Property Certification Exam MS
Which part of the insurance contract specifies the risks the policy will not cover? A Exclusions B Insuring agreement C Declarations D Conditions
exclusions
A reinsurance agreement that allows ceding and reinsurance companies the opportunity to negotiate coverage for individual risks is a: A Breach of trust B Risk Sharing Plan C Facultative Agreement D Treaty Agreement
facultative agreement
An award to an injured party for compensatory damages of losses that cannot be assigned a specific dollar value are known as: A General damages B Punitive damages C Special damages D Vicarious liability
general damages
Which of the following is true regarding policy delivery? A If a producer is involved in a policy sale, it is their duty to deliver the policy to the insured. B If a producer is involved in a policy sale, it is not their duty to deliver the policy to the insured. C If a producer is involved in a policy sale, it is the Commissioner's duty to deliver the policy to the insured. D If a producer is involved in a policy sale, it is the insured's duty to deliver the policy.
if a producer is involved in a policy sale, it is their duty to deliver the policy to the insured
The Personal Articles Floater provides for all of the following, except: A Insures commercial property B Worldwide coverage C Claims are settled on an actual cash value basis D Coverage is provided for open perils
insures commercial property
Which peril is covered under the Dwelling Form DP-1? A Weight of ice, snow or sleet B Lightning C Falling objects D Freezing
lightning
The loss of property due to an unknown cause is known as _________________. A Robbery B Mysterious disappearance C Burglary D Vacancy
mysterious disappeatnace
All of the following are duties of the insured following a loss, except: A Separate damaged from undamaged property B Protect property from additional damage C Inventory lost property D Notify the insurance department in case of loss
notify the ins dept in case of loss
The Commissioner can suspend a license for if a producer is found to have: A Been accused of a felony B Paid state income tax C Held an insurance license in another state D Obtained a license through misrepresentation
obtained a license thrigh misrepresentation
Which of the following statements regarding medical payments coverage is not correct? A Payments are considered an admission of guilt B Coverage is for bodily injury of a third party as a result of the insured's activities C Payments are made regardless of the insured's negligence D Provides payment for necessary medical, surgical and hospital expenses
payments are considered an admission of guilt
An agent who promises or gives to any applicant anything of value that isn't specified in the contract is guilty of: A Misrepresentation B Rebating C Fraud D Twisting
rebating
Of the following, each is an unfair or deceptive business practice, except: A Representation B Misrepresentation C Discrimination D Defamation
representation
Which peril is NOT covered under Part D of the Personal Auto Policy? A Flood B Earthquake C Riot D Road damage to tires
road damage to tired
Marie was mugged on the street when a stranger grabbed her purse and threatened to knock her down. This act describes which of the following? A Larceny B Robbery C Theft D Burglary
robbery
The scrap value of damaged property is the: A Arbitration value B Appraisal value C Salvage value D Actual cash value
salvage value
To _____ means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurance company. A Barter B Sell C Negotiate D Solicit
sell
To ________ means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company. A Negotiate B Solicit C Trade D Sell
solicit
Which condition prevents the insured from collecting twice for the same loss? A Subrogation B No benefit to bailee C Liberalization D Restoration
subrogation
What is another name for the Homeowners Form HO-4? A Modified Coverage Form B Special Form C Tenants Form D Broad Form
tenants form
What is another name for the Homeowners Form HO-4? A Tenants form B Broad form C Special form D Modified Coverage Form
tenants form
Which of the following is true regarding the licensing of an individual in this state? A The applicant must have a law degree B The applicant must have an insurance degree C The applicant must pass a state licensing exam D The applicant must be 32 years of age
the applicant must pass a state licensing exam
What is a hazard? A The increase in the cause of a loss B The cause of a loss C Coverage for only certain perils D The increase in the chance of a peril occurring
the increase on the chance of a peris occurring
All of the following perils are automatically covered under the DP-3 policy, except: A Theft of contents B Damage by burglars C Scorched countertops D Hail
theft of contents
Which of the following coverages will protect the insured against drivers who have inadequate or insufficient coverage to respond to claims? A Uninsured B Other than Collision C At-Fault D Underinsured
underinsured
Which loss would NOT be covered by the National Flood Insurance Program? A Water main break B Mudslide caused by accumulation of water C Overflow of inland or tidal waters D Unusual and rapid accumulation or runoff of surface waters
water main break
Whenever the commissioner has reason to believe that any such person, company, corporation or association has engaged in any improper or unauthorized activity in violation of any insurance law, the commissioner may issue a _______________________. A Order for bank withdrawal B Order to extradite C Restraining order D Cease and Desist Order
Cease and Desist Order
Evidence that specific types of insurance were purchased by the insured at certain limits on a specific date is called a: A Application B Certificate of Insurance C Binder D Endorsement
Certificate of Insurance
Which loss is an example of a direct loss? A Loss of rents B Expediting expenses C Loss of income D Collapse
Collapse
Which section of an insurance policy includes the names of the insurer and insured, the effective and expiration dates, and the limits of liability? A Declarations B Insuring clause C Exclusions D Conditions
Declarations
The specified amount of each loss that the insured must bear is the __________ A Inherent vice B Abritration C Cancellation D Deductible
Deductible
Which concept is designed to eliminate small claims and help in reducing the cost of insurance? A Deductibles B Franchise C Exlusions D Coinsurance
Deductibles
What unfair trade practice consists of making any false oral or written statement that is critical of the financial condition of an insurer, and which is calculated to injure any person engaged in the business of insurance? A Misrepresentation B Rebating C Defamation D Discrimination
Defamation
Charging a different premium for two separate individuals who are in the same insuring classification, just because one of the individuals has a higher new worth, would be an example of: A Defamation B Coercion C Boycott D Discrimination
Discrimination
Which of the following is an example of a peril? A Indifference B Unlocked front door to a home C Earthquake D Gasoline stored on the premises
Earthquake
Attachments that broaden or amend coverage in a property or casualty policy are known as: A Rider B Endorsement C Amendments D Binders
Endorsement
Rates must be: A Inadequate B Excessive C Unfairly discriminatory D Fair
Fair
The federal act that protects consumer privacy by ensuring that data collected is confidential, accurate and used for a proper and specific purpose is the: A Terrorism Risk Insurance Act B USA PATRIOT Act C Fair Credit Reporting Act D Gramm-Leach Bliley Act
Fair Credit Reporting Act
Which of the following Forms provides open perils coverage for Coverages A, B, and C? A HO-6 B HO-3 C HO-8 D HO-5
HO-5
Which of the following forms provides named perils coverage to the owner of a condominium or cooperative unit? A HO-5 B HO-4 C HO-8 D HO-6
HO-6
Which homeowner policy form is for dwelling owners who do not wish to insure their older homes for replacement cost? A HO-6 B HO-8 C HO-2 D HO-3
HO-8
Which homeowner policy form is for dwelling owners who do not wish to insure their older homes for replacement cost? A HO-8 B HO-6 C HO-3 D HO-2
HO-8
If an insured's claim was denied, the mortgagee can collect under the policy as long as the mortgagee meets all of the following requirements, except: A Submit proof of loss to the insurer if the insured fails to do so B Notifies the insurer of any change of ownership or change in risk if aware of those changes C Hire a private investigator to follow the insured D Pays any premium due under the policy on demand if the insured fails to do so
Hire a private investigator to follow the insured
The attempt to restore an insured to their pre-loss condition is known as: A Appraisal B Coinsurance C Subrogation D Indemnification
Indemnification
The Personal Articles Floater provides for all of the following, except: A Insures commercial property B Coverage is provided for open perils C Claims are settled on an actual cash value basis D Worldwide coverage
Insures commercial property
Which peril is covered under the Dwelling Form DP-1? A Lightning B Falling objects C Freezing D Weight of ice, snow or sleet
Lightning
The price a willing buyer will pay for a property from a willing seller is: A A valued policy B Actual cash value C Actual appraised value D Market value
Market value
Which of the following hazards is a careless attitude or general indifference on the part of the insured toward the occurrence of a loss? A Morale B Physical C Morale D Legal
Morale
Which tort is unintentional? A Negligence B Battery C Assault D Trespassing
Negligence
Which of the following is not an element of a legally enforceable contract? A Negotiation B Consideration C Legal purpose D Competent parties
Negotiation
A nonadmitted insurer is a company: A Not licensed by the state insurance department to transact business B Organized in another state in which its home office is located C With nonadmitted assets D That has been issued a Certificate of Authority
Not licensed by the state insurance department to transact business
A written notification provided by the insured to an insurer that specifies the details about the time, place and circumstances surrounding a loss is a: A Certificate of Insurance B Notice of Loss C Notice of Accident D Notice of Occurrence
Notice of Loss
A continuous or repeated exposure is a condition describing which of the following? A Proximate cause B Concurrency C Occurrence D Accident
Occurrence
Liability coverage is excluded under a personal auto policy for ownership, maintenance, or use of all of the following, except: A Motorcycle B Off-road vehicle used by insured in an emergency C A company car D Vehicles preparing for a race
Off-road vehicle used by insured in an emergency
Which requirement is needed to act as an insurance producer or agent? A Pass a state insurance examination B Obtain an insurance professional designation C Obtain a bonding license D Take a fiduciary oath of office
Pass a state insurance examination
How is the limit of liability applied under Coverage E of the Homeowners Policy? A Per occurrence B Aggregate C Per occurrence with a per person sublimit D Per person
Per occurrence
Who are the owners of a mutual insurance company? A Directors B Stockholders C Underwriters D Policyholders
Policyholders
A formal statement made by the insured that provides necessary details for the insurer to determine liability under a policy is a: A Proof of loss B Certificate of Authority C Declaration D Certificate of Insurance
Proof of loss
The Windstorm Underwriting Association was created to: A Provide an adequate market for wind and hail coverage throughout Mississippi's coastal areas B Provide an adequate market for auto coverage C Provide an adequate market for crop coverage D Provide an adequate market for livestock coverage
Provide an adequate market for wind and hail coverage throughout Mississippi's coastal areas
Lightning strikes a home and starts a fire that destroys the structure and its contents. The lightning is the: A Pure Risk B Proximate cause C Speculative Risk D Indirect loss
Proximate cause
Lightning strikes a home and starts a fire that destroys the structure and its contents. The lightning is the: A Risk B Indirect Loss C Peril D Proximate cause
Proximate cause
Which type of coverage will replace damaged or destroyed property with the equivalent at current cost? A Actual cash value B Replacement cost C Market value D Stated amount
Replacement cost
The scrap value of damaged property is the: A Appraisal value B Arbitration value C Salvage value D Actual cash value
Salvage value
Gambling is an example of which type of risk? A Speculative B Pure C Partial D Whole
Speculative
The Mississippi State Rating Bureau must be composed of: A Nonresident agents B State residents skilled in fire insurance rating C Temporary agents D People with no experience in fire insurance rating
State residents skilled in fire insurance rating
A representation is described as a: A False statement contained in the application B Statement on the application that the insured believes is true C Fraudulent statement in the application D Statement guaranteed to be true
Statement on the application that the insured believes is true
Which condition provides the insurer the right to collect against a responsible third party? A Restoration B No Benefit to Bailee C Liberalization D Subrogation
Subrogation
What is the definition of risk? A The chance of a loss B A hazard C A peril D The loss itself
The chance of a loss
Whose consent is required to transfer or assign interest in an insurance contract to another? A The insured B The insurance department C The mortgagee D The insurance company
The insurance company
Choose the FALSE statement about mobile home insurance: A When threatened by a covered peril, the policy provides $500 for reasonable expenses for moving the mobile home B The mobile home and contents may be written only on a named peril basis C Coverage A insures the mobile home and property installed on a permanent basis D While being moved to a new location, an optional endorsement will provide coverage for collision up to 30 days
The mobile home and contents may be written only on a named peril basis
Allowing individuals of the same class and hazard to be charged different rates for the same insurance coverage is: A None of these B A way to make a higher commission C Unfair Discrimination D Risk Management
Unfair Discrimination
__________ is what occurs when a property that contains personal property but has no occupants. A Unoccupancy B Robbery C Theft D Vacancy
Unoccupancy
For insurance purposes, an unfurnished beach house is considered ____________ because no one is living there. A Vacant B Empty C Unoccupied D Unused
Vacant
The liability assigned to one party for the conduct of another, based solely on a relationship between the two is: A Gross negligence B Vicarious liability C General liability D Personal injury
Vicarious liability
Answers to specific questions on an insurance application that are guaranteed to be true best defines: A Misrepresentations B Warranties C Concealments D Represenations
Warranties
All of the following may be considered to be an uninsured motorist, except: A A person borrowing the auto with permission B A phantom operator C A driver with no liability insurance D A hit and run driver
a person borrowing the auto with permission
Which increment amount is generally used when writing Umbrella Policies? A $100,00 B $2 million C $500,000 D $1 million
1 millon
Anyone who willfully violates a cease and desist order will be subject to a fine of up to $______ for each violation. A $500 B $750 C $1,000 D $1,500
1000
Within ____ days of notifying the Commissioner of the producer's termination, the insurer must mail a copy of the notice to the producer at his/her last known address A 14 B 7 C 15 D 10
15
A cancellation of coverage is not effective unless the insured or any named creditor is notified at least ___ days in advance. A 30 B 21 C 14 D 28
30
Producers must notify the Commissioner within ___ days of any change of address. Failure to do so may result in a penalty. A 21 B 30 C 45 D 14
30
When the Commissioner receives the notice of appointment, the Commissioner must verify within ___ days that the producer is eligible for appointment. A 14 B 30 C 15 D 10
30
After the first 24 hours, the Earthquake Endorsement covers damage for how many additional hours? A 72 B 48 C 36 D 24
48
If a producer is deemed ineligible for appointment, the Commissioner must advise the insurer within ___ days of the determination. A 5 B 3 C 10 D 7
5
The Mississippi Insurance Guaranty Association will pay not less than ____ per policy for a covered claim for the return of unearned premium A $40 B $50 C $30 D $20
50.00
Every person who conducts any insurance transaction without having proper licensure is guilty of a misdemeanor. Upon conviction, they will be punishable by a fine of no more than _______ per violation A $15,000 B $5,000 C $1,000 D $10,000
5000
Which of the following individuals would not be considered a family member covered by a Personal Auto Policy? A A brother living out of state B A blood relation C A foster child D A resident member of the household
A brother living out of state
Who of the following could hold a temporary insurance license? A A personal representative of a deceased agent B NAIC President C A direct marketing agent D Real estate agent selling mortgage protection
A personal representative of a deceased agent
Which term describes the cost to replace property minus the deduction for depreciation? A Fair market value B Actual cash value C Stated value D Replacement cost
Actual cash value
The Department or Division of Insurance may refuse to renew the license of a licensee if: A The continuing education requirements are never met B Renewal fees are not paid C All of the answers listed D Proper renewal procedures are not followed
all of the answered listed
The Changes condition states that: A Any changes to the policy must be made in writing by the insurer B Any changes to the policy must be made in writing by the producer C Any changes to the policy must be made in writing by the insured D Any changes to the policy must be made in writing by the Commissioner
any changes to the policy must be made in writing by the insurer
When is insurable interest required to exist on a property policy? A At the time of application B At policy delivery C When the first premium is paid D At the time of loss
at the time of loss
A person or any organization to which property has been entrusted, usually for repairs, servicing or storage is a ________. A Producer B Insurer C Bailee D Agent
Bailee
A person or organization that entrusts property to a bailee is a _________. A Insured B Bailor C Agent D Burglar
Bailor
The Commissioner can revoke a license for if a producer is found to have: A Complying with an administrative order B Been accused of a felony C Provided correct information on a licensing application D Been convicted of a felony
Been convicted of a felony
By what other name is the Dwelling Form DP-2 known? A Blanket Form B Basic Form C Broad Form D Special Form
Broad Form
What is NOT a supplementary payment under Section II of the Homeowners Policy? A The insured's loss of earnings B Expenses incurred by the insured at the insurer's request C Claim settlement payments D Defense costs
claim settlemtn payments
Which provision encourages the insured to maintain a certain limit of insurance? A Replacement Cost B Limit of Liability C Insuring Agreement D Coinsurance
coinsurance
Which provision requires the insured to maintain a certain limit of insurance? A Insuring Agreement B Replacement Cost C Limit of Liability D Coinsurance
coinsurance
Liability involving a degree of negligence that is established by a court of law, best describes: A Assumption of the risk B Comparative negligence C Contributory negligence D Assumed liability
comparative negligence
Which section of an insurance policy states the obligations of the parties to the contract? A Conditions B Insuring Clause C Declarations D Exclusions
conditons
