Final Exam Review Missed Question

Front 1

which of the following is true regarding license cancellation and reinstatement?

Back 1

to cancel a license, the license needs to be returned to the insurance department. it can be reinstated by filling out an application and paying a fee

Front 2

if during a sales presenation a produce intentionally makes a statement which may mislead the insurance applicant, the produce has committed

Back 2

misrepresentation

Front 3

a producer received a group master policy and certifcates for delivery to the insured. within how mayn days must hte policy and certificates be delivered?

Back 3

10 calendar days

Front 4

which of the following statements is true concerning the special form dwelling policy?

Back 4

coverage A is for all-risk perils, and coverage C is for the braod form perils

Front 5

An insured owns a large dog. The first day he has to leave the dog home alone to go to work, the insured comes back to find his $400 couch torn apart, his 100 coffee table chewed up, his 50 window curtain shredded, and a 200 window pane shattered where his dog jumped through. The insured has personal property coverage under a special form dwelling policy. how much of this loww will the policy cover?

Back 5

0

damage that results from domestic animals is excluded under the special form dwelling policy.

Front 6

which of the following best describes business income?

Back 6

net profit or loss that owuld have incurred, plus normal operating expenses, including payroll, that ocntinues during the suspension.

Front 7

which of the following would be covered un the broad form DP2 policy's falling object peril?

Back 7

inetrior bulding damage if the exterior was damaged

Front 8

a policy condition that stipulates how the amount of damaged or lost property will be determined if the insured and the princal do not agree is known as

Back 8

appraisal

Front 9

when transacting business in this state an insurer formed under the laws of another country is known as a/an

Back 9

alien insurer

Front 10

the commissioner may revoke a producer's license for all of the following reasons except

Back 10

acting in a fiduciary capacity

Front 11

the maccarran act stated that the federal government would not regulate insurance as long as an adequate job of regulating the industry was done by the

Back 11

states

Front 12

the policy conditions define

Back 12

how parties to the contract must act following a loww

Front 13

how is an insurance consultant different from an insurance producer?

Back 13

a consultant does not sell policies, but only offers advice

Front 14

which of the following is not the consideration in a policy?

Back 14

the application given to a prospective insured

Front 15

which of the following included in the term "insurance-related conduct"

Back 15

transmitting funds between producers and the insurance company

Front 16

how long is the waiting period after the applciation has been accepted before flood coverage goes into effect

Back 16

30 days

Front 17

following the christmas season, an insured decides to store his decorations in the attic for the summer. while moving the decorations, he accidentally drops a heavy box that crashes through the ceiling, causing 1,000 of damage. his HO3 will pay

Back 17

1,000 minus the deductible

because the HO3 covers structures on an open peril basis, the insurance company would pay 1,000 minus any deductible the insured must pay.

Front 18

which of the followin is not settled on an actual cash value basis while covered under the business property coverage form?

Back 18

valuable papers and records

Front 19

an insured's 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?

Back 19

30,000

this 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 hte loss, or 30,000. if the insured had carried the rquired amount of insurance, partial losses would be paid in full. in the event of a total loss, the case of the policy would be paid. if the full amount is not carried, divide the acutal amount carried by the amount that should be carried *the coinsurance amount), and multiply it by the loss

Front 20

what is the purpose of the coinsurance clause found in property insurance policies?

Back 20

encourage insurance to value

Front 21

within the first 60 days of coverage under a dwelling policy, how much notice is required for the cancellation of a policy?

Back 21

10 days

Front 22

an insured's roof cost 4,000 when installed 5 years ago. it has been damaged by hail and must be replaced. the new rood will cost 6,000 at today's prices. if the roof has been depreciating at 200 per year and his policy is acv, how much will it pay toward the insured's new roof?

Back 22

5,000

Front 23

the business income coverage form covers consequential loss of business income that occurs when a business must suspend operations because of a direct loss. which of the following terms best describes the nature of this type of coverage?

Back 23

time element

Front 24

the new jersey commercial insurance deregulations act requires to file policy forms with the commissioner for approval at least

Back 24

30 days before the become effective

Front 25

which coverage form would provide coverage for all incoming and outgoing shipments?

Back 25

annual transit

Front 26

which of the following is not an essential elemtn of an insurance contract

Back 26

counteroffer

Front 27

duties of the inurer found in property policy conditions include all of the following EXCEPT

Back 27

notify the insured in the event of financial difficulty

Front 28

property insurance tha tprovides 100,000 coverage for a building and 50,000 coverage for personal property at a single location is called

Back 28

specific coverage

Front 29

which of the following would not be considered a misrepresentation on the part of the insurer

Back 29

backdating policies to secure a lower premium for the insured

Front 30

which of the following is not consideration on the part of an insured?

Back 30

promise to submit timely claims

Front 31

which of the following is not consideration on the part of an insured?

Back 31

promise to submit timely claims

Front 32

how much coverage is provided under a homeowners policy for theft or unauthorized use of a credit card?

Back 32

500

Front 33

which of the following most likely would not be reuqired to complete continuing education hours in this state?

Back 33

nonresident producers

Front 34

when a mortgagee is named in a mortgagee clause attached to a fire or other direct damage policy

Back 34

all of the above are true

Front 35

which of the following is used in the formula for calcuating the actual cash vlaue of a property

Back 35

replacement cost

Front 36

the list of those lines or classes of insurance fro which there exists no reasonable or asequate markeyt in new jersey, as determined by the commissioner, is known as

Back 36

exportable list

Front 37

the part of the policy that set forth the rules of condutct, duties, and obligations of the parties is called the

Back 37

conditions

Front 38

under additional coverage for homeowners policies, what is the maximum amount that can be charged to the insured for fire department services?

Back 38

500

Front 39

after a loss, an insured covered by a business property coverage is nto required to

Back 39

reconstruct for the insurer a timeline of activities leading up to the loss for use in an investigation

Front 40

which policy consists of the declarations and conditions, endorsements, and other attachments applicable to a single line of insurance?

Back 40

monoline

Front 41

professional photographers and musicians may insure their equipment with

Back 41

a commercial articles form

Front 42

which of the following would NOT be considered a source of insurability information by insurer?

Back 42

the applicant's marital status

Front 43

a contract between a producer and an insurance company

Back 43

must be in writing and signed by both parties

Front 44

in forming an insurance contract, when does acceptance usually occur?

Back 44

when an insurer approves a prepaid application

Front 45

if the inssuance of a license is denied and a hearing is requested, which entity will be making determination whether or not the license should be issued?

Back 45

the department of insurance

Front 46

which of the following is a mandatory part of an insurance policy that varies with each individual policy?

Back 46

declarations

Front 47

which of the following individuals would most likely be issued a nonresident producer's license?

Back 47

a MASS. resident who sells insurance full-time in boston but wants to expand his customer base by becoming licensed in new jersey

Front 48

the inland marine coverage form for outdoor signs provides "open peril" coverage and excludes coverage fro breakge only during

Back 48

any of the above

Front 49

the policy provision found in property insurance policies that prevents the insured from collecting twice for the same loss is called

Back 49

subrogationq

Front 50

with respect to the business of insurance, a hazard is

Back 50

any condition or exposure that increases the possibility of loss

Front 51

which of the following licenses is required for a surplus lines producer?

Back 51

property and casualty

Front 52

when other insurance is written on the same basis as a commercial property policy, the obligation of the insurer is to cover

Back 52

a share of the loss

Front 53

all of the following are factores in the determination of actual cash value except

Back 53

insurance premium paid

Front 54

expenses that an organzation would not have incurred if business interruption had not existed are known as

Back 54

extra expenses

Front 55

the enw jersey insurance underwritting assocation is supported by funds from the

Back 55

New jersey insurance development fund

Front 56

ABC Trucking hauls products for Acme, Inc. as a contract carrier. On one shipment, the driver stopped at a truck stop for lunch. leaving the truck in the parking lot, he made certain that the truck was locked before leaving it. upon returing to the truck, he disocvered that someone had broken into te trcuck and stolen the cargo. Is abc legally liable fo rht eloss?

Back 56

no, the driver had taken reasonable measures to protect the property by locking the truck.

Front 57

all of the following are unfair claims settlement practices except

Back 57

suggestion negotiations in settling the claim

Front 58

the new jhersey commercial insurance deregulationa ct requrires insureds to file rates and any changes or amendments with the commission no later than

Back 58

30 days after becoming effective

Front 59

which of the following is the closest term to an "authoerized" insurer?

Back 59

admitted

Front 60

the regulat national flood insurance program would insure an eligible single-family dwelling for up ot

Back 60

250,000

Front 61

an insured has aliability policy that sets the amount for all claims that arise from a single incident at 50,000. which type of limit of liability does this insured's policy have?

Back 61

per pccurence.