practice ad banker exam Flashcards by Red Ryan

In Arizona, Workers’ Compensation Temporary Total Disability benefits are payable up to what percentage of the employee’s wage?

50%

66.67%

91%

75%

66.67%

For temporary total disability, the benefit amount is 66 2/3% of the employee’s monthly wages and is paid during the period of disability. In addition, the compensation for temporary total disability is paid for a specified period of time, depending on the type of disability.

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The Law of Large Numbers provides that:

Small certain losses are substituted for large uncertain losses

As the number of insured units increases, predictability of losses improves

As the number of insured units increases, losses decrease

If funds are insufficient to pay claims, the insured is assessed additional premium

As the number of insured units increases, predictability of losses improves.

The larger the sample is, the more accurate the prediction is.

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Choose the true statement about the Basic Dwelling Form.

The Basic Form covers contents on an open perils basis

The Basic Form automatically covers contents for theft

The Basic Form covers internal explosion

The Basic Form covers loss to trees, shrubs, and plants

The Basic Form Covers internal explosion.
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The Basic Form is written on a named perils basis and does not cover theft, or loss to trees, shrubs and plants.

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The intent of the Personal Effects Floater is:

To insure personal property on a scheduled basis

To provide coverage for property kept at the home

To provide coverage worldwide for travelers

To insure hard-to-value property like fine art or heirlooms

To provide coverage worldwide for travlers.

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All of the following are true regarding the structure of a property policy, except:

The Exclusions itemize the perils not covered

The Declarations include the insured’s name, policy period, policy limits and the amount of premium

The insured’s duties in case of loss are found in the Insuring Agreement

The bankruptcy condition does not relieve the insurer of its duties or obligations under the policy

The insured’s duties in case of loss are found in the Insuring Agreement.

(The Conditions list the general rules and duties in the even of a loss under the policy)

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Which of the following is not covered under the Installation Floater?

Carpeting

Elevators

Construction equipment

Electrical equipment

Construction equipment.

Construction equipment is covered under the Equipment Dealers Floater

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Which statement is true regarding inspections and surveys under the BOP?

The insurer is obligated to make an inspection when the policy is issued

The insurer is obligated to make a survey when the policy is issued

The insurer has the right, but is not obligated to make inspections and surveys at any time

Inspections and surveys may be conducted only upon permission of the insured

The insurer has the right, but is not obligated to make inspections and surveys at any time.

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Which of the following is not an insured contract under CGL?

Lease for a new store location

Sidetrack agreement

An advertising contract

Elevator maintenance agreement

An advertising contract.

An advertising contract is not one of the insured contracts.

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Property damage covered by a liability policy includes which of the following?

Damage to property owned by, or leased to, the insured

Damage to tangible property, including loss of use of that property caused by the insured’s negligence

Damage to property of others in the insured’s care, custody, or control

Damage to the insured’s products arising out of the products

Damage to tangible property, including loss of use of that property caused by the insured’s negligence.

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Which 1980 regulation deregulated the trucking industry?

Trailer Interchange Act

Motor Carrier Public Liability Act

Motor Carrier Act

Trucking Reform Act

Motor Carrier Act

This regulation requires certain vehicles carry minimum liability limits ranging from $750,000 to $5,000,000 depending on the type of merchandise transported.

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The Businessowners Liability Coverage Form includes coverage for bodily injury, property damage, personal injury and advertising injury to which coverage applies, plus:

Mobile equipment being transported on an auto owned or operated by an insured

Liquor liability

Employers liability

Liability assumed under an insured contract

Liability assumed under an insured contract.

Liabiility coverage is provided for sums for which the insured becomes legally liable to pay as damage for bodily injury, property damage, or personal injury and advertising injury, including liability assumed under an insured contract.

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Which of the following is automatically covered under the Businessowners Policy?

Preservation of property up to 60 days

Signs attached to the building

Mechanical breakdown of pressure systems and air conditioners

Off-premises power failure

Signs attached to the building

Signs attached to the building are covered, but the limit of insurance on these signs is $1,000.

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B has two policies on a property. Policy A is for $20,000; Policy B is for $40,000. If Policy A has a pro rata provision, how much will it pay for a covered loss of $15,000?

$5,000

$7,500

$10,000

$15,000

$5,000

The total amount of coverage is $60,000. Policy A provides 1/3 of that total, so Policy A’s pro rata contribution would be one-third, or $5,000. Policy B provides $40,000, or 2/3 of the total coverage, so Policy B pays two-thirds.

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Which statement about Section II of a Homeowners Policy is false?

Insurer investigation expenses are in addition to the limits stated in Coverage E

Obligations of an insurer end when it pays damages equal to the policy limit for any one occurrence

Total liability coverage resulting from any one occurrence may not exceed the Coverage E limit that is stated in the policy

Coverage F limits are subject to a deductible

Section II coverages are not subject to a deductible.

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Which of the following is not covered under the Valuable Papers and Records Floater?

Blueprints

Mortgages

Maps

Securities

Securities.

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Which of the following prevents recovery for injuries caused by a negligent party if the claimant was also negligent?

Absolute liability

Gross negligence

Comparative negligence

Contributory negligence

The contributory negligence defense denies payment to an injured party if they were partly at fault.

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Which of the following is not considered a type of advertising injury?

Misappropriation of advertising ideas

Infringement of copyright

Violation of copyright

Extortion

Criminal acts are excluded under the CGL

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Which of the following provisions in an Ocean Marine policy covers direct damage caused by bursting of boilers?

Inchmaree Clause

Mechanical Failure Clause

Running Down Clause

Boiler and Machinery Clause

Inchmaree Clause

The Inchmaree also covers direct damage caused by breaking of propeller shafts, or loss due to faults or errors in navigation by the crew, and it broadens the hull coverage.

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The amount of insurance provided to cover personal property of a Homeowners Policy is what percentage of Coverage A?

20%

60%

40%

50%

The basic amount of Coverage C insurance is 50% of the Coverage A Limit.

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The Condominium Commercial Unit-Owners Coverage Form does not cover which of the following?

Business personal property

Appliances

Improvements

Building exterior wall

The exterior wall is part of the common property covered by the Condominium Association Coverage Form.

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Which vehicle would not be eligible for a Business Auto Coverage Form?

A van that is used by a delivery firm

A trailer that is used to carry a backhoe

A private passenger auto that is used in the business

A forklift used in the business

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Which of the following would be an eligible risk under the BOP?

Fast food restaurant

Auto repair shop

Manufacturer

Small amusement park

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Product liability would cover:

Contractual liability

Product recall

A restaurant customer who contracts food poisoning

A vending machine that injured a customer’s hand

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Under the HO-4 and HO-6, personal property is covered on which basis?

Replacement cost coverage

Basic Form perils coverage

Broad Form perils coverage

Open perils coverage

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The Mobile Agricultural Machinery and Equipment Coverage Form does not include coverage for: Combines and cotton pickers that are specifically described with a limit of insurance for each Irrigation equipment Hay balers Farm tractors

The Businessowners Protective Safeguards endorsement requires the insured to notify the insurer if an automatic sprinkler system is off for how long? 96 hours 48 hours 72 hours 24 hours

Fine arts and antiques are classes of property insured on a: Valued basis Replacement cost basis Market value basis Actual cash basis

Which of the following statements is true regarding the eligibility of flood insurance? In order to qualify for a federal loan, the property owner must purchase flood insurance if the property is located in a flood area Banks and Savings and Loan Associations may exempt an individual from purchasing the flood insurance that is required for a federal loan Industrial buildings are not eligible for flood insurance All property located in a flood area must be insured against flood by law

All of the following are Optional Coverages under the Businessowners Policy, except: Personal property of others that is in the insured's care, custody and control Money and securities Outdoor signs Employee dishonesty

Which statement is false regarding Workers' Compensation? Payment is made without regard to negligence It covers investigation and defense costs The premium is paid by the employee It pays medical expenses, loss of time benefits and death benefits

The Common Policy Conditions are found in which section of the BOP? Declarations Page Section II Section III Section I

The Difference in Conditions Policy is a special form used to fill in gaps of a property policy. Which of the following is true regarding this policy? The Standard DIC form is developed and filed by the NAIC It is generally written on an open perils basis, excluding losses by perils that are covered under standard property forms It is written with a minimum of 80% co-insurance It is written with a Standard Deductible of $1,000

Coverage for recreational vehicles can be added to the Personal Auto Policy by the: Named Non-Owner Endorsement Cross Terrain Endorsement Miscellaneous Type Vehicle Endorsement Recreational Vehicles Endorsement

Which of the following perils is not insured against by the Special Causes of Loss form under the Farm Property policy? Dishonest or criminal acts Falling objects Weight of Snow or Ice Freezing of plumbing

Under the Arizona Special Provisions endorsements for dwelling and homeowners coverage, which of the following is not an additional coverage? Reasonable repairs Fire department service charge Property removed Debris removal

Which of the following vehicle uses is not excluded under Personal Auto Medical Payments? Occupying a vehicle as a residence Livery Racing Farm use

At a trade show, a plumbing supplier discovers it has accepted payment for its new line of faucets in the form of counterfeit money orders. Under which Commercial Crime insuring agreement would this loss be covered? Outside the Premises Fund Transfer Fraud Money Orders and Counterfeit Money Forgery or Alteration

Which of the following is true concerning Workers' Compensation benefits? Benefits are be paid to employees for their on-the-job injuries, regardless of negligence an anyone's part Benefits are paid only if there was no negligence on the part of the employee Benefits are paid for injuries sustained on or off the job Benefits are paid only upon determination of negligence on the part of the employer

Who is the obligee on a Fidelity Bond? The court The employee The employer The surety

What is the name of the uniform document that common carriers are required to issue to the shipper of the goods being transported? Bill of Lading Bill of Acceptance Shipping Receipt Bill of Transportation

Which coverage is not an Additional Coverage under the Businessowners Coverage Form? Business income and extra expense Equipment breakdown Pollutant clean up and removal Increased cost of construction

The Miscellaneous Type Vehicle Endorsement attached to a Personal Auto Policy allows eligibility of a motorcycle by: Amending the definition of 'your covered auto' and 'newly acquired auto' to include any miscellaneous type vehicle Adding motorcycles to the list of eligible vehicles Altering the four-wheel requirement Specifically naming it in the Declarations

Which of the following is not true of the supplemental extended reporting period under the Claims-Made Form of the CGL? The insurer may void it after the premium has been paid by the insured It is an optional extended reporting period of unlimited duration The one time premium may not exceed 200% of the annual premium for the coverage part It must be purchased within 60 days after the end of the policy

Which of the following is true about the Dwelling Policy Special Provisions – Arizona endorsement? The insurer has 60 days to pay a covered property loss Intentional loss to property applies to a loss caused by domestic violence The insurer can subrogate against the person who caused domestic violence Fire department service charges are covered

Which of the following is not considered 'occupying an automobile'? Jumping off the trunk Getting out of the car Standing by the car exchanging insurance information Closing a car door

The type of absolute liability that applies to products is called: Vicarious liability Assumption of risk Comparative liability Strict liability

Covered equipment under the Equipment Breakdown Protection Coverage Form, includes: Electrical and mechanical equipment used in the utilization of energy Catalysts Equipment manufactured by the insured for sale Insulating and refractory material

A producer who engages in an unfair or deceptive practice can be ordered by the Director to immediately stop engaging in that practice. This is an example of which of the following? Suspension Civil penalty Contempt of court Cease and desist

Which of the following claims would not be covered under Section II of a Homeowners Policy? Medical expenses of a guest Damage to property of others Third-party bodily injury for which the insured is legally liable $500 a day for the insured's loss of earnings while defending a suit

Which of the following is eligible to receive medical payments under Section II of a Homeowners Policy? The named insured A tenant who lives in a portion of the insured's residence The named insured's spouse A residence employee

An underwriter will consider each of the following factors when evaluating a risk, except: Nature of the risk Rates Hazards Claim history

# Choose the false statement about the Homeowners Policy. Coverage D provides coverage for additional living expense Motor vehicles do not meet the definition of contents Personal property owned and used by the insured in a vacation home would be covered Coverage C extends to animals, birds, or fish owned by the insured

An insured who goes to client's offices and homes for appointments would need coverage for which liability exposure? Premises and Operations Contingent Liability Completed Operations Products

Which of the following terms best describes the crime of taking of property from inside the premises or a locked safe or vault by a person who commits forcible entry? Theft Shoplifting Burglary Robbery

Insurance Company C has decided that it is insuring too many homes in a particular area. Therefore, it decides to reinsure R's Homeowners Policy because of the high value of R's dwelling. The reinsurance contract can best be described as: An agreement between R, Insurance Company C, and the reinsurer An agreement between R and the reinsurance company An agreement between Insurance Company C and the reinsurer An agreement between R's agent and Insurance Company C

Which of the following would not be covered under a Personal Auto Policy? An eight passenger van with a gross vehicle weight of 7,600 pounds A motorcycle A pickup truck with a gross vehicle weight of 7,600 pounds Any trailer that the insured owns

Which of the following is not within an agent's authority? Selling applications on the insurer's behalf Countersigning insurance contracts Representing the insured's interest Using express authority

Which of the following is true regarding commercial crime? Burglary must include threat of violence Money includes evidences of debt The Employee Dishonesty coverage form covers extortion Theft includes any act of stealing, including burglary and robbery

All of the following are true of torts, except: They constitute the basis of a claim by a third party Negligence is a type of tort They must be committed intentionally Liability insurance excludes intentional torts

Section II of a Homeowners policy may cover which of the following incidents? Bodily injury caused by an insured's activities while picnicking at a city park The homeowner's family dog bites their 2 year old son The insured hits and injures a swimmer while enjoying a ride in an owned inboard motorboat An insured's guest damages the stair railing during a visit

A consumer electronics business discovers that someone has used computer software to fabricate security passes, which were then used to gain access to their warehouse and steal several cases of smart phones. Under which Commercial Crime insuring agreement would this loss be covered? Forgery or Alteration Inside the Premises Theft of Money and Securities Computer Fraud Money Orders and Counterfeit Money

A deer chews a hole in an insured's shed sitting next to a pond. Which of the following forms could cover this damage? HO-2 DP-1 HO-3 HO-8

The uniform document that common carriers are required to issue to the shipper of the goods being transported, is called a: Bill of Transportation Bill of Acceptance Bill of Lading Shipping Receipt

All of the following are true of the Fine Arts Floater, except: Coverage is written on a replacement cost basis It has a 90-day automatic coverage for newly acquired items Coverage applies only to scheduled items It covers such items as paintings, rare manuscripts and antiques

Which of the following claims would be covered under the DP-3? Theft to a dwelling under construction Damage by vandalism to a dwelling vacant for 30 days before the loss Wind damage to TV antennas Damage to a fence due to freezing and thawing of ice due to a winter storm

Which of the following is not true about medical payments under the Personal Auto Policy? Medical expenses of all persons occupying the insured auto are covered Medical expenses of the insured and family members are covered Coverage applies only for medical expenses incurred within one year of the accident The coverage limit applies per person, per accident

Which statement is false under a Homeowners Policy? Theft of silverware is covered up to $2,500 The scheduled personal property endorsement provides open perils coverage Money is covered up to $500 per occurrence An endorsement may be added to cover the contents on a replacement cost basis

Liability coverage is designed to: Permit the insured to countersue the insurer for losses not covered Protect the insured from bodily injury and property damage they are legally obligated to pay Cover injuries and damages caused by the insured's intentional and unintentional actions Protect an insured from being sued by an injured party

A commercial property has a $400,000 Commercial Building and Personal Property policy, and a fire breaks out on the loading dock, causing $80,000 in damage and $20,000 in debris removal. What is the maximum that may be received for the damage? $80,000 $90,000 $400,000 $100,000

A Mobile Home Insurance Policy is most similar to: An Auto policy A Tenants policy A Homeowners Policy A Travel Trailer policy

Under the Farm Property Coverage Form, the definition of Farm Personal Property includes which of the following? Equipment, supplies, and products of farming Household furnishings of the farm dwelling occupied by the insured Licensed vehicles owned by the insured and used in the farm operation Silos, grain bins, and fences used in the farm operation

Which of the following is not a coverage extension under the Building and Personal Property Coverage Form? Personal effects and property of others Newly acquired or constructed property Outdoor property Inflation guard

Which Cause of Loss form for the Commercial Property Coverage Part will cover loss of sales merchandise due to a burglary? The Special Form The Broad Form The Broad Form and The Special Form There is no burglary coverage provided by the Commercial Property Policy

An insurer will not pay which of the following in the event of a Workers' Compensation claim? Claim expenses Defense costs Loss of insured's earnings because the insurer requested the insured come to court Premiums for appeal bonds

The part of an insurance contract that varies with each individual policy, but is still a mandatory part of the policy, is the: Exclusions Insuring agreement Conditions Declarations

Which of the following is true regarding the Earthquake Cause of Loss Form? It can be used only with another Causes of Loss Form It includes coverage for earthquakes that start within 168 hours after the expiration of the policy It can be used by itself to provide a stand alone Earthquake policy It provides coverage for mudslides

Endorsements that coordinate CPP coverages to avoid duplication are called: Interline Special Coordinating Panel

Following a large fire that requires several weeks of down time due to rebuilding, the Business Income Coverage Form will pay for: Property that is not covered under the Building and Personal Property Coverage Form Property that is spoiled because of loss of utility service Net income plus continuing expenses of the business Gross income, less taxes

Which of the following most accurately describes the abandonment condition? Abandoned property must be protected from further damage The insured cannot abandon damaged property to the insurer The insured must cooperate with the company in the investigation of a claim The insured must make reasonable and necessary repairs to protect the property

All of the following are included in Section I of the Businessowners Coverage Form, except: An automatic 90% coinsurance clause Business Income and Extra Expense coverages An automatic increase in the limit of insurance for the building An automatic increase in Business Personal Property Coverage to offset seasonal variations in stock

Which of the following are eligible to be insured under a Dwelling Policy? Dwellings with any type of business in them Dwellings used for incidental business Farms Mobile homes on wheels

S carries a Personal Auto Policy with Liability limits of 50/100/25. What is the maximum the policy will pay if S struck another vehicle causing injury to the occupants as follows: Driver - $70,000; Passenger 1-$30,000; Passenger 2-$50,000 and property damage to the other vehicle - $20,000? $150,000 $170,000 $125,000 $120,000

Actual Cash Value is best defined as which of the following? Today's current price, minus depreciation Market value Replacement cost Appraised value

All of the following are true of the HO-2, except: The HO-2 pays for losses on an open peril basis The HO-2 pays for losses to the dwelling on a replacement cost basis The HO-2 covers owner-occupied dwellings The HO-2 covers the broad form perils

If the insured and insurer do not agree on the value of a property loss, what condition would apply? Arbitration Subrogation Abandonment Appraisal

How much will the Dwelling Policy pay for additional living expenses after a dwelling insured for $100,000 under Coverage A is damaged by a fire? $30,000 $20,000 $10,000 $50,000

The Named Non-owner endorsement: Does not apply to a rented vehicle Provides only liability coverage Does not supply coverage to meet a state's financial responsibility law requirements Covers only the person named on the endorsement

Which of the following is a legal liability imposed without demonstrated negligence? Contingent Liability Absolute Liability Vicarious Liability Direct Liability

The Basic Causes of Loss Form under the Commercial Property Coverage Part would not cover which of the following? Sinkhole collapse Riot or civil commotion Sprinkler leakage Steam boiler explosion

Under the Commercial Property policy, vacancy is allowed for how many days before the peril of vandalism coverage is suspended? 120 30 60 90

Aircraft All Risk coverage includes which of the following levels? Taxiing and on the ground and not in motion only Taxiing and in flight only On the ground and not in motion only On the ground, taxiing, and in flight

Upon the passing of a licensing examination, the Director will issue what type of license to the applicant pending completion of their background investigation? Permanent Probationary Conditional Temporary

The loss of property when the cause of loss is not known is considered: Robbery Theft Mysterious disappearance Burglary

If a vehicle in Arizona is involved in a theft, what is the first thing the insured must do before receiving transportation expense reimbursement from an insurer? File a claim for the vehicle Provide proof of transportation expenses Report the theft to the insurer Report the theft to the police

M has a liability policy insuring M's flower shop. After M sells the shop, the buyer asks if M can transfer the liability policy as part of the sale. Which provision prevents M from making this transfer without the insurer's consent? Subrogation Assignment Assumption of risk Liberalization

Short-rate cancellation occurs when: The insured cancels the policy mid-term A policy is flat cancelled The policy is non-renewed An insurer cancels the policy mid-term

Under the Workers' Compensation policy, the insurer may audit records pertaining to the policy for up to how many years after the policy period ends? 4 1 2 3

Which of the following are the Territorial Limits of the Personal Auto Policy? The United States, its territories and possessions, Canada, and Mexico The United States, Puerto Rico, Canada, and Mexico The United States, Mexico, and Canada The United States, its territories and possessions, Puerto Rico, and Canada

Which of the following is true about the Assigned Risk Plan? It is intended for employers who are unable to purchase in the voluntary market Insurers with income over $10 million can opt out of participating in the Plan It is intended for employers who have high claims volume Private insurers compete with the Assigned Risk Plan

Which section of the Garage Coverage Form provides physical damage coverage for the insured's covered autos? Section IV Section III Section II Section I

Which Business Auto Symbol is the most broad of all Symbols? Symbol 3 Symbol 4 Symbol 1 Symbol 2

Producer B tells applicants that if they buy their insurance with the producer's agency, the applicants will be refunded the first month's premium. This is an example of which unfair trade practice? Rebating Coercion Misrepresentation Unfair Discrimination

Which type of cargo policy would cover a person who owns his/her own truck and hauls his/her own goods? The Motor Truck Cargo Truckers Form Policy A Bailee Policy An Installation Floater Policy The Motor Truck Cargo Owners Form

Which of the following is not true about the Home Business endorsement? Professional services are excluded Only property damage is covered The business must be owned by the insured Advertising injury is covered

Which of the following is not an element of negligence? Duty owed Proximate cause Forseeable consequence Assumption of risk

Which of the following claims would be covered by Collision Coverage under Part D of the Personal Auto Policy? Damage to the auto caused by collision with an animal on the roadway Damage to the auto caused by objects blown into it during a severe windstorm or tornado Breakage of the windshield caused by collision with a stone or other missile Damage to the insured auto's bumper when the auto crashed into a tree

All of the following are true of medical payments under the Commercial General Liability Coverage Forms, except: Coverage applies to injuries that occur because of the insured's operations Coverage applies to the insured's injuries Coverage applies to expenses that are incurred and reported to the insurer within 1 year of the accident Coverage applies to injuries that occur on the premises that the insured owns or rents

In order for a business entity to obtain a producer license, it must comply with which of the following requirements? Ensure that all employees acting as producers are licensed as producers Pay fees after submitting an application license to the Commissioner Provide the name and address of the company’s clients Only disclose the names of the company’s CEO

Which of the following coverage forms covers the cost of replacing or reproducing documents that are important for the continuation of business such as books, files, and maps? Business Property Coverage Form Valuable Papers and Records Coverage Form Accounts Receivable Coverage Form Commercial Articles Coverage Form

# Choose the false statement about paying and sharing commissions: An insurer must pay commissions for selling insurance to only licensed persons Renewal commissions cannot be paid to a person who is no longer licensed on the renewal date An unlicensed person cannot accept a commission for negotiating insurance Commissions paid to producers are negotiated with the insurers that they represent

Under the property removed coverage extension of a Dwelling Policy, which of the following is incorrect? The policy will not provide any coverage while insured property is being removed from endangered property Coverage applies up to 5 days under the DP-1, and up to 30 days in the DP-2 and DP-3 forms The property is covered against direct loss from any peril The extension does not change the Limit of Liability that applies to the property

# Choose the answer that is true regarding the HO-4 and HO-6. Both provide open perils coverage on the personal property Losses are paid on a replacement cost basis The HO-4 is used to insure the personal property and personal liability of the insured, but does not include the building itself The amount of insurance on the condominium containing the personal property is 10% of the Coverage C amount of insurance

When a loss occurs as a result of two perils, one of which is excluded and the other of which is insured against, the situation is known as: Concurrent Causation Bilateral Causation Supplemental Causation Proximate Causation

An injury claim must be filed with the Workers’ Compensation insurer within __________ of the loss. 6 months 1 year 3 months 3 years

Which Ocean Marine insurance provision protects against direct damage caused by bursting of boilers? Running Down Clause Inchmaree Clause Mechanical Failure Clause Boiler & Machinery Clause

ABC Industries contracts with municipal governments to build bridges, viaducts, and similar engineering projects. If a bridge completed in the prior year by ABC Industries were to collapse, which kind of liability exposure would this be an example of? Contingent liability Completed operations Premises and operations Products

Which of the following statements regarding deductibles is true? Deductibles tend to increase premiums Deductibles help reduce the number of frivolous or small claims Deductibles reduce the total amount of insurance available Deductibles apply only to larger losses

The following are all found on the Declarations page, except: Location of the insured property The policy exclusions Amount of the deductible Expiration date of the policy

In Arizona, a temporary insurance producer's license issued upon the death of the original licensee is valid for how long before needing to be renewed? 180 days 90 days 365 days 270 days

Under the Basic Dwelling Form, when is damage caused by vandalism included as covered peril? When under the unendorsed DP-1 This coverage is not available in the Basic Dwelling Policy When the Extended Coverage perils are added to the DP-1 When the VMM Endorsement is added to the DP-1

Under the CGL, which of the following would exclude from coverage the legal liability associated with a product? Negligence Breach of warranty Expected or intended injury Strict liability

Which of the following best describes the Debris Removal coverage under the Homeowners policy? The debris must be removed within 30 days of the loss Coverage is limited to 10% of the Coverage A Limit Debris Removal applies only to loss by fire, lightning, and windstorm The policy will pay the insured for removing debris from a covered loss

In Arizona, the minimum limits of liability are ________. 50/100/25 25/50/25 30/60/25 25/50/15

If a licensee is called into active military service, they may request ___________ by sending a statement to the Department including their name, license number, and date the service begins. Military leave Voluntary surrender Inactive status Temporary leave

Which of the following is an insured under the CGL policy? Spouse of volunteer worker Trustee's spouse Spouse of a partner Spouse of LLC members

The DP-3 insures personal property against the same perils as: The DP-1 Personal Property Coverage The DP-3 Dwelling coverage The DP-2 Personal Property Coverage The DP-1 Dwelling Coverage

Which of the following claims would be covered by the First Aid Expenses under the Homeowners Policy? A member of the insured's family is injured while on the premises The named insured is injured while off the premises Nonfamily residents of the household are injured while on the premises A neighbor is injured while helping the insured install a carpet

If a producer in Arizona wants to send notices or written documents to an insured electronically, what should be the first step? Stop sending notices in hard copy format Receive consent from the insured Charge the insured a fee for not using electronic communication Notify the insured the date electronic communications will begin

In Arizona, Workers' Compensation Disability benefits are payable retroactively to the day the injured employee left work if a disability is longer than how many days? 14 3 7 6

If an individual wants to transact business as an insurance producer, they must meet all of the following requirements, except: Apply for a license within 2 years of passing the licensing exam Be at least 18 years old Not commit any act that is grounds for denial Pay all required fees

In the state of Arizona, an insurer may use marital status to determine which of the following? Policy terms Dependent status Premium rates Insurance limitations

Which statement about insurance information and privacy protection is true? An insurer may not investigate criminal or fraudulent activity Personal information may be given to a third party at any time An insurer must provide written privacy protection disclosures Personal information may be disclosed over the telephone at any time

All of the following are true of the Dwelling Policy Broad Form, except: Losses to the dwelling are paid on a replacement cost basis The Broad Form automatically covers incidental business occupancies The Broad Form covers dwellings located on farms The dwelling and contents are covered for the Broad Form perils

Which state plan provides coverage to employers who cannot obtain insurance in the normal market? Arizona Workers’ Compensation Fund Workers’ Compensation Insurance Plan Industrial Commission Assigned Risk Plan

By Arizona insurance law, what is the maximum amount an insurer may pay for an individual reasonable incentive before it is considered a prohibited inducement? $200 $100 $50 $150

Which of the following statements regarding using an assumed business name is not correct? A producer may use an assumed name at any time The Director may deny the use of an assumed name An assumed business name may not be misleading or deceptive A trade name must be legally registered

An insurer discontinued a policies that had been posted online. How long must the insurer allow the information for the policy to remain accessible? 2 years 1 year 5 years 3 years

For auto insurance, a ___-day written notice of cancellation or nonrenewal must be provided to the insured. 14 21 7 10

In Arizona, if an insured misses a payment on their personal auto policy, how long do they have to pay the premium before the policy is cancelled? 21 days 10 days 5 days 7 days

A policy cannot be issued in Arizona without identifying the name of the producer. Which of the following is a policy that is exempt from this rule? Liability insurance Policies issued by a vending machine Policies issued through producers who receive commission Life insurance

Which of the following statements is true regarding insurance vending machines? The vending machine must display the insurer's information but not the producer's Insurance vending machines may have insurance from unauthorized insurers Once granted, the authority to issue insurance via vending machine does not expire The Director must find the policy suitable for vending machines or it may not be solicited

Under the AZ Miscellaneous Type Vehicle endorsements, all of the following coverages can be added by endorsement, except: Golf carts Motor boats Dune buggies Motorhomes

Which of the following is a true statement about the Arizona uninsured/underinsured motorist coverage? A volunteer worker’s injuries from an uninsured driver are excluded Underinsured motorist coverage applies if the insurer for the negligent party is insolvent If more than one policy applies to the same accident, the coverage will be proportionate based on the limits of liability Uninsured motorist coverage can be rejected by the insured

A notice of information practices is not required in which of the following situations? Insurance benefits change Paying a premium installment to the producer Policy is reinstated Receiving a renewal policy

If a premium payment is sent through certified mail, which of the following is considered the date of payment? 5 days before the insurer receives the payment The date the insurer receives the payment The date shown on the postmark The date the mail is issued for delivery

# Choose the true statement regarding the National Flood Insurance Program. The federal government oversees and reinsures all flood insurance Coverage includes trees, shrubs, and plants Agents may bind flood insurance for up to 15 days prior to submitting the final application Flood policies are available only from the National Flood Insurance Program

Coverage is open peril on the Jewelers Block Floater but there is no coverage for ___________ unless added as an optional coverage. Loss of market Broken or smashed show windows Wear and tear Off-hours

Which of the following prevents all recovery for injuries if the claimant was also considered partially negligent? Contributory negligence Vicarious negligence Proximate negligence Comparative negligence

Which of the following best describes the reason to purchase an HO-8? When insuring homes with a replacement cost exceeding $250,000 When insuring an older home that might create a moral hazard when insurance is written at replacement cost When insuring homes namely located on farms When looking for a policy that covers the dwelling on an ACV basis

Which is true of the Dwelling Policy Special Form? The form will cover the theft of contents The form will cover the cracking of walls Losses to the dwelling are paid on an actual cash value basis Contents are covered on an actual cash value basis

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