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Flashcards in insurance@@ Deck (20):
1

Adverse selection occurs when:

Applicants are accepted by the insurer with little or no attention given to underwriting. .

2

What deductible applies to the Additional Coverage "fire department service charge"?

The policy deductible does not apply

3

The insuring agreements of an Equipment Breakdown policy, provides coverage for

First party coverages and property damage to property of others

4

Who must be notified when a commercial property policy is cancelled?

The first named insured.

5

Under the farm forms, theft of certain types of property has a theft coverage limitation. The theft limitation on firearms and other related equipment is

$3,000.

6

The federal law that requires insurers to give customers written privacy notices is:

The Gramm-Leach-Bliley Act (GLB Act), also known as the Financial Modernization Act of 1999, requires insurers to give customers written privacy notices that explain information-sharing practices and requires insurers to safeguard sensitive data.

7

he HO-3 form insures for direct physical loss to covered property involving collapse of a building caused by all of the following, EXCEPT:

Settling

8

All of the following statements regarding the Motor Carrier Act of 1980 are correct, EXCEPT

It requires truckers to certify that they are able to meet financial obligations arising from physical damages of their trucking operations.

9

The MCS-90 form is used to…

indicate that the vehicle in question has coverage including pollution liability for specifies limits being defined by what is being hauled,

10

Bankruptcies may be included in a consumer report if they predate the report by

10 years or less.

11

How many square feet in a bundle of roof shingles?



33.33 square feet.

12

Eligibility requirements for the National Flood Insurance Program are not set by

private insurance carriers.

13


T/F Eligibility requirements are set by private insurance carriers

False

14

You are assigned the investigation of a head-on collision involving major injuries in both the insured and claimant vehicles. First contact should be made with the:

Driver of the claimant vehicle

15


What does a Commercial Property Policy on a mortgaged property specify as a duty of the insured?

Provide sworn proof of loss statement if requested by the insurance company

16

Which of the following statements is true with respect to symbol 1 used on the BAP declarations page?

Symbol 1 is used only for liability coverage. It provides the broadest liability coverage, if this symbol is used, "any auto" is covered

17

The liability coverage section of the personal auto policy does not extend coverage to which of the following vehicles Mr. Love owns?

Motorcycles

18

The Classic Drug Company's claims-made CGL basic extended reporting period provides coverage for occurrences reported to the insurer within 60 days of the policy expiration date and claimed against the insured:


Within five years of the policy expiration date.

19

The Businessowners Policy provides coverage on the buildings and contents. How is the coverage provided?

Either on an actual cash value basis or replacement cost basis.

20


Which of the following would NOT be covered under the uninsured motorist coverage of the personal auto policy?

The owner of the uninsured vehicle