Flashcards in Insurance 2B Deck (29):
In New Hampshire, notice of cancellation or nonrenewal of a commercial fire, marine, multi-peril, casualty, or liability policy (other than automobile or workers compensation) requires a _____ day notice to the insured.
What statement best defines "manager" under a commercial crime insurance policy?
A director of a limited liability company.
Under the commercial general liability policy, medical payment expenses must be reported within
1 year of the accident
The "best evidence rule" is best stated as:
best evidence are the original documents themselves
What type of coverage would a heating and cooling contractor need when work has been done on a newly renovated building but not yet accepted by the owner?
An installation floater
How is unscheduled personal property covered under standard ISO homeowners policies?
Actual cash value
What is the difference between replacement cost and actual cash value?
Replacement cost does not make a deduction for depreciation, actual cash value does.
An insured is reimbursed by his insurance company for the cost of a new sofa after a 10-year-old sofa is destroyed by fire. Which of the following best describes this situation?
Flood insurance can be purchased from:
any licensed property agent
A Building and Personal Property Coverage form provides coverage for all of the following types of property, EXCEPT:
Growing crops and lawns
The insurance company does not pay for certain damaged property under an Equipment Breakdown policy. Identify the property.
A mutual insurance company is:
owned by its policy holders
What insurance policy will cover bodily injury arising out of the operation of a pickup used for farming?.
liability portion of a personal auto policy. Farming is covered for business use under the PAP.
A New Hampshire insured has had an automobile accident and reported it to his/her insurance agent. The insured has asked the company not to investigate or pay the reported loss. Will the insurer comply?
An insurer can't refuse to make an evaluation of the insureds liability.
The Businessowner's policy provides loss of income on an "actual loss" sustained bases for up to:
The amount it would cost to repair or replace property minus depreciation is the definition of:
Actual cash value
Under the dwelling insurance program, an endorsement may be attached to the policy to cover dwellings during the course of construction. The insurance company must be advised when construction is completed, and within ____ after the insured takes occupancy of the dwelling.
What is a Loss Sustained policy form?
It is a Bond that protects against employee theft up to a year after its canceled.
What is the % coinsurance of Builders Risk Coverage, and does it terminate the day after construction is completed?
100% coinsurance required. Coverage doesn't terminate the day after construction is completed.
An initial premium charged the insured under a reporting form type of policy is called the:
Installation floaters are written on a named or open peril basis?
open peril basis
At the discretion of the Commissioner, they may suspend or revoke an adjuster’s license or subject that person to an administrative penalty of:
In liability insurance, which of the following would be considered an "occurrence"?
Smoke from a factory discolors siding on a nearby home. Occurrences include sudden and accidental damage, and continuous or repeated exposure resulting in injury or property damage.
Which of the following endorsements can be used under the BAP to extend coverage to individuals such as the owner of the business who does not carry personal auto insurance?
Drive other car coverage
A leased vehicle is covered auto under the personal auto policy (PAP) if it is a private passenger auto leased for at least:
Under a Commercial Property policy, which of the following is not a covered peril under the Basic Cause of Loss form?
Water damage that is not caused by putting out a fire and the accidental leaking from a sprinkler system.
While in England an insured has her purse stolen and files a claim for $500 of cash, $1,000 in airline tickets, $250 for miscellaneous items and $50 for the value of the purse. How much of this loss would be covered under a DP-1 dwelling form?
Nothing, The dwelling forms do not cover personal property unless a theft coverage endorsement is purchased.
What coverage does the Difference in Conditions form provide?
Gaps left by other property insurance forms. This could include Flood and Earthquake.