Study
Workers compensation rating is developed by applying a rating bureau job classification rate to each
$100 payroll
maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act
$2,500
any item can be considered an illegal inducement if it is worth more than
$25
The necessary proof of loss claim is submitted to an insurer. Assuming the claim is complete, how long does the insurer have to pay the claim without additional interest?
30 days
volcanic activities would be considered part of one occurrence
72 hrs
sole proprietor
A business owned by one person, NOT MULTIPLE PEOPLE
A builder's risk form is most often written as
Certificate of authority
An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable.
Conditional
compensatory damages will pay for pain and suffering and disfigurement
General
used by individual business owners who use company vehicles for personal use rather than purchasing a personal vehicle
Individual named insured
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
Losses will be paid to the mortgagee and mortgagor as their interest appears.
Obligee
One to whom an obligation is owed.
homeowners endorsements covers liability exposures arising from an incidental business conducted within a building on the residence premises
Permitted incidental occupancies
Who are the parties to a bond?
Principal, Obligee, Surety
participants of a Write Your Own (WYO) flood insurance program
Private insurers that write and service National Flood Insurance policies on a no risk-bearing basis
damages may be awarded by the court to create disincentives that discourage behavior that is deemed highly undesirable by society
Punitive
inland marine coverage condition states that payment of any claim will not reduce the limit of insurance, except in case of a total loss on a scheduled item
Reinstatement of limit
the insurer's claim settlement options does not include
Replacing the property with other property of a lesser kind or quality.
Property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called
Specific coverage.
which of the following is NOT a factor in determining a loss under a dwelling policy
The amount negotiated by the insured
the premium for the dwelling under construction endorsement
The average amount of insurance during construction
occurrence form trigger is based on
The date when injury or damage occurs
Negligence is defined as
The failure to do what a reasonable prudent person would do under given circumstances.
Who is the loss payable on the insured's homeowners policy, under the standard mortgage clause
The loss is payable to the insured and the mortgagee.
business auto coverage form, mobile equipment is covered for liability insurance
When being carried or towed by a covered auto
when a farm structure is vacant for 120 days
contents are reduced by 50%.
Umbrella policy doesn't cover
errors and omissions
Surety
guarantees the obligation will be performed
Insuring agreement
provides information on the policy's coverages. Not a part of policy's conditions
a hired and nonowned auto liability endorsement is available in a businessowners policy (BOP) when
the insured does not have commercial auto coverage
principal
the party that undertakes the obligation
A commercial auto coverage form that is designed for insureds engaged in the business of transporting goods for others is a
truckers coverage form