Property and casualty
A neighbors tree has fallen into the insured's yard. The insured homeowners policy will only pay to remove the tree If.
The tree is blocking the driveway
Assigned Risk Plans allow insureds
To procure insurance if they are unable to purchase automobile insurance through ordinary means
A commercial auto coverage form that is designed for insureds engaged in the business of transporting goods for others is a
Truckers coverage form
Shipbuilders and repairers are covered by the
U.S. Longshore and Harbor Workers Compensation Act.
A small restaurant was forced to close for 10 days in august when the power company's transformer was destroyed by lightning, and the restaurant was without electricity. Which of the following endorsements could be added to the businessowners policy that would provide protection against loss of income from such events?
Utility services - time element endorsement
A business host an annual holiday party for employees and customers, after which a customer who had too much to drink was involved in an automobile accident. Occupants of the other car involved in the accident sued the business for serving the customer too much alcohol. Will the business owners policy provide coverage?
Yes, none of the exclusions will apply.
According to the Law of Agency, a principal is represented by a/an
agent
According to the conditions of a workers compensation policy, the insurer has the right to inspect the insured workplace
at any time
A provision found in most claims-made liability policy forms that provide a specified period of time following the policy expiration, during which claims arising out of occurrences during the policy period may be made against the policy at no extra cost, is called
basic extended reporting period
The transfer of money from inside banking premises to a person other than messenger outside those premises or to a place outside those premises is covered under which commercial crime coverage
computer fraud
The broad theft coverage endorsement on the dwelling form specifies all of the following limitations EXCEPT
$1,000 on silverware.
A large Antenna is damaged on a tree branch hits an insured farm dwelling during a storm. Coverage A of a farm property coverage form would insure damages for the occurrence up to
$1000
An insured decides to store some heavy box in the attic. While moving Tom around, he actually drops have a box that crashes through the ceiling, causing $1000 of damage. The insureds Ho-3 policy form will pay
$1000 minus the deductible
Provided the reasoning isn't for nonpayment of premium, how many days of notice must an insured be provided if their automobile insurance policy is being canceled?
10 days
What is The maximum number of roomers or boarders for properties insured under the dwelling policy?
5
Which is the following is eligible for a businessowners policy?
A 6 story office building with less than 100,000 square feet total area
Which of the following would not be classified as personal property for insurance purposes
A house
All of the following would be eligible for coverage under the dwelling policy except
A house that has 5 residential units
In which of the following situations would the jewelers block extension cover a loss?
A jeweler fixes a necklace and sends it by registered mail to the owner. When the necklace arrives, it has been damaged.
When other insurance is written on the same basis as a Commercial Property policy, what is the insurer obligated to cover?
A share of the loss
Which of the following would not be accepted as a document showing that an applicant for a license is in the United States legally?
A social security card
The inspections and surveys condition in a businessowners policy
Allows the insurer the right to inspect the insureds premises
Which coverage form would provide coverage for all incoming and outgoing shipments?
Annual transit
A policy that ensures all property at multiple locations for a single amount is referred to as
Blanket
With regards to a homeowners policy, which coverage provides for indirect or consequential losses?
Coverage D
The section of an insurance policy that details what perils are not insured against and what persons are not insured is known as the
Exclusions
Which endorsement adds coverage for employee use of automobiles in the insureds business and insureds use of rented autos if no coverage is provided on a business auto policy?
Higher and non-owned auto liability
A BOP is most similar to
Homeowners
In a dwelling policy, which of the following is true regarding personal liability coverage?
It must be added as a supplement or written as a separate policy
Which of the following policy provisions would automatically broaden coverage under a policy without requiring additonal premium?
Liberalization
All of the following are exclusions under farm property coverage except
Loss of use
An insured purchases a difference in conditions policy. It may contain all the following characteristics except
Low deductible
Rates are established on the similarities of the risks are known as
Manual rates
An insured who has coverage for all his personal property has his TV stolen from the shopof the repairman. The owner of the repair filed a claim under the insureds policy, but it paid nothing to the owner of the store. Which provision does the policy have?
No benefit to the bailee clause
Damage to insured property caused by earth movement or earthquake is covered under which of the following homeowners forms?
None
Greg's automobile insurance policy was in effect for 43 days before he had his drivers license suspended. What can his insurer do to his policy?
Nothing
Duties of the insurer found in property policy conditions include all of the following EXCEPT
Notify the insured in the event of financial difficulty.
Which of the following personal auto coverages would pay for damage to a covered auto due to contact with a deer?
Other-than-collision (comprehensive coverage)
All of the followimg property is insured under coverage A of a farm policy except
Personal lawnmower of a tenant used to service the described location
All of the following are parts of a personal auto policy except?
Physical Damage Coverage
All of the following factors in rating Worker's Compensation insurance except
Sales
A person requests that an insurance company quit sending him e-mail solicitations. According to the law, the company has 10 days to stop e-mailing the complainant. However, the company sends him four more e-mails after that time limit has expired. Which of the following is true?
The company will be fined at least $250 for each e-mail.
The medical payments coverage in a personal auto policy will pay reasonable medical expenses for all of the following except
The insured is injured while exiting a friend's mobile home.
Under which of the following circumstances would an insurer be allowed to cancel a dwelling policy midterm?
The insured knowingly lied about the year the property was constructed
In which of the following situations would off-premises coverage in a broad theft endorsement of the insureds dwelling policy apply?
The insureds camera is stolen from his suitcase while he is on vacation.
An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later. What Will probably happen?
The policy will not be affected.
An insurance company sells an insurance policy over the phone in response to TV ad. Which of the following best describes this act?
direct response marketing
In a farm policy any cost incurred by the insurer for the investigation or defense of a claim will be paid by
insurer
Which of the following limits, shown in the declarations of a policy, applies to medical expenses?
per person
If a person is using an auto with the belief that he is entitled to do so, subrogation rights under a personal auto policy would apply to all coverages EXCEPT
physical damage
When a direct chain of events resulting from a negligent act causes injury or damage, that act is considered to be
proximate cause
What is the minimum amount of coverage that should be carried on an HO-2 on a home that was purchased four years ago for $75,000 which today has a replacement value of $100,000?
$80,000
Coverage j under farm coverage agrees to pay reasonable medical expenses, regardless of fault, caused by an accident if the expenses are incurred and reported to the insurer within how many years of the accident date?
3 years
In an earthquake coverage provided by endorsement in a homeowners form, one or more earthquake shocks would be considered a single earthquake if they occur within what maximum time period?
72 hours
Which would not be covered by the insdie the premises - robbery or safe burglary of other prororty coverage?
An employee is caught stealing cadh from the register.
An installation floater is used to insure
Appliances intended to become a permanent part of the building
If a loss occurs, the insured with a homeowners policy is required to do the following EXCEPT
Arrange for an appraisal by an unbiased third party.
For any automobile liability policy, authorized insurers must issue
At least 2 identification cards.
According to the common policy conditions for a commercial package policy, if the insured dies, the policy rights and duties
Automatically transfer to a legal representative
Which inland marine form would provide the best protection for a dry cleaning company against loss or damage to their customer's property while in the care, custody, and control of the dry cleaners?
Bailee's customer policy
Which of the following statements regarding coverage for the flood and earthquake perils is true?
Both flood and earthquake are excluded perils in all property policies.
A farmer is remodeling his 100-year-old farmhouse. He is in the process of painting the porch and hanging shutters. He keeps his ladder, paint, and other materials used to remodel his home under the porch. Which of the following provides coverage for his remodeling materials?
Coverage A
Addition coverages in the liability section of a homeowners policy cover all of the following except
Damage to at third party property for which the insured is legally liable
Which of the following is a mandatory part of an insurance policy that varies with each individual policy
Declarations
Which of the following is a mandatory part of an insurance policy that varies with each individual policy?
Declarations
The part of a policy that clarifies terms in the policy is the
Definitions
Employment practices liability insurance (EPLI) would not cover claims arising from
Deliberate law violation
Which of the following would be named on the declarations page of a property or liability policy?
First names insured
Which of the following endorsements is used by individual business owners who use company vehicles for personal use rather than purchasing a personal vehicle?
Individual Named Insured
Which of the following entities protects policyowners, insureds, and beneficiares under insurance contracts when insurers fail to perform contractual obligations due to financial impairment?
Insurnace guaranty association
Which of the following is NOT a limitation under the Mexico coverage endorsement in personal auto policies?
It covers lawsuits brought by either U.S. or Mexican citizens
For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become
Larger
A business using its own trucks to move its own cargo would insure the cargo using
Motor truck cargo - owners form
Which of the following will a businessowners property coverage form pay for?
Outdoor signs attached to buildings
Which of the following commercial crime coverages would cover a loss resulting from theft of the company's money and securities from the armored vehicle making a delivery?
Outside the premises
The other insurance provision that limits the liability of the insurer to a portion of the loss no greater than the amount the insurer bears to all the insurance covering the property is called
Pro rata liability
Under the claims-made CGL the supplemental extended reporting period
Provides an unlimited extension for making claims for losses that occured during the policy period, but the insured must pay an additonal premium.
Which type of insurance is based on mutual agreements among subscribers?
Reciprocal insurance
When the insureds car was totaled in a recent accident, the ownership of the car was transferred to the insurer. The insurer then sold off the wrecked car to recover some of the loss it paid to the insured. What is the term for this action?
Salvage
Worker's compensation statues require employers to meet capital reserves requirements sufficient to pay any claims that might arise. Employers can meet such obligations through all of the following except
Second injury funds program
Which of the following perils is covered by the HO-2 and HO-3?
Sudden and accidental rupture of a heating system
All of the following are characteristics of the dwelling policy except
The dwelling must be owner-occupied.
If more than one person has an insurable interest in the property covered under a dwelling policy,
The insurer will be liable for only the insured's interest in the damaged property
If the director decides an insurer charged too much for fees,
The insurer will refund the fee to the customer
A fly around commercial airplane is taxiing on the approach to the runway when a tire blows. The underside of the airplane is damaged. The airplane is insured by an all risks- ground and flight aircraft hull policy. Which of the following statements is true regarding this loss?
The loss is covered because all the risks- ground and flight aircraft hull covers losses while the airplane is on the and while it is in flight.
Which of the following would NOT be covered by medical payments to others in Section II of your HO policy?
You cut your leg while whacking weeds in your backyard with your neighbor's weed whacker.
An insured owns a large dog. The first day he has to leave the dog home alone to go to work, the insured comes back to find his $400 couch torn apart, his $100 coffee table chewed up, his $50 window curtain shredded, and a $200 window pane shattered where his dog jumped through. The insured has personal property coverage under a special form dwelling policy. How much of this loss will the policy cover?
$0
What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine policy?
$10,000 for all expenses incurred during a 12-month period
Equipment breakdown coverage is written with a single limit of insurance per accident. What is the sub limit for hazardous substance cleanup or repair or replacement of contaminated property?
$25,000
All of the following are special personal property limits under a homeowners policy except
$500 for business personal property on the insured premises.
Which of the following is the correct formula to computing a loss ratio?
(Incurred losses + loss adjusting expense)/ earned premium
Worker's compensation rating is developed by applying a rating bureau job classification rate to each
100 of payroll
Under the additional living expenses coverage, if a civil authority prohibits the insured from using the dwelling because of direct damage to a neighboring location from a peril covered in the insured's policy, loss would be covered for up to
2 weeks
Coverage J under form coverage agrees to pay reasonable medical expenses, regardless of fault, caused by an accident if the expense are incurred and reported to the insurer within how many years of accident date?
3 years
Coverage for medical payments under a personal auto policy applies to expenses following a covered accident that are incured and services rendered within
3 years
If an insured is in the process of moving to a new location, his personal property coverage under the dwelling policy will apply on a pro rata basis at both locations for
30 days
In Arizona under the conditions of the dwelling policy within how many days does an insurer have to pay for a loss once proof of loss form has been received and an agreement with the insured as to the amount payable has been reached?
30 days
Under the dwelling policy, if an insured chooses to repair or replace damage or loss property, it must inform the insured within how many days of receiveing proof of loss
30 days
Vandalism and malicious mischief would be covered if the insurance premises have been vacant for no more than how many days?
60 days
What is the grace period for payment of premium on an automobile policy?
7 days
When Mary decided to sue her neighbor for damages to her yard, she was told to get a bond that would guarantee she would be able to pay court costs and resulting damages if she loses the case. What kind of bond is this?
A cost bond
Which of the following would not be considered an insured under a homeowners policy?
A divorced spouse living in another state
The insured's mother-in-law broke her leg falling down the front steps of the insured's premises. The insured's homeowners medical payments coverage will
Apply to injuries of any guests or visitors.
In equipment breakdown coverage, all accidents would be considered a single accident if they occur
At a single location at the same time and from the same cause
An individual was involved in a head on collision while driving home one day. His injuries were not serious. And he recovered. However, he decided that in order to never be involved in another accident, he would not drive or ride in a car ever again. Which method of risk management does this describe?
Avoidance
A small trucking company stops transporting hay area farmers and begins to haul hay on farm exclusively. In regard to the coverage on the trucks, which of the following is true?
Business auto coverage form may apply
How are state Insurance Guaranty Associations funded?
By their members - authorized insurers
An insured's house is damaged by a fire and is uninhabitable. As a result, the insured has to rent an apartment until repairs are made. A dwelling insurance policy will pay for the expense of renting the apartment. Which type of broad or special form coverage does the insured have?
Coverage E - Additional living expense
The commercial property declarations page contains which of the following information
Description of the property insured
An employee drives a company auto, but does not own a vehicle her self. What endorsement could be added to the insurance policy covering the company auto they will provide coverage to the employee when she drives someone else's car for her personal use?
Drive other car coverage
According to the appraisal condition of a homeowners policy, what procedure may be followed if the insurer and insured do not agree as to the size of a loss?
Either party may make a written request for an appraisal.
Another person has alleged that you are responsible for damage to their property. You notify your homeowners insurer. The insurer will
Either pay or defend as it decides
Individuals in the business of selling construction equipment and mobile equipment should insure with a/an
Equipment Dealers Coverage Form:
What type of coverage do umbrella policies provide?
Excess coverage over an underlying or primary policy
In a commercial package policy, who may cancel the policy in writing and make changes to the policy with the consent of the insurer
First Named Insured
Sergio is injured at work and is covered under Worker's Compensation. He has to miss two months of work. How much will Sergio be compensated?
His average monthly wage at the time of injury
Otto fails to pay the premium on a personal lines property policy. Ottos policy can be cancelled if
His policy has been in effect for at least 60 days.
Which of the following homeowners forms is designed to provide named perils coverage for personal property to the individuals who rent an apartment?
Ho-4
The policy conditions define
How parties to the contract must act following a loss.
If a farm building or structure is vacant or unoccupied, which is true?
If for 120 consecutive days, the limits applicable to the building and its contents are reduced by 50%.
All of the following are true of coverage B - other structures except
It must be added by endorsement to a homeowners policy.
Which of the following statements is not true regarding a personal umbrella liability policy
It provides errors and omissions coverage for an agency
Crews of Ships are covered by the
Jones Act
According to the nationwide marine definitions, risks that may be the subject of inland marine insurance include all of the following except
Large pleasure boats
Which of the following perils is covered by flood insurance?
Mudslide caused by accumulations of water under the ground
All of the following statements are false regarding garage physical damage coverage except
No coverage is provided for any auto stored for more than forty-five days at a location not shown in the declarations.
A boat owners policy does NOT cover...
Nuclear hazards
A businessowner has a liability policy for his business. Sometime during the policy period, a loss occurs, but the businessowner does not become aware of the loss until several years after his policy expires. Which of the following types of policies would cover the loss?
Occurrence policy
A property insurance policy that ensures a commercial building on a replacement cost basis includes the ordinance or law coverage endorsement. This endorsement will cover all of the following expenses except.
Ordinance with which the insured was required to comply prior to the loss.
Under a dwelling policy, which of the following clauses applies if an insured has lost one of the two matching silver candlesticks?
Pair of set
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?
Pay to defend the policy owner in the lawsuit because liability coverage contains a duty to defend provision
An insured has a liability policy that sets the amount for all claims that arise from a single incident $50,000. Which type of limit of liability does the insureds policy have?
Per occurrence
The limited fungi, wet or dry rot. Or bacteria coverage endorsements applies to which type of losses?
Property and liability
What method do insurers use to protect themselves against catastrophic losses
Reinsurance
What type of information would be found in a policy's insuring agreement?
Renewal dates
All of the following are additional cause of loss included in the broad form of a commercial property policy except
Replacement cost
An apartment occupant's personal property would be insured under which homeowners form?
Tenant broad form (HO-4)
All of the following people would be considered insureds under the liability section of a homeowners policy except
The 22 year old niece of the insured who is visiting
An agents license expired on December 1, 2015 his renewal application was received until July 31, 2016 which of the following is true regarding the license renewal?
The director may accept the application, provided that the agent pays the appropriate renewal fees plus a $100 late fee
A specific coverage part is listed on the commercial package policy declarations page, but there is no premium shown. What does that mean?
There is no coverage
Which of the following entities is not an insurer but an organization formed to provide insurance benefits for members of an affiliated lodge or religious organization?
fraternal benefit society
An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?
illegal
An additional loss that results from a direct loss of property is called a/an
indirect loss
Which of the following endorsements is used to insure coverage c (personal property) for values beyond the limitations of the homeowners policy?
scheduled personal property endorsement
Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages?
special
An insured owns several buildings, each at a different Location and insured on a separate policy. What type of coverage does the insured have?
specific
