pract exam 5
Which of the following statements is TRUE concerning the Businessowners policy
BOP is a type of package policy that prepackages a group of coverage desirable to small businesses
Coverage A of the HO-2 form would cover which of the following items
Paint to be used on the building
While in England an insured has her purse stolen and files a claim for $500 of cash, $1,000 in airline tickets, $250 for miscellaneous items and $50 for the value of the purse. How much of this loss would be covered under a DP-1 dwelling form? Answer Choices:Select the Correct Answer$0.$1,050.$1,800.$1,750.
$0
The NAIC Model Unfair Claim Settlement Practice Act provides for a financial penalty of _________ for each violation of the Act. Answer Choices:Select the Correct Answer$5,000.$1,000.$1,500.$2,000.
$1,000
Leland has two insurance policies covering his home. Indemnify Insurance carries a $120,000 limit of liability on the home, while Binders Keepers, Inc. carries a limit of $80,000. A fire breaks out in Leland's kitchen and causes $40,000 in damage. Remember, when there are two or more policies covering the same risk, the "other insurance clause", determines the method used to calculate each company's share of the claim. Leland's policy states that the pro-rata share method will be used. Which of the following is the correct amount that will be paid by Indemnify Insurance?
$24,000
Heather's house is fully insured with a DP-3 with a limit of $85,000. One day, the house is struck by lightning, and despite the fire department's efforts, burns to the ground. She still had a balance of $20,000 left on her mortgage at the time of the fire. What is the maximum indemnification that would go to Heather, the fire department, and her mortgage lender respectively? Answer Choices:Select the Correct Answer$64,500; $500; $20,000$84,500; $1,000; $20,000$65,000; $500; $20,000$85,000; $1,000; $85,000
$65,000; $500; $20,000
A Business Auto policy covers trailers with a load capacity of: Answer Choices:Select the Correct Answer5,000 pounds or less.Any weight.2,000 pounds or less.1,000 pounds or less.
2,000 pounds or less
The continuing education required by West Virginia insurance agent/producers must include _____ hours in the subject of:
3 / ethics
The West Virginia Insurance Commissioner may call a hearing for any purpose he/she deems necessary following the procedures required by state insurance law. A hearing must be held within _____ days of a request with notice given at least ______ days before the hearing. Answer Choices:Select the Correct Answer45/15.30/30.45/30.30/45.
45/15
How many continuing education credit hours in excess of the required number of hours may be carried over into the next reporting period by an agent or producer in West Virginia? Answer Choices:Select the Correct Answer 24 6 0 12
6
Standard Form #24
A cooperative bank cannot be covered unless a rider is attached.
An auto is described in the schedule of the Hired Autos endorsement to a Business Auto policy. For purposes of Business Auto coverage, this auto will be considered:
A covered auto owned by the named insured
Which of the following is NOT usually considered a "custodian" under the Securities Deposited with Others endorsement to a Crime policy? Answer Choices:Select the Correct AnswerA bank.A registered broker.A licensed property and casualty broker.A registered dealer.
A licensed property and casualty broker
Any intentional misinformation provided by an applicant for an insurance policy that would have kept the insurance company from issuing the policy had that information been known is: Answer Choices:Select the Correct AnswerA material misrepresentation.Malfeasance.Fraud.Concealment.
A material misrepresentation
A substandard risk rate under the West Virginia Automobile Insurance Plan is: Answer Choices:Select the Correct AnswerIt is a rate or premium charged to a substandard risk that is the same rate charged to a standard risk because the West Virginia Department requires all authorized insurers to write a certain number of substandard risks and write off their losses.A rate or premium charge that is double the standard rate to compensate the insurer for the greater risk in writing the policy.A rate or premium charge that is 1 1/2 times the preferred rate to compensate the insurer for the greater risk in writing the policy.A rate or premium charge that reflects a greater than nominal exposure to loss for an insurer writing policies as part of the Plan.
A rate or premium charge that reflects a greater than nominal exposure to loss for an insurer writing policies as part of the Plan
Which of the following flood zones show a "flood depth" instead of a "base flood elevation" on a FIRM?
AO
Loss to insured property caused by self-propelled missiles is covered under which of the following perils of the Homeowners form? Answer Choices:Select the Correct AnswerWindstormRiotAircraftVandalism
Aircraft
Under Section II of a Homeowners policy, a cemetery plot owned by the insured is considered to be: Answer Choices:Select the Correct AnswerAn excluded location.An insured location.A non-insured location.An additional location.
An insured location.
To prove negligence, the "proximate" or "legal cause" of an injury or loss, includes what important feature? Answer Choices:Select the Correct AnswerThe cause of the loss is not relevant if the defendant is proven to be legally liable.An intervening cause must have broken the chain of events before the proximate cause can be proven.The direct cause of the loss must also be the proximate (legal) cause of the loss.An unbroken chain of events lead to the bodily injury or property damage.
An unbroken chain of events lead to the bodily injury or property damage
Alec goes to an amusement park and rides a roller coaster that was designed to flip the riders upside down. Alec is taller than the average person so when the roller coaster flips, he hits his head on the safety bar. After receiving medical care, Alec files a claim against the amusement park, seeking payment for his medical bills, pain and suffering. What defense against negligence would the amusement park most likely use to deny this claim? Answer Choices:Select the Correct AnswerAssumption of risk.Contributory negligence.Comparative negligence.Intervening cause.
Assumption of risk
The endorsement used to report the insured's actual and estimated business income under an Equipment Breakdown policy is called: Answer Choices:Select the Correct AnswerReport of net income form.Earnings reporting form.Estimated income form.Business income—Report of Values form.
Business income—Report of Values form
Which of the following is NOT excluded by Section II - Liability of the Business Automobile policy? Answer Choices:Select the Correct AnswerCost to defend the insured.Work-related injuries to employees.Intentional injuries caused by the insured.Damage to property owned by the insured.
Cost to defend the insured
Which of the following would cover "unattached structures" under a Homeowners policy? Answer Choices:Select the Correct AnswerCoverage A.Coverage C.Coverage D.Coverage B.
Coverage B
All of the following are property policy additions and/or extensions of coverage that are likely to be amended by state statutory forms, EXCEPT: Answer Choices:Select the Correct AnswerDebris removal.Pollution clean-up costs.Ordinance or law coverage.Coverage for property removed.
Coverage for property removed
Which of the following Commercial Automobile endorsements extends existing coverage to the individual scheduled and their spouse while using any non-owned auto for both business and personal use? Answer Choices:Select the Correct AnswerDrive Other Car (DOC) endorsement.Joint Ownership endorsement.Named Non-Owner endorsement.Miscellaneous Type Vehicle endorsement.
Drive Other Car (DOC) endorsement
A business covered by a standard Businessowners policy is shut down due to the acts of a civil authority. Which of the following additional coverages would NOT be subject to a waiting period before coverage would apply? Answer Choices:Select the Correct AnswerBusiness Income.Extra Expense.Extended Business Income.Business Income from Dependent Properties.
Extra Expense
Angie has suffered an automobile physical damage loss. All of the following are the insured's duties after a loss under Angie's Personal Automobile policy, EXCEPT: Answer Choices:Select the Correct AnswerTake reasonable steps after the loss to protect the property from further damage.Promptly notify the police if the vehicle is stolen.Allow the insurer to inspect and appraise the damaged property.Facilitate the repairs to the vehicle and submit the invoice to the insurer.
Facilitate the repairs to the vehicle and submit the invoice to the insurer
All of the following are included in the Businessowners policy coverage territory, EXCEPT: Answer Choices:Select the Correct AnswerCanada.The United States.Mexico.The international waters of the United States.
Mexico
For a liability policy to pay a claim, the person who is legally liable: Must have committed an "intentional tort". Must be the third-party who caused the injury. Must be an "insured" under the policy. Must be the "first named insured" under the policy.
Must be an "insured" under the policy
The NAIC Model Unfair Claim Settlement Practices Act specifies that when a violation of the Act is suspected, a hearing must be held: Answer Choices:Select the Correct AnswerAnytime within a year following the violations being reported to the Department.Not less than 30 days after notice has been provided to those involved.Anytime within 3 months following the violations being reported to the Department.Not less than 15 days after notice has been provided to those involved.
Not less than 30 days after notice has been provided to those involved
Which of the following types of bonds guarantees that all project materials will be paid in full by the contractor upon completion of the project? Answer Choices:Select the Correct AnswerPerformance bond.Maintenance bond.Bid bond.Payment bond.
Payment bond
The original Terrorism Risk Insurance Act of 2002 defined an act of terrorism as a violent act or any act that is dangerous to all of the following, EXCEPT: Answer Choices:Select the Correct AnswerHuman life.Property.Infrastructure.Reputation.
Reputation
In a liability policy, the limits of coverage can be expressed as all of the following, EXCEPT: Answer Choices:Select the Correct AnswerRestrictedSingleSplitAggregate
Restricted
An office building is limited in the number of stories it may contain and still be eligible for coverage under a standard Businessowners Policy. This number is:
Six stories
Which of the following individuals was NOT required to be in concurrence with certifying an act of terrorism under the Terrorism Risk Insurance Act of 2002? Answer Choices:Select the Correct AnswerThe Secretary of State.The Secretary of Homeland Security.The Secretary of the Treasury.The United States Attorney General.
The Secretary of Homeland Security
The Mountain Top Corporation has three corporate officers. What would the state of West Virginia require this company to provide in terms of workers compensation coverage to these corporate officers?
The West Virginia workers compensation code provides that coverage can be rejected or they can be voluntarily covered
Which of the following Commercial Property cause of loss forms include the additional coverage for "Fungus, Wet Rot, Dry Rot, and Bacterial"? Answer Choices:Select the Correct AnswerThe special cause of loss form only.The broad and special cause of loss forms only.The basic, broad, and special cause of loss forms.The basic and broad cause of loss forms only.
The basic, broad, and special cause of loss forms
Which of the following statements is NOT TRUE regarding Part B of the personal automobile policy? Answer Choices:Select the Correct AnswerThe coverage limit applies per person.The coverage limit applies to any one accident.The coverage includes split limits to cover more than one person, per accident.The coverage provides for a single limit of liability.
The coverage includes split limits to cover more than one person, per accident..
Which of the following insurance marketing or distribution systems includes agents that are hired as actual employees of the insurance company?
The direct writer system
The insured has liability coverage with a limit of $300,000 per occurrence. She purchases a $1 million Personal Umbrella to extend and broaden her coverage. The Umbrella policy includes a $10,000 retained limit. The insured becomes liable for $800,000 in damages that are excluded by the underlying liability policy, but is covered by the Umbrella policy. How would this case likely be settled?
The insured would pay $10,000 and the Umbrella policy would pay $790,000. is correct
An insured has purchased a "claims-made" CGL policy to replace an "occurrence" policy that was previously carried. The new "claims-made" policy contains a retroactive date of 01/01/20. A claim that occurred 12/15/19 would be denied under the new "claims-made" policy for which of the following reasons? Answer Choices:Select the Correct AnswerThe retroactive date eliminates coverage for claims occurring before the date."Claims-made" coverage has more exclusions."Claims-made" coverage is excessive while "occurrence" coverage is primary.The insured would have to purchase the laser beam endorsement for coverage to apply.
The retroactive date eliminates coverage for claims occurring before the date
An insurance company that permits different rate classifications for individuals of the same class and same hazard may be guilty of
Unfair discrimination
Under "Coverage A - Building" of the BOP form, which of the following is NOT covered? Answer Choices:Select the Correct AnswerCompleted additions, and additions under construction.All permanently installed fixtures, machinery and equipment.Outdoor fixtures.Valuable papers and records.
Valuable papers and records
Under a Businessowners policy, the "Hired and Nonowned Auto Liability" endorsement would cover: Answer Choices:Select the Correct AnswerThe employer who uses his/her auto for personal use.Vehicles borrowed by the insured.The employee who uses his/her vehicle on personal business.The owner of a hired or non-owned vehicle.
Vehicles borrowed by the insured..
Suspecting a customer is shoplifting collectible sports cards, a security guard at the Too-High Toy Store takes the customer and his child to the office to await police. When the police arrive it is discovered that the customer nor his child shoplifted anything. The toy store is sued for wrongful detention and the court awards damages to the customer. Payment for the damages awarded: Answer Choices:Select the Correct AnswerWill be paid under Coverage B of the store's CGL policy.Will be paid under Coverage A of the store's CGL policy.Will be covered by the supplementary payments of the store's CGL policy.Are not covered by the store's CGL policy.
Will be paid under Coverage B of the store's CGL policy.
An examiner hired by the Commissioner
is NOT required to hold either an insurance agent's license or be a licensed attorney.
The Watercraft Endorsement
provides Liability and Medical Payments coverage that would otherwise be excluded under the Homeowners policy for watercraft.
Farmer Ellen is covered by a Farm Property policy. During a storm, two trees located on each side of the farmhouse front porch are blown down and cause roof damage. How much coverage does Ellen's policy provide to remove the trees?
$1,000 for any one loss regardless of the number of trees that have fallen but no more than $500 for the removal of any one tree
Under a DP-2 or DP-3 standardized policy what is the maximum that would be paid for one month for additional living expenses if Coverage A was $75,000? Answer Choices :Select the Correct Answer$1,250$500$1,000$750
$1,250
Which of the following is included in the Supplementary Payments under a standardized Personal Automobile policy? Answer Choices:Select the Correct AnswerLoss of earnings of 80%, with a daily limit of $50 per day.Interest accruing after a judgement is entered (post-judgement interest).Up to $500 for the cost of bail bonds necessary in defense of a claim.Up to $20 per day, for transportation expenses, not to exceed an aggregate limit of $600.
Interest accruing after a judgement is entered (post-judgement interest)..
If, after a hearing, the West Virginia Insurance Commissioner determines that a licensed producer has engaged in an Unfair Method of Competition (an Unfair Trade Practice), the Commissioner can do all of the following, EXCEPT: Answer Choices:Select the Correct AnswerIssue an order absolving the producer from penalties other than those under the insurance code.Issue a cease and desist order.Fine the producer an aggregate penalty of up to $100,000.Revoke or suspend the license of the producer.
Issue an order absolving the producer from penalties other than those under the insurance code
The Mobile Home endorsement to a Homeowners policy provides for loss settlement: Answer Choices:Select the Correct AnswerOn a replacement cost basis whether or not the insurance-to-value (coinsurance) requirement is met.On an actual cash value basis for the mobile home itself but replacement cost for carpeting and household appliances.On a replacement cost basis if the insurance-to-value (coinsurance) requirement is met.On an agreed value basis if the insurance-to-value (coinsurance) requirement is met.
On a replacement cost basis if the insurance-to-value (coinsurance) requirement is met
The maximum amount a liability policy will pay for all occurrences taking place during the policy period, is known as: Answer Choices:Select the Correct AnswerThe limit of liability.The single limit.Split limits.The aggregate limit.
The aggregate limit
Which of the following statements is TRUE regarding an ERISA fidelity bond? Answer Choices:Select the Correct AnswerCovers the losses when an employee commits fraud while performing services for clients.The bond cannot be issued for more than $500,000.The business or organization must purchase a bond that is at least equal to 20% of the total plan assets.The bond cannot be issued for less than $1,000.
The bond cannot be issued for less than $1,000.
Which of the following statements is TRUE regarding the deductible of the Earthquake Endorsement to a Homeowners policy? Answer Choices:Select the Correct AnswerThe minimum deductible offered for the earthquake endorsement is $500.The deductible of the earthquake endorsement may be decreased in exchange for a lower premium.The deductible of Coverage A on the Homeowners policy is applied to any earthquake loss along with the deductible selected on the earthquake endorsement.The lowest deductible an insured can select on the earthquake endorsement is $250.
The minimum deductible offered for the earthquake endorsement is $500
All of the following are "open-peril" exclusions of the HO-3 and HO-5 form, EXCEPT: Answer Choices:Select the Correct AnswerFlood.Neglect, deterioration, and general wear and tear.Theft.Mold, fungus, and wet rot.
Theft..
All of the following statements are TRUE regarding the perils of the Homeowners forms, EXCEPT: *Riot or Civil Commotion is covered for both the buildings and personal property under the open perils of the HO-5 form. *Fire or lightning is a named peril for personal property under the HO-3. *Explosion is a named peril of the HO-2 form for both dwelling and personal property. *Fire or lightning is a named peril covering the buildings and other structures under an HO-4 form.
Fire or lightning is a named peril covering the buildings and other structures under an HO-4 form
When a person purchases several insurance policies to provide more coverage on a risk than the value of the possible loss, it is known as: Answer Choices:Select the Correct AnswerOverinsurance.Indemnification.Reinsurance.Sharing a risk.
Overinsurance
Which of the following fidelity bonds guarantees both the honesty and faithful performance of the principal? Answer Choices:Select the Correct AnswerCoverage form O.Standard form #25.Standard form #23.Standard form #24.
Coverage form O
With a "claims-made" CGL form, the policy is: Answer Choices:Select the Correct AnswerExcess over any other policy that is not claims-made.Primary over any other policy that is not claims-made.Excess over any other policy that is not occurrence.Primary over any other policy that is not occurrence.
Excess over any other policy that is not claims-made..
Which of the following statements is CORRECT regarding fidelity bonds? Answer Choices:Select the Correct AnswerThey are two-party contracts between the employer and an insurance company.They are three-party contracts between the principal (obligor), the obligee, and the surety.They are two-party contracts between the employer and the employee.They are three-party contracts between the employer, the employee, and the customer.
They are two-party contracts between the employer and an insurance company
The common conditions of a Commercial Package policy: Answer Choices:Select the Correct AnswerStates the premium amount for all coverage parts.States that to properly rate the policy, the insurer has the right to examine the books and records of the insured company.Who is insured.A list of endorsements attached to the coverage parts of the package policy.
States that to properly rate the policy, the insurer has the right to examine the books and records of the insured company..
Under the "Money Orders and Counterfeit Money" insuring agreement of a standard Commercial Crime form, all would be covered, EXCEPT: Answer Choices:Select the Correct AnswerTaking a forged check from a customer in exchange for merchandise.Receiving counterfeit currency in a sale.Making change on a counterfeit bill.Cashing a forged money order.
Taking a forged check from a customer in exchange for merchandise
Mark is injured at work in a state that provides a TTD benefit at 66 2/3%, the state minimum is $40 and the state maximum is $540. The waiting period is 3 days and the retroactive period is 15 day. Mark earns $15 per hour and usually works 20 hours per week. He was injured on December 4th and returned to work on December 12th. Which of the following is the amount of TTD benefit he would have received? Answer Choices:Select the Correct Answer$172.00$200.00$114.29$166.29
$15 X 20 = $300 (average weekly wage). 66 2/3% X $300 = $200 (lower than the maximum). December 5th to December 11th = 7 days = 1 week. The 3-day waiting period applies, and only 4 days (4/7th of a week) is compensable. 4/7 X $200 = $114.29.
In West Virginia, when an insurer commits an act that intentionally violates an Unfair Trade or Marketing Practice, and the act is considered to be a general business practice, the penalty is a sum not to exceed ________ and revocation or suspension of the license to do business in West Virginia. Answer Choices:Select the Correct Answer$10,000$50,000$100,000$250,000
$250,000
An insurer was cited and found guilty of unfair discrimination. The carrier paid its fine for the offense and was also issued a cease and desist order. If the insurer continued with the practice of unfair discrimination, the additional penalty would be: Answer Choices:Select the Correct AnswerA penalty of up to $10,000 for each violation and/or revoke or suspend the person's license.A penalty of up to $10,000 for each violation.A penalty of up to $50,000 for each violation.A penalty of up to $50,000 for each violation and/or revoke or suspend the person's license.
A penalty of up to $10,000 for each violation and/or revoke or suspend the person's license
Under the Personal Articles Floater, a loss is covered when it occurs: Answer Choices:Select the Correct AnswerAnywhere in the world, except for fine arts.In the United States only.In the United States and Canada only.In the United States, Canada, and Mexico only.
Anywhere in the world, except for fine arts
The perils most frequently covered by a Difference in Conditions policy are: Answer Choices:Select the Correct AnswerFlood and volcanic eruption.Earthquake and volcanic eruption.Earthquake and flood.Collapse and flood.
Earthquake and flood
Joe enters into a contract with Martha to set fire to her house so she can collect on her insurance policy. Martha will pay Joe a portion of the insurance proceeds for his trouble. Which of the following parts of a valid contract is missing in this situation? Answer Choices:Select the Correct AnswerCompetent parties.Consideration.Offer and acceptance.Legal purpose.
Legal purpose
Willie's Widgets is eligible to receive an experience rating to bring down their workers' compensation premium rates. Willie's is granted this eligibility on May 1st, 2018. Which of the following best defines the "experience period" the NCCI will use to calculate Willie's experience rating? Answer Choices:Select the Correct AnswerJanuary 1st, 2014 to January 1st 2018.May 1st, 2014 to May 1st, 2018.May 1st, 2013 to May 1st, 2017.May 1st, 2013 to May 1st, 2016.
May 1st, 2013 to May 1st, 2017
When can an insured assign his or her insurance policy over to another party? Answer Choices:Select the Correct Answer30 days after notifying the insurer.Any time during the first 30 days of the policy period.Only with written consent of the insurer.When the first named insured made a material misrepresentation on the application, and the policy will be voided if it is not assigned.
Only with written consent of the insurer
Which of the following coverage parts would be eligible for inclusion in a Commercial Package policy? Answer Choices:Select the Correct AnswerBusinessowners coverage.Professional liability coverage.Workers' compensation coverage.Directors & Officers (D&O) liability coverage.
Professional liability coverage
All of the following statements are TRUE of the terms used in the standard workers' compensation policy, EXCEPT: Answer Choices:Select the Correct Answer"The Policy" means the Information page and all endorsements and schedules listed there."Locations" means all the workplaces listed on the Information page."State" means any state of the United States, the District of Columbia, and all territories and possessions."The Insured" is the employer named in item 1 of the Information page.
State" means any state of the United States, the District of Columbia, and all territories and possessions
Symbol 23 is designated on the insured's Garage Coverage form. This indicates that: That owned autos other than private passenger autos are covered. That owned private passenger autos only are covered. That only specifically described autos are covered. That nonowned autos used in the garage business are covered.
That owned private passenger autos only are covered
The Federal Regulation that is also known as "The Financial Modernization Act of 1999" is: Answer Choices:Select the Correct AnswerThe Federal Fraud and False Statements Regulation.The Unfair Claim Settlement Practices Act.The Fair Credit Reporting Act.The Gramm-Leach-Bliley Act.
The Gramm-Leach-Bliley Act
If the Navigational Limits or Lay-Up period shown on the Declarations page of a standardized Yacht policy is breached because of something out of the control of the insured:
The insurer must be notified within 10 days after the breach and any additional premium that is due must be paid
All of the following are situations where a Commercial Umbrella policy would be triggered to provide coverage, EXCEPT: Answer Choices:Select the Correct AnswerThe policy limits of the underlying liability policy have been exhausted.To pay a loss that is excluded by the underlying liability policy, but not excluded by the Commercial Umbrella policy.Payment on previous losses by the underlying liability policy has reduced its aggregate limit so that a subsequent loss is not fully covered.The underlying liability policy limits are sufficient to pay the entire claim.
The underlying liability policy limits are sufficient to pay the entire claim..
The NAIC Model Legislation governing the settling of insurance claims was created: Answer Choices:Select the Correct AnswerTo provide insureds with a step-by-step process to submit claims to their insurer.To set forth standards for foreign an alien insurers to follow when conducting business outside of their state/country of domicile.To set forth standards for the investigation and disposition of claims arising under policies or certificates of insurance.To provide mandatory federal legislation that all insurers conducting business in the United States must follow, regardless of the state in which they are domiciled.
To set forth standards for the investigation and disposition of claims arising under policies or certificates of insurance..
Which of the following is NOT covered by the Employer's Liability section of a workers compensation policy? Answer Choices:Select the Correct AnswerWrongful termination claims.Damages for which the employer is legally liable to pay, that are won by the injured worker in a third-party over action.Loss of care and services.Damages due to the employer's failure to provide workers compensation coverage.
Wrongful termination claims
Which of the following statements is TRUE regarding the DP-3 special form? Answer Choices :Select the Correct Answer It provides named peril coverage on both the structure and the personal property.It provides open peril coverage on the structure and named peril coverage on the personal property.It provides named peril coverage on the structure and open peril coverage on the personal property.It provides open peril coverage on both the structure and contents.
provides open peril coverage on the structure and named peril coverage on the personal property
QUESTION: Roxanne has her home covered under a DP-2 policy. She regularly works on her laptop computer at the bar in her kitchen. One day she decided to go out for lunch, leaving her laptop plugged in and turned on. While she was out, the electrical cord attached to her laptop began to short out and create sparks. One of the sparks fell on a dish towel Roxanne had left on the bar and it caught fire. This led to a larger fire that caused extensive damage to Roxanne's kitchen. The damage caused to the kitchen came to $15,000. The laptop was destroyed and it's ACV was $1,800. The policy did not have a deductible form attached. How much will be paid on this claim?
$15,000
Physical damage to a contractor's bulldozer is best covered under which of the following? Answer Choices:Select the Correct AnswerA Commercial Inland Marine Contractors Equipment floater.A Commercial Building and Personal Property form.A Commercial Auto policy.A Commercial General Liability policy.
A Commercial Inland Marine Contractors Equipment floater
In order to lawfully write insurance business in a state, an insurance company must hold: Answer Choices:Select the Correct AnswerA certificate of agency.A certificate of authorization.A certificate of admission.A certificate of authority.
A certificate of authority
With a Commercial Package Policy (CPP), "interline endorsements" are endorsements that: Answer Choices:Select the Correct AnswerApply to more than one coverage part of the package policy.Are attached to the common declarations page.Apply only to the common policy conditions within the package policy.Apply only to the Commercial Property coverage part within the package policy.
Apply to more than one coverage part of the package policy
Which of the following is NOT correct regarding an Employee Dishonesty fidelity bond? Answer Choices:Select the Correct AnswerMay be written on a "Discovery" or a "Loss Sustained" form.Can be written on a "blanket basis" to cover all employees for the same limit.May be written on a "scheduled basis" to cover employees by name for varying amounts.Can include E&O coverage for mistakes made by employees.
Can include E&O coverage for mistakes made by employees
Which of the following types of "theft" involve the use of threats? Answer Choices:Select the Correct AnswerExtortion.Robbery.Burglary.Identity fraud.
Extortion
Which of the following statements is correct regarding pollution coverage under the special cause of loss form of a Commercial Property policy? Answer Choices:Select the Correct AnswerPollution is always excluded.A gradual release of pollution is covered if the insured was unaware of the release.Coverage will apply on an "excess basis" if the insured carries other pollution coverage.It is excluded unless it was caused by a covered peril.
It is excluded unless it was caused by a covered peril..
In West Virginia, uninsured motorist coverage may exclude the first ______ property damage resulting from the negligence of an uninsured motorist. Answer Choices:Select the Correct Answer$100$200$300$500
$300
QUESTION: The additional coverage of the Commercial Property cause of loss forms known as the "Limited Coverage for Fungus, Wet Rot, Dry Rot, and Bacteria" provides: Answer Choices:Select the Correct Answer$10,000 for all occurrences within the policy period.$15,000 coverage for all occurrences within a 12-month period.$5,000 coverage for all occurrences within the policy period.$10,000 coverage for all occurrences within a 12-month period.
$15,000 coverage for all occurrences within a 12-month period
Which of the following is TRUE regarding deductibles that pertain to Part D of the standardized Personal Automobile policy? Answer Choices:Select the Correct AnswerThe deductible amount scheduled on the policy for Part D - Collision is $250 and for Part D - Other Than Collision is $500. Any adjustment to these amounts must be made by endorsement.A deductible of $250 is standard for Part D and applies to both the "Collision" or "Other Than Collision" coverage.A single deductible amount, chosen by the insured, applies to both the "Collision" coverage and the "Other Than Collision" coverage.There are separate deductible amounts, chosen by the insured, for the "Collision" coverage and the "Other Than Collision" coverage.
There are separate deductible amounts, chosen by the insured, for the "Collision" coverage and the "Other Than Collision" coverage..
In an insurance contract, "consideration" from both parties is comprised of: Answer Choices:Select the Correct AnswerPremiums from the insured and the promise to pay from the insurer.Risk from the insured and surety from the insurer.Surety from the insured and risk from the insurer.Peace of mind from the insured and premiums for the insurer.
Premiums from the insured and the promise to pay from the insurer.
Which of the following lost or damaged property is NOT covered when the Actual Cash Value endorsement is attached to an Equipment Breakdown policy? Answer Choices:Select the Correct AnswerProperty of others.Property of the insured.Property that has reached obsolescence.Explosion occurring from within a covered steam boiler.
Property that has reached obsolescence..
Mikala holds an insurance license in West Virginia and has received an inquiry from the Insurance Commissioner in the mail. Which of the following statements is CORRECT regarding Mikala's response to the Commissioner? *Mikala will respond in writing, making sure her response reaches the Commissioner within 10 working days from the date appearing on the inquiry itself. *Mikala is quite busy and responds within 15 working days by telephone. Mikala will respond in writing, making sure her response reaches the Commissioner within 15 calendar days from the date appearing on the inquiry itself. *Mikala will respond in writing, making sure her response reaches the Commissioner within 15 working days from the date appearing on the inquiry itself.
Mikala will respond in writing, making sure her response reaches the Commissioner within 15 working days from the date appearing on the inquiry itself
Which of the following statements is TRUE regarding the sections of a Homeowners policy? Answer Choices:Select the Correct AnswerSection II coverages vary greatly between the different HO forms.Section I coverages are identical on all the different HO forms.Section I coverages vary greatly between the different HO forms.The additional coverages provided by all the HO forms is identical in Sections I & II.
Section I coverages vary greatly between the different HO forms
The named insured is aware that his Business Auto policy provides transportation expense in the event of total theft of an insured private passenger vehicle. While the sales manager is attending a seminar in a neighboring state, his company car is stolen on March 10. Since his hotel is located 10 miles from the seminar site, he rents a car that same day. The insurance company pays the insured for the theft loss on March 20 after the police department had recovered the vehicle on March 17. The car had been burned and was a total loss. The insured turned in rental costs of $20/day for 11 days and mileage expense of 800 miles at 30 cents per mile. How much will the insurance company pay for these expenses?
$160. is correct. EXPLANATION: First, the insured will not be paid for a rental car until after 48 hours has elapsed. Second, the transportation coverage will cease once the vehicle has been returned to use or the insurer pays for its loss. From March 10th, when the car was stolen to March 20th when the insurance company paid for the loss is 10 days. If we subtract the 48-hour waiting period, the insured will be entitled to 8 days' of rental car expenses at $20 per day or $160 total. There is no coverage for the mileage expenses.
Fred lives in West Virginia and has received a cancellation notice from his automobile insurer. The reason stated for the auto policy cancellation is that Fred's wife was arrested for DUI. Which of the following statements describes how the West Virginia insurance code would permit Fred to handle this situation? Answer Choices:Select the Correct AnswerFred must obtain coverage in the Assigned Risk Plan now that he and his wife are considered to be high risk insureds.Fred may attach a restrictive endorsement to his automobile policy to specifically exclude his wife from liability coverage under the policy, thus preventing cancellation.Fred's policy will be cancelled until his wife completes an alcohol and drug rehabilitation program. Then, the West Virginia code requires that his insurance company reinstate his automobile policy.Fred must self-insure for automobile liability coverage unless he divorces his wife.
Fred may attach a restrictive endorsement to his automobile policy to specifically exclude his wife from liability coverage under the policy, thus preventing cancellation
In 2015, West Virginia passed a new modified comparative fault standard which can bar a plaintiff in a lawsuit from recovery, if he or she is found to be more than ______ at fault in the bodily injury or property damage. Answer Choices:Select the Correct Answer40%30%60%50%
50%
Georgina is a licensed insurance solicitor in West Virginia who was appointed by Debbie, a licensed property and casualty insurance agent. Georgina has been soliciting insurance contracts and receiving applications on behalf of Debbie for more than 5 years. It is discovered that Debbie has violated the insurance code and the Commissioner revokes Debbie's agent license. Which of the following statements is true regarding Georgina's solicitor's license? Answer Choices:Select the Correct AnswerDebbie can transfer Georgina's license to another licensed agent in Debbie's agency.Georgina must find another licensed agent to appoint her within 30 days so her solicitor's license will continue to be valid.Georgina's solicitor's license will also be revoked.Georgina may continue to solicit business on Debbie's behalf until Debbie's license is restored.
Georgina's solicitor's license will also be revoked
Marcus has two Commercial Property policies covering his warehouse. Policy A is the primary policy and has a $200,000 limit, and Policy B is an excess policy with a $100,000 limit. After a fire causes $140,000 damage to his warehouse, how will each of Marcus' policies respond (disregarding any deductible)? Answer Choices:Select the Correct AnswerPolicy A will pay $70,000 and Policy B will pay $70,000.Policy A will pay $40,000 and Policy B will pay $100,000.Policy A will pay $93,333 and Policy B will pay $46,667.Policy A will pay $140,000 and Policy B will pay $0.
With PROPERTY losses the OTHER INSURANCE clause is triggered. When there are two or more property policies covering the same risk, each policy pays its share of the loss, equal to its share of the total insurance in force. Policy A has 67% of the insurance in force ($200,000 is 67% of the total insurance in force, which is $300,000) and therefore, it will pay 67% of the $140,000 loss, which equals $93,333 and Policy B will pay the difference.
Brian owns a home that is covered under a Dwelling policy. He rents this home to Taylor. Joe, the neighbor who lives next door to Brian's rental home, has been cooking methamphetamine for quite some time and selling it out of his house. One afternoon, Joe's "meth lab" exploded, spreading dangerous chemical to the houses around his. It also caused a fire that rendered the house unstable until it can be demolished. The civil authorities in the area have required that Taylor vacate her rental home, until the area next door can be cleaned up. Which of the following statements is true regarding how Brian will be compensated under his Dwelling policy for the loss of Taylor's rent during the time she must live elsewhere?
Brian will receive 20% of the Coverage A limit, for a maximum of 2 weeks
