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Property and casualty exam
Terms in this set (271)
what is the term for the amount of a loss thaqt the insured must cover out of his or her own pocket. The insurer will only pay for the additional amount of the loss above this limit?
the pro rata liability clause is designed to protect the principle of
if more than one policy is in force on the same property at the same time covering the same perils
the intent of insurance is that after a loss the insured is restored to the condition he or she was in before the loss
first named insurer
in commercial policies who has the control of the policy
the part of the policy that sets forth the rules of conduct, duties, and obligations of the parties is called the
the section of an insurance policy that details what perils are not insured against and what persons are not insured is known as the
the part of the insurance contract that describes the covered perils, and the nature of coverage of the contractual agreement between the insurer and the insured is called the
which of the following is a mandatory part of an insurance policy that varies with each individual policy
rates that are established based on the similarities of the risk with other risk are known as
tell who, what, when, and where this information is different in each contract.
the policy that pays first in the event of a covered loss or the policy that covers the first layer of loss in a layered program of insurance is known as the
8,000 (pro rata liability applies. Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. Company A carries 1/3 of the total coverage (20,000+40,000=60,000) Therefore it is responsible for 1/3 of the 24,000 loss or 8,000
if a property is covered by company A for 20,000 and Company B covers the same property for 40,000 how much will company A pay of a 24,000 loss?
If a liability policy had split limits 100/300/100 what is the maximum amount that would be payable in the event of injury to a single person?
A. General Liability written with an aggregate limit
Personal Automoblie liability
business auto liability
All of the following policies contain an automatic reinstatement provision which, after a loss is paid, restores the limits of coverage EXCEPT
is reduced by the payment of claims. It is possible for an insured to run out of coverage before the expiration of the policy. These are restored on the anniversary date of the policy.
The coinsurance formula also will be applied to total losses
All of the following statements concerning coinsurance are true Except
A. if the insurance carried is less than required the insurance may not cover the whole loss
B. The coinsurance formula also will be applied to total losses
C. It is used to help adequacy and equity in rates.
D. The insured agrees to maintain insurance equal to some specified percentage of the value of the property.
in the event of a total loss the ? does not operate and the face amount of the policy is paid.
the insured only carried 75 % of the amount of insurance he had agreed to carry (120,000 of the agreed 160,000) so the insurer will pay only 75% of the loss or 30,000. if the insured had carried the required amount of insurance partial losses would be paid in full. in the event of a total loss the face of the policy would be paid. if the full amount is not carried divide the actual amount carried by the amount that should be carried ( the coinsurance amount) and multiply it by the loss.
A insureds building has an actual cash value of 200,000, and he has insured the property for 120,000 with an 80% coinsurance clause. A 40,000 loss occurs. How much will the policy pay.
the property condition that precludes the insured from simply turning over damaged property to the insurer and claiming a total loss is called
until the insurer has determined that the loss is total the insured must protect the property from
what provision in a property policy applies when the insurer broadens coverage but does not increase the premium?
is a clause in an insurance policy that extends broader legislated or regulated coverages to current policies, if they do not affect the premium. A modifying endoresement is not required to add such coverage.
Notify the insured in the event of financial difficulty
Duties of the insurer found in property policy conditinos include all of the following EXCEPT
A. Pay covered losses
B. Provide advance notice of cancellation
C. Return any premiums to the insured
D. Notify the insured in the event of financial difficulty
monitors the financial conditions of insurers. The insurers report to the state not to policyholders.
Replacing the property with other property of a lesser kind or quality
At the time of loss insured against in a property and casualty policy the insurers claim settlement options include all of the following EXCEPT
A. Paying the value of the lost or damaged property
B. replacing the property with other property of a lesser kind or quality
C. paying the cost of repairing or replacing the lost or damaged property.
D. taking all or part of the property at an agreed or appraised value.
pay the value of the lost or damaged property, pay the cost of repairing or replacing the lost or damaged property, take all or part of the property at an agreeed or appraised value, or repair rebuild or replace the property with other property of like kind and quality
at the time of loss the insurers claim settlement options include the following
When joes car was totaled in a recent accident, the ownership of the car was transferred to the insurer. The insurer then sold off joes wrecked car to recover some of the loss it paid to Joe. What is the term for this action?
According to the standard mortgage clause who has the right to bring a suit in their own name to recover damages, pay policy premiums, and submit a proof of loss?
Standard mortgage clause
a basis provision of all property policies for "real" property also ensures that mortgagees have the right to receive prior notice if an insurance policy is to be cancelled.
Effective hour that coverage commences
Which of the following is not included in a binder or temporary contract for a Standard Fire Policy?
A. Policy terms
B. Policy Endorsements
C. Effective hour that coverage commences
D. None of the Above
Will include all the terms of the Standard Fire Policy, with endorsements, except for the clause specifying the hour the insurance will begin.
A standard Fire Policy may be written to cover all of the following EXCEPT
A. Personal Property
B. Commercial Property
D. There are no exceptions
The standard Fire policy will not be used for ? between insurers.
In the case of nonpayment of premium
if it is a commercial property policy
in case of fraud by the insured
Which of the following reasons for nonrenewing an insurance policy allows the insurer to nonrenew with giving notice of their intentions less than 30 days before the expiration date of the policy?
If an insurer decides to nonrenew a commercial policy how much prior notice must be given to the first named insured before the expiration date of the policy?
The named insured
a mortgagee if any
any person shown on the policy having a financial interest in any loss insured against
In the event that an insurance company is going to cancel an insurance policy which of the following must receive written notice of their intent to cancel?
except for the clause specifying the hour the insurance will begin
Binders will include all the terms of the Standard Fire Policy with endorsements, EXCEPT
A commercial policy has been in effect for less than 60 days and is nota renewal policy. if the insurer decides to cancel the policy for any reason other than nonpayment of premium how much notice must it give the first named insurer?
Commercial policy if there reason for cancellation is for non payment of premium notice only need be how many days prior
30 days of receiving a satisfactory proof of loss
Insurers are required to pay the amount of any claim within
The amount of loss plus 50% of the amount or 1,000 whichever is greater
If an insurer fails to pay a claim within the required period after receiving a satisfactory proof of loss the insurer will be penalized
construction class is generally given the most favorable rating for fire insurance.
compared with other drivers in his age group a driver has had more minor accidents and traffic violations. which of the following rating types would most accurately reflect the drivers true insurance risks?
is a self rating plan that uses actual losses to determine premiums. Most accurately refeclts the true insurance costs. Does not depend on risk sharing with other insureds.
Negligence that leads to an injury
Which of the following terms does proximate Cause refer to?
is reasonably foreseeable act or even that results in an injury or damage. Without it the accident would not have happened. Also called direct Liability.
The sections of the insurance policy that details what perils are not insured against and what persons are not insured is knowns as
All of the following are conditions commonly found in the insurance policy except
c. insuring agreement
D. Cancellation and nonrenewal
provides information on the policys coverages.
state the legal obligations and duties of the parties to the contract.
The part of the insurance contract that describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured is called the
one location insured for a specific amount of insurance on the structure and on the contents
Which of the following terms refers to other insurance that is written on the same risk but not on the same coverage basis
Premiums would go down
a contractor who builds homes has never made a claim on his business insurance policy. his agent discovers that his policy is written on a schedule rating. if the contractor changes to an experience rating policy which is most likely?
A statement that earthquake damage is not covered
The declaration of the homeowners policy provides all of the following EXCEPT?
A. Statment that earthquake damage is not covered
B. The amount of premium charged for each coverage
C. The insured Address
D. what deductible amount applies to each loss covered by the policy
Declaration of the Homeowners Policy
provides information as to who is insured, where they are located, when the policy provides coverage, how much coverage and the amount of deductible applied to a loss.
Which of the following policy conditions would automatically broaden coverage under a policy without requiring additional premium?
States that if an insurer changes a policy form to the benfit of the policyholder all policies issued within a certain time before the changes will be interpreted as if they had been changed, provided change does not require additional premium.
Encourage insurance to value
What is the purpose of the coinsurance clause found in property insurance policies>
The insurer agrees to give the insured a reduced rate per hundred on the insurance an pay partial losses in full
In return for the insured promise to insure the property to some certain percent of its value?
for the total amount of a partial loss to be paid a house must be insured for at least 80% of its value on the date of loss. In this case because the house is insured for only 60,000 (75% of the minimum requirement) the policy will pay only 75% of the loss, or 30,000
A 100,000 house insured on a policy with an 80% coinsurance requirement has a fire that caused 40,000 damage, the owner has a policy with 60,000 coverage. How much can the owner collect for his loss?
an apartment complex with more than 10 units
all of the following would be eligible for coverage under the Dwelling policy except
b. an apartment complex with more than 10 units
C. a private residence with 5 boarders
D. A dwelling in the course of construction
4 family units
eligibility requires that the dwelling have not more than ? family units
Animals and Birds
Dwelling policy coverage C personal property will cover all of the following EXCEPT
A. computer software
C. animals and birds
D. Hobby aircraft
removal coverage that is included in the broad form dwelling policy will cover property temporarily removed from the premises to protect it from damage for how long
if the insured is owner occupant of the dwelling
which of the conditions can broad theft coverage be added to a dwelling policy
kinds of property that would be covered under a dwelling policy
which of the following additional perils is covered under both the basic form and broad form dwelling policies?
Which of the following would provide coverage to a garage not attached to the primary insured dwelling
vandalism and malicious mischief would be covered in the insured's premises have been vacant for no more than how many days
Land on which the dwelling is located
Dwelling coverage includes all of the following except
B. Building and outdoor equipment used to service location
C. Land on which the dwelling is located
D. The dwelling used principally for residential purposes
a structure rented to a neighbor for use as a private garage
In a dwelling policy which of the following other structures would be covered
Other structures may not be rented to anyone except a tenant of the main dwelling. This excludes a private garage even if rented to someone other than the occupant of the dwelling
In a dwelling policy which of the following provides coverage for additional living expenses incurred by an owner occupant in the event a covered peril makes the premises uninhabitable due to a covered loss?
Pays additional living expenses incurred following a covered loss.
Which of the following dwelling policies insures a structure on an actual cash value basis
DP-2 and DP-3
insure the structure on a replacement cost basis.
Who is covered by an HO-4 policy?
is a tenant broad form that may not be issued to an owner-occupant.
Relatives any age
would be considered insureds under the liability section of a homeowners policy. only if they are residents of the household.
scheduled personal property endorsement
Which of the following endorsements is used to insure Coverage C (personal property) for values beyond the limitations of the homeowners policy
scheduled personal property endorsement
items that are scheduled under a ? are covered on a valued basis.
The business pursuits endorsement under section II of a homeowners policy covers the activities of the insured. However a business owned by the insured is NOT covered for?
away from the premises.
by endorsement an insured may extend the Section Ii liability coverage to certain business pursuits that occur ?. it would cover activities of the insured but would not cover the liability of a business owned by an insured.
Both are excluded perils in all property policies
Which of the following statements regarding coverage for the flood and earthquake perils is true?
Vancant Farmland owned by the insured
Which of the following would NOT be considered part of the insured location under the liability section of a homeowners policy?
A. A residence where an insured is temporarily residing
B. A family cemetery plot
C. A lakeside cabin rented by the insured for vacation
D. Vacant farmland owned by the insured
Attach the home day care coverage endorsement to the HO policy
If an insured operates a home day care business out of his house how can he ensure the liability exposure coverage?
16,000 This loss would be settled on an ACV basis 20,000 total for the loss minus 4,000 for depreciation Remeber the limitation on loss of jewelry applies to the peril of theft only
An insured has a standard HO-4 policy with a 30,000 limit of coverage for personal property. While he was traveling a fire in his hotel destroys clothes and luggage with a replacement value of 10,000 and jewelry with a replacement value of 10,000. Disregarding any deductible and assuming depreciation of 20% has occured in both properties what amount is the insurer obligated to pay?
Which of the following would NOT be covered by HO liability insurance?
A. Intentional tort
B. Bodily injury
C. First aid expenses
D. property damage
insurance will not cover losses caused by ? of the insured
80,000 a homeowner at the time of loss must be insured for at least 80% of replacement cost in order to collect the full replacement cost of a partial loss
what is the minimum amount of coverage that should be carried on an HO-2 on a home that was purchased four years ago for 75,000 which today has a replacement value of 100,000
the insured camera if it is stolen while the insured is on vacation
personal property coverage under a homeowners policy would cover?
is provided on a worldwide basis.
Homeowners 2000 policy will pay up to ? for grave markers including mausoleums on or away from the premises for loss caused by a peril insured against under Coverage C.
HO will pay up to 2500 for silverware by theft 1500 for boats motors trailers 1500 for loss of trailers not used with boats but no more than ? for coins.
According to the loss payment conditions in HO policies losses must be paid withing how many days or receiving proof of the loss
Which of the following homeowners forms is designed to provide named peril coverage for personal property to individuals who rent an apartment
does not provide insurance coverages under coverages A and B because the insurd does not have an insurable interest in the structure
up to 500
if an insured calls the fire dept to his premises to protect his insured property from a covered peril his HO will pay up to what amount of the fire department service charge
What type of coverage is coverage E in homeowners policies?
fell by covered perils
blocks driveway or handicapped ramp
an insureds policy will pay up to 1000 to remove from premises if a neighbors tree fell by a ? or ? even if no damage to a covered structure has occured
are covered with a special limit of 2500 for the peril of theft the firearm collection no more than 2500 if stolen boats are covered for no more than 1500 for any peril the policy covers the dog is not covered at all
The insured had drained the plumbing system
Losses that result from the freezing of a plumbing system while the dwelling is vacant would be EXCLUDED under a homeowners policy UNLESS?
an oriental rug in an on premise apartment
Which of the following could be covered by a HO policy
HO provides up to ? for a loss of landlords furnishings in an on premises apartment
an insured has a personal property replacement cost endorsement under her HO policy. If an expensive painting and an antique chair are stolen from the insured home what will the insured receive on the claim under that endorsement?
Personal property replacement cost
The ? endorsement excludes property such as art and antiques.
attach the home day care coverage endorsement to the HO policy
if an insured operates a home day care business out of his house how can he ensure the liability exposure coverage
are paid in addition the liability limit
first aid costs for others injured on the insured premises?
landlord furnishings in an on premise apartment
covered up to 2500
Which of the following types of property would be covered in HO coverage forms?
Which of the following homeowners policies covers those who rent their dwelling
the ? of a tenant is covered by the HO-4 policy
property of others
Your HO liability will cover damage to ? even if you are not liable
is a named peril policy and rain is not a covered peril. It would pay the damage caused by the rain if the hole was caused by a covered peril.
severability of insurance
which policy condition in HO policies states that insurance applies seperately to each insured?
Provides open peril coverage for contents
is a named peril coverage for contents
The HO policy form that covers condominium unit owners is
The dwelling insured on HO-2, 3 or 5 forms is covered for replacement provided that it is insured for at least what percentage of replacement cost on the date of loss?
is designed to provide named peril coverage for personal property to individuals who rent an apartment
fire or lightning
Losses would be covered by an unendorsed homeowners policy
are included in the basic perils and in turn included in almost all homeowners policies.
Risks that contain a ? are not eligible for homeowners insurance.
Coverage provides open peril coverage on the dwelling and broad form coverage on personal property
the ACV of what was stolen with limits for certain classes of property
Theft coverage under an HO-8 is restricted to
Coverage A; dwelling
Coverage B; other structures
Coverage C personal property
Coverage D loss of use
Major coverages included in the HO policy
Elaborate homes and those with detailed designs or decorative architecture with replacement costs greater than ACV or market value are insured on
an insured has a homeowners policy and is required to be a member of the homeowners association in her neighborhood. The associations community house has burned down and the insured has been assessed 1200 for her share of the rebuilding costs. How much will her homeowners policy pay?
as an additional coverage homeowners policies will pay up to ? of a loss assessment
all reasonable costs
How much is covered for debris removal under the HO property additional coverages?
The most the policy will pay for tree removal is ?
up to 1000 per occurence
Best describes the amount of loss assessment coverage included under a homeowners policy liability coverage section?
each side selects its own appraiser and the appraisers select an umpire to settle any differences between the appraisers
what procedure may be taken if the insurer and insured do not agree as to the size of a loss?
the difference in the actual cash value as a pair and as a single
contents coverage on a homeowners policy would pay how much after the loss of a pair of golden candlesticks
what is the minumum amount of coverage that should be carried on an HO-2 on a home that was purchased four years ago for 75,000 which today has a replacement value of 100,000
a homeowner at the time of loss must be insured for at least how much percent of replacement cost in order to collect the full replacement cost of a partial loss.
All volcanic eruptions that occur within a ? period will be considered one occurence
sheduled personal property endorsement
if the insured owns a watch valued at 10,000 full coverage can be provideed on a homeowners policy by purchasing the
permitted incidental occupancies
endorsement covers liability exposures arising from an incidental business conducted within a building on the residence premises.
Medical payments to others
Which of the following coverages is included in an unendorsed homeowners policy
With regards to a homeowners policy which coverage provides for indirect or consequential losses
this endorsement provides liability protection for bodily injury or property damage caused by the ownership or use of watercraft. (excluding when used to carry persons for a fee or when rented to others)
no more than the per occurence limit applies no matter how many insured are involved
several insureds have become liable because of a single loss. how will the policys limit of liability be affected.
sudden and accidental rupture of a heating system
Perils is covered by the HO-2 and HO-3
tenant broad form (HO-4)
covers what the insured owns their contents and has no coverage for the apartment
An apartment dweller would insure under which HO?
losses will be paid to the mortgagee and the mortgagor as their interest appears
An insureds 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 which of the following is true
the amount of coverage on the dwelling
the amount an insurer will pay under coverage D (loss of Use) depends on
will pay the expenses incurred to maintain the same lifestyle as before the loss
HO-6 provides limited dwelling coverage as well as contents coverage
The main different between an HO-4 and an HO-6 is
business property while on the residence premises
will cover up to 2500
Homeowners policies provide coverage for
an owner of a parking lot wants liability coverage for damage to vehicles while in her custody. She needs
provides physical damage coverage on customers autos while in the care custody and control of the garage operation
a two ton grain truck with a 6500 pound capacity
an insured owns and operates a ranch. the insured has several vehicles that are used in the ranching operation and for personal use. Which of the following could not be insured under a personal auto policy
A. A two wheeled trailer designed to be towed by the station wagon
B. a farm pick up with 1000 pound capacity
C. A station wagon that is used personally
D. A two ton grain truck with a 6500 pound capacity
is the maximum recommended weight including the weight of the vehicle, fuel and fluids, passengers, and all cargo. cannot exceed 10,000 pounds
whatever coverage applied to the vehicle being replaced
when a replacement auto is acquired during the policy period, what coverage will apply to it automatically under a personal auto policy?
collision and other than collision
__for a newly acquired auto begins on the date the insured becomes the owner. For coverage to apply the company must insure it within 14 days after the insured becomes the owner if the declarations indicate that collision coverage applies to at least one auto covered under the policy. The company must insure it within 4 days after the insured becomes the owner if the declarations do not indicate that collision coverage applies.
when the other party is legally liable but has no insurance
When would uninsured motorists coverage apply?
the other ddriver is at fault but has no coverage
Uninsured motorist coverage would not apply if the insured was at fault it applies only if___
trailer interchange coverage
A trucking business swaps trailers with other carriers. What coverage is necessary to cover loss to the other's trailer while in the borrowers possession?
Louisiana insurance automobile insurance plan
___was established to provide a method of insuring licensed drivers who are unable to purchase auto liability insurance in the voluntary market.
The insureds business income losses due to personal injury
With respect to commercial auto policies the Garage coverage form provides liability protection for all of the following EXCEPT
A. The insureds business products and work performed
B. The insureds business income losses due to personal injury
C. The insureds business premises
D. The insureds business autos
cover personal injury and loss of wages from those injuries.
Vehicles owned by the government are specifically excluded as____
Other than collision (comprehensive coverage)
Which of the following personal auto coverages would pay for damage to a covered auto due to contact with a deer?
The designation symbols used in commercial auto policies can be found in which policy section?
Covered auto of a commercial auto policy explains the designation used in that coverage.
nonowned autos only symbol in business auto coverage
symbol used for any auto
symbol used for owned autos only
symbol is used for specifically described autos only
A pickup or van titled to and used in the named insured's business
With respect to auto insurance the term owned autos included all of the following EXCEPT
A. A pickup or van titled to and used in the named insureds business
B. Any private passenger auto titled to the named insured
C. A pickup or van acquired by the named insured during the policy period
D. Any private passenger auto leased to the named insured for a period of more than 6 months
Vehicles leased to the named insured for periods of 6 months or longer also are classified as owned for insurance purposes.
20 per day; 600 maximum
Toms truck services vehicle is stolen. The policyholder may obtain coverage for transportation expenses subject to which of the following limits?
physical damage section
includes a coverage extension that would pay for substitute transportation up to 20 per day for a maximum of 600 after the theft of a covered auto.
uninsured motorist property damage coverage is subject to a deductible of
The at fault driver in an insured auto crash had the state required minimums for auto liability coverage but not enough to pay for all the damage done to the insured. the driver is?
CGL Coverage B (personal injury and advertising injury)
Will cover inadvertent injury to others caused in the course of advertising the insured's product.
personal injury and advertising injury
___do not cover professional advertisers do not cover intentional injury, and do not guarantee the product will perform as advertised.
HMS toys carries more inventory from October 1 to December 31st. Which of these would provide higher coverage limits during those months and lower limits the rest of the year
Endorsement provides higher limits when needed for a known time period.
____are appropriate for risks whole value fluctuate both up and down throughout the policy period.
3. Interline endorsements
4. Coverage parts
regardless of how the policy is written it will be comprised of the following essential elements
the policyholder can sue the insurer whether or not all conditions and provisions of the policy have been met
All of the following statements concerning liability coverage are true EXCEPT
A. liability policies normally include supplementary payment provisions
B. Liability policies defend the insured against claims real or alleged
C. The policyholder can sue the insurer whether or not all conditions and provisions of the policy have been met
D. The insurer cannot refuse to pay a claim even if the insured is bankrupt
The legal action against the insurer condition
___states that the policyholder cannot sue the insurer unless he or she has met all conditions of the policy
bailees customer policy
Which Inland marine form would provide the best protection for a dry cleaning company against loss or damage to their customers property while in the care, custody, and control of the dry cleaners?
Does not cover property of the insured, but does cover their customers property while in the care of the insured
It may be written on a reporting form or the completed value of the structure
Which of the following statements conerning the builders risk coverage form is correct?
Builders risk insurance
is a property insurance form that provides direct damage coverage on structures while tehy are under construction. Coverage may be written on a completed value form or reporting form.
business propety while on the residence
Homeowners policies provide coverage for
your contents coverage will provide up to a ___for loss of business property on premises.
an owner of a parking lot wants liability coverage for damage to vehicles while in her custody She needs
All accidents at a single location at same time by same cause
Which would be considered a single accident in equipment breakdown coverage
if an accident causes other accidents all related accidents will be treated as ___
A share of the loss
when other insurance is written on the same basis as a commercial policy the obligation of the insurer is to cover
commercial property other insurance provision
States that the insurer will be responsible for only a proportional share of an insured loss when the insured also has other insurance written according to the terms and conditions.
common policy conditions
Regardless of how the policy is written the commercial package policy will be comprised of
building or structure
and supplies within 100 feet of the premises if intended to become a permament part of the building
Property under a builders risk coverage includes?
tools 50 feet away from the building
All of the following types of property are covered by a standard builders risk form EXCEPT
A. Temporary structures
B. Machinery that will be permanently attached to the building
C. TOols 50 feet away from the building
D. the building itself
Farm fences (except field and pasture fences) are covered by which farm coverage form?
The business income coverage form covers consequential loss of business income that occurs when a business must suspend operations becuase of direct loss. Which of the following terms best describes the nature of this type of coverage?
The employee theft crime policy includes a coverage extention that applies to employees temporarily outside the coverage territory for up to?
pay the insurance companys expenses and will not pay expenses incurred by the insured unless incurred at the insurers request
costs incurred in hiring an attorney
All of the following are supplemental payments found in liability policies EXCEPT
A. reasonable expenses incurred by the insured
B. limited amounts for bail bonds and other bonds related to a claim
C. costs incurred in hiring an attorney
D. All expenses of defense costs incurred by the insurer
up to 2000
The cost of restoring farm records is an additional coverage offered under a farm policy how much will the policy pay to restore the records?
during the policy period and for up to 3 years after the termination of the policy
Under the examinations of books and records condition the insuraqnce company has the right to examine and audit the insureds books and records related to the policy
A 6 sotry office building with less than 10,000 square feet total area
Which of the folowing is eligible for a businessowners policy
6 stories high
25,000 square feet mercantile space in apartment building
100,000 sqaure feet for office building
3 million gross sales
Maximum eligibility requirements for a BOP are?
commercial building and business personal property coverage form, basic causes of loss
the causes of loss found in the standard form businessowners policy are identical to the cause of loss found in?
According to the BOP definitions which of the following does not mean valuable papers and records
B.Drawings and maps
if the automatic sprinker system is shut down due to breakage, leakage, freezing or opening of the sprinkler heads the insured had __to restore the system before he or she must notify the insurer.
preservation of policy clause
Under the additional coverages of a BOP property removed to protect it from loss will be covered at another location for up to
Which of the following limits shown in the declarations of a policy applies to medical expenses
combined single limit of insurance
is applicable for all bodily injury and property damage losses that arise from a single occurence. Medical expenses are limited to the per person limit shown on the declarations
following a property loss that is covered under a businessowners policy if the insurer and insured cannot agree on the amount of the loss what method is used to resolve the issue. The appraisers select a disinterested umpire
12 month time limit for business income
Under a businessowners policy a loss of earnings is subject to
the businessowners policy includes business income as an__There is no dollar limit stated only a 12 month time limit following the loss for business income and 60 days following the direct loss for ordinary payroll
duties in event of occurence
claim or suit
legal action against the insurer
seperation of insured
The following conditions apply to the liability coverage in addition to the common policy conditions
In addition to the common policy conditions all the following apply to liability coverage EXCEPT
A. employers liability
B. Seperation of insured
C. Legal action against insurer
yes none of the exclusions will apply
An advertising company has a party for employees customer had to much to drink and involved in auto accidentl. occupants of other car involved sue the company for serving the customer to much alcohol will the companys businessowners policy provide coverage
liquor liability exclusions
applies only to insureds in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages.
Which of the following is NOT an optional coverage available in a BOP?
A. mechanical breakdown
B. Employee dishonesty
C. Workers comp
D. outdoor signs and exterior grade floor glass
A BOP is most similar to?
utility services time element endorsement
Uncle billys burger bar was forced to close for 10 days in august when the power company's transformer was destroyed by lightning and uncle billy was without electricity. which of the following endorsements could be added to billys businessowners policy that would provide protection against loss of income from such events?
An insured is dassitisfied with her insurance policy and wants to negotiate certain provisions of the contract. What entity would her producer represent
cease and desist order
When a producer could be in violation of an insurance law or regulation the commisioner will issue a
The commissioner is elected to a term that lasts for
the minimum fine for violating the insurance code is
if a consumer requests additional information concerning an investigative consumer report how long does the insurer or reporting agency have to comply
within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained
which of the following includes information regarding a persons credit character reputation and habits
an emplyee of an insurer who receives commisions only on a few policies per year
Which must be a licensed as an insurance agent
making comparisons between different policies
Which of the following is NOT considered misrepresentation as it pertains to unfair trade practices
A. exaggerating the benefits provided in the policy
B. Stating that the competitors will arbitrarily increase their premiums each year
C. making comparisons between different policies
D. Stating that the insurance policy is a share of stock
without receiving written consent from an insurance regulatory authority
Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce
cease and desist order
if the commissioner beleives that a producer may be in violation of an insurance law or regulation what may be used?
The limit on controlled business is
must not exceed 25% of a producers transactions
the fair credit reporting act
Which of the following protects consumers against the circulation of inacurrate or obsolete information?
she must be appointed specifically by CGIC
Charla wants to serve as a producer for commissions Galore Insurance company. In addition to obtaining her producers license what else must happen before she can officially transact insurance for CGIC?
A producer has completed 40 hours of continuing education this licensing period. How many credit hours may be carried over to the next licensing period
the obligee may engage another contractor and then seek reimbursement from the surety
Which of the following statements is true concerning a bonded contractor who defaults on a construction performance contract?
a blanket position bond
Which of the following employee fidelity bonds would cover all employees
covers all employees and limits are expressed on a per employee basis
deliberate law violation
Employement practices liability insurance (EPLI) would NOT cover claims arising from?
A. Wrongful termination
C. deliberate law violation
D. Sexual harrassment
private insurers that wish to write and service national flood insurance policies on a no risk bearing basis
Who would participate in a WYO program
is made up of private insurers that write and service national flood insurance policies on a no risk bearing basis through special arrangement with the federal insurance administration.
Which of the following would NOT be considered a flood?
A. Sewer backup
B. Overflow of tidal waters
D. Runoff of surface waters
Boatowners policies like HO policies cover
The regular national flood insurance program would insure an eligible singel family dwelling for up to?
the craft clause
which clause provides coverage for the cargo while being transported to or from a vessel in another craft rail or lighter?
free of particular average clause
which clause under an Open Cargo Policy is most restrictive narrowest form covers total loss only
license and permit bonds
Which bonds guarantee that the recipients of permits will comply with the ordinances associated with the use of such permits
Which bonds may be required when a person appeals to a higher court after a judgement already has been entered to guarantee that ta judgement will be paid
physicians surgeons and dentists malpractice
Which professional liability form provides form coverage for liability arising out of malpractice, error or mistakes made in rendering profesional services?
loss of specie
A shipload of cement has been damaged by water and has become concrete according to general cargo insurance terms in ocean marine policies this is considered
loss of specie
all property so damaged as to cease to be a thing of the kind insured is a ___and payable as a total loss
Section I of a boatowners policy covers?
when cargo is misplaced
According to the principles of ocean marine insurance an actual loss may occur in all of the following situations EXCEPT
A. when all property has been destroyed
B. With loss of specie
C. When insured is irrretrievable of all property even though not destroyed
D. When cargo is misplaced
do not allow private insurers to be licensed to write workers comp coverage
States with monopolistic state workers comp funds?
the insured expects to extend operations to that state
According to the standard workers compensation and employer liability policy form a state should be listed in Part three- other states insurance of the workers compensation and employers liability policy when
by naming a state in __of a workers comp and employer liability policy an employer provides that company operations may be conducted in that state
second injury fund
Which program was established to encourage employers to hire workers who may have suffered previous work related injury that when combined with another injury could be disabled to a greater degree than that of the single injury
its common law defenses against liability suits
If an employer in a state with elective workers compensation laws chooses not be to subject to the states worker compensation laws what does the employer lose?
total permament disability
Wich of the following terms refers to an individuals total inability to work ever again?
A premium discount is the term that describes when an insured owes a total standard premium greater than
an intentional act that is caused by the insured
Employers liability insurance part two of a standard WC&EL policy form excludes?
experience rating plan
If the premium charged for a particular insured is increased or decreased for a future period based on that insureds loss experience for a period in the recent past the policy uses a?
any time without giving notice
the insurer has the right to inspect the workplace at?
federal employees compensation act
Which federal act provides benefits to injured civilians who are employed by the federal government?
Which workers comp conditions states that the first named insured will act on behalf of all insureds under the policy?
situs and status test
In order to be covered by the US longshore and Harbor workers comp act a worker must meet the requirements of the?
a partial premium refund
in a participation plan the insured may be eligible for which of the following?
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