Missed Questions
The individual named insured endorsement under a commercial auto policy provides coverage for which of the following? The sole proprietor of the business and his or her family members The sole proprietor of the business only The sole proprietor of the business and his or her employees The sole proprietor of the business and his or her spouse only
A This endorsement will provide the sole proprietor and family members liability coverage for personal use of nonowned, hired and borrowed autos and changes the definition of who is an insured to include family members for any owned private passenger vehicle covered by the policy.
Losses that result from the freezing of a plumbing system while the dwelling is vacant would be EXCLUDED under a homeowners policy UNLESS The insured purchased the water damage endorsement. The insured had drained the plumbing system. The insured purchased special form coverage. The dwelling had been vacant for no more than 90 days.
B The insured would need to have made reasonable efforts to maintain heat in the insured building or have drained the plumbing system.
Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages? General Special Tort Normal
B The two classes of compensatory damages that may be awarded are special and general damages. Special damages are tangible damages that can be specifically measured in dollar amounts (such as out-of-pocket expenses for medical, miscellaneous expenses, and loss of wages).
All of the following are true regarding physical damage coverage, EXCEPT The limit of liability is the lesser of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle. Losses to non-owned autos will be covered the same as the broadest coverage available for any covered auto, except non-owned trailers are limited to $500. The insured and insurer may agree to a different deductible amount than that set by state law. The insurer will pay for direct and accidental loss to a covered auto minus any applicable deductible.
B? The Massachusetts Automobile Insurance Policy does not automatically provide coverage for non-owned trailers.
Which of the following is an example of a producer's fiduciary duty? A duty to base all transactions upon the principle of Utmost Good Faith. The obligation to tell the truth to the best of one's knowledge The trust that a client places in the producer in regard to handling premiums. An obligation to state every known fact about the policy the producer is selling.
C An agent acts in a fiduciary capacity, based upon trust and confidence, when handling the financial affairs of their customers, including the handling of premiums.
What is the maximum fine for paying a commission or any other compensation to a person who not properly licensed for acting as an insurance producer in this state? $50 $100 $500 $1,000
C Anyone who knowingly violates the provision on commissions and compensation can be punished by a fine of an amount between $50 and $500.
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? 10 days 3 days 5 days 7 days
C Consumers must be advised that they have a right to request additional information concerning investigative consumer reports, and the insurer or reporting agency has 5 days to provide the consumer with the additional information.
Which of the following statements is true regarding the commercial general liability policy's Coverage C - Medical Payments? The coverage is liability insurance because it pays only if the insured is legally liable. The coverage provides high limits of insurance for bodily injury losses. The coverage is considered good will because payments are made without regard to fault. The coverage applies to bodily injury to the named insured.
C Coverage C - Medical Payments provides necessary medical, surgical, ambulance, hospital, nursing or funeral expenses for injuries to third parties. Payments will be paid without regard to the fault or negligence of the insured.
The difference in the contents coverage on an HO-3 and HO-5 is which of the following? Contents are covered for replacement cost on HO-5, and ACV on HO-3. Contents are covered for replacement cost on HO-3, and ACV on HO-5. Contents are covered open peril on HO-5, and named peril on HO-3. Contents are covered open peril on HO-3, and named peril on HO-5.
C HO-5 provides open peril coverage for contents; HO-3 is named peril coverage for contents. Replacement cost coverage is available only by endorsement to either form.
What type of coverage does a homeowners policy include that a dwelling policy does not? Other structures Broad form Liability Personal property
C Homeowners policies are very similar to dwelling policies, except that homeowners policies include liability coverage.
Which authority is NOT stated in an agent's contract but is required for the agent to conduct business? Assumed Express Implied Apparent
C Implied authority is not written in the agent's contract but is required in order for the agent to conduct business. Implied authority exists because not every single detail of an agent's authority can be written in a contract.
Which of the following would be the insured's duty in the event of a loss according to the duties in event of occurrence, claim, or suit condition? Initiating the investigation of a claim Promptly notifying the insurer of a claim by phone Providing specific details regarding an occurrence Delivering a claim to the insurer in person
C In the event of a loss, the insured's duties include the following: promptly notifying the insurer of the occurrence (how, when, where, names and addresses of any injured persons); prompt written notice of a claim; promptly notifying the insurer of any legal papers received related to the loss; and cooperating and assisting in the investigation of a claim.
The insurer must be able to rely on the statements in the application, and the insured must be able to rely on the insurer to pay valid claims. In the forming of an insurance contract, this is referred to as Reasonable expectations. A warranty. Implied warranty. Utmost good faith.
D The insurer must be able to rely on the statements given by the insured in the application. The insured must be able to rely on the insurer's promise to pay covered losses.
As defined in commercial auto policy forms, mobile equipment includes all of the following types of land vehicles EXCEPT Vehicles that provide mobility to permanently mounted power cranes. Vehicles that travel on crawler treads. Bulldozers and forklifts. Self-propelled vehicles used for snow removal.
D This definition does not include self-propelled vehicles used for snow removal, road maintenance (but not construction or resurfacing), or street cleaning; cherry pickers mounted on autos; or vehicles subject to compulsory financial responsibility laws. Those will be considered autos.
Freddy receives a premium from his client. He fails to pay the premiums collected to the company after the insurer makes a written demand upon him. Upon conviction he will be guilty of Commingling. Fraud. Misdemeanor. Larceny.
D Upon conviction, failure to pay the premiums collected to the company after written demand is made is called "larceny."
The policy provision found in property insurance policies that prevents the insured from collecting twice for the same loss is called Appraisal. Subrogation. Consent to settle loss. Right of salvage.
D When insureds accept loss payment from the insurance company, they must transfer their rights to recovery to the insurer. This prevents the insured from collecting twice for the same loss and allows the insurer to indemnify the insurance company.
Which of the following coverages is included in an unendorsed homeowners policy? Medical payment to others Personal property replacement coverage Fungi, wet or dry rot, or bacteria Earthquake
A Medical payment to others is automatically included in Section II of all HO policies.
The insured's home is covered by an HO-3. Two years ago, the insured bought the home for $58,000. Today, its replacement value is $60,000. How much Coverage A does the insured need to qualify for replacement cost coverage? $46,400 $48,000 $58,000 $60,000
B A house must be insured for at least 80% of its value on the date of loss to qualify for replacement coverage. In this example, 80% of $60,000 is $48,000.
A premium discount is the term that describes when an insured owes a total standard premium greater than $10,000. $15,000. $1,000. $5,000.
D A premium discount is when an insured owes a total standard premium greater than $5,000.
A startup used car dealership buys cars at auto auctions in 30 states. It wants to be certain that damage coverage is provided when the cars are driven or transported from the auctions to the dealership. In regard to the business auto physical damage coverage, which is true? Coverage is provided for the wholesale amount only. Coverage is not provided under this form. Coverage is provided if dealership employees are in possession of the subject automobile. Coverage is provided at additional premium.
D Although this coverage is normally excluded, transporting autos coverage can be purchased under the business auto physical damage form for an additional premium.
When the Use Other Auto- Broad Form endorsement is attached to the MAP, which coverages are broadened under the policy? Auto physical damage coverage parts only All coverage parts Personal injury protection only Liability coverage parts only
B Any coverage provided under BI, PD, optional BI, Medical Payments, Collision or Limited collision, and Comprehensive is broadened to apply coverage (as excess) to a nonowned auto being operated by an insured.
Which of the following Massachusetts Auto Coverages would pay for damage to a covered auto due to colliding with a deer? Collision coverage Property damage liability coverage Bodily injury liability coverage Comprehensive coverage
D Damage caused by contact with a bird or animals is paid under Comprehensive.
Section I of a boatowners policy covers Liability. Medical payments. Death. Physical damage.
D Section I of a boatowners policy covers physical damage.
The personal injury liability endorsement to an HO policy applies to all the following EXCEPT Slander. Invasion of privacy. False arrest. A third party breaks a leg when the insured knocks him down.
D The broken leg is covered by personal liability coverage.
An insurer recently canceled a motor vehicle policy. Shortly thereafter, the insured requested payment of all money she was due. How long does the insurer have to comply with this request? 10 days 30 days 3 months 6 months
B In this instance, the insurer has 30 days to refund all money due to the insured.
What type of coverage is Coverage E in homeowners policies? Additional coverage Loss of use Personal property Personal liability
D Coverage E is a personal liability coverage.
Rates that are established based on the similarities of the risk with other risks are known as Experience rates. "A" rates. Merit rates. Manual rates.
D Rates that are established by similarity of risk are manual rating or class rates.
An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. What contract characteristic does this describe? Conditional Contingent Aleatory Unilateral
A A conditional contract requires both the insurer and policyowner to meet certain conditions before the contract can be executed, unlike other types of policies which put the burden of condition on either the insurer or the policyowner.
During renovations to a home, a roof opening is left exposed. A heavy rainstorm causes $20,000 of damage to the interior of the home. How much would the HO-2 policy pay for damages? Nothing $4,000 $20,000 80% of replacement cost
A HO-2 is a named peril policy, and rain is not a covered peril. The policy would pay for the damage caused by rain if the hole was caused by a covered peril (wind or hail).
All of the following are optional coverages that may be attached to an HO-3 policy EXCEPT Dwelling replacement cost. Home day care coverage. Earthquake coverage. Personal property replacement cost.
A The HO-3 provides replacement cost coverage for losses to the dwelling without endorsement or optional coverage being added.
A policy form is deemed to be approved by the Commissioner if it has been on file for at least how many days? 21 days 30 days 60 days 90 days
B If a policy form has been on file for at least 30 days, an approval by the Commissioner is not required prior to its use.
If the premium charged for a particular insured is increased or decreased for a future period based on that insured's loss experience for a period in the recent past, the policy uses a/an Manual rating plan. Retrospective rating plan. Experience rating plan. Judgment rating plan.
C An experience rating plan adjusts the premiums charges based on the claims history, positive or negative, of the individual insured.
An individual was just caught making a false affidavit in connection with a policy's cancellation. What is the greatest fine this individual faces? $500 $5,000 $1,000 $100
C In this case, the individual may be fined between $100 and $1,000.
The businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period? 90 days 120 days 1 year 3 years
C Medical payments coverage of a businessowners policy (BOP) will pay medical, dental, hospital, and funeral services incurred within one year from the date of an accident to a person who suffers bodily injury by accident on or next to the insured's premises, or because of the insured's operations.
What is the fee for a rating organization's license? $50 $15 $25 $35
C The fee for rating organization's license is $25.
How long do rating organization's licenses remain in effect? Indefinitely 5 years 1 year 3 years
D
A specialized type of insurance that guarantees the faithful performance of a trustee of employee benefit plans is called Surety bond. Directors and officers insurance. Employee benefit plan comprehensive coverage. Fiduciary liability insurance.
D Fiduciary liability insurance insures an employee benefit plan against bad acts of the plan's fiduciaries or trustees.
Workers compensation statutes require employers to meet capital reserves requirements sufficient to pay any claims that might arise. Employers can meet such obligations through all of the following EXCEPT Assigned risk plans. Competitive state funds. Second injury funds programs. Self-insurance plans.
C Second injury funds are a method by which employers manage the risks associated with the hiring of previously injured potential employees.
Coverage J under Farm Coverage agrees to pay reasonable medical expenses, regardless of fault, caused by an accident if the expenses are incurred and reported to the insurer within how many years of the accident date? 3 years 4 years 5 years 2 years
A Coverage J agrees to pay reasonable medical expenses, regardless of fault, caused by an accident if the expenses are incurred and reported to the insurer within three years of the accident date (same as homeowners).
Which of the following is a unit of measurement an underwriter uses when determining the premium rates for insurance? Exposure Loss Hazard Risk
A Exposure is a unit of measurement used to determine rates charged for insurance coverage.
An insured has a liability policy that sets the amount for all claims that arise from a single incident at $50,000. Which type of limit of liability does this insured's policy have? Per occurrence Per person Aggregate Split
A Per occurrence sets the amount for all claims that arise from a single incident at a certain number.
In addition to the common policy conditions, all of the following conditions apply to liability coverage EXCEPT Employers liability. Separation of insured. Legal action against insurer. Bankruptcy.
A The following conditions apply to the liability coverage in addition to the common policy conditions: bankruptcy, duties in event of occurrence, claim or suit, legal action against the insurer, and separation of insured. Employers liability is an exclusion.
Which surety bond guarantees that bills for labor and materials will be paid by the contractor as they are due? Bid bond Payment bond Performance bond Supply bond
B Sometimes called labor and materials bonds, payment bonds are frequently included as part of a performance bond.
Under the HO-4 homeowners policy form, property is insured against Comprehensive form perils. Broad form perils only. Basic form perils. Broad and special form perils.
B HO-4 (contents broad form), also referred to as tenant broad form, insures personal property for broad perils.
Which of the following terms describes a reduced or limited amount of coverages, other than the combined single limit, that is available to pay claims resulting from passenger bodily injury? Lower limit Limited liability Sublimit Smooth limit
C A sublimit is a reduced or limited amount of coverages, other than the combined single limit, that is available to pay claims resulting from passenger bodily injury.
Which of the following would be EXCLUDED under Medical Payments coverage of a Massachusetts Automobile Insurance Policy? The insured's mother is injured while exiting from the insured vehicle. The insured is struck by another vehicle while crossing the street. The insured is injured while driving his motorcycle on his resident premises. Due to an accident, a friend of the insured is injured while occupying the insured's car.
C Motorcycles are not included in the definition of an auto, and therefore, are not covered for any Medical Payments coverages.
To comply with requirements for insurance for public liability under the Motor Carrier Act of 1980, which endorsement is added to motor carrier coverage form? Garage MCS-70 MCS-90 MCS-80
C The Federal Motor Carrier Safety Administration (FMCSA) has developed an endorsement, MCS-90, that must be attached to all motor carriers' policies under its jurisdiction. This endorsement ensures that motor carriers comply with the federally mandated coverage for public liability (The Motor Carrier Act of 1980).
All of the following are true regarding the Massachusetts Mandatory Automobile Insurance Endorsement M-0099-S, EXCEPT It causes the limits of insurance to comply with the minimum limits of any state in which the vehicle is being operated. It is a mandatory endorsement. It waives the collision deductible if the insured is legally parked. It adds a $500 minimum collision deductible.
C The collision waiver is not a part of M-0099-S. That coverage is added by a separate endorsement.
The HO-3 homeowners policy provides Open peril coverage on the dwelling and basic form coverage on personal property. Basic coverage for the dwelling and broad form coverage for personal property. All-risk coverage for both the dwelling and personal property. Open peril coverage on the dwelling and broad form coverage on personal property.
D The open peril coverage applies to property insured under Coverages A and B only.
Under Section I, homeowners insurance must include Liability coverage. Immediate coverage. Negligence coverage. Property coverage.
D Under Section I, the homeowners form must include property coverage, and under Section II it must include personal liability coverage.
Under the liability section of the Massachusetts Automobile Insurance Policy, all of the following are considered persons insured EXCEPT The insured's neighbor who temporarily borrows the insured's car. A co-worker who borrowed the insured's car to run an errand for the insured's employer. The insured's employer, if the insured used the employer's vehicle to run an errand for his employer. The daughter of the insured while driving her boyfriend's car.
c The employer's Workers Compensation policy would provide the coverage. The Massachusetts Automobile Insurance Policy would provide coverage as excess for family members driving nonowned autos. Other individuals are covered while operating an auto, with permission, insured under a PAP.
An employee received workers compensation. He returned to work for just a month, and was injured again. At what rate will payments be made subsequently? At the rate in effect at the time of the subsequent injury At the rate in effect at the time of the previous injury At 66 2/3% of his weekly wage At 33 1/3% of his weekly wage
A An employee that has received workers compensation, and has returned to work for a period of less than 2 months, will - following any subsequent injury - be paid at the rate in effect at the time of the subsequent injury (regardless of whether or not this is a recurrence of the former injury).
The policy conditions define How parties to the contract must act following a loss. The basic underwriting information. The excluded perils. The amount of coverage.
A Conditions is an essential part of a policy structure. Conditions define what each party to the policy is required to do contractually in the event of a loss.
The continuing education requirement for licensees, during the initial licensing period, is a
A During the first 36-month period following the date of original issue of the license, the person must satisfactorily complete courses or programs of instruction or attend seminars equivalent to a minimum of 60 hours of instruction.
#78. If an employer in a state with elective workers compensation laws chooses not to be subject to those laws, what does the employer lose? a) Its common law defenses against liability suits b) Its ability to provide group health insurance c) Its right to hire persons with disabilities d) Its eligibility for workers compensation insurance
A Elective law means the employer does not have to be subject to the state's workers compensation laws, but if the employer chooses not to be subject to the laws, it loses its common law defenses against liability suits.
Which rating method provides an insurer with that portion of a rate that does not include provisions of expenses (other than adjusting expense) or profit and is based on historical aggregate loss and loss adjustment expenses projected through development to their ultimate value and through trending to a future point in time? Loss costs rating Provision rating Profit rating Components rating
A Loss costs is a rating method developed by the Insurance Services Office Inc. (ISO) that provides an insurer with that portion of a rate that does not include provisions of expenses (other than adjusting expense) or profit and are based on historical aggregate loss and loss adjustment expenses projected through development to their ultimate value and through trending to a future point in time.
Which of the following statements is NOT true regarding a personal umbrella liability policy? It provides errors and omissions coverage for an agency. It may cover certain exposures not provided under the primary layer. It may require the payment of a self-insured retention. It provides excess liability coverage over underlying personal liability.
A Personal umbrella policies cover the personal exposure of the insured. Errors and omissions coverage is provided only in a professional liability policy.
All of the following are essential elements of a commercial package policy (CPP) EXCEPT Valuations and/or settlement provisions Interline endorsements Declarations page Policy conditions
A Regardless of how the policy is written, it will be comprised of the following essential elements: declarations page, conditions, interline endorsements, and coverage parts.
When an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays The excess over the self-insured retention. The amount specified in the policy under the additional coverage provisions. The amount in excess of the policy's limits of liability. A percentage of the loss as described on the declarations.
A Retention is the equivalent of a deductible in property insurance.
The commercial general liability coverage form excludes bodily injury or property damage that the insured has assumed under any contract or agreement. However, the exclusion does not apply to certain types of contracts, as long as the injury or damage occurs After the execution of the contract. After the contract expires. Before the execution of the contract. Before the contract expires.
A The commercial general liability coverage form excludes bodily injury or property damage that the insured has assumed under any contract or agreement. However, the exclusion does not apply to certain types of contracts, as long as the injury or damage occurs after the execution of the contract.
Duties of the insurer found in property policy conditions include all of the following EXCEPT Notify the insured in the event of financial difficulty. Pay covered losses. Provide advance notice of cancellation. Return any premiums to the insured.
A The insurance department monitors the financial conditions of insurers. The insurers report to the state, not to policyholders.
The part of the insurance contract that describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured is called the Insuring agreement. Conditions. Exclusions. Declarations.
A The insuring agreement is the part of the policy structure that describes the insured perils and the method of indemnification.
While Jake was towing a utility trailer with his auto, the trailer came loose and ran into a store front. What part of Jake's auto policy would pay for the damage to the store? This loss would not be covered. Damage to Someone Else's Property Collision Coverage Comprehensive Coverage
B The auto policy provides liability coverage to a trailer being towed by a covered auto under Part 4- Damage to Someone Else's Property.
A life insurance producer would be qualified to act as a life settlement broker if the producer has had a valid life license for at least 6 months. 1 year. 3 years. 5 years.
B A life insurance producer who has been licensed in the commonwealth to transact a life line of authority for at least 1 year is qualified to operate as a life settlement broker.
Because an agent is using stationery with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe? Assumed Apparent Express Implied
B Apparent authority (also known as perceived authority) is the appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created.
Which of the following is NOT true regarding a Certificate of Authority? It is issued to group insurance participants. It may be necessary for transacting business in a specific state. It is equivalent to an insurance license. It is issued by the state department of insurance.
B Before insurers may transact business in a specific state, they must apply for a license or Certificate of Authority from the state department of insurance and meet any financial (capital and surplus) requirements set down by the state.
Which of the following best describes the amount of loss assessment coverage included under a homeowners policy liability coverage section? Up to $5,000 aggregate for the policy period Up to $1,000 per occurrence Up to $2,500 per occurrence Up to $10,000 aggregate for the policy period
B Section II - Loss Assessment Coverage - applies to assessments against the insured by a condominium association or other cooperative body of property owners. Coverage is limited to $1,000, but an increased limit of coverage is available by endorsement.
Which of the following statements is INCORRECT with regard to surplus lines insurance? Before coverage is placed with a surplus lines company, diligent effort must be made to place the risk with admitted insurers. Business placed with a surplus lines insurer is subject to a premium tax that must be collected by the broker. Policies written by a surplus lines insurer typically contain standard coverages and forms. To sell surplus lines insurance, the licensee must obtain a surplus lines broker's license.
B Surplus lines insurers do not have to file their rates or forms with the insurance department, and because they are not admitted, each policy will show an amount as premium tax payable to the Department of Insurance.
Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy? The insured would have to pay the self-insured retention limit. The insured would be responsible for the amount required as underlying limits in the event of a claim. It would have no effect on the umbrella policy. The policy will be cancelled.
B The amount of insurance required as underlying limits in other policies is treated as a deductible amount to the umbrella for that particular exposure, so if underlying limits are not maintained, it is the insured's responsibility.
No insurance institution or producer may base an adverse underwriting decision in whole or in part On further information obtained from an insurance institution or producer responsible for a previous adverse underwriting decision. On personal information received from an insurance-support organization whose primary source of information is insurance institutions. On the existence of a previous adverse underwriting decision or the fact that an individual previously obtained insurance coverage through a residual market mechanism. On further personal information obtained as the result of information received from such insurance-support organization.
C No insurance institution or producer may base an adverse underwriting decision in whole or in part on the existence of a previous adverse underwriting decision or the fact that an individual previously obtained insurance coverage through a residual market mechanism.
All of the following are considered parts of the policy structure EXCEPT Insuring clause. Conditions. Provisions. Exclusions.
C Provisions is a broad term used to refer to the sections or clauses of an insurance policy that communicate the policy's benefits, conditions, etc. The essential parts of the policy are declarations, insuring clause, conditions and exclusions.
The claims-made trigger is based on which of the following? The place where the injury or damage occurs The date when injury or damage occurs The date the claim is first made The amount of the insured's deductible
C The claims-made trigger is based on the date the claim is first made in writing against an insured for injury or damage that occurred on or after the policy's retroactive date.
Under Personal and Advertising Injury Liability in farm insurance, the coverage provided for suits alleging personal injury is most similar to the coverage found in which of the following? Dwelling policy Umbrella liability policy General liability coverage part Personal auto policy
C The coverage provided for personal injury suits is similar to the personal injury coverage provided under a general liability coverage part.
A trucking company owns a large fleet of trucks that transport oil across state lines. According to the financial responsibility requirements set by the Motor Carrier Act of 1980, what is the minimum amount of insurance the company must carry on vehicles that transport oil and certain categories of hazardous waste? $500,000 $750,000 $1 million $5 million
C The minimum requirements for haulers of oil and certain categories of hazardous waste in interstate commerce is $1 million.
Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report Must be advised that a copy of the report is available to anyone who requests it. May sue the reporting agency in order to get inaccurate data corrected. Must be informed of the source of the report. Are entitled to obtain a copy of the report from the party who ordered it.
C Under the Fair Credit Reporting Act, if an insurance policy is declined or modified because of information contained in a consumer report, the consumer must be advised and provided with the name and address of the reporting agency.
A small trucking company stops transporting hay for area farmers and begins to haul hay for its own farm exclusively. In regard to the coverage on its trucks, which of the following is true? Any coverage form applies. Coverage can continue under the truckers coverage form. Farm liability coverage applies. Business auto coverage form may apply.
D Businesses that use their vehicles to carry their own goods are called private carriers and cannot be covered under the truckers coverage form. Private carriers must obtain coverage for their trucks through the business auto form or the motor carrier form.
What is the legal defense that can be used in most states in which proportionate damages may be awarded when both the plaintiff and defendant were negligent? Relative degree of damage statute Contributory negligence Proximate cause Comparative negligence
D Comparative negligence is the apportionment of damages when both the plaintiff and the defendant are at fault. Recovery by the plaintiff is lessened or increased depending upon the degree of each party's negligence.
Which endorsement adds coverage for employee use of automobiles in the insured's business and the insured's use of rented autos if no coverage is provided on a business auto policy? Substitute auto liability Newly acquired auto exposure liability Additional insured Hired and nonowned auto liability
D Coverage is provided for liability arising out of the use or maintenance of a hired or nonowned auto. This typically refers to employees' use of their personal autos for business purposes.
Every policy of motor vehicle liability insurance issued by an insurer to an owner residing in this state will contain liability limits of at least $25,000/$50,000/$25,000 $50,000/$100,000/$10,000 $15,000/$30,000/$5,000 $20,000/$40,000/$5,000
D Massachusetts financial responsibility law requires that the insurance policy or bond provides coverage limits not less than the following: $20,000 on account of injury or death to any 1 person in a single accident; $40,000 on account of injury or death to 2 or more persons in a single accident; and $5,000 for damage to property of others arising out of a single accident.
What Massachusetts Automobile Insurance Policy would pay for the insured's injuries sustained when struck by a hit-and-run driver while crossing a busy street? Comprehensive (other than collision) Collision Liability coverage Medical payments
D Medical Payments would pay for injuries arising out of an auto event, regardless of fault.
Which of the following risks would NOT be eligible for coverage under a homeowners policy? An applicant who lives in a duplex that she does not own An applicant who owns and lives in a duplex An applicant who owns and lives in a single-family dwelling that also contains incidental business activities An applicant who owns and lives on a commercial farm
D Risks that contain a farming exposure are not eligible for homeowners insurance.
