RMI 4224- Test 1, RMI 4224 test 2, Schriefer Exam 3, Schriefer Exam 3
An building is valued at $250,000 and insured for its full value. A fire completely destroys this building and the insured is paid $250,000 for the destroyed building. The cost to remove the debris is $40,000. What amount, if any, can be paid to the insured for the cost of the debris removal? $0 $15,000 $25,000 $40,000 $62,500
$25,000
Under the Legal Liability Coverage Form, what is the maximum daily amount an insured can be paid for their loss of earnings while attending a trial at the request of their insurance company? $100 $250 $500 $1,000
$250
Under the Coverage Extensions portion of the Business Income (And Extra Expense) Coverage Form, the most the insurer will pay for a loss of business income and/or extra expenses at any newly acquired location (other than fairs or exhibitions) is _____________ at each location (unless a higher limit is shown in the Declarations). $10,000 $50,000 $100,000 $250,000
$100,000
Tommy has a Personal Auto Policy (PAP) with bodily injury limits of $50,000 per person and $100,000 per accident. Tommy was recently involved in an auto accident causing the following bodily injuries: Injuries to Steve = $60,000 Injuries to Barbara = $10,000 Injuries to Valerie = $25,000 What is the total amount of money all three claimants collectively will receive from Tommy's insurance company? $50,000 $85,000 $95,000 $100,000
$85,000
Joe owns an appliance repair shop. He just finished repairing a customer's washing machine at a cost of $125 ($50 for a part and $75 in labor). Before the customer could pickup their repaired washing machine, a fire swept through Joe's shop and destroyed the washing machine. The washing machine was worth $500 at the time of this loss. How much money is Joe entitled to collect for this loss under his B&PP? $0 $125 $500 $625
$125
All of the following are true concerning hazard Except: -A hazard is a condition that increases the probability of loss. -A hazard is a condition that increases severity of loss. -"Hazard" is synonymous with "peril." -Building a home in a remote, arid area increases the probability of a loss due to wildfires. In this example, the decision to build in a remote, arid area is the hazard that leads to a greater probability of loss due to wildfires.
-"Hazard" is synonymous with "peril."
XYZ Company is covered under two business auto policies, each one providing primary coverage with the following limits: Policy 1 - $200,000 limit Policy 2 - $50,000 limit If XYZ Company incurs a $60,000 covered loss, how much will be covered under Policy 1 under the Other Insurance provision of the Business Auto Coverage Form? $12,000 $15,000 $45,000 $48,000
48k
Which of the following accurately states a Condition commonly found in commercial property coverage forms: -An insured has up to 3 years after a loss occurs to bring legal action against against their insurer -A pro rata "other insurance" provision applies when two or more policies cover the same property -A bailee is treated as an insured and entitled to receive payment for damage to an insured's property while in the bailee's custody. -The coverage territory includes the U.S., Puerto Rico, any U.S. possession, territory, Canada and Mexico
A pro rata "other insurance" provision applies when two or more policies cover the same property
Which of the following statements concerning the Leasehold Interest Coverage Form is/are true? I. A tenant with a 5 year lease who's monthly rent is significantly below market value would not benefit from purchasing this coverage form. II. A tenant who invested $100,000 in new carpeting at the beginning of a 10-year lease that contains a cancellation provision due to a covered cause of loss would benefit from purchasing this coverage form. I only II only Both I & II Neither I nor II
II only
Which of the following statements is/are true? I. The most commonly utilized CGL Coverage Form provides coverage on a claims-made basis. II. The retroactive reporting date for a claims-made CGL Coverage Form can be the policy's inception date or a date earlier than the policy inception date.
II only
All of the following is covered under the Legal Liability Coverage Form EXCEPT: Legal liability assumed by contract Legal liability for property of others Loss of use Defense costs
Legal liability assumed by contract
Compensatory damages include which of the following? Special damages General damages Punitive damages A & B only A, B & C
a and b only
The "Period of restoration" for both Business Income Coverage and Extra Expense coverage can end: -On the date when the damaged property should have be repaired, rebuilt or replaced with reasonable speed and similar quality -The date when the business is resumed at a new permanent location -On the expiration date of the policy -A & B only -A, B & C
a and b only
Which of the following is/are reasons for providing a no-fault medical expenses benefit under the CGL? Goodwill Reduction of lawsuits The coverage is inexpensive to provide A & B only
a and b only
Which of the following statement(s) concerning GCL limits and submits is/are true (select all that apply)? -The CGL has annual caps on the amounts that can be paid in addition to caps for each accident/occurrence. -The CGL has 2 aggregate limits, The General Aggregate Limit and the Products-Completed Operations Aggregate Limit. -Coverage A, Coverage B, and Coverage C payments are components of the General Aggregate Limit. -Payments made for Damage to Premises Rented to You do not reduce the General Aggregate Limit.
a b and c
All of the following are workers exempt from workers compensation laws EXCEPT: Domestic workers. Agricultural workers. Casual laborers. A factory worker.
a factory worker
Which of these Causes of Loss forms provides the least amount of coverage to an insured? Basic Broad Special
basic
Coverage for damage to a customer's auto being serviced by the insured while in the insured's care, custody or control is referred to as: Motor carrier coverage Bailee's coverage Garagekeepers coverage Covered autos liability coverage
c
Examples of special damages include all of the following EXCEPT: The cost to repair a damaged car Lost wages Disfigurement due to permanent scarring Medical bills
c
Which of the following statements is/are true? I. One condition of the Workers Compensation and Employers Liability Insurance Policy includes an obligation for the insurer to inspect the named insured's workplace. II. Insurer inspections of an insured's workplace are safety inspections and serve as a warranty the insured's operations are safe and compliant with all safety laws and regulations.
neither
Which is the most common method employers use to provide workers compensation benefits for their covered workers? Purchase of private insurance. Purchase of insurance from a state fund. Purchase of insurance from a monopolistic state fund. Self-insurance.
purchase of private insurance
The insurance company, not the named insured, has the burden of showing the amount of lost business income. True False
false
Under the Business Income (and Extra Expense) Coverage Form, the insurance company agrees to pay for loss of business income resulting from the necessary "suspension" of operations during the period of restoration. "Suspension" as defined by this coverage form means the total session of all business activities and does not provide coverage for a mere slowdown of business activities resulting from a covered loss. true false
false
Which of the following types of "theft" losses would be covered under the Causes of Loss -Special Form? -Property found to be missing after taking inventory with no other evidence of how the property came to be missing. -Theft of building materials and supplies attached to the building. -The insured is "tricked" by a con man into handing over property. -Employee theft.
theft of building materials and supplies attached to the building
The Business Income (and Extra Expense) Coverage Form defines "business income" to include net income the named insured would have earned and normal continuing operating expenses (including payroll). True false
true
This endorsement removes the Vacancy Loss Condition from the Policy which allows coverage to remain in force for a building left vacant more than 60 days: Functional Building Valuation Protective Safeguards Vacancy Changes Vacancy Permit
vacancy permit
An employer can be held legally liable for the negligent acts of their employee while the employee is in the course and scope of their employment. This is an example of what theory of liability? Joint and several liability Vicarious liability Absolute liability Strict liability
vicarious liability
Which of the following statements concerning Extra Expense Coverage is/are true? -Extra expenses are expenditures above normal operating costs -The period of restoration begins 72 hours after the loss occurs -The period of restoration ends when the property is restored or repaired, regardless of how long that may take -A & C only
-Extra expenses are expenditures above normal operating costs
All of the following statements concerning insurance policy provisions are true EXCEPT: -Most property insurance policies have provisions that allow an insured to abandon damaged property they no longer want to the insurance company. -Subrogation is the right of the insurance company to recover indemnity payments made to an insured from the third party legally responsible for the loss. -Salvage is damaged or recovered stolen property taken over by the insurance company; salvage often reduces the net payment an insurer makes for a loss. -Since an insurance policy is a personal contract, an insurance company typically only allows an insured to transfer ownership of the policy to another party with the insurer's prior consent/permission.
-Most property insurance policies have provisions that allow an insured to abandon damaged property they no longer want to the insurance company.
What additional duty in the event of a loss does an insured have under the Business Income (And Extra Expense) Coverage Form that doesn't exist under the BPP Coverage Form? -The duty to notify the police if a law may have been broken -The duty to permit the insured to inspect the property and examine the insured's books and records -Cooperate with the insured in their investigation or settlement of the claim -The duty to resume operations as quickly as possible if the insured intends to continue their business
-The duty to resume operations as quickly as possible if the insured intends to continue their business
Which of the following statements concerning coverage for Fire Department Service Charges is true? -Coverage is limited to $1,000 for service at each described premises; the $1,000 coverage limit cannot be increased -This coverage is treated as additional insurance and not subject to the limit of insurance specified in the Declarations -A deductible is applied to qualifying fire department service charges -$1,000 can be paid to each fire department that responds to a covered loss. For example, if 3 fire departments respond to a covered loss, there is a total of $3,000 available under this coverage
-This coverage is treated as additional insurance and not subject to the limit of insurance specified in the Declarations
All of the following statements about the Earthquake and Volcanic Eruption Endorsement are true EXCEPT: -It doesn't remove the earth movement exclusion found in the COL forms. -This endorsement only adds earthquake and volcano coverage to the Special COL Form. -Coverage for earthquakes and volcanic eruption is provided as specifically defined in this endorsement.
-This endorsement only adds earthquake and volcano coverage to the Special COL Form.
Which of the following statements is true concerning Coverage Extensions under the Coverage Form? -Newly acquired or constructed buildings are covered automatically up to $300,000 per building -Additional coverage cannot be purchased for loss or damage to personal property of the Named Insured, its management and/or its employees -Up to $1500 is available to pay the cost to restore and replace information relating to valuable papers and records other than electronic data -Up to $1,000 can be paid for loss or damage of a satellite dish due to fire.
-Up to $1,000 can be paid for loss or damage of a satellite dish due to fire.
Tom always had trouble understanding the coinsurance provision in his BIC, and decided instead to activate the Monthly Limit of Indemnity Optional Coverage with a corresponding fraction of 1/3. The limit of insurance is $60,000. Tom suffered a covered business income loss and the period of restoration was four months, with the monthly loss of business income as follows: Month 1 - $25,000 Month 2 - $10,000 Month 3 - $22,000 Month 4 - $14,000 How much will Tom's insurer pay for his loss of business income in Month 2? $3,333 $10,000 $20,000 $35,000
10k
Tom always had trouble understanding the coinsurance provision in his BIC, and decided instead to activate the Monthly Limit of Indemnity Optional Coverage with a corresponding fraction of 1/3. The limit of insurance is $60,000. Tom suffered a covered business income loss and the period of restoration was four months, with the monthly loss of business income as follows: Month 1 - $25,000 Month 2 - $10,000 Month 3 - $22,000 Month 4 - $14,000 How much will Tom's insurer pay for his loss of business income in Month 4? $0 $3,000 $10,000 $14,000
10k
Very Good Building & Development Company (VGBDC) is covered under a business auto policy with a $250,000 limit. Donna, an employee of VGBDC, has a personal auto policy with a limit of $100,000. She was driving her own car on company business when she had an accident. The accident resulted in $250,000 of covered damages. Of this amount, VGBDC's business auto policy would pay: $0 $100,000 $150,000 $250,000
150k
The following hypothetical applies to HW-15, HW-16 and HW-17. Tom always had trouble understanding the coinsurance provision in his BIC, and decided instead to activate the Monthly Limit of Indemnity Optional Coverage with a corresponding fraction of 1/3. The limit of insurance is $60,000. Tom suffered a covered business income loss and the period of restoration was four months, with the monthly loss of business income as follows: Month 1 - $25,000 Month 2 - $10,000 Month 3 - $22,000 Month 4 - $14,000 How much will Tom's insurer pay for his loss of business income in Month 1? $0 $8,333 $20,000 $25,000
20k
Sally, who is insured under a Business Auto Coverage Form (BACF) in the state of Florida, was driving the covered auto in Georgia. Sally's BACF has property damage liability coverage of $10,000 per occurrence. Georgia requires a $25,000 of property damage liability coverage per occurrence. If Sally has an at-fault accident in Georgia which results in $40,000 in property damage, how much would be covered under Sally's BACF? $10,000 $20,000 $25,000 $40,000
25k
Coverage for newly acquired locations (other than fairs or exhibitions) under Business Income and Extra Expenses Coverage extends for ______ days after the location is acquired or when the newly acquired location is reported to the insurance company. 15 30 45 60
30
The additional coverage Preservation of Property provides coverage for covered property removed from the covered premises to avoid being damaged by a covered cause of loss. How many days from the time the property was moved does this coverage extend? 30 days 60 days 90 days For the duration of the policy period
30 days
Mary owns a fur garment business. One evening, a small fire broke out at the described premises. Fortunately for Mary, only one fur garment (valued at $7,500) was destroyed as a result of the fire. How much money will Mary be paid by her insurance company as a result of this loss? Assume no deductible is applicable to this loss. $0 $2,500 $7,500
7,500
The "Period of restoration" for Business Income Coverage begins: Immediately after the loss 72 hours after the loss 1 week after the loss 1 month after the loss
72 hrs
Which endorsement should an insured purchase in order to secure a lower premium by re-classifying certain Business Personal Property as Building? Additional Property Not Covered Additional Covered Property Additional Building Property Leased Property
Additional Building Property
Which of the following is/are an element of a time element loss? -The property must sustain direct physical loss or damage -The business must have a necessary suspension of operations and/or incur Extra Expenses -The business suffers actual financial loss during the period of restoration -All the above
All the above
The process available to an insured and their insurance company to resolve disputes concerning the valuation of lost or damaged property is: Subrogation Valuation Appraisal Abandonment
Appraisal
Which of the following statements concerning coverage for loss caused by collapse is/are correct? I. Damage to covered property caused by collapse is specifically excluded from coverage under the COL - Special Form. II. Some coverage for collapse is "given-back" under the Additional Coverage section of the COL-Special Form. I only. II only. Both I and II. Neither I nor II.
Both
Which of the following statements concerning coinsurance is/are true? I. Coinsurance is an underwriting concept designed to encourage an insured to purchase insurance nearly equal or equal to the full value of the property being insured. II. The majority of insured property losses are partial losses. Consequently, many insureds may not feel it necessary to ensure their property to its full value. I only. II only. Both I & II. Neither I nor II.
Both I & II.
Which of the following Additional Coverages provides financial assistance to an insured during the period of time it takes for business operations return to their pre-loss levels? Civil Authority Alterations and New Buildings Extended Business Income Interruption of Computer Operations
Extended Business Income
Which of the following statements is/are true? I. The Business Income (and Extra Expense) Coverage Form is the most widely used time element coverage form. II. The Business Income (and Extra Expense) Coverage Form combines coverage for business income and extra expenses under one form. I only II only I & II Neither I nor II
I & II
Which of the following statements concerning CGL Coverage Form Supplementary Payments - Coverages A and B is/are true? I. An insured can be paid up to $250/day to compensate for lost earnings while attending a deposition or trial; II. Supplementary payments reduce the limits of insurance.
I only
Which of the following statements is/are true? I. The insurance company's duty to defend is broader than its duty to pay covered losses. II. Endorsements always provide additional coverage. I only. II only. Both I and II. Neither I nor II.
I. only
Which of the following statements about the Flood Coverage Endorsement are TRUE? I. It can only be used to provide excess flood insurance; primary flood insurance can only be secured from the National Flood Insurance Program. II. Coverage does not go into effect until 72 hours after the effective date of the endorsement. I only II only Both I & II Neither I nor II
II only
Shavon's home is insured for loss under a standard HO-3 policy. She reports the theft of her 5 year-old TV to her insurance company. Although Shavon paid $1,500 for the TV five years ago, she was only paid the actual cash value (ACV) of her TV ($750) by her insurer. What principle of insurance does this example illustrate?: Indemnity Reasonable Expectations Utmost Good Faith Waiver
Indemnity
Which of the following businesses would most benefit from the purchase of the Spoilage Coverage Endorsement? Home Depot Store FSU Campus Bookstore Poultry Processing Plant Automobile Assembly Plant
Poultry Processing Plant
All of the following are examples of an insurable interest EXCEPT: -Jane borrowed $25,000 from Chase Bank to buy a new car. Chase Bank is listed as an additional insured under Jane's personal auto policy. -Roger wants to purchase an HO-5 policy to insure against loss to his next-door neighbor's home. -Wells Fargo has an insurable interest in Keith's home by virtue of the $300,000 Keith borrowed from Wells Fargo in order to purchase this home. -Heather purchased a 10 year term life insurance policy on the life of her husband, Steve.
Roger wants to purchase an HO-5 policy to insure against loss to his next-door neighbor's home.
All of the following are duties of an insured in the event of a covered loss EXCEPT: -Protect covered property from further damage -Cooperate with their insurance company's investigation of the loss -Provide prompt notice of loss to their insurance company -Submit a signed proof of loss within 45 days after requested by their insurance company
Submit a signed proof of loss within 45 days after requested by their insurance company
All of the following are examples of Your Business Personal Property EXCEPT: -Furniture and fixtures -Stock -All other personal property owned by the Named Insured and used in the Named Insured's business -The building or structure described in the Declarations
The building or structure described in the Declarations
Which of the following statements concerning the Increased Cost of Loss and Related Expenses for Green Upgrades Endorsement is true? -The named insured has the option to accept settlement of a covered loss without the green upgrade use or application. -This coverage applies to both buildings and business personal property -This endorsement is subject to the policy's coinsurance clause. -Limited coverage is provided for loss due to contamination by pollutants.
The named insured has the option to accept settlement of a covered loss without the green upgrade use or application.
Covered property damaged by water can be covered under which of the following circumstances? -When the damage results from tidal waves or tsunamis -Water damage resulting from the overflow of any body of water -Water that entered the described premises due to hole in the roof created by a tree blown onto the roof by a windstorm -A creek overflowing due to heavy rain
Water that entered the described premises due to hole in the roof created by a tree blown onto the roof by a windstorm
Tom and Jerry are next door neighbors. One night, a tornado touched down in their neighborhood causing a tree on Tom's property to fall onto the roof of Jerry's home. Jerry files suit against Tom for the damage to Jerry's home caused by Tom's fallen tree. What is Tom's best defense to the lawsuit filed by Jerry? Contributory negligence Comparative negligence Assumption of risk Act of God/Nature
act of god
This endorsement allows an insured to reduce the amount of their premium by electing not to insure specific property not otherwise covered under the Policy: Outdoor Signs Additional Property Not Covered Additional Property Covered Value Reporting Form
additional property not covered
According to the Business Income (And Extra Expense) Coverage Form, if an insured only occupies a part of the building, "your premises" means: -The portion of the building the insured rents, leases or occupies -The area within 100 feet of the building or 100 feet of the premises described in the Declarations, whichever distance is greater -Any area within the building or at the described premises, if that area services, or is used to gain access to, the portion of the building which you rent, lease or occupy. For example, the lobby of building if the insured leases space on the 10th floor of that building -All of the above.
all the above
An element of a legally-binding contract includes which of the following?: Offer and Acceptance Competent Parties Legal Purpose Legal Consideration All the above
all the above
If a worker from FL is injured in GA, which of the following factors would be considered when determining which state's workers compensation benefits will apply? State where the worker was hired. State where the worker lives. State where the worker primarily works. State where the worker was injured. All of the above.
all the above
Which of the following benefits are available to an insured who purchased the Food Contamination Endorsement then had their covered business closed by a health department due to concerns about potential food contamination? Payment of advertisement costs to restore business reputation. Payment of increased cost to clean equipment Provide necessary medical tests and vaccinations for employees All the above
all the above
Which of the following can be a named insured for the CGL Coverage Form (select all that apply)? An individual A Joint Venture A Limited Liability Corporation The spouse of an individual named insured
all the above
Which of the following is an element of negligence that must be present in order to successfully establish negligence against an individual or organization? Legal duty owed Breach of legal duty Proximate cause Damages All of the above.
all the above
Joe owns a bar on the edge of the FSU campus. Joe is concerned about the risk of liability associated with over-serving patrons with too much alcohol. Joe has several risk management techniques available to manage this risk. Joe decides the best way to manage this risk is to sell his bar to another person. The risk management technique Joe utilized is known as: Retention Avoidance Transfer Reduction
avoidance
Tom and Jerry go to a bar together to watch the Super Bowl. They drink six craft beers each during the game. At the end of the game, Tom offers to drive Jerry home. Despite having both the Uber and Lyft apps on his smart phone, Jerry accepts Tom's offer of a ride home. A short time after leaving the bar, an intoxicated Tom drives off the road and hits a tree. Jerry suffers a broken right ankle and facial abrasions as a result of the passenger side airbag deploying.Jerry retains an attorney and files suit against Tom for bodily injuries sustained as a result of Tom's negligence. What is Tom's best legal defense to Jerry's bodily injury lawsuit? -Jerry had the last clear chance to avoid getting injured -Jerry assumed the risk of accepting a ride home from an intoxicated Tom -A bailor-bailee relationship existed between Tom and Jerry -Jerry violated the state's Dram Shop Act by drinking beer for several hours with Tom
b
Which of the following is the method used by two insurance carriers sharing the payment of a loss whereby each contributes equally in the payment of the loss until the loss has been paid or their policy limits have been reached? Pro Rata Contribution by Equal Shares Primary/Excess Per Stirpes
b
Which one of the following statements is correct regarding the liability coverage under a Business Auto Coverage Form (BACF)? -Separate coverage limits apply for bodily injury, property damage, and pollution costs. -Coverage is excluded for any liability resulting from the handling of property after it has been moved from the covered auto to its place of final delivery by the insured. -Supplementary payments reduce the limit of insurance under the form. -The insurer is only required to defend the insured against legitimate claims or suits.
b
Why isn't loss or damage caused by smog specifically excluded under the Basic Form COL form? -Smog is covered under the Basic Form since it's also considered to be Smoke. -Smog isn't a named peril for the Basic Form; consequently, there's no need to specifically exclude it from coverage. -Public policy prohibits the exclusion of smog damage from all COL forms. -None of the above.
b
The CGL generally excludes coverage for the use of aircraft, autos, or watercraft. Which of the following are circumstances under which the CGL will provide liability coverage to an insured for the use of aircraft, autos, or watercraft (select all that apply)? -Use of a non-owned 28 foot motorized watercraft to take a business client fishing. -A watercraft while ashore on premises owned by the named insured -An employee of a restaurant you own hits a parked and unoccupied car while valet parking a customer's car. -Liability assumed under any type of contract for the ownership, maintenance or use of aircraft or watercraft.
b and c
Punitive damages are intended to achieve which of the following objective(s)? Compensate the victim for their economic and non-economic damages Punish the individual or organization responsible for the plaintiff's injuries To deter the plaintiff (and others) from engaging in similar willful misconduct in the future. B & C only A, B & C
b and c only
Which of the following statement(s) is/are true? I. Building collapse due to building decay hidden from view and unknown to the insured prior to a building collapsing will be covered under the Causes of Loss - Special Form. II. Damage caused by earthquake is excluded from coverage unless an endorsement restoring this coverage is purchased by an insured. I only. II only. Both I & II. Neither I nor II.
both
Which of the following statements is/are true? I. Liability coverage for property damage to a customer's property in an insured's care, custody, or control is excluded by both the BACF and Auto Dealers Coverage Form. II. Garagekeepers Coverage provides coverage for an insured's liability for damage to a customer's vehicle in the insured's care, custody, or control.
both I and II
The reason why bridges, roadways, walks, patios, foundations, pilings and piers are typically deemed Property Not Covered under the B&PP is: -They have a low susceptibility to covered causes of loss -Most insureds don't want the values of such items considered in determining compliance with the policy's coinsurance clause. -Both A & B -None of the above
both a and b
All of the following statements concerning mobile equipment and the CGL are true EXCEPT: -Coverage for mobile equipment is generally provided by the CGL -Liability coverage for mobile equipment under Coverage A of the CGL is only excluded under two specific circumstances -The CGL provides coverage for property damage liability arising out of the use of mobile equipment in a prearranged race -The CGL defines mobile equipment to include vehicles that travel on crawler treads.
c
Barbara and Jennifer are both driving eastbound on Gaines Street in separate vehicles on their way to Doak Campbell Stadium to watch the FSU v. Miami game. Barbara's vehicle is directly in front of Jennifer's car. Barbara comes to complete stop at a red light; unfortunately, Jennifer wasn't maintaining a proper lookout and tapped the rear bumper of Barbara's Honda Accord with the front bumper of her Toyota Camry. Since it was a very minor accident and both drivers agreed neither vehicle was damaged as a result of this accident, Barbara and Jennifer didn't call the police and headed to the football game. Two months later, Jennifer was surprised to learn she had been sued by Barbara as a result of this very minor impact auto accident that resulted in no damage to either vehicle. Jennifer's best chance to get this case dismissed is to argue Barbara is unable to prove this required element of a negligence cause of action: -Jennifer owed no duty of care to Barbara -Jennifer breached no duty of care owed to Barbara -Barbara's vehicle didn't sustain any damage as a result of Jennifer's negligence -Jennifer's failure to maintain a proper lookout was not the proximate cause of the damage to Barbara's vehicle
c
Seizure or destruction of property by order of governmental authority will be covered by the Special Form under which of the following circumstances? -A dilapidated covered building is razed by order of government authority due to safety and health concerns. -The police suspect an insured is operating an illegal marijuana distribution business from a building described in the Declarations. The police utilize a civil asset forfeiture law to take possession of this building. -Covered property is destroyed by governmental authority to build a fire line to prevent the spread of a wildfire. -None of the above.
c
The termination of a claims-made policy can create years of potential liability exposure for a business without corresponding insurance coverage. Which type of expended reporting period coverage provides the longest coverage for protection against occurrences not reported prior to the policy expiration date? Extended Reporting Periods coverage Basic Extended Reporting Period (BERP) coverage Supplemental Extended Reporting Period (SERP) coverage None of the above.
c
Which of the following statement(s) is/are true concerning Hold Harmless/Indemnification Agreements? -Defined as liability that arises by way of negligence -The two parties to this type of arrangement are the bailor and bailee -It is a common business practice for one party to contractually assume responsibility for liability of another. -Assuming responsibility for the liability of another is a fairly low risk activity that only minimally increases exposure to loss.
c
Which of the following statements concerning premium calculation for the Workers Compensation and Employers Liability Insurance Policy is true? -It's costs an insurance company more to service one $100,000 premium policy than it does to service five smaller policies with premiums of $20,000 each. -An insured's premium level has no bearing on whether they will be eligible for experience rating. -An experience modification of less than 1 is favorable and more than 1 is unfavorable. -Job classifications are not a factor in calculating an insured's premium.
c
Which one of the following statements is correct regarding Section III - Physical Damage Coverage of the Business Auto Coverage Form (BACF)? -The overturn of a business auto would be covered by Specified Causes of Loss Coverage under the policy. -Substitute transportation costs are only covered if the insured auto is disabled due to a collision. -The covered vehicle overturned due to collision resulting in a shattered windshield. The only physical damage coverage carried by the insured is comprehensive coverage. The insurer will pay for the damaged windshield under the insured's comprehensive coverage. -Substitute transportation costs are only covered if the insured auto is disabled due to a collision.
c
One characteristic of an insurance contract is the "take-it-or leave" nature of the contract's contents. That is, the insurance company drafts all the contract provisions with little or no input from the potential insured. This characteristic makes an insurance contract a/an: Aleatory Contract Unilateral Contract Contract of Adhesion Personal Contract
contract of adhesion
In the liability coverage agreement of the business auto policy, the insurer has all of the following duties, EXCEPT: Duty to pay covered pollution costs/expenses Duty to pay covered bodily injury and property damage expenses Duty to defend the insured Duty to pay up to $2,500 for bail bond costs
d
Which one of the following statements is correct regarding conditions contained in the Business Auto Coverage Form? -The Duties in the Event of Loss condition prevents the named insured from bringing action against the insurer if the insured has failed to comply with the policy provisions. -The Transfer of Rights Against Others condition states that the insured must cooperate with the insurer in its investigation and defense of the loss. -The Liberalization condition indicates that coverage will be void if the named insured commits a fraud related to the coverage. -The Bankruptcy condition states that the bankruptcy or insolvency of the insured will not relieve the insurer of any of its obligations under the policy.
d
The "information page" of the Workers Compensation and Employers Liability Policy is synonymous with which of the following? Conditions Declarations Duties Insuring agreement
declarations
Which of the following statements concerning workers compensation statutes is correct? -Coverage is typically provided to workers employed by the federal government. -Medical benefits are typically subject to deductibles and coinsurance. -Disability benefits paid vary greatly by state. -Burial expenses are never covered.
disability benefits paid vary greatly by state
The Peak Season Limit of Insurance endorsement would be most appropriate for which of the following businesses? Flower shop Chick-Fil- A restaurant CVS Pharmacy ACE Hardware Store
flower
All of the following are examples of occupational diseases covered by workers compensation EXCEPT: Black lung disease Flu or cold Carpal tunnel syndrome Silicosis
flu and cold
Property damaged while in transit will be covered under all of the following circumstances EXCEPT: Fire Lightning Vandalism For losses in excess of $5,000
for losses in excess of $5,000
The "Period of restoration" for Extra Expense Coverage begins: Immediately after the loss 72 hours after the loss 1 week after the loss 1 month after the loss
immediately
An insured who purchases Equipment Breakdown Coverage from a different insurance company than the company providing the insured's business property insurance should purchase which of the following endorsements? Loss Payable Provisions Joint Or Disputed Loss Agreement Additional Insured - Building Owner Limit on Settlement-Blanket Insurance
joint or disputed loss agreement
Which federal law provides crew members of a vessel a tort remedy against their employers when they sustain a work-related injury? The Smith Act of 1910. The Merchant Marine Act of 1920. The Edmond Fitzgerald Act of 1976. Longshore and Harbor Workers Compensation Act.
merchant marine act of 1920
Which of the following statements is/are true? I. One reason workers compensation disability benefits do not pay 100% of a worker's lost wages is to discourage malingering. II. All jurisdictions have a waiting period that delays the start of disability income benefits. The waiting period typically various from 3 to 7 days and functions like a coinsurance clause in a commercial coverage form.
only I
What is the legal concept that limits the amount of time a plaintiff has to initiate a lawsuit for negligence against a person the plaintiff contends caused the plaintiff's injuries/damages? Statute of limitations Statute of repose Statute of liberty Statute of frauds
statute of limitations
What is another name for the process described in the "Transfer of Rights of Recovery Against Others To Us" portion of the CGL Coverage Form? Indemnification. Subrogation. Hold-Harmless. Nullification.
subrogation
The combination of the following three symbols: Symbol 2 - Owned Autos Only Symbol 8 - Hired Autos Only Symbol 9 - Nonowned Autos Only Is the equivalent of which one of the following symbols under the Business Auto Coverage Form? Symbol 1 - Any Auto Symbol 3 - Owned Private Passenger Autos Symbol 4 - Owned Autos Other Than Private Passenger Autos Only Symbol 5 - Owned Autos Subject to No-Fault
symbol 1
An insured who resides in Fargo, ND is better off selecting the Broad Form over the Basic Form in order to add protection for this named peril not available under the Basic Form: Water damage from leakage of appliances. Weight of snow, ice or sleet. Damage caused by falling objects. Theft.
weight of snow, ice, or sleet