Property and Casualty Q's
An employer may comply with Workers Compensation laws using all of the following methods except?
Adding Personal Injury Protection (PIP)
Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses?
Additional coverage
Coverage A in the dwelling policy covers?
All attached structures and outdoor personal property or equipment used to maintain or service the premises
Internal explosion is included under which forms?
All forms
According to the Law of Agency, a principal is represented by whom?
An agent
Which of the following risks would not be eligible for coverage under a homeowners policy?
An applicant who owns and lives on a commercial farm
Which of the following is NOT covered under accounts receivable coverage form?
Any loans required to offset uncollectible amounts
Insurable interest in the property covered in a policy must be proven
At time of loss
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
Under the HO-4 and HO-6 policy forms, property is insured against?
Broad form perils
Not found in a commercial package policy
Certificate of authority
All of the following are classes of inland marine risks except?
Common carrier cargo liability
An agent just received his Maryland life/health insurance license. His specialty is selling long-term care policies. In order to satisfy his continuing education requirement, he must do which of the following?
Complete 24 hours of continuing education, including 2 hours of long-term care education, and 3 hours of ethics, every two years
Which of the following statements is true concerning the special form dwelling policy?
Coverage A is for all-risk perils, and Coverage C is for the broad form perils
HO-4 and HO-6 proved the same level of coverage as?
Coverage C in the HO-2 and HO-3
Which of the following in not true regarding state required limits of liability on collisions coverage?
Coverage is provided only if the insured is not at fault
Which of the following dwelling forms primarily insures a structure on an actual case value basis?
DP-1
Which of the following examples of losses paid under an HO-3 also would be paid under an HO-2 homeowners policy?
Damage to the dwelling caused by ash or dust from a volcanic eruption
States who is insured, what is insured, where the property is located, when the policy begins and ends, how much insurance and how much premium.
Declarations
The part of a property policy that shows the amount of insurance, premium, and policy term is the?
Declarations
Bailee's customer policy
Does not cover property of the insured, but does cover their customer's property while in the care of the insured
The four classes of inland marine risks
Domestic shipments and transportation risks; bridges, tunnels, and other instrumentalities of transportation and communication; commercial property floater risks; and personal property floater risks.
All of the following are optional coverages that may be attached to an HO-3 policy except?
Dwelling replacement cost
Which of the following would modify the original insurance contract by either adding or removing coverage?
Endorsements
What method of premium computation relates an employer's losses, payroll, and premiums to the rating bureau's classifications of operations?
Experience modification factor
The authority granted to an agent through the agents contract is referred to as?
Express authority
All of the following are exclusions that apply in all three types of Dwelling Policies except?
Fire or lightning
Which of the following losses would be covered by an unendorsed homeowners policy?
Fire or lightning
An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming?
Foreign
The homeowners policy covers collapse cause by all of the following except?
Foundation cracks
What type of compensatory damages will pay for pain and suffering and disfigurement?
General
Coverages that are attached to an HO-3 policy
Home day care coverage, earthquake coverage, personal property replacement cost
Insurance companies in Maryland must submit forms to the Insurance Commissioner in duplicate. What is the one exception to this rule?
If the forms are filed electronically
The major portion of the premium for a boiler and machinery policy pays for?
Inspections and examinations
The additional living expense coverage on homeowners policies
Is intended to allow the family to maintain its normal standard of living
In Maryland the continuing education requirement has each of the following characteristics except?
It allows for up to 5 excess credit hours to be carried forward to the next reporting period
If an insurance premium is paid by the policy owner to the agent, but the agent fails to remit that premium to the insurer, which of the following statements is true?
It is considered that the payment was submitted to the insurer
When is liability coverage included in a homeowners policy?
It is included automatically
Crews of ships are covered by the?
Jones Act.
Dwelling coverage does not cover this and nothing that happens on it would be considered a covered loss
Land
Dwelling coverage includes all of the following except?
Land which the dwelling is located
Under the dwelling policy, Coverage C - Personal Property is?
Limited to covering a servant's property while at the insured location
J is applying for his producer license. He took his written exam on March 1st, but failed it. When is the earliest J will be able to take the exam again?
March 5th (4 days)
Which of the following statements is true regarding physical damage coverage in a garage form?
No coverage is provided for autos stored for more than 45 days at a location not shown in the declarations
Why don't commercial auto coverage forms automatically inslude medical payment coverage?
Often, any person occupying a commercial vehicle would be covered under a workers compensation policy
All of the following statements regarding parts used in the repair of an insured vehicle are true expect?
Parts used in the repair of an insured vehicle by other than the original manufacturer must use replacement parts from the manufacturer only
It is unfair claim settlement practice and a violation of the Insurance Code for an insurer or nonprofit health services plan to do the following except?
Pay a lower, adjusted, claim due to the accidental misrepresentation of the proposed insured's date of birth by the agent
All of the following are additional liability coverages automatically proved in a homeowners policy except?
Personal injury
Which of the following is not one of the four primary elements considered in establishing negligence?
Proof of carlessness
This occurs when the state in which the person resides accords the same privilege to residents of Maryland
Reciprocity
What type of information would be found in a policy's insuring agreement?
Renewal dates
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
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
If a producer violates an insurance law, who would impost the penalty?
The Commissioner
Under a dwelling policy, which of the following is not a factor in determining a loss?
The amount negotiated by the insured
Which of the following would NOT be considered part of the insured location under the liability section of a homeowners policy?
Vacant farmland owned by the insured
All of the following are essential elements of a commercial package policy (CPP) except?
Valuations and/or settlement provisions
The declarations page of the homeowners policy provides all of the following information except?
A statement that earthquake damage is not covered
What are common carriers required to issue to every shipper that it transports goods for?
A uniform bill of lading
Produces evaluations of insurers' financial status often used by state departments of insurance?
AM Best (AM Best & Company)
A large antenna is damaged when a tree branch hits an insured farm dwelling during a storm. Coverage A of a farm property coverage form would insure damages for this occurrence up to?
$1,000
An insured has $5,000 of medical coverage on a persoanl auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000 for the first passenger, and $8,000 for the third passenger. How much will the policy pay under medical payments coverage?
$14,000 (The limit is not more than $5,000 per person per accident)
A $100,000 house insured on a policy with an 80% coinsurance requirement has a fire that caused $40,000 of damage; the owner has a policy with $60,000 coverage. How much can the oqner collect for his loss?
$30,000
Collisions coverage for damage to insured auto may be subject to deductibles in what increments?
$50
An insured has a personal auto policy with both comprehensive ( other-then-collision) and collision coverage. His car is stolen and recovered five days later. If the insured claims transportation expenses of $20 day, how much will his policy pay?
$60 ( $20 per day after 48 hours, not to exceed 30 days in total)
The business owners policy liability coverage will pay for necessary medical expenses of other incurred within what maximum time-period?
1 year
The business owners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period?
1 year
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?
168 hours
What is the license renewal period in this state?
2 years
How may continuing education requirements must be met with a two-year period?
24
A broker requests a hearing with the Commissioner. Within how many days of the request must the hearing be held?
30 days
An insurance producer is required to notify the Commissioner of any felony convictions within how many days of the conviction?
30 days
In Maryland, how long is the Commissioner's term in office?
4 years
Your property policy will be due for renewal soon. When should you expect to recieve notice of renewal premium from your insurer?
45
If a man receives a binder for property insurance today, what is the maximum amount of time that the bider could be effective?
45 days
When an insurer wants to cancel or non-renew a property insurance policy, it should give the insured advanced written notice of at least?
45 days
An insurer cannot cancel a property insurance policy unless the insured was notified
45 days ago
Maximum eligibility requirements for a business owners policy?
6 stories high, 25,000 square feet mercantile space in apartment building, 100,000 square feet for the office building, and $3 million gross sales
To recieve the total amount of a partial loss, a house must be insured for at least how much of it's value on the date of loss?
80%
Which of the following is eligible for a business owners policy
A 6-story office building with less than 100,000 square feet total area
Which of the following losses would not be covered by a homeowners policy?
A coin collection valued at $500 lost in a fire (No more that $200 allowed)
Which of the following would authorize the commingling or premiums with the agent's personal funds?
A letter of consent from the principal
Which of the following would be considered self-insuring?
A person or entity develops a formal program that identifies, evaluates, and funds it's losses as an alternative to purchasing insurance
Concerning insurance, the definition of a fiduciary is?
A producer who handles insurer funds in a trust capacity
A business owners policy is?
A self-contained prepackaged policy
Who is the Commissioner appointed by?
The governor
Personal property coverage under a homeowners policy would cover?
The insured's camera if it is stolen while the insured is on vacation
Under the liability section of the Personal Auto Policy, all of the following are considered persons insured, except?
The insured's employer, if the insured used the employer's vehicle to run an errand for his employer
The cancellation provision in a business owners policy specifies all of the following except?
The method of transferring the owners rights
Mr. G wants to become a bail bondsman in Maryland. What are the requirements in order for MR. G to become a licenses bail bondsman?
The requirements are the same to become a property or casualty producer.
Which of the following losses would most likely NOT be covered under Coverage A in the dwelling policy?
Theft of a renter's lawnmower use to service the premises
The Department of Insurance requires a license for anyone engaged in insurance transactions so they can have control over?
Those selling insurance or advising the public
In the Personal Auto Policy, owned trailers being towed by an insured auto are automatically covered for?
Uninsured Motorists Coverage
How long do binder last?
Until the policy is issued or denied or 45 days, whichever is earlier
Which of the following best describes the amount of loss assessment coverage included under a homeowners policy liability coverage section?
Up to $1000 per occurrence
In forming an insurance contract, when does acceptance usually occur?
When an insurer's underwriter approves coverage
Medical benefits under Workers Compensation statutes are provided
Without limit
Where is Coverage C provided?
Worldwide basis
Which of the following would not be covered by medical payments others in Section II of your HO policy?
You cut your leg while whacking weeds in your backyard with your neighbor's weed whacker.
