Term
| The definition of controlled business is business written solely on... |
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Definition
| Family and Business Associates |
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Term
| All state require those who represent insurance companies in sales with consumers to be licensed. Insurance departments help assure that persons who are licensed...... |
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Definition
| are of good character and possess a minimum level of competence. |
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Term
One of the criteria to determine an insurable risk is
a. Limited Exposure
b. Calculable Loss
c. Infedility |
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Definition
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Term
| An insured in involved in an automobile accident. The adjuster declares the insured's car to be a total loss and authorizes payment to the insured for the actual cash value of the car. The salvage belongs to......... |
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Definition
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Term
| A morale hazard in considered.... |
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Definition
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Term
| Policy A is written covering a building with a $50,000 limit. Policy B is written covering the same building with a $100,000 limit. A $9000 covered loss occurs. Company A will pay $3000 of the loss; company B will pay $6000 of the loss. This is an example of which principle of indemnity? |
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Definition
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Term
Which of the following would be eligible for a dwelling policy?
A. A small five-unit apartment building used strictly as a residence.
B. A mountain vacation house used mostly in the summer and some weekends.
C. A two story home where the down stairs is used for a small candy store |
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Definition
| B. A mountain vacation house used mostly in the summer and some weekends. |
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Term
| The automatic increase in insurance endorsement in the dwelling property program provides annual increases to the limits of which coverages by a percentage shown in the declarations? |
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Definition
| Coverage A - Dwelling and Coverage C- Personal property |
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Term
A personal injury endorsement added to a homeowners policy would provide coverage for liability caused by the insured.....
A. Intentionally using a racial slur while campaigning for election
B. Your neighbor suing you for medical payments because you back out of your driveway and accident hit their daugther.
C. A landlord intermittently entering his tenants apartment to see if the tenant is harboring a cat, which violates the tenants lease. |
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Definition
| C. A landlord intermittently entering his tenants apartment to see if the tenant is harboring acat, which violates the tenants lease. |
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Term
| Coverage F - Medical payments to others, includes payments for? |
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Definition
| Reasonable charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices, and funeral services. |
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Term
| Coverage B - Other structures applies to.... |
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Definition
| Structures located on the insured's property separated from the dwelling by clear space. |
|
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Term
| The purpose of the homeowners program is to provide... |
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Definition
| a single package policy that reduces the need for multiple policies. |
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Term
Jane takes her vehicleto the local garage to have new brakes installed. After completing the job the mechanic takes the car out for a test drive. The mechanic runs a red light and hits another vehicle. The damage to Janes car would be covered primarily on.....
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Definition
| The repair shops garagekeepers liablity policy. |
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Term
| An insured is involved in a serious head on collision with another vehicle. Injuries have been sustained and there is damage to the vehicle. Under a personal automobile policy, and insured is obligated to.... |
|
Definition
| promptly notify the insurance company of the loss. |
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Term
| For an applicant to be eligible fo coverage in the automobile insurance plan the applicant must.... |
|
Definition
| be unable to purchase insurance in the voluntary market |
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Term
| Is theft covered under a commercial articles floater? |
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Definition
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Term
| Who would be covered for medical reimbursement for injuries sustained under the medical payments section of the commercial general liability policy? |
|
Definition
| Customers of the insured. |
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Term
| What is the waiting period included in the definition of period of restoration in the business income coverage form? |
|
Definition
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Term
Which of the following would be eligible for an ISO business owners policy?
A. An owner occupied four family dwelling with three residential rental units.
B. A convienience store with a gasoline pump |
|
Definition
| B. A convenience store with a gasoline pump. |
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Term
| To be eligible to receive workers' compensation benefits, an employee must...... |
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Definition
| be injured in a work related incident. |
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Term
Which of the following would be covered under a personal umbrella policy?
A. Property damage to the insured's home
B. Liability assessed against an insured as a result from his dog biting a neighbor's child |
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Definition
| B. Liaibility assessed against an insured as a result from his dog biting a neighbor's child |
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Term
| In ocean marine insurance, the act of throwing cargo overboard in order to save the ship and crew is known as.... |
|
Definition
|
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Term
| With regard to property insurance, consideration is..... |
|
Definition
| payment of premium by the insured in return for the promise to pay covered claims. |
|
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Term
| Compensatory damages are awarded for...... |
|
Definition
|
|
Term
| covered under the Building and Personal Property Coverage Form |
|
Definition
| Accounts, bills, currency, deeds, evidence of debt, money or securities Correct |
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Term
Which of the following is considered covered property under the BOP?
Choose one answer.
a. Completed additions, permanently installed machinery and equipment.
b. Motor trucks that deliver the insured's goods.
c. Automobiles used in the business. |
|
Definition
| Completed additions, permanently installed machinery and equipment. Correct |
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|
Term
Which is true of Coverage C of the Dwelling Policy?
Choose one answer.
a. Coverage C provides coverage for coins and currency.
b. Coverage C provides coverage for passports, tickets, and deeds.
c. Coverage C excludes coverage for animals, birds, fish, motor vehicles not used to service the premises or assist the handicapped, and property of boarders, roomers or tenants.
d. Coverage C provides coverage for grave markers. |
|
Definition
| Coverage C excludes coverage for animals, birds, fish, motor vehicles not used to service the premises or assist the handicapped, and property of boarders, roomers or tenants. |
|
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Term
| The Personal Articles Floater Policy is written: |
|
Definition
| To provide coverage worldwide with some exceptions. Correct |
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Term
| After an accident under the Personal Auto Policy the insured is required to do all of the following |
|
Definition
Submit a proof-of-loss when required by the insurer.
Cooperate with the investigation and settlement of any claim.
Promptly send the insurer copies of notices or legal papers received. |
|
|
Term
Which of the following is not considered a covered breakdown under Equipment Breakdown Protection Coverage Form?
Choose one answer.
a. Mechanical failure caused by centrifugal forces.
b. Electrical failure including arcing.
c. The functioning of any safety device.
d. Failure of pressure or vacuum equipment. |
|
Definition
| The functioning of any safety device |
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Term
| Producers/agents act as representatives of ______________ when transacting the business of insurance. |
|
Definition
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Term
| When a mortgage company requires an applicant to buy insurance from them as a condition for a loan, this known as: |
|
Definition
|
|
Term
| When a producer, agent, or broker makes a false statement about the benefits or the nature of an insurance policy it is called: |
|
Definition
| The person is guilty of Misrepresentation |
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|
Term
| Insurance is designed to provide protection against.... |
|
Definition
|
|
Term
| A good example of Risk Reduction is.... |
|
Definition
| When one takes action to minimize the severity of a potential loss |
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Term
| Bodily Injury in Liability Insurance is best described as: |
|
Definition
| It includes physical injury to a person or death arising from the negligent or purposeful acts or omissions by an insured, including sickness or disease. |
|
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Term
| What is true regarding every insurance license applicant? |
|
Definition
| The applicant must be competent, trustworthy and financially responsible. |
|
|
Term
| What defines a Surplus Lines Broker? |
|
Definition
| They place risks with non-admitted insurers when coverage cannot be placed with admitted insurer carriers. |
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Term
All of the following are true regarding Medical Payments coverage under the BOP, except:
Choose one answer.
a. Payment of medical expenses is made regardless of who is at fault. b. It pays medical expenses incurred within one year of the date of the accident.
c. The policy excludes funeral expense.
d. It covers accidents on premises the insured owns or rents, or due to the insured's operations. |
|
Definition
| The policy excludes funeral expense. |
|
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Term
| Under the Dwelling Broad Form, losses to a building are paid on a/an ____ basis |
|
Definition
|
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Term
| ______ ________ Insurance covers employee's injuries arising out of and in the course of employment, and these benefits are the exclusive remedy for the employee injured under these circumstances. |
|
Definition
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|
Term
Insurers may take which of the following actions in the process of handling and settling policy claims?
Choose one answer.
a. Require the claimant to submit a proof of loss before claim payment.
b. Require an insured to take a lie detector test.
c. Refuse to negotiate a claim settlement because the policy application was changed.
d. Not pay a claim because of the reputation of the insured. |
|
Definition
| Require the claimant to submit a proof of loss before claim payment. |
|
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Term
| The best description of the Voluntary Compensation Endorsement under Workers' Compensation Insurance... |
|
Definition
| It provides coverage to employees that are not otherwise covered |
|
|
Term
All of the following are true regarding the use of insurance, except:
Choose one answer.
a. It protects against uncertainty and reduces anxiety.
b. It transfer risk from the insured to the insurer.
c. It is designed to be used to protect the insured from dishonest acts.
d. It is the substitution of a small certain expense for a large uncertain loss. |
|
Definition
| It is designed to be used to protect the insured from dishonest acts |
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Term
| In insurance, to determine acceptable risks is the primary responsibility of: |
|
Definition
|
|
Term
| An insurer that is authorized to do business in a particular state is said to be: |
|
Definition
|
|
Term
| What describes the term General Average under Ocean Marine Insurance? |
|
Definition
| A partial loss where the loss is shared, where jettison of cargo is necessary to save the ship |
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Term
Which of the following is not true, regarding the Value Reporting Form?
Choose one answer.
a. The insured is only required to report up to 80% of value of the property.
b. Late reporting or under-reporting will result in a penalty in the event of a loss.
c. The insured pays an advance premium at the beginning of the policy period.
d. The insured is required to report 100% of values with each report. |
|
Definition
| The insured is only required to report up to 80% of value of the property. |
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|
Term
The Commissioner (Director) of Insurance has some general duties, which include all of the following, except?
Choose one answer.
a. Examination of the financial status of each insured.
b. Regulation of the internal affairs of the Department or Division of Insurance.
c. Prescribing procedures to be followed in hearings before the Department or Division of Insurance.
d. Interpreting and enforcing state laws relating to insurance. |
|
Definition
| Examination of the financial status of each insured. |
|
|
Term
All of the following are allowed or true regarding a producer or agent, except:
Choose one answer.
a. As an incentive to close a sale, they may select the lowest priced policy from the companies they represent to offer to a prospective client.
b. As an incentive to close a sale, they may offer discounts of premium to a prospective client.
c. As an incentive to close a sale, they may place coverage on a brokerage basis with a company the agent does not represent, to serve a prospective client.
d. As an incentive to close a sale, they may commit themselves to professional insurance counseling at no charge to the prospective client. |
|
Definition
| As an incentive to close a sale, they may offer discounts of premium to a prospective client |
|
|
Term
Which of the following types of insurers can charge a policyholder more for a pro rata share of losses?
Choose one answer.
a. A Stock Insurance Company
b. A Lloyds Insurer
c. A Fraternal Insurer
d. An Assessment Insurer |
|
Definition
|
|
Term
| Under the Livestock Coverage Form, to avoid penalty, all property must be written: |
|
Definition
|
|
Term
| A Directors and Officers Liability Insurance would cover.... |
|
Definition
| Errors in the preparing of financial statements |
|
|
Term
| Business Liability Coverage under the BOP includes coverage for: |
|
Definition
| Bodily injury or property damage caused by an occurrence that takes place in the coverage territory during the policy period. |
|
|
Term
| A Certificate of Insurance includes... |
|
Definition
| The effective date, name of the insurer, the named insured and limits of liability. |
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|
Term
Which of the following is not eligible to be written on a Business-owners Policy?
Choose one answer.
a. Building owners personal property in apartment buildings
b. Laundries and Dry Cleaners
c. Credit Unions
d. Office buildings |
|
Definition
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|
Term
Which of the following might be considered a physical hazard?
Choose one answer.
a. The storage of flammables near a furnace.
b. The insured's attitude that good housekeeping is not important.
c. Dishonesty on the part of an insured.
d. The storage of all flammables in a fireproof container. |
|
Definition
| a. The storage of flammables near a furnace. |
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Term
| When a proper entry is made on the Declarations Page of a BOP, outdoor signs would be: |
|
Definition
| Covered on an open perils basis |
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Term
A person can purchase an insurance policy to cover losses from all the following, except:
Choose one answer.
a. An operation of drug smuggling.
b. Loss of property through burglary or theft.
c. Loss of assets through tort actions brought against the person.
d. Sudden and direct damage to property by natural causes |
|
Definition
| a. An operation of drug smuggling. |
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|
Term
Which of the following is not considered an insured under Section II of the Homeowners Policy?
Choose one answer.
a. Persons who are not named as insureds in the Declarations of the policy.
b. A person who is no relation and pays the insured rent.
c. Persons other than immediate family members of the insured.
d. Members of the family under the age of 24 enrolled in school and living at school away from the home. |
|
Definition
| A person who is no relation and pays the insured rent. Roomers or boarders are not considered insureds |
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Term
| n property insurance, the practice that damaged property, which has been paid for by the insurance company, belongs to the insurer is known as: |
|
Definition
|
|
Term
The Basic Cause of Loss Form under the Commercial Property Coverage Part will cover losses caused by:
Choose one answer.
a. Sprinkler leakage
b. Falling Objects
c. Water Damage Caused by Accidental Discharge of Water
d. Weight of Ice, Snow or Sleet |
|
Definition
|
|
Term
| The main purpose of licensing insurance producers is to protect: |
|
Definition
|
|
Term
| The powers of a producer that are stated in his/her agency contract, are said to be: |
|
Definition
|
|
Term
Medical Payments under Section II of the Homeowners Policy would cover all of the following, except:
Choose one answer.
a. Medical and surgical expenses
b. Prosthetic devices
c. Dental expenses
d. Loss of Income of an injured person |
|
Definition
d. Loss of Income of an injured person.
Coverage F (Medical Payments to Others), pays necessary medical expenses incurred within three years from the date of an accident. This may include surgical, dental, hospital, ambulance, professional nursing and similar expenses. |
|
|
Term
| laims charging misappropriation of advertising ideas or style of doing business, infringement of copyright, title or slogan and written material that violates a persons right to privacy, may be insured under which coverages? |
|
Definition
| Advertising Injury Liability |
|
|
Term
Under the General Exclusions of the Commercial Crime Coverage Part to the Commercial Package Policy, which of the following is true?
Choose one answer.
a. The exclusion of legal expenses does not apply if the expenses arise from a legal action.
b. There is a government action exclusion.
c. The exclusion of indirect losses does not apply to loss of business income.
d. There is an exclusion of loss to any property not owned by the insured |
|
Definition
b. There is a government action exclusion.
Losses resulting from property seizure or destruction by a governmental authority are not covered. |
|
|
Term
| Under classifications of construction, material having a fire-resistance rating between one and two hours for walls, floors and roofs, is classified as: |
|
Definition
|
|
Term
| The amount of insurance provided to cover personal property under Coverage C of a Homeowners Policy, is: |
|
Definition
|
|
Term
|
Definition
| It is the offering any rebate, discount of premium, or advantage not specified in the policy. |
|
|
Term
| The Homeowners Policy is a multi-line policy. What is the most accurate concerning multi-line policies? |
|
Definition
They offer fewer gaps in coverage, a savings in premium, and fewer policies are required.
he multi-line policy combines Property Coverage and Liability Coverage, which previously required separate policies, into one policy. This prevents overlaps and gaps in coverage, and the simplified processing results in lower premiums. |
|
|
Term
| In insurance, when the number of similar units increase, the predictability of the loss improves: |
|
Definition
| According to the Law of Large Numbers |
|
|
Term
| Which statement is accurate concerning Coverage D-Additional Living Expense of the Homeowners Policy? |
|
Definition
| The coverage will pay for any increase in living expenses required to maintain the insured's normal standard of living. |
|
|
Term
| What may be the result of any producer, agent, or broker who knowingly violates an unfair trade practice? |
|
Definition
| Generally, the States provide that a producer's, agent's, or broker's license may be revoked if the licensee knowingly violated any state law or insurance department regulation. |
|
|
Term
| The stipulation that coverage will not benefit a person or organization that is holding, storing, or moving insured property for a fee, is found in which of the following Conditions of a property insurance policy? |
|
Definition
|
|
Term
| Under the Homeowners Policy, Medical Payments coverage will apply to expenses that are incurred within what length of time? |
|
Definition
|
|
Term
| Under a Homeowners Policy, how much coverage is provided for theft or unauthorized use of a credit card? |
|
Definition
$500
The Credit Card, Fund Transfer Card, Forgery and Counterfeit Money Additional Coverage provide $500 coverage for unauthorized use of Credit and Fund Transfer Cards. |
|
|
Term
| The definition of Business Personal Property under the Building and Personal Property Coverage Form includes: |
|
Definition
| Furniture, fixtures, machinery and equipment, stock held for sale (including raw material) and other personal property owned by the insured. |
|
|
Term
| Which Property Condition provides that the insurer may broaden coverage during the policy period without an increase in premium? |
|
Definition
|
|
Term
|
Definition
| It covers such items as paintings, rare manuscripts and antiques. |
|
|
Term
| A retail store has a Businessowners Policy with a $250 deductible and no optional coverages. In the event an employee unlawfully takes $10,000, how much will the policy pay? |
|
Definition
| The policy would not pay, as employee dishonesty must be purchased as an Optional Coverage for the loss to be covered. |
|
|
Term
| Since persons contracting with contractors or subcontractors to make repairs, construction, or alterations have possible contingent exposure because of negligent acts of the contractor or subcontractor, they should purchase: |
|
Definition
| Contingent Liability Insurance |
|
|
Term
| Under the Common Policy Conditions, the part on Examinations of Your Books and Records, states that the: |
|
Definition
| Insurer may examine the books at any time during the policy period and up to three years afterward. |
|
|
Term
| An event that results in an insured loss because of a continued and repeated exposure, in insurance is said to be: |
|
Definition
|
|
Term
| n an insurance contract the value that each party gives the other is said to be: |
|
Definition
|
|
Term
| Under the Equipment Breakdown Protection Coverage Form, what describes expediting expenses? |
|
Definition
| It is coverage that is available to make temporary repairs, or to expedite permanent repairs or replacement of damaged property. |
|
|
Term
| The primary purpose is to protect insureds from insurers that become insolvent..... |
|
Definition
| Property and Casualty Insurance Guaranty Association |
|
|
Term
| In the insurance world, a potential for a loss is said to be: |
|
Definition
|
|
Term
All of the following are defined as a Named Insured under the Business Auto Coverage Form, except:
a.An Individual
b. A neighbor using a covered auto with permission
c. A Corporation
d. A Partnership |
|
Definition
| A neighbor using a covered auto with permission |
|
|
Term
| In the Personal Auto Policy, the definition of Family Member includes... |
|
Definition
| A person related by blood, marriage or adoption who is a resident of a household (including a foster child). |
|
|
Term
| Employee Dishonesty Optional Coverage under the BOP, when activated with an entry on the Declarations Page, will cover |
|
Definition
Damage or loss to business or personal property, including money and securities, resulting from dishonest acts of employees.
Employee Dishonesty Optional Coverage protects the insured from dishonest acts of employees acting alone, or in collusion with other employees. |
|
|
Term
| Under Section II of the Homeowners Policy, an employee whose duties are related to the maintenance or use of the residence premises, is defined as: |
|
Definition
|
|
Term
| The Homeowners Policy would cover personal property, such as: |
|
Definition
| A camera that is stolen while the insured is on vacation |
|
|
Term
| Whatis a property insurance provision that serves to prevent the insured from collecting twice for the same loss? |
|
Definition
|
|
Term
| The Common Policy Conditions are found or contained where? |
|
Definition
| As Section III of the Businessowners Coverage Form. |
|
|
Term
| n states where insurance rates cannot be used until the Department or Division of Insurance approves them, the rates are referred to as: |
|
Definition
|
|
Term
| Under a Homeowners Policy, structures on the premises that are separated by a clear space from the dwelling, are covered under: |
|
Definition
|
|
Term
| The Insurance Commissioner is required to: |
|
Definition
| Enforce laws relating to insurance. |
|
|
Term
| Under Personal Marine Insurance, the Personal Articles Floater (Scheduled Articles Floater) is: |
|
Definition
| Used to insure individual personal property on an itemized or scheduled basis. |
|
|
Term
| Under Motor Truck Cargo Forms, the form that insures public truckers against their legal liability for loss or damage to cargo belonging to others in their possession, is called |
|
Definition
|
|
Term
| What describes Fiduciary Responsibilities? |
|
Definition
| Anyone acting as an insurance producer or agent for an insurer shall be held responsible in a trust or fiduciary capacity for any money collected or received for the insurer |
|
|
Term
| If the Insurance Commissioner has reason to believe that a producer has engaged in unfair competition, he/she is required to: |
|
Definition
| Advise the producer that he/she is entitled to a public hearing |
|
|
Term
| Under Workers' Compensation, the main purpose of the classification system is... |
|
Definition
| It is to categorize employees according to their common exposure. |
|
|
Term
| In the Dwelling Policy, the fact that earth movement, landslide, mine substance, or mudflow are not covered unless direct loss by fire or explosion ensues and then it will only pay the ensuing loss, is stated where? |
|
Definition
|
|
Term
| The Business Auto Coverage Form is used... |
|
Definition
| For owned, leased, hired or borrowed private passenger autos, trucks, trailers and semi-trailers that are used by businesses |
|
|
Term
| When an insurance policy is not clear, the court will usually interpret in favor of the insured because: |
|
Definition
| A Contract of Adhesion is a contract between two parties that does not allow for negotiation, i.e. take it or leave it. An insurance policy, drawn up by the insurer, is such a contract. Any ambiguity in the contract is construed against the party who drew it up. |
|
|
Term
| The taking of property from inside the premises by a person unlawfully entering or leaving the premises as evidenced by visible signs of forcible entry or exit, is covered under which of the following Crime Coverages? |
|
Definition
|
|
Term
| The Part of the Workers' Compensation Policy that includes States that are listed in the Information Page, is called: |
|
Definition
| Part Three - Other States Insurance |
|
|
Term
| Under Liability Insurance, Personal Injury Liability Coverage includes... |
|
Definition
Libel, slander, false arrest, invasion of privacy, etc.
Bodily Injury and Property Damage insurance provides coverage for physical injury to persons or their property. Personal Injury insurance supplements this coverage by providing coverage for mental, rather than physical, harm to other persons. |
|
|
Term
| A breach under the Doctrine of Warranty may result in: |
|
Definition
|
|
Term
| Under Definitions of the Farm Property Coverage Form, the term Vacancy or Vacant means: |
|
Definition
| A building not containing sufficient furnishings or other property customary to its intended use. |
|
|
Term
| When insurance can not be placed with a licensed insurer, it may be placed with an authorized/non-admitted insurer by a: |
|
Definition
|
|
Term
| Under the Dwelling Policy coverage extension of Debris Removal.... |
|
Definition
Does not increase the amount of insurance under the policy.
The Debris Removal expense is included in the limit of liability that applies to the damaged property; therefore, is not Additional Insurance. |
|
|
Term
| Under Uninsured Motorist Coverage of the Personal Auto Policy, What defines insured? |
|
Definition
| The named insured, a family member, or any other person occupying the insured auto. |
|
|
Term
| When a homeowner allows wet leaves to remain on his/her sidewalk, this might be considered... |
|
Definition
|
|
Term
| Under the Electronic Data Processing Floater.... |
|
Definition
| Hardware and software must be described in the Declarations. |
|
|
Term
| The Reasonable Expectations Doctrine states that: |
|
Definition
| An insured is entitled to coverage that a reasonable and prudent buyer can expect. |
|
|
Term
| The Owner's Form is different from the Shipper's Form and the Trucker's Form because: |
|
Definition
| It is designed to provide coverage for a business firm that transports its own goods |
|
|
Term
| It is usually funded by assessments of insurers and self insurers... |
|
Definition
Second Injury Fund under Workers' Compensation Insurance
The Second Injury Fund pays compensation when an employee, who has already suffered a prior disabling injury, now sustains a subsequent injury and the combination of the two injuries creates a greater disability than the second injury would have created by itself. |
|
|
Term
| Coverage under this form does not extend to the insured's property worn by salespersons for display purposes. The policy also excludes misdelivery or unaccountable losses. |
|
Definition
| A Jeweler's Block Coverage Form |
|
|
Term
| In insurance, the insurer's promise to pay a covered loss and defend the insured in a lawsuit and the insured's payment of the first premium, are all examples of... |
|
Definition
|
|
Term
| A contract whereby only one party is bound to future performance, is said to be: |
|
Definition
|
|
Term
| What are the territorial limits of the Commercial General Liability Coverage Part of the Commercial Package Policy? |
|
Definition
| United States, its territories and possessions, Puerto Rico and Canada |
|
|
Term
| Part A Limit of Liability under the Personal Auto Policy... |
|
Definition
| The Part A Limit of Liability under the Personal Auto Policy makes clear the maximum amount of insurance that is available in various circumstances. |
|
|
Term
| Which grouping of perils is included under the dwelling and other structures (Coverages A & B) of the HO-2? |
|
Definition
|
|
Term
| When the decision regarding placement of insurance lies exclusively with the licensee, that insurance is considered.... |
|
Definition
| Controlled Business. A licensee may not use their license principally for the purpose of procuring insurance for themself, their spouse or for a business they control. |
|
|
Term
| Under Boiler and Machinery Insurance... |
|
Definition
| The insurer will pay the amount of a covered loss in excess of the deductible, and if more than one covered equipment is involved in one breakdown only the highest deductible applies. |
|
|
Term
| The main reason federal and state authorities are concerned about establishing an individual's right to privacy is: |
|
Definition
| To protect individuals from overly intrusive information collection practices. |
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Term
| Misrepresentation with the purpose of encouraging a person to lapse, cease, or cancel a policy issued by another insurer, and purchase a new one. |
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Definition
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Term
| The Businessowners Liability Coverage Form includes coverage for bodily injury, property damage, personal injury and advertising injury to which coverage applies, plus... |
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Definition
| Liability assumed under an insured contract |
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Term
| The Commissioner of Insurance has the power to take what action? |
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Definition
| Revoke a producer's license. |
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Term
| The Businessowners Coverage Form Section II - Liability, provides coverage for: |
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Definition
| Personal injury or advertising injury that is caused by an offense arising out of the insured's business, but only if the offense takes place in the coverage territory during the policy period |
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Term
| What are bonds that are used in court proceedings called |
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Definition
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Term
| The primary purpose of requiring licensing in insurance is: |
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Definition
| To protect the General Public. |
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Term
| Under the Limits of Insurance of the Building and Personal Property Coverage Form..... |
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Definition
| The most the policy will pay for any one occurrence is the limit shown in the Declarations. |
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Term
| The Limit of Liability of Coverage D, Damage to Your Auto, under the Personal Auto Policy states that: |
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Definition
| The limit of liability is the lesser of the actual cash value (ACV) of the vehicle or the amount necessary to repair or replace the vehicle with another of like kind and quality. |
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Term
| Under Medical Expenses of the Businessowners Coverage Form Section II - Liability, how long is allowed for expenses to incur? |
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Definition
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Term
Coverage Other Than Collision would include all of the following losses to the insured vehicle, except:
Choose one answer.
a. Explosion or Earthquake
b. Theft or Larceny
c. Damage to the insured auto from running into a tree
d. Fire |
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Definition
Damage to the insured auto from running into a tree.
Collision means the upset of the covered auto or its impact with another vehicle or object; therefore, the damaged caused by the auto running into a tree is considered Collision damage. |
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Term
Which of the following is true regarding the Personal Liability Supplement?
Choose one answer.
a. It provides coverage for claim expenses, first aid expenses and damage to property of others.
b. It covers Professional Services rendered by the insured.
c. It covers the insured's personal autos.
d. The limit of liability is the same as the Coverage A amount. |
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Definition
| It provides coverage for claim expenses, first aid expenses and damage to property of others. |
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Term
| It is designed to cover an individual's or family's personal use of an auto... |
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Definition
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Term
| A lending institution may not..... |
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Definition
| Require that a borrower purchase insurance through a certain producer |
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Term
| In Liability Insurance, the restriction that the policy places on the dollar amount of coverage, is called: |
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Definition
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Term
| Fire, wind and hail are all types of: |
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Definition
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Term
| Nonowned Autos under the Business Auto Coverage Form includes: |
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Definition
| Auto's owned by the insured's employees or members of their households, but only while being used in the insured's business or personal affairs. |
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Term
Which of the following is true, regarding Section II of Homeowners Policy Forms?
Choose one answer.
a. Coverage is intended to protect against non-business and non-automobile exposures of the individual or family unit.
b. Coverage is intended to protect against the liability exposures of the individual or family unit, except for the business exposures.
c. Coverage is intended to protect against the liability exposures of the individual or family unit, including the professional exposures of the named insured and spouse. |
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Definition
| Coverage is intended to protect against non-business and non-automobile exposures of the individual or family unit. |
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Term
Under Coverage C of a Homeowners Policy, all of the following losses are included, except:
Choose one answer.
a. Windstorm damage to a riding lawnmower sitting outside the garage.
b. Damage to lawn furniture caused by vandals.
c. Lightning damage to the living room television set.
d. Windstorm damage to personal property contained in the building, unless the opening is caused by a covered peril. |
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Definition
| Windstorm damage to personal property contained in the building, unless the opening is caused by a covered peril. |
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Term
Damage to outdoor plants by forces of nature other than lightning are so common that such damage is considered uninsurable. Coverage for certain other perils is provided, with a limit of $500 for any one tree, shrub, or plant.
True or False |
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Definition
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Term
| Under the Broad Form Dwelling Policy (DP-2), which peril is not included for coverage without an endorsement? |
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Definition
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Term
| Private Insurers are not allowed to write Workers' Compensation Insurance in.... |
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Definition
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Term
| Under the Dwelling Policy Forms, which losses would be covered? |
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Definition
| Fire damage to building materials and supplies that are located on the insured premises. |
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Term
| The Condition that the insured's interest in a property insurance policy may not be transferred to another person without the consent of the insurance company, is called: |
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Definition
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Term
| When the Limit of Liability of the policy may be applied to either bodily injury (BI) or property damage (PD), wherever it is needed or in any combination, it is known as: |
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Definition
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Term
| A property owner of an office building has a Commercial Property Policy written for $300,000. Upon selling the building, can the owner transfer the policy to the new owner? |
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Definition
| The insurer must give written consent before the policy can be transferred. Correct |
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Term
| The Business Auto Coverage Form would not cover... |
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Definition
| An employee using the employee's personal auto in insured's business. |
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Term
| Which of the following best describes the use of deductibles under Part D of the Personal Auto Policy? |
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Definition
| They tend to discourage petty claims and lower premiums |
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Term
| When someone owns and operates a business, who has a Business Income Coverage Form along with his Commercial Property Coverage Form, experiences a large fire, which requires several weeks of down time due to rebuilding, The Business Income Coverage Form will pay for: |
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Definition
| Net income plus continuing expenses of the business |
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Term
| Who is not considered an insured under a BOP? |
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Definition
| Anyone driving the named insured's mobile equipment on public roads, without the named insured's permission |
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Term
| The coverage will pay for bodily injury and/or property damage caused by negligent or faulty work by the insured, but will not pay for the cost of replacing the work that caused the loss... |
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Definition
| Completed Operations Coverage |
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Term
| In surety bonding, what is the party called whose obligation is guaranteed? |
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Definition
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