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brewer insurance exams

Terms in this set (100)

Debra would like to operate a franchise for a national cosmetics company out of her home. She plans to employ four assistants. Her gross annual receipts are estimated to be about $225,000. Will this be allowable?
A. Yes as long as receipts remain below $250,000 per year.
B. No. Retail and wholesale businesses are not allowed. Allowable types of businesses can have no more than 2 people working at a time.
C. Yes since fewer than 5 employees
D. Yes, since her business involves the sale of personal care products.
B. No. Retail and wholesale businesses are not allowed. Allowable types of businesses can have no more than 2 people working at a time.
If an insured with a BAP has her employees use their personal cars for the business, does she need to endorse the policy so the employees are protected by the BAP?
A. No, employees using their cars are already defined as insureds
B. Yes, if she adds the Drive Other Car endorsement
C. Yes, by adding the Employees as Insureds endorsement
D. Yes, by adding the Hired Autos Specified as Covered Autos You Own endorsement
B. Yes, if she adds the Drive Other Car endorsement
Chad's home suffered severe water damage while he was negotiating its sale. The real estate sales contract had only been signed by Chad at the time the damage occurred. Who will be able to collect insurance to repair this damaged property?
A. Only Chad, the current owner of the property
B. Both Chad and the buyer
C. Only the buyer
D. The buyer and the buyer's mortgage company
C. Only the buyer
To qualify for a Temporary insurance license one must meet all of the following requirements EXCEPT:
A. Be the spouse of an agent who has passed away or has become mentally or physically disabled.
B. Be the representative of an agent who has passed away or has become mentally or physically disabled.
C. Be the representative of the agent who has entered active U.S. Military service.
D. Be an agent who needs a license while they become Continuing Education compliant.
D. Be an agent who needs a license while they become Continuing Education compliant.
All appointment renewal fees are due no later than?
A. September 30th of the odd-numbered years.
B. September 30th.
C. September 30th of the even-numbered years.
D. September 1st of the even numbered years
C. September 30th of the even-numbered years.
Phenomenal Florists is sued for injuries sustained by a customer who was seriously injured in the shop while buying flowers. The claim was settled for $100,000, the limit of liability in Phenomenal's businessowners policy. Legal expenses to defend it totaled $50,000. Since the limit of liability was exhausted in the settlement, must Phenomenal reimburse the insurer for the legal expenses?
A. Yes. The $50,000 for legal expenses or defense costs is subject to the limit of liability, which was exhausted by the settlement.
B. No. Defense costs are paid in addition to the limit of liability.
C. Yes. The businessowners policy does not cover the cost of defense.
D. No. The insurer would rather pay the defense costs to manage the litigation.
B. No. Defense costs are paid in addition to the limit of liability.
Which is true about the workers comp experience modification?
A. The size of claims is the most important.
B. The frequency of claims paid is most important
C. Size of claims paid and frequency of claims filed are equally important.
D. It is based on all claims paid in behalf of all policyholders the previous year.
C. Size of claims paid and frequency of claims filed are equally important.
Because insurance companies and policyholders rely on the honesty and disclosures of the other party when negotiating the sale of insurance policies, what doctrine is said to apply to the insurance contract?
A. Law of Large Numbers
B. Utmost Good Faith
C. Misrepresentation
D. Concealment
B. Utmost Good Faith
Which of the following is considered a Legal Hazard?
A. Flood Coverage.
B. Earthquake Coverage.
C. Uninsured Motorist Coverage.
D. Fire Coverage.
C. Uninsured Motorist Coverage.
Dan died intestate. Judy was appointed by the court to close Dan's estate. Judy must post what bond?
Litigation bond
Fiduciary bond
Fidelity bond
Bail bond
Fiduciary bond
Particles from an accident at the nuclear power station near your house have blown onto your premises. Does your policy cover the damage?
A. As long as there was no explosion
B. Radiation damage is covered
C. If you have Special form coverage
D. No, Nuclear is excluded
D. . No, Nuclear is excluded
Farm Property Coverage G, Other Farm Structures may be covered
A. Only on a blanket basis
B. Either blanket or scheduled
C. Only scheduled
D. Always for full replacement cost
Either blanket or scheduled
Which of the following is not included in the definition of War?
A. Revolution.
B. Civil Commotion.
C. Insurrection.
D. Rebellion.
B. civil commotion
Homeowners policies may insure
A. Houses with up to 4 individual units
B. Single family houses only
C. Houses with no more than 2 units
D. House with a max of 3 units
A. Houses with up to 4 individual units
Nimiroski Motors failed to use a reasonable degree of care in protecting the vehicles parked in its lot overnight. It failed to lock the gate to the fence and turn on the outdoor lights in the lot. As a result, Oscar's car was vandalized. He most likely claimed Nimiroski Motors was guilty of
A. Negligence
B. A crime
C. A civil action
D. Breach of contract
A. Negligence
An insurer cancelling an auto policy for nonpayment of premiums must send how much advance notice?
A. 10 days
B. 15 days
C. 30 days
D. 0 days
B. 15 days
Zahra has an umbrella liability policy with a limit of $1,000,000. Her underlying insurance includes a personal auto policy with a $500,000 limit. Zahra's PAP lapses before she has an auto accident that seriously injures the passengers in both vehicles. The claims for personal injury total $1,000,000. Zahra files a liability claim for $1,000,000 under her umbrella policy. How much, if anything, will the umbrella policy pay?
$1,500,000
$1,000,000
$500,000, the difference between the PAP limit and the total claim
$0, because Zahra allowed her PAP to lapse
$500,000, the difference between the PAP limit and the total claim
The Common Policy Conditions section of the businessowners coverage form is essentially the same as those conditions provisions found in
Homeowners policies
Dwelling policies
Property and casualty policies
Other commercial policies
Other commercial policies
Which is true about the coverage territory for a Businessowners policy?
Worldwide, always
Mexico is included
It includes Guam
The Panama Canal Zone is part of it
It includes Guam
Which of the following is not considered a Hazard?
Physical Hazard.
Morale Hazard.
Moral Hazard.
Tangible Hazard.
Tangible Hazard.
Which bond is sometimes called an honesty bond or maybe dishonesty insurance?
Fidelity bond
Fiduciary bond
Surety bond
US Savings bond
Fidelity bond
Rachel will be renting a ballroom at a local hotel to host an event and wants to be sure her homeowners policy will extend liability coverage for the event. For which of the following events is the ballroom not an 'insured location' and, therefore, liability coverage will not apply?
Rachel's 50th wedding anniversary party
Rachel's wedding reception
The business conference Rachel will host
The birthday party Rachel will host for her sister
The business conference Rachel will host
In order to be licensed as an Insurance Broker the producer must be licensed as which of the following first?
A Life, Accident and Health Producer.
Personal lines Producer.
A Property, Casualty, Surety and Marine producer.
A Commercial Lines Producer.
A Property, Casualty, Surety and Marine producer.
For the Farm Liability Medical Payments to pay, the medical costs must be incurred within how long of the accident?
1 year
2 years
No time limit
3 years
3 years
The owner of Honeyland Farms makes a derogatory comment about Sourland Farms, alluding to its use of unapproved pesticides and inhumane treatment of livestock. Sourland sues Honeyland for defamation. Is there coverage under Honeyland's farm liability policy?
A. not unless the owner was personally defamed.
B. Yes, coverage applies for personal and advertising injury.
C. Only if Honeyland gained some economic advantage.
D. No, because defamation is not considered a bodily injury.
B. Yes, coverage applies for personal and advertising injury.
Volume Hair Stylists is insured under a BOP with policy dates of January 1 of this year to January 1 of next year. How will the policy respond to a liability claim the insured reports on March 3 this year for an injury that occurred on September 21 last year?
A. It will pay it under bodily injury
B. It will pay it under property damage
C. It will not pay it because it was reported more than 30 days after the loss
D. It will not pay it because the loss did not occur within the policy period
D. It will not pay it because the loss did not occur within the policy period
Homer's business owns four vehicles, one of which he uses for business and personal pursuits. Homer does not personally own an auto. What endorsement can Homer add to his business' BAP to provide him with auto liability when using rented or non-owned cars for his own personal use?
A. Drive Other Car Coverage
B. Employees as Insureds
C. Individual Named Insured
D. Hired Autos
A. Drive Other Car Coverage
Ted is shopping for a new auto insurance policy and calls Sara, an independent agent, for advice on what type of policy to buy. Until the underwriter can review Ted's application, Sara issues a written binder to initiate coverage before the policy is issued. Which statement is correct about this written binder in relation to an oral binder?
A. They are essentially the same and have the same effect.
B. A written binder is preferable because it reduces the likelihood of a dispute over terms.
C. An oral binder is preferable because a written binder might limit coverage and contain errors.
D. A written binder is a legal document but an oral binder is not.
B. A written binder is preferable because it reduces the likelihood of a dispute over terms.
Can an auto insurer ever cancel a policy without cause?
A. Yes, if within the first 120 days
B. This is never allowed
C. Within the first 90 days of a newly issued policy
D. Within the first 90 days of a new policy or a renewal
C. Within the first 90 days of a newly issued policy
Spike, the eldest son in the Smith family, has been arrested several times for driving while intoxicated. Other members of the Smith family have clean driving records and present a desirable risk for auto insurance. What provision may be used to insure all drivers in the family except Spike?
A. Personal injury protection
B. Named driver exclusion
C. Extended non-owned coverage
D. Joint ownership coverage
B. Named driver exclusion
While driving in heavy traffic, Sue crashes into the rear of Fred's car. The drivers get out of their cars to exchange information, and Fred tells Sue that she is guilty of negligence. Which of the following is not an element of negligence?
A. Standard of Care - Breached
B. Proximate Cause
C. Intent
D. Damages
C. Intent
An SC auto insurer may cancel a policy without cause
A. At any time
B. Within the first 120 days of a newly issued policy
C. During the first 90 days for a newly issued policy
D. With DOI approval
C. During the first 90 days for a newly issued policy
Bridget purchased a liability policy to protect her against catastrophic liability claims for which she might be legally responsible. What type of policy did she buy?
A. General liability
B. Business auto liability
C. Personal liability
D. Personal umbrella liability
D. Personal umbrella liability
Can a BAP be used to provide liability coverage for mobile equipment operating on public highways?
A. Yes, if mobile equipment subject to compulsory insurance
B. Only if the insured does not have Commercial General Liability coverage
C. Never
D. Only if being towed or hauled by another vehicle
A. Yes, if mobile equipment subject to compulsory insurance
Which of the following statements is true about notice requirements under an automobile insurance policy that is being canceled or nonrenewed?
A. Notification requirements do not apply to cancellations.
B. Notification requirements do not apply to nonrenewals.
C. An insurer determines the number of days to notify the insured.
D. Notification of 15 days is required if the policy is cancelled or nonrenewed.
D. Notification of 15 days is required if the policy is cancelled or nonrenewed.
Farm Personal injury and advertising injury covers all EXCEPT:
A. Wrongful eviction
B. Going into a farmhand's room without permission
C. An advertisement already in use before the start of the policy period
D. Using another farmer's 'The goodness of the Earth in every bite' slogan
C. An advertisement already in use before the start of the policy period
When is the experience modification factor applied to workers compensation policies?
A. At the end of each policy period
B. Once every 3 years
C. At the start of each policy period
D. When ordered by the SC Workers comp commission
C. At the start of each policy period
Daniel has a DP 2 form to insure his house. A windstorm blows off part of the roof, but he does nothing to cover the hole. Two days later, heavy rain causes more damage. Which exclusion in the DP 2 might eliminate coverage for the water damage?
A. Wind and rain exclusion
B. Neglect exclusion
C. Water damage exclusion
D. Intentional loss exclusion
B. Neglect exclusion
Which of the following coverages is not included in the liability section of the homeowners policy?
A. Coverage D, Loss of Use
B. Coverage E, Personal Liability
C. Coverage F, Medical Payments to Others
D. additional coverage that the owner may buy
A. Coverage D, Loss of Use
Which of the following is true about the Loss Cost Rating Method?
A. The Insurance Service Office (ISO) develops the expense and profit factors and the company develops the rating plan.
B. The Insurance Service Office (ISO) develops the rating plan and the company add their own factors such as expenses and profit.
C. The Insurance Service Office (ISO) develops the rating plan and adds other factors such as expenses and profit.
D. The Company develops the rating plan and then adds their own factors such as expenses and profit.
B. The Insurance Service Office (ISO) develops the rating plan and the company add their own factors such as expenses and profit.
Sebastian insures his farm with your agency on a farm policy. He submits a claim because three of his cattle were killed while being transported to auction by a contract carrier. How does Sebastian's farm policy respond to his claim?
A. It pays the claim because livestock is covered for all causes of loss
B. It denies the claim because livestock is not covered when in the custody of a contract carrier
C. It denies the claim because livestock is only covered when located in a barn
D. It pays the claim because livestock is only excluded when being transported by the insured
B. It denies the claim because livestock is not covered when in the custody of a contract carrier
Which of the following are not components of an insurance rate?
A. Loss Costs.
B. Expenses.
C. Lost Costs.
D. Profit Margin.
C. Lost Costs.
In South Carolina how long is an insurance license issued for?
A. 2 years.
B. 4 years.
C. Indefinitely.
D. One decade, then renewed.
C. Indefinitely.
An uninsured, distracted driver crashes into the two cars parked in Kate's driveway. When the driver backs away from the damaged cars, she rips the bumper off Kate's car. The bumper flies through the air and knocks down Kate's fence. What is the proximate cause of the damage to the fence?
A. The car crash
B. The location of the fence
C. The uninsured, distracted driver
D. The bumper
A. The car crash
During the rating process the underwriter is determining the correct rate to charge the insured by using a rating method that considers something other than the insured's own past loss experience, such as the insured's driving record with the Department of Motor Vehicles. What rating method is the underwriter using?
A. Experience Rating
B. Scheduled Rating
C. Merit Rating
D. Judgment Rating
C. Merit Rating
In South Carolina, a 5% premium discount on workers comp is available for employers
A. Who also purchase their CGL from the same insurer.
B. Who have filed no claims for the last 36 months.
C. Who have no more than three operating locations
D. Who comply with a drug free work place program.
D. Who comply with a drug free work place program.
What are the Sections of a homeowners policy?
A. Section I ' Liability and Section II' Property
B. Section I ' Property and Section II - Liability
C. Section I ' Property, Section II ' Liability, and Section III ' Common Policy Conditions
D. Section I ' Liability and Section II ' Med Pay
B. Section I ' Property and Section II - Liability
Which of the following is not a condition for licensing an insurance agency as a producer in South Carolina?
A. payment of required fees
B. activities remain within the scope of the agency's purposes
C. appointment of a person responsible for complying with state laws
D. filing the agency's articles of incorporation with the Insurance Director
D. filing the agency's articles of incorporation with the Insurance Director
When Beverly is driving to town to run some errands, she is texting and accidentally runs a stop sign and hits another car. She could be found negligent because of which of the following?
A. She had other things on her mind.
B. She did not see the stop sign.
C. The other person did not yield to her.
D. She had a Legal Duty to stop.
She had a Legal Duty to stop.
Which of the following would be allowed by your HO policy?
A. Rental of a back yard structure to a friend for teaching karate lessons
B. Renting your detached garage to a neighbor for storing nonbusiness personal property
C. Rental of your garage to a neighbor for business property storage
D. You run an auto detailing shop in the back yard
B. Renting your detached garage to a neighbor for storing nonbusiness personal property
Luther is a farmer with cattle, sheep and goats. Some cows break through a fence on the property and reach a nearby highway, where one is struck by a vehicle and killed. How would the farm livestock form address the death of the cow?
A. It will not cover loss to escaped livestock
B. Explosion with a vehicle
C. Riot or civil commotion
D. Collision
D. Collision
What is a false statement of material fact?
A. Material Misrepresentation
B. Representation
C. Concealment
D. Promise
A. Material Misrepresentation
The river overflowed and Wilma's basement has four feet of water in it. Unfortunately, her flood insurer isn't paying her claim for damage because it says the occurrence doesn't meet the definition of 'flood' in her policy. Which of the following occurrences DOES meet the definition of 'flood'?
A. Water sweeps Wilma's house off its foundation
B. Water fills the first floor of Wilma's house
C. Water inundates one acre of Wilma's land
D. Water inundates all of Wilma's land and all of her next-door neighbor's land
D. Water inundates all of Wilma's land and all of her next-door neighbor's land
Which of these is covered by farm liability coverage?
A. The mule broke loose and injured a spectator while in a strength contest at the fair
B. A child fell out of the pony cart at the Sunday school picnic
C. The racing pig jumped off the track and hurt someone
D. The goats got into the road causing a car crash
D. The goats got into the road causing a car crash
Three businesses; a men's clothing store, a ladies' clothing store, and a logger have annual payrolls within $100 of each other. Are their workers comp premiums about the same?
A. Yes, since their annual payrolls are the same.
B. The logger pays more since it is a more risky business
C. The women's store pays more since women are more aggressive shoppers
D. It depends on any past claims filed.
B. The logger pays more since it is a more risky business
Morgan Transportation is in the business of transporting cargo by truck. It will haul anybody's cargo that will pay. Which of the following terms most accurately describes Morgan Transportation?
A. Private carrier
B. Common carrier
C. Trucker
D. Commercial motor vehicle
B. Common carrier
Which is not covered by your E&O?
A. Damage to a customer to whom you sold bad advice
B. Poor service caused a client's loss
C. Improper research on your part resulting in the wrong type policy being sold to a customer
D. A client hurt by tripping of a loose throw rug in your office
D. A client hurt by tripping of a loose throw rug in your office
How often is an insurance license to be renewed?
A. Biennially.
B. Semi-Annually.
C. Annually.
D. Biannually.
A. Biennially.
Patrick purchases a certain type of bond because he believes his office manager and bookkeeper, Mrs. Quintall, will not be dishonest. What type of bond does he buy?
A. Surety bond
B. Public official bond
C. Fidelity bond
D. Permit bond
C. Fidelity bond
A state ordinance prohibits trucks carrying hazardous materials from using Highway 84, a known hazardous road where appropriate notices are posted. Jonas carefully drives his truck on Highway 84 while loaded with dynamite. He does everything he can to avoid an accident or injury from his cargo. If damage or injury results from Jonas' actions, what might Jones be guilty of and be held liable for his actions?
A. Carelessness
B. Negligence
C.Violating company Safety Rules
D. Strict Liability
B. Negligence
Ned just bought a homeowner's policy from Main Street Insurance Company. However, he did not disclose that he operated a lawn mower repair business in his garage and that he employed two mechanics. He also did not disclose that one employee was injured three weeks ago. On what grounds might the insurer deny coverage in the event of a claim?
A. Warranty violation
B. Waiver and estoppel
C. Concealment.
D. Failure to indemnify
C. Concealment.
Rosario owns and operates a coffee shop and bakery. A rack of baked goods collapses and seriously injures two customers, Penny and Lilly. Penny's medical expenses are $3,500 and Lilly's medical expenses are $6,500. Rosario's BOP has a per person medical expenses limit of $5,000. What is the total amount paid under the BOP's medical expenses coverage for these losses?
A. $10,000
B. $8,500
C.$5,000
D. $0
B. $8,500
After 90 days, an auto insurer can cancel for which reason?
A. The insured just got their 5Th speeding ticket this policy period
B. The insured has been at fault in a crash for the 3rd time
C. The insured just had their 75th birthday
D. A principal driver's license has been revoked
D. A principal driver's license has been revoked
Kent stated on his application for property insurance that the roof of the building being insured had been recently replaced. In fact, the replacement occurred 12 years ago. Kent intentionally made a false statement of a material fact hoping to get a lower premium, which is also known as a(n)
A. Fraud
B. Concealment
C. Misrepresentation
D. Example of bad faith
A. Fraud
Which of the following does not constitute an insurance transaction?
A. soliciting insurance
B. mailing an insurance contract
C. negotiating an insurance contract
D. sale of an insurance contract
B. mailing an insurance contract
Billy is hosting a Super Bowl Party at his home. After the last second win by their favorite team some of his guests begin a raucous celebration and as Billy celebrated, he sprayed the champagne over everything in the room, causing serious damage to his new 80 inch Ultra-Hi-Definition Television. He files a claim and the insurer denies the coverage under which of the following reasons?
A. Vandalism.
B. Inherent Vice.
C. Excessive Celebration.
D. Intentional Loss.
D. Intentional Loss.
Cecelia has been restoring a piece of furniture her mother gave her. Because she did not read the directions and stores the polyurethane improperly this could result in a fire. What type of hazard would Cecelia's action represent?
A. Physical.
B. Morale.
C. Moral.
D. Tangible.
B. Morale.
Which is not considered your product for liability purposes?
A. Something you handled
B. Anything you disposed of
C. The package containing your product
D. The truck carrying your product for sale
D. The truck carrying your product for sale
Can a mobile home be insured on a HO policy?
A. Never
B. If secured to the ground on land owned or leased by the insured
C. Only if the wheels are still attached
D. Only if it is tied down on a rented spot in a commercial trailer park
B. If secured to the ground on land owned or leased by the insured
All of the following are eligibility requirements for a homeowners policy EXCEPT:
A. No more than 4 individual living units.
B. No more than 2 roomers or boarders per family
C. The insured must live there.
D. The insured must own the house.
D. The insured must own the house.
Mrs. Zabinski's homeowners policy is written on a form HO-6, Condominium Unit-Owners Form. In what type of home does Mrs. Zabinski live?
A. An apartment
B. A condominium unit or townhome
C. A home she owns
D. A home she rents
B. A condominium unit or townhome
A company that only provides truck transportation for its own cargo is known as what type of carrier?
A. Common carrier
B. Private carrier
C. For-hire carrier
D. Trucker
B. Private carrier
Who is not an insured under farm liability?
A. The farmer's cousin visiting from Atlanta
B. The farmhand in the dairy barn
C. The farmer's wife
D. The farmer's friend who volunteers to help pick the peaches
A. The farmer's cousin visiting from Atlanta
Which of the following is not included in the definition of Nuclear Hazard?
A. Nuclear Reaction.
B. Nuclear Radiation.
C. Nuclear Redaction.
D. Radioactive Contamination.
C. Nuclear Redaction.
Which of the following is not a requirement to get a Non-Resident Producers License?
A. Take an insurance exam in South Carolina.
B. Be licensed in your home state.
C. be licensed in the same line of authority for which you are applying.
D. Your home state must reciprocate with the South Carolina Department of Insurance.
A. Take an insurance exam in South Carolina.
An insurance Broker represents the following according to SC insurance law?
A. the insurer.
B. the citizens.
C. the carrier.
D. the agency.
B. the citizens.
An insurance producer license is issued for what period of time?
A. 2 Years.
B. Biennially.
C. Biannually.
D. Indefinite Period of time.
D. Indefinite Period of time.
Is it allowed for you or your tenant to store business property in your back yard building?
A. Yes
B. You may but your tenant may not
C. No. The building may not be used for any commercial purpose
D. Yes, but only with a special endorsement
A. Yes
Rachel truly thought she explained a client's policy correctly. Despite her best efforts, however, she made a mistake and the client is suing the insurance agency for whom Rachel works. What kind of insurance policy does Rachel's employer have that will protect against Rachel's professional mistake?
A. General liability
B. Errors and omissions (E&O)
C. Workers compensation
D. Directors and officers (D&O)
B. Errors and omissions (E&O)
During a deposition in a law office, a witness loses her temper and throws several objects at the attorneys and the court reporter present. One of the attorneys wrestles the witness to the floor and subdues her. The witness later brings suit against the firm and the attorney, claiming that he used excessive force to restrain her and thus injured her. The firm's businessowners policy (BOP) will probably
A. cover the loss as it arose from the reasonable use of force to protect people or property
B. exclude the loss as it is not related to professional liability
C. exclude the loss as it is not related to property damage
D. cover the loss as it is related to personal and advertising injury
A. cover the loss as it arose from the reasonable use of force to protect people or property
A fiduciary bond guarantees what?
A. The defendant will show up in court when required
B. A contract will be completed as required
C. Money embezzled by a teller is paid back to the bank
D. Faithfull performance of duties for those placed in a position of trust by the court
D. Faithfull performance of duties for those placed in a position of trust by the court
When a Non-Resident Producer moves from one state to another or to South Carolina when must he notify he Department of Insurance of the address change?
A. Within 30 days of receiving a new driver's license indicating the new address in South Carolina.
B. Within 30 days of the license renewal date.
C. Within 30 days of the change of address.
D. As soon as possible.
C. Within 30 days of the change of address.
If you would like for "Family members" to be "insureds" for any covered "auto" you own of the "private passenger type" on your BAP, you should do what?
A. Nothing; family members are automatically considered insureds on the BAP.
B. Add an individual named insured endorsement.
C. Add the drive other car endorsement
D. Add the loaned auto endorsement
B. Add an individual named insured endorsement.
When you suggest to Ned that he purchase a commercial umbrella policy for the protection of his business, which of the following do you emphasize?
A. Commercial umbrella coverage is free
B. Commercial umbrella coverage can be added to his business auto policy
C. Commercial umbrella coverage provides a broader scope of coverage
D. Commercial umbrella coverage replaces his CGL policy
C. Commercial umbrella coverage provides a broader scope of coverage
Private Carriers insure their truck with
A. Motor Carrier coverage form
B. Truckers or Motor Carrier coverage form
C. Either Truckers or Motor Carrier coverage
D. Business Auto form
A. Motor Carrier coverage form
Two of the same type businesses with the same size annual payroll operate side by side. One has not filed any workers comp claims for years. The other has filed several a year for several years. How do their workers comp premiums compare?
A. The same since loss experience and will not affect the premium.
B. The one with the claims pays less
C. It depends on an underwriter decision
D. The one with the claims pays more.
D. The one with the claims pays more.
What type of property is moveable and not permanently attached to the land?
A. Non-permanent Property.
B. Personal Property.
C. Real Property.
D. Un-attached Property.
B. Personal Property.
Common and contract carriers will insure with which policy form?
A. A Business Auto form
B. Trucker Coverage
C. Motor Carrier coverage
D. Either Truckers or Motor Carrier
D. Either Truckers or Motor Carrier
A cancellation or nonrenewal notice must state the date upon which the cancellation or nonrenewal becomes effective. This date must be not less than how many days after the mailing or delivery date?
A. 5 days
B. 10 days
C. 15 days
D. 20 days
C. 15 days
If an insurance producer is licensed in his home state as a Property, Casualty, Surety and Marine Producer, which of the following must he do to be licensed in South Carolina?
A. Apply for a Life, Accident & Health license.
B. Apply for license in the line(s) of authority for which is licensed in his home state.
C. Be in the insurance business for 2 years.
D. Take the South Carolina insurance exam for line of authority he wants to be licensed to do business.
B. Apply for license in the line(s) of authority for which is licensed in his home state.
When she applied for auto insurance, Delphia's agent asked if she'd ever had any at-fault accidents or traffic violation convictions. Delphia avoids answering the question by pretending to be sick and suddenly leaving the office. When the insurer learns about the DUI citation, how will it view Delphia's withholding of information?
A. As a representation
B. As a warranty
C. As a concealment
D. As an innocent misunderstanding
C. As a concealment
Cecelia has been restoring a piece of furniture her mother gave her. If she does not read the directions and stores the polyurethane improperly this could result in a fire. What type of hazard is the polyurethane?
A. Physical.
B. Morale.
C. Moral.
D. Tangible.
A. Physical.
Whenever it rained, the roof of Jada's home leaked. Although she intended to repair the roof, she never got around to it. A heavy rainstorm exacerbated the leakage problem and damaged furniture in her home. She filed a claim with her insurer and it was denied. The insurer based its denial on which exclusion in the DP 3 policy?
A. Water damage exclusion
B. Neglect exclusion
C. Intentional loss exclusion
D. Earth movement exclusion
B. Neglect exclusion
The farm liability form combines?
A. Premises liability with mobile equipment liability
B. Operations liability with auto liability
C. Personal liability and CGL
D. Completed operations liability with personal liability
C. Personal liability and CGL
Slander, liable, false arrest, malicious prosecution, infringing on another's copyright could be covered by?
A. Property injury liability
B. Bodily injury
C. The farmer's bank account
D. Personal injury and advertising injury liability
D. Personal injury and advertising injury liability
Mr. Harrell's homeowners policy includes specific liability definitions for injury or damage caused by the ownership or use of certain types of property. Which of the following types of property does not contain a specific liability definition?
A. Aircraft
B. Watercraft
C. Motor vehicle
D. Animals
D. Animals
When Yvette meets with you to buy a homeowners policy, she attempts to negotiate the terms of the contract. You tell her the terms are not negotiable and she must either purchase the policy and comply with its terms or decline to purchase the policy. You are explaining what type of contract to Yvette?
A. Contract of adhesion
B. Aleatory contract
C. Bilateral contract
D. Contract of admission
A. Contract of adhesion
When Beverly is driving to town to run some errands, she is texting and accidentally runs a stop sign and hits another car. She could be found negligent and required to pay for the repair of the car she hit because of which of the following?
A. She had other things on her mind.
B. She did not see the stop sign.
C. The other person did not yield to her.
D. There was actual loss or damage.
D. There was actual loss or damage.
If you would like for your employees to be covered by your business auto form when using an auto you don't own, hire, or borrow, use which endorsement?
A. Employees As Insureds
B. Individual Named Insured
C. Hired Auto
D. Drive Other Car
D. Drive Other Car
Which is true about auto medical payments coverage on a business auto policy?
A. Included as part B of the policy
B. Med pay is not available for a BAP
C. Covers the insured and employees in any auto
D. May be added with an endorsement
D. May be added with an endorsement
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