Xcel Solutions Property & Casualty
BOP endorsement BP 04 57 which states the insurer will protect against loss of business income due to the condition of power interruption originating away from the premises is known as:
Utility Service Time Element
Actual Cash Value (ACV) takes usage of property into consideration when an insurer pays a claim so that the insured becomes whole again after a loss. To restore an insured in this manner is known as:
Indemnity
The statements which follow concerning the Claims Made Coverage Trigger are true, EXCEPT:
The claim can take place anywhere in the world and is not limited to any specific geographic area
Which of the following is NOT true regarding Cargo Insurance?
The coverage extends to the vessel's owner
Which of the following is not true regarding the definition of personal injury in a business owners policy?
The endorsement covers false arrest if it is intentional
What is the automatic limit of Coverage B, Medical Payments in the PAP?
$1,000
According to contents policy limits under the NFIP, the limit for small business losses due to a flood under the regular program is:
$500,000
The actual cash value (ACV) of a set of dishes is $1,000 before several parts of the set are broken, leave a value of only $400. How much will the homeowners policy pay under the Loss to a Pair or Set clause?
$600
A licensee whose name or address changes must notify the Dept of Insurance within _____ days:
30 Days
Which statement regarding the identification of the producer rule is false?
A policy is invalidated if the producer is not identified as required by law
M has opened up his business, Tractors & Semis Sales, LLC. His stock will be covered while it is being transported, if he:
Adds the equipment dealers floater
An insurer operating in the US but headquartered outside the US is:
Alien
Which of the following losses would be covered under section II of a Business Owners Policy?
An insured accidentally slams a shopping cart into a parked car while shopping for business supplies
Under a Homeowners policy, which of the following losses would be covered under Section II?
An insured's 6 year old daughter drivers her motorized toy car into the neighbor's flower bed and causes some damage
All of the following are conditions of a homeowners policy found in BOTH Sections I & II, EXCEPT:
Appraisal
Who of the following would be an example of a dram?
Buddy's Dive Bar & Grill
"Your product" is defined under a BOP as:
Containers that house an insured's real property
Under a Business Auto Policy, the categories of covered autos are found in which part of the contract?
Declarations
H builds a 3 flat building that he will rent out to tenants & is the least fire resistant construction available. Under ISO construction guidelines, H's building would be classified as:
Frame
Which of these is not an Unfair Claims Settlement Practice?
Offering to settle a claim by arbitration
An earned premium resulting from the cancellation of a policy is calculated on:
On a pro rata basis, based on the previous year's rate
The face amount of a Surety bond is called the:
Penalty
What is the best expression of premium determination process for Workers Compensation (X means multiply by)?
Risk factor of a job classification X $100 of payroll = Premium
T caused an accident that caused B injuries that forced him to miss a week of work. The type of damages that B would collect for lost wages are:
Special Damages
Which of the following regarding motor carrier insurance is not true?
Specialized carriers are contracts that will deliver goods when common carriers are unable to meet their delivery time due to a covered peril.
D has a single family home located at a permanent residency. The type of coverage that D has is considered to be:
Specific
Claims settlement practices of insurers are regulated by:
State Insurance Departments
All of the following statements are CORRECT regarding insurable interest, EXCEPT:
The insured must have a speculative risk in the property
All of the following statements are correct regarding Insurable interest EXCEPT:
The insured must have a speculative risk in the property
What is a certificate of authority?
The license required for an insurer to conduct business in the state
Under a DP-2 Broad form, which of the following is not a Broad peril?
Vandalism
Work or operations performed by the insured or materials, parts or equipment furnished in connection with such work is defined as:
Your Work
Assume a CGL has an Aggregate limit of $1,000,000 and a per occurrence limit of $500,000. Three separate accidents during the policy period are brought and each award is for $500,000. How much will the policy pay for the third or final award?
$0
K's 14 year old son has intentionally thrown a baseball through her neighbor's window. Under the damage to property of others clause in Section II of K's Homeowners policy, the amount the insurer will pay for this loss is:
$0
There are three claims under B's Businessowners policy that have triggered the MedPay coverage. L suffered a loss for $5,000, M suffered a loss for $7,000 & N suffered a loss for $10,000. Which is the total amount the insurer will pay under MedPay for the three losses combined?
$15,000
Assume a CGL has an Aggregate limit of $1,000,000 and a per occurrence limit of $500,000. Three separate accidents during the policy period are brought and each award is for $400,000. How much will the policy pay for the third or final award?
$200,000
If an insured's dog bites a guest that results in a settlement amount of $150,000 plus attorney fees of $70,000. How much is the insured personally responsible to pay if their homeowners policy Coverage E amount was $100,000?
$50,000
Farmer D just had a fallen tree damage property on his farm. Under farm owner's coverage, the insurer will pay ___ to remove the fallen tree and debris.
$500
A producer must report to the Director any admin action taken against her by any government agency within:
30 Days
No declination of insurance coverage or termination of a binder can be based on the information from a consumer report after how many days from the application date?
30 Days
According to section I & II of a homeowners policy, for liberalization to take effect, the insurer must broaden coverage within ____ days in order for a policy holder to receive the upgraded benefit of the change.
60 Days
Underwriting guards against
Adverse Selection
If a loss occurs as a result of Domestic Violence by one insured against another the AZ Special Provisions Endorsement:
Allows the insurer to pay the victimized party & subrogate against the perp
Which of the following incidents would not be excluded under a DP-3 policy?
Burglary of a property that was vacant for 30 consecutive days
Collision coverage under Garagekeepers form will not cover:
Burning of the auto during transport
Which one is not an AZ Motor Vehicle minimum coverage requirement?
Coverage may be stacked or accumulated when more than one vehicle is covered
Coverage A in a Dwelling Policy provides all of the following coverages, EXCEPT:
Covers all structures attacked to the dwelling
Which of the following is true regarding contractors equipment floaters?
Portable heavy machinery is covered as it is being transported
An insurable interest is measured by:
The amount of damages the insured might occur
Heartbeat hospital has been sued by a patient for giving the wrong medicine. The insurer of Heartbeat hospital is ready to settle the claim and pay the loss. Which of the following parties must give permission for the insurer to pay the claim?
The insured
Any of the following may be an unfair claims settlement practice EXCEPT:
Refusing to pay persons bringing false or fraudulent claims
Under Part Four of Workers Compensation Policies, which of the following is not included?
Renumeration must be provided
Additional coverages of a Farm owners policy E & F will pay ____ to replace lost farm operations info as a result of a covered cause of loss.
$2,000
A licensed producer who lives in another state & transacts insurance in AZ is called:
A Non-Resident Producer
The AZ Auto Insurance Plan may best be described as:
A plan made up of all auto insurance carriers that provides insurance to individuals who cannot obtain coverage in the voluntary market
What is the best description of an applicant to the AZ auto insurance plan?
An applicant in good-faith entitled to coverage but unable to obtain coverage through ordinary methods
Which of the following are losses excluded under Coverage F?
An individual who is eligible to receive disability insurance
AZ law requires an authorized insurer to issue motor vehicle insurance identification cards. Which statement is false regarding required proof of insurance?
An insurance binder cannot satisfy the proof of insurance requirement
All of the following is CORRECT about Market Value EXCEPT:
An insureds home's valuation is based upon purchase price of the home
Which of the following losses would be covered under ANY crime coverage form?
An insurer provides legal expenses to a company who is suing someone that forged checks
License and permit bonds:
Are required by many municipalities before a contractor can work in an area
Which statement is false regarding the AZ property & casualty insurance guaranty fund?
Assessments are divided into four separate accounts
Which of the following will not provide a premium discount from standard market workers comp insurance?
Assigned Risk Plan
For policyholders in the same risk classification, it is unlawful to:
Charge different premiums
A producer who attempts to intimidate is engaging in:
Coercion
J has a policy that pays a maximum single dollar amount for property damage & death or bodily injury. Which Limit of Liability does J's policy have?
Combined Single Limit
G's band has hit the big time and will be touring the world. The band's manager has called you to make sure that their equipment is covered as they travel. The coverage you will place on G's band for this purpose would be:
Commercial articles floater
J has a policy & wants to know what his rights & duties of the policy will be & what duties & rights the insurer has. J should read the:
Conditions
In cases where the customer is responsible for damage to the shipment instead of the seller & loss will occur, the seller may get sued if losses occur. Therefore, it's best for the seller to have:
Contingency Insurance Policies
Homeowners coverage that provides for loss when the insured dwelling is not habitable due to a covered loss is found in:
Coverage D
How are Coverage D and Coverage E paid in both the Broad and Special forms under the Dwelling Program?
Coverage D & E are paid up to 20% got both combined, not each separately, of the dwelling coverage amount.
All of the following are correct about the Commercial Endorsement regarding Spoilage EXCEPT:
Coverage extends to stock off premises
Under the Individual Named Insured endorsement:
Coverage is added at no extra premium
Which of the following losses are excluded under Coverage E?
Damage to property under the care, custody or control of the insured
M owns a parking garage & has coverage that states: "We will cover losses regardless if you are legally liable for the loss." This no-fault ideology will be found under:
Excess Direct Coverage
Inland Marine forms which have been preapproved for sale by a department of insurance are referred to as:
Filed Forms
Which of the following is NOT an exclusion under Part D, Physical Damage?
Flood Damage
H has just closed on his new home and wants to have his possessions covered on a replacement cost basis. When H calls her agent, the agent explains she must pay extra for an endorsement for such coverage. H's agent must add which of the following endorsements?
HO 04 90
Which of the following homeowners forms will cover structures on an open peril basis but will not cover personal property on a named perils basis?
HO-3
Which of the following Homeowners forms is not named perils coverage?
HO-5
Which of the following homeowner forms pay for loss on a function replacement cost basis?
HO-8
Which of the following homeowner forms pays for loss on a functional replacement cost basis?
HO-8
B has a property policy & would like to know perils that are covered. B should read the:
Insuring Clause
Which of the following statements regarding the mortgage clause is CORRECT?
It gives the morgagee separate rights under the policy
All of the following are main elements of a commercial package policy, EXCEPT:
Liability
Which of the following is found under the definition of a "Breakdown" under the Equipment Breakdown Policy?
Mechanical failure including rupture or bursting caused by centrifugal force
High Rise/Condo building typically have which construction (according to ISO guidelines):
Modified/Semi Fire Resistive
On 12/12, C suffered a loss under her homeowners liability section. On 12/18, she declared bankruptcy. The insurer:
Must cover the loss
Y is running a home daycare out of their home & has just earned $50,000 in her first year of business. Under an HO policy, Y's daycare is defined as:
Not a business
E is a professional musician who owns a vintage guitar with a current value of $20,000. E should properly insure this guitar with a(n):
Personal Articles Floater
The Director may suspend a producer's license when the producer:
Rebates a portion of the commission to the insured
Insurance Producer Kelly offers insured a $500 shopping card if they purchase an insurance product through her. What is this an example of?
Rebating
M owned a factory warehouse that suffered a total loss due to a fire. The insurer discovers that they can scrap some of the metal beams left from the structure to recoup some of their loss paid to the insured. Which method of valuation would allow this to occur?
Salvage Value
Which of the following Garage coverages provides liability coverage to an insured garage owner/operator for the owner's liability arising out of the damage to the auto's of the customer of the business?
Section III, Garagekeepers
Assumption of risk:
States that a party will not collect damages because they should have known what they were doing was risky
Which of the following statements about NFIP deductibles is TRUE?
There is a deductible applied to the building and another to the contents under both the emergency and regular programs
A negligent act that, defined under civil law, is an action recoverable for injuries inflicted upon an innocent party is known as a(n):
Tort
A motor vehivle liability policy must state all of the following in order to remain in effect, except?
Whether the policy has workers comp rider for employees working on the property
Protection and indemnity insurance protects against which of the following losses?
While trying to save damaged cargo, a ship's crew gets repeatedly hit with waves which causes the crew to become ill
An insurance company writing business in a state other than the one in which it is domiciled is called:
a Foreign
