property and casualty practice exam wrong answers
wrong answers on practice exam
Terms in this set (187)
During the preceding calendar year
assessable insurers participate in the FAIR plan and costal plan in proportion to
Producer C uses her license to write uncontrollable business only
Which of the following would not be a violatoin of Louisiana Insurance regulations
purpose of a license
is to primarily write non-controlled business.
10,000 in any 12 month period
The pollutant cleanup and removal coverage in the businessowners policy has a limit of___if the release was caused by a covered loss during the policy period.
on the declarations page of the policy
Where is the policy period stated?
commercial blanket position
Which employee fidelity bond pays no more than its limit of liability for each separate occurrence no matter that several separately identifiable employees were involved in a single loss? has a per occurrence limit meaning it will pay no more for any one loss
Lily is driving her car through a residential area she losses control of the car and crashes into max's front porch. Max who is sitting on the porch is injured. Lilys insurance policy has a limit set at 500,000. This amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does lily have?
is a single dollar limit of liability applying to the total of damages for bodily injury and property damage combined resulting from one accident or occurrence.
lost revenues from the restaurant
A restaurant is out of business for 3 days after Sally's auto hits an electrical pole. the pole falls and hits the building knocking out all electrical power supply. Which of the following is NOT covered under Sally's driver's auto policy?
A. lost revenue from the restaurant
B. Damage to sally's auto
C. Damage to the restaurant
D. Spoilage of foods kept in storage
benefits will be provided if the state was listed on the policy information page
Connor an employee for Marble tile. Inc is injured outside of his home state. How will the workers compensation benefits be determined?
employees must list ___ in which they do business on the policy information page for coverage to apply in those states.
broad form perils
Under the HO-4 and HO-6 homeowners policy forms property is insured against?
HO-4 and HO-6 provide the same level of coverage as ___ in the HO-2 and HO-3.
Insurer examinations must occur no less frequently than every___ or more often if based on the recommendation of the Louisiana Insurance Guaranty Association.
second injury funds programs
Workers compensation statutes require employees to meet capital reserves requirements sufficient to pay any claims that might arise. Employers can meet such obligations through all of the following EXCEPT?
A. Self insurance plans
B. Assigned risk plans
C. compeetitive state funds
D. Second injury funds program
second injury funds
are a method by which employers manage the risks associated with the hiring of previously injured potential employees.
be considered to be null or void
any clause, condition, or provision contained in a fire poilicy contrary to the valued policy law will be__ and have no legal effect
personal auto policy
does not pay the cost of a release of a vehicle impounded by a law enforcement agency.
the broken leg of a guest who fell through a rotted set of steps
COVERAGE E personal liability applies
Which of the following would not be covered as an additional coverage in Section II of a homeowners policy?
A. the broken leg of a guest who fell through a rotted set of steps
B. the insured's reasonable expenses in helping investiage a claim.
C. the insured dropped and broke the neighbors borrowed punch bowl
D. cost of ambulance service for a friend on premises
a temporary license is good for?
injured in an auto accident
in a personal auto policy Coverage C uninsured motorist defines an insured person as any of the following EXCEPT
A. member of the insured being struck as a pedestrian
B. Occupying a covered auto
C. injured in an auto accident
D. MEmber of the named insured
coverage C uninsured underinsured motorist
The term insured includes the named insured and family members any other person while occupying a covered vehicle, and any person entitled to recover damages because of injuries to the named insured or family members (such as parents of a deceased minor).
the limit on silverware is ____
limit on jewelry
limit on money
limit on securities
hired and non owned auto liability endorsement
Which endorsement adds coverage for employee use of automobiles in the insured business and the insured's use of rented autos if no coverage provided on a business auto policy?
hired and non owned auto liability endorsement
coverage is provided for liability arising out of the use or maintenance of a hired or non owned auto. This typically refers to employees use of their personal autos for business purposes.
Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages?
special and general damages
the two classes of compensatory damages that may bee awarded are?
are tangible damages that can be specifically measured in dollar amounts.
this coverage must be written as part of farm coverage
Which of the following statements is NOT true regarding mobile agricultural machinery and equipment coverage?
A. this coverage must be written as part of farm coverage
B. It relates to devices used in the everyday farm operation
C. It covers detached parts and accessories in everyday farm operation
D. in insured eligible equipment for open perils
mobile agriculture machinery and equipment coverage may also be written on a seperate___ policy.
scheduled personal property endorsement
If the insured owns a watch valued at 10,000 full coverage can be provided on a homeowners policy by purchasing the__
The rates for a mobile home policy under the Louisiana Citizens property insurance corporation must exceed, by at least 10% the rates charged among a certain number of insurers with the greatest total written premium for that line of insurance in each parish in the preceding year. How many insurers
if it is any policy besides mobile home the plan would have to exceed by 10% the rates charged among the __ insurers with the greatest total direct written premium in each parish for that line of business in the preceding year.
when an employee benefit plan pays the premium for a fiduciary liability policy what provision must be included in that policy?
a vehicle that is titled to another person but is being used with permission by an insured
with respect to the personal auto policy which of the following vehicles could be classified as a non owned auto?
If the auto is owned and insured by someone other than the operator then that policy will be the___ for that auto and the operators insurance would act as excess.
a commercial policy has been in effect for less than 60 days and is not a 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 insured?
any loans required to offset uncollectible amounts
Which of the following is NOT covered under account receivable coverage form?
A. expenses to reestablish records if possible and collection expenses that are in excess of normal costs
B. any loans to offset uncollectible amounts
C. interest on loans required to offset amount pending payment of the insurance proceeds
D. sums due the insured that are uncollectible due to a covered loss
coverage E additional living expense
An insured house is damaged by a fire and is uninhabitable. As a result the insured has to rent an apartment until repairs are made. A dwelling insurance policy will pay for the expense of renting the apartment. Which type of broad or special form coverage does the insured have?
is a broad form under the dwelling policy that pays for additional living expenses while the insured dwelling is being repaired.
damage to the dwelling caused by ash or dust from a volcanic eruption
Which of the following examples of losses paid under an HO-3 also would be paid under an HO-2 homeowners policy?
open peril basis
An HO-3 covers losses on an___ basis
an HO-2 covers losses on a ___ basis
How long is the waiting period after the application has been accepted before flood coverage goes into effect?
Basic Causes of loss form
under a commerical property policy damage caused by flood, surface water, mudslide, water that backs up from a sewer or drain, or ground surface water that seeps through foundations, basements, doors or windows is not covered.
The crime of forced entry into the premises of another by a person with felonious intent is defined as a
business auto coverage form may apply
a small trucking company stops transporting hay for area farmers and begins to haul hay for its own farm exclusively. In regard to the coverage on its trucks, which of the following is true?
businesses that use their vehicles to carry their own goods are called___ and cannot be covered under the truckers coverage form. must obtain coverage for their trucks through the business auto form or the motor carrier form.
workers comp policy
The association will pay the full amount of any coverage arising out of a ___ policy.
how many hours are required of continuing education in order for a producer to renew his/her license
THe business pursuits endorsement under__ of a homeowners policy covers the activities of he insured.
will pay beyond the expiration date of the policy. It will pay until the business is retored or the limits of coverage are exhausted.
According to the loss payment condition in the HO policies losses must be paid within how many days of the insurer receiving proof of loss?
named peril coverage for death of livestock
The livestock coverage form covers which of the following losses?
is named peril coverage resulting in death or destruction of livestock by basic causes of loss except by vehicles.
the policy would pay up to the occurence limit plus as supplementary payments, the cost of the court and attorney fees over and above the limit
leased mobile rig haulers
motor vehicles used as agricultural or forest vehicles on a highway
vehicles used primarily for exhibits, parades or shows
Which of the following kinds of vehicles are exempt from complying with the Louisiana Motor Vehicle Safety Responsibility Law?
fiduciary liability insurance
a specialized type of insurance that guarantees the faithful performance of a trustee of employee benefit plans is called?
when items are scheduled they are excluded from ___ as insured items and are covered only under the scheduled personal poroperty endorsement.
intentional acts of the employer
employers or depends may sue for damages if they are the result of ___ of the employer.
Coverage E- Personal liability
will respond if a claim is made or a suit is brought against an insured for damages due to bodily injury or property damage caused by an occurence to which the coverage applies.
Coverage A of a farm Policy
Property belonging to a tenant is not covered under____
A temporary license in this state is valid for
coverage A and B only
is for all risk perils
is for the broad form perils
only if the insured does not have commercial auto coverage
An endorsement is available for hired and nonowned auto on BOP liability
An ocean marine adventure is
must be caused by some sudden, unexpected reason. The foundation cracks would take years to cause collapse, meaning there would be plenty of time to find and repair them.
if the insured is owner occupant of the dwelling
Under which of the following conditions can broad theft coverage be added to a dwelling policy?
1000 minus any deductibles
Because the HO-3 covers structures on an open peril basis the insurance company would pay ___ the insured must pay.
Is a personal lines policy and would not be in a commercial package policy.
exposure of a business
A commercial package policy may include coverage ____ but not the personal exposure of the insured.
Medical payments coverage of a personal auto policy coverage does not apply when the insured is occupying a vehicle for fewer than ___.
is the equivalent of a deductible in property insurance.
The excess over the self insured retention
When an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy it usually only pays?
breakage of glass
is included in the DP-2 and DP-3 only
is not available for a producers retirement
medical payment coverage
commercial auto coverage forms do not automatically include ___.(often any person who would occupy the vehicle would be covered under a workers compensation policy.)
motor carrier coverage
can cover anyone who transports goods. because the truckers coverage form does not cover private carriers, the ____ will cover both private and common or contract carriers.
The transfer of money from inside a banking premises to a person other than a messenger outside those premises or to a place outside those premises is covered by _____.
when the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss the coverage is said to be written
stated amount coverage
In ____ the value of the insured property is determined at the time the policy is written. In the event of a loss, that amount is paid without regard to any coinsurance provision. (however if the loss is less than total, the insurer has salvage rights with the insured having first right of refusal of the salvage.)
Events in which a person has both the chance of winning or losing are classified as
which of the following insurance providers would be considered a risk sharing arrangement?
when insurance is obtained through a ____ the insureds are sharing the risk of loss with other subscribers of that reciprocal.
in louisiana automobile insurance is considered to be?
50% of the amount provided as coverage A
Under coverage C of homeowners policy the amount of insurance provided to cover personal property of the insured is
A common exclusion found under physical damage to an auto includes?
written or oral statements made by the applicant that are considered to be true to the best of the applicants knowledge
it is included automatically
when is liability coverage included in a homeowners policy
an insurer has just cancelled an insured's policy. how long does the insurer have to explain this cancellation?
purpose of a stated value contract
the purpose of a ___ contract is to pre establish the amount of coverage available for property items that are difficult to value.
ocean marine and aviation
There are no commercial package policy forms for ___ and none for___.
Crews of ships are covered by ___
is a federal law that provides remedies to seamen who are injured while working on a vessel. It extends the provisions of FELA.
The policy provision found in property insurance policies that prevents the insured from collecting twice for the same loss is called?
the actual cash value of the insured auto or 10,000 whichever is less
Unless the insured has requested uninsured motorist coverage the insurer must provide coverage for damage to the insured auto caused by an uninsured auto in the amount of?
nonpayment of premium
THe insurer must advise the named insured of possible eligibility for coverage through the assigned Risk Plan when an auto policy is canceled for a reason other than___
election and appointment
The Louisiana Guaranty Association Board of Directors are placed in office by
5 and 4
__members of the board are elected from Louisiana insurance companies or member insurers and __ of the board members are appointed by the commissioner and legislature.
When a regular bill of lading is issued who will be responsible for the invoice cost of any damaged property.
An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?
Is the illegal practice of advertising or circulating materials that are untrue, deceptive or misleading
Bob has a personal auto policy with Part C, UM/UIM of 100/300. He is injured by Jennifer who has part A. bodily injury liabilities limits of 50/100. the police determine that Jennifer is at fault for the accident. Bob has 125,000 in medical expenses. How much will Bob's part C, UM/UIM pay?
underinsured motorist coverage
acts as excess over the at fault motorists coverage.
for___coverage there is no coverage provided for autos stored more than 45 days at a location not shown in the declarations.
Dealers Auto symbol
after the revocation period
A producer's license has been revoked a second time for violating the Insurance Code. When can the producer apply for a new license
second injury funds programs
workers compensation statutes require employers to meet capital reserves requirements sufficient to pay any claims that might arise. Employers can meet such obligations through all of the following EXCEPT
A. Assigned risk plans
B. Competitive funds programs
C. Second Injury funds programs
D. Self insurance plans
leakage from fire extinguisher equipment
Which of the following is defined as a covered cause of loss in businessowners property coverage?
drive other car coverage
Employee Jane drives a company auto but does not own a vehicle herself. What endorsement could be added to the insurance policy covering the company auto that would provide coverage to Jane when she drives someone else's car for her personal use?
Medical payments coverage
only provided coverage to the insured and any passengers in the insured's vehicle, Injuries to other persons are coverage by a PAP's liability coverage.
The voluntary compensation endorsement provides statutory coverage for which types of employees?
payment for unnamed perils is reduced by 15 percent
A building with commercial property insurance has been vacant for 90 days? payment for unnamed perils is reduced by ____
__under the age of 30 days are not covered for drowning.
Which of the following symbols is available to an insured with vehicles subject to no-fault coverage?
covers owned autos subject to no fault coverage
bodily injury to a residence employee
Which of the following would be included in the farm liability coverage forms?
Just like HO liability ___ does not pay for injuries of anyone normally at the insured location except residence employees not covered by workers comp.
100 of payroll
Workers compensation rating is developed by applying a rating bureau job classification rate to each__-
motor truck cargo-owners form
A business using its own trucks to move its own cargo would insure the CARGO using
contents are covered open peril on HO-5 and named peril on HO-3
(replacement cost coverage is available only by endorsement to either form)
the difference in the contents coverage on an HO-3 and HO-5 is which of the following?
what is the minimum required number of continuing education credits in ethics every licensing period?
Which of the following liability coverages must be added by endorsement to a homeowners policy in order to apply? and also additional premium is paid
Louisiana Insurance Rating commission
If the Louisiana Citizens Property Insurance Corporation denies an application the applicant may appeal to the?
If an insurer decides to nonrenew a commercial policy, how much prior notice must be given to the first named insured?
the amount of the loss plus 50% of the amount of 1000 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
temporary partial disability
which of the following terms refers to a persons ability to do some work or the need to do alternative work?
anyone while using, with the permission a covered auto owned by the named insured
Would be considered an insured under a business auto coverage form?
business auto coverage
form provides coverage on covered autos while used by the insured or employees of the insured or others using the covered auto with permission, but does not cover the exposure of other autos not owned, hired or leased by the name insured.
When an employee benefit plan pays the premium for a fiduciary liability policy, what provision must be included in that policy
if the __ are paid from the fund the policy must allow for subrogation against the individual trustees involved in any loss.
8AM until 9PM
acccording to the telemarketing sales rules, what are the permssible calling hours for telemarketing calls?
The minimum limits for bodily injury to 2 or more persons injured in a single accident is?
500 is provided automatically and may be increased by endorsement
how much coverage is provided under a homeowners policy for theft or unauthorized use of a credit card?
5 and 4 families
The dwelling policy permits how many roomers or boarders? or how many families?
promote the public welfare
The purpose of insurance regulation is to ___ the publics interest in matters concerning insurance.
the employer regardless of whether it was at fault for the injury or disease
Under the workers comp system who is responsible for the expenses resulting from work-related injuries and occupational diseases?
Part __ of workers comp pays for work related injuries to employees without regard for negligence.
trailer interchange coverage
A trucking business swaps trailers with other carriers. What coverage is necessary to cover loss to the others trailer while in the borrowers possession?
Personal injury protection
can be added by endorsement to liability coverage in a homeowners policy
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.
To comply with requirements for insurance for public liability under the Motor carrier act of 1980 which endorsement is added to motor carrier coverage form?
must be attached to all motor carriers policies under its jurisdiction.
Award for pain and suffering is not compensated under workers comp laws which is called___benefits
the drivers policy
A passenger in a friends car is injured while getting into the car. Which of the following statements would apply if both the passenger and the driver has medical payments coverage under a personal auto policy?
Medical payments coverage
Coverage pays all necessary medical and funeral expenses incurred and services rendered to the insurer or passengers in the insured's vehicle regardless of fault.
value of a loss
is decided according the actual cash value of the property, the policy limit, the amount needed to repair or replace the property or the amount reflective of the insured's interest in the property.
the insurer will be liable for only the insured's interest in the damaged property
If more than one person has an insurable interest in the property covered under a dwelling policy?
providing specific details regarding an occurence
Which of the following would be the insured's duty in the event of a loss according to the duties in the event of occurence, claim or suit condition?
building ordinance or Law
is specifically excluded by the BOP
is a guarantee by the surety that if the principal (contractor) does not perform as promised the surety will pay the obligee any losses. The surety will then attempt to make the principal repay the surety.
limited to covering a servants property while at the insured location
under the dwelling policy, Coverage C, Personal property is
Dwelling coverage C
is limited to covering property owned by a guest or servant while the property is at the insured location.
sound reproduction equipment permanently installed in the covered auto
Which of the following is included under the physical damage coverage of a personal auto policy?
The legal process that gives the insurer, after the payment of a loss, the right to seek recovery from a third party that was responsible for the loss is known as?
the insured person must release the employer and the insurer from further liability
The voluntary compensation endorsement in a workers compensation policy provides that the insurer will pay statutory benefits to the insured person in exchange for what?
12:01 am the day after the application and premium payment are mailed
Johanna purchased a national flood insurance policy 10 days after her community entered an emergency program. When would her coverage be effective?
during the first __ after a community enters the emergency or normal programs, coverage on a flood policy begins at 12:01 am. The day after application and premium payment have been mailed.
An insured with a homeowners policy has removed property from the insured location to protect it from loss that could be caused by a covered peril. The removal coverage applies for
up to 1000 per occurence
Which of the following best describes the amount of loss assessment coverage included under a homeowners policy liability coverage section?
Section II loss assessment coverage
applies to assessments against the insured by a condominium associatoin or other cooperative body of property owners.
purpose of the regulation on aftermarket crash parts
to provide disclosure to consumers regarding the use and costs of those parts.
are paid in addition to the liability limit
First aid costs for others injured on the insured's premises
Unscheduled Farm Personal Property Coverage?
When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforeceable the contract is ___
in the event of a loss covered by the policy if the insurer requests a signed sworn proof of loss the named insured is required to submit it when?
personal floaters policy
covers movable personal property wherever it may be located.
(incurred losses+loss adjusting expense)/ earned premium
Which of the following is the correct formula for computing a loss ratio?
Ro/ro are used to transport
provided that a loss did not result from negligence by the assured the owners or the managers of the vessel additional perils are covered under the?
risk sharing arrangement
bill of lading
a contract for the transport of goods between the shipper and the carrier is called?
An insured condo unit owner wants to purchase fire and extended coverage for personal property and liability coverage for himself and his family members. He should purchase
permitted incidental occupancies
Which of the following homeowners endorsements covers liability exposures arising from an incidental business conducted within a building on the residence premises?
What type of damages may be awarded by the court to create disincentives that discourage behavior that is deemed highly undesiable by society
In a dwelling policy which of the following provides coverage for additional living expenses incurred by an owner occupant in the event a covered makes the premises uninhabitable due to a covered loss?
Theft coverage under an HO-8
Theft coverage under an ___ is restricted to the actual cash value of what was stolen with limits for certain classes of property.
define how parties to the contract must act following a loss.
a uniform bill of ladin
what are common carriers required to issue to every shipper it transports goods for
which type of misrepresentation persuades an insured to his or her detriment to cancel, lapse, or switch policies from one to another
directors and officers liability
Which of the following special liability coverages will provide protection to managers of a corporation for claims arising from a wrongful act commited by the manager while in an official capacity
is for all risk perils
is for the broad form perils
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