Property

What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine policy? a)$15,000 all expenses incurred during a 12-month period b)$20,000 all expenses incurred during a 12-month period c)$5,000 for all expenses incurred during a 12-month period d)$10,000 for all expenses incurred during a 12-month period

$10,000 for all expenses incurred during a 12-month period

What is the limit for the forgery or alteration coverage in the businessowners policy? a)$500 b)$1,000 c)$2,500 d)$5,000

$2,500

Equipment breakdown coverage is written with a single limit of insurance per accident. What is the sublimit for hazardous substance cleanup or repair or replacement of contaminated property?a)$15,000 b)$20,000 c)$25,000 d)$50,000

$25,000

A dwelling policy has a standard deductible that applies to all property coverage, except fair rental value, additional living expense, and the fire department service charge. How much is this deductible?a)$100 b)$250 c)$500 d)$1,000

$250

After a producer's license expires, he may reinstate it without having to take the licensing exam if he files for reinstatement within a)90 days b)6 months c)12 months d)2 years

12 months

The Earthquake and Volcanic Eruption Endorsement added to Commercial Property policies consider all earthquake shocks as one earthquake if they occur within what maximum time period? a)24 hours b)72 hours c)168 hours d)240 hours

168 hours

The minimum continuing education requirement for life insurance agents is a)30 hours every two years. b)24 hours per year. c)15 hours per year. d)24 hours every two years.

24 hours every two years.

When an insurer intends to not renew an automobile insurance policy beyond its current expiration date, the insurer must give how many days' advance notice of their intentions? a)10 days b)20 days c)30 days d)40 days

30 days

In which of the following types of property valuation will the policy pay the full value as specified on the policy schedule, regardless of the insured property's appreciation or depreciation? a)Market value b)Agreed value c)Replacement cost d)Stated amount

Agreed value

In which of the following types of property valuation will the policy pay the full value as specified on the policy schedule, regardless of the insured property's appreciation or depreciation? a)Replacement cost b)Stated amount c)Market value d)Agreed value

Agreed value

When a mortgagee is named in a mortgagee clause attached to a fire or other direct damage policy a)The loss reimbursement will be paid to the mortgagee as their interest may appear. b)The mortgagee's rights of recovery will not be defeated by any act or neglect of the insured. c)The mortgagee may bring a suit in their own name to recover damages to covered property. d)All of the above are true.

All of the above are true.

Which coverage form would provide coverage for all incoming and outgoing shipments? a)Motor truck cargo b)Mail coverage c)Annual transit d)Trip transit

Annual transit

Business personal property coverage form covers all of the following EXCEPT a)Furniture and fixtures. b)Machinery that is not permanently installed. c)Stock d)Automobiles held for sale.

Automobiles held for sale.

In return for premium, an insurance company must a)Give the insurer valuable consideration. b)Be fair in underwriting and pay covered losses. c)Provide the insured with coverage adequate for all potential losses. d)Use standardized tables of coverage for specific risks to be excluded from coverage.

Be fair in underwriting and pay covered losses.

Which of the following is NOT a primary property coverage in homeowners coverage? a)Loss of use b)Collapse c)Dwelling d)Other structures

Collapse

All of the following are classes of inland marine risks EXCEPT a)Common carrier cargo liability. b)Commercial property floater risks. c)Domestic shipments and transportation risks. d)Bridges, tunnels, and other instrumentalities of transportation and communication.

Common carrier cargo liability.

A builder's risk form is most often written as which of the following?a)Completed value form b)Scheduled form c)Reporting form d)Specific value form

Completed value form

With regards to a homeowners policy, which coverage provides for indirect or consequential losses? a)Coverage C b)Coverage D c)Coverage A d)Coverage B

Coverage D

Which of the following is NOT true about earthquake coverage?a)Coverage is commonly provided through a federally-funded program. b)Coverage is excluded by most property forms. c)Coverage may be added to property policies by endorsements. d)Coverage may be written in a Difference of Conditions policy.

Coverage is commonly provided through a federally-funded program.

Which of the following is covered under the Mail floater of a Commercial Inland Marine policy ONLY if is sent by registered mail?a)Money orders, checks, drafts, notes b)Bonds, stocks, stock certificates, coupons attached to bonds c)Currency and unsold travelers checks d)Postage and revenue stamps

Currency and unsold travelers checks

The requirement that an agent not co-mingle insurance monies with their own funds is known as a)Accepted accounting principal. b)Fiduciary responsibility. c)Premium accountability. d)Express authority.

Fiduciary responsibility.

Replacement cost is defined as a)Payment of the full policy limits in the event of a total loss. b)Full replacement of property at its current cost, new and without reduction for depreciation. c)The market value of property of like kind and quality. d)Full replacement of property with like kind and quality, less an allowance for physical deterioration and depreciation.

Full replacement of property at its current cost, new and without reduction for depreciation.

An insured is the proud owner of a two story Colonial style home. She has previously experienced the loss of 2 prior homes due to unforeseen perils. She wishes to have a homeowners policy that will allow her current property to be rebuilt without regards to depreciation. Which type of endorsement should she add to her homeowners policy? a)Scheduled dwelling coverage b)Guaranteed replacement cost of dwelling c)Personal property guaranteed replacement cost )Special coverage on dwelling

Guaranteed replacement cost of dwelling

The main difference between an HO-4 and an HO-6 is a)HO-4 does not cover additional living expenses. b)HO-6 does not cover additional living expenses. c)HO-4 provides limited dwelling coverage as well as contents coverage. d)HO-6 provides limited dwelling coverage as well as contents coverage.

HO-6 provides limited dwelling coverage as well as contents coverage.

All of the following are major coverages included in the homeowners policy EXCEPT a)Personal property. b)Dwelling. c)Loss of use. d)Loss of income.

Loss of income.

The Physicians and Surgeons Equipment Floater in NOT intended for which of the following? a)Medical supplies located in a hospital b)Surgeon's supplies located in the surgeon's office c)Waiting room furniture in a doctor's office d)Office equipment located in a dentist's office

Medical supplies located in a hospital

What type of coverage is Coverage E in homeowners policies? a)Loss of use b)Personal property c)Personal liability d)Additional coverage

Personal liability

The Gramm-Leach-Bliley Act was passed to a)Protect private customer information filed with a financial institution. b)Define insurance as interstate commerce. c)Allow consumers access to credit and private consumer reports. d)Allow insurance companies access to medical information for underwriting purposes.

Protect private customer information filed with a financial institution.

What fundamental principle in property insurance holds that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resultant damage is all a part of the occurrence? a)Concurrent causation b)Indemnity c)Common cause d)Proximate cause

Proximate cause

After a loss, an insured covered by a business property coverage is NOT required to a)Send the insurer a sworn proof of loss within 60 days. b)Take all reasonable steps to protect property from further damage. c)Reconstruct for the insurer a timeline of activities leading up to the loss for use in an investigation. d)Resume business operations as soon as possible.

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

The Federal Fair Credit Reporting Act a)Regulates consumer reports. b)Protects customer privacy. c)Regulates telemarketing. d)Prevents money laundering.

Regulates consumer reports.

Which of the following is a requirement for surplus lines insurance issued in this state? a)The policy must clearly state that it is obtained through a non-admitted insurer. b)The policy must be obtained through an authorized insurer. c)The policy must cover 2 or more perils. d)The policy can only be written through a casualty or surety company.

The policy must clearly state that it is obtained through a non-admitted insurer.

Which of the following losses would most likely NOT be covered under Coverage A in the dwelling policy? a)Outdoor personal property of the insured b)Supplies used for repair of the dwelling c)Theft of a renter's lawnmower used to service the premises d)Fire damage to building material on the premises

Theft of a renter's lawnmower used to service the premises

The business income coverage form covers consequential loss of business income that occurs when a business must suspend operations because of a direct loss. Which of the following terms best describes the nature of this type of coverage? a)Claims made b)Occurrence c)Direct damage d)Time element

Time element

Which of the following is NOT one of the available additional coverages in the builders risk form? a)Vandalism b)Debris removal c)Fire department service charge d)Pollutant cleanup

Vandalism