P&C guaranteeed
Business auto coverages apply only to those autos that are identified as covered autos in the declarations page by entry of the appropriate numerical symbol. Which symbol affords the broadest coverage?
1
The personal property off premises extension of dwelling forms provides limits of coverage up to
10% of coverage c anywhere in the world
When an insured purchased his home 10 yrs ago for $80,000 it had a replacement cost of $100,000 today the home has a replacement cost of $200,000 and has deprecated by 4% each year. The insured's home had an actual cash value of
120,000
Farmer steves shed has been vacant for an entire year when he filed a claim to cover some recent damage to the shed how much will his farm policy pay
50% of the limit of insurance
Which of the following would be eligible for a HO coverage F medical payments in the event of the injury at the insured's premises
A full time maid
HO policies consider all of the following insured locations excepy
A strawberry patch owned by the insured
Coverage E and/or coverage F would respond to a claim arising from all of the following Except?
An insureds 14 year old throwing rocks
The statutory law defense that reduces injury and awards for damages proportionately when the plaintaif and defendant are both responsible is called
Comparative negligence
Which of the following agencies administers the National Flood Insurance Program
FIA
Insurance rates developed by the underwriter based on his skill and experience instead of actuarial analysis are known as
Judgement rates
Which of the following exposures is not covered under HO policy
Medical payments to an insured
The extended non owned coverage provides protection to
Only the person named on the policy
All of the following are additional coverages under a homeowners policy except
Outbuildings
A stock insurer is defined as an insurer
Owned by its stock holders
What does a HO personal property coverage not cover?
Persona property of roomers not related to the insured
Business owners liability coverage automatically includes all of the following liability coverages except
Pollution
The defendant being released on a surety bond is the
Princial
For an additional premium, the extended coverages written on the basic form dwelling policy would cover which of the following?
Riot
The amount of loss the insured is willing to absorb without insurance protection is known as
Self insured retention
Which of the following symbols in a business auto policy indicates that the coverage for newly acquired vehicles applies if the insurer already covers all autos owned by the insured
Symbol 7
When is the agent acting within the conditions of its agents?
Whenever the agent is acting within the conditions of the contract
Coverage provided by the NFIP will not cover
Fences, outdoors swimming pools
Which of the following is covered under a feeling policy?
Fire caused by an earthquake
An insured has a maximum limit of coverage available under her liability policy during a policy year, regardless of the number of claims made or or the number of accidents. Her limits are restored at the policy anniversary. What type of limit does this insured have?
Aggregrate
Coverage D additional living expenses is intended to
Allow the family to maintain their normal standard of living
A temporary license may be issued to all of the following individuals except
Executor of a deceased insured's estate
If an agent follows the rules and terms of his agent contract he is exefcising
Express authority
Which would not be covered by an insured's uninsured motorist coverage
The insured causes a head on collision with the car of an uninsured motorists
A liability policy that provides coverage for a claim for injury or damage only if the claim is first reported or filed during the policy period is called?
Claims made form
A lender who conditions approval of a loan on the condition that the borrower purchase insurance from that lender may be guilty of?
Coercion
Under which legal defense is there an apportionment of damages based upon the degree of fault of each of the plaintiffs and the defendant?
Comparative negligence
Coverage c in HO policy form offers all of the following except?
Coverage for loss of use
Which of the following clauses excludes assignment or granting of policy provisions to any person who repairs property for a fee?
No benefit to Bailee clause
A pharmacy offers a delivery service to its customers. When the delivery parked his truck in front of a customers home, someone broke into the delivery truck and stole the money inside. Which crime coverage will cover the loss of the money?
Outside the premises
All are true of the Sc valued policy law except
It applied to both real and personal property
Which of the following types of bonds guarantees that a supplier will furnish supplies materials products and equipment as specified in the written contract
Supply bond
When an employee got her a new job she was told that the local government required her to get a bond to guarantee that she would follow the city laws and regulations associated with her job. What kind of bond does the employee need
A license and permit bond
All of the following will be considered the insured under part B:medical payments of a personal auto policy except
A person using the insured's covered car without permission
Which of the following exclusions applies to both personal injury and advertising injury in the BOP
Willful violation of a penal statue or ordinance committed by the insured
An individual just applied for National Flood Insurance. How many days can she expect to wait before coverage is effective?
30
When a licensed insurance producer places insurance business with an insurer that has not appointed the producer he is deemed to be acting as
A broker
The transfer of a legal right or interest in an insurance policy is called
An assignment
Which of the following exclusions would specifically fall under coverage E
Contractual liability
Which of the following exposures is not covered under the garage liability form
Contractual liability
Which of the following is eligible for a businessowners policy?
Convenience stores
Which commercial property form provides coverage for the insured's legal liability for property in her or her care, custody, or control?
Legal liability
An insured's diner suffered a fire loss. In addition to the damage cause by the fire the floor covering had to be replaced bc of the water damage. It took 4 wks for the repairs to be completed. The insured was without income for that period of time. The insured's policy includes both direct and indirect loss coverage. What part of the loss would be paid as indirect loss?
The loss of income for the time the diner was closed
The insurance fraud act which facilitates detection of fraud requires investigation of fraud and sets penalties for fraud is also known as
The omnibus insurance fraud and reporting immunity act
Which statement is an accurate description of life insurance policy dividends
They are not taxable and not guaranteed
When does the federal emergency flood insurance program go into effect
When a community applies for the program
If a car is stolen and left in a snow bank, causin the radiator to freeze and sustain heavy damage is the damage covered by the auto policy
Yes, freezing exclusion is removed if the car is stolen
While engaged in a pick-up soccer game in the neighborhood park, the insured collides with another player, breaking his nose. Would the insured's homeowners medical payments cover the injury?
Yes, medical payments coverage also applied off the insured's premises
According the business property coverage form vacancy condition, if a policy is issued to the owner of the building the building will be considered vacant if what portion of square footage is unused?
70%
Which of the following insurance principles states that ambiguities in a policy will always be construed in favor of the insured
Adhesion
Under coverage c and at the request of an insured personal property of a guest or residence employee is covered
While it is in any residence premises occupied by an insured
In a personal auto policy, underinsured motorist coverage applies when?
You are injured in an auto accident with another motorist who is at fault but has limits of insurance that are not adequate to cover your medical expenses
Anthony has insured his dwelling under two fire policies if Anthony suffers a fire loss, what provision in the policies will prevent Anthony from collecting more than the actual amount of the fire damage
Apportionment clause
Which of the following would not be covered under the directors and officers liability coverage
Reimbursements for fines and penalties
Which of the following dwelling policies require insurance equal to at least 80% of the replacement value of the dwelling at the time of loss in order to provide replacement cost coverage?
DP2 and DP3
A policyholder believes that his company is committing insurance fraud. Which of the following is the right authority for investigating this matter?
Director
A HO has misplaced some of her insured personal property and has no idea what may have happened to it. Which HO policy form would cover such a loss?
HO-5
Under coverage B a homeowners policy provides coverage for other structures on the residence premises. Which of the following statements is Not true of this coverage?
Any loss paid under Coverage B reduces the coverage A limit of liability
Which of the following is not an example of the company's location of incorporation
Authorized
The equipment breakdown coverage form provides coverage for all of the following except
Bodily injury liability
The obligation to a compensate injured workers without regard to fault or negligence is known as?
Absolute liability
Which of the following would be added for coverage under a property policy by an endorsement
Additional insured's
Coverage B-personal and advertising injury liability responds to claims arising from
Suits alleging infringement of a copyright
Under a commercial general liability policy which of the following is not considered mobile equipment
An automobile used as a company car by a real estate company
The second injury fund will pay the benefits in which of the following situations
An employee with a previous injury suffers a second injury that causes the disability to be more serious
A scheduled personal property endorsement will be used to insure?
Higher limits of coverage for fine arts items
Under the employee theft coverage when a covered employee is found to have participated in a dishonest act the coverage for that employee will termninate
Immediately
When reviewing a standard workers compensation and employees liability policy, the limits of coverages are described in part one of the policy. The dollar limits of the benefits provided are stated
In the state workers compensation law itself
With respect to the commercial package policy, an inter line endorsement is one that
May apply to more than one line of insurance that is included in the package
What coverage form in the Farm policy insures equipment on an open peril basis?
Mobile agriculture machinery and equipment
A liability insurance policy that covers all claims arising out of incidents occurring during the policy period, regardless of whether the policy is still in effect at the time that the claim is made is called?
Occurrence policy
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 no owned autos?
Physical damage coverage
Which of the following is not available in a package policy
Professional liability
The equipment breakdown coverage from values loss on
Replacement cost basis
Which of the following statements is correct regarding the debris removal coverage under the BOP?
The insured's limit of liability is 25% of the sum of the direct loss payment plus the deductible amount
What was the purpose of the Motor Carrier Act of 1980
To establish financial responsibility requirements for interstate motor carriers
The director intends to hold a public hearing to provide public with info related to the SC Wind and Hail underwriting Association. How many days of notice should she provide?
30
Space age rockets makes model rockets supplies and has 12 employees. The company is located in Atl, Ga. Ga has compulsory workers comp laws. Space age's owner thinks that his company is too small and unprofitable to carry the workers comp plan mandated by the state. Possible consequences of noncompliance includes all of the following except
Forced payment of billing for services rendered by any private insurer that binds coverage based on an employees request for coverage
For negligent liability to exist which is not a requirement
Intervening cause
The garage coverage form is written to cover the insurance needs of an insured in the business of selling repairing servicing or storing automobiles. Which of the following coverages are not included in a garage policy
Physical damage on a costumers auto
Policy limits are the maximum amount an insured may collect, or for which an insured is protected under the terms of the?
Policy
All of the following statements about a mutual insurance companies are correct except
Policy dividends issued by mutual companies are guaranteed and not taxable
Which of the following commercial auto coverage provides protection for most commercial auto exposures except truckers, garages, and motor carriers?
Business auto coverage
An insured rents out a bedroom in his residence for $50 a week. The residence is badly damaged by fire. During the 3 weeks required to repair the fire damage, the insured pays $900 in rent for a short term apartment and the renter is forced to find other accommodations. Disregarding any extra expense for meals, how much would a H0-3 will pay under coverage D?
$1050
Roger owned a grocery store and had a reporting form policy with a $100,000 limit for the stores inventory. The last report Roger submitted was during a slow period and showed a value of $50,000. The value increased to $75,000 and Roger failed to submit his next report when due. What is the maximum amount of coverage Roger has?
$50,000
With regard to HO section II, which of the following does not meet the definition of insured location?
A plot of farmland owned or rented by the insured
You are at fault in an auto wreck out of state, how does your company adjust
At least to the min required by that state
A personal umbrella policy may act as excess over any of the following insurance coverage policies except
Auto collision coverage
In a DP-1 if the insured elects to apply Coverage B to a detached garage, coverage A will
Be reduced by 10%
An audit revealed the administrator for a pension plan has made investments that were not consistent with the risk tolerance set forth in the plan for its members. The earnings for the past year are substantially below the average for comparable funds. The governing board wants to take action against the administrator. What type of commercial liability would the board need to provide for this risk?
Fiduciary liability policy paid by the pension fund
Which of the following describes an insurers responsibility for payment, under a policy, as stated in the common policy provisions?
Limits of liability
Which endorsement when added to the personal auto policy alters the definition of covered auto to include motor homes golf carts or motorcycles
Misc type vehicles endorsement
What are the two sources for workers compensation insurance?
Monopolistic state fund and competitive market
An insurance company that is owned by its policyholders is a
Mutual insurer
An insured's child ran into a neighbors planet on his bicycle and broke the planter and ruined the plants. The cost to replace the planter was $400 and the cost to replace the plants was $100. Which section of the insured's HO policy would pay?
Section II with no deductible
Which of the following entities becomes involved in the event of insurer insolvencies
The South Carolina life and Heath guaranty association
In liability policy with split limits of 25/50/25 which number is the max amount that would be payable in the event of damage to a persons property?
The amount of the 3rd number
If a licensee wants to transact insurance under a different name than that listed on the producers license, which of the following must occur?
The change must be reported to the director
Which of the following is false concerning liability coverage of a business auto polic
The company will reimburse the insured for all loss of earnings
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
