Personal Lines Insurance

Front 1

Two Dwelling fire polices are written on the same house. Company A had a limit of 300,000 and Company N had a limit of 100,000. If the insured suffers a 100,000 loss, how much will Company A pay?

Back 1

75,000

Front 2

An HO-6 provides which type of coverage for contents?

All-risk

Named peril

Valued

Replacement cost

Back 2

Name peril

Front 3

An HO-3 policy covers:

Damage done by burglars

Animal, birds, or fish

Vandalism occurring after 60 days vacancy

Water damage caused by sewer backup

Back 3

Damage done by burglars

Front 4

On an HO-3 policy, freezing of plumbing is covered:

Regardless

If the heat was left on

Only if the home is unoccupied

Never

Back 4

If heat was left on

Front 5

A "covered auto" on a Personal Auto Policy includes:

Snowmobiles

Motorcycle

Small pick up trucks

Motor homes

Back 5

Small pickup trucks

Front 6

You hit a bird, cracking your windshield. Which auto coverage applies:

Back 6

Other than collision

Front 7

Your parked auto pops out of gear and rolls into a tree. Which auto coverage applies:

Back 7

Collision

Front 8

The name of the insured would be found in which part of the policy:

Back 8

Declarations

Front 9

The covered perils would be found in which part of the policy:

Back 9

Insuring agreement

Front 10

The requirement to submit proof of loss is contained in which part of the policy:

Back 10

Conditions

Front 11

On an all-risk policy, where would you look to see what is not covered:

Back 11

Exclusions

Front 12

At the expiration of a leasehold, any improvements and betterments made by the tenant belong to the:

Back 12

The property owner

Front 13

On a property policy, a mortgage holder must be given notice upon:

Back 13

Non-renewal or cancellation

Front 14

All of the following are true about producers, EXCEPT they:

Must be at least 18 to obtain a license

Represent an insurer

Must take an examination

Represent the policy holder

Back 14

Represent the policyholder

Front 15

Two liability policies are written to cover the same insured. Company A writes an HO policy with liability limits of 500,000 and Company B writes a Personal Umbrella policy with liability limits of 1,000,000. If a judgement I'd rendered against the insured in the amount of 100,000, how much will Company B pay?

Back 15

Zero

On liability insurance, claims are not paid pro rata. Primary insurance covers claims until max limit is met.

Front 16

An HO-3 policy is written with a policy limit of 300,000 on a house that has a replacement cost of 500,000. If the insured suffers a 60,000 loss, how much will the insurer pay?

Back 16

45,000

The insured needed to have at least 80% of the replacement cost ; 80% of 500,000. 80% of 500,000 is 400,000. 300,000 is 75% of 400,000. 45,000 =75% of 60,000.

Front 17

On property claims, proof of loss must be submitted within:

Back 17

60 days

Front 18

An insurance contract sold without any negotiations is considered to be:

Back 18

Unilateral

Front 19

A client's reasonable expectation of coverage is most closely associated with the:

Back 19

What a prudent person would expect

Front 20

The principle of indemnity is designed to:

Back 20

Restore the insured to the same position he had prior to the loss

Front 21

A Personal Articles Floater (PAF) provides coverage on what basis:

Back 21

Actual Cash Value

Front 22

If an adjuster settles a claim based upon false information provided by the client the court may void the contract. This is known as a(n):

Back 22

Rescission

Front 23

Wet leaves on the sidewalk are considered to be a:

Back 23

Hazard

Front 24

On an HO policy written for 100,000, a client had a 95,000 loss plus incurs an additional 15,000 in debris removal expenses. How much of this debris removal expense is covered?

Back 24

10,000

On an HO policy debris removal covers 5% of the policy limit

Front 25

On a DP-1 Basic Dwelling Fire form, water damage is covered of due to:

Back 25

Fire

Front 26

On a property policy, notice of claims must be given:

Back 26

Immediately

Front 27

An uninsured motorist includes all the following EXCEPT:

A car insured by an insolvent insurer

A hit-and-run auto

A car driven with the required surety bond posted

A car driven in violation of the financial responsibility law

Back 27

A car driven with the required surety bond posted

Front 28

Which of the following is not an Unfair Claims Settlement Practices:

Failing to act promptly on claims communications

Refusing to pay a claim without a reasonable investigation

Requiring Proof of Loss to be submitted

Failing to affirm or deny coverage within a reasonable time

Back 28

Requiring Proof of Loss to be submitted

Front 29

All of the following are true regarding strict liability EXCEPT:

Negligence is required

It is also known as absolute liability

It is the direct responsibility for damages resulting from a deliberate action

It is also known as liability without fault

Back 29

Negligence is required

Front 30

When there is a break in the chain of events leading from a negligent act to an injury, the defendant may utilize the defence of:

Back 30

Intervening cause

Front 31

Which of the following is true regarding the doctrine of comparative negligence:

It varies by state

It bars recovery if the injured party is partly to blame

It is the same everywhere

It is the same add contributory negligence

Back 31

It varies by state

by state

Front 32

The "special provisions" environment added to some policies contains:

Back 32

The provisions required to be added by state law

Front 33

Conditions contained in an HO-3 policy require the insured, after a loss, to do all of the following EXCEPT:

Give prompt notice of the claim to the insurer or producer

Notify the police in case of Loss by theft

Protect the property from further damage

Abandon the property to the insurer

Back 33

Abandon the property to the insurer

Front 34

On a property insurance policy, the name of the clause the allows the insurer to broaden coverage during they policy period without an additional premium charge is the:

Back 34

Liberalization clause

Front 35

On a property policy, if the parties fail to agree on the amount of the loss, either may demand an appraisal. All of the following are true about this policy conditions EXCEPT:

Each party must pay its own appraiser

The other expenses of the appraisal and the cost of the umpire are shared equally

A decision agreed to by any two of these three parties will set the amount of Loss

The party requesting the appraisal must pay the entire cost

Back 35

The party requesting the appraisal must pay the entire cost

Front 36

On an HO policy, all are true about subrogation EXCEPT:

It applies to all parts of the policy

It helps hold rates down

It applies when a 3rd party negligently causes property damage

The insured waives their rights of recovery against another party to the extent that payment is made by the insurer

Back 36

It applies to all parts of the policy

Front 37

On which type of policy is appraisal of the property not relevant:

Back 37

A Fine Arts Floater insuring a painting

Front 38

On an HO-3, the coinsurance percentage requirements are based upon the:

Back 38

The replacement cost of the property at the time of loss

Front 39

On an HO-3, which of the following is covered without special endorsements:

Back 39

Jewelry, furs and firearms up to certain limits

Front 40

On a DP-1 dwelling from basic form, the "other coverage" provided for removed property applies:

Back 40

To removed property, for direct loss from any cause

Front 41

A Personal Auto Policy (PAP) does not provide coverage in:

Back 41

Mexico

Front 42

Which parts of a legal contract constitute the mutual agreement of the parties?

Back 42

Offer and acceptance

Front 43

When a claimant states the truth to the best of their knowledge, it is called a:

Back 43

Representation

Front 44

On a valued policy, when a total loss occurs it is important to determine the:

Back 44

Policy limit

Front 45

The policy period is defined as:

Back 45

The time the policy is in effect

Front 46

"Specific" property insurance provides:

Back 46

A specific amount of insurance for specific property at a specific location

Front 47

The amount of property damage resulting from a fire is determined by:

Back 47

Negotiation between the insured and the insurer

Front 48

Property policy A is written for 10,000 and policy B is written for 30,000. If a 20,000 claim occurs, to whom will this loss be allocated:

Back 48

Policy A will pay 5,000 and Policy N will pay 15,000

Front 49

All the following are true about an excess limits policy EXCEPT:

They are written on to top of another policy, without broadening coverage

They pay after the primary policy is exhausted

They pay claims pro rata with the other policy

They are also called umbrella policies

Back 49

They pay claims pro rata with the other policy

Front 50

Exclusions in a policy do all of the following EXCEPT:

Eliminate uninsurable perils

Clarify coverage

Provide coverage that was intended, but not clearly expressed

Prevent adverse selection

Back 50

Provide coverage the was intended, but not clearly expressed

Front 51

On an HO policy to find out who is insured other than the named insured, you should look in the:

Back 51

Definitions

Front 52

Conditions in a policy apply to:

Back 52

Both the insured and the insurer

Front 53

The main difference between the various Dwelling Property forms is the:

Back 53

Covered property perils

Front 54

Which policy provisions is word as follows: "In consideration of the provisions herein and of the premium specified, the company..."

Back 54

Insuring agreement

Front 55

On an HO policy, all are true about subrogation EXCEPT:

It prevents double coverage

It applies to both sections of the policy

It reinforces the Principle of Indemnity

The insured assigns their right of recovery to the insurer

Back 55

It applies to both sections of the policy

Front 56

All are true about consideration on an insurance contract EXCEPT:

It is an exchange of values

It must be equal

It is usually monetary

It is requirement to make the contract enforceable in court

Back 56

It must be equal

Front 57

All are true about the cost of defence on a liability policy EXCEPT:

They are in addition to limits

The insurer has the option to select the lawyer

The will no longer be paid once the policy limits have been paid out

They are covered, even if the claim is groundless or excluded

Back 57

They are covered, even if the claim is groundless or excluded

Front 58

All are true about medical payments on a Homeowners policy (HO) policy EXCEPT:

They will not be paid unless the insured is negligent

They are to others

They are no-fault

They are designed to prevent lawsuit

Back 58

They will not be paid unless the insured is negligent

Front 59

On an HO-3, all of the following are true regarding the coverage provided for loss to trees, shrubs and plants EXCEPT:

It is in addition to limits

It is provided on an open-peril basis

It is limited to $500 for any ones tree, shrub or plant

It is subject to an aggregate limit of 5% of Coverage A

Back 59

It is provided on an open-peril basis

Front 60

Under the National Flood Insurance Regular Program, personal property located in a single-family home may be covered up to a maximum of:

Back 60

100,000

Front 61

To help customers purchase auto insurance, even if the have bad driving records, most states offer:

Back 61

An Automobile Insurance Plan

Front 62

The following sentence defines what: "This Company may require from the insured an assignment of all right of recovery against any party for loss to the extent that payment had been made by this Company":

Back 62

Subrogation

Front 63

Regarding the policy provision of appraisal, who appoints the umpire of the two appraisers cannot agree?

Back 63

The Court

Front 64

Regarding the policy provisions of appraisal, who pays for the cost of the appraisers?

Back 64

Each party

Front 65

All of the following are true about a total property loss EXCEPT:

Abandonment is not permitted without the consent of the insurer

The insurer may sell the salvage to offset their expenses

The value of the land is covered

The insurer will pay the value of the property or the policy limit, whichever is less

Back 65

The value of the land is covered

Front 66

Conditions in a policy allow the insurer to ask the insured to do all EXCEPT:

Protect the property from further loss

Submit proof of loss in the event of a total loss

Abandon the property in the event of a total loss

Produce books and records at any time

Back 66

Abandon the property in the event of a total loss

Front 67

All the following are excluded on a Personal Automobile Policy (PAP) EXCEPT:

Driving a non-owned auto without the owner's permission

Using your car as a taxi or limousine

Driving a temporary substitute for regular use

Using your car in connection with the auto business

Back 67

Driving a temporary substitute for regular use

Front 68

All the following are true about Proof of Loss EXCEPT:

It must contain the names of everyone in the insured's household

It must be submitted within the time specified in the policy

It is a condition in the policy

Failure to submit it may result in claim denial

Back 68

It must contain the names of everyone in the insured's household

Front 69

A client insured a rental home he owns for 60,000 on a Basic Form dwelling policy. What is the most the policy will pay under Rental Value if the house becomes uninhabitable due to a covered loss fit one month?

Back 69

1,000

Basic Form dwelling policy covers 20% of the policy limit which is 12,000. It covers lost income monthly which is 1,000 a month

Front 70

Which of the following expenses would be covered under Loss of Use on an HO-4?

Back 70

Additional fuel costs due to the insured having to drive farther to work

Front 71

If an insured's PAP liability limits are 100,000/300,000/300,000, what is the most their insurer will pay if he negligently injures one person in an auto accident?

Back 71

100,000

Front 72

An insured takes out an HO-3 with Coverage A limits of 200,000. If he has a fire loss of 190,000 and incurs 30,000 in debris removal expenses, how much coverage is available for debris removal?

Back 72

20,000

Front 73

Which of the following are true about flood insurance?

Dwelling Fire and HO policies cover flood

Flood Insurance is only written by the federal government

Flood Insurance covers landslide and mudslide

Participating insurers may offer flood insurance under a Write Your Own program

Back 73

Participating insurers may offer flood insurance under a Write Your Own program

Front 74

When an insurer's losses fin their Write Your Own flood insurance program exceeds premiums and investments income, how are losses paid?

Back 74

By the federal government

Front 75

Reinsurance allows insurers to do all of the following EXCEPT:

Stabilize profits

Increase unearned premiums reserves

Avoid catastrophic risk

Increase underwriting capacity

Back 75

Stabilize profits

Front 76

All are true about a Personal Umbrella liability policy EXCEPT:

It may provided coverage that is excluded by the underlying primary policies

It provides coverage that is excess over and above the primary policies

It covers an insureds liability related to unpaid services performed on behalf of a non-profit charitable organization

It covers work related liability

Back 76

It covers work related liability

Front 77

A Boatowners policy will cover an insured's liability in relation to all of the following EXCEPT:

Operating in Canadian waters

Participating in a fishing derby

Operating as a charter fishing boat

Water skiing

Back 77

Operating as a charter fishing boat

Front 78

On an unendorsed Personal Auto Policy, theft of which if the following permanently installed electronics equipment would NOT be covered under Other Than Collision coverage?

Back 78

Radar detectors

Front 79

All of the following are provisions in Section 1 of an HO policy EXCEPT:

Mortgagee clause

Serverability clause

Appraisal clause

Assignment clause

Back 79

Severability clause

Front 80

A Personal Articles Floater may be written to cover all of the following EXCEPT:

A postage stamp

A show Dog

furs

Jewelry

Back 80

A show dog

Front 81

Property of all of the following are covered by an HO policy EXCEPT:

Guests

Children away at college

Boarders

Relatives residing with the insured

Back 81

Boarders

Front 82

On a DP-2 , damage to which of the following caused by the weight of the ice, snow or sleet is covered:

Back 82

Garages

Front 83

For non-payment of premium, insurers must give at least___ days' advance written notice when canceling a DP or HO policy.

Back 83

10

Front 84

You have a PAP with full coverage on your covered auto. If you borrow your friend's uninsured car and hit a tree, severely damaging the car:

Back 84

Your policy will provide coverage for collision damage to your friend's car

Front 85

To eliminate the exclusion regarding regular use of a non-owned auto, your should add an endorsement entitled:

Back 85

Extended Non-Owned Auto Coverage for a Named Individual

Front 86

If you add a 'business pursuit' endorsement to your HO, you are adding liability coverage for:

Back 86

The business pursuit named in the endorsement

Front 87

An HO-3 policy provides which coverage for contents:

All-Risk

Basic Form

Broad Form

Special form

Back 87

Broad form

Front 88

A party who has temporary control of your property in storage or for repair is known as a:

Back 88

Bailee

Front 89

When a policy is written fire the named insured, the rates for a dwelling under construction are based upon:

Back 89

Average value

Front 90

Insurance may be purchased for all of the following EXCEPT:

Commercial risks

Flood

Drug smuggling

Auto race

Back 90

Drug smuggling operations

Front 91

On an HO policy, an endorsement may be added to cover personal injury liability, which covers all of the following EXCEPT:

Defamation

Bodily injury

Libel

Slander

Back 91

Bodily injury

Front 92

All of the following are covered as supplementary payments under the Part A Liability coverage on a Personal Automobile Policy (PAP) EXCEPT:

Cost of defense

Bail bonds

Post judgement interest

Loss of earnings

Back 92

Cost of defense

Front 93

Residual markets are designed to provide coverage for which type of risk exposure:

Back 93

High

Front 94

Federal flood insurance will cover which of the following:

Mudslide

Storm sewer backup

Landslide

Mudflow

Back 94

Mudflow

Front 95

Shareholders might receive dividends from a policy issued by which type of insurance company)

Back 95

Stock

Front 96

An insurer domiciled in Canada that is authorized to do business in this state is considered to be a(n) _________ insurer.

Back 96

Alien

Front 97

An insurer is responsible for the acts of its producers under the Doctrine of ___________ liability.

Back 97

Vicarious

Front 98

All of the following are considered to be hazards the property insurance underwriters are concerned about EXCEPT:

Oily rags

Dead tree

Fire

Gasoline

Back 98

Fire

Front 99

Section II of an HO policy covers all of the following EXCEPT:

Personal injury

Bodily injury

Medical

Property damage

Back 99

Personal injury

Front 100

Which of the following is NOT an Additional Coverage under Section I of an HO policy:

Grave makers

Ordinance or law

Debris removal

Loss assessments

Back 100

Loss assessments