truck that bobs Owns. bobs frozen pizza: A) is covered for this by an additional coverage found in their business owner policy B) Needs to purchase An owners goods on owners trucks transportation floater C) Needs to purchase a motor truck merchandise floater transportation floater D) Needs to purchase a specialized shippers form
B. Needs to purchase An owners goods on owners trucks transportation floater
Which of the following facts about the flood program is false? A) it is federally subsidized through the use of tax dollars B) Private carriers Share in losses through the WYO C) Private insurance agents who sell flood insurance are paid a commission for doing so D) The greatest coverage amounts are found in the regular program
B. Private carriers Share in losses through the WYO
V is on open sea and runs into a terrible storm. During this event V makes any effort to save the damaged mass from loss but her efforts are unsuccessful and the ship has suffered a total loss. The contract would Describe V's efforts as: A) Adventure B) Sue and labor C) Salvors D) Hull insurance
B. Sue and labor
Which of the following statements about outdoor property coverage in a business owner policy is not true? A) covered landscape is limited to $500 per item B) The only perils that apply to loss of outdoor property are fire lightning and explosion C) Up to $2500 would be supplied if a covered fence was damaged due to civil commotion D) Coverage maximum for radio and television antenna is $2500
B. The only perils that apply to loss of outdoor property are fire lightning and explosion
Which of the following is not a supplementary payment found under the terms of a commercial general liability policy? A) Lost wages incurred by the insured up to $250 per day for assisting the insurer and the defense of a claim brought against the insured B) The per occurrence limit paid to an injured person to whom the insured was liable due to negligent act of the insured at the pace of business C) All court costs levied against an insured and a lawsuit D) All expenses incurred by the insurance company
B. The per occurrence limit paid to an injured person to whom the insured was liable due to negligent act of the insured at the pace of business
BOP endorsement BP 04 57 which states venture will protect against loss of business income due to the condition of power interruption originating away from the premises is known as A) utility services Direct damage B) Utility services time element C) Business income insurance
B. Utility services time element
None of the following general types of business can qualify for the BOP except A) A company with a single location generating over 100, million per year in revenue B) A large multinational corporation spanning three continents C) Small to medium size concerns D) A general contractor with a payroll exceeding $ 5 million annually
C.Small to medium size concerns
Section 2 of a homeowners policy provides A) personal liability coverage B) Medical payments to others coverage C) Both personal liability and medical payments to others coverage D) Coverage for personal property loss
Both personal liability and medical payments to others coverage
What is the standard deductible for a business owner policy? A) $100 B) $250 C) $500 D) $1000
C. $500
All of the following statements about extra expense coverage are true except A) A Business that cannot be shut down even for a short time should purchased it B) It can be purchased separately or together with business income coverage as an endorsement C) All businesses need it D) Any type of business that may permanently lose customers unless they resume operation immediately should consider buying it
C. All businesses need it
Which of the following coverage concepts about extra expense insurance is accurate? A) all of the funds are paid out and equal installments for the first six months following the cover loss which triggers the extra expense benefit B) There is a 72 hour waiting period after a covered loss occurs before coverage begins the same amount is found in business income coverage C) An optional extension of coverage is available to the insured to cover newly acquired locations up to $100,000 D) Extra expense coverage will not pay to research or replace the lost required information
C. An optional extension of coverage is available to the insured to cover newly acquired locations up to $100,000
B Owns a small building that houses her retail business. After 11 years the roof is starting to deteriorate due to time. Under B's Business owner policy A) B will have full coverage B) B will have coverage less her deductible C) B will not have coverage D) None of the answers listed
C. B will not have coverage
Section 2 of a homeowners policy provides A) personal liability coverage B) Medical payments to others coverage C) Both personal liability and medical payments to others coverage D) Coverage for personal property loss
C. Both personal liability and medical payments to others coverage
Commercial auto policies: A) must be purchased as monoline coverage B) Only addresses liability coverages of personal auto C) Can be purchased as either part of a package or monoline coverage D) Must include all forms of coverage including truckers form
C. Can be purchased as either part of a package or monoline coverage
In cases where the customer is responsible for damage to the shipment instead of the seller a loss will occur the seller may get sued if losses occur. Therefore it is best for the seller to have A) Open cover Cargo policies B) Specific cargo policies C) Contingency insurance policy D) Hull insurance
C. Contingency insurance policy
Under the individual named insured endorsement A) Coverage does not include the named insureds spouse B) Converge is not subjected to the underwriting process C) Coverage is added at no extra premium D) Coverage still included the fellow employee language
C. Coverage is added at no extra premium
Inchmaree is when: A) Crew intentionally tosses away cargo to sea due to lightning B) A wrongful act committed by the crew master C) Damages caused by ships captain when navigating D) Pirates board a ship and steal cargo
C. Damages caused by ships captain when navigating
Which of the following losses is an example of the Assured suffering an average loss? A) H's Aircraft is parked near the hanger and has hail damage B) F's boat collides with the dock and suffers a total loss C) H's ships mast is damaged during a lightning storm and must be repaired D) N Is on her boat during the storm and her dock gets wet but causes no damage to the ship
C. H's ships mast is damaged during a lightning storm and must be repaired
Which of the following incidents best describes the pilotage and towage clause in a hull contract A) V's ship collides with another vessel B) B forgets to anchor his ship and it is floating away he jumps in the ocean to bring it back C) J hires a pilot to navigate a vessel into a difficult port by towing it with a tugboat D) K is about to take an Adventure on the open sea
C. J hires a pilot to navigate a vessel into a difficult port by towing it with a tugboat
According to definitions of a business owners policy and insured contract does not include a contract or agreement or any part of any agreement A) for receiving coverage on property B) For the insurer paying losses due to covered claims C) Rendering or failing to render professional services D) For the insurer to be fair in underwriting
C. Rendering or failing to render professional services
M is a mechanic who works for broken axle auto repair shop. One Tuesday, M is driving around customers repaired car and accidentally smashed it against the wall of the garage door on the way out. The section of the garage keepers coverage that will cover M's accident is A) section 1 B) Section 2 C) Section 3 D) None of the answers listed
C. Section 3
When a community required to do so has agreed to adopt flood control measures set forth that community is then eligible for: A) The emergency program B) The regular program C) The normal program D) An immediate binder
C. The normal program
Under the conditions section of a business auto policy: A) The insurer will pay for repairing a new car but will not Perplace stolen property B) By for any part of damaged or stolen property under their own evaluation standards C) Will include all sales tax for damaged or stolen property D) All of the answers listed
C. Will include all sales tax for damaged or stolen property
What is the length of time for a mini tail under the basic extended reporting period of a CGL? A) five years B) Three years C) One year D) 60 days
D. 60 days
Which of the following insured property would be covered under a replacement cost basis in a business owner policy under coverage B? A) outdoor fixtures B) An addition under construction C) Equipment that is permanently built into the corner of an inside room of the insured premises D) A copier leased by the insured
D. A copier leased by the insured
Who of the following parties would not be considered to be an insured under garage operations-covered auto form? A) The owner of the insured dealer B) Parts manager of an auto dealer C) A porter of an auto dealer who drives the cars to be washed D) A customer of the dealer who has their own legal auto insurance while test driving a new vehicle
D. A customer of the dealer who has their own legal auto insurance while test driving a new vehicle
Which of the following perils are excluded under garage form coverage A) auto dealer loss of market value B) Loss of stored autos at an unnamed location C) Collision of unsold autos during transport of a dealer that is 75 miles away from the insured D) All answers listed
D. All answers listed
Section 1 of our homeowners policy provides : A)dwelling and detached structures on the insured's premises B)Personal property of the insured C) Loss of use D) All of the answers listed
D. All of the answers listed
Which of the following are considered to be covered perils Historically under a hull insurance policy A) Rainwater does damage to part of the ships deck B) Hostile parties cause damage to a ship C) The government refuses to port to a ship D) All of the answers listed
D. All of the answers listed
All the following statements about the point in time a builders risk policy extends are true except A) 60 days after when the building is put to it's intentional use B) 90 days after the construction is completed C) The builders interest in the property has concluded D) Before the structure being built is finished
D. Before the structure being built is finished
All of the details of which party is responsible for shipped property while in transit is typically indicated in a written contract called the A) consignment bill B) Shipping merchandise manifest C) Carrier contract D) Bill of laden
D. Bill of laden
Which of the following perils would be an example of a peril covered under DIC coverage? A) fire B) Lightning C) Theft D) Flood
D. Flood
H has just closed on his new home and wants to have his possessions covered on a replacement cost basis. When H calls her agent the agent explains she must pay extra for an endorsement for such coverage. Hs agent must add which of the following endorsements? A) HO 04 26 B) HO 04 54 C) HO 04 55 D) HO 04 90
D. HO 04 90
Which of the following losses covered under a business owners policy will require a deductible to be paid by the insured? A) fire department service charge/fire extinguisher systems recharge B) Extra expense and business income C) Loss due to civil Authority D) None of the answers listed
D. None of the answers listed
Which of the following exposure is the most likely cause for a commercial General liability policy to pay a loss on behalf of an insured business? A) completed operations B) Operations C) Product liability D) Premises
D. Premises
A business auto policy can protect commercial insured from many losses that are because of the insurance liability. Which of the following losses would be covered under a business auto policy? A) an insured suffers a liability loss due to an occurrence B) The insured destroys another's property when using a cherry picker C) The insured's generator caused a loss of another person D) The insured causes an accident while driving a covered auto in the accident caused the car to leak fuel, fluids, and lubricants which contributed to the loss.
D. The insured causes an accident while driving a covered auto in the accident caused the car to leak fuel, fluids, and lubricants which contributed to the loss.
Which of the following following objects causing loss would be covered by the homeowners broad form policy? A) A plane part drops from the sky and crushes the insured outdoor patio furniture B) Part of an old satellite flies through the earths atmosphere and lands on the insured wooden fence damaging it C) A meteor right hit the outside ham radio antenna of the insured destroying it D) The propeller of a helicopter falls from the sky crashes through the roof of the insured's home and destroys the dining room set
D. The propeller of a helicopter falls from the sky crashes through the roof of the insured's home and destroys the dining room set
Which of the following statements about NFIP deductibles is true? A) The deductible for contents under the regular program is $1000 B) One deductible applies for both building in continent coverage under both their emergency and regular programs C) The single deductible that applies for both building and content coverage under both emergency program is $1000 D) There is a deductible applied to the building and another to the contents under both emergency and regular programs
D. There is a deductible applied to the building and another to the contents under both emergency and regular programs
If a business is concerned with repetitive coverages and paying more than once for the same coverage the commercial package policy solve this issue A) by providing substantial discounts when coverage is duplicated B) By recommending the business purchase a business owner policy instead C) By removing the duplication with commercial floater coverage D) Though interline endorsements
D. Though interline endorsements
If a business intends to claim debris removed under a commercial building in business personal property form it must be reported to the insurer A) immediately upon loss B) Within 30 days from the date of physical loss C) Within 90 days from the date of physical loss D) Within 180 days from the date of physical loss
D. Within 180 days from the date of physical loss
