Requiring the policyholder to carry insurance to value.
Which of the following best meets the test of the "Principle of Indemnity"?
The Fair Plan offers what kind of coverage for individuals and businesses in high hazard areas?
An agent who collects premiums and converts those premiums to his own personal use is guilty of:
Which of the following terms describes what is subtracted from a claim payment to the insured?
Parol Evidence rule
Oral discussion prior to the development of a written contract can not be used to extend the terms of the final document. This because of the:
The main difference between a claims made liability coverage and an occurence for liability coverage is:
A claim by the mortgagee can be denied.
An insured hires someone to burn his home. The insurance company can prove this fact. All of the following are true except:
The insured building is vacant for over 60 days.
Coverage against loss by some perils (vandalism, theft, etc.) under the Building and Personal Property Coverage form is suspended if:
A 15 year old dwelling valued at $100,000 is insured for $60,000 on an HO-3 with an HO-15 encorsement. A $250 deductible applies. If the insured had a $10,000 loss, how much would he be paid?
Professional Liability is used in lieu of General Liability
All of the following are true about Professional Liability except:
Damages caused by products after their sale.
Which of the following exposures is covered under the basic Commercial General Liability policy?
Because the exact terms of an insurance policy are not the subject of negotiation with the companym the contract of insurance is said to be:
The Zone Exam
The kind of examination performed of a foreign insurer for the benefit of all licensing states is called:
Short Rate Basis
When an insurance policy is cancelled by the insured, the premium is usually refunded on a:
An Alien Company, Admitted Insurer, and Stock
A company licensed in Arkansas, incorporated in Argentina, and owned by investors, who may or not be the policyholders is called:
Replacement cost less depreciation:
Actual cash value is most often defined as which of the following options?
An auto rented by an insured when the insured's car is in a garage for repairs.
Which of the following vehicles is considered a temporary substitute under a Personal (Family) Auto Policy?
Giving something of value as an inducement to buy a policy, other than the policy itself is called:
It only applies to total loss of the building.
Which statement is correct concerning the Arkansas Valued Policy Law?
Premises Liability; Bailee Coverage; Physical damage covered for the insured's vehicle
The garage liability coverage form of the CPP may provide coverage for all of these.
A fine of $60 to $1000 and/or your license
A general penalty for violating the state insurance code is:
A direct loss.
A fire in an insured's restaurant burns the kitchen walls and causes smoke damage to the entire interior. Water used to extinguish the fire causes extensive damage to the floors and furnishings. The water damage is BEST described as:
Making new insurance laws.
All of the following are among the powers and duties of the Insurance Commissioner except:
After an insurance agent's property/casualty license is issued, a licensee must complete how many hours of approved continuing educatoin courses every two years?
The insured runs over a caddy with his golf mobile.
Which of the following losses would be covered by Comprehensive Personal Liability?
Which of the following liability coverages may require the insured's consent before the insurance comnpany settles and pays a loss?
$25,000 bodily injury for each person, $50,000 bodily injury for each accident, $25,000 property damage per accident.
Automobile limits of liability expressed as $25,000/$50,000/$25,000 means:
Coverage for hired autos.
Which of the following endorsements would insure trucks which have been temporarily leased by the insured's house painting business?
A faulty toaster manufactured by the insured sets fire to a consumer's home.
Which of the following would be covered by a C.G.L. policy?
Claims made coverage is not offered for Professional Liability.
Which of the following is not true about the claims made liability form?
Under the physical damage portion of the personal auto policy, transportation expnses are provided if the insured's car is:
A building which has been vacant for 2-1/2 months is vandalized.
Which of the following losses is not covered by the Vandalism and Malicious Mischief endorsement?
Which condition of a Commercial Package Policy may broaden the insured's coverage, if the company develops a newer policy form?
The insured while driving his own auto on the company business.
Which of the following would not be eligible for auto medical payments coverage?
A Certificate of Authority
The document permitting an insurer to transact insurance in Arkansas is known as:
A 1/2 ton pickup used by a farmer.
Which of the following are eligible for coverage under the Personal Auto Policy?
Extended Non-Ownership Liability
A sales person is furnished a vehicle from the office motor pool on a regular basis. Which auto policy endorsement is recommended?
Goods stolen by someone gaining entrance to the premises after closing hours by sneaking through an unlocked window.
The Premises Burglary coverage form will cover all of the following except:
Licensed local agents, who represent the Federal Flood Insurance Program.
Flood insurance may only be purchased through:
Which of the following coverages would be BEST suited for a prospective insured who wants coverage against liability assumed by written and oral agreements?
Fred Jones Trucking buys a Theft, Disappearance and Destruction coverage form in the amount of $25,000. Fred discovers that the dock foreman and two truckers have conspired to steal $55,000 over a period of time. How much will be paid?
Theft of a $10,000 gun collection.
An insured has an HO 3 with no special endorsements. Which of the following losses would not be covered in full?
A voluntary action to rid the ship of cargo to prevent further peril.
In Ocean Marine Insurance, jettison is:
Loss to CB radio equipment which is not permanently installed.
Under a personal auto policy, which of the following types of physical damage loss is not covered?
A policy providing very broad coverage for dealers, whether the property is on the premises, being transported, or temporarily being tried by customer is known as:
The following classes are exempt from the compulsory Worker's Comensation requirement except:
For life, unless they marry.
The spouse of an employee, who was killed in a job related accident is entitled to payments:
The Federal Emplooyer's Liability Act
Workers Compensation coverage for persons involved in interstate transportation, such as railroad workers, comes under:
An employee injured while performing an operation for which he had not yet been trained.
Which of the following workers is likely to have a valid Workers Compensation claim?
All of the following may be insured under a builders risk coverage form except:
The named insured loans the plane to another pilot, who crashes the plane during a thunderstorm.
Which of the following losses would not be covered under the Hull Coverage of an Aviation Insurance policy?
A company's promise to pay for damage caused by or resulting from any covered Cause of Loss would be found in which of the following sections of a Commercial Property Policy?
A passenger in an automobile; getting into an automobile; walking across the street.
Automobile medical payments coverage applies when an insured person is injured while:
Auto dealers and body repair shops; Machinery and implement dealers and storage garages; service stations and public parking places.
Which of the following are eligible to buy garage liability insurance?
Professional liability coverages.
Which of the following is NOT eligible to be included in the Commercial Package Policy?
A large steel manufacturer.
Which of the following would not be eligible to purchase credit insurance?
Breakage of a plate glass window by vandals.
A dwelling policy with the V&MM endorsement attached does not cover which of the following:
Under a Crop Hail Policy, the term and coverage may not be written as which of the following?
The Inchmaree Clause.
The Ocean Marine Policy endorsement that provides coverage for neglect of the crew to maintain equipment is: