1 - Practice Test Ques Flashcards by Erika Perez

Which of the following companies is not a contract carrier, nor a common carrier?

The Make Your Own Frame Company uses its own trucks to deliver supplies to each of its company-owned frame shops in 15 different locations in a tri-state area.

Pronto Trucking makes deliveries in a five state area.

The Dandee Delivery Company transports goods for the public over a set delivery route for a set fee.

Pronto has a subsidiary company, Fast Track, separately insured under a Truckers Form which also hauls goods for the public over a set route and a set fee, but only in one state.

The Make Your Own Frame Company uses its own trucks to deliver supplies to each of its company-owned frame shops in 15 different locations in a tri-state area.

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Which of the following would be excluded under Personal and Advertising Injury Liability Coverage of a CGL policy?

I. Breach of contract.

II. Incorrect price descriptions of goods, products or services.

III. Failure of goods, products or services to perform as advertised.

IV. Any offense committed by an insured who is in the business of advertising or publishing.

I, II, III, and IV

I and II only

II and III only

I, II, and III only

I, II, III, and IV!!!

They are all excluded!!!!

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When no beneficiary exists and the principal sum would otherwise go to the insured’s estate, the insurance company can pay up to $1,000 to any relative, by blood or marriage, who appears equitably entitled to the money under the:

Facility of payment clause.

Primary beneficiary clause.

Contingent beneficiary clause.

Irrevocable beneficiary clause.

Facility of payment clause

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Which of the following would NOT be a prospect for errors and omissions insurance?

Dentists

Insurance Agents

Real Estates Agents

Lawyers

DENTISTS!!!

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In New York, continuing education requirements for agents must be satisfied:

Annually

Biannually

Every three years

Every four years

BIANNUALY!!!

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The limit of a bond is known as its:

Penalty.

Face amount.

Policy limit.

Goal.

Penalty!!!

(In bonding, the limit of the bond is called the penalty. The penalty is the obligation or obligations assumed by the contractor in the contract)

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Agent Rice informs the insured that he needs to secure motor vehicle records on all of the drivers in the household based on company requirements. This is an example of Agent Rice’s:

Fiduciary Authority

Expressed Authority

Apparent Authority

Implied Authority

Implied Authority!!!

(Implied authority is the authority the agent believes he has in order to do his job properly. In order to write auto insurance, the agent needs to know what is on the motor vehicle driving record of all the drivers in the household)

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How is the property causes of loss changed from risks of “direct physical loss” to “named perils” coverage under the BOP?

State it on the declarations

Attach the Named Perils form endorsement

It cannot be done

Use a different ISO Businessowners Coverage Form

Attach the Named Perils form endorsement

The named peril endorsement must be attached to the policy

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Which of the following types of property may be insured under a furriers block policy?

Stocks of furs owned by the insured furrier.

Customer’s furs entrusted to the furrier for storage.

Furs or pelts on the premises of a breeder.

Fur garments sold and delivered to customers.

Stocks of furs owned by the insured furrier..

The furriers block policy is used to cover stocks of furs owned by the insured furrier and held for sale

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A Property Value Reporting form is used to:

Present a new claim to the insurer

Report a property theft to police

List and valuate business personal property at an insured location

Present home appraisal value to the insurance company

List and valuate business personal property at an insured location!!!

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In TORT law, strict liability is the imposition of liability on a party without a finding of fault (such as negligence or tortuous intent).

The claimant need only prove that the tort occurred and that the defendant was responsible. The law imputes strict liability to situations it considers to be inherently dangerous.

Which of the following would not fit into the definition of strict liability but would be absolute liability?

A blasting contractor

Ericting dams

Drilling oil wells

A restaurant selling seafood

A BLASTING CONTRACTOR!!!!

(Strict liability is a tort law and means a party is liable for all damages as a result of his or her dangerous actions or products. Absolute liability involves claims for which there is no defense involving extremely hazardous activities such as a blasting contractor)

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Under workers compensation insurance, bodily injury by disease must be caused by:

The conditions of employment that caused the injury or disease.

Any reason regardless of fault.

An occupational injury.

Any illness incurred while the worker was on the job.

The conditions of employment that caused the injury or disease!!!

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Cathy’s employer pays 60% of the premium for the group LTD plan in which she participates. She becomes disabled and receives a monthly benefit of $2,000. How much of this monthly benefit must she report as income?

$2,000

$1,200

$600

$1200!!!

The percentage of the benefit that is taxable is the exact percentage of the premium that the employer pays(60%

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Which of the following would NOT be covered under the Personal Auto Policy?

Damage caused to another car when the insured backs into it

The insured drives off the road and over the neighbor’s sprinkling system several times over a period of months; as a result one day several of the pipes break. The neighbor demands that the damage to the sprinkling system be paid.
Mr. Jones, in a burst of temper, runs his car into his neighbor’s house.

Injury caused when the insured hits a pedestrian.

Mr. Jones, in a burst of temper, runs his car into his neighbor’s house.

(Intentional acts are always excluded under policies that cover automobile liability. Accidental acts are covered)

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Under the Equipment Breakdown Protection form that covers boilers and machinery, what is considered to be one loss event?

The initial breakdown causes other breakdowns

One piece of machinery is damaged

Three separate losses occur during the week

When expediting expenses are paid

The initial breakdown causes other breakdowns !!!

(The breakdown of one covered piece of equipment that causes other breakdowns of covered equipment will be considered one event)

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What is the difference between a “vacant” building and an “unoccupied” building?

Vacant means no furnishings or habitation by people.

Unoccupancy means there are furnishings but no people present.

A vacant building affects certain perils.

All responses listed are correct.

All responses listed are correct!!!

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Under the BOP, apartment buildings are eligible, including residential condominium associations, along with offices, mercantile, service or processing agencies or contractors as long as they do not exceed:

15,000 sq. feet

35,000 sq. feet

30,000 sq. feet

40,000 sq. feet

35,000 sq. feet

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The deductible on the Equipment Breakdown form can be stated in which of the following ways?

Fixed dollar deductible

Time deductible

Percentage of loss deductible

All of the responses are correct

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An attorney will provide notice of deposition to an individual when the attorney wishes to secure from that individual:

A recorded statement under oath

Any form of statement

A written statement

A feeling for how he or she will appear as a witness

A recorded statement under oath

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All of the following would be considered “bodily injury” under liability coverage, EXCEPT:

A dog owned by a customer is injured in the parking lot of the a store.

A caterer’s customer is hospitalized with food poisoning.

A shopper trips over an exposed cable at a mall.

A clerk demonstrating a barbell drops it on a customer’s foot.

A dog owned by a customer is injured in the parking lot of the a store.

(Bodily injury, which includes both accident and sickness, requires injury to a human being. The dog is property and would be covered under property damage)

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All of the following are true regarding the limit of insurance shown on the declarations page, except:

The limit of coverage applies to each vehicle
listed on the declarations page

The number of vehicles involved in the accident does not affect the limit of coverage per accident

The number of claims per accident does not change the limit of coverage for the accident

All of the responses are correct

The limit of coverage applies to each vehicle
listed on the declarations page!!

(The limit of coverage does not apply to each vehicle, it applies to each accident)

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A professional liability policy can be:

Covered automatically under a Commercial General Liability policy

Added by endorsement to a Commercial Liability policy

Purchased separately for an additional premium

Added to an umbrella policy

Purchased separately for an additional premium

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The insured has an HO-3 policy. He is robbed and the thief stole $500 in cash. What amount, if any, can the insured collect under his homeowner policy disregarding any deductibles?

$100

Nothing

$500

$200

The homeowner policy limits the theft of money to $200

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the insurance industry, which of the following terms refers to continuous or repeated exposure to conditions that may result in bodily injury or property damage neither expected nor intended?

An occurrence

An accident

An event

A condition

An occurrence

(The definition of “occurrence” includes accident which is bodily injury and/or property damage that is sudden and unforeseen)

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In a standard workers compensation insurance policy, premiums are based on which of the following? Work classifications and annual payroll Type of work and average weekly wage Premium discount and basis modification Expense constant and weekly payroll

Work classifications and annual payroll!!!

Compensation payable for the delaying a vessel carrying freight: Is called demurrage. Not payable under an ocean marine contract Not subject to any deductible to negotiation. Limit is predetermined prior to the voyage.

Is called demurrage!!!

David has damaged his vehicle by striking a tree. He can: I. Take the car to a repair garage recommended by the insurer. II. Take the car to a garage of his choice. III. Accept payment based on the adjuster's estimate. I, II and III I and II only I and III only I only

I, II, III All of them!!!

Which of the followings items are covered under the homeowner forms? Firearms Stamps Rare coins All of the items are covered

All Items are Covered

Both medical and nonmedical care which might include housework and meal preparation is: Intermediate care. Home health care. Adult day care. General nursing care.

Home Healthcare!!!

An insured that had a $500,000 primary liability policy purchased a $1 million umbrella liability policy with a $2,000 self-insured retention limit. Later, the insured allowed the required underlying primary policy with a limit of $100,000 to expire. A week after that, the insured became liable for a $100,000 loss that is not excluded by the provisions of either the primary policy or the umbrella policy. How will this loss likely be settled? The insured will pay the full $100,000 loss. The umbrella policy will pay the full $100,000 loss. The underlying policy will pay the full $100,000 loss. The insured will pay $2,000, and the umbrella policy will pay the remainder of the loss.

The insured will pay the full $100,000 loss!!!

What part of the policy contains the promises made by the insurance company to the insured? The Insuring Agreement The Conditions Clause The Definitions Exceptions to the Exclusions

The Insuring Agreement | The insuring agreement contains the promises made by the insurer to the insured in exchange for a premium

Tearing of a muscle results in an injury known as a: dislocation sprain strain fracture

STRAIN!!!

John pays his annual premium and then decides to cancel the policy halfway through the coverage year. He will: Not receive a refund as he opted to cancel the policy. Receive a 10% refund of the policy premium. Receive a refund for the unearned premium (that portion of the premium not yet used). Receive a refund for the entire annual premium.

Receive a refund for the unearned premium (that portion of the premium not yet used).. (John will receive a refunded of the unearned portion of the premium. When the insured cancels the policy, the premiums are short rated and when the insurer cancels the premiums are pro-rated.)

In settling a claim on a dwelling fire policy with a $10,000 loss, the following companies are involved, Company A - 50%; Company B - 45% and Company C - 5%. What will Company C pay? $10,000 $1,000 $4,500 $500

$500

An insured owns a motor cycle, a moped and a motor home. What endorsement is added to the personal auto policy to provide coverage? Recreational vehicle endorsement Miscellaneous type vehicle endorsement A separate endorsement for motor homes called the “motor home” endorsement All terrain vehicle endorsement

The Miscellaneous Type Vehicle Endorsement | The Miscellaneous Type Vehicle Endorsement is added for these types of recreational vehicles

What is the appropriate manner in which to sign a "release of all claims?" A business may use its d.b.a. An individual may use an a.k.a. Must use of full legal name All of the responses are correct

Must use of full legal name!!!

How many days does the liberalization clause provide for under the BOP prior to or during the policy? 55 days 30 days 45 days 35 days

45 Days!!!

The period of time from the effective date of reinstatement of a health policy until coverage is available for sickness related claims is called the: elimination period. open enrollment. probation period. recurrent disability.

Probation period

Which of the following terms would describe a situation where a building is not a total loss but the cost to repair the building is greater than the value of the building? Answer Choi A constructive total loss. A constructive partial loss. A loss of market value loss. A loss where debris removal may be more than the policy coverage provided.

A constructive total loss!!!

Which of the following contractors would be eligible for a businessowners policy? A carpenter doing all of his own work building kitchen cabinets in people's homes and earns $75,000 per year. A General Contractor A roofing contractor with an annual payroll of $400,000. A Tree Removal Service

A carpenter doing all of his own work building kitchen cabinets in people's homes and earns $75,000 per year!!!

Typically, how are defense costs handled under an aviation policy? Covered under the policy’s insurance limit A separate limit applies Handled as a supplementary payment Paid after a deductible is applied

Handled as a supplementary payment

The required standard deductible for auto physical damage coverage in New York is: $200.00 per occurrence. $100.00 per occurrence. $500.00 per occurrence. $250.00 per occurrence.

$200!!!

The rights and duties of both parties to the insurance contract are specified in which section of the homeowner forms? Declarations Insuring agreement Conditions Exclusions

CONDITIONS!!!

An insured can collect on his automobile medical payments coverage in all of the following situations, except: While injured in an owned vehicle While struck as a pedestrian by a vehicle licensed for on road use As a paying passenger in a taxi cab While in an owned vehicle used as a livery

While in an owned vehicle used as a livery!!!

ll of the following statements about the Medical Information Bureau are true, EXCEPT: It is obligated to automatically provide applicants with information it holds about them. It is a not-for-profit organization established by life and health insurance companies that provides information to member firms about insurance applicants. The individual applicant must authorize the release of any medical information to the member companies. It contains records of prior applications and claims.

It is obligated to automatically provide applicants with information it holds about them!!!

The suffix "osis" refers to: An abnormal fear. The formation or development of somthing. An abnormal condition. An inflammation.

An abnormal condition!!!

The insured has suffered a covered loss under his DP-3 dwelling form. He fails to protect the property from further loss. The additional loss that occurs as a result of his inactions may be denied because of what clause in the policy? Intentional loss Removal clause Neglect Fraud

Neglect

Each of the following is true about farm coverages, EXCEPT: The principal residence may be covered by farm forms or homeowner forms. Farm coverage may be written as a monoline policy or part of a package. Livestock may be insured. Property and liability coverages may be included.

The principal residence may be covered by farm forms or homeowner forms.

If a crop insurance policy does not cover loss of the first 10% of a crop's value, but does cover a fixed percentage of any additional loss, the policy is said to be written: On an excess over basis. With a disappearing deductible. With an increasing payment feature. On a standard basis.

On an Excess over Basis!!!

An insured has taken a physical inventory of his merchandise and discovers a substantial shortage of valuable stock. He turns a claim in to the insurance carrier that provides his coverage under a Businessowners Policy. What coverage is provided by the BOP for merchandise that has mysteriously disappeared? Full replacement cost coverage Full actual cash value coverage The loss is paid on an agreed amount basis No coverage would apply

No coverage would apply!!!! | There is no coverage for missing property when there is no physical evidence to show the cause of loss

A non-admitted company sells insurance in the state of New York. This is known as: Certificate of authority Surplus lines insurance An illegal act A limited lines company

Surplus lines insurance!!!

Commercial Property Insurance usually imposes a penalty if, at the time of loss, the insured failed to maintain a minimum amount of coverage. This penalty may apply because of the: Coinsurance clause. Valuation clause. Deductible provision. Value policy law.

Coinsurance clause. (Commercial property forms contain an 80% coinsurance clause. This means the insured must insure the property for 80% of its value or risk a penalty in case of a partial loss)

Which of the following would be eligible to purchase a BOP? Movie Theater Automobile repair shop A six unit apartment building A credit union

A six unit apt building!!!

If an insured conceals a material fact, makes false statements or engages in a fraudulent act, he or she is guilty of: Estoppel Misrepresenting Concealment -------?????

Concealment!!!

You have an HO-3 policy on your home. Coverage F will pay medical expenses for: Anyone invited onto your property and injured while there A son or daughter away at college You and all resident relatives Roomers and boarders

Anyone invited onto your property and injured while there

All of the following types of signs can be covered by the Sign Coverage Form, except: Neon Fluorescent Electrical, not attached to a building Signs carved in stone or brick

Signs carved in stone or brick!!!

If an insurer intends to cancel a workers compensation policy issued in New York for other than nonpayment of premium, a ___ day advance notice must be sent to the insured. 10 15 20 30

What will happen when an adult child, who is disabled and a covered dependent under an employer-sponsored group plan covering the child's parent, reaches the plan's limiting age? A mentally or physically disabled child may continue group coverage as a dependent as long as he or she remains a legal dependent of the insured parent/guardian. All coverage will cease automatically. The child must convert to individual coverage. The child must be enrolled in Medicare.

A mentally or physically disabled child may continue group coverage as a dependent as long as he or she remains a legal dependent of the insured parent/guardian.

What does “Transfer Of Your Rights And Duties Under This Policy” refer to in the BOP? The Other Insurance Clause The Assignment Clause The Coinsurance Clause The Subrogation Clause

The Subrogation Clause!!!

Fidelity bonds which apply their "limit" to each employee involved in a covered loss are called: Commercial blanket bonds. Scheduled bonds. License and bid bonds. Blanket position bonds.

Commercial blanket bonds.

Phillip suffers severe pain after exercising. His doctor prescribes an EMG. An EMG: Is a test that measures muscle response to nerve stimulation. Is a test that records the electrical activity of the heart. Is a test that records electric currents developed in the brain. Is a test that provides pictures of structures inside the body using a magnetic field and pulses of radio wave energy.

Is a test that measures muscle response to nerve stimulation. (An EMG (electromyography) is a test which measures muscle response to nerve stimulation. It is used to evaluate muscle weakness and to determine is the weakness is related to the muscles themselves or a problem with the nerves that supply the muscles)

The plumbing in Mrs. Jones' home suddenly burst and the ceilings were damaged by water. All of the following homeowner forms would cover the loss, EXCEPT: HO-8 form. HO-2 form. HO-3 form. HO-5 form.

H-08 form (All current HO forms except the HO-8 cover "accidental discharge or overflow of water or steam" from a plumbing, heating, air conditioning, or fire protective sprinkler system or from within a household appliance)

All of the following information is included on a general liability declarations page, EXCEPT: Non renewal provisions The policy inception date The aggregate limit of liability The insurance company name

Non-Renewal Provisions (The non renewal provision is not contained in the declarations page of the policy. It is found in the common policy provisions)

Which of the following is not covered under aircraft hull insurance? Personal Effects Fuselage Wheels Propeller

personal Effects!!!

A drug store has an ice cream counter and someone spills ice cream on the floor. Both the employee and the store manager are aware of the situation. The store can be held legally liable when: Someone falls while the store employee is mopping the floor. The floor has been moped but is still wet. No provisions for cleaning up have been made. All responses listed are correct.

All responses listed are correct!!!

An insurance company can send a notice to the first named insured canceling a businessowners policy for all of the following, EXCEPT: Buildings with 69% or more of the rental units or floor area vacant or unoccupied. The building has been vacant or unoccupied 60 or more consecutive days. Concealment or fraud before or after the policy has been issued. A large liability loss has occurred and the limits are exhausted.

A large liability loss has occurred and the limits are exhausted.

Which of the following policies does not include flood coverage? A Homeowner HO-3 Policy A Personal Auto Policy with "other than collision" Coverage A Personal Articles Floater A floater covering fine arts

A Homeowner HO-3 Policy

The insured company manufactures outboard motors. A faulty manufacturing process produced several defective motors, which were sold with the manufacturer unaware of the defects at the time of sale. The insured became aware of the defects when the events described below occurred to one purchaser. The insured was found liable for the damages. Which of the damages would likely be excluded by the insured’s commercial umbrella liability policy? The outboard motor itself was destroyed in a fire caused by a faulty fuel connection that spread gasoline over the motor. The owner of the motor and two bystanders who tried to help extinguish the fire were burned. Most of the boat to which the motor was attached was damaged. When the owner attempted to get away from the fire, she fell backwards over the edge of the boat and broke her arm on a submerged tree stump.

The outboard motor itself was destroyed in a fire caused by a faulty fuel connection that spread gasoline over the motor!!!

hose responsibility is it to see that a ship is seaworthy? The Ship Owner The Shipper The Captain Both the Captain and the Crew

The Ship Owner

Which of the following statements best defines "manager" under a commercial crime insurance policy? Employee with no supervisory duties. Employee with supervisory duties. Director of a limited liability company. Someone with custody of property inside premises of the insured.

Director of a limited liability company.

Under business income coverage, what coverage clause continues payment of income after the period of restoration is complete? Maximum period of Indemnification Extension of coverage Agreed value Extended business income

Extended business income!!!

Which of the following is used to minimize small property claims and help to keep insurance premiums low? A deductible. A valued policy. Coinsurance. Insurable interest.

A deductible!!! | Deductibles represent the self-insured portion of a property claim. As deductibles increase, premiums decrease

Under what circumstances does an insurer allow the transfer of an insured's rights and duties under a Commercial Package Policy without the permission of the insurer? When the named insured dies When the named insured is in the hospital When the named insured is out of the United States None of the responses listed are correct

When the named insured dies!!!

The BOP provides liability coverages. Which of the following is a correct statement regarding the limits of coverage? The BOP only provides a Per Occurrence limit. The BOP only provides Aggregate Limits of Liability coverage. The BOP Liability section provides for Split Limits of Liability coverage. The BOP contains two Aggregate limits, one for Premises and Operations Liability and one for Products and Completed Operations. The coverage also has a Per Occurrence limit.

The BOP contains two Aggregate limits, one for Premises and Operations Liability and one for Products and Completed Operations. The coverage also has a Per Occurrence limit.

Major medical policies may include a type of deductible wherein the insured pays a new deductible amount for each separate event that causes medical expenses to be incurred. This is known as the: Per-cause deductible. All-cause deductible. Common accident or illness provision. Carryover provision.

Per- Cause deductible!!!

Which of the following would be considered a "supplementary payment" in a liability policy? All post-judgment interest in a suit defended by the insurer. Payment for an insured employee's truck being used by the employee on a business-related trip. Costs for a private investigator hired by an employee to prove he was not involved in a hit and run accident of which he has been accused. Up to $2,000 for the cost of bail bonds for an employee involved in an accident while he was on a trip to Mexico that he won for exceeding sales goals set by the company.

All post-judgment interest in a suit defended by the insurer!!!!

Inland marine policies can cover all of the following, EXCEPT: Property of a moveable nature Bridges, Piers and Decks Radio and TV Towers Aircraft

Aircraft!!!! | Airplanes are covered under an aviation policy and not inland marine insurance contracts

Under a farm policy, which of the following would be covered under Coverage A? A structure attached to the dwelling A structure detached from the dwelling Dwelling Contents Livestock

A structure attached to the dwelling

The health insurance policy that should be recommended as part of a buy-sell funding arrangement would be: A disability buy-out policy. Disability income insurance. A residual disability rider. A major medical policy.

A disability buy out policy!!!

What is an insurance producer’s "implied authority?" Answer Choices: Select the Correct Answer The authority that the public reasonably believes the producer has. The authority that the producer believes it has. Authority given by the principle to the agent that is not formally expressed or communicated. Those specified in a contract with the insuer.

Authority given by the principle to the agent that is not formally expressed or communicated. (Implied authority is an element of the law of agency that is not formally express or communicated. This allows the agent to perform all the usual tasks required to sell and service the insurance policies)

Which of the following watercraft would be covered for liability under Section II (liability)of the homeowner policy? A 28 foot sailboat owned by an insured. A 100 HP jet ski rented to the insured. An outboard motor boat with a 50 horsepower motor. None of the responses listed are correct.

None of the responses are correct!!!

All of the following are examples of the types of exclusions found in professional liability insurance policies, EXCEPT: Compensatory damages. Uninsurable exposures. Contractual liability. Exposures covered under other policies.

Compensatory damages | One of the purposes of this coverage is to provide protection for compensatory damages

If one is found guilty of federal insurance fraud, who can permit the guilty individual to return to the insurance business? Only an insurance regulatory official. Only a court of law after a proper hearing. A federal official. No one since this is a federal offense.

Only an insurance regulatory official!!!!

All of the following are excluded under the commercial crime "Inside the Premises - Theft of Money and Securities" insuring agreement, except: Dishonest acts of customers. Fire. Vandalism. Accounting errors.

Dishonest acts of customers.

Which of the following causes more property damage in the United States than any other natural disaster? Floods Tornados Earthquakes Wildfires

Floods!!!

A long term care insurance policy must include a provision that provides for reinstatement of coverage in the event of lapse if the insurer is provided proof of cognitive impairment or the loss of functional capacity. This provision must be available for_______, and must allow for the collection of any past due premiums. 3 months after termination 5 months after termination 6 months after termination 12 months after termination

5 months after termination

The head of each state's insurance department (the Commissioner, Superintendent, or Director) is empowered to: Enforce state laws relating to insurance. Write state laws relating to insurance. Write policy forms for mandatory insurance coverages. Develop rates for mandatory insurance coverages.

Enforce state laws relating to insurance

Dwelling forms provide what amount of coverage for grave markers and mausoleums? Nothing $5,000 $1,000 $2,000

NOTHING!!!

Which of the following is not an "insured" under business auto liability coverage? The owner of a trailer borrowed by the named insured. Employees of the named insured while loading a truck owned by the insured's business. A contractor who uses one of the insured's vehicles to travel to a job site with the insured’s business. A partner of the named insured (if the insured is a partnership).

The owner of a trailer borrowed by the named insured.

Which of the following best describes the purpose of the Automobile Assigned Risk Plan? To provide auto insurance to people unable to obtain it in the voluntary market. To obtain automobile accident and claim statistics. To distribute to the public comparisons of auto insurance rates. To assist insurance companies in processing claims.

To provide auto insurance to people unable to obtain it in the voluntary market!!! (The plan is designed to assist those that have had driving problems such as too many accidents or violations and are unable to obtain coverage in the standard market and must go into the Assigned Risk Plan. Sometimes an underage driver with no driving violations or accidents will be unable to obtain coverage in the standard)

All of the following are true of the change of occupation provision, EXCEPT: Permits the insurer to adjust premiums upward if the insured changes to a more hazardous occupation. Permits the insurer to reduce the premium if the insured changes to a less hazardous occupation. Permits the insurer to cancel the insurance if the insured changes occupations. Provides for a prorated refund from the date of change.

Permits the insurer to cancel the insurance if the insured changes occupations!!!

Which of the following vehicles is considered a temporary substitute auto under a Personal Auto Policy? An auto loaned by the garage while the vehicle of the insured is being repaired. A pickup truck owned by a neighbor and borrowed by an insured to run an errand. An auto purchased by an insured to replace a previously owned vehicle. An auto rented by an insured when the insured is on vacation.

An auto loaned by the garage while the vehicle of the insured is being repaired!!!

The standard deductible on Section I of the homeowner forms is: $500 $250 $100 $1000

$500!!!!

In claims adjusting, the discovery doctrine provides that the statute does not begin until: The accident occurs. Anytime. The injury is discovered. After a full claim investigation has concluded.

The Injury is Discovered!!!

Under the Commercial Property Liberalization Clause, if the insurer makes any coverage revision which broadens the coverage without an additional premium charge, it will automatically apply to existing policies if the revision is adopted during the policy term or within: 45 days prior to the effective date. 30 days prior to the effective date. 60 days prior to the effective date. 75 days prior to the effective date.

45 days prior to the effective date!!!

All of the following are included in an insurance property estimate of damages, EXCEPT: Cost of materials Overhead and profit Cost of labor Depreciation

DEPRECIATION!!!!

Which of the following best describes "covered property" under the Equipment Breakdown coverage form? Any property that the insured owns or is in the insured's care Buildings and personal property owned by the insured Boilers and machinery owned or operated by the insured Electronic data processing equipment

Any property that the insured owns or is in the insured's care!!!

Dwelling forms include a liberalization clause. It says that any revision of coverage which broadens the insurance without an additional premium charge will be automatically applied to existing policies, if the revision is adopted during the policy period or within: 60 days prior to the effective date. 30 prior to the effective date. 45 prior to the effective date. 90 days prior to the effective date.

60 days prior to the effective date!!!

In ocean marine insurance, what is the purpose of the IVEL clause? To provide excess hull and collision liability coverage. To cover bulk shipments. To require the insured to take all reasonable steps to protect the property from further loss. To pay for the loss of shipper’s fees.

To provide excess hull and collision liability coverage!!!

If the insured has failed to pay the premium for a worker compensation policy issued in New York, how many days notice of cancellation must be sent to the insured? A 15 day notice. A 30 day notice. A 20 day notice. A 10 day notice.

A 10 day notice.

The most comprehensive coverage provided by the Dwelling Property program is found in the: DP-3. DP-1. DP-2. DP-4.

DP-3!!!

In New York, property damage to a rental car is paid under which of the following automobile coverage? The insured's property damage coverage. The insured's physical damage coverage. By the attachment of a special endorsement. Coverage can only be purchased and provided by the rental car company.

The insured's property damage coverage

Employer group dental expense plans: Seldom contain a conversion privilege. Always contain a conversion privilege. Are exempt from COBRA. Are only marketed in stand-alone plans.

Seldom contain a conversion privilege!!!