Quiz 3

Question 1

Which of the following do not need to be filed 30 days prior to use?

policy forms

premium rates

riders

printed ads

Answer 1

printed ads

Question 2

Which following is not a power or duty of the superintendent of Insurance?

Prosecutes insurance licensees who break insurance laws

Issues cease and desist orders

Regulates companies for solvency and most insurance rates

Collects fees and issues insurance licenses

Answer 2

Prosecutes insurance licensees who break insurance laws

Question 3

The Superintendent’s examination of an insurance company may be deferred for up to how many years?

12

10

7

5

Answer 3

5

Question 4

An agent whose license has been granted inactive status is exempt from

all insurance laws and regulation

any disciplinary action

an insurer’s appointment requirements

continuing education requirements

Answer 4

continuing education requirements

Question 5

Applicants for auto insurance in Ohio who are in good faith entitled to coverage but are unable to obtain it through normal methods may be able to obtain coverage from Ohio’s

Superintendent of Insurance

Insurance Department

FAIR Plan

assigned risk plan

Answer 5

assigned risk plan

Question 6

Which of these statements regarding workers’ compensation benefits is NOT correct?

disability benefits are intended to replace a portion of lost income, but not all of it.

rehabilitation benefits cover both medical and vocational rehabilitation

Payment of medial benefits is very limited in terms of the types of service covered and the length of time benefits are paid

Survivor benefits pay a stipulated amount for funeral and burial expenses and a weekly benefit to surviving relatives

Answer 6

Payment of medial benefits is very limited in terms of the types of service covered and the length of time benefits are paid

Question 7

A certain state requires employers to purchase workers’ compensation insurance from a state fund. This is an example of

a monopolistic state fund

a compulsory state fund

a competitive state fund

a self-insurance state fund

Answer 7

a monopolistic state fund

Question 8

An automobile insurance plan for drivers with poor driving records is also known as

a subrogation plan

a termination

an assigned risk plan

a high risk plan

Answer 8

an assigned risk plan

Question 9

Which of the following terms means bodily harm, sickness, or disease, including death?

personal injury

bodily injury

property damage

property injury

Answer 9

bodily injury

Question 10

An insured has to testify in court at the insurance company’s request. what is the amount of reimbursement that the insured can receive for loss of earnings due to the time spent in court?

Up to $100 a day

Up to $250 a day

Up to $500 a day

Up to $50 a day

Answer 10

Up to $250 a day

Question 11

Which of the following individuals would not be covered under Coverage B - medical payments coverage?

Passengers in the named insured’s car

The family members of the named insured

The named insured who was driving the car

Passengers in the car that the named insured hit in a collision

Answer 11

Passengers in the car that the named insured hit in a collision

Question 12

Which of the following statements regarding underinsured motorist coverage is NOT correct?

This minimum financial responsibility limit imposed by most states often fall s short of fully reimbursing the insured for a loss

This coverage indemnifies the insured for bodily injury, but not property damage

It is mandatory in all states

It pays the difference between an insured’s actual damage and the amount the insured was able to collect

Answer 12

It is mandatory in all states

Question 13

In addition to collision and Other than Collision coverage, Part D provides coverages for up to $30 a day, with maximum of $900 , for

transportation expenses

physical damage

nonowned autos

deductible

Answer 13

transportation expenses

Question 14

Part B covers reasonable expenses for necessary medical and funeral services incurred within how many years of the date of the injury regardless of fault

1

3

5

6

Answer 14

3

Question 15

An Individual applied for auto insurance and obtained coverage from ABC Insurance Company. Who is the first party in the contract?

ABC Insurance Company

The insured

The agent

The insured and agent

Answer 15

The insured

Question 16

Which statement best describes a peril?

Gas cans in the insured’s garage are leaking and increasing the likelihood of a fire

Smoking cigars caused the insured to pay a higher premium for life insurance

A storm damaged the insured’s home.

Driving to the grocery store exposes the insured to loss.

Answer 16

A storm damaged the insured’s home

Question 17

The best example of reduction as a risk management techinque is

buying an insurance policy

wearing a seat belt

choosing not to go mountain climbing

increasing a deductible

Answer 17

wearing a seat belt

Question 18

Grace leaves her car unlocked when she goes shopping. She figures her car and its contents are insured, so there is no reason to worry. Which type of hazard is this example of?

Hopeless

Physical

Morale

Moral

Answer 18

Morale

Question 19

A flood is an example of?

moral hazard

peril

speculative risk

morale hazard

Answer 19

peril

Question 20

A person’s property can be divided into two classes: real property (buildings) and

specific property

basic property

personal property

direct property

Answer 20

personal property

Question 21

Which of the following is NOT automatically covered under the basic form?

Lightning

Fire

Internal explosion

Water

Answer 21

water

Question 22

The policy limit is known as all of the following terms EXCEPT

limit of coverage

limit of responsibility

limit of insurance

limit of liability

Answer 22

limit of responsibility

Question 23

Which policy insures against all risks of direct physical loss except those specifically excluded in the policy?

named peril

open peril

closed peril

specified peril

Answer 23

open peril

Question 24

Which of the following is an example of a liability loss?

a home is damaged in a tornado

a farm house is damaged in a fire

an insured’s dog runs away and attacks injuries a neighbor boy

insured leaves her car unlocked and her purser is stolen

Answer 24

an insured’s dog runs away and attacks injuries a neighbor boy

Question 25

A civil wrong that causes damage to another person or business known as     a liability    a tort      a negligence      legal duty owned  

Answer 25

a tort

Question 26

Which of the following is NOT a common defense against negligence?     contributory negligence      intervening clause    compulsory negligence      comparative negligence  

Answer 26

compulsory negligence

Question 27

Tracy was driving too fast on an icy highway, caused a head on collision, and totaled William's car. William suffered from a broken neck and lost wages after missing four weeks of work. These direct and specific damages are considered to be     exemplary damages      general compensatory damage      punitive damages      special compensatory damage  

Answer 27

special compensatory damage

Question 28

Which of the following items of personal property would be covered under a  dwelling policy?     a pool table      a cat      a jet ski      a motorcycle  

Answer 28

a pool table

Question 29

Dwelling policies insure only property and do not automatically contain liability insurance. For this reason, dwelling policies are called    casualty policies    monoline policies      property only policies      single line policies  

Answer 29

monoline policies

Question 30

The DP-3 provides    basic coverage for the dwelling and broad coverage for personal property      open peril coverage for both the dwelling and personal property      broad coverage for the dwelling and basic coverage for the personal property      open peril coverage for the dwelling and broad coverage for personal property  

Answer 30

open peril coverage for the dwelling and broad coverage for personal property

Question 31

The homeowners policy provides property and liability coverage in a single policy. For this reason, it is called     a multiline policy      double line policy      monoline policy      modified policy  

Answer 31

a multiline policy

Question 32

Under the cancellation condition, during the first 60 days of the policy term  the insurance company can cancel for any reason as long as they give the insured     10 days written notice      30 days written notice      45 days written notice      5 days written notice  

Answer 32

10 days written notice  

Question 33

Which homeowners form insures tenants in a rental property?     HO-4      HO-1      HO-2      HO-3  

Answer 33

  HO-4  

Question 34

Broad peril coverages include all basic perils and all of the following EXCEPT    flooding and overflow from a sump pump      freezing of plumbing      falling object      weight of ice  

Answer 34

flooding and overflow from a sump pump

Question 35

Which one of the following is not an additional coverage included in all homeowners forms? reasonable repairs debris removal tress, shrubs, and other plants building additions and alterations

Answer 35

building additions and alterations

Question 36

John's roof was damaged on his garage when a tree fell during a thunderstorm. He removed his property from the garage to a storage facility to protect it from getting destroyed. This property, although off the premises, will be covered for 15 days 30 days 45 days 90 days

Answer 36

30 days

Question 37

For all forms except HO-4 and HO-6, the primary amount of insurance is Coverage B Coverage C Coverage E Coverage A

Answer 37

Coverage A

Question 38

Which of the following terms describes a legal agreement between two competent parties that promises a certain performance in exchange for certain considerations? a contract an acceptance a policy an offer

Answer 38

a contract

Question 39

Which of the following is not an element of a legal contract ? unilateral legal purpose offer acceptance

Answer 39

unilateral

Question 40

A guarantee that something is true is trusted statement material representation a representation a warranty

Answer 40

a warranty

Question 41

Which of the following refers to a professional liability policy written for professionals, such as insurance agents, accountants, architects, stockbrokers, engineers, consultants, and attorneys? medical malpractice errors and omissions (E&O) fiduciary liability directors and officers liability

Answer 41

errors and omissions (E&O)

Question 42

Which of the following is NOT covered under employment practices liability insurance? retaliation failure to promote discrimination, harassment, and wrongful termination physical injury

Answer 42

physical injury

Question 43

Which of the following statements regarding surplus lines insurance is NOT correct? Many states have an approved list of surplus lines carriers and require surplus lines to be placed with those carriers Surplus lines insurers must become authorized to write insurance in their state The business must be obtained through a licensed surplus lines producers, agent, or broker. Surplus lines coverages are those that are not available or that cannot be obtained from authorized insurers

Answer 43

Surplus lines insurers must become authorized to write insurance in their state

Question 44

Which of the following provides broad coverage to fill the gaps in commercial property coverage? exclusion insurance difference in conditions insurance (DIC) Surplus lines insurance aviation insurance

Answer 44

difference in conditions insurance (DIC)

Question 45

Which of the following is an ineligible risk in the businessowners policy? less than 100 employees more than 100 employees revenues of $6 million businesses occupying up to 35,000 square feet

Answer 45

more than 100 employees

Question 46

Which of the following is NOT one of the five different classes of business personal property covered? the property of others in the insured's care the land that the property is on a tenant's improvements and betterment the exterior building glass

Answer 46

the land that the property is on

Question 47

Personal property is covered when it is within how many feet of the premises? 500 200 50 100

Answer 47

100

Question 48

Which of the following types of risk exposure covers liability arising out of the business location or the activities of the exposure? Premise and operations exposure Contractual liability Fire legal liability Product-completed operations exposure

Answer 48

Premise and operations exposure

Question 49

Which of the following is NOT an exclusion under Coverage A - bodily injury and property damage liability? Liability relating to the recall of the insured's products or work becuase of a known or suspended defect Liability for those in the alcoholic beverage business Liability arising out of intentional injury liability arising from continuous or repeated exposure to the same general harmful conditions

Answer 49

liability arising from continuous or repeated exposure to the same general harmful conditions

Question 50

Which of the following can be included in a commercial package policy? life insurance workers' compensation health and disability insurance commercial building

Answer 50

commercial building

Question 51

A condition stating that an insured's rights and duties under the policy cannot be transferred without the written consent of the insurance company, except in the case of the death of a named insured, is sometimes called the right to assign clause the named insured clause the transfer clause the assignment clause

Answer 51

the assignment clause

Question 52

In the commercial articles coverage form, additional acquired property is automatically covered if it is a type of property already covered by the form for up to 30 days 90 days 45 days 60 days

Answer 52

30 days

Question 53

Which of the following is NOT covered in the jewelers block coverage form? precious metals and alloys stock in trade property sold but not delivered property worn by the insured

Answer 53

property worn by the insured

Question 54

Signing another person's name with the intent to deceive is known is theft forgery robbery safe burglary

Answer 54

forgery

Question 55

The period during which the insured may still be indemnified for losses that occurred during the term of the fidelity bond but were not discovered until after its termination is called cut-off period policy end date termination date expiration date

Answer 55

cut-off period

Question 56

Which of the following is excluded in the equipment breakdown coverage form? failure of pressure or vacuum equipment electrical failure mechanical failure leakage ay any valve

Answer 56

leakage ay any valve

Question 57

Which of the following coverages will pay extra costs necessary to make temporary repairs? business income and extra expense expediting expenses property damage spoilage damage

Answer 57

expediting expenses