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All of the following are not examples of insurable risk situations, except:
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Terms in this set (86)
if there is a failure to display even a minimal degree of care that should and could be expected of a prudent person, accompanied by a total disregard for the safety of others it is known as which type of negligence?GrossTen years ago the insured purchased furniture for $9,000. Two weeks ago the furniture was totally destroyed in a fire. Estimates show that the furniture had depreciated by $6,000. The actual cash value of the destroyed furniture, assuming that the furniture would cost $11,000 to replace at current prices, is:$5,000One of the purposes of coinsurance is to:Encourage the insured to carry a reasonable amount of insurance to valueIf the proper amount of coinsurance is maintained, which of the following formulas will be used to calculate the amount paid in the event of a loss?Insurance amount carried divided by the amount required times the loss minus the deductibleAn insured with a Homeowners Policy has rented an automobile in Ireland. Which of the following amounts of coverage apply to the insured's personal property while it is in the rental vehicle?100% of the property limitWhat type of coverage does a comprehensive Personal Liability Policy extend under Section II of a Homeowners Policy?The premises described in the policy combined with on or off premises personal activities of the insured"All-risk" coverage. also referred to as "special peril" cove1·age ls p1·ovided for real and personal property by which of tile following types of policies?H03 with an H015 endorsement attachedUnder an HO3 policy, how is coverage for jewelry, furs and watches provided?Lower sublimit amount, but only for the peril of theftIn an HO3 and HO8 Homeowners Policy, which two categories of coverages are identical?Personal liability and medical paymentsStan's young son accidentally releases the brake on the family car causing it to roll down the driveway across the street and then strikes the neighbors vehicle causing $1,800 damage to it. Will Stan's Personal Auto Policy pay for the damage, and if so which part will cover the loss?Yes, the loss will be co,1ered under the property damage liability section of Stan's policyAccidents that occur which of the following places are covered under a Personal Auto Policy?AlaskaAn auto insurer must provide which of the following to an insured?All of these are applicablePersonal Auto policies can be cancelled by an insurance company under which of the following circumstances?The driver's license of the person who normally drives the vehicle has been suspendedWhich of these is included in the liability section of a Personal Auto Policy?Bodily injury and property damage coverageMedical payments of $2,000 are provided under a Personal Auto Policy. All of the following are true concerning this coverage, except:Up to $2,000 will be paid for all injuries that result from an accident that occurs while the insured is giving his girlfriend a ride in the vehicle, and both are injuredIf an insurance company transfers part of the risk associated witl1 a particular policy to another insurance company, this is known as:ReinsuranceWhich of the following types of insurance are very similar in design to a Boatowners Policy?Auto policiesFrom the following, who is eligible to obtain flood coverage under the National Flood Insurance Program (NFIP)?Property owners that reside in communities designated as qualified to participate in the National Flood Insurance programWhen must earthquake insurance be offered according to the California Earthquake Authority (CEA)?For all residential properties up to four unitsWhich of the following types of potential losses to dwellings and commercial property is covered by the National Flood Insurance Program?Expenses that are deemed reasonable in order to protect insured property from flood waterThe insurance company has the right, under the common policy conditions of a Commercial Package Policy to do which of the following?Both of these are rights of the insurerCoinsurance is a device used in a commercial property insurance policy to accomplish which of the following?Encouraged insureds to pay an amount of insurance that is relatively close to the value of the value of the insured propertyWhat does the "liberalization" clause in a Commercial Package Policy accomplish?Broadens the coverage in case a later policy form revision grants better coverage with no additional premium chargeHow is "business income" determined when using a Business Income coverage form?Net income of the operation plus continuing operating expenses (payroll included)An insured property has just experienced glass breakage in a building covered by a commercial property policy. Which, if any, forms of this policy will cover this peril of glass breakage? 1. Broad form only 2. Special Form only1 & 2How is the deductible generally expressed in the special "earthquake deductible provision" of a commercial property policy?A percentage of the property valueSelect the circumstance from the list below where a CGL policy would cover the stated injuries.A customer is injured on the insured's premisesThe medical payments section under a Commercial General Liability Policy covers injuries:Incurred by customers visiting the insured's premisesCoverage under a CGL is provided for which of the following?Business operations of the insured that are conducted at a location that is other than the premises that is described in the declarations of the policyAll of the following coverage parts are found in a Commercial General Liability Policy, except:Professional LiabilityWhich of the liability exposures would not be covered under a Commercial General Liability coverage part?insured's employees who are also covered by Workers' CompensationTheft insurance includes which of the following perils?The insured's store is burglarizedWhich of the following will a Commercial Auto Policy not provide coverage for?Physical damage coverage to mobile equipmentIf an employee drives a corporate-owned vehicle that is furnished for his use by his employer which of the below listed coverages would be appropriate for this vehicle?Drive Other Car coverageIf Symbol 4 is provided to a covered auto, it means:Only owned cars that are not private passenger cars are coveredWhich of the following represent optional physical damage coverages the owner of one car could buy together under a Business Auto Policy (BAP)?Specified perils, collision, property damage liabilityEach of the following is a method of cost valuation in an Inland Marine Policy, except:Utilizing the market value of the damaged propertyWhich of the following statements is NOT true with regards to Equipment Breakdown coverage?Coverage applies only to property the insured ownsWho is a Fidelity Bond written to provide protection for or benefit to?An obligeeWhen comparing a Businessowners Policy to other types of insurance programs, which would be considered most similar in terms of coverage and premium determination?Homeowners policiesAll of the following are optional coverages available under a Businessowners Policy, except:Bodily injury coverageOcean Marine hull insurance provides coverage for which of the following?The ship itselfProtection & Indemnity (P&I) coverage provides coverage for which of these?Liability coverageAn employee suffers injuries while using their employer's truck to make deliveries for the business. The medical payments for this employee's injuries are paid from:Workers' Compensation1Physicians would purchase what type of professional liability insurance coverage?Medical malpractice insuranceGatekeepers are medically trained persons responsible for monitoring the health care needs of members and trying to contain costs by identifying only necessary care requirements. Where do you find them?Health Maintenance OrganizationsWhich of the following choices offer health care services in addition to health care coverage?HMOA company wants to create an in-house health insurance program where monies are paid to the employees for their claims. What is this type of program called?Self-funded planA policy specifically excludes insurance protection for those hazards occurring while working on the job. The category this policy falls under is:Non-occupational policiesAssuming Julie has a total and permanent disability, which of the selections below states that her policy still covers her even though premium payments are not made?Waiver of premium provisionBy putting a maximum limit on how much is covered under a policy for certain selected coverages, an insurance company can try to avoid:Over-insuranceA man and his 5-year-old son are covered by a group life and a group health insurance plan. Should the man be laid off because of a factory closure, he can pay premiums not to exceed 102% of the old premium, retain coverage for 36 months, and because of COBRA: 1. Have health coverage for himself 2. Have health coverage for l1is son 3. Have life coverage for himself 4. Have life coverage for his son1 & 2Often thought of as the most important asset a person has, which type of insurance covers the inability to earn a living:Disability IncomeAll of the following are entitled for Medicare, except:Persons who qualify for public assistance programsMedicare Supplement policies which are sold and issued to supplement Medicare coverage can be issued in which of the following ways?Core benefits onlyThe benefits provided by Long-Term Care policies include all of the following, except:Care given in acute care unit of a hospitalWhich of the following types of insurance can a Fire & Casualty Broker-Agent transact after receiving an appointment by an insurer? 1. Health 2. Annuities 3. Property and auto insurance1 and 3The Life Analyst is allowed to charge a fee for services provided, as long as it is stated in writing, in advance of performing the service. Each of the following must be included in this written agreement, except:The services which will be performed and provided, but for which no fee will be chargedWhen can an application for a Fire & Casualty Broker-Agent be denied without a hearing?The applicant has had an application for a license previously denied within 5 years for causeOn which of the following dates does the authority given to a licensee from an insurer to transact insurance become effective?The date the insurer signs the Notice of AppointmentWhen does the license of a Fire & Casualty Broker-Agent become inactive?When the agent is not currently appointed by an insurer, but renewal fees are paid and continuing education requirements have been metA Fire & Casualty Broker-Agent may:Submit an application to an auto insurance company even though they don't have an appointment on file for him/her.Choose from the following which is/are correct concerning California Long-Term Care: 1. There are tax-qualified components of LTC insurance sold in California. Therefore, regulations require an agent pass a "CTQ" specific continuing education course to sell long term policies 2. Every agent must complete LTC continuing education requirements for both Long-Term Care and the "California Partnership," even though the agent does not sell policies for the Partnership 3. If an agent sells long term care insurance, he/she must have their individual license number printed on advertising.1 & 3From the choices listed below, choose the one that best describes "insolvency" as it relates to insurance:The inability of an insurer to meet financial obligations to policy owners as a result of a deficient amount of paid-in capitalAll of the following are within the Insurance Code definition of "transacting" insurance except:Purchasing a lavish vacation with the commission moneyBoth concealment and representations can be "material" to the facts. How is "materiality" best defined here?It is based on the influence of the facts on the parties in forming an opinion as to the disadvantages of the considered policy3. Amie forgets about a minor auto accident she had some years ago. An auto insurance policy is issued to her. A short time after policy issuance she is in a car accident and files a claim for the damages. The insurance company will still pay the loss and not cancel the policy even though the minor auto accident is discovered just a day after the accident since: 1. The insurer would only cancel if these concealed facts were "material" 2. Those concealed facts were unintentional, therefore legal 3. Cancelling the policy would have to be done before the loss occurred1 onlyThe failure to disclose to a prospective auto insurer that a person has had several at-fault accidents is referred to as:concealmentWhich of the following is correct about a representation provided by either the insurance company or applicant in negotiations for an insurance policy? 1. Could not be a misrepresentation if it was provided orally and not written 2. May be altered 3. May be withdrawn 4. Only the insurer is allowed to rescind if a representation involves a material point2 & 3A representation can be presented: 1. Orally 2. In writingEither 1 or 2According to the Unfair Practices Act, it is OK for:Advise an insured that a claim for an auto policy loss must be filed within a specified period of time as stated in the policy and approved by state statuteAll of the following are deceptive acts or practices. or unfair methods of competition, except:An agent tries to sell a prospect on three separate occasions. A second agent is able to sell the same prospect by convincing him to buy a more expensive, but higher coverage policyWhich of the following is issued by the Commissioner in the event an agent is found guilty of violating a code provision for the first time?A cease-and-desist orderIf, after a hearing, the Commissioner determines that an agent violated an order of the court that was final and still in effect, the Commissioner may impose a fine of up to ____ if the violation is found to be willful:$55,000Which of the following are in violation of the California Insurance Code provisions regarding an agent's capacity in handling and providing advice to clients on insurance claims? 1. Presenting a false claim for the payment of a loss 2. Refusing to submit multiple claims to one or several insurers on the injury or loss by an insured even though the insured demands submission of these claims 3. Preparing a false claim for a friend as a favor1 & 33. Which of the following are required to be given to applicants at the time of the sa!e of, or application for, a Medi-Gap policy? 1. A brochure about the insurance company 2. The agent's business card with the agent's insurance license number 3. An Outline of Coverage 4. A Buyer's Guide 5. A copy of the section of the code describing laws affecting the sale of Medi-Gap plans3 & 4