Property Exam - Missed
Vandalism and malicious mischief would be covered if the insured's premises have been vacant for no more than how many days?
60
If an insurer believes that it has received a fraudulent claim, it must notify the bureau and request an investigation within
60 days
Multiple incidents of terrorism would be deemed one incident if they occurred within
72 hours
An insured owns a building that is valued at $400,000. To comply with the 80% coinsurance provision of his insurance policy, how much should he insure the property for?
80% of the property's replacement cost or more
Which of the following losses would NOT be covered by a homeowners policy?
A coin collection valued at $500 lost in a fire
Which of the following individuals engaged in the business of insurance would NOT be required to be licensed?
A person who secures information for enrolling individual into a group insurance
In which of the following circumstances is an active producer license NOT required?
A retiree receives renewal commission for policies written when he was an active producer.
A businessowners policy is
A self-contained prepackaged policy.
Which of the following would be required to obtain a producer's license in this state?
A trustee of an employee trust plan that is compensated indirectly by the company issuing the contract
How much is covered for debris removal under the HO property additional coverages?
All reasonable costs
Rebating is an unfair trade practice and is regulated by law. All of the following would be considered to be rebating EXCEPT
An agent misrepresents policy benefits to convince a policyowner to replace policies.
Which of the following is NOT covered under accounts receivable coverage form?
Any loans required to offset uncollectable amounts
An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an
Authorized insurer
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?
Baliee's customer policy
Which of the following is NOT a primary property coverage in homeowners coverage?
Collapse
An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's liability policy has a limit of $500,000. This amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does the insured have?
Combined single
It is suspected that a producer is consistently violating insurance laws. Which of the following entities is responsible for making sure that the producer stops committing these violations?
Commissioner
Who will transport the property of anyone who hires them?
Common carriers
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT
Conditions
Which of the following risks is eligible for coverage under a businessowners policy?
Condos
An insured's business is damaged because of a fire, and he is forced to close the business temporarily for repairs. As a result, the insured lost income. What type of loss is this?
Consequential
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
Consideration
Which of the following is NOT true about earthquake coverage?
Coverage is commonly provided through a federally-funded program.
Which of the following is NOT covered under the Utility Services - Time Element endorsement?
Damage to the insured's property caused by utility service disruption
Which of the following will NOT be considered unfair discrimination by insurers?
Discriminating in benefits and coverages based on the insured's habits and lifestyle
After a hearing, civil penalties imposed by the Commissioner for each unfair method of competition may NOT exceed
$1,000
The broad theft coverage endorsement on the dwelling form specifies all of the following limitations EXCEPT
$1,000 on silverware
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?
$25,000
An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?
$30,000
A commercial property special form covers property in transit up to
$5,000
Within how many years of a loss may an insured bring a lawsuit against an insurer, according to the dwelling policy?
2 Years
If the Commissioner receives a certificate of noncompliance from the child support recovery unit (CSRU), the producer will have his or her license suspended for how many days?
30 days
To be effective, a notice of intent not to renew a homeowners policy must be delivered to the insured at least how many days before the policy expiration date?
30 days
If an insurer wants to nonrenew a commercial fire policy, it must sent notice of its intent to the insured not less than how many days prior to the expiration date of the policy?
45 days
Jean owns a craft store. The protective safeguards endorsement of her BOP requires the store to have a functional automatic sprinkler system. A winter storm freezes the pipes to the sprinkler system, causing the system to shut down. How many hours does Jean have to restore the system before she must notify her insurer?
48 hours
Under Coverage C of a homeowners policy, the amount of insurance provided to cover personal property of the insured is
50% of the amount provided as coverage A
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
Which of the following is the closest term to an authorized insurer?
Admitted
Which of these is defined as the maximum limit of coverage available under a libaility policy during a policy year, regardless of the number of claims that may be made or the number of accidents that may occur?
Aggregate limit of liability
An insured has four separate but identical policies written by different insurers to cover her $100,000 building. Each policy is written for $100,000, and each has the pro rata liability other insurance clause. In the event of a total loss to the building, what would each insurer pay?
Each policy will pay $25,000 of the loss.
The homeowners policy form that covers condominium unit owners is
HO-6
Events or conditions that increase the chances of an insured loss occurring are referred to as
Hazards
Under which of the following conditions can broad theft coverage be added to a dwelling policy?
If the insured is owner-occupant of the dwelling.
Which of the following is FALSE regarding insurance sales presentations to prospective purchasers?
If there is no producer involved, there are no special disclosures that must be made.
Which of the following would be considered false advertising?
Implying that the agent is the insurer
An additional loss that results from a direct loss of property is called a/an
Indirect loss
All of the following are factors in the determination of actual cash value EXCEPT
Insurance premium paid
Which of the following coverages in dwelling and homeowners policies is for indirect losses?
Loss of use
Which policy consists of the declarations and conditions, endorsements, and other attachments applicable to a single line of insurance?
Monoline
Which of the following covers a carrier for liability for loss to cargo while it is being transported in a truck?
Motor truck cargo policy - truckers form
Losses caused by continuous or repeated exposure to conditions resulting in injury persons or damage to property that is neither intended nor expected is the definition of which of the following terms?
Occurrence
The mobilehome endorsement alters the homeowners policy to cover a mobilehome and other structures on land
Owned or leased by the resident of the mobilehome
Who is covered by an HO-4 policy?
Owners of a Condo
Valuable papers and records form provides coverage for the reconstruction of all of the following types of records EXCEPT
Prepackaged software
After a loss, an insured covered by a business property coverage is NOT required to
Reconstruct for the insurer a timeline of activities leading up to the loss for use in an investigation.
Which of the following statements is NOT accurate regarding commissions and referrals?
Service fees are acceptable as long as the policyholder is licensed.
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
When the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss, the coverage is said to be written as
Stated amount
How much is the premium for the dwelling under construction endorsement under the dwelling policy?
The average amount of insurance during construction
The most the insurer will pay for a loss under a business owners policy is
The limit of insurance after the deductible is paid
The most the insurer will pay for a loss under a BOP is
The limit of insurance after the deductible is paid.
Which of the following is true regarding single dwellings that are insured to at least 80% of the replacement value?
They are automatically provided with replacement cost coverage.
All of the following are essential elements of a commercial package policy (CPP) EXCEPT
Valuations and/or settlement provisions
Which of the following is NOT an optional coverage available in a businessowners policy?
Workers compensation
A person who is not named as an insured on the declarations page of a policy but is protected by the policy is known as the
additional insured
If an insurer makes a change to broaden coverage in a dwelling policy while it is in effect, the changes will apply
automatically
The major portion of the premium for an equipment breakdown policy pays
for inspections and examinations
For the purpose of insurance, risk is defined as
the uncertainty or chance of loss
