Test Review

Front 1

Auto policies have to be issued for a one year period or guaranteed renewable for successive policy periods totaling not less than

Back 1

1 year

Front 2

When can a non-resident agent from Ohio share commissions with a non-resident agent from Indiana?

Back 2

when both agents are licensed for the same line of insurance

Front 3

Rates are always set by?

Back 3

the insurer

Front 4

subject to state insurance regulations, rate structures, and policy forms

Back 4

A company wishing to do business in the state and to be classified as an admitted carrier must be

Front 5

What part of the contract best describes the procedures that enable the parties to function effectively?

Back 5

conditions

Front 6

Anything that can cause a loss best describes a

Back 6

peril

Front 7

Transfer of a risk to an insurance company, with no losses borne by the individual, best describes

Back 7

insurance

Front 8

In fire insurance, "actual cash value" means

Back 8

replacement cost loss less depreciation

Front 9

The clause in a property or auto policy protecting the lender for their interest in your property that is not a building is known as the

Back 9

loss payable closs

Front 10

What statement about open peril coverage is true?

Back 10

Open peril contracts cover losses resulting from unusual causes that are not excluded by the policy

Front 11

Compensatory damages include what?

Back 11

general and special

Front 12

What damages awarded to the injured person are covered by liability insurance?

Back 12

both general and special

Front 13

How may an insurance company notify an insured that a policy will be canceled?

Back 13

in writing

Front 14

As a method of valuation, functional replacement cost is usually used when functional replacement cost is

Back 14

higher than ACV but lower than replacement cost

Front 15

A dead tree beside a home is best described as what type of hazard?

Back 15

physical

Front 16

is not a requirement to prove negligence?

Back 16

intervening clause

Front 17

Comprehensive Personal Liability

Back 17

can be endorsed for an extra premium

Front 18

The DP-3 policy coverage for personal property

Back 18

the same as the DP-2

Front 19

If the insured covers the dwelling for at least 80% of the cost to replace it, he will receive what settlement option for dwelling damage on the DP-1?

Back 19

ACV

Front 20

An owner occupant of a dwelling insured by a dwelling policy is eligible for what type of personal theft coverage?

Back 20

either limited or broad theft

Front 21

What is true about the HO-3

Back 21

Trees, plants, and shrubs are insured up to a limit of $500 per tree, plant, or shrub.

Front 22

What occupation is NOT eligible for coverage by the "Permitted Incidental Occupancies" endorsement?

Back 22

police officer

Front 23

Traci just bought a mobile home and needs to buy insurance for it. How will the homeowners policy handle this request?

Back 23

An endorsement is required in order to cover it on a homeowners policy.

Front 24

How long are benefits payable under the loss of use coverage on the homeowners policy?

Back 24

the shortest time it takes to repair or replace the dwelling

Front 25

The homeowners permitted incidental occupancies endorsement

Back 25

will not cover a teacher for corporal punishment under any circumstance.

Front 26

You are a tenant with an HO-4 policy. You have $30,000 worth of coverage on your personal property. How much coverage do you have for loss of use?

Back 26

The loss of use percentage on an HO-4 is 30% of the Coverage C (contents)

Front 27

Under an HO-3 policy, the insurer will pay the ACV for contents unless the

Back 27

insured has purchased the replacement cost on contents endorsement.

Front 28

An all risk HO policy includes loss caused by

Back 28

mysterious disaperance

Front 29

The homeowners "personal property replacement cost" endorsement

Back 29

is necessary since contents claims are usually settled ACV.

Front 30

The limits of liability for uninsured and underinsured motorists coverage

Back 30

can be equal to (but not greater than) the bodily injury liability limit

Front 31

A Garage Liability Policy covers each of the following EXCEPT

Back 31

cost of recall

Front 32

In auto insurance, a non-owned auto

Back 32

is covered if you have the owner's permission to be using the auto.

Front 33

Under the Builders Risk Form, which is not true regarding when coverage terminates

Back 33

if the building is vacant

Front 34

The type of commercial general liability policy that will cover an insured years after the policy expires is known as the

Back 34

occurrence form.

Front 35

Which of the following would have to be endorsed onto the Equipment Breakdown Coverage form?

Back 35

Business Income

Front 36

Bodily injury does NOT include

Back 36

loss of use

Front 37

What is NOT a common exclusion found in inland marine insurance?

Back 37

damage due to theft

Front 38

The discovery form in crime insurance will cover losses

Back 38

discovered within one year after the policy ended

Front 39

In crime insurance, a messenger has

Back 39

authority to be watching over property away from the premises.

Front 40

The limits of liability on a CGL policy can be stated as

Back 40

both occurrence and aggregate

Front 41

What liability exposure is NOT included in a business owner's policy?

Back 41

professional liability

Front 42

A business owner's policy automatically provides up to a 25% increase in business property limits to cover

Back 42

seasonal variation in stocks

Front 43

The burglary and robbery endorsement would be added to

Back 43

standard BOP form

Front 44

What is true about the business owner's policy?

Back 44

The liability coverage of the business owner's policy is very similar to an "occurrence" version CGL.

Front 45

Which of the following statements regarding Workers Compensation is FALSE?

Back 45

Under Part Two, Employer Liability, Punitive Damages are covered.

Front 46

What federal law allows members of a ship's crew to sue their employer/ship owner for injuries caused by the employer's/ship owner's negligence?

Back 46

Jones Act

Front 47

A type of liability contract in which the consent of an insured is needed before an insurer may settle a claim is a(n)

Back 47

professional liability

Front 48

On a Contract Surety Bond, who is the party also known as the Promisee

Back 48

Obligee

Front 49

The coverage territory on the umbrella is

Back 49

Worldwide

Front 50

What party does a surety bond primarily protect?

Back 50

Obligee