Practice Test Study Flashcards
(28 cards)
When force or threat of harm is used to steal something it is called?
Robbery
When something is broken into and you can tell that they broke into the place that is?
Burglary
A common exclusion in a liability policy is damage caused by
Acts of civil disobedience and riots
Symbol two on the automobile declarations is
Owned autos only
According to Worker’s Compensation insurance everybody is subject to workers comp laws except
A crew member of a ship
And extended reporting. Provides coverage for claims made outside the policy term
Extended reporting. Attached to a general liability policy provides coverage for claims made outside the policy term
A bond that will guarantee work will be done on time I a specific party is a
Surety bond
When does coverage begin for a builders risk form?
On the date construction starts above the lowest basement floor if there is a basement.
Limits of insurance on dwelling policies that apply to coverage D-the fair rental value are
20%
20%
Federal crop insurance is sometimes called
Residual market insurance
Different HO Policy forms.
HO-1
HO-2 - HO broad form
HO-3 - HO special form
HO-4 - covers tenants
HO-5 -
HO 6 - covers personal property of a condominium owner
Homeowners special form (HO-3) covers personal property and the homeowners broad form (HO-2) does not.
HO
Merchandise while it is being manufactured is generally not covered by?
Inland marine insurance
Under dwelling policy conditions how does the insurance company settle a loss?
The company has the option to repair to pre-loss condition
DP 2 policy covers everything except damage to?
Awnings from weight of snow.
Damage by ice to outdoor equipment is excluded as a covered loss under the?
DP-3 coverage
The special limit of coverage on a homeowners policy form for property damage to personal watercraft is... A. 1,000 B. 1,500 C. 2,000 D. 2,500
B
1,500
Insuring an engagement ring given to your fiancé is
A. Allowed
B. Not allowed
Why?
Not allowed because you do not have an insurable interest in the ring once you give it to someone else
If a woman slips on icy steps and breaks her leg. Which of the following is the peril in the situation?
A. the icy steps
B. the fall
C.the time of year
The fall is the peril in this situation
All of the following describes blanket property insurance coverage except A. All nonowned property B. A particular item insured C. Everything at the store D. Items at multiple locations
B. A particular item insured does not describe blanket property insurance coverage
Who determines what stated value is? Is it an appraisal, the insured, or the insurer?
The insured stipulates the value of property.
What term applies to a policy that pays first went to policies cover the same property?
Primary.
Primary insurance pays first when two policies cover the same property.
What does an application for insurance contractually represent for the insured?
An offer
Because you can decide if you want it or if you don’t want it.
The terrorism risk insurance act and the national flood insurance program are similar by providing the following
Subsidies, Loss sharing or excess coverage
