Prep Test Questions Missed Flashcards
Under a homeowners policy, when does coverage for additional damage to property of others apply.?
Always even if the insured is not legally liable.
The principle used to establish mortality and morbidity tables know as..?
The Law of large numbers
The federal government is not obligated under the TRIA to make payments for any portion of losses that exceed how much annually?
100 Billion
The TRIA Removes the exclusion of coverage for which of the following cause of loss?
Acts of Terrorism.
Unless defined as a felony and when another penalty is not specifically required every violation of the insurance code is a petty misdemeanor punishable by a fine of up to…
500 bucks
The objectives of the National Association of insurance commissioners (NAIC) does not include what..?
flood damage
An insured has a claims made polic with a 1 year policy period. The policy includes a supplementary reporting endorsement to cover claims filed after the end of the mini tail when a $5,000 claim is filed 3 years later for a loss that occurred during the mini tail how much will the policy pay?
Nothing. The loss must occur during the policys coverage perido and 2 the claimmust be fild during the reporting period.
Personal injury protection (PIP) is a form of no fault auto insurance what is a characteristic of it?
It provides third party coverage
Greg is a truck driver with home frunishings IN and delivers furniture to customers. Jeff is a salesman with home furnishings and accompanies Greg on a delievery run to any important customer. On the way Greg runs a red light hits a bus and rolls the truck. Jeff is seriously injured. Which coverage under the unendorsed commerical auto policy will pay for Jeffs Injuries?
No coverage is available because The commercial auto policy includes only liability and physical damage coverage.
Insurance companies that are nonadmitted insurers fall into two categories. They are either an authorized nonadmitted carrier or an unauthorized nonadmitted insurer. What type of license do you need to sell for an authorized nonadmitted insurer?
A surplus lines license and a property and casualty license issued by the resident state.
The following acts of insurance agents and brokers could be covered under an errors and omission insurance policy EXCEPT..?
Willful Misconduct or failure to comply with the law.
If an Insurer does not pay a claim the insured in new mexico has what right?
He can sue and gain an additional Ten percent pay.
What is a statement presenting representation as correct?
A representation can not be altered after the contract is put into effect
Frank owns an apartment house valued at $500,000. He purchases a policy insuring if for $300,000 with an 80% coinsurance clause and a $1000 deductible. Faulty wiring cause a fire that results in a loss of $100,000. How much will the policy pay?
$74,000. To find this you have to divide the amount of insurance carried by the insurance required times the loss minus the deductible
What does reasonable expectation mean?
The doctrine that the insured should recover what a reasonable person would expect to recover under similar circumstances
