Questions 4

A self-contained prepackaged policy.

A businessowners policy is

Mechanical breakdown.

A common exclusion found under physical damage to your auto includes

Never more than 75% of the loss is paid.

A loss has occurred before the first report has been filed on a value reporting coverage form. Which is NOT true?

$600

A tow truck was stolen from the insured's premises. The insured has loss of use coverage on his commercial auto policy. How much will the insured be able to collect from the coverage if unable to use the town truck in its operations for 40 days?

Mortgagee

According to the standard mortgage clause, who has the right to bring a suit in their own name to recover damages, pay policy premiums, and submit a proof of loss?

Twisting

Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of

The named insured obtains a divorce.

All of the following are valid reasons for an insurer to cancel an auto insurance policy, EXCEPT

Rented recreational vehicles

All of the following may be covered by the miscellaneous type vehicle endorsement EXCEPT

This coverage limit pays in place of the limit of insurance shown in the declarations.

All of the following statements are true regarding fire department service charge additional coverage under the businessowners policy EXCEPT

The policyholder can sue the insurer whether or not all conditions and provisions of the policy have been met.

All of the following statements concerning liability coverage are true EXCEPT

Automobiles held for sale.

Business personal property coverage form covers all of the following EXCEPT

Inadvertent injury to others caused in the course of advertising the insured's product.

CGL Coverage B (Personal and Advertising Injury) will cover

Animals and birds.

Dwelling policy Coverage C - Personal Property will cover all of the following EXCEPT

An employee engaged in seasonal agricultural labor that works 60 days in a calendar year.

In Pennsylvania, all of the following classes of employees may be excluded from the requirement of being covered under Workers Compensation insurance coverage, EXCEPT

$3,000

In addition to income benefits, how much will a dependent survivor receive as a funeral benefit for a deceased employee covered under Workers Compensation?

Errors and omissions.

Professional liability coverage protects the insured against legal liability resulting from

Express authority.

The authority granted to an agent through the agent's contract is referred to as

1 year

The businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period?

Up to $2,000

The cost of restoring farm records is an additional coverage offered under a farm policy. How much will the policy pay to restore the records?

A statement that earthquake damage is not covered.

The declarations page of the homeowners policy provides all of the following information EXCEPT

The sole proprietor of the business and his or her family members

The individual named insured endorsement under a commercial auto policy provides coverage for which of the following?

Utmost good faith.

The insurer must be able to rely on the statements in the application, and the insured must be able to rely on the insurer to pay valid claims. In the forming of an insurance contract, this is referred to as

Insuring agreement.

The part of the insurance contract that describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured is called the

Property coverage.

Under Section I, homeowners insurance must include

If a consumer does not sign and return the notice of disclosure within 30 days

Under which of the following circumstances can financial institutions share insurance coverage information with third parties, for the purpose of soliciting the purchase of insurance?

10% of Coverage A

What is the amount of coverage that would be available for a detached garage under the Coverage B - Other Structures of a homeowners policy?

$5,000

What is the civil penalty for the first violation of the Pennsylvania Insurance Fraud Prevention Act?

$1,000

What is the maximum dollar amount an insurer will pay for loss to sound equipment permanently installed in a vehicle insured under a business auto policy?

5

What is the maximum number of roomers or boarders for properties insured under the dwelling policy?

To expand the definition of a covered auto to include various motorized vehicles

What is the purpose of the miscellaneous type vehicle endorsement in personal auto policies?

Negligence

What other term is used to refer to unintentional torts?

Liability

What type of coverage does a homeowners policy include that a dwelling policy does not?

Increases the limit of bodily injury coverage available to an insured to a total equal to the sum of the bodily injury available on all autos insured

When an insured has multiple autos insured, what effect does the stacking of UM and UIM coverage have in terms of the benefits available?

Nonpayment of premium.

When an insurer cancels an auto policy for an allowable reason, they must give notice to the named insured of possible eligibility for coverage through the Pennsylvania Auto Insurance Plan, unless the reason for cancellation is

The excess over the self-insured retention.

When an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays

Department of Insurance

Which of the following authorities monitors the financial strength of insurers?

Medical payment to others

Which of the following coverages is included in an unendorsed homeowners policy?

Any degree of negligence by the injured party may bar recovery.

Which of the following describes contributory negligence?

Coverage B

Which of the following dwelling coverages would provide coverage to a garage not attached to the primary insured dwelling?

Certificate of authority

Which of the following is NOT found in a commercial package policy?

Collapse

Which of the following is an additional coverage that is covered by the broad causes of loss form?

Admitted

Which of the following is another term for an authorized insurer?

A 6-story office building with less than 100,000 square feet total area

Which of the following is eligible for a businessowners policy?

It provides errors and omissions coverage for an agency.

Which of the following statements is NOT true regarding a personal umbrella liability policy?

The coverage is considered good will because payments are made without regard to fault.

Which of the following statements is true regarding the commercial general liability policy's Coverage C - Medical Payments?

Sublimit

Which of the following terms describes a reduced or limited amount of coverages, other than the combined single limit, that is available to pay claims resulting from passenger bodily injury?

Agreed value

Which of the following types of valuation works best for property whose value does not fluctuate much?

A house

Which of the following would NOT be classified as personal property for insurance purposes?

Bodily injury to a residence employee

Which of the following would be included in the farm liability coverage forms?

Additional coverage

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?

Twisting

Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?

Property damage liability

While an insured was towing a utility trailer with his auto, the trailer came loose and ran into a store front. What part of the insured's auto policy would pay for the damage to the store?