P&C

Question 1

Insurance binders

Answer 1

Temporary or interim insuring agreement

Question 2

An insurance company terminating an insurance contract at the end of the policy period

Answer 2

Nonrenewal

Question 3

Liberazation cause

Answer 3

If the insurer broadens coverage with no increase in premium, that broadening of coverage will apply to existing policies with out the need for an endorsement

Question 4

“Loss of payment” condition. How long the insurer has to pay for a loss after receiving the proof of loss and having reached an agreement with the insured

Answer 4

Personal lines- 60 days

Commercial lines- 30 days

Question 5

Adhesion contract

Answer 5

Insured does not participate in determining the policy’s terms at all. Considered a “take it or leave it” contract, with out negotiation.

Question 6

An unforeseen and unintended event that happens at a known time in a known place.

Answer 6

Accident

Question 7

Condition or defect that exists within property itself that causes the property to spoil, break, destroy itself, decay, rust, yellow, etc.

Answer 7

Inherent vice

Question 8

Elements of negligence

Answer 8

LBPD
Legal duty owned
Breach of legal duty owed
Proximate cause 
Damage or actual loss

Question 9

Liability loss

Answer 9

Arises out of a persons actions toward other people or their property

Question 10

Maximum horsepower allowed for a boat that you own to be covered under the personal liability section of homeowners policy

Answer 10

50 HP

Question 11

Transportation expenses PAP

Answer 11

Maximum of $20 a day, up to $600

Question 12

Under a PAP, Liability resulting from the insurers use of a non owned auto is

Answer 12

Provides on an excess basis.

Owners coverage is primary and drivers is excess

Question 13

The limited Mexico coverage provides coverage for how many miles into Mexico?

Answer 13

25 miles

Question 14

Coverage for recreational vehicles that can be added to the PAP

Answer 14

Miscellaneous type vehicle endorsement

Question 15

Boat owners policy is usually written on what basis?

Answer 15

Replacement cost

Question 16

Federal governments NFIP program coverage provided for residential homeowners

Answer 16

$250,000 dwelling/ $100,000 contents

Question 17

What is covered under the commercial builders risk coverage form?

Answer 17

Foundations, materials, supplies, and equipment intended to become a permanent part of the building

Question 18

Standard deductible on a commercial package policy

Answer 18

$500

Question 19

The owners and contractors protective form covers the insured for liability:

Answer 19

Arising out of the operations of independent contractors or subcontractors

Question 20

Business auto policy

Symbol 9

Answer 20

Non owned autos

Pizza delivery

Question 21

Business auto policy

Symbol 8

Answer 21

Hired autos only

Question 22

Provides physical damage and auto liability, as well as general liability for the business engaged in sales, service, and storage of autos.

Answer 22

Garage coverage

Question 23

How many vehicles required to have to qualify for for a commercial auto fleet rate?

Answer 23

5 or more

Question 24

Under the business auto coverage form, the non-owned auto category represents:

Answer 24

Autos owned by employees, but driven in the insureds business

Question 25

A company that frequently rents autos and trucks for use in the business should include which symbol in the business auto policy?

Answer 25

Symbol 8

Question 26

3 types of business auto coverage form

Answer 26

Comprehensive, collision, and specified cause of loss(Aka) Named perils

Question 27

Business auto coverage form that is designed to protect the employer when employees drive their own personal autos on company business

Answer 27

Employers nonownership liability

Question 28

Under the business auto coverage form, the non-owned auto category represents:

Answer 28

Autos owned by employees, but driven in the insureds business

Question 29

Coverage for vehicles leased or rented by a company for employees to use for personal use

Answer 29

Drive other car coverage endorsement

Question 30

When an employee drives his own vehicle in an employers business, he is covered under:

Answer 30

Employee as additional insured

Question 31

The inside premises-robbery or safe burglary insuring agreement in the commercial crime policy covers:

Answer 31

Loss of other property from a robbery of a custodian

Question 32

The loss sustained type of crime coverage will pay for losses that occur during the policy period and is discovered no more than how long after the policy period is expired?

Answer 32

1 year

Question 33

A business can obtain coverage for liability arising out of discrimination and sexual harassment by purchasing:

Answer 33

Employment practices liability insurance

Question 34

Which surety bond guarantees that bills for labor and materials will be paid by the contractor as they are due?

Answer 34

Payment bond

Question 35

The party to a surety bond who promises to do or not do a specific thing is the:

Answer 35

Principal

Question 36

Individuals who are appointed by the court to manage the property of another might require what kinda of bond?

Answer 36

Fiduciary Bond

Question 37

In fidelity bonds, the party to whom the promise is made and for whose protection the bond is written is the:

Answer 37

Obligee

Question 38

In surety bonding, which party seeks and pays for the bond?

Answer 38

Principal

Question 39

Bid bonds, payment bonds and performance bonds are all examples of:

Answer 39

Contract bonds

Question 40

In ocean marine insurance, a general average loss is:

Answer 40

A partial loss arising from a sacrifice of cargo to save remaining property

Question 41

A surety bond is:

Answer 41

A three party contract

Question 42

The nationwide marine definition

Answer 42

Generally distinguishes marine risks from property risks

Question 43

The business owners policy:

Answer 43

Provides a prepackaged policy of property and liability coverages for certain types of small businesses

Question 44

The minimum liability limits under a BOP are:

Answer 44

$300,000 per occurrence

Question 45

In workers compensation, an experience rating over 1.0 will cause:

Answer 45

A premium increase

Question 46

Workers compensation for crews of ocean vessels

Answer 46

Jones Act

Question 47

In MOST states, workers compensation laws are:

Answer 47

Compulsory, required by law

Question 48

Coverage for sums an employer becomes legally obligated to pay under common law as a result of a work related injury to an employee is provided by:

Answer 48

Part two- employers liability section of the workers compensation policy

Question 49

Amount generally used when writing an umbrella policy

Answer 49

$1 million

Question 50

A potential cause of loss, such as fire, explosion, flood , or theft is considered to be a:

Answer 50

Peril

Question 51

The homeowners for that provides open peril coverage on the dwelling and broad form coverage on personal property is the:

Answer 51

HO-3

Question 52

Under the unendorsed homeowner policy, jewelry is covered up to what amount?

Answer 52

$1,500 for loss by THEFT

Question 53

Policy specifically designed to cover business property

Answer 53

Commercial property coverage part

Question 54

The commercial inland marine transportation form used to insure a carriers liability for damage to cargo it is transporting is the:

Answer 54

Motor truck cargo policy

Question 55

Which condition provides the insurer the right to collect against a reasonable third party?

Answer 55

Subrogation

Question 56

Under aleatory contracts the exchange of values may be:

Answer 56

Unequal