P&C Insurance

Business auto coverage form-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.

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?

Trailer interchange coverage

A trucking business swaps trailers with other carriers. What coverage is necessary to cover loss to the other's trailer while in the borrower's possession?

Damage to a third-party property for which the insured is legally liable.---Legal liability-its a primary coverage

Additional coverages in the liability section of a homeowners policy cover all of the following EXCEPT

Reconstruct for the insurer a timeline of activities leading up to the loss for use in an investigation.

After a loss, an insured covered by a business property coverage is NOT required to

Common carrier cargo liability-The four classes of inland marine risks are the following: domestic shipments and transportation risks; bridges, tunnels, and other instrumentalities of transportation and communication; commercial property floater risks; and personal property floater risks.

All of the following are classes of inland marine risks EXCEPT

Insuring agreement

All of the following are conditions commonly found in the insurance policy EXCEPT

Provisions

All of the following are considered parts of the policy structure EXCEPT

Dwelling Replacement Cost

All of the following are optional coverages that may be attached to an HO-3 policy EXCEPT

Theft of personal property

All of the following are other coverages included in both the broad and special form dwelling policy EXCEPT

Newly acquired or constructed property

All of the following coverages are included in the BOP without requesting coverage extensions EXCEPT

Personal lawnmower of a tenant used to service the described location.-property belonging to a tenant is not covered

All of the following property is insured under Coverage A of a farm policy EXCEPT

It provides coverage for all employees, even those employees who were terminated in the past 90 days.-By definition, an employee covered under the employee dishonesty optional coverage is one who is currently employed or who was terminated in the past 30 days.

All of the following statements are true regarding employee dishonesty optional coverage under the businessowners policy (BOP) EXCEPT

Fair Credit Reporting Act

An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company?

Drive other car coverage

An employee drives a company auto, but does not own a vehicle herself. What endorsement could be added to the insurance policy covering the company auto that would provide coverage to the employee when she drives someone else's car for her personal use?

It will provide coverage because the damage to the client resulted from the producer's negligence

An insurance producer fails to obtain automobile insurance for 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?

Captive Agent

An insurance producer who by contract is bound to write insurance for only one company or group of companies is classified as a/an

$14000-The limit is not more than $5,000 per person, per accident.

An insured has $5,000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000 for the first passenger, and $8,000 for the second passenger. How much will the policy pay under medical payments policy?

1000

An insured has a homeowners policy and is required to be a member of the homeowners association in her neighborhood. The association's community house has burned down, and the insured has been assessed $1200 for her share of the rebuilding cost. How much of the assessment will her homeowners policy pay?

$6,000 would be paid under other-than-collision coverage.-Because the proximate cause of the loss was contact with an animal, all of the damage would be paid under other-than-collision coverage.

An insured hits a deer and crashes his car into a tree. The total damage to the vehicle is $6,000. How will this loss be covered?

up to 1000

An insured is a member of the neighborhood association, and has become liable for damage to a third party. Each member of the association has been assessed a portion of the loss equal to $2,000. How much will the Loss Assessment additional coverage of the insured's homeowners liability policy pay?

A child trips over a toy in the driveway, cuts her knee, and requires stitches.

An insured runs a day care in her home. She has purchased the home day care endorsement under her homeowners policy. Which of the following losses would her coverage cover?

60 days

Assuming the insurer and the insured agree to the amount payable for a loss covered under a dwelling policy, how soon after the insurer has received proof of loss must it make payment?

Contracts of adhesion

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as

Mexico

Coverage territory of the businessowners policy (BOP) includes all of the following EXCEPT

5 days

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

If for 120 consecutive days, the limits applicable to the building and its contents are reduced by 50%.

If a farm building or structure is vacant or unoccupied, which is true?

The director

If a producer wants to use an alias instead of his real name, what authority must he notify?

Scheduled personal property endorsement

If the insured owns a watch valued at $10,000, full coverage can be provided on a homeowners policy by purchasing the

Experience rating plan

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

The insurer

In a farm policy, any cost incurred by the insurer for the investigation or defense of a claim will be paid by

For an additional premium

In addition to the coverages built into the property coverage form, insurers may offer other endorsements that can further expand the coverage provided in the policy

Coverage by endorsement

In dwelling policies, automatic increase in insurance is

Insureds

Persons covered under an insurance policy, whether named or not, are known as the

Abandonment.-Until the insurer has determined that the loss is total, the insured must protect the property from further loss.

The property condition that precludes the insured from simply turning over damaged property to the insurer and claiming a total loss is called

50% of the amount provided as Coverage A.

Under Coverage C of a homeowners policy, the amount of insurance provided to cover personal property of the insured is

At any time by mailing a written notice of cancellation.

Under a businessowners policy, an insured can cancel the policy

10 days

Under businessowners policy Section I, if an insurer wants to nonrenew a policy, how many days before the expiration date must the insurer notify the mortgageholder?

Respond to the customer complaint

Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must

During the policy period and for up to 3 years after the termination of the policy

Under the examinations of books and records condition, the insurance company has the right to examine and audit the insured's books and records related to the policy

Contractual liability coverage

Under which type of coverage does the insurer agree to pay for bodily injury or property damage liability which the insured has agreed to assume under a written contractual agreement?

Prepackaged software

Valuable papers and records form provides coverage for the reconstruction of all of the following types of records EXCEPT

other insurance

What insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk?

1000

What is the maximum fine for an unintentional violation of the Property and Casualty Insurance Rate and Form Act?

2500

What is the maximum penalty for habitual willful What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?

Principal

What is the term for the entity that an agent represents regarding contractual agreements with third parties?

Experience Modification Factor

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

General-General compensatory damages are for intangible elements that cannot be specifically measured in terms of dollars.

What type of compensatory damages will pay for pain and suffering and disfigurement?

Only if the insured does not have commercial auto coverage

When is a hired and nonowned auto liability endorsement available in a businessowners policy (BOP)?

it is included automatically

When is liability coverage included in a homeowners policy?

Only when the other party is legally liable but has no insurance

When would uninsured motorist coverage apply?

Implied

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?

Retroactive Date

Which commercial crime form would provide coverage for a loss that did not necessarily happen during the policy period but was revealed during the policy period?

Hull Insurance

Which of the aviation insurance coverages can be written to exclude coverage for losses arising from crashes or collisions?

Director

Which of the following authorities is responsible for issuing all certificates and licenses?

Issuing sales material with exaggerated statements about policy benefits

Which of the following best describes a misrepresentation?

consultant

Which of the following charges a fee to advise people regarding the advantages and disadvantages, insurable risks, benefits, coverage, or provisions of any insurance policy that could be issued in the state?

Unintentional acts arising from the operation of a farming business

Which of the following exposures is insured under Coverage I - Personal and Advertising Injury Liability?

Reciprocal

Which of the following insurance options would be considered a risk-sharing arrangement?

stock

Which of the following insurers are owned by stockholders who have the usual rights of ownership, including the right of voting?

Workers compensation

Which of the following is NOT an optional coverage available in a businessowners policy?

Any loans required to offset uncollectible amounts-Loan principal amounts are not covered under the form. However, other expenses, such as interest on necessary loans, are covered.

Which of the following is NOT covered under accounts receivable coverage form?

Damage to the insured's property caused by utility service disruption

Which of the following is NOT covered under the Utility Services - Time Element endorsement?

proof of carelessness

Which of the following is NOT one of the four primary elements considered in establishing negligence?

Federal Motor Carrier Safety Administration

Which of the following is the federal body that regulates truckers who travel across state lines?

It is a liability insurance company owned by its members

Which of the following is true regarding a risk retention group?

Personal Injury

Which of the following liability coverages must be added by endorsement to a homeowners policy in order to apply?

The insured damages a rented garage when he failed to stop in time.-damage to a nonowned structure is covered

Which of the following losses would be covered under the property damage liability coverage of a personal auto policy?

Mudslide caused by accumulation of water underground-Flood policies exclude losses caused by landslides, sinkholes, and falling water. Rising water or excessive runoff is covered.

Which of the following perils is covered by flood insurance?

An applicant who owns and lives on a commercial farm

Which of the following risks would NOT be eligible for coverage under a homeowners policy?

Coverage applies only to the extent that the underinsured motorist limits exceed the bodily injury limits carried by the operator of the other vehicle.

Which of the following statements is true concerning underinsured motorist coverage under a personal auto policy?

The insured would be responsible for the amount required as underlying limits in the event of a claim.

Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy?

Property and casualty

Which of the following types of producers can legally bind coverage in Nebraska?

Agreed Value

Which of the following types of valuation works best for property whose value does not fluctuate much?

Fuselage and wings

Which of the following will be covered by aviation hull insurance?

An auto borrowed from an employee-Hired automobiles include those that are leased, hired, rented, or borrowed, excluding autos that are owned by employees

Which of the following would NOT qualify as a hired auto?

Loss or damage to a locked safe, vault, or cash register

Which of the following would be covered under the crime coverage inside the premises - theft of money and securities?

Additional coverage

Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses?

Property damage liability

While an insured was towing a utility trailer with his auto, the trailer came loose and ran into a store front. What part of the insured's auto policy would pay for the damage to the store?

Temporary workers

Who is NOT considered an employee in a commercial general liability (CGL) policy?

Paid without consideration of fault or negligence on the part of either employee or employer

Workers compensation will pay under which of the following situations?

a self-contained pre packaged policy

A businessowners policy is

The coinsurance formula will apply

A company has a businessowners policy on a building with an estimated replacement cost of $300,000. The company carries $150,000 of insurance. If a loss occurs, how much will the insured company be paid?

Pay to defend the policyowner in the lawsuit because liability coverage contains a duty-to-defend provision

A deli owner has a businessowners liability policy. When a customer slipped and hurt herself at the deli, the liability policy paid for medical expenses. The customer, however, is now suing the business owner because she claims there was no caution sign warning her that the floor was wet. What is the insurer obligated to do?

Loss by vandalism and malicious mischief is excluded

A house insured under a dwelling policy has been vacant for 70 consecutive days. Which of the following statements is true?

Occupational disease caused or aggravated by a condition of employment

A plant worker for a chemicals manufacturer was recently diagnosed with a rare blood disease. She told her doctor that her job required her to handle industrial waste chemicals. Which of the following types of injuries is covered under the workers compensation policy?

Lost revenues from the restaurant-The restaurant will need a business income policy to provide this coverage.

A restaurant is out of business for 3 days after an insured's automobile hits an electrical pole. The pole falls and hits the building, knocking out all electrical power supply. Which of the following is NOT covered under the insured driver's auto policy?

No, because the claim results from copyright infringement and is not in an advertisement

Erroneous Publishing copied all the material from Angels Inc.'s book. The only changes made by Erroneous were to rename the title and chapters, put a different cover on it, and distribute it as its own. Angels Inc. files a claim against Erroneous and seeks damages. Will a commercial general liability policy cover the claim?

Extra expenses

Expenses that an organization would not have incurred if business interruption had not existed are known as

$1000

Farm policy Coverage B - Structures would pay how much for loss of an outside antenna, tower, or satellite dish?

Appraisal

Following a property loss that is covered under a businessowners policy, if the insurer and insured cannot agree on the amount of the loss, what method is used to resolve the issue?

Manual Rates

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

Physical Damage

Section I of a boatowners policy covers

No more than the per occurrence limit applies, no matter how many insureds are involved.

Several insureds have become liable because of a single loss. How will the policy's limit of liability be affected?

U.S. Longshore and Harbor Workers Compensation Act.

Shipbuilders and repairers are covered by the

Appointed by the governer

The Director is

Open peril coverage on the dwelling and broad form coverage on personal property.

The HO-3 homeowners policy provides

1 year

The businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period?

Lack of driving experience

The insurer may cancel an auto policy after it has been in effect for more than 60 days for any of the following reasons EXCEPT

Businessowners Liability Coverage Form

The liability coverage of the businessowners policy is written on a

The insured is injured while exiting a friend's mobile home.

The medical payments coverage in a personal auto policy will pay reasonable medical expenses for all of the following EXCEPT