Property & Casualty Exam Review Ii

Front 1

Which condition or provision of a property insurance policy applies when the insured and insurer cannot agree on the mount of the loss?

Back 1

Appraisal

Front 2

What part or portion of a property insurance policy is it that specifies the causes of loss (perils) that are not covered?

Back 2

Insuring Agreement or Clause

Front 3

When an insured suffers a loss, they are required to prepare an inventory of the damaged property at the_________ request.

Back 3

Insurer

Front 4

True or False:

Open peril policies include losses caused by theft.

Back 4

True

Front 5

When an insured desires to add coverage to a policy, the insurer usually will _______ the policy.

Back 5

Endorse

Front 6

For replacement cost coverage to apply in Dwelling policies, the insured must carry insurance at least equal to ____% of the cost of replacement of the building.

Back 6

80%

Front 7

Would a stated amount method of valuation likely be used when insuring gold bullion?

Back 7

No

Front 8

In the event of a loss under a Homeowners policy, a proof of loss must be signed and sworn by the ___________.

Back 8

Insured

Front 9

The _______Clause allows insurers to automatically broaden coverage without endorsement on existing policies with no increase in premium.

Back 9

Liberalization

Front 10

Could an order to vacate the property possibly cause an insurer to cancel a commercial property policy?

Back 10

Yes

Front 11

Does coverage under a property policy extend to include a legal representative of the named insured's estate in the event of death of the named insured?

Back 11

Yes

Front 12

In a Homeowners policy, the term _____ _____ _____ is defined as the cost to repair or replace the damaged property less depreciation.

Back 12

Actual Cash Value

Front 13

Which of the following is an example of a hostile fire? A) A fire in a fireplace: B) A burning cigarette: C) A grass fire set intentionally by a rancher; D) An ember from a fireplace jumps out and burns a hole in the carpet.

Back 13

D) An ember from a fireplace jumps out and burns a hole in the carpet

Front 14

When property is damaged by fire, the loss is said to be a(n) ________loss.

Back 14

Direct Loss

Front 15

True or False

War is typically excluded in property policies.

Back 15

True

Front 16

True of False

The name of the insured is found on the Declarations Page of the policy.

Back 16

True

Front 17

A building that has neither occupants nor personal property is ________.

Back 17

Vacant

Front 18

When the insurer cancels a property policy, the unearned premium is returned ______ _______.

Back 18

Pro Rata

Front 19

The ______part or portion of a property policy sets forth the rights, rules, duties, and obligations of the insurer and insured to be followed throughout the policy period.

Back 19

Conditions

Front 20

The ______ ______Law requires an insurer to pay the full amount of insurance on an insured structure in the event of a total loss.

Back 20

Valued Policy

Front 21

When a property policy has been in effect less than 60 days and the insurer cancels for nonpayment of premium, the insurer must give the insured _____ days written notice.

Back 21

10 days

Front 22

The amount of the deductible is found in the _______ part or portion of a property policy.

Back 22

Declarations

Front 23

When more than 1 property policy covers the same loss, each policy pays no more than its _______ share of the loss.

Back 23

Own/Fair Proportinate

Front 24

True or False

An insurer may nonrenew a Homeowners policy with oral notice to the insured.

Back 24

False

Front 25

If a property owner does not desire hany deduction for depreciation following a covered loss, he/she should purchase a(n) _______ _______ policy.

Back 25

Replacement Costs

Front 26

A condition or defect that exists within property itself that causes the property to spoil, break, become defective, or destroy itself, is known as __________ ________.

Back 26

Inherent Vice

Front 27

Policy A is written for $100,000, and an excess Policy B is written for $200,000 on the same property. In the event of a $20,000 loss, how much will each policy pay?

Back 27

A= $20,000/B=$0.00

Front 28

If a fire on the premises caused a power outage, which caused meat in the freezer to spoil, would meat spoilage be considered a direct loss or an indirect loss?

Back 28

Indirect

Front 29

Insuring more than 1 property on 1 policy for a single amount of insurance that appies to all properties covered under the policy is known as ________coverage.

Back 29

Blanket

Front 30

The provision contained in most policies insuring commercial property that is used to encourage the insured to purchase and maintain insurance to value is the ________provision.

Back 30

Coinsurance

Front 31

What part or portion of a property policy contains the effective and expiration dates of the policy?

Back 31

Declarations

Front 32

What method of loss valuation allows the replacement of damaged property with less costly property when replacement with identical property is impossible due to some technological change?

Back 32

Functional

Front 33

What part or portion of a property policy is it that contains the insurer's promise of protection to the insured?

Back 33

Insured

Front 34

Under a Commercial LInes property policy, who is responsible for making the premium payments in a timely manner and has the right to request changes to the policy?

Back 34

First Named Insured

Front 35

An individual or organization who has taken into their care, custody, and/or control the property of another for servicing, repair, or storage is known as a _________.

Back 35

Bailee

Front 36

A fire is said to be a ________ of a potential loss.

Back 36

Cause

Front 37

Company A has issued a policy in the amount of $200,000, and Company B has issued a policy in the amount of $300,000. Under the Other Insurance or Pro Rata Liability condition or provision, how much will Company A pay of a $100,000 loss?

Back 37

$40,000

Front 38

Is damage caused by flood and tidal waters generally excluded from coverage under all Dwelling Forms? Yes or No

Back 38

Yes

Front 39

At the insured's request, coverage C _____ ______ will cover personal property of a guest or servant while on the described premises.

Back 39

Personal Property

Front 40

True or False

Under a DP-3 (Special Form), fixtures that are a part of a dwelling which is not under construction or that has not been vacant for more than 30 days are covered for theft.

Back 40

True

Front 41

The _____ ______ ______ _____ Endorsement provides inflation protection when attached to a Dwelling Policy.

Back 41

Automatic Increase in Insurance

Front 42

Smoke damage caused from nearby industrial operations (is/is not) covered under a DP-2 (Broad Form).

Back 42

Is Not

Front 43

True or False

The covered causes of loss constitute the major differences between the Dwelling Forms.

Back 43

True

Front 44

True or False

The DP-1 (Basic Form) applies coverage to property that is removed because it is endangered by a covered peril.

Back 44

True

Front 45

True or False

Coverage C under the Dwelling Forms extends to include personal property of a tenant or boarder of the insured.

Back 45

False

Front 46

In the event of a loss, the DP-2 (Broad Form) pays for damage to the dwelling on a ______ ______ basis.

Back 46

Replacement Cost

Front 47

True or False

Farm dwellings are eligible to be written under the Dwelling Forms.

Back 47

False

Front 48

The _____ ______ ______ adds coverage for bodily injury and property damage liability when attached to the Dwelling Forms.

Back 48

Personal Liability Supplement

Front 49

True or False

The Earth Movement exclusion does not exclude damage by an explosion that ensures from the earth movement.

Back 49

True

Front 50

A Dwelling Form that has an Automatic Increase in Insurance Endorsement attached in the amount of 4% is written for $40,000 on January 1st. There is a loss to the dwelling that same year on July 1st. What is the limit of insurance on the dwelling at the time of the loss?

Back 50

$40,800

Front 51

Under the Dwelling Forms, is it permissible for the insured to rent a private garage to another for garage purposes? Yes or No

Back 51

Yes

Front 52

True or False

The land under the dwelling is not covered as a part of Coverage A (Dwelling) under the Dwelling Forms.

Back 52

True

Front 53

Does a detached garage that is used to store commercial equipment qualify for coverage under Coverage B (Other Structures) of the Dwelling Forms? Yes or No

Back 53

Yes

Front 54

Under the Broad Theft Endorsement, is off-premises coverage allowed without the purchase of on-premises coverage. Yes or No

Back 54

No

Front 55

True or False

When adding the Dwelling Under Construction Endorsement to the Dwelling Forms, premium is based on an average amount of insurance during construction.

Back 55

True

Front 56

True or False

The HO-6 (Condominium Unit-Owners Form) provides coverage for common grounds which are next to the insured's property.

Back 56

False

Front 57

True or False

The HO-3 policy provides theft coverage for building supplies that are next to the house which are to be used in construction.

Back 57

False

Front 58

The Ho-4 policy provides _____ ______ peril coverage on the personal property.

Back 58

Broad Named

Front 59

True or False

The HO ('00) Series policies include looting or theft of property following damage caused by a covered peril.

Back 59

True

Front 60

The ____ of ____ determines the premium charged under the Home Day Care Endorsement.

Back 60

Number of Children

Front 61

The territorial limits for personal property under the Homeowners policy is ______.

Back 61

Worldwide

Front 62

Under the Homeowners policy, vandalism and malicious mischief coverage is excluded if the property is _____ for more than 60 days.

Back 62

Vacant

Front 63

True or False

An insured's camera that is stolen by a visitor would be covered under the Homeowners policy.

Back 63

True

Front 64

Would a televison set be covered on a replacement cost basis under the Replacement Cost Endorsement? Yes or No

Back 64

Yes

Front 65

True or False

If an insured has maintained heat in an unoccupied dwelling, damage caused by freezing of the plumbing system would be covered under the HO-3 policy.

Back 65

True

Front 66

An insured has a Homeowners policy and suffers a direct loss causing the insured to seek other living arragements. The insured's normal household expense is $500 per month. However, the new arrangements cost $700 per month. How much will the insured collect monthly from the Homeowner's policy?

Back 66

$200

Front 67

The perils included in the HO-3 policy for Coverages A and
B are the special _____perils.

Back 67

Open

Front 68

Additional Living Expense under a Homeowners policy is found in Coverage____.

Back 68

Coverage D-Additional Living Expenses

Front 69

Under the HO-2, would the explosion of a hot water heater that causes major damage to the house be covered? Yes or No

Back 69

Yes

Front 70

True or False

Under a Homeowners policy, landslides would be covered.

Back 70

False

Front 71

Are medical payments included under Section I of a Homeowners policy? Yes or No

Back 71

No

Front 72

The Ho-6 provides ____ ____ ____ peril coverage on personal property.

Back 72

Broad Form Named

Front 73

True or False

Under Section I of a Homeowners policy, there is a special limit for the theft of firearms?

Back 73

True

Front 74

Will a Homeowners ('00) Series policy provide coverage for a mudslide? Yes or No

Back 74

No

Front 75

A Homeowners policy that is written for $100,000 has the detached garage completely destroyed by fire. What is the most the policy will pay?

Back 75

10% - $10,000

Front 76

Under the Scheduled Personal Property Endorsement, newly acquired fine arts need to be reported to the insurer within ____ days.

Back 76

90 Days

Front 77

Do payments under Coverage D of the Homeowners policy affect the policy's liability limits? Yes or No

Back 77

No

Front 78

Is the backing up of sewers covered under a Homeowners policy? Yes or No

Back 78

No

Front 79

Does an HO-3 policy provide coverage against damage caused by falling objects? Yes or No

Back 79

Yes

Front 80

A homeowner has an insured loss of $10,000 damage to the home, $2,000 damage to personal property, and $2,000 additional living expenses. The policy caries a $100 deductible. How much will the policy pay?

Back 80

$13,900

Front 81

True or False

Under the Causes of Loss - Basic Form, smoke damage that is sudden and accidental is included as a covered peril.

Back 81

True

Front 82

True or False

The Causes of Loss - Basic Form includes the peril of lightning.

Back 82

True

Front 83

Necessary additional expenses that are incurred during the period of restoration are included under the _____ ____ Coverage Form.

Back 83

Extra Expense

Front 84

The _____ or ______ Coverage Endorsement provides coverage for increased costs of repairing or reconstructing a damaged building because of laws that relate to construction of a building.

Back 84

The Ordinance or Law Coverage

Front 85

True or False

Under the Causes of Loss - Earthquake Form, coverage is provided for losses that occur during the policy period.

Back 85

True

Front 86

True or False

Underground pipes, flues, and drains are considered covered property, by the definition of a covered building, under the Building and Personal Property Coverage Form.

Back 86

False

Front 87

True or False

Under a Commerical Builders Risk Coverage Form, coverage is written equivalent to 100% coinsurance.

Back 87

True

Front 88

Under a Commercial Builders Risk Coverage Form, a building is valued at $200,000 at the time of loss. The limit of insurance was $100,000 with a deductible of $500, when a $20,000 loss occurs. The policy will pay$_______.

Back 88

$9,500

Front 89

Is there coverage for temporary plates, boarding up of openings, and removal of obstructions, other than window displays, under the Causes of Loss - Speical Form? Yes or No

Back 89

Yes

Front 90

Is Coinsurance found in the Common Policy Conditions to the Commercial Package Policy? Yes or No

Back 90

No

Front 91

Under a Commercial Package Policy, does the insurer have the right to audit the insured's books and records?

Back 91

Yes

Front 92

True or False

Under a Commercial Package Policy, the Vacancy Clause excludes coverage for vandalism if a property has been vacant 60 days or more.

Back 92

True

Front 93

True or False

Under the Building and Personal Property Coverage Form, Business Personal Property includes property the insured owns and uses in business.

Back 93

True

Front 94

Does the Ordinance or Law Coverage Endorsement include reconstruction costs due to pollution laws? Yes or No

Back 94

No

Front 95

A fire damages a store, and it takes 30 days for repairs. ____ _____ coverage pays for loss of income during these 30 days.

Back 95

Time Element

Front 96

True or False

The Causes of Loss - Basic Form includes earthquakes.

Back 96

False

Front 97

True or False

Under the Causes of Loss-Broad Form, coverage will cover water damage caused by accidental discharge, including the cost to tear out a part of the building to repair damage.

Back 97

True

Front 98

True or False

Under the Building and Personal Property Coverage Form, preservation of property does not increase the limit of insurance.

Back 98

True

Front 99

True or False

Under the Building and Personal Property Coverage Form, the fire department service charge is in addition to the limits of insurance.

Back 99

True

Front 100

True or False

Under the Business Income Coverage Form, coverage includes direct damage to real property.

Back 100

False

Front 101

True or False

In the event of double coverage with the Condominium Association Coverage Form, the Condominium Commerical Unit-Owners Coverage Form acts as primary insurance.

Back 101

False

Front 102

True or False

Under the Building and Personal Property Coverage Form, automobiles held for sale are covered as business personal property.

Back 102

False

Front 103

True or False

Under the Peak Season Limit of Insurance Endorsement, the insured chooses the property to be increased in value, the amount of insurance, and the applicable time period.

Back 103

True

Front 104

Inland Marine policies generally cover property that is on _____ only.

Back 104

Land

Front 105

Those that desire to insure a single shipment should purchase a _____ ______ Coverage Form.

Back 105

Trip Transit

Front 106

For the Contractor's Euipment Floater to cover newly acquired equipment, the purchase must be reported by the insured to the insurer within ____ days.

Back 106

60 Days

Front 107

True or False

The insureable interest of a shipper is covered under a Motor Truck Cargo Policy Shipper's Form.

Back 107

True

Front 108

The 2 types of Bill of Lading are _______ and _______.

Back 108

Straight and Released

Front 109

Generally, what are the territorial limits of the Contractors Equipment Floater?

Back 109

United States Properties, Canada and Puerto Rico

Front 110

Would a Jeweler's Block Coverage Form include coverage for ruby earrings owned by the insured and worn by a salesperson? Yes or No

Back 110

No

Front 111

Would a retail shoe store purchase bailee coverage? Yes or No

Back 111

No

Front 112

True or False

The Equipment Dealer's Coverage Form covers office equipment.

Back 112

False

Front 113

Would the Accounts Receivable Coverage Form cover loss of records resulting from the collapse of a building damaged by fire? Yes or No

Back 113

Yes

Front 114

Under the Electronic Data Processing Form, hardware and software must be described where in the policy?

Back 114

Declarations

Front 115

What organization adopted the Nationwide Marine Definition to define classes of property to be insured under marine contracts?

Back 115

National Associated Insurance Commissioners

Front 116

A contractor should purchase what type of a coverage form to insure equipment used for electricity, heating, and plumbing, until control of the equipment is given to the owner of the building?

Back 116

Installation Floater

Front 117

A business that transports its own gooods with its own trucks would purchase a Motor Truck Cargo ____ ____.

Back 117

Motor Truck Cargo Owners Form

Front 118

When Inland Marine Coverage Forms are not filed with or through any rating bureau, they are called _______ forms.

Back 118

Uncontrolled Forms

Front 119

What coverage form would a contractor purchase to cover his backhoe from physical loss?

Back 119

Contractor's Equipment Form

Front 120

All "breakdowns" that manifest themselves at the same time and are the direct result of the same cause are considered "_____ ______".

Back 120

One Breakdown

Front 121

True or False

Under the Equipment Breakdown Protection Coverage Form, "breakdown" includes electrical failure and arcing damaging a covered item.

Back 121

True

Front 122

What coverage is provided under the Equipment Breakdown Protection Coverage Form for a "breakdown" caused by windstorm or hail?

Back 122

None

Front 123

Would an Equipment Breakdown Protection Coverage Form provide coverage during electrical or pressure testing? Yes or No

Back 123

No

Front 124

Which of the following is considered a "breakdown" under an Equipment Breakdown Protection Coverage Form?
A) Damage to any vacuum tube, gas tube, or brush.
B) Leakage at any valve.
C) Mechanical failure, including rupture or bursting cased by centrifugal force.
D) The functioning of any safety device.

Back 124

C) Mechanical failure, including rupture or bursting caused by centrifugal force.

Front 125

True or False

Coverage under the Equipment Breakdown Protection Coverage Form is provided as a result of any error or unintentional omission by the insured in the reporting of valves or the coverage the insured requested.

Back 125

False

Front 126

True or False

"Covered Property" under the Equipment Breakdown Protection Coverage Form is defined as property the insured owns, or property that is in the insured's care, custody, or control and for which the insured is legally liable.

Back 126

True

Front 127

Does the Farm Property coverage Form provide coverage for refrigerators?

Back 127

Yes

Front 128

True or False

Under a Crop Hail policy, the replanting clause states that any reimbursement to the insured for replanting will reduce the amount of insurance.

Back 128

False

Front 129

True or False

Coverage G or the Farm Property Coverage Form does not include field and pasture fences.

Back 129

True

Front 130

True or False

The Livestock Coverage Form will cover collision causing death of covered livestock.

Back 130

True

Front 131

True or False

Under the Mobile Agricultural Machinery and Equipment Coverage Form, coverage may be written on either a blanket or scheduled basis.

Back 131

True

Front 132

Under the Livestock Coverage Form, newly acquired livestock are automatically covered up to ______ days.

Back 132

30 Days

Front 133

Does the Farm Property Coverage Form cover riot and civil commotion? Yes or No

Back 133

Yes

Front 134

True or False

Under Coverage E of the Farm Property Coverage Form,scheduled farm personal property has a limit of insurance that applies for each class of property.

Back 134

True

Front 135

True or False

Farm machinery that is on or away from the described premises is covered under Coverage F of the Farm Property Coverage Form.

Back 135

True

Front 136

True or False

Coverage D, Loss of Use, will provide coverage when t is necessary for the insured to live elsewhere because of a covered loss.

Back 136

True

Front 137

True or False

Wheat, barley and grain sorghum are all considered small grains crop by definition.

Back 137

False

Front 138

Multi-Peril Crop Insurance is reinsured by the ______ ______ ______ ______.

Back 138

Federal Crop Insurance Corporation

Front 139

True or False

The Special Casues of Loss Form provides open peril coverage on livestock.

Back 139

False

Front 140

True or False

The Broad Form provides coverage for the accidental shooting of livestock.

Back 140

True

Front 141

True or False

Coverage under a Crop Hail policy is written on an annual policy term.

Back 141

False

Front 142

The _____ _____ insured is the one who must request changes in the Businessowners Policy.

Back 142

First Named Insured

Front 143

If the Business Personal Property Coverage equals ___% of the average monthly values of the preceding 12 months, an automatic ___% increase in Business Personal Property Coverage is provided to offset seasonal variations in stock values.

Back 143

100% of the average monthly values/ 25% increase in Business Personal Property

Front 144

True or False

A manufacturer is not eligible to be written on a Businessowners Policy.

Back 144

True

Front 145

The insurer may cancel a Businessowners Policy if the building has been vacant or unoccupied for ___ or more consecutive days.

Back 145

60 or more consecutive days.

Front 146

Mercantile risks that exceed _______ square feet are not eligible for a Businessowners Policy.

Back 146

25,000 square feet

Front 147

A gas explosion (would/would not) be covered under the Businessowners Coverage Form.

Back 147

Would be covered

Front 148

Under the Businessowners Coverage Form, is debris removal covered under the Additional Coverages or Optional Coverages?

Back 148

Additional Coverages

Front 149

Office buildings that do not exceed ___ stories in height or ________ square feet in total floor area are eligible under the Businessowners Policy.

Back 149

6 stories in height or 100,000 square feet in total floor area

Front 150

True or False

The Businessowners Policy does not automatically include Employee Dishonesty Coverage.

Back 150

True

Front 151

The Businessowners Policy allows the insurer to examine the insured's books and records up to ____ years after the policy period.

Back 151

3 years

Front 152

Are credit unions eligible to be insured under the Businessowners Policy? Yes or No

Back 152

No

Front 153

Under the Businessowners Policy, are signs which are attached to the building covered? Yes or No

Back 153

Yes

Front 154

The Businesowner Protection Safeguards Endorsement requires the insured to notify the insurer if the automatic sprinkler system is off for more than ____ hours.

Back 154

48 hours

Front 155

The Businessowners Policy acts as ______ insurance over any other collectible insurance.

Back 155

Excess Insurance

Front 156

The Businessowners Policy will cover damage to the building based on a _______ ________ method of valuation.

Back 156

Replacement Cost

Front 157

Are auto dealerships eligible for coverage under the Businessowners Policy? Yes or No

Back 157

No

Front 158

True or False

The Businessowners Policy will pay for damage to the insured property caused by power failure occurring on or away from the insured premises.

Back 158

False

Front 159

True or False

Under the Businessowners Policy, does the definition of Valuable Papers and Records include "money" and "securities"? Yes or No

Back 159

No

Front 160

Under the Businessowners Policy ('02) edition, property coverage is offered on an ______ peril basis, with _____ peril coverage available by endorsement.

Back 160

an open peril basis, with named peril coverage

Front 161

Would a lawn sprinkler installation contractor with an annual payroll of $400,000 be an eligible risk under the Businessowners Policy? Yes or No

Back 161

No

Front 162

What deductible amount applies to the Additional Coverages of Business Income and Extra Expense?

Back 162

None

Front 163

A mercantile risk has a Businessowners Policy with a $250 deductible, and no Optional Coverages. A burglar steals $10,000 worth of equipment and $3,000 cash. How much will the policy pay?

Back 163

$9,750

Front 164

The ______ ______ insured is responsible for the payment of all premiums, and will be the payee for any return premium.

Back 164

First Named

Front 165

Would a ceiling and dry wall installation contractor with total annual gross receipts of $2,500,000 be an eligible risk under the Businessowners Policy? Yes or No

Back 165

Yes

Front 166

Wharves, piers, and docks (are/are not) covered under a National Flood Insurance Program.

Back 166

Are Not

Front 167

______ Insurance includes physical damage to machinery and fitting of the vessel.

Back 167

Hull Insurance

Front 168

True or False

Mudflow is a covered peril under the National Flood Insurance Program.

Back 168

True

Front 169

True or False

Aircraft Hull Insurance includes passenger liability coverage.

Back 169

False

Front 170

Would the Flood Policy cover a flood that is confined to the insured's premises?

Back 170

No

Front 171

Are kitchen appliances covered under the National
Flood Insurance Program? Yes or No

Back 171

Yes

Front 172

True or False

The National Flood Insurance Program is available for private dwellings only.

Back 172

False

Front 173

True or False

Individuals who own property in participating communities are eligible to purchase Flood Insurance.

Back 173

True

Front 174

True or False

If cargo is shipped FOB Point of Destination, the seller retains the cost of transportation and insurance during shipping.

Back 174

True

Front 175

True or False

In Aircraft Hull Insurance, the application requires the insured to specify that the aircraft has an Airworthiness Certificate.

Back 175

True

Front 176

True or False

The National Flood Insurance Policy covers water damage from a sewer.

Back 176

False

Front 177

True or False

Most Boatowners policies provide physical damage coverage on an open peril basis.

Back 177

True

Front 178

Under a Musical Instrument Floater, how many days is there automatic coverage for newly acquired musical instruments?

Back 178

30 Days

Front 179

The Fine Arts Floater provides automatic coverage for _____ days for newly acquired items.

Back 179

90 Days

Front 180

The Transportation/Permission to Move Endorsement provides coverage for the collision, upset, stranding, or sinking of a mobile home that is being moved to a new location for up to ____ days.

Back 180

30 Days

Front 181

Attached structures and utility tanks are insured as a Part of Coverage ____ under a Mobile Homeowners Policy.

Back 181

Coverage A

Front 182

_______ liability establishes that one can be held legally liable for the acts of another, such as a principal for the acts of its agents.

Back 182

Vicarious

Front 183

Under _______by Equal Shares, each insurer pays equally until the loss is paid or limits are exhausted.

Back 183

Contribution

Front 184

Would Bodily Injury Coverage also include a breach of contract? Yes or No

Back 184

No

Front 185

______Liabilty is the legal doctrine that holds a manufacturer legally liable for injuries to a customer whether or not the manfacturer's product was defective.

Back 185

Strict

Front 186

When the limits of bodily injury and property damage are specified separately, they are known as _______ limits.

Back 186

Split

Front 187

__________Defenses in liability insurance are deterined by the legislature.

Back 187

Statutory

Front 188

An unendorsed liability policyprovides coverage for ___________ torts.

Back 188

Unintentional

Front 189

True or False

Exclusions may deny coverage for certain locations as well as certain persons.

Back 189

True

Front 190

The statement that the insurer will pay those sums that the insured becomes legally obligated to pay is located in the _______ _______ part or portion of a liability policy.

Back 190

Insuring Agreement

Front 191

The largest potential for financial loss rests with ______ exposures.

Back 191

Liability

Front 192

An insured has a liability policy with a $300,000 limit. The insured incurs $50,000 of defense costs. How much is available to pay for any judgement?

Back 192

$300,000

Front 193

True or False

In establishing negligence in liability insurance, it helps if the claimant can prove the act was intentional.

Back 193

False

Front 194

________Negligence, under common law, denies recovery for damages caused by a negligent party if the claimant was also negligent.

Back 194

Contributory

Front 195

What liability-related term best describes the scenario whereby a person who daily inhales airborne fiberglass particles ultimately is afflicted with severe respiratory complications?

Back 195

Occurrence

Front 196

True or False

Bodily injury claims may include loss of earnings.

Back 196

True

Front 197

Under a liability policy, an assignment of interest takes effect after the ________ consents.

Back 197

Insurer

Front 198

True or False

Under Comparative Negligence, damages awarded vary depending on each state's statues.

Back 198

True

Front 199

True or False

Under a liability policy, exclusions are found in the conditions.

Back 199

False

Front 200

True or False

When a stairway does not contain enough lighting, the owner has not fulfilled the required standard of care.

Back 200

True

Front 201

True or False

A person is obligated to a certain standard of conduct for the protection of others by legal duty.

Back 201

True

Front 202

Do specific damages include pain and suffering? Yes or No

Back 202

No

Front 203

True or False

Supplementary payments are not paid in addition to other limits of liability.

Back 203

False

Front 204

True or False

Personal injury includes bodily injury.

Back 204

False

Front 205

What is the policy called that pays first with respect to other policies?

Back 205

Primary

Front 206

Does the definition of a business in an insurance policy include "hobby"? Yes or No

Back 206

No

Front 207

The dissemination of any written or printed material tending to unjustly injure a person's reputation, defines ________.

Back 207

Libel

Front 208

The process whereby an insurer seeks to recover against a third party that has caused it to pay a claim to its insured is known as ___________.

Back 208

Subrogation

Front 209

True or False

Under Section II of a Homeowners Policy, a secondary location that the insured uses for a business would be considered an insured location.

Back 209

True

Front 210

True or False

Under Section II of a Homeowners Policy, Damage to Property of Others (Additional Coverages) duplicates coverage that is included in Section I.

Back 210

False

Front 211

Under the Homeowners Policy, Medical Payments to Others applies to expenses that are incurred within ____ years of an accident.

Back 211

3 Years

Front 212

True or False

Section II of a Homeowners Policy covers damage to property of the insured.

Back 212

False

Front 213

True or False

Under the Homeowners Policy, Coverage E, bodily injury to a guest which caused by the insured's pet dog would be covered.

Back 213

True

Front 214

Would an insured's overnight guest be covered for medical payments under a Homeowners Policy? Yes or No

Back 214

Yes

Front 215

A household employee who is purchasing something for the insured would be considered a _________ employee.

Back 215

Residence

Front 216

Would a 12-foot kayak be considered automatically as covered watercraft under Section II of a Homeowners Policy? Yes or No

Back 216

Yes

Front 217

Would Medical Payment under Section II of a Homeowners Policy cover less of income of an injured person? Yes or No

Back 217

No

Front 218

________ exposures create the greatest possibility of financial loss to a homeowner.

Back 218

Liability

Front 219

Under a Homeowners Policy Coverage E, coverage ends when the amount of damages paid for the occurrence equals the limit of ______________.

Back 219

Liability

Front 220

Under the Business Pursuits Endorsement, must the business be named on the endorsement? Yes or No

Back 220

Yes

Front 221

Is a 22-year old exchange student considered to be an insured resident under a Hoeowners Policy?

Back 221

No

Front 222

First aid expenses under Section II of a Homeowners Policy would cover a neighbor who gets injured while helping the insured install a carpet. Yes or No

Back 222

Yes

Front 223

Under a Homeowners Policy, an accident that results in bodily injury or property damage is considered a(n) ___________.

Back 223

Occurrence

Front 224

True or False

A motorized golf cart used by a retired homeowner to make trips to the corner grocery would meet the definition of covered vehicle under Section II of a Homeowners Policy.

Back 224

False

Front 225

True or False

Damage caused intentionally by an insured who is 12 years of age would be covered under damage to Property of Others (Additional Coverages).

Back 225

True

Front 226

True or False

An individual cementary plot owned by the insured that is located in Utah qualifies as an insured location under the Homeowners Policy.

Back 226

True

Front 227

True or False

Malicious prosecution would meet the definition of personal injury and be covered act under the Personal Injury Endorsement.

Back 227

True

Front 228

True or False

Property damage caused by the insured while operating a temporary substitue vehicle is covered under the Personal Auto Policy.

Back 228

True

Front 229

Part A - Liability Coverage of a Personal Auto Policy includes both ______ ______ and _____ ______ coverage.

Back 229

Bodily Injury (BI) and Property Damage (PD)

Front 230

True or False

Physical damage coverage under the Personal Auto Policy includes damages to the owned auto as the result of theft.

Back 230

True

Front 231

The Named Nonowner Endorsement may be used to provide Liability, ______ ______, and _______ Motorists coverages.

Back 231

Medical Payment/ Uninsured Motorists coverages.

Front 232

Would damage to a rented garage by the insured vehicle be covered under Part A-Liability Coverage of a Personal Auto Policy? Yes or No

Back 232

Yes

Front 233

True or False

Under the Personal Auto policy, a motorcycle would be included in the definition of newly acquired auto.

Back 233

False

Front 234

True or False

Part A-Liability Coverage of a Personal Auto Policy would both property damage and bodily injury liability in the event that the insured's 16-year old son was driving the car.

Back 234

True

Front 235

The towing and Labor Endorsement limit applies per ________.

Back 235

Occurrence

Front 236

If an insured, who has an auto policy that provides for physical damage, hits a tree while driving a borrowed car, the damage would probably be covered under the _______ part of Coverage for Damage to Your Auto.

Back 236

Collision

Front 237

Auto ________ coverage would provide coverage when the insured is involved in an at-fault accident.

Back 237

Liability

Front 238

True or False

Collision damage that occurs when a covered auto is being used in a share-the-expense car pool would be covered.

Back 238

True

Front 239

True or False

Defense claims to cover excluded losses are not included under the Part A - Liability Coverage Insuring
Agreement of an auto policy.

Back 239

True

Front 240

True or False

The Miscellaneous Type Vehicle Endorsement is not intended to be used for snowmobiles.

Back 240

True

Front 241

Is a vehicle owned by a self-insurer considered to be an uninsured motor vehicle? Yes or No

Back 241

No

Front 242

The upset or overturn of a vehicle is covered under _______.

Back 242

Collision

Front 243

An insured has an accident with a rental vehicle that takes 20 days to repair. What will be paid for loss of use?

Back 243

$0.00

Front 244

________ Coverage applies when the Extended Non-Owned Coverage for a Named individual is used.

Back 244

Liability

Front 245

The _____ _____ Endorsement can be purchased when 2 or more persons, other than a married couple, desire to purchase auto coverage.

Back 245

Joint Ownership

Front 246

True or False

A small pickup truck would qualify for the Personal Auto Policy.

Back 246

True

Front 247

True or False

Underinsured Motorists Coverage protects the insured when the other driver's car has inadequate Bodily Injury Coverage.

Back 247

True

Front 248

______ _______ laws are designed to protect an insured when involved in an accident with drivers who have no insurance.

Back 248

Uninsured Motorist

Front 249

Would a mechanic who is test driving an insured auto be considered an insured under the Personal Auto Policy? Yes or No

Back 249

No

Front 250

Would an insured's Uninsured Motorists Coverage protect the drive of the uninsured vehicle?

Back 250

No

Front 251

Deductibles in auto insurance tend to _______ premiums.

Back 251

Lower premiums

Front 252

When an insured is involved with a hit-and-run driver, he/she must promptly notify the _________.

Back 252

Police

Front 253

True or False

A non-endorsed Personal Auto Policy provides coverage in Mexico.

Back 253

Fasle

Front 254

A Personal Auto Policy is written with a single limit of $100,000 for Liability. There are 6 people injured for a total of $150,000. How much will the policy pay?

Back 254

$100,000

Front 255

What endorsement is typically used to establish the value of an antique or classic automobile at policy inception?

Back 255

State Amount Endorsement

Front 256

In order to add the Rental Reimbursement Coverage Endorsement, the insured must first purchase what Part of Personal Auto Policy?

Back 256

Part D

Front 257

True or False

Year, Make and Model are typically not used when rating Liability coverage under an auto policy.

Back 257

True

Front 258

Under the Personal Auto Policy, legal action may not be brought against the insurer, by the insured until the _______ has fully complied with all the terms of the policy.

Back 258

Insured

Front 259

Under the Garage Coverage Form, Covered autos of dealers are usually written on a _______ basis.

Back 259

Blanket

Front 260

True or False

Under a Business Auto Coverage Form, the Conditions also include a Declarations section.

Back 260

False

Front 261

True or False

Section II-Liability of a Garage Coverage Form includes product recall.

Back 261

False

Front 262

True or False

A street sweeper would be included in the definition of a covered auto under the Business Auot Coverage Form.

Back 262

True

Front 263

An employer who wants to be covered when employees use their own autos in the employer's business should purchase the _____ _____ Only symbol.

Back 263

Nonowned Autos

Front 264

Auto dealers should insure their autos in stock on a ______ ______ ______ basis, because of fluctuations in stock on a monthly basis.

Back 264

Value Reporting Form

Front 265

True or False

Bodily injury under the Business Auto Coverage Form would cover a pedestrian who is struck by a covered auto.

Back 265

True

Front 266

Section II-Liability of the Business Auto Coverage Form, would cover property damage to a non-owned building that is run into by an insured auto.

Back 266

True

Front 267

Truckers that transport goods or commodities of others should purchase the ______ Coverage Form.

Back 267

Truckers

Front 268

True or False

The Business Auto Coverage Form will cover liability assumed under any contract that is not an insured contract under Section II-Liability.

Back 268

False

Front 269

True or False

Physical Damage Coverage under the Business Auto Coverage Form includes coverage for mechanical breakdown.

Back 269

False

Front 270

True or False

Liability Coverage under the Business Auto Coverage Form includes Physical Damage Coverage.

Back 270

False

Front 271

Would power cranes be considered a covered auto under the Business Auto Coverage Form? Yes or No

Back 271

No

Front 272

True or False

Physical Damage Coverage under the Business Auto Coverage Form includes losses caused by freezing.

Back 272

False

Front 273

True or False

Hired and nonowned autos may be covered under the Business Auto Coverage Form by indicating the appropriate symbol on the Declarations.

Back 273

True

Front 274

Medical expenses must be incurred within ____ years of an accident to be eligible for coverage under the Auto Medical Payments Endorsement.

Back 274

3 years

Front 275

What endorsement would an insured purchase to protect employees as insureds, when employees use their own autos in the course of the insured's business?

Back 275

Employee As Additional Insured

Front 276

True or False

The MCS-90 Endorsement provides evidence of financial responsibility on behalf of the motor carrier to the ICC (Interstate Commerce Commission).

Back 276

True

Front 277

True or False

The Business Auto Coverage Form automatically includes Uninsured Motorists Coverage.

Back 277

False

Front 278

What endorsement is commonly used where a sole proprietor or partner desires to let family members drive their business autos?

Back 278

Individual Named Insured

Front 279

Would the peril of lightening be covered under Specified Causes of Loss Coverage of the Business Auto Coverage Form? Yes or No

Back 279

Yes

Front 280

______ coverage is the broadest Physical Damage Coverage under the Business Auto Coverage Form.

Back 280

Comprehensive

Front 281

True or False

An employee injured in an auto accident while on company business would be covered un Worker's Compensation.

Back 281

True

Front 282

Does Section II-Liability of the Business Auto Coverage Form include liability for mobile equipment while it is carried or towed by a covered auto? Yes or No

Back 282

Yes

Front 283

Under Physical Damage Coverage of the Business Auto Coverage Form, what coverage would cover falling objects damage to an insured vehicle?

Back 283

Comprehensive

Front 284

True or False

Advertising Injury does not include wrongful entry.

Back 284

True

Front 285

Those who sell liquor by the drink should purchase a ______ _______ Liability policy.

Back 285

Dram Shop

Front 286

Under a Commercial General Liability Coverage Part with a General Aggregate Limit of $300,000 and an Occurrence Limit of $100,000, an occurrence with a $200,000 loss is followed by a second occurrence with a $100,000 loss in the same policy period. How much of the General Aggregate Limit is available after the second loss?

Back 286

$100,000

Front 287

True or False

Products and Completed Operations Coverage has its own Aggregate Limit for Insurance.

Back 287

True

Front 288

True or False

The Pollution Liability Coverage Form includes a leak from a waste disposal facility that is located on the premises.

Back 288

True

Front 289

True or False

Under an Occurrence Form, a claim need not be reported or made during the same policy period in which it occurred.

Back 289

True

Front 290

True or False

A plumber that causes water damage to a customer's house, while repairing the plumbing, would have coverage under the Commercial General Liability Policy Part of the Commerical Package Policy.

Back 290

True

Front 291

True or False

The Supplemental Extended Reporting Period to a Claims-Made must be added by endorsement.

Back 291

True

Front 292

Does the Liquor Liability Exclusion apply to a building owner who leases space to a bar? Yes or No

Back 292

No

Front 293

A policy has a Product and Completed Operations Aggregate Limit of $100,000 and a $20,000. Each Occurrence Limit. There is an occurrence that results in $25,000 in damages, and another occurrence follows that results in $15,000 in damages. How much of the General Aggregate Limit remains for future occurrences in the same policy period?

Back 293

$65,000

Front 294

________ Coverage applies when the Extended Non-Owned Coverage for a Named individual is used.

Back 294

Liability

Front 295

The _____ _____ Endorsement can be purchased when 2 or more persons, other than a married couple, desire to purchase auto coverage.

Back 295

Joint Ownership

Front 296

True or False

A small pickup truck would qualify for the Personal Auto Policy.

Back 296

True

Front 297

True or False

Underinsured Motorists Coverage protects the insured when the other driver's car has inadequate Bodily Injury Coverage.

Back 297

True

Front 298

______ _______ laws are designed to protect an insured when involved in an accident with drivers who have no insurance.

Back 298

Uninsured Motorist

Front 299

Would a mechanix who is test driving an insured auto be considered an insured under the Personal Auto Policy? Yes or No

Back 299

No

Front 300

Would an insured's Uninsured Motorists Coverage protect the driver of the uninsured vehicle?

Back 300

No

Front 301

Deductibles in auto insurance tend to _______ premiums.

Back 301

Lower premiums

Front 302

When an insured is involved with a hit-and-run driver, he/she must promptly notify the _________.

Back 302

Police

Front 303

True or False

A non-endorsed Personal Auto Policy provides coverage in Mexico.

Back 303

Fasle

Front 304

A Personal Auto Policy is written with a single limit of $100,000 for Liability. There are 6 people injured for a total of $150,000. How much will the policy pay?

Back 304

$100,000

Front 305

What endorsement is typically used to establish the value of an antique or classic automobile at policy inception?

Back 305

State Amount Endorsement

Front 306

True or False

Year, make and model are typically not used when rating Liability coverage under an auto policy.

Back 306

True

Front 307

Under the Personal Auto Policy, legal action may not bve brought against the insurer, by the insured, until the ______ has fully complied with all the terms of the policy.

Back 307

Insured

Front 308

Under the
Garage Coverage Form, covered autos of dealers are usually written on a ______ basis.

Back 308

Blanket

Front 309

True or False

Under a Business Auto Coverage Form, the Conditions also include a Declarations section.

Back 309

False

Front 310

True or False

Section II-Liability of a Garage Coverage Form includes product recall.

Back 310

False

Front 311

True or False

A street sweeper would be included in the definition of a covered auto under the Business Auto Coverage Form.

Back 311

True

Front 312

An employer who wants to be covered when employees use their own autos in the employer's business should purchase the _______ ______ Only symbol.

Back 312

#8 Non-owned Auto

Front 313

Auto dealers should insure their autos in stock on a ______ ______ ______ basis, because of fluctuations in stock on a monthly basis.

Back 313

Value Reporting Form

Front 314

True or False

Bodily injury under the Business Auto Coverage Form would cover a pedestrian who is struck by a covered auto.

Back 314

True

Front 315

Section II-Liability of the Business Auto Coverage Form, would cover property damage to a nonowned building that is run into by an insured auto.

Back 315

True

Front 316

Truckers that transport goods or commodities of others should purchase the _______ Coverage Form.

Back 316

Truckers

Front 317

True or False

The Business Auto Coverage Form will cover liability assumed under any contract that is not an insured contract under Section II-Liability.

Back 317

False

Front 318

True or False

Physical Damage cCoverage under the Business Auto Coverage Form includes coverage for mechanical breakdown.

Back 318

False

Front 319

True or False

Liability Coverage under the Business Auto Coverage Form includes Physical Damage Coverage.

Back 319

False

Front 320

Would power cranes be considered a covered auto under the Business Auto Coverage Form? Yes or No

Back 320

No

Front 321

True or False

Physical Damage Coverage umder the Business Auto Coverage Form includes losses caused by freezing.

Back 321

False

Front 322

True or False

Hired and nonowned autos may be covered under the Business Auto Coverage Form by indicating the appropriate symbol on the Declarations.

Back 322

True

Front 323

Medical expenses must be incurred within ____ years of an accident to be eligible for coverage under the Auto Medical Payments Endorsement.

Back 323

3 years

Front 324

What endorsement would an insured purchase to protect employees as insureds, when employees use their own autos in the course of the insured's business?

Back 324

Employee As Additional Insured

Front 325

True or False

The MCS-90 Endorsement provides evidence of financial resposnibility on behalf of the motor carrier to the ICC (Interstate Commerce Commission).

Back 325

True

Front 326

True or False

The Business Auto Coverage Form automatically includes Uninsured Motorists Coverage.

Back 326

False

Front 327

What endorsement is commonly used where a sole proprietor or partner desires to let family members drive their business autos?

Back 327

Individual Named Insured

Front 328

Would the peril of lightening be covered under Specified Causes of Loss Coverage of the Business Auto Coverage Form? Yes or No

Back 328

Yes

Front 329

_______ coverage is the broadest Physical Damage Coverage under the Business Auto Coverage Form.

Back 329

Comprehensive

Front 330

True or False

An employee injured in an auto accident while on company business would be covered under Worker's Compensation.

Back 330

True

Front 331

Does Section II-Liability of the Business Auto Coverage Form include liability for mobile equipment while it is carried or towed by a covered auto? Yes or No

Back 331

Yes

Front 332

Under Physical Damage Coverage of the Business Auto Coverage Form, what coverage would cover falling objects damage to an insured vehicle?

Back 332

Comprehensive

Front 333

True or False

Advertising Injury does not include wrongful entry.

Back 333

True

Front 334

Those who sell liquor by the drink should purchase a ______ ______ Liability policy.

Back 334

Dram Shop Liability Policy

Front 335

Under a Commercial General Liability Coverage Part with a General Aggregate Limit of $300,000 and an Occurrence Limit of $100,000 an occurrence with a $200,000 loss is followed by a second occurrence with a $100,000 loss in the same policy period. How much of the General Aggregate Limit is available after the second loss?

Back 335

$100,000

Front 336

True or False

Products and Completed Operations Coverage has its own Aggregate Limit for Insurance.

Back 336

True

Front 337

True or False

The Pollution Liability Coverage Form includes a leak from a waste disposal facility that is located on the premises.

Back 337

True

Front 338

True or False

Under an Occurrence Form, a claim need not be reported or made during the same policy in which it occurred.

Back 338

True

Front 339

True or False

A plumber that causes water damage to a customer's house, while repairing the plumbing, would have coverage under the Commercial General Liability Policy Part of the Commercial Package Policy.

Back 339

True

Front 340

True or False

The Supplemental Extended Reporting Period to a Claims-Made Form must be added by endorsement.

Back 340

True

Front 341

Does the Liquor Liability Exclusion apply to a building owner who leases space to a bar?

Back 341

No

Front 342

A policy has a Product and Completed Operations Aggregate Limit of $100,000 and a $20,000 each Occurrence Limit. There is an occurrence that results in $25,000 in damages, and another occurrence follows that results in $15,000 in damages. How much of the General Aggregate Limit remains for future occurrences in the same policy period?

Back 342

$65,000

Front 343

True or False

Personal Injury by definition includes malicious prosecution and invasion of privacy.

Back 343

True

Front 344

The Basic Extended Reporting of the Claims-Made Form covers claims made after the end of the policy period for occurrences reported when?

Back 344

Within 60 days

Front 345

True or False

The General Aggregate Limit of the Supplemental Extended Reporting Period Endorsement equals the General Aggregate Limit shown in the Declarations of the expired policy.

Back 345

True

Front 346

True or False

Both the Pollution Liability Coverage Form and the Limited Pollution Liability Coverage Form cover clean up at the government's request.

Back 346

False

Front 347

Under Products Liability Coverage, is damage to the product itself covered? Yes or No

Back 347

No

Front 348

Under the Commercial General Liability Coverage Part, is a temporary worker considered an employee? Yes or No

Back 348

No

Front 349

True or False

Under a Commercial General Liability Coverage Part, Products and Completed Operations Coverage has a limit for each occurrence.

Back 349

True

Front 350

Under Coverage C (Medical Expense), expenses must have been incurred and reported within what time frame to be covered by the Commercial General Liability Coverage Part of the Commercial Package Policy?

Back 350

1 year

Front 351

True or False

A tenant of the insured would be covered for medical expenses under Coverage C.

Back 351

False

Front 352

Is a loss from an unauthorized transfer of property from outside the premises included under Form D - Robbery & Safe Burglary - Property Other Than Money and Securities? Yes or No

Back 352

No

Front 353

True or False

Evidences of Debt are included in the definition of "money" under the Commercial Crime Coverage Part.

Back 353

False

Front 354

A person the insured retains to have care and custody of property inside the premises but has no other duties defines a ________.

Back 354

Watchperson

Front 355

True or False

The amount of loss for property, other than money or securities, is determined by the market value of the property.

Back 355

False

Front 356

True or False

Crime Coverage Form C includes fire damage to the premises caused by intruders following a break-in.

Back 356

False

Front 357

Is a Cause of Loss Form needed in the Commercial Crime Coverage Part to the Commercial Package Policy? Yes or No

Back 357

No

Front 358

Under the Commercial Crime General Provisions Form, the discovery period is limited to not later than ______ ______ after the end of the policy.

Back 358

1 year

Front 359

Computer fraud is defined as theft of property following and directly related to the use of any computer to fraudulently cause a transfer from _______ the premises to a person _______ the premises.

Back 359

Inside the premises/ Outside the premises

Front 360

True or False

Under a Commercial Crime General Provisions Form, there is a government action exclusion.

Back 360

True

Front 361

The taing of property from inside the premises by a person unlawfully entering or leaving the premises as evidenced by visible signs of forced entry or exit, defines _________.

Back 361

Premises Burglary

Front 362

Under the Commercial Crime General Provisions Form, the definition of employee stipulates a person remains an employee for a period of _____ days after temination of service.

Back 362

30 days

Front 363

True or False

Crime Coverage Form L - Guests' Property, requires that the guest must prove negligence on the part of the insured, in order for it to pay.

Back 363

True

Front 364

The surrender of property away from the premises because of a threat communicated to the insured to do bodily harm to an insured or an employee, orto a relative or invitee of either, who is or allegedly is being held captive, defines ____________.

Back 364

Extortion

Front 365

Non-owned auto liability (is/is not) automatically included in the Businessowners Coverage Form Section II - Liability.

Back 365

Is Not

Front 366

True or False

The Limits of Insurance for Section II - Liability, apply separately to each consecutive annual period.

Back 366

True

Front 367

True or False

Under the Businessowners Coverage Form Section II - Liability, Worker's Compensation coverage is not included.

Back 367

True

Front 368

True or False

Under the Businessowners Coverage Form Section II-Liability, in the event of a claim, when?

Back 368

As Soon As Possible

Front 369

True or False

Bodily injury or property damage during the policy period that falls within the products/completed operations hazard is twice the Liability and Medical Expenses limit shown in the Declarations.

Back 369

True

Front 370

Under Medical Expenses Coverage of Section II - Liability of the Businessowners Coverage Form, the expense must occur within _____year(s) of the accident.

Back 370

1 year

Front 371

Is bodily injury covered under the Businessowners Coverage Form Section II-Liability, which results from the parking of an auto on the insured's premises when the autois not owned by or rented to an insured?

Back 371

Yes

Front 372

Is liability assumed under an insured contract covered under the Businessowner Coverage Form Section II-Liability?

Back 372

Yes

Front 373

True or False

Costs associated with the recall of faulty products built or manufactured by the insured are covered under Section II - Liability of the Businessowners Coverage Form.

Back 373

False

Front 374

Does an unendorsed Businessowners Coverage Form Section II -Liablity, cover professional services of a pharmacist? Yes or No

Back 374

No

Front 375

Does the Businessowner Coverage Form Sction II - Liability, include vending machines used to distribute the product as "product"? Yes or No

Back 375

No

Front 376

Does the Hired and Non-owned Auto Endorsement include damage caused by an employee during the course of employment? Yes or No

Back 376

Yes

Front 377

True or False

Employer's Liability is not included in Section II - Liability, of the Businessowners Coverage Form.

Back 377

True

Front 378

Do volunteer workers, while perfoming duties related to the conduct of the named insured's business, also qualify as an insured under Section II - Liability of the Businessowners Coverage Form? Yes or No

Back 378

Yes

Front 379

True or False

Bodily injury that would not have occurred, in whole or in part, but for the actual, alleged, or threatened inhalation or exposure to fungi or bacteria is automatically covered under Section II-Liability of the Businessowners Coverage Form.

Back 379

False

Front 380

True or False

States that have compulsory Worker's Compensation Law require employers to provide benefits to their employees with insurance, or must demonstrate the ability to provide required benefits.

Back 380

True

Front 381

True or False

The federal Worker's Compensation Law that applies to the crews of ocean vessels is known as The U.S. Longshoremen and Harbor Worker's Compensation Act.

Back 381

False

Front 382

Under Worker's Compensation Insurance, the main purpose of the classification rating method is to categorize employees according to their __________ exposures.

Back 382

Common

Front 383

True or False

To be covered under Worker's Compensation Insurance, an occupational disease must manifest itself within 1 year of the exposure.

Back 383

False

Front 384

The Part of a Worker's Compensation Policy that applies if more than one state is listed in the Information Page is called _________ ________ __________.

Back 384

Other States Insurance

Front 385

True or False

Typically, those insurers that must participate in a Worker's Compensation Assigned Risk Plan are those that write Worker's Compensation Insurance in the voluntary market in the state.

Back 385

True

Front 386

True or False

Under Worker's Compensation Insurance, vocational training is available as a benefit.

Back 386

True

Front 387

Part Two of a Worker's Compensation Policy applies to suits against the employer by an employee or another person because of the injury to the employee.

Back 387

True

Front 388

Worker's Compensation benefits are available for children of a deceased worker, if death was caused by a work related injury, until they reach age _____, or longer if a full-time student.

Back 388

Age 18

Front 389

Private insurers are not allowed to write Worker's Compensation Insurance in ______ states.

Back 389

Monopolistic

Front 390

Under a Workers' Compensation Policy, Part Six - Conditions, includes duties of the ________ and the _________.

Back 390

Insurer and the Insured

Front 391

True or False

When looking at the loss history for calulating the premium charge for an employer's experience rating factor, the insurer will not use losses unless they are over a certain minimum amount.

Back 391

False

Front 392

Under Workers' Compensation Insurance, a schedule of benefits applies to ________ ________ disabilities.

Back 392

Permanent Partial

Front 393

True or False

Under a Workers' Compensation Policy, an accident occurring after the policy expiration date would be covered.

Back 393

False

Front 394

True or False

When a third pary files a suit against an employer for damages that resulted in an employee's injuries, Part II-Employers Liability Insurance, will provide coverage.

Back 394

True

Front 395

Manual rates are determined by each employee's work _________.

Back 395

Classification

Front 396

Would an employee likely be covered under Workers' Compensation Insurance if the employee were intoxicated at the time of the injury? Yes or No

Back 396

No

Front 397

True or False

The classification of a new worker insured under a Workers' compensation Policy will be the job classification that best describes the risk.

Back 397

True

Front 398

Under the Voluntary Compensation Endorsement, is it necessary for the employer to provide his/her federal tax identification number?

Back 398

No

Front 399

True or False

Under Workers' compensation Insurance, the benefits are determined by the state law.

Back 399

True

Front 400

Workers' Compensation benefits are payable as long as the injury occurred by accident arising out of, and in the course of, employment.

Back 400

True

Front 401

When Workers' Compensation Insurance is available through private insurers operating in the state, the state is called ____________.

Back 401

Competitive

Front 402

True or False

Large employers may be attracted to self-insured Workers' Compensation plans because of the predictability of losses, and because benefits are capped by statute.

Back 402

True

Front 403

How is a Second-Injury Fund usually funded?

Back 403

Assessments

Front 404

Are employers liable for injuries occurring outside the course of employment? Yes or No

Back 404

No

Front 405

The insurer a Surety Bond is called the ________ or Guarantor.

Back 405

Surety

Front 406

True or Fasle

Umbrella policies may cover losses excluded by the underlying policy.

Back 406

True

Front 407

Would a Directors and Officers Liability Policy include coverage for errors in preparing a financial statement?

Back 407

Yes

Front 408

True or False

Umbrella liability policies typically only cover losses insured by the primary insurance.

Back 408

False

Front 409

The Physicians', Surgeons' and Dentists' Professional Liability Policy covers injuries which result from the lack of professional skill or judgement.

Back 409

True

Front 410

True or False

ACommercial Umbrella Policy does not include Workers' Compensation benefits.

Back 410

True

Front 411

True or False

Bonds which are used in court proceedings are called Judicial Bonds.

Back 411

True

Front 412

Commercial Umbrella policies are not ________ within the industry.

Back 412

Standardized

Front 413

In Surety bonding, the party whose obligation is guaranteed is the ________.

Back 413

Principal

Front 414

A Liquor Tax Bond required by a municipality of local liquor stores as a condition of being granted a liquor license would be an example of what type of bond?

Back 414

License and Permit Bond

Front 415

True or False

Generally, Surety Bonds are written for the duration of the contract.

Back 415

True

Front 416

True or False

Lawyers' Professional Liability covers bodily injury and damage losses.

Back 416

False

Front 417

True or False

If an insurance producer were to fail to renew a policy, it could be covered under his/her Errors and Omissions Liability Policy.

Back 417

True

Front 418

True or False

Aircraft Liability Insurance is designed to cover liability claims arising from the ownership maintenance, or use of an aircraft.

Back 418

True

Front 419

________ Liability Insurance is needed to protect employers from claims which arise from their duties under the Employee Retirement Income Security Act of 1974 (ERISA)

Back 419

Fiduciary

Front 420

True or False

A Farm Liability Policy would also cover a golf driving range that the farmer operates on a few acres of his property.

Back 420

False

Front 421

In Surety bonding, the third party to who the surety is answerable is the _________.

Back 421

Obligee

Front 422

True of False

The purpose for a Personal Umbrella Policy is to cover large and catastrophic losses.

Back 422

True

Front 423

True or False

Residence employees, other than farm employees, would be covered for medical payments under a Farm Liability Policy.

Back 423

True

Front 424

The Consent to Settle a Loss Provision, may appear in some _________ Professional policies.

Back 424

Medical

Front 425

A Labor and Material Bond is a type of ________ bond.

Back 425

Contract

Front 426

True or False

In bonding, the party for whose benefit the bond is written is the obligee.

Back 426

True

Front 427

What type of a liability policy would a Realtor purchase to protect him/herself professionally?

Back 427

Errors and Omissions

Front 428

Would a Personal Umbrella Policy cover libel and slander?

Back 428

Yes

Front 429

True or False

Farm Liability policies include liability arising from the sale of farm products, provided that the products have not been processed.

Back 429

True

Front 430

the determination of acceptable risks is the primary function of the _____________.

Back 430

Underwriter

Front 431

In insurance, wet leaves allowed to remain on a homeowner's sidewalk could be considered a _________ hazard.

Back 431

Physical

Front 432

Can one purchase an insurance policy to cover losses which result from an operation of drug smuggling? Yes or No

Back 432

No

Front 433

When a producer/agent violates the power expressed in his/her agency contract, can he/she be held personally liable? Yes or No

Back 433

Yes

Front 434

The value that each party gives the other in an insurance contract is said to be the ____________.

Back 434

Consideration

Front 435

When the number of similar units increase, the predictability of the loss improves according to the ______ of ______ ________.

Back 435

Law of Large Numbers

Front 436

A mutual _________ insurer can charge a policyholder a pro rata share of losses.

Back 436

Assessment

Front 437

Would a producer/agent be obligated to obey illegal orders of an insurer? Yes or No

Back 437

No

Front 438

_________ reinsurance is accepted or rejected on a case by case basis.

Back 438

Facultative

Front 439

Under Aleatory contracts, the consideration may be _______.

Back 439

Unequal

Front 440

The insurer's promise to pay a covered loss, and the insured's payment of the premium, are examples of ___________.

Back 440

Consideration

Front 441

The insuring of risks that are more prone to losses than average risks is known as _________ __________.

Back 441

Adverse Selection

Front 442

In this state, when an insurer becomes licensed to do business here, it is a(n) _______ insurer.

Back 442

Admitted

Front 443

True or False

In most states, a nonadmitted insurer may be used if a producer/agent has made a great effort to place insurance through an admitted insurer.

Back 443

True

Front 444

True of False

Independent agents are actually employees of the insurer.

Back 444

False

Front 445

Risk _______ is when one takes action to prevent or reduce potential loss.

Back 445

Reduction

Front 446

True or False

When a producer/agent compares benefits of several policies he/she is gulity of misrepresentation.

Back 446

False

Front 447

A Mutual Insurance Company is owned by its __________.

Back 447

Policyholder

Front 448

When an applicant intentionally fails to make a material fact, this is known as ____________.

Back 448

Concealment

Front 449

The fact that an insured would profit from a loss, would be a violation of the ______ ____ _________.

Back 449

Principle of Indemnity

Front 450

Insurance is designed to provide protection against ______ risk.

Back 450

Pure

Front 451

Indifference to loss is called a(n) _________ hazard.

Back 451

Morale

Front 452

Would storage of lfammables on the premises be considered a physical hazard?

Back 452

Yes

Front 453

Something that increases the chance or likelihood of a loss is know as a(n) _________.

Back 453

Hazard

Front 454

True or False

A peril is defined as a cause of loss.

Back 454

True

Front 455

When there is a possibility of loss or gain, the risk is deemed a(n) _________ risk.

Back 455

Speculative

Front 456

A _________ contract is an arrangement where one insurer transfers or shares risk with another insurer.

Back 456

Reinsurance

Front 457

True or False

Underwriters like to select insureds whose actual losses will be similar to expected losses.

Back 457

True

Front 458

The ________ ________ Doctrine states that an insured is entitled to coverage that a reasonable and prudent buyer can expect.

Back 458

Reasonable Expectations

Front 459

________ is defined as the reduction in, decrease in, or disappearance of value.

Back 459

Loss

Front 460

An individual who negotiates insurance contracts on behalf of the prospective insured is called a(n) ________.

Back 460

Broker

Front 461

A breach of a warranty under an insurance contract may _______ the contract.

Back 461

Void

Front 462

May the Commissioner become a candidate for public office or a member of a political committee?

Back 462

No

Front 463

A hearing required by an aggrieved person must be held within _____ days after the Commissioner receives the person's demand for a hearing.

Back 463

30 Days

Front 464

True or False

A Certificate of Authority is the property of the insurer.

Back 464

False

Front 465

A Cetificate of Authority expires on _____ _____ unless continued by paying the continuation fee before _______ _______ and filing an annual financial statement.

Back 465

May 31st/ March 1st

Front 466

A temporary license is valid for up to ____ months and may be renewed once for a producer's disabling or confining illness or injury.

Back 466

6 months

Front 467

A licensee who fails to notify the Commissioner of a change in name or address within _____ days shall be fined _____.

Back 467

30 days/$50

Front 468

A producer or service representative must complete at least _____ classroom hours per 2-year period, with at least 3 hours in ethics or business practices, of courses, instructional programs, or seminars approved by the Commissioner.

Back 468

24 Classroom hours

Front 469

True or False

Up to 24 excess classroom hours of continuing education completed within any 2-year period may be carried to the next biennial reporting period.

Back 469

True

Front 470

The insurer/producer (choose one) is responsible for paying the renewal fee for a producer's appointment.

Back 470

The insurer

Front 471

Giving individuals of the same class and lifeexpectancy different benefits is a form of _______ _________.

Back 471

Unfair Discrimination

Front 472

True or False

An insurer may not require an applicant to disclose information about his/her status as a victim of abuse.

Back 472

True

Front 473

A person who, for compensation, investigates and negotiates claim settlements on an insurer's bhalf is known as a(n) ________.

Back 473

Adjuster

Front 474

Under the ______ _______ ______ Act an unauthorized foreign or alien insurer that transacts insurace with an Alabama resident is subject to the jurisdicition of Alabama's courts if the insured or beneficiary sues.

Back 474

Unauthorized Insurers Process

Front 475

The Alabama Insurance Guaranty Association pays Workers' Compensation claims in full and claims exceeding $_______ and less than $_______ for all other property and casualty (except ocean marine) policies.

Back 475

exceeding $100 and less than $150,000

Front 476

Premiums for industrial fire policies may not be collected more than _____ months in advance.

Back 476

12 months

Front 477

Sam, who carries minimu liability limits, is at-fault in an accident resulting in $21,000 worth of bodily injury to one person and $10,000 worth of property damage. What is Sam's liability after all insurance payments are made?

Back 477

$1,000

Front 478

An insurer must notify the named insured under an auto liability policy at least ____ days before cancelling the policy; at least _____ days for nonpayment of premium.

Back 478

20 days before/10 days for non payment

Front 479

In question 16, Sam's auto is an example of a(n) ________ auto because the sum of all bodily injury liability coverage is less than the damages the injured person is legally entitled to recover.

Back 479

Uninsured

Front 480

An employer failing to secure Workers' Compensation coverage may be fined $______ to $_______ in addition to being liable for twice the compensation payable for an employee's injury or death.

Back 480

$100 to $1,000

Front 481

Compensation for total disability or permanent partialdisability is ______% of the employee's average weekly wage.

Back 481

66 2/3%

Front 482

An injured employee who refuses suitable _________ loses his/her entitlement to compensation during the refusal, unless a judge finds the refusual justifiable.

Back 482

Employment

Front 483

An employer liable for an employee's death must pay a lump sum of $_______ to the employee's estate within ____ days.

Back 483

$7,500/ within 60 days

Front 484

The employer must also pay up to $_______ for burial expenses, in addition to paying any medical and hospital expenses.

Back 484

$3,000

Front 485

True or False

A defendant charged with a capital offense is not eligible for bail, unless the case has been continued twice in order to receive the testimony of absent witnesses.

Back 485

True

Front 486

Negotiable ______ or ______ bonds deposited instead of cash must be treated in the same manner as a cash deposit.

Back 486

U.S or Alabama