Mass : Property
Insurers must give the insured at least _____ days written notice (with reasons) for cancellation of auto policies. A 7 B 10 C 20 D 15
20
Which statement is false regarding the Personal Auto Policy? A Theft is covered under property damage liability B Uninsured Motorist Coverage is provided by Part C C The PAP provides medical payments for up to 3 years D Collision coverage will cover damage to the insured vehicle regardless of liability
Theft is covered under property damage liability
When is it legal to pay another person directly or indirectly compensation for acting as a producer in this State? A If the person is an attorney or certified public accountant B If the amount of the compensation is under $1,000 C When they are duly licensed as a producer D If the number of transactions involved is less than 5 per year
When they are duly licensed as a producer
he Commissioner may impose a fine of up to $__________ per violation of a Cease and Desist Order.
10,000
What is the maximum fee the Commissioner can levy for violation of Cease and Desist Order? A $1,000 B $5,000 C $500 D $10,000
$10,000
For how many hours after the first tremor would earth movement damage be covered under the Businessowners Earthquake endorsement? A 168 hours B 144 hours C 24 hours D 72 hours
168 hours
For how long must records of all written complaints be maintained? A 3 years from date of mailing B 5 years from date of receipt C 1 year from complaint resolution D 2 years from date of receipt
2 years
A business entity acting as a producer is required to obtain what type of license? A A partnership license B A producer license C A limited liability license D A business entity license
A producer license
How is debris removal categorized in the BOP? A Basic Coverages B Optional Coverages C Endorsement D Additional Coverages
Additional Coverages Excellent! Debris removal is listed under Additional Coverages in the BOP. Additional Coverages are automatically included in property policies without an additional premium.
Of the following statements concerning Homeowners policies, which is correct? A Dwellings under construction are covered for theft B Borrowed property meets the definition of contents C Coverage is provided to property of boarders not related to the insured D Coverage is not provided to a garage rented for private garage purposes
Borrowed property meets the definition of contents
Comprehensive Coverage under Physical Damage Coverage of the Business Auto Coverage Form, includes all of the following, except: A Lightning B Collision C Theft D Glass Breakage
Collision
Which of the following is true regarding business personal property under a BOP? A It is covered while in transit B It is covered when located in or on the building at the described premises, or in the open within 100 feet of the premises C Coverage extends to property in vehicles within 500 feet of the premises D It is covered only while within the building or an enclosed structure on the premises
It is covered when located in or on the building at the described premises, or in the open within 100 feet of the premises
Choose the physical damage claim that would be covered under the Personal Auto Policy. A Loss due to radioactive contamination B Loss due to war C Malicious mischief to the tires D Mechanical breakdown
Malicious mischief to the tires
f a bird hits a windshield and breaks it, which Personal Auto Policy coverage would pay the loss? A Supplementary payments B Collision coverage C Other Than Collision coverage D Uninsured motorist coverage
Other Than Collision coverage
Which type of standard policy includes coverage options that would not exclude damage by flood? A Homeowners B Personal Auto C Dwelling D Commercial Property
Personal Auto
Which one of the following statements about public insurance adjusters is false? A If licensed as a business entity, it must have a majority of its producers be Massachusetts residents B The license may be renewed for 3 years by completing 15 hours of continuing education and paying a renewal fee C The person must have at least 3 years of experience performing services related to adjusting property losses D The license is valid for 3 years unless suspended or revoked
The person must have at least 3 years of experience performing services related to adjusting property losses They only need 2 years
he Massachusetts Insurers Insolvency Fund's obligation for each covered claim is less than $ _________ outside of Workers' Compensation policies. A $200,000 B $300,000 C $100,000 D $250,000
$300,000
The Substitute Transportation coverage of the MAIP will pay $15/day up to what amount? A $500 B $750 C $450 D $300
$450
An HO-3 Policy will pay how much for a tree damaged in a hail storm? A $1,000 B $250 C $500 D 0%
0% No coverage for hail or windstorm
Under a Homeowners policy, Coverage B is what percentage of Coverage A? A 25% B 5% C 10% D 50%
10%
An insured has _____ years from the date of policy issue to take appropriate legal actions against the insurer for misrepresentations of the terms, conditions or benefits of a policy. A 3 B 1 C 2 D 6
2 years
The minimum coverage limits in Massachusetts are: A 20/30/5 B 20/50/10 C 30/60/20 D 20/40/5
20/40/5
How long must a disability persist before the 5-day waiting period will be waived? A 28 B 21 C 7 D 14
21 days
Licensees must inform the Commissioner of a change of address within _____ days of the change. A 15 B 45 C 60 D 30
30
A nonresident or resident producer who moves from one state to another state must file a change of address and provide certification from the new resident state within ____ days of the change of legal residence. A 30 B 120 C 60 D 90
30 days
A producer must report to the Commissioner any administrative action taken against the producer in another jurisdiction or by another governmental agency in Massachusetts within _____ days of the final disposition of the matter. A 30 B 10 C 15 D 45
30 days
If cancellation of a liquor liability insurance contract is for nonpayment of premium, the Joint Underwriting Association must provide at least ______ days' notice. A 15 B 45 C 60 D 30
30 days
The Commissioner must be notified by an insurer within _____ days following the effective date of termination of appointment of with a producer, using a format prescribed by the Commissioner. A 30 B 90 C 60 D 45
30 days
In the event an apartment attached to the insured's home is damaged and unlivable, what percentage of Coverage A does the HO-3 provide for the rental value? A 20% B 5% C 30% D 10%
30%
nsurers must file rates for the voluntary motor vehicle market in Massachusetts how many days before using them? A 15 B 30 C 45 D 25
45
A licensed nonresident producer who moves to Massachusetts and wishes to be granted a resident license without having to take the exam must apply within how many days of establishing residency? A 30 B 90 C 120 D 15
90 days
A Businessowners policy would cover which of the following? A One of the insured's employees is injured on the job B The insured signed a contract with a competitor agreeing not to advertise in that zip code C The insured is sued for injury to a competitor caused by one of their advertisements D One of the insured's products was recalled due to a mechanical imperfection
Businessowners liability coverage includes bodily injury, property damage, medical expense, and personal and advertising injury which would cover injury due to an offense arising out of the insured's business.
All of the following are sections of the Garage Coverage Form, except: A Liability Insurance B Garagekeepers Insurance C Comprehensive Insurance D Physical Damage Insurance
Comprehensive Insurance
A tenant should buy which of the following Homeowner Policy Forms? A HO-8 B HO-5 C HO-2 D HO-4
H0-4 (Tenant Form)
A loss caused by which of the following would be covered under a BOP? A Increased cost of construction B Earth movement C Off-premises power failure D Mechanical breakdown
Increased cost of construction
hich of the following is true about the Insuring Agreement of Part D under the Personal Auto Policy? A It states that the policy will pay for direct and accidental physical loss to the covered auto regardless of fault B It sets forth the coverage of transportation expenses C It states that Comprehensive coverage includes upset of a covered vehicle D It outlines the insured's duties after a loss or accident
It states that the policy will pay for direct and accidental physical loss to the covered auto regardless of fault
Which of the business auto coverage forms provides insurance for a contract carrier that transports its own goods in addition to the goods owned by others? A Business Auto Coverage Form B Garage Coverage Form C Truckers Coverage Form D Motor Carrier Coverage Form
Motor Carrier Coverage Form
All of the following are covered under Section II of the Homeowners Policy, except: A Property of the insured B The insured's liability for bodily injury to others C The insured's liability for damages to property of others D Medical expenses for an accident arising out of the premises or non-business activities of an insured
Property of the insured
All of the following are true of a Homeowners Policy, except: A Coverage E is written on a single limit basis B Section II provides coverage for damage to the insured's property C The language in Section II is the same in all Homeowners Policies D Cemetery plots, burial vaults and vacant land are insured locations
Section II provides coverage for damage to the insured's property
Which Business Auto Symbol is the most broad of all Symbols? A Symbol 3 B Symbol 1 C Symbol 2 D Symbol 4
Symbol 1
Which of the following is not true concerning Section II of the Homeowners Policy? A Payment under Damage to Property of Others is made regardless of negligence B The coverage for Damage to Property of Others excludes property that is covered in Section I C The Damage to Property of Others duplicates coverage that is included in Section I D The coverage for Damage to Property of Others pays the replacement cost of the property damaged up to $1,000 per occurrence
The Damage to Property of Others duplicates coverage that is included in Section I
A deer chews a hole in an insured's shed sitting next to a pond. Which of the following forms could cover this damage? A HO-2 B HO-8 C HO-3 D DP-1
The HO-3 Special Form covers everything except what is excluded. A deer is not a listed exclusion as it is not considered a bird, vermin, rodent, or insect.
Which one of the following statements about public insurance adjusters is false? A The license is valid for 3 years unless suspended or revoked B If licensed as a business entity, it must have a majority of its producers be Massachusetts residents C The person must have at least 3 years of experience performing services related to adjusting property losses D The license may be renewed for 3 years by completing 15 hours of continuing education and paying a renewal fee
The person must have at least 3 years of experience performing services related to adjusting property losses
Under what circumstances will prelicensing education and examination requirement be waived for a licensed, nonresident producer moving to this state and desiring to be a licensed, resident producer? A They must apply for resident licensure within 90 days of establishing residency B They must hold an industry recognized advanced designation C The producer has been in the business for over 3 years D The producer has qualified for Million Dollar Round Table (MDRT)
They must apply for resident licensure within 90 days of establishing residency
Under Motor Truck Cargo Forms, the form that insures public truckers against their legal liability for loss or damage to cargo belonging to others in their possession, is called: A Trucker's Coverage Form B Owner's Form C Shipper's Form D Transit Form
Trucker's Coverage Form
The resumption of operations condition requires that the insured do which of the following? A Submit a proof of loss within 30 days B Use damaged property to resume operations C Return to the building within 60 days D Replace damaged property on a reimbursement basis
Use damaged property to resume operations
The Businessowners Policy will cover damage to the building on which settlement basis? A Functional Replacement Cost B Agreed Value C Actual Cash Value D Replacement Cost
Replacement Cost
A temporary license may be issued for up to ____ days to a surviving relative or court appointed representative of a licensed producer who dies, becomes mentally disabled, or physically disabled. A 60 B 270 C 90 D 180
180
A temporary license issued to a representative of a licensed producer who dies or becomes disabled is valid for up to: A 90 days B 180 days C 24 months D 1 year
180 days
Insurers must file rates for the voluntary motor vehicle market in Massachusetts how many days before using them? A 15 B 25 C 45 D 30
45 days
A viatical settlement or loan provider must maintain records of each viatical settlement or loan until _____ years after the death of the insured. A 2 B 4 C 5 D 3
5 years
Each domestic insurer's books and records are to be examined at least once every ____ years by the Commissioner or an appointed examiner. A 4 B 5 C 7 D 2
5 years
M and C both have Personal Auto policies with liability limits of 20/30/10. If M borrows C's car and injures a pedestrian, causing injuries that will cost $5,000 to treat, which policy will provide coverage for the injured party? A Neither policy, since C's car was not on M's policy B C's policy C M's policy D Both policies will share the loss pro-rat
C's policy
All of the following are true of a Businessowners Coverage Form, except: A The most the insurer will pay for loss or damage arising out of any occurrence is the limit of insurance shown in the Declarations B Employee dishonesty is automatically included in each policy C Land, including land on which the property is located, is not covered D Section III of the coverage form contains the Common Policy Conditions
Employee dishonesty is automatically included in each policy
Which one of the following statements regarding fire policies cancellation or nonrenewal is false? A Once a policy has been in effect for more than 60 days, it may not be cancelled B An insurer may cancel by providing 5 days' written notice to the named insured (20 days' written notice to a mortgagee) C For nonpayment of premium, an insurer must give 10 days' written notice of cancellation to the insured (20 days' written notice to a mortgagee) D A fire policy may be terminated at any time at the insured's request
Once a policy has been in effect for more than 60 days, it may not be cancelled
Which one of the following provides no-fault coverage? A Uninsured and Underinsured Motorist Coverage (Part III) B Bodily Injury to Others (Part I) C Personal Injury Protection (Part II) D Property Damage to Others (Part IV)
Personal Injury Protection (Part II)
Garagekeepers Coverage will cover which of the following claims? A An owned vehicle used in the business, that is damaged by a hail storm B Damage to the products for sale C Product liability exposures D Physical damage to a customer's car that is in the care and custody of an insured
Physical damage to a customer's car that is in the care and custody of an insured
All of the following are conditions a resident producer must meet in order to retain their insurance license, except: A Continuing education requirements are fully met on time B All prescribed fees are paid C Revocation or suspension has occurred D They remain a resident of the State
Revocation or suspension has occurred
Which of the following best describes the Debris Removal coverage under the Homeowners policy? A The debris must be removed within 30 days of the loss B Coverage is limited to 10% of the Coverage A Limit C Debris Removal applies only to loss by fire, lightning, and windstorm D The policy will pay the insured for removing debris from a covered loss
The policy will pay the insured for removing debris from a covered loss
An insured with a $500,000 HO-5 policy incurs $1,500 in damages due to a flood destroying the wood flooring. The policy will pay: A $1,500 B Zero C $1,000 D $1,250
Zero, Flood is a Section I exclusion
