missed questions
which of the following is the special limit of coverage on the homeowners policy form for property damage to personal watercraft
1500
Equipment Breakdown is written with a single limit of insurance per accident. What is the sublimit for hazardous substances cleanup or repair or replace contaminated property?
25,000
what is the waiting period included in the definitions of period of restoration in the business income coverage form?
72
which of the following would not be eligible for coverage under a homeowners policy?
An applicant who owns and lives on a commercial farm
what are two major sections of a commercial crime policy?
Commercial entities and governmental entities
an insurance company assures its new policyholders that their premium costs will not increase for 5 years. However due to increasing strain they increase cost
Fraud
which of the following homeowners form provides the most comprehensive coverage?
HO-5
All of the following are types of construction are subject yo functional replacement cost basis EXCEPT
Modern
A person who intentionally defrauds an insurer to gain from a claim is an example of which type of hazard?
Moral hazard
which of the following best describes perils covered under the DP-2 broad form policy?
Named perils
which of the following duties is NOT required of the insured in the event of a loss?
Percentage of loss
Policy A pays an amount and policy B pays an amount
Pro rata
For insurance purposes, when an insured loses property to another because the person used violence or threat of violence to gain the property, this is defined as
Robbery
Which of the following would not be considered a flood?
Sewer backup
when a business has a specialized risk that no authorized insurer will cover, the coverage may be obtained from
Surplus line carriers
how does the business owner policy differ from the commercial package policy
The BOP is a prepackages a group of coverages desirable to a small business
Negligence is defined as
The failure to do what a reasonable prudent person would do under given circumstances.
which of the following would not be covered by uninsured motorists coverage?
The insured causes a head-on collision with the car of an uninsured motorists
which of the following is a federal act that covers crew ships the same as railroad workers?
The jones Act
which of the following injuries is covered by medical payments on a homeowners policy?
The neighbor falls while helping the insured with leaves
The owner of a rental dwelling insured under a dp-2 turns of the heat in the insured dwellling during the winter months. The pipes freeze and break. How will the policy react to this loss?
This loss will be excluded
which of the following would be considered an insured under a business auto coverage form?
anyone while using with permission covered auto owned by named insured
when does the coverage begin for a builders risk form?
at the time the insured becomes legally responsible for the property
who may bring civil action in the united states district court against any person engaging in conduct constituting an offense under section 1033
attorney general
property coverage that does not require a specific limit of insurance for each item to be insured is called
blanket
what triggers coverage under the business income form with extra expense coverage?
carpet cleaning after a water main break
what are the two sources for workers compensation insurance?
monopolistic state fund and competitive market
which of the following us the oldest known type of insurance?
ocean marine
in which of the following situations would the punishment include imprisonment?
omission of material fact with the intent to embezzle funds
the extended nonowned coverages provides protection to
only the persons named on the policy
with regard to property insurance, consideration is the
payment of premium by the insured in the return for the promise to pay the covered claims
The commercial general liability Part A- Bodily injury and Property Damages provide coverage for which of the following?
premises
what is the purpose of the motor carrier act of 1980?
to establish financial responsibility requirements o interstate motor carriers
which of the following is not a goal of risk retention?
to minimize the insured's level of liability in the vent of a loss
An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as
twisting
under a commercial package property policy, the insurer has the right to make inspections and surveys at any time. These surveys are for what purpose
underwriting and rating
All of the following are supplementary payments included in the liability section of a personal auto policy EXCEPT
up to $100 for the cost to secure the release of the vehicle from inpoundment
when an insured gardener was spraying weeds in his lawn, he failed to notice that the wind was blowing and was drifting the spray into the neighbors 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
in forming an insurance contract, when does acceptance occur?
when the insured underwriter approves the coverage
Mobile homes can be insured in all of the following ways EXCEPT
with an HO-8 modified coverage form
the business owner policy covers specified medical expenses
without regard to who is at fault
all of the following statements regarding personal property coverage in the homeowner program are correct EXCEPT
the HO-3 property coverage covers the mysterious disappearance of personal property
Who is responsible for paying producer appointment fees
the appointing insurer
a golfer slices a tee shot and the ball goes through the window of a house beside the fairway. the broken glass is paid for by
the golfers homeowners liability coverage
States with monopolistic state workers compensation funds
Do not allow private insurers to be licensed to write workers compensation
all of the following are risks more likely to be insured by the state or the federal government programs EXCEPT
Employers liability insurance
which of the following is not found in the common policy declarations of a commercial package policy?
Insuring agreement
which of the following acts created federal program that would share the risks of a loss from potential terrorists
TRIA
Which of the following is NOT covered under account receivables coverage form?
any loans required to offset uncollectable amounts
under the equipment break down coverage form the term breakdown does not include which of the following?
damage to any vaccum tube, glass tube, or brush
which of the following would not generally be included in the supplementary payment portion of the liability policy?
damage to the property by the insured
The commercial property declarations page contains which of the following information?
description of the property insured
What term includes damage where the insured peril was the proximate cause of loss?
direct loss
An insured has 4 separate policies that pay out 100,000. There is an accident for 100,000. How much will each policy pay out?
each policy will pay 25,000
Another person has alleged that you are responsible for damage to their property. You notify your homeowners insurer. The insurer will
either pay back or defend as it decides
in addition to the common policy conditions apply to liability coverage EXCEPT
employers liability
all of the following are found in the declarations section of a policy EXCEPT the
exclusions
all of the following violations may result in imprisonment except
failing to report to the department of criminal prosecution taken against the agent in another jurisdiction
In farm insurance, Coverage I - Personal and Advertising Injury Liability for suits alleging personal injury is most similar to the coverage found in which coverage form?
general liability
In order to reject uninsured motorist coverage, the first named insured must make the rejection
in writing at the time of the application
All of the following are conditions commonly found in the insurance policy EXCEPT
insuring agreement
which of the following methods are losses settled on an actual cash value basis?
less depreciation
section III of a business auto policy provides physical damagae coverage all of the following are physical damages EXCEPT
limited peril coverage
which of the following describes an insurers responsibility for payment under a policy as stated in the common policy provisions?
limits of liability
the individual named insured endorsement offers liability coverage to the sole proprietor of a business and his or her family members. which coverage is also provided under the individual named insured endorsement of a commercial auto policy for owned passenger vehicles and nonowner autos
physical damage coverage
Who would participate in a write your own flood insurance program?
private insurers who wish to write and service national flood insurance policies on a no risk bearing basis
the purpose of the fair credit reporting act is to
protect consumers against the circulation of inaccurate or obsolete personal or financial information
what is the valuation basis for coverage B- Business personal property under the business owners policy
replacement cost
the equipment breakdown coverage form values loss on a/an
replacement cost basis
what is the maximum penalty for habitual willful noncompliance with the fair credit report act?
$2,500
Under the builders risk coverage form, the insured's building materials and supplies used are covered up to how many feet away from the house
100 feet
An insured was judged at fault in an automobile accident. he has a 100/300 bodily injury liability coverage. Three other individuals were injured in the vehicle hit by the insured. They were awarded damages of 150,000 and 75,000 and 75,000. What amount if any was not covered by his insurance policy?
50,000
all of the following are commonly used in an inland marine policy EXCEPT?
Builders floater froms
which of the following would provide coverage for the loss of income when an insured rental dwelling is rendered uninhabitable because of a covered loss?
Coverage D
which of the following statements is true regarding advertising that the insurance Guaranty Association would ensure payment of benefits in the event of the insurer insolvency
It is an unfair trade practice to mention the association in advertisements
with regard to homeowners section II which of the following does NOT meet the definition of insured location?
a plot of farmland owned or rented by the insured
what is the purpose of a commercial package policy?
repetitive forms are eliminated
which of the following best describes the policy conditions?
the responsibilities and obligations of insured and insurer
with respect to the commercial package policy, an interline endorsement is one that
may apply to more than one line of insurance that is included in the package
Under the commercial property coverage program, the basic causes of loss form insures against loss caused by
sprinkler leakage
which of the following terms refers to a persons ability to do some work or the need to do alternative work?
temporary partial disability
which of the following is true for stated value
the insured chooses the value of the property
employers liability coverage under a workers compensation policy includes
damage claimed by third parties
Coverage F- medical Payments to others includes coverage for
dental services
Which of the following describes an insurer that meets the insurance departments standards and is authorized to do business in the state
admitted
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
which of the following does an HO-6 provide?
Coverage for personal property of a condominium owner
In an insurance policy, where are the terms and phrases clearly describing the extent of coverage located?
Definitions
The business owner policy liability will pay for necessary medical expenses of others incurred within how many
1 year
the business owner policy (BOP) extension coverage form for personal property off premises is limited to
10,000
