Wrong Questions for Banking and Insuring

Under a DP-2 or DP-3 standardized policy what is the maximum that would be paid for one month for additional living expenses if Coverage A was $75,000?

$1,250

Under additional coverages of the standardized Businessowners policy, how much is the limit for "Pollutant Clean-Up and Removal" if caused by a covered loss?

$10,00 in any 12 month period

A public adjuster in New Jersey has failed to maintain on file with the Department a complete and accurate business address. He/She can be fined up to

$250

How many yards of carpeting would be needed for a 12x12 bedroom?

16 yards

What is a gable roof?

A type of roof containing sloping planes of the same pitch on each side

All of the following are included in the definition of "fungus" under the "Limited Coverage for Fungus, Wet Rot, Dry Rot, and Bacteria additional coverage of the Commercial Property cause of loss forms, EXCEPT:

Algae

All of the following circumstances are included in the definition of "one breakdown" in an equipment breakdown policy EXCEPT:

All breakdowns may be a result of different causes

Which of the following Equipment breakdown coverages applies to direct damage to covered prope

Property Damage Coverage

Earthquake insurance would be an example of:

Property Insurance

Which of the following types of property can NOT be covered under a Commercial Inland Marine form?

Property being manufactured shipped to Europe for sale

The Businessowners policy excludes overage all of the following EXCEPT:

Property of others in the insured's care, custody, or control

Which of the following types of insurance companies must be charge a premium tax to be remitted to the state each time a policy is sold?

Surplus Lines Company

Which of the following property insurance cause of loss forms provides coverage for all risks of loss?

The Special Form

The additional coverage for collapse applies under which of the following Commercial Property Cause of loss forms?

The broad and special forms

A bailee's commercial Inland marine form pays claims to

The customer

Which of the following statements is NOT TRUE of the Builders Risk coverage form?

The form allows for vacancy of 60 days before the coverage will no longer apply

All of the following actions must be taken before a claim settlement will be considered executed except:

When the insurer has approved the adjusters final report

Which of the following is true regarding pure and speculative risks?

With pure risk there is only the possibility of loss

All of the following would be considered an "insured" on a homeowners policy EXCEPT

a non-related tenant living in the insureds residence

The FAIR plan is created in a state

to provide coverage in the residual insurance market of any state that was created to provide insurance to insureds who are "high risk" and cannot obtain insurance in usual market

The provision is an insurance contract that outlines the process of bringing a contract dispute before an objective third party for resolution is known as

Arbitration

If an insurance policy holder would like to use a public adjuster to assist them after a loss, which if the following statements best describes when the public adjuster should be hired?

Before, during, or after a claim has been settled by the insurer

Which of the following statements best describes the process of Mediation?

Both parties present their dispute to a neutral third party, but no decision reached by the mediator is legally binding

Darrin is a claims adjuster that has been assigned to a claim submitted by Samantha. Darrin has asked Samantha to produce some receipts that he will need to process the claim. Samantha promises on May 28th to have copies of those receipts sent to Darrin by June 1st. Which of the following would be the best way for Darrin to remember to follow up with Samantha on June 1st if he has not received the receipts?

Darrin should enter a reminder to follow up with samatha into his diary or suspense system

Which of the following would be an example of a moral hazard?

Embezzlement

Any intentional misinformation provided by an applicant for an insurance policy that would have kept the insurance company from issuing the policy had that information been known is

A material misrepresentation

Which of the following types of investigations would an adjuster undertake to determine if the medical treatment a claimant is receiving is approbate for the injuries

A medical investigation

A standardized Homeowners policy is best described as:

A package policy that provides both property and liability insurance

What is a "board roof"?

A piece of lumber 12" wide by 1' long by 1" thick

Which of the following is NOT a common type of wiring used to in residential construction?

Copper conduit

Samatha is renting an apartment and has just purchased a Homeowners policy using the HO-4 from. Which of the following insurance agreements is not included on Samathas Policy?

Coverage A

The limit of liability under an HO-4 form is based on the primary amount of insurance for

Coverage C

All of the following are property policy additions and/or extensions of coverage that are likely to be amended by state statuary forms, EXCEPT:

Coverage for Property Removed

Andrew Daniels has paid a premium to an insurance company for a Homeowners policy, and the policy was issued. Later, a fire occurred, and Andrew's home suffered damage. In this situation, both Andrew and his insurance company are required to perform certain duties because of an insurance policy is

Executory Contract.

An adjusters report that contains all the facts, evidence, and disposition of the claim and is considered to be the final report is known as the

Full or Formal Report

When is the unit of measurement used when measuring for, purchasing and installing cabinets?

Inches

A method of setting claim reserves based on the claim's circumstances and the claim representative's experience in handling similar claims is known as:

Individual Case Method

A separate limit scheduled "per type of property" on a cause of loss form is known as

Insuring on a specific basis

A disadvantage to using the "formula method" to set claim reserves is:

It does not take into consideration to specific circumstances of a claim

Conrad is a contractor with Builders' Risk coverage written on a reported value basis on his current construction job. He started clearing the land on May 1st, digging the basement on May 13th, pouring the foundation on May 31st, blocking the basement walls on June 5th, flooring the first floor above the basement on June 15th, and constructing the walls of the first floor on June 30th. When did Conrad's Builders' Risk policy begin providing coverage?

June 15th

All of the following situations involve misrepresentation, EXCEPT:

Michael manages an incurance agency and posts the sales numbers of all agents public each month, to promote competition

To be eligible for coverage under the NFIP a building must, must resist all of the following EXCEPT:

Mold

Which of the following public adjuster licensee records are specifically determined to be public records in accordance with NJ state laws?

Name, License number, address and date of birth of the licensee

An agreement between two parties is known as

Offer and Acceptance

Aiden is reimbursed by his insurance company for the cost of a new sofa, after a 10-year old sofa is destroyed by fire. Which of the following best describes the loss settlement method used in this situation?

Replacement Cost

Which of the following best describes the purpose of the insuring agreement contained in an insurance policy?

TO THE insurers promise to pay in case of a loss

When loss settlement under a policy is "agreed value" which of the following is correct?

The insurer will pay the value agreed upon and scheduled in the policy

A Property insurance policy provision that protects the interests of an entity that has extended credit to or leased chattel property to the insured is known as

The loss payable clause

One the renewal date of her existing NFIP policy, the insured selects two additional coverages. Which of the following statements is TRUE about the insureds waiting period before the new additional coverages will take effect?

There is no waiting period

What is the purpose of an Insurance Guaranty Association?

To pay covered claims of admitted insolvent insurers

Which of the following terms is used to describe a contract where the insurance company is the only party to the contract that is legally bound to perform its part of the agreement?

Unilateral

Melinda's insurance policy is cancelled because she has not paid the premium. In this scenario, which of the elements are missing?

Valuable Consideration

At which step in the adjusting process does the adjuster determine "who" or "What" is insured by the policy under which the claim is settled?

Verification of Coverage

Helena has not paid her insurance premium for a significant amount of time. Which of the following is likely to happen in this scenario?

her policy will be cancelled

All of the following statements are true regarding a non waiver agreement EXCEPT:

it is signed only by the insurer