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which of the following statements is true regarding the premium computation for workers compensation insurance?

A premium auditor has the right to examine the insured's compensation records at the end of the policy period to determine the actual premium basis.

. A homeowner sells his house to a friend. The friend wants to keep the homeowner's current policy in effect. Under the assignment provision, which of the following is most likely?

The homeowner will need to get written consent from the insurer before the policy can be reassigned.

Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy?

The insured would be responsible for the amount required as underlying limits in the event of a claim.

. If an insurer makes a change to broaden coverage in a dwelling policy while it is in effect, the changes will apply

automatically

which of the following other coverages is NOT included in the basic form dwelling policy?

breakage of glass

An installation floater is used to insure

buildings under construction??

. A state-issued document empowering an insurance company to write contracts of insurance and perform certain business in a state is called

certificate of authority

A professional who wants coverage for all liability exposures should purchase what form of liability insurance?

commercial general and professional

Which of the following would provide coverage for loss of income when an insured rental dwelling is rendered uninhabitable because of a covered loss?

coverage D

All of the following are essential elements of a commercial package policy (CPP) EXCEPT

valuation and or settlement provisions

An insured's 9-year-old son threw a ball, accidentally breaking a neighbor's plate glass window. The insured was found legally liable for the cost of replacing the window. This is an example of

vicarious liability

Which of the following is the most precise synonym for an "admitted" insurer

authorized

an insured has a homeowners policy and is required to be a member of the homeowners association in her neigborhood. the association's community house has burned down, and the insured has been assessed $1200 for her share of the rebuilding cost. How much of the assessment will her homeowners policy pay?

$1000

What is the limit for the forgery or alteration coverage in the businessowners policy?

$2500

A commercial property special form covers property in transit up to

$5,000

What is the basic limit for costs incurred at the place a vehicle is disabled provided by the towing and labor costs endorsement?

$50

An insured has a special form dwelling policy written for $100,000 on a dwelling. The dwelling's replacement cost is $115,000. Fire causes $75,000 in damage to the dwelling, $15,000 damage to a separate garage, and kills 10 trees valued at $600 each. How much will the policy pay for the trees?

5,000????????

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?

A 80% of the property's ACV or more The coinsurance clause states that, in consideration of a reduced rate, the insured agrees to maintain a certain minimum amount of insurance on the insured property. Market value is affected by location. Insurance is designed to pay, in the event of a covered loss, replacement cost minus depreciation.

An insured couple owns a pontoon boat. Which situation would NOT be covered by their watercraft endorsement under their homeowners policy?

A friend rents their boat and runs it into a neighbor's dock.

. All of the following are supplemental payments included in the liability section of a personal auto policy EXCEPT

C Up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident. A personal auto policy does not pay the cost of the release of a vehicle impounded by a law enforcement agency.

. What type of coverage do umbrella policies provide?

Excess coverage over an underlying or primary policy

. An insured's home is mortgaged by the local bank. The insured is required to carry insurance on the home, showing the bank as the mortgagee. If the home is damaged by a covered peril, which of the following is true?

Losses will be paid to the mortgagee and mortgagor as their interest appears.

under section I, homeowners insurance must include

Property??

Which of the following statements is true regarding a mobile equipment endorsement in commercial auto policies?

The endorsement is available for additional premium.

. Which of the following businessowners policy (BOP) endorsements provides coverage for the inability to collect monies due from customers as the result of a covered cause of loss?

accounts recievable

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

Because an agent is using stationery with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe?

apparent

In a dwelling policy, which of the following provides coverage for additional living expenses incurred by an owner-occupant in the event a covered peril makes the pemises uninhabitable due to a total covered loss?

coverage E

Both the broad theft and limited theft endorsements on the dwelling program exclude all of the following types of property EXCEPT

credit cards?

Employment practices liability insurance (EPLI) would NOT cover claims arising from

delibrate law violations

Professional liability coverage protects the insured against legal liability resulting from

error and omissions

What must the insured do if she does not want to obtain uninsured motorist coverage in the same amount as the liability coverage contained within the policy?

exclusion?

An owner of a parking lot wants liability coverage for damage to vehicles while in her custody. She needs

garagekeeps liability

31. 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

insuring agreement

Which of the following terms describes the concept of disrupting the chain of events?

intervening cause

Which of the following terms refers to other insurance that is written on the same risk, but not on the same coverage basis?

nonconcurrency

A situation in which a person can only lose or have no change represents

pure risk

For insurance purposes, when an insured loses property to another because the person used violence or threat of violence to gain the property, this is defined as

robbery

In terms of parties to a contract, which of the following does NOT describe a competent party?

secondary education

The legal process that gives the insurer, after payment of a loss, the right to seek recovery from a third party that was responsible for the loss is known as

subrogation

. A neighbor's tree has fallen into the insured's yard. The insured's homeowners policy will only pay to remove the tree if

the tree is blocking the driveway

. A commercial auto coverage form that is designed for insureds engaged in the business of transporting goods for others is a

truckers coverage form


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