1 - Practice Test Ques Flashcards Preview

NY Indepentend General Adjuster > 1 - Practice Test Ques > Flashcards

Flashcards in 1 - Practice Test Ques Deck (103)
Loading flashcards...
0

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!!!!

1

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.

2

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

3

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

Dentists

Insurance Agents

Real Estates Agents

Lawyers

DENTISTS!!!

4

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

Annually

Biannually

Every three years

Every four years

BIANNUALY!!!

5

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)

6

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)

7

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)

8

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)

9

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!!!

10

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)

11

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!!!

12

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

0

$1200!!!

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

13

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)

14

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)

15

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!!!

16

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

17

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

All of the responses are correct

18

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

19

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)

20

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)

21

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

22

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

$200

(The homeowner policy limits the theft of money to $200)

23

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)

24

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!!!

25

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!!!

26

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!!!

27

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

28

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!!!

29

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!!!