P&C Practice EXAM

Coverage for medical payments under a personal auto policy applies to expenses following a covered accident that are incurred and services rendered within what maximum time period?

3 years

When other insurance is written on the same basis as a commercial property policy, the obligation of the insurer is to cover

A share of the loss

What type of liability would a person who owns wild animals have?

Absolute

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

Agreed value

A policy condition that stipulates how the amount of damaged or lost property will be determined if the insured and the principal do not agree on the value of a property loss is known as

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?

Appraisal

Who will transport the property of anyone who hires them?

Common carriers

An insured's business is damaged because of a fire, and he is forced to close the business temporarily for repairs. As a result, the insured lost income. What type of loss is this?

Consequential

The designation symbols used in commercial auto policies can be found in which policy section?

Covered auto

In businessowners policies, which coverage will require a deductible?

Debris removal

The part of a property policy that shows the amount of insurance, premium, and policy term is the

Declarations

Who would be named on the declarations page of a property or liability policy

First named insured

Events or conditions that increase the chances of an insured loss occurring are referred to as

Hazards

An additional loss that results from a direct loss of property is called a/an

Indirect loss

Which personal auto coverage would pay for the insured's travel expenses and loss of earnings while involved in the settlement process of a covered loss?

Liability coverage

A policy condition that states if a policy is broadened with no additional premium, then the expanded coverage will be automatically applied to all policies of the same type is known as

Liberalization clause

What is NOT part of the policy structure?

Provisions

Which method of loss valuation is contrary to the basic concept of indemnity?

Replacement cost

What symbol is available to an insured with vehicles subject to no-fault coverage

Symbol 5

What is the purpose of a stated value contract?

To pre-establish the amount of coverage available for property items that are difficult to value

What is the business auto coverage territory for?

United States & its territories, Canada, or worldwide for private passenger hired autos

In insurance, an OFFER is usually made when

an applicant submits an application to the insurer

A hazard is

any condition or exposure that increases the possibility of loss

How is the commissioner selected for the office

appointed by the governor

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

extra expenses

Losses caused by continuous or repeated exposure to conditions resulting in injury to persons or damage to property that is neither intended nor expected is the definition of

occurrence

A certificate of insurance is a written document that

shows the types and amount of insurance issued to the insured

Property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called

specific coverage

The policy provision found in property insurance policies that prevents the insured from collecting twice for the same loss is

subrogation

for what reason can a temporary license be issued

to service existing business