Missed Guarantee Exam

All of the following are ways to handle risk EXCEPT

Elimination

An insured just purchased an auto policy for his new car. He wants to understand what perils are not insured against. Which section of his policy should the insured check?

Exclusions

Guaranteeing future dividends is considered to be an unfair or deceptive act known as

Misrepresentation

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

Other than perils, the difference in the three DP forms is in coverage provided. Which of the following coverage options is covered by the DP-2 and DP-3 but not DP-1?

Coverage E- Additional living expenses

Coverage C in homeowners policy forms offers all of the following EXCEPT

Coverage for loss of use

Which of the following perils is NOT covered by the DP-2?

Damage to pets, birds, or fish.

Which of the following provisions is usually found in homeowners policies and provides a replacement cost settlement to policy holders who carry adequate insurance?

Insurance to value

Business Auto Coverages apply only to those autos that are identified as covered autos in the declarations by entry of the appropriate numerical symbol. Which symbol affords the broadest coverage?

1

Which of the following would be added for coverage under a property policy by an endorsement?

Additional Insureds

Coverage D, additional living expenses, is intended to

Allow the family to maintain their normal standard of living

All of the following persons would be covered under a business auto policy EXCEPT

An employee of the named insured operating an auto that is owned by the employee's spouse

Prior to paying a claimant under a professional liability policy, the insurer must

Obtain the consent of the insured

Which of the following would NOT be covered under the directors and officers liability coverage?

Reimbursement for fines and penalties

If an applicant submits the initial premium with an application, which action constitutes acceptance?

The underwriters approve the application

When does the insured's duty to defend a suit or claim end in a commercial general liability policy?

When loss payments equal the applicable limit of insurance

Harold is remodeling his home , and because of the distraction caused by the work, he forgot to mail in his insurance premium when it was due. How many days notice is he entitled to before the insurer can cancel his homeowners policy?

10

When do binders expire?

As soon as the policy is issued

A personal umbrella policy may act as excess over any of the following insurance coverage policies EXCEPT

Auto Collision Coverage

When a hearing regarding an insurance matter is requested, all parties affected must be notified within what time period of the hearing?

10 days

The personal property off-premises extension of dwelling forms provides limits of coverage up to

10% of coverage C anywhere in the world

Section III of the business auto policy provides physical damage coverage. All of the following are physical damages that may be selected coverages EXCEPT

Limited Peril Coverage

Regarding Workers compensation, what term is given to a situation that is more than 50% of the cause of an injury?

Major Cause

Which of the following is the other major coverage provided by the businessowners liability coverage form?

Medical Payments

What sublimit in a liability policy sets the maximum amount that will be paid for all claims arising from a single accident?

Per Occurrence

Which of the following symbols in a business indicates that coverage for newly acquired vehicles applies if the insurer already covers all autos owned by the insured?

Symbol 7

Homeland housing corp holds a mortgage on a property that John and Carol Thomas purchased. John and Carol have a homeowners policy with Home Protection Insurance which has a mortgagee clause naming homeland as a loss payee. If John and Carol suffer a fire to their home

The Thomases and Homeland will be considered co-claimants and receive loss reimbursement from home protection insurance