quiz 4

Question 1

Medical expenses will pay reasonable expenses for first aid, medical services, and funeral services within

180 days of the date of the accident
1 year of the date of the accident
3 years of the date of the accident
90 days of the date of the accident

Answer 1

1 year of the date of the accident

Question 2

Which of the following is NOT a common exclusion under business liability coverage?

liability related to liquor that was distributed by the insured
liability for damage to property the insured owns, rents, or occupies
liability arising from rendering professional services
liability realted to oral or written publication that slanders a person or organization

Answer 2

liability realted to oral or written publication that slanders a person or organization

Question 3

On the businessowners policy declarations page, the named insured is listed as a limited liability company. In this example, all of the following individuals would be insured

the named insured
the managers of the organization
the members of the organization
the named insured’s partner or spouse

Answer 3

the named insured’s partner or spouse

Question 4

There are two sets of conditions that apply to every policy for property coverage. These conditions are known as the property general conditions

the medical expense conditions
liability conditions
the limits of insurance conditions
the property loss conditions

Answer 4

the property loss conditions

Question 5

An insured is required to have a sprinkler system and a burglar alarm installed on the premises in order to meet certain conditions of a policy endorsement. Which endorsement does the insured likely have?

the utility service-direct damage coverage endorsemenr
the common policy conditions endorsement
the utility service-time element coverage endorsement
the protective safeguards endorsement

Answer 5

the protective safeguards endorsement

Question 6

Who of the following would NOT be considered an insured under business auto liability coverage?

the named insured
The owner of borrowed auto
an employee of the insured
other while using a covered auto with permission

Answer 6

The owner of borrowed auto

Question 7

Which of the following coverages is included in an unendorsed garage coverage form?

uninsured motorists
underinsured motorists
physical damage
medical damage

Answer 7

physical damage

Question 8

Which of the following is NOT excluded under business auto liability coverage?

injury to employees covered by workers’ compensation laws
damage to the insured’s own auto
liaibility for property in the insured’s custody
liaibility assumed under a contract that is considered an insured contract

Answer 8

liaibility assumed under a contract that is considered an insured contract

Question 9

Which of the following losses would be paid under the business auto coverage form’s comprehensive coverage?

overturn of a covered auto
theft of a covered auto
gradual corrosion of the grillwork on a covered auto due to continuous exposure to salt air
collision damage to a covered auto

Answer 9

theft of a covered auto

Question 10

Which of the following businesses would NOT be covered under a garage coverage form?

used car dealer
semi-truck dealership
automobile dealer with an auto body repair shop
catering company

Answer 10

catering company

Question 11

The bailee policy pays

the insurer
the customer
the insured
the business

Answer 11

the customer

Question 12

If the insurance company requests proof of loss on a commercial inland marine claim, the insured must submit it within

10 days
90 days
60 days
30 days

Answer 12

60 days

Question 13

A loss is covered under a commercial inland marine form and another policy. Both policies are written on the same basis. The commercial inland marine form will

pay on an excess basis
pay 50% of a pro rata basis and 50% of an excess basis
not pay anything on the loss
pay on a pro rata basis

Answer 13

pay on a pro rata basis

Question 14

A contractor is wanting coverage for tools and machinery at various job sites around the city. Which policy would be best cover the insured for this situation?

contractor’s liability policy
contractor’s equipment floater
contractor’s personal property coverage form
contractor’s real property coverage form

Answer 14

contractor’s equipment floater

Question 15

Which of these losses would NOT be covered under the signs coverage form?

the insured’s neon sign is damaged when vandals throw rocks at it
the electric sign above the insured’s business is destroyed in a thunderstorm
during installation, several tubes in the insured’s fluorescent sign are damaged
a sign attached to building is damaged when a tree falls during a thunderstorm

Answer 15

during installation, several tubes in the insured’s fluorescent sign are damaged

Question 16

Who is the following is NOT considered an insured of an organization other than a partnership, joint venture, or limited liability company?

named insured’s spouse
stockholders
named insured
executive officers and directors

Answer 16

named insured’s spouse

Question 17

Which of the following limits of insurance is the most that will be paid out for any one occurrence under Coverage A and C because of bodily injury?

personal and advertising injury limit
general aggregate limit
per occurrence limit
medical expense limit

Answer 17

per occurrence limit

Question 18

Which of the following limits of insurance is the most that will be paid for the sum of Coverage A, B, and C during the policy period?

medical expense limit
General aggregate limit
per occurrence limit
products-completed operations aggregate limit

Answer 18

General aggregate limit

Question 19

Which of the following is NOT a duty of the insured in the event of an occurrence, offense, claim, or suit?

cooperate with the insurer during the investigation
immediately send the insurer any copies of any demands, notices, or legal papers received in connection with the claim
record the specifies of the claim and notify the insurer as soon as it is practical
voluntarily make a payment for incurred expense

Answer 19

voluntarily make a payment for incurred expense

Question 20

Your right to claims and occurrence information condition provides that the insurer will give the first-named insured information relating to the CGL during the previous

5 years
1 year
2 years
3 years

Answer 20

3 years

Question 21

Which of the following conditions states that the first-named insured is authorized to make changes in the terms of the policy with the consent of the insurance company?

changes conditions
cancellation conditions
inspections and surveys conditions
transfer of your rights and duties under

Answer 21

changes conditions

Question 22

Which general form contains information about who is insured, when he is insured, and for what lines?

common policy exclusion
common policy declarations
common policy cover page
common policy conditions

Answer 22

common policy declarations

Question 23

Which of the following statements concerning the commercial package policy is NOT correct?

The insured can choose a variety of eligible commercial coverage based on her needs

a complete CPP includes common policy declaration, policy conditions, and the CPP coverage parts.

The CPP can only include property coverage

almost all commercial risk are eligible for
coverage under the commercial package

Answer 23

almost all commercial risk are eligible for
coverage under the commercial package

Question 24

The name that is listed first in the declarations and who is assigned certain responsibilities is

the insurer
legal representative
first named insured
the business

Answer 24

first named insured

Question 25

Which of the following is NOT eligible for coverage in a CPP? commercial inland marine commercial general liability workers' compensation commercial property

Answer 25

workers' compensation

Question 26

Which cause of loss form provides open peril coverage? broad basic special limited

Answer 26

special

Question 27

All of the following are one of the 11 covered perils on the basic form EXCEPT volcanic explosion mechanical breakdown earthquake lava action

Answer 27

mechanical breakdown

Question 28

All of the following statements about collapse additional coverage ate true EXCEPT the collapse is covered if it was casued by the weight of snow, ice, or sleet collapse is defined as an abrupt falling down or caving in of the building or part of the building that results in the building being unstable the loss or damage caused by hidden decay is covered even if the insured knew about it before the collapse occurred the collapse is covered if it was caused by falling objects Question 29

Answer 28

the loss or damage caused by hidden decay is covered even if the insured knew about it before the collapse occurred

Question 29

All of the following statements about the earthquake and volcanic eruption cause of loss form are true EXCEPT volcanic eruption means the eruption, explosion, or pouring forth of a volcano this endorsement must be used in conjunction with one of the causes of loss forms the expiration of the policy does reduce the 168-hour period to 24 hour all earthquake shocks or volcanic eruptions that occur within any 168-hour period

Answer 29

the expiration of the policy does reduce the 168-hour period to 24 hour

Question 30

Airborne volcanic blasts or shockwaves, ash, dust, particulate matter, and lava flow is best described as volcanic explosion volcanic action lava action earthquake

Answer 30

volcanic action

Question 31

What general surety bond category guarantees that the principal will fulfill certain obligations set forth by law? judicial bond public official performance bond fidelity bond

Answer 31

judicial bond

Question 32

Which types of bond is used to guarantee that supplies will be furnished at an agreed-upon price time? bid bond Supply bond performance bond completion bond

Answer 32

Supply bond

Question 33

What types of property is protected under computer fraud coverage? securities other property money all of these

Answer 33

all of these

Question 34

All of the following statements regarding the actual cash value endorsement are correct EXCEPT the insurer will not pay for damaged property that is obsolete and useless to the named insured it insures older property on an actual cash value (ACV) basis rather than on a replacement cost basis the payment will be the lesser of the cost to repair or replace the damaged property with property of same kind the payment will be the higher of the cost to repair or replace the damaged property with property of same kind

Answer 34

the payment will be the higher of the cost to repair or replace the damaged property with property of same kind

Question 35

The direct physical loss that causes damage to covered equipment and necessitates its repair or replacement is known as defects malfunction breakdown damage

Answer 35

breakdown

Question 36

Which of the following coverages will pay extra costs necessarily incurred by the insured to make temporary repairs? property damage coverage expediting expenses coverage spoilage damage coverage business income and extra expense coverage

Answer 36

expediting expenses coverage

Question 37

Under the homeowners policy, which of the following classes of personal property have special limits for theft losses, but not for any other types of losses? a depreciation basis a repair cost basis an actual cash value basis a replacement cost basis

Answer 37

a replacement cost basis

Question 38

Which of the following would not be covered under Coverage A or coverage B of the homeowners policy? An insured's gardening storage shed A stack of lumber at the edge of the insured's property that will be used to build a storage shed The insured's home A barn retuned to a neighbor for a retail craft store

Answer 38

A barn retuned to a neighbor for a retail craft store

Question 39

Under an unendorsed HO-3, losses to personal property are paid on an actual cash value the depreciation the repair cost a replacement cost

Answer 39

an actual cash value

Question 40

Which of the following causes of loss are automatically covered in most homeowners forms? flood damage to a home earthquake damage to a home Accidental and sudden discharge of water from a plumbing system An area power failure that shuts down power for 12 hours and causes the insured's food spoil in a refrigerator

Answer 40

Accidental and sudden discharge of water from a plumbing system

Question 41

What is the standard liability limit for Coverage E? $100,000 lifetime limit $250,000 per occurrence $100,000 per occurrence $100,000 aggregate

Answer 41

$100,000 per occurrence

Question 42

Which of the following statements is NOT correct regarding the eligibility is correct regarding the eligibility of insureds under a homeowners policy? Dwelling under construction are eligible The home cannot contain more than 2 families The dwelling must be primary used as a residence The named insured must be the owner-occupant of the dwelling or renter who maintains a residential occupancy

Answer 42

The dwelling must be primary used as a residence

Question 43

Which inland marine form provides open peril coverage for the same categories of property covered under the homeowners scheduled personal property endorsement? personal effects form personal perils form personal property form personal articles form

Answer 43

personal articles form

Question 44

All of the following statements regarding the mobile home package policy are correct except it includes liability coverage similar to Section II of the homeowners policy up to 10% of the mobile home coverage can extended to cover other structures it covers the mobile home contents but not the mobile home itself it may include collision coverage

Answer 44

it covers the mobile home contents but not the mobile home itself

Question 44

What is the maximum amount of dwelling coverage that may be purchased under the emergency flood insurance programs? $100,000 for buildings and $100,000 for contents $100,000 for building and contents is not available $100,000 for contents and building is not available $35,000 for buildings and $10,000 for contents

Answer 44

$35,000 for buildings and $10,000 for content

Question 45

Who administers the National Flood Insurance Program (NFIP)? Federal Emergency Management Agency (FEMA) State insurance department Federal insurance administration private insurance companies

Answer 45

Federal Emergency Management Agency (FEMA)

Question 46

Commercial insureds who need higher liability limits than those provided by a certain policy or who want coverage for losses that are excluded by a certain policy should purchase a surety bond a professional liability policy a commercial umbrella policy a difference in conditions policy

Answer 46

a commercial umbrella policy

Question 47

Unauthorized insurers are also known an alien insurers foreign insurers admitted insurers nonadmitted insurers

Answer 47

nonadmitted insurers

Question 48

Which liability policy protects those who manage private pension and employee benefit plans? medical malpractice fiduciary liability directors and officers liability errors and omissions (E&O)

Answer 48

fiduciary liability

Question 49

Aviation liability insurance includes coverage for all the following EXCEPT bodily injury to passengers medical payments bodily injury liability to persons other than passengers the aircraft

Answer 49

the aircraft

Question 50

Tim and Michelle were both injured when they were struck by a car while walking across the street. The driver, who could not be identified, left the scene of the accident. Would this loss be covered under Tim and Michelle's personal auto policy? Yes, it would be covered under Part A - liability coverage Yes, it would be covered under Part C - uninsured motorists coverage Yes, it would be covered under Part C - underinsured motorist coverage. No, it would not be covered since the driver could not be identified

Answer 50

Yes, it would be covered under Part C - uninsured motorists coverage

Question 51

Which of the following autos owned by the named insured could NOT be covered under the personal auto policy for losses occurring from physical damage or liability? A sedan that the insured's license children drive on occasion A pick-up truck used on the insured's farm a station wagon used to make deliveries for the insured's small business A small trailer designed to be pulled behind by a car

Answer 51

a station wagon used to make deliveries for the insured's small business

Question 52

During a storm, a tree branch fell on Tina's car and broke the windshield. Which coverage of her personal auto policy will cover the dame to the car? Part B Other than Collision coverage of Part D Collision coverage of Part D Part C

Answer 52

Other than Collision coverage of Part D

Question 53

Lee was injured when she lost control of her car and hit a guardrail. Which part of her personal auto policy will cover her medical expenses? Part C Part D Part B Part A

Answer 53

Part B

Question 54

Michael loses control of his car and hits a parked car. Which coverage of Michael's personal auto policy will pay for the damage to the parked car? Part D Part A Part B Part C

Answer 54

Part D

Question 55

Insurance companies often purchase insurance to cover their own exposure to loss. This is called admitted insurance surplus lines loss control reinsurance

Answer 55

reinsurance

Question 56

Which is NOT an element of an insurable risk? Affordable Catastrophic Accidental Reasonable

Answer 56

Catastrophic

Question 57

An individual in a position of financial trust is called a fiduciary an accountant an independent agent a broker

Answer 57

a fiduciary

Question 58

The authority made explicit in a producer's written agency agreement with the insurer is known as apparent authority suggested authority implied authority express authority y implied authority express authority

Answer 58

express authority

Question 59

he Jan Deen Insurance Company is incorporated in Brazil, but does business in New Jersey is what type of insurer? domestic insurer expert insurer foreign insurer alien

Answer 59

foreign insurer

Question 60

Which of the following individuals would be considered a competent party in an insurance contract? Eric, who has been drinking at the bar, prior to meeting her insurance agent. Jill, turns 21, at the end of the year Allison, is 21, does not have a job, and lives at homes with parents. Alexis, who is diagnosed with an mental illness.

Answer 60

Allison, is 21, does not have a job, and lives at homes with parents.

Question 61

An insurance contract is prepared by one party(insurance company)with little or no opportunity for the other party (insured) to bargain. This characteristic is called unilateral conditional aleatory adhesion

Answer 61

adhesion

Question 62

A statement that is guaranteed to be true is a representation an impersonation a warranty

Answer 62

a warranty

Question 63

Misrepresentations do not necessarily void insurance contracts. To do so, they must be material warranties unilateral personal

Answer 63

material

Question 64

n act of terrorism must be certified by the Secretary of Treasury in consultation with the Secretary of Homeland Security , and the President of the United States state senator governor U.S. Attorney General

Answer 64

U.S. Attorney General

Question 65

All of the following are ways to assign rates EXCEPT pro rata rating experience rating judgement rating manual rating

Answer 65

pro rata rating

Question 66

All of the following are ways to assign rates EXCEPT pro rata rating experience rating judgement rating manual ratin

Answer 66

pro rata rating

Question 67

Which of the following premium rating methods is determined by considering the individual risk and using careful judgment and the experience of the underwriter? manual rating experience rting judgement rating class rating

Answer 67

judgement rating

Question 68

Which of the following acts requires financial institutions; companies that offer consumers financial products or services like loans, financial, or investment advice; and insurance companies, to explain their information-sharing practices to their customers and to safeguard sensitive data? GLBA FCRA TRIPRA Fraud and False statement

Answer 68

GLBA

Question 69

Term that describes the absences of both people and property from the property from the premises? unnoccupied vacant valuation abandoned

Answer 69

vacant