P Review Flashcards
(100 cards)
Inland Marine will NOT cover:
Select one:
a.
cattle shipped to market
b.
imports
c.
leased buildings
d.
exports
Leased buildings
A Business Income Coverage Form has a $100,000 limit of liability with a 25% monthly limit of indemnity. If the insured loses $47,000 in a particular month, the most the policy will pay for that month’s losses is:
Select one:
a.
$0
b.
$25,000
c.
$47,000
d.
$100,000
25,000
Under Section II of the HO policy, Med Pay will cover a claim:
Select one:
a.
for pain and suffering.
b.
only if the insured is negligent and liable.
c.
for medical expenses of the insured.
d.
regardless of liability.
Regardless of liability
Which would NOT purchase a bailee’s floater?
Select one:
a.
dry cleaner
b.
a credit union
c.
computer repair business
d.
a furrier
A credit union
If a business insured by a Building and Personal Property policy (BPP) acquires a new business, the new business is insured for a grace period of:
Select one:
a.
30 days
b.
60 days
c.
90 days
d.
120 days
30 days
Marine Transportation Insurance covers:
Select one:
a.
domestic shipments of goods
b.
commercial buildings
Domestic shipments of goods
A Mobile Home policy covers a detached garage:
Select one:
a.
to 10% of A (with at least $2,000 coverage)
b.
with no limit
c.
only by a rider, endorsement, separate policy
d.
to 20% of A
To 10% of A (with at least $2,000 coverage)
The HO’s Supplementary (Additional) Payments pays:
Select one:
a.
in addition to the limits of liability.
b.
after the deductible is satisfied.
c.
only after the limit of liability is reached.
d.
only up to the limit of liability.
In addition to the limits of liability
Joe has a building covered by a Building and Personal Property policy. What must he do to cover a new lawnmower used to service the premises?
Select one:
a.
list the items on an endorsement
b.
nothing
Nothing
A carpenter working on a house has a hammer slip from his hands, but no damage occurs. This is not an accident because:
Select one:
a.
it was unexpected.
b.
it was not intentional.
c.
no damage occurred.
d.
it happened very suddenly.
No damage occurred
The owner of a new office building is unable to move in for 80 days. Which provision will restrict coverage?
Select one:
a.
vacancy
b.
abandonment
c.
coinsurance
d.
indemnity
Vacancy
Which of the following is eligible for flood insurance?
Select one:
a.
a retail store only
b.
a retail store and its inventory
A retail store and it’s inventory
Ocean marine floaters cover each of these EXCEPT:
Select one:
a.
jettison
b.
insects and vermin
c.
theft
d.
barratry
Insects and vermin
The earthquake deductible is applied:
Select one:
a.
with each aftershock
b.
once each 7 days (168 hours)
Once each 7 days (168 hours)
Each of the following could be included in a CPP EXCEPT:
Select one:
a.
Commercial Auto
b.
Inland Marine
c.
Equipment Breakdown
d.
Ocean Marine
Ocean marine
The optional coverage under a BOP is:
Select one:
a.
Liability coverage
b.
Burglary and Robbery
c.
Building coverage
d.
Personal Property coverage
Burglary and robbery
The Business Income coinsurance requirement to maintain the Coverage Extensions is:
Select one:
a.
20%
b.
50%
c.
80%
d.
90%
50%
Under a Homeowner policy, abandonment is:
Select one:
a.
not permitted
b.
permitted
Not permitted
The HO-2 provides vandalism coverage for a maximum of how many days after the beginning of the vacancy?
Select one:
a.
30 days
b.
60 days
c.
90 days
d.
120 days
60 days
The Business Income form covers each of these EXCEPT:
Select one:
a.
payroll
b.
property replacement
c.
necessary continuing operating expenses
d.
lost profits
Property replacement
Inland Marine policy losses are usually calculated with which method of valuation:
Select one:
a.
replacement cost
b.
actual cash value
Actual cash value
Extra Expense covers:
Select one:
a.
all expenses necessary to continue the business after a loss.
b.
only the additional expenses necessary to continue the business after a loss.
Only the additional expenses necessary to continue the business after a loss
The deductible under an earthquake policy is:
Select one:
a.
$250.
b.
a percentage.
A percentage
The owner of a business carelessly left the rear door unlocked over the weekend, resulting in merchandise being stolen. Under a Building and Personal Property policy – Special, this loss:
Select one:
a.
will be covered as a theft loss
b.
will not be covered
Will be covered as a theft loss