Other Coverages and Options
Johanna purchased a National Flood Insurance policy 10 days after her community entered an emergency? When would her coverage be effective?
12:01 am the day after the application and premium payment are mailed
How long is a waiting period upon purchase of flood coverage through NFIP?
30 days
Which of the following special liability coverages will provide protection to managers of a corporation for claims arising from a wrongful act committed by the manager while in an official capacity?
Directors and officers liability
What is another name for liquor liability insurance?
Dram shop insurance
Residential structures, including condominium units, and their contents are insured by what part of the National Flood Insurance Program?
Dwelling policy form
Which of the following is true regarding the Difference in Conditions (DIC) policies?
Each DIC policy is an individually written contract that contains provisions unique to the particular risk that it covers
Professional liability coverage protects the insured against legal liability resulting from
Errors and omissions
How often is the exportable list published and made available to licensees?
Every 6 months
What type of coverage do umbrella policies provide?
Excess coverage over an underlying or primary policy
A specialized type of insurance that guarantees the faithful performance of a trustee of employee benefit plans is called
Fiduciary liability insurance
A specialized type of insurance that guarantees the faithful performance of a trustees of employee benefit plans is called
Fiduciary liability insurance
Bob's neighbor will not stop parking his motorcycle in Bob's rose garden no matter how many times he has been asked to quit parking there. Bob finally gets a court order requiring the neighbor to refrain from parking there. It turns out it was his neighbor's property all along. What bond was Bob required to post guaranteeing his neighbor's damages in this wrongful action will be paid?
Injunction
Which of the following statements is NOT true regarding a personal umbrella liability policy?
It provides errors and omissions coverage for an agency
An insurance producer fails to obtain automobile insurance for a client after agreeing to do so. The client is involved in an automobile accident after running a red light and is found to be at fault. The damage to the other vehicle totals $5,000. Which statement regarding the producer's errors and omissions liability policy is true?
It will provide coverage because the damage to the client resulted from the producer's negligence
The form of payment bond that protects an owner contracting for work against liens from subcontractors, suppliers, or laborers who are not paid for their services and materials by the general contractor is called
Labor and material bond
Which bonds guarantee that the recipients of permits will comply with the ordinances associated with the use of such permits?
License and permit bonds
An insured purchases a Difference in Conditions policy. It may contain all of the following characteristics EXCEPT
Low deductible
The type of professional liability coverage a medical doctor needs is
Malpractice coverage
Which professional liability form provides coverage for liability arising out of errors or mistakes made in rendering medical services?
Physicians, surgeons and dentists malpractice
Which of the following statements is INCORRECT with regard to surplus lines insurance?
Policies written by a surplus lines insurer typically contain standard coverages and forms
The party to a surety or fidelity bond who promises to fulfill the obligation is the
Principal
Who are the parties to a bond?
Principal, Obligee, Surety
Who would participate in a WYO program?
Private insurers that wish to write and service National Flood Insurance policies on a no risk-bearing basis
All of the following statements regarding a boatowners policy is true EXCEPT
Replacement for the boat listed in the Declarations are automatically covered, if the insured notifies the insurer within 60 days and pays the additional premium
A municipality can protect itself against the construction or repair of properties that do not conform to the building codes established by ordinance by requiring the contractors to obtain
Require to obtain License and permit bonds
In a personal umbrella policy, the amount paid by the insured for certain losses not covered under the primary coverage is called
Self-insured retention
When an employee benefit plan pays the premium for a fiduciary liability policy, what provision must be included in that policy?
Subrogation
To be eligible for coverage under the National Flood Insurance Program, an insured must live in which of the following communities?
That has met the minimum floodplain management guidelines
What is the deductible of a commercial liability umbrella policy called?
The SIR
An insurance agency could purchase an errors and omission insurance policy which would provide protection in the event of any of the following events EXCEPT
The agency loses commission income from policies that were not issued by the insurer
All of the following situations would be covered under a professional liability policy EXCEPT
The failure of an attorney to properly defend a client due to his personal dislike of the client
Who must to sign the affidavit required in surplus lines insurance transactions?
The insured and the surplus lines broker
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 be responsible for the amount required as underlying limits in the event of a claim
An insured invites his neighbors out for a day on the water in his boat powered with a 150 hp outboard motor. While attempting to tie the boat to dock, his neighbor's hand is broken when caught between the boat and dock. What coverage would apply to the broken hand?
The insured's boatowners policy
Which of the following statements is true concerning a bonded contractor who defaults on a construction performance contract?
The obligee may engage another contractor and then seek reimbursement from the surety
How much coverage can be available for watercraft damage in the homeowners policy?
Up to $1500
When does a business need to purchase a liquor liability policy?
When it is in the business of manufacturing, distributing, serving, or furnishing alcoholic beverages
Section I of a boatowners policy covers
physical damage
Which bonds may be required when a person appeals to a higher court after a judgement already has been entered to guarantee that a judgement will be paid?
Appeal bonds
Which bond is required by a court before allowing one to take the assets of another to satisfy a legal obligation?
Attachment bond
If an insured has an umbrella liability policy in addition to his personal auto policy, which would be considered the underlying policy?
Auto policy
What type of bond guarantees that a construction contractor will enter into a contract at a set price?
Bid bond
Which of the following is NOT a contract bond?
Bid bond
A professional who wants coverage for all liability exposures should purchase what form of liability insurance?
Commercial general and professional
What type of insurance can be obtained through a surplus lines insurer?
Coverage that is unavailable through authorized insurers