PnC continues
Agents may be found guilty of defamation if they make false statements that are intended to
Maliciously criticize another insurance company.
In order to receive transportation expenses under the Personal Auto policy following damage to your auto caused by collision;
u must have Collision coverage. ($20 a day up to $600, if not usable for more than 24 hrs and dec page states u have ^ for auto.)
The broad cause of loss form in the CPropP contains 3 perils in addition to the basic form perils.. which is NOT one of those 3?
Utility Services.
What injury is less physical than those covered under bodily injury liability?
Personal Injury liability.
What is NOT an element of insurable risk:
Personal.
Unless additional cvgs are added to a BOP, maximum cvg on an outdoor sign attached to a building is limited to
$1,000.
An insured and spouse hit a sign and caused $1,350 in damage to their car. They have a $250 deductible. They alr collected a $1,500 claim earlier this year. How much can they collect on this claim?
$1,100. (Difference b/w this claim and deductible amount. Collision deductibles apply to every collision.
The BOPolicy extension cvg form for personal property off-premises is limited to
$10,000.
Trucking co. has a $1 mill umbrella policy in place. BO has a 200/500/100 limit on auto policy and a personal liability of $400,000. After a car accident, the business is sued. Injuries are awarded to a single injured party for $300,000. Business actually only had 100/250/50 auto liability limits. How much will the umbrella policy pay?
$100,000
Driver completed a defensive driving course & received a policy w/ a discounted premium in 2021. In what year will this discount expire?
2024 (last 3 years.)
Sudden, unplanned, and unexpected event, not under control of insured, results in injury or damage that is neither expected nor intended=
Accident.
House insured w/ a HO policy was blown off by a tornado. It must be demolished and removed for a replacement to be built. Which is true ab debris removal?
An additional 5% of the policy limit may be paid for debris removal.
HO-4 (contents broad) form designed for tenants covers losses on what basis?
Broad peril
To determine ACV; what's deducted from RCost?
Depreciated value.
Commercial crime cvg that would cover losses resulting from the theft of money, securities, and other property by employees is
Employee theft.
Premiums collected on behalf of the Ins. company by an agent will be held in
Fiduciary capacity.
Restoring an insured financially after a claim is known as
Indemnity.
Considered conditions in an Ins. policy EXCEPT
Insuring Agreement.
Agreement enforceable by law is known as what contract?
Legal.
Which of the following is the other major cvg provided by the BO liability coverage form:
Medical Payments.
Lost Treasures' guard dog scared a passerby who claims it was a traumatic experience and now suffers nightmares. Why will the Personal and Advertising Injury liability section (Cvg B) of the CGL policy cover this claim?
Mental anguish is a covered injury.
If an insurance policy has the Additional Cvg provision; how is the policy premium affected?
No additional premium.
An insurer's right to take possession of property after having paid for the loss is referred to as the
Right to salvage.
Insured's gardener damaged neighbor's flowerbed. Insured becomes legally liable for this damage. This is an example of
Vicarious liability.
When does the federal emergency Flood Ins program go into effect?
When a community applies for the program.
Main distinction b/w hired and a non-owned auto:
Who owns the auto.
Second Injury Fund will pay benefits in which of the situations:
an employee w/ a previous injury suffers a second injury that causes disability to be more serious.
Which of the following injuries may be covered under Coverage C-Medical Payments of a Commercial General Liability policy:
injuries to a member of the general public that occurs on the premises.
Which of the following would NOT be covered by uninsured motorist cvg?
insured causes a head-on collision w/ the car of an UI motorist. (applies when UIM is at-fault).
Structure may be eligible for cvg under the NFIP if it meets all reqs EXCEPT
is entirely over water.
With respect to CPackagePolicy; an interline endorsement is one that
may apply to more than one line of Ins that is included in the package. Prepared to eliminate redundancy and minimize the number of endorsements.
HO-5= insures both buildings and personal property on an
open peril basis.
All are true regarding the cancellation condition of a policy EXCEPT insurer must
provide proof that the insured received the notice. (Only that it was mailed.)
Under an HO-2 policy, the insurer will pay no more than the ACV of the property damage until
the property repair or replacement is complete.
Deductibles for Uninsured Motorist Cvg may not be below which dollar amount?
$250.
What is the waiting period for transportation expenses cvg for a loss other than theft of a covered vehicle?
24 hours.
Under BPersonalP limit-Seasonal increase if no % is specified in Dec.. seasonal fluctuations will auto increase the BPP limit by
25%.
John uses appraiser;
Appraisal.
A personal umbrella policy may act as excess over any of the following Ins cvg policies EXCEPT for
Auto collision cvg bc it is not a liability cvg.
A HO has misplaced some of her insured personal property and has no idea what may have happened. Which policy form would cover such a loss?
HO-5 (mysterious disappearance).
HO policy form that covers Condo unit owners is
HO-6.
Term includes losses caused by continuous or repeated exposure to conditions resulting in injury to persons or damage to property, neither intended nor expected?
Occurrence.
Which of the following is NOT available in Package Policy:
Professional liability.
An insured's child ran into a neighbor's planter and broke it. The cost to replace the pot is $400, and plants are $100. Which section of the insured's HO policy would pay?
Section II w/ no deductible. (Up to $1000; additional cvg damage to property of others).
Amount of loss the insured is willing to absorb w/o ins protection:
Self-insured retention.
Insured decides to never drive and wants to transfer the auto policy to wife. What does the insured need?
The written consent of insurer.
Your friend's dog that u are keeping while friend is out of town bit a visitor in ur home. Does HO liability cvg apply?
Yes, coverage would apply for any animal in your care.
Purpose of the ordinance or law coverage endorsement:
to remove the exclusion of losses resulting from ordinances or laws.
As specified in protective safeguard endorsement added to a BO policy, if the automatic sprinkler system is shut down due to freezing conditions; insured does not need to notify the Ins company as long as the system is restored
within 48 hours.
Entities eligible for a business owner's policy:
Convenience stores.
Which of the following statements does NOT describe endorsements?
Endorsements may only add coverage to a current policy, not removed.
Insured's diner suffered a fire loss; the floor had to be replaced due to water damage. The insured was w/o income for 4 weeks. What part of the losses would be paid as Indirect loss?
Loss of income for the time the diner was closed.
Owner of a clothing boutique and has a Floor Plan Merchandise Floater to cover property financed until it is sold. 3 dresses stolen, yet she did not file a report to her Ins co. until recently. How much will the insurer pay for loss?
Only 90% of the limit written.
All are additional cvgs under a HO policy EXCEPT
Outbuildings (covered under C. B-Other structures.)
In contrasting stock insurers w/ mutual insurers, which statement is true?
Stock insurers are owned by shareholders and issue nonparticipating policies.
Insurer acquires the insured's rights against a 3rd party for purposes of receiving indemnification for loss:
Subrogation.
An insured was having a new home built, contractor broke several windows in a neighbor's home, who pays for damage?
The contractor.
All are considerations in determining which state's law applies when a worker is required to travel into another state and is injured while working in the other state EXCEPT
The insurer's chartered location or domicile.
When does the insurer's duty to defend a suit or claim end in a CGL policy?
When loss payments equal the applicable limit of insurance.
