PA Property and Casualty

The Business Pursuits endorsement under Section II of a homeowners policy will cover all of the following EXCEPT

Business liability.

Crime insurance is usually written on what basis?

all risk

A plasterer has finished a job. What kind of liability coverage would protect him if the plaster falls and hurts someone because he did not do the job correctly?

Completed Operations

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

Fair Credit Report Act

In liability insurance policies, supplementary payments are made

In addition to the limit of liability.

All of the following conditions must exist for injury or damage to be included in the products and completed operations hazard of a commercial general liability policy EXCEPT

The injury or damage must occur within 90 days after the insured's work is completed.

The members of a limited liability company are insureds under a businessowners policy (BOP) if

The limited liability company is designated as the named insured.

All of the following are special personal property limits under a homeowners policy EXCEPT

$500 for business personal property on the insured premises.

Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to

10 years

In the split limit coverage in personal auto policies, which limit indicates the maximum amount the policy will pay for bodily injury per person?

1st limit

Within how many years of a loss may an insured bring a lawsuit against an insurer, according to the dwelling policy?

2 Years

According to the loss payment condition in HO policies, losses must be paid within how many days of the insurer receiving proof of loss?

60 days

Coverage F - Unscheduled Farm Personal Property is subject to a coinsurance clause of

80%

For how long must a company maintain a complete file of all advertisements used?

At least 4 years

Which bond is required by a court before allowing one to take the assets of another to satisfy a legal obligation?

Attachment Bond

Homeowners policies provide coverage for

Business property while on the residence premises.

Which of the following is an additional coverage that is covered by the broad causes of loss form?

Collapse

An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's liability policy has a limit of $500,000. This amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does the insured have?

Combined single

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT

Conditions

Which of the following property coverages would provide protection to contents damaged by fire?

Coverage C

In a dwelling policy, which of the following provides coverage for additional living expenses incurred by an owner-occupant in the event a covered peril makes the premises uninhabitable due to a covered loss?

Coverage E

The extra expense coverage form provides

Coverage that will permit the insured to continue in business without interruption following a property damage loss.

Which of the following is a mandatory part of an insurance policy that varies with each individual policy?

Declarations

Which of the following authorities monitors the financial strength of insurers?

Dept of Insurance

The section of an insurance policy that details what perils are not insured against and what persons are not insured is known as the

Exclusions

The provision in Pennsylvania workers compensation that requires an employer to pay compensation, without regard to negligence, according to a compensation schedule set by law, and for the injured employee to agree to limit the employer's responsibility to the amount of workers compensation to which he or she is entitled, is called

Exclusive Remedy

What method of premium computation relates an employer's losses, payroll, and premiums to the rating bureau's classifications of operations?

Experience modification factor

All of the following are excluded in the equipment breakdown basic policy EXCEPT

Explosion of Steam Boilers

Producers are responsible to collect and disperse premiums, and return premiums or other funds. Which insurance term is associated with this?

Fiduciary capacity

In accordance with American Institute Hull Clauses, a pro rata return of premium will be given for all the following reasons EXCEPT

If the policy is cancelled by the insured.

Which of the following is NOT true if ownership changes, voluntary or otherwise?

If the vessel already has sailed from her loading port, automatic termination may be deferred until 15 days after arrival at final port of discharge.

CGL Coverage B (Personal and Advertising Injury) will cover

Inadvertent injury to others caused in the course of advertising the insured's product.

When an insured has multiple autos insured, what effect does the stacking of UM and UIM coverage have in terms of the benefits available?

Increases the limit of bodily injury coverage available to an insured to a total equal to the sum of the bodily injury available on all autos insured

Which of the following best describes a misrepresentation?

Issuing sales material with exaggerated statements about policy benefits

Which of the following is true regarding the fire department service charge under the builders risk form?

It is an additional coverage.

In a dwelling policy, which of the following is true regarding personal liability coverage?

It must be added as a supplement or written as a separate policy.

Which of the following statements is NOT true regarding a personal umbrella liability policy?

It provides errors and omissions coverage for an agency.

All of these are excluded losses under ocean marine policies EXCEPT

Jettison

The process of determining the premium charged and how much insurance is required for a particular loss is called

Loss Valuation

Under Commercial Crime Coverage Form K - Liability for Guests' Property - Safe Deposit Box, which covered is included?

Loss resulting from acts of employee dishonesty

In which type of commercial crime policy coverage is triggered by a loss that happens during the policy period but is not necessarily discovered during the policy period?

Loss sustained form

An insured's home is mortgaged by the local bank. The insured is required to carry insurance on the home, showing the bank as the mortgagee. If the home is damaged by a covered peril, which of the following is true?

Losses will be paid to the mortgagee and mortgagor as their interest appears.

Which of the following is NOT a duty of the employer/insured if an injury occurs at the workplace?

Make voluntary payments for treatment of the worker's injury

Rates that are established based on the similarities of the risk with other risks are known as

Manual Rates

According to the doctrine of contributory negligence, when an individual is found to have contributed to his or her own loss in any way, another party

May not be held liable.

If a court ordered payment for a loss that was not covered in the policy even if it was clearly worded, it would be an example of which legal concept?

Reasonable expectations

Which of the following persons may be covered under farm Coverage J?

Resident Employees

Jim owns and operates the "No-tell Motel". He wishes to purchase a crime coverage that will pay for the loss of a customer's property left in the motel's safe for safe-keeping, whether or not the motel is legally responsible for such loss. He should purchase

Safe Depository or Direct Loss.

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

Second injury funds programs.

Which of the following perils is covered by the HO-2 and HO-3?

Sudden Rupture to heating system

All of the following are unfair claims settlement practices EXCEPT

Suggesting negotiations in settling the claim.

The claims-made trigger is based on which of the following?

The date the claim is first made in writing against an insured for injury or damage that occurred on or after the policys retroactive date

The contents coverage on a homeowners policy would pay how much after the loss of one of a pair of golden candlesticks?

The difference in the actual cash value as a pair and as a single

Under the "limited tort insurance" option, an insured may not seek recovery for pain and suffering or other nonmonetary damages UNLESS

The injuries fall within the definition of "serious injury."

Under the provisions of the business income coverage form, all of the following are true EXCEPT

The insured is reimbursed for the loss from the date of loss to the date of restoration or policy expiration date, whichever comes first.

Which of the following is NOT a characteristic of an insurable

The loss must be catastrophic.

Under Crime Coverage Form I - Lessees of Safe Deposit Boxes, securities are only covered in the event of

Theft

The other insurances clause of an ocean marine policy allows coverage for which reasons?

To obtain coverage for war, strikes, and related risks not covered by the policy

In the personal auto policy, owned trailers being towed by an insured auto are automatically covered for

Uninsured Motorist Coverage

One of the primary benefits to the insured in selecting the "full tort option" under their auto insurance coverage is

Unrestricted ability to sue for pain and suffering.

How soon after the due date should the insurer pay the agent appointment fees?

Within 30 days

A commercial package policy (CPP) allows the insured to select the coverage needed and customize the policy to meet the needs of the insured's business. In a CPP, the business owner may select from all of the following types of coverage EXCEPT

Workers Compensation

For how long after the death of the named insured must basic property insurance continue coverage?

180 days

Which of the following endorsements is used by individual business owners who use company vehicles for personal use rather than purchasing a personal vehicle?

Individual named insured

Which inland marine coverage condition states that payment of any claim will not reduce the limit of insurance, except in case of a total loss on a scheduled item?

Reinstatement of limit