property missed questions
Which of the following would NOT be allowed to offer insurance advice for a commission fee in this state? A. A director of an insurance company B. A trust officer of a bank C. A CPA D. A licensed attorney at law
A. A director of an insurance company
In businessowners policies, a deductible does NOT apply to which of the following additional coverages? A. Fire department service charge B. Debris removal C. Preservation of property D. Forgery or alterations
A. Fire department service charge
For an additional premium, the extended coverages written on the basic form dwelling policy would cover which of the following? A. Riot B. Vandalism C. Glass breakage D. Fire
A. Riot
Which of the following is NOT a cause of loss form for commercial property coverage? A. Specific B. Special C. Broad D. Basic
A. Specific
An insured rents out a bedroom in his residence for $50 per week. The residence is badly damaged by fire. During the three weeks required to repair the fire damage, the insured pays $900 in rent for a short-term apartment, and the renter is forced to find other accommodations. Disregarding any extra expense for meals, how much would an HO-3 pay under Coverage D? A. $150 B. $300 C. $900 D. $1,050
D. $1,050 ($900 as additional living expense + $150 for loss of rent)
Under the garment contractor floater of an inland marine policy, coverage while the property is in transit between the insured and the subcontractor is usually written on what basis? A. Unfiled B. Named perils C. Unnamed Perils D. All-risk
D. All-risk
An insured is the owner of a clothing boutique. She has a Floor Plan Merchandise Floater to cover the property that is financed until it is sold. At closing time a month ago, she noticed that very expensive dresses had been stolen. However, she did not file a report to her insurance company until recently. How much will her insurer pay for this loss? A. 50% of the limit written B. 90% of the limit written C. 100% of the limit written D. Nothing
90% of the limit written. (If the insured has not filed a report at the time of loss, the insurer is only liable for 90%)
Within how many days must insurers pay approved claims? A. 15 days B. 30 days C. 45 days D. 90 days
B. 30 days
When insurance is written on a dwelling form, which of the following types of property would be insured under coverage B (other structures)? A. Building equipment and outdoor equipment B. A garage separated from the dwelling C. Materials and supplies used for the construction or repair of the dwelling D. A laundry room attached to the dwelling
B. A garage separated from the dwelling
With respect to the CPP, an interline endorsement is one that: A. Applies to only one line of insurance that is included in the package B. May apply to more than one insurance that is included in the package C. Never applies to all lines of insurance that is included in the package D. Applies to all of the lines of insurance that are included in the package
B. May apply to more than one line of insurance that is included in the package
If a producer's license is violates for criminal activity, what is the maximum amount that can be charged for each offense? A. $10,000 B. $15,000 C. $20,000 D. $5,000
A. $10,000
In Illinois, any type of property or casualty insurance policy that is not being renewed because of nonpayment of premium requires an advanced notice of how many days to the insured and a copy to the writing producer? A. 10 days B. 20 days C. 30 days D. 60 days
A. 10 days
The exact, direct, uninterrupted cause of loss is the: A. Absolute cause B. Proximate cause C. Actual cause D. Intervening cause
B. Proximate cause
The BOP extension form for personal property off-premises is limited to: A. $2,500 B. $5,000 C. $10,000 D. $15,000
C. $10,000
Within what time period from the receipt must the insurer refund any premiums due to the insured? A. 3 days B. 10 days C. 15 days D. 30 days
C. 15 days
Under coverage B - Other structures, a homeowners policy provides coverage for other structures on the residence premises. Which of the following statements is NOT true of this coverage? A. A detached garage may be covered if rented to others as a private garage B. Other structures may not be used to store business property of others, even though a business is not conducted from the structure C. Any loss under coverage B reduces the limit of liability of coverage A D. Other structures covered under coverage B must be set apart from the dwelling clear space
C. Any loss under coverage B reduces the limit of liability of coverage A.
In the event that a premium finance agreement is cancelled or prepaid, the service charge or other allowable charge will be: A. Returned to the insured on a pro rata basis B. Returned to the insured on a short-rate basis C. Be retained by the premium finance company D. Any of the above
C. Be retained by the premium finance company
To be valid, an insurance policy must have all of the following EXCEPT: A. Consideration B. Offer C. Countersignature D. Acceptance
C. Countersignature
Which homeowners form provides open peril coverage fir dwelling (Coverage A), and contents (Coverage C)? A. HO-2 B. HO-3 C. HO-5 D. HO-8
C. HO-5
In a DP-1, if the insured elects to apply coverage B to a detached garage, coverage A will: A. Only be applicable if the insured pays an additional premium B. Be increased by 10% C. Be reduced by 10% D. Only be applicable if the insured pays a higher deductible
C. Reduce by 10%
Which of the following is INCORRECT regarding mine subsidence insurance? A. The premium for the mind subsidence insurance coverage must be listed separately on the policy B. The premium charged is a premium set by the fund C. The insured can waive the mine subsidence coverage if done in writing D. The premium is mandatory
D. The premium is mandatory (Not mandatory since the insured can waive the mine subsidence coverage)
