Insurance MCQ

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Showing posts from October, 2020

The insuring of risks that are more prone to losses than average risks is know as _________.

The insuring of risks that are more prone to losses than average risks is know as _________. Answer: Adverse Selection

______ reinsurance is accepted or rejected on a case-by-case basis.

______ reinsurance is accepted or rejected on a case-by-case basis. Answer: Facultative

When the number of similar units increases, the predictability of the loss improves according to the _ of ____.

When the number of similar units increases, the predictability of the loss improves according to the _______ of __________. Answer: Law Of Large Numbers

___ is defined as the uncertainty concerning a loss.

___ is defined as the uncertainty concerning a loss. Answer: Risk

In insurance, wet leaves allowed to remain on a homeowner's sidewalk could be considered a ________ hazard.

In insurance, wet leaves allowed to remain on a homeowner's sidewalk could be considered a ________ hazard. Answer: Physical

The determination of acceptable risks is the primary function of the ___________.

The determination of acceptable risks is the primary function of the ___________. Answer: Underwriter

The california FAIR plan may be sold by all licensed fire and casualty brokers-agents. True or False?

The california FAIR plan may be sold by all licensed fire and casualty brokers-agents. True or False? Answer: True

Those risks that are located in a designated hazardous brush area are eligible for the FAIR plan. True or False?

Those risks that are located in a designated hazardous brush area are eligible for the FAIR plan. True or False? Answer: True

Market conduct regulations are state laws that regulate insurer practices regarding, underwriting, sales, rate making, and claims handling. True or False?

Market conduct regulations are state laws that regulate insurer practices regarding, underwriting, sales, rate making, and claims handling. True or False? Answer: True

The california insurance code states that any person may be insured, except a _______.

The california insurance code states that any person may be insured, except a _______. Answer: Public Enemy

A person advertising on the internet and providing an insurance premium quote to a california resident is deemed to be transacting the business of insurance in california. True or False?

A person advertising on the internet and providing an insurance premium quote to a california resident is deemed to be transacting the business of insurance in california. True or False? Answer: True

Every licensee must __________ notify the commissioner, in writing, of any change of address.

Every licensee must __________ notify the commissioner, in writing, of any change of address. Answer: Immediately

The commissioner may not disapprove of the use of any name that a licensee may use if that name is their true name. True or False?

The commissioner may not disapprove of the use of any name that a licensee may use if that name is their true name. True or False? Answer: False

An individual licensed as both a fire and casualty agent / broker and life and / or accident and health agent can satisfy the continuing education requirement by completing courses approved for either license. True or False?

An individual licensed as both a fire and casualty agent / broker and life and / or accident and health agent can satisfy the continuing education requirement by completing courses approved for either license. True or False? Answer: True

An agents license is considered ________ when he / she has paid renewal fees but no insurer appointment is in force.

An agents license is considered ________ when he / she has paid renewal fees but no insurer appointment is in force. Answer: Inactive

A licensee's appointment becomes effective on the date it is signed by the _______.

A licensee's appointment becomes effective on the date it is signed by the _______. Answer: Insurer

The insurance department may deny any agents license application without a hearing if the applicant has had a previous license application denied for cause within ___ years.

The insurance department may deny any agents license application without a hearing if the applicant has had a previous license application denied for cause within ___ years. Answer: 5

A personal lines licensee may write umbrella or excess liability coverage over one or more underlying auto or residential property insurance policies. True or False?

A personal lines licensee may write umbrella or excess liability coverage over one or more underlying auto or residential property insurance policies. True or False? Answer: True

Applicants for a fire and casualty broker / agent license must obtain _ hours of classroom instruction on fire and casualty topics, and _ hours of instruction on ethics and code.

Applicants for a fire and casualty broker / agent license must obtain ___ hours of classroom instruction on fire and casualty topics, and ___ hours of instruction on ethics and code. Answer: 40, 12

It is permissible for a person engaged in the business of financing the purchase of real or personal property to require the purchaser to obtain insurance for such property through a particular agent or broker. True or False?

It is permissible for a person engaged in the business of financing the purchase of real or personal property to require the purchaser to obtain insurance for such property through a particular agent or broker. True or False? Answer: False

Agents are required to keep records of any compensation they accept for their services involving premium financing. True or False?

Agents are required to keep records of any compensation they accept for their services involving premium financing. True or False? Answer: True

An auto insurer may require that an automobile be repaired at a specific repair shop. True or False?

An auto insurer may require that an automobile be repaired at a specific repair shop. True or False? Answer: False

The making of claim payments by an insurer that are not accompanied by statements containing the coverage, under by which payments are being made is an unfair claim settlement practice. True or False?

The making of claim payments by an insurer that are not accompanied by statements containing the coverage, under by which payments are being made is an unfair claim settlement practice. True or False? Answer: True

Materiality of representation is determined by the same rule as materiality of a concealment. True or False?

Materiality of representation is determined by the same rule as materiality of a concealment. True or False? Answer: True

A standard market insurer is an insurer that offers rates for insurance coverage to insureds who have an average, or better than average loss experience. True or False?

A standard market insurer is an insurer that offers rates for insurance coverage to insureds who have an average, or better than average loss experience. True or False? Answer: True

________ is the termination of a contract from the beginning. as if it never existed.

________ is the termination of a contract from the beginning. as if it never existed. Answer: Rescission

Surplus line brokers transact business with ___________ insurers.

Surplus line brokers transact business with ___________ insurers. Answer: Nonadmitted

An insurance solicitor may be employed by only one agent / broker at any one time. True or False?

An insurance solicitor may be employed by only one agent / broker at any one time. True or False? Answer: True

In this state a and ____ broker-agent may transact health insurance, property insurance, and automobile insurance.

In this state a ____ and ________ broker-agent may transact health insurance, property insurance, and automobile insurance. Answer: Fire Casualty

A person appointed and authorized by an insurer to act as its representative and to receive commissions from the sale of insurance, other than life insurance, is known as an _____ _.

A person appointed and authorized by an insurer to act as its representative and to receive commissions from the sale of insurance, other than life insurance, is known as an _________ _____. Answer: Insurance Agent

Insurers and agents may use the existence of the california insurance guaranty association to induce prospects to purchase insurance policies. True or False?

Insurers and agents may use the existence of the california insurance guaranty association to induce prospects to purchase insurance policies. True or False? Answer: False

The purpose of the california insurance guaranty association is to establish a mechanism to pay claims that are unpaid as a result of __________ of a member insurer.

The purpose of the california insurance guaranty association is to establish a mechanism to pay claims that are unpaid as a result of __________ of a member insurer. Answer: Insolvency

An insurer can not escape the condition of insolvency by being able to provide for all its liabilities and reinsurance of all outstanding risks. True or False?

An insurer can not escape the condition of insolvency by being able to provide for all its liabilities and reinsurance of all outstanding risks. True or False? Answer: True

The california insurance code identifies many unethical practices and serves as a complete guide to ethical behavior. True or False?

The california insurance code identifies many unethical practices and serves as a complete guide to ethical behavior. True or False? Answer: False

Does the comissioner have the authority to change the california insurance code?

Does the comissioner have the authority to change the california insurance code? Answer: Yes

The california _____ presents the laws of the state of california that relate to insurance principles and practices.

The california _________ ____ presents the laws of the state of california that relate to insurance principles and practices. Answer: Insurance Code

If an insured signs a claim form for a claim which is fraudulent, the insured may be found guilty of _______.

If an insured signs a claim form for a claim which is fraudulent, the insured may be found guilty of _______. Answer: Perjury

Every insurer admitted to do business in this state must maintain a unit to investigate possible fraudulent claims by insured. True or False?

Every insurer admitted to do business in this state must maintain a unit to investigate possible fraudulent claims by insured. True or False? Answer: True

It is prohibited to charge a different rate for males and females based on separate distinct mortality tables. True or False

It is prohibited to charge a different rate for males and females based on separate distinct mortality tables. True or False Answer: False

Willful violation of the requirement for a certificate of authority is a public offense, punishable by ____________or by fine, or both.

Willful violation of the requirement for a certificate of authority is a public offense, punishable by ____________or by fine, or both. Answer: Imprisonment

The McCarran-ferguson act, a.k.a public law 15, returned responsibilty for insurance regulation to the federal level in 1945. True or False?

The McCarran-ferguson act, a.k.a public law 15, returned responsibilty for insurance regulation to the federal level in 1945. True or False? Answer: False

Risk retention groups are covered by insurance insolvency guaranty funds. True or False?

Risk retention groups are covered by insurance insolvency guaranty funds. True or False? Answer: False

A legal doctrine that prevents the denial of a fact if the fact was admitted to be true by a previous action is known as an ________.

A legal doctrine that prevents the denial of a fact if the fact was admitted to be true by a previous action is known as an ________. Answer: Estoppel

An insurers failure to enforce a provision in an insurance contract is called a(n) ______.

An insurers failure to enforce a provision in an insurance contract is called a(n) ______. Answer: Waiver

When an applicant intentionally fails to make known a material fact, this is known as ___________.

When an applicant intentionally fails to make known a material fact, this is known as ___________. Answer: Concealment

A breach of a warranty under an insurance contract may ____ the contract.

A breach of a warranty under an insurance contract may ____ the contract. Answer: Void

When someone provides misleading or false information to the insurer on the application, it is considered _________________.

When someone provides misleading or false information to the insurer on the application, it is considered _________________. Answer: Misrepresentation

A representation can be altered or withdrawn only before policy issuance. True or False?

A representation can be altered or withdrawn only before policy issuance. True or False? Answer: True

The insurance contract is a contract of __ _ because each party is entitled to rely upon the representations of the other, and to rely upon the assumption that there has been full, fair, and honest disclosure.

The insurance contract is a contract of ______ ____ _____ because each party is entitled to rely upon the representations of the other, and to rely upon the assumption that there has been full, fair, and honest disclosure. Answer: Utmost Good Faith

When an insurance policy is not clear, the court will usually interpret in favor of the insured, because the policy is a contract of ________.

When an insurance policy is not clear, the court will usually interpret in favor of the insured, because the policy is a contract of ________. Answer: Adhesion

A contract whereby only one party is bound to future performance is said to be a(n) __________ contract.

A contract whereby only one party is bound to future performance is said to be a(n) __________ contract. Answer: Unilateral

Under aleatory contracts, the consideration may be _______.

Under aleatory contracts, the consideration may be _______. Answer: Unequal

Can one purchase an insurance policy to cover losses which result from an operation of drug smuggling?

Can one purchase an insurance policy to cover losses which result from an operation of drug smuggling? Answer: No

The insurers promise to pay a covered loss, and the insureds payment of the premium, are examples of _____________.

The insurers promise to pay a covered loss, and the insureds payment of the premium, are examples of _____________. Answer: Consideration

The value that each party gives the other in an insurance contract is said to be the _____________.

The value that each party gives the other in an insurance contract is said to be the _____________. Answer: Consideration

Tort law pertains to the formation and enforcement of contracts. True or False?

Tort law pertains to the formation and enforcement of contracts. True or False? Answer: False

When a producer / agent compares benefits of several policies he / she is guilty of misrepresentation. True or False?

When a producer / agent compares benefits of several policies he / she is guilty of misrepresentation. True or False? Answer: False

A producer's / agent's binding authority is stated in his / her contract with the insurer. True or False?

A producer's / agent's binding authority is stated in his / her contract with the insurer. True or False? Answer: True

A producer's / agent's powers that are stated in his / her agency contract are called _______ powers.

A producer's / agent's powers that are stated in his / her agency contract are called _______ powers. Answer: Express

Does a producer / agent have the responsibility to promote profitable policies?

Does a producer / agent have the responsibility to promote profitable policies? Answer: No

When a producer / agent violates the power expressed in his / her agency contract, can he / she be held personally liable?

When a producer / agent violates the power expressed in his / her agency contract, can he / she be held personally liable? Answer: Yes

The ________ division of an insurance company gathers and interprets information to aid in rate-making / setting.

The ________ division of an insurance company gathers and interprets information to aid in rate-making / setting. Answer: Actuarial

Independent agents are actually employees of the insurer. True or False?

Independent agents are actually employees of the insurer. True or False? Answer: False

An agent or broker, other than a surplus lines broker, who solicits or negotiates insurance with a nonadmitted insurer is guilty of a ___________ by california law.

An agent or broker, other than a surplus lines broker, who solicits or negotiates insurance with a nonadmitted insurer is guilty of a ___________ by california law. Answer: Misdemeanor

In this state,when an insurer becomes licensed to do business here, it is a(n) ________ insurer.

In this state,when an insurer becomes licensed to do business here, it is a(n) ________ insurer. Answer: Admitted

A mutual insurance company is owned by its _____________.

A mutual insurance company is owned by its _____________. Answer: Policyholders

A stock insurance company is owned by its ____________.

A stock insurance company is owned by its ____________. Answer: Shareholders

Liability coverage under a boat owners policy includes operations liability, passenger liability,and flotilla liability. True or False?

Liability coverage under a boat owners policy includes operations liability, passenger liability,and flotilla liability. True or False? Answer: True

Protection and indemnity insurance would cover damage or loss to cargo arising out of the insured's negligence. True or False?

Protection and indemnity insurance would cover damage or loss to cargo arising out of the insured's negligence. True or False? Answer: True

The type of insurance in ocean marine operations that cover legal liability imposed on the insured for damages arising out of the operation of the insured vessel is called and insurance.

The type of insurance in ocean marine operations that cover legal liability imposed on the insured for damages arising out of the operation of the insured vessel is called __________ and __________ insurance. Answer: Protection Indemnity

Farm liability policies include liability arising from the sale of farm products, provided that the products have not been processed. True or False?

Farm liability policies include liability arising from the sale of farm products, provided that the products have not been processed. True or False? Answer: True

A labor and material bond is a type of ________ bond.

A labor and material bond is a type of ________ bond. Answer: Contract

Generally surety bonds are written for the duration of the contract. True or False?

Generally surety bonds are written for the duration of the contract. True or False? Answer: True

In comparing an insurance contract to a bond, the insurer/insured relationship in insurance is similar to the / _ relationship in a bond.

In comparing an insurance contract to a bond, the insurer/insured relationship in insurance is similar to the ______ / _______ relationship in a bond. Answer: Surety/Obligee

The insurer under a surety bond is called the ______ or guarantor.

The insurer under a surety bond is called the ______ or guarantor. Answer: Surety

In bonding,the party for whose benefit the bond is written is the obligee. True or False?

In bonding,the party for whose benefit the bond is written is the obligee. True or False? Answer: True

In surety bonding, the third party to whom the surety is answerable is the _______.

In surety bonding, the third party to whom the surety is answerable is the _______. Answer: Obligee

In surety bonding, the party whose obligation is guaranteed is the _________.

In surety bonding, the party whose obligation is guaranteed is the _________. Answer: Principal

______ liability insurance is needed to protect employers from claims which arise from their duties under the employee retirement income security act of 1974 (ERISA).

______ liability insurance is needed to protect employers from claims which arise from their duties under the employee retirement income security act of 1974 (ERISA). Answer: Fiduciary

Would a directors and officers liability policy include coverage for errors in preparing a financial statement?

Would a directors and officers liability policy include coverage for errors in preparing a financial statement? Answer: Yes

What type of liability policy would a realtor purchase to protect him / herself professionally?

What type of liability policy would a realtor purchase to protect him / herself professionally? Answer: Errors and Omissions

Lawyers professional liability covers bodily injury and property damages losses. True or False?

Lawyers professional liability covers bodily injury and property damages losses. True or False? Answer: False

If an insurance producer were to fail to renew a policy, it could be covered under his / her errors and omissions liability policy. True or false?

If an insurance producer were to fail to renew a policy, it could be covered under his / her errors and omissions liability policy. True or false? Answer: True

The consent to settle a loss provision, may appear in some _______ professional policies.

The consent to settle a loss provision, may appear in some _______ professional policies. Answer: Medical

The physicians, surgeons, and dentists professional liability policy covers injuries which result from the lack of professional skill or judgement. True or False?

The physicians, surgeons, and dentists professional liability policy covers injuries which result from the lack of professional skill or judgement. True or False? Answer: True

A commercial umbrella policy does not include workers compensation benefits. True or False?

A commercial umbrella policy does not include workers compensation benefits. True or False? Answer: True

Commercial umbrella policies are not ____________ within the industry.

Commercial umbrella policies are not ____________ within the industry. Answer: Standardized

Failure of the insured to maintain required underlying insurance would likely result in an umbrella loss being ________.

Failure of the insured to maintain required underlying insurance would likely result in an umbrella loss being ________. Answer: Excluded

Would a personal umbrella policy cover libel and slander?

Would a personal umbrella policy cover libel and slander? Answer: Yes

Umbrella liability policys typically only cover losses insured by the primary insurance. True or False?

Umbrella liability policys typically only cover losses insured by the primary insurance. True or False? Answer: False

Umbrella policies may cover losses excluded by the underlying policy. True or False?

Umbrella policies may cover losses excluded by the underlying policy. True or False? Answer: True

The purpose for a personal umbrella policy is to cover large and catastrophic losses. True or False?

The purpose for a personal umbrella policy is to cover large and catastrophic losses. True or False? Answer: True

Low cost auto insurance is a pilot auto insurance program available to residents of certain counties who live in a household that gross annual income does not exceed ___% of the federal poverty level.

Low cost auto insurance is a pilot auto insurance program available to residents of certain counties who live in a household that gross annual income does not exceed ___% of the federal poverty level. Answer: 250

Any person who qualifies for a good driver discount policy will be charged at a rate at least ____% below the rate an insured would otherwise be charged for the same coverage.

Any person who qualifies for a good driver discount policy will be charged at a rate at least ____% below the rate an insured would otherwise be charged for the same coverage. Answer: 20

Any broker-agent licensed to transact auto insurance in california and certified by the manager, may submit applications to the california automobile assigned risk plan. True or False?

Any broker-agent licensed to transact auto insurance in california and certified by the manager, may submit applications to the california automobile assigned risk plan. True or False? Answer: True

Minimum financial responsibility requirements in california for auto insurance is $15,000 per person for BI, $30,000 per accident for BI, and $_____ per accident for PD.

Minimum financial responsibility requirements in california for auto insurance is $15,000 per person for BI, $30,000 per accident for BI, and $_____ per accident for PD. Answer: $5,000

The type of insurance offered by most auto dealerships and lessors that insures for the difference between what the insured owes on the vehicle and what the insurer says the vehicles actual cash value is in the event of a loss is known as ___ insurance.

The type of insurance offered by most auto dealerships and lessors that insures for the difference between what the insured owes on the vehicle and what the insurer says the vehicles actual cash value is in the event of a loss is known as ___ insurance. Answer: GAP

The named non owner endorsement may be used to provide liabilty, _ , and ___ motorists coverages.

The named non owner endorsement may be used to provide liabilty, _______ ________, and _________ motorists coverages. Answer: Medical Payments and Uninsured

The miscellaneous type vehicle endorsement amends the definition of covered auto to include recreational type vehicles such as motor homes. True or False?

The miscellaneous type vehicle endorsement amends the definition of covered auto to include recreational type vehicles such as motor homes. True or False? Answer: True

The miscellaneous type vehicle endorsement is not intended to be used for snowmobiles. True or False?

The miscellaneous type vehicle endorsement is not intended to be used for snowmobiles. True or False? Answer: True

The towing and labor endorsement limit applies per __________.

The towing and labor endorsement limit applies per __________. Answer: Occurrence

______ coverage applies when the extended non owned coverage for a named individual is used.

______ coverage applies when the extended non owned coverage for a named individual is used. Answer: Liability

In california an auto insurer may cancel the policy by giving at least days notice for nonpayment of premium, and at least days in all other cases.

In california an auto insurer may cancel the policy by giving at least ____ days notice for nonpayment of premium, and at least ____ days in all other cases. Answer: 10 20

A non endorsed personal auto policy provides coverage in mexico. True or False?

A non endorsed personal auto policy provides coverage in mexico. True or False? Answer: False

When an insured is involved with a hit and run driver, he / she must promptly notify the ______.

When an insured is involved with a hit and run driver, he / she must promptly notify the ______. Answer: Police

After an accident, the insured is required to obtain a complete physical examination at the insured's expense. True or False?

After an accident, the insured is required to obtain a complete physical examination at the insured's expense. True or False? Answer: False

The standard basis of valuation under part D coverage for damage to your auto, is the lesser of the __ of the vehicle, or the amount necessary to repair, or replace the vehicle.

The standard basis of valuation under part D coverage for damage to your auto, is the lesser of the ______ ____ ____ of the vehicle, or the amount necessary to repair, or replace the vehicle. Answer: Actual Cash Value

Part D of the personal auto policy will pay for loss of tapes, records, and discs used with electronic equipment designed for the reproduction of sound. True or False?

Part D of the personal auto policy will pay for loss of tapes, records, and discs used with electronic equipment designed for the reproduction of sound. True or False? Answer: False

Collision damage that occurs when a covered auto is being used in a share- the- expense car pool would be covered. True or False?

Collision damage that occurs when a covered auto is being used in a share- the- expense car pool would be covered. True or False? Answer: True

The personal auto policy will pay up to $_ per day up to $__ for transportation expenses incurred because of a collision loss as long as collision coverage is provided in the declaration.

The personal auto policy will pay up to $___ per day up to $____ for transportation expenses incurred because of a collision loss as long as collision coverage is provided in the declaration. Answer: $20 $600

If an insured does not have collision coverage on an existing vehicle, the collision coverages on a newly acquired auto begins on the date the insured becomes the owner, provided the insured requests the coverage within ___ days of becoming the owner.

If an insured does not have collision coverage on an existing vehicle, the collision coverages on a newly acquired auto begins on the date the insured becomes the owner, provided the insured requests the coverage within ___ days of becoming the owner. Answer: 4

Deductibles in auto insurance tend to _____ premiums.

Deductibles in auto insurance tend to _____ premiums. Answer: Lower

Flood is a cause of loss covered by other than collision (comprehensive). True or False?

Flood is a cause of loss covered by other than collision (comprehensive). True or False? Answer: True

Damage to a covered vehicle caused by earth movement is payable under collision coverage. True or False?

Damage to a covered vehicle caused by earth movement is payable under collision coverage. True or False? Answer: False

If an insured has an auto policy that provides for physical damage, hits a tree while driving a borrowed car, the damage would probably be covered under the _________ part of coverage for damage to your auto.

If an insured has an auto policy that provides for physical damage, hits a tree while driving a borrowed car, the damage would probably be covered under the _________ part of coverage for damage to your auto. Answer: Collision

The upset or overturn of a vehicle is covered under _________.

The upset or overturn of a vehicle is covered under _________. Answer: Collision

Underinsured motorists coverage protects the insured when the other driver's car has inadequate bodily injury coverage. True or False?

Underinsured motorists coverage protects the insured when the other driver's car has inadequate bodily injury coverage. True or False? Answer: True

In california, if a vehicle is not insured for collision, uninsured motorists property damage coverage pays up to $3,500 of the actual cash of the damage to the insured vehicle. True or False?

In california, if a vehicle is not insured for collision, uninsured motorists property damage coverage pays up to $3,500 of the actual cash of the damage to the insured vehicle. True or False? Answer: True

The coverage B medical payments limit is the maximum the insurer will pay for _ person injured in any _ accident.

The coverage B medical payments limit is the maximum the insurer will pay for ___ person injured in any ___ accident. Answer: One, One

________ laws are designed to protect an insured when involved in an accident with drivers who have no insurance.

________ laws are designed to protect an insured when involved in an accident with drivers who have no insurance. Answer: Uninsured Motorists

Would an insured's uninsured motorists coverage proetect the driver of the uninsured vehicle?

Would an insured's uninsured motorists coverage proetect the driver of the uninsured vehicle? Answer: No

Is a vehicle owned by a self insurer considered to be an uninsured motor vehicle?

Is a vehicle owned by a self insurer considered to be an uninsured motor vehicle? Answer: No

Auto _________ coverage would provide coverage when the insured is involved in an at-fault accident.

Auto _________ coverage would provide coverage when the insured is involved in an at-fault accident. Answer: Liability

Part A- liability coverage of a personal auto policy would provide both property damage and bodily injury liability in the event that the insured's 16 year old son was driving the car. True or False?

Part A- liability coverage of a personal auto policy would provide both property damage and bodily injury liability in the event that the insured's 16 year old son was driving the car. True or False? Answer: True

A personal auto policy is written with a single limit of $100,000 for liability. there are six people injured for a total of $150,000. how much will the policy pay?

A personal auto policy is written with a single limit of $100,000 for liability. there are six people injured for a total of $150,000. how much will the policy pay? Answer: $100,000

The personal auto policy is excess in respect to liability coverage when the insured leaves their vehicle at a garage and the vehicle is involved in an accident. True or False?

The personal auto policy is excess in respect to liability coverage when the insured leaves their vehicle at a garage and the vehicle is involved in an accident. True or False? Answer: True

A liability loss arising out of the use of a sailboat in a racing competition would be covered under the watercraft liability endorsement to the homeowners policy. True or False?

A liability loss arising out of the use of a sailboat in a racing competition would be covered under the watercraft liability endorsement to the homeowners policy. True or False? Answer: True

The home business endorsement provides coverage for the professional liability for services rendered by the insured for a business conducted form, the dwelling. True or False?

The home business endorsement provides coverage for the professional liability for services rendered by the insured for a business conducted form, the dwelling. True or False? Answer: False

Under the personal auto policy, a motorcycle would be included in the definition of newly acquired auto. True or False?

Under the personal auto policy, a motorcycle would be included in the definition of newly acquired auto. True or False? Answer: False

Part A- liability coverage of a personal auto policy includes both bodily injury and ________ coverage.

Part A- liability coverage of a personal auto policy includes both bodily injury and ________ coverage. Answer: Property Damage

Section 2 of a homeowners policy excludes payment for bodily injury or property damage arising out of the use, sale, manufacture, delivery, or possession of a controlled substance. True or False?

Section 2 of a homeowners policy excludes payment for bodily injury or property damage arising out of the use, sale, manufacture, delivery, or possession of a controlled substance. True or False? Answer: True

Under the business pursuits endorsement, must the business be named on the endorsement?

Under the business pursuits endorsement, must the business be named on the endorsement? Answer: Yes

Malicious prosecution would meet the definition of personal injury and be a covered act under the personal injury endorsement. True or False?

Malicious prosecution would meet the definition of personal injury and be a covered act under the personal injury endorsement. True or False? Answer: True

A motorized golf cart used by a retired homeowner to make trips to the corner grocery would meet the definition of covered vehicle under section 2 of a homeowners policy. True or False?

A motorized golf cart used by a retired homeowner to make trips to the corner grocery would meet the definition of covered vehicle under section 2 of a homeowners policy. True or False? Answer: False

Would a 12 foot kayak be considered automatically as covered watercraft under section 2 of a homeowners policy?

Would a 12 foot kayak be considered automatically as covered watercraft under section 2 of a homeowners policy? Answer: Yes

Damages caused intentionally by an insured who is 12 years of age would be covered under damage to property of others (additional coverages). True or False?

Damages caused intentionally by an insured who is 12 years of age would be covered under damage to property of others (additional coverages). True or False? Answer: True

Section 2 of a homeowners policy covers damage to property of the insured. True or False?

Section 2 of a homeowners policy covers damage to property of the insured. True or False? Answer: False

Would an insured's overnight guest be covered for medical payments under a homeowners policy?

Would an insured's overnight guest be covered for medical payments under a homeowners policy? Answer: Yes

Claims payed under section 2 of a homeowners policy are subject to a standard $250 deductible.

Claims payed under section 2 of a homeowners policy are subject to a standard $250 deductible. Answer: False

First aid expenses under section 2 of a homeowners policy would cover a neighbor that gets injured while helping the insured install a carpet. True or False?

First aid expenses under section 2 of a homeowners policy would cover a neighbor that gets injured while helping the insured install a carpet. True or False? Answer: True

Under section 2 of a homeowners policy, damage to property of others (additional coverages) duplicates coverage that is included in section 1. True or False?

Under section 2 of a homeowners policy, damage to property of others (additional coverages) duplicates coverage that is included in section 1. True or False? Answer: False

The process whereby an insurer seeks to recover against a third party that has caused it to pay a claimed to insured is known as ___________.

The process whereby an insurer seeks to recover against a third party that has caused it to pay a claimed to insured is known as ___________. Answer: Subrogation

A household employee who is purchasing something for the insured would be considered a _________ employee.

A household employee who is purchasing something for the insured would be considered a _________ employee. Answer: Residence

Under the homeowners policy, medical payments to others applies to expenses that are incurred within ___ years of an accident.

Under the homeowners policy, medical payments to others applies to expenses that are incurred within ___ years of an accident. Answer: 3

Would the medical payments under section 2 of a homeowners policy cover loss of income of an injured person?

Would the medical payments under section 2 of a homeowners policy cover loss of income of an injured person? Answer: No

Supplementary payments are not paid in addition to other limits of liability. True or False?

Supplementary payments are not paid in addition to other limits of liability. True or False? Answer: False

Exclusions may deny coverage for certain locations as well as certain persons. True or False?

Exclusions may deny coverage for certain locations as well as certain persons. True or False? Answer: True

When the limits of bodily injury and property damage are specified separately, they are known as _____ limits.

When the limits of bodily injury and property damage are specified separately, they are known as _____ limits. Answer: Split

When the limit of the policy can be applied to either bodily injury or property damage, wherever needed, or in any combination, this is a __ limit.

When the limit of the policy can be applied to either bodily injury or property damage, wherever needed, or in any combination, this is a ________ ______ limit. Answer: Combined single

Under a liability policy, an assignment of interest takes effect after the _______ consents.

Under a liability policy, an assignment of interest takes effect after the _______ consents. Answer: Insurer

Employers are __________ liable for employees work-related injuries.

Employers are __________ liable for employees work-related injuries. Answer: Absolutely

_____ liability is a legal doctrine that holds a manufacturer legally liable for injuries to a customer whether or not the manufacturer's product was defective.

_____ liability is a legal doctrine that holds a manufacturer legally liable for injuries to a customer whether or not the manufacturer's product was defective. Answer: Strict

The two types of no fault systems are _ and ____.

The two types of no fault systems are _____ and ________. Answer: Pure Modified

Under pure no fault, the tort system is completely abolished for bodily injuries caused by auto accidents. True or False?

Under pure no fault, the tort system is completely abolished for bodily injuries caused by auto accidents. True or False? Answer: True

_______ defense in liability insurance are determined by the legislature.

_______ defense in liability insurance are determined by the legislature. Answer: Statutory

Under __________ negligence, damages are reduced in proportion to the degree of negligence.

Under __________ negligence, damages are reduced in proportion to the degree of negligence. Answer: Comparative

Under comparative negligence, damages awarded vary depending on each states statues. True or False?

Under comparative negligence, damages awarded vary depending on each states statues. True or False? Answer: True

_____ is defined as an unbroken, natural and continuous sequence that produced injury and without which the result would not have occured.

_____ is defined as an unbroken, natural and continuous sequence that produced injury and without which the result would not have occured. Answer: Proximate Cause

________ negligence, under common law, denies recovery for damages caused by a negligent party if the claimant was also negligent.

________ negligence, under common law, denies recovery for damages caused by a negligent party if the claimant was also negligent. Answer: Contributory

The dissemination of any written or printed material tending to unjustly injure a person's reputation , defines _____.

The dissemination of any written or printed material tending to unjustly injure a person's reputation , defines _____. Answer: Libel

A person is obligated to a certain standard of conduct for the protection of others by legal duty. True or False?

A person is obligated to a certain standard of conduct for the protection of others by legal duty. True or False? Answer: True

When a stairway does not contain enough lighting, the owner has not fufilled the required standard of care. True or False?

When a stairway does not contain enough lighting, the owner has not fufilled the required standard of care. True or False? Answer: True

_______ damages are damages awarded as punishment for extreme objectional conduct by a negligent party.

_______ damages are damages awarded as punishment for extreme objectional conduct by a negligent party. Answer: Punitive

Would bodily injury coverage also include a breach of contract?

Would bodily injury coverage also include a breach of contract? Answer: No

Bodily injury claims may include loss of earnings. True or False?

Bodily injury claims may include loss of earnings. True or False? Answer: True

Personal injury includes bodily injury. True or False?

Personal injury includes bodily injury. True or False? Answer: False

_____ liability establishes that one can be held legally liable for the acts of another, such as a principal for the acts of its agents.

_____ liability establishes that one can be held legally liable for the acts of another, such as a principal for the acts of its agents. Answer: Vicarious

A willful, wanton or reckless disregard of the consequences affecting the life or property of another is the definition of _____ negligence.

A willful, wanton or reckless disregard of the consequences affecting the life or property of another is the definition of _____ negligence. Answer: Gross

Do specific damages include pain and suffering?

Do specific damages include pain and suffering? Answer: No

A tort is a _ or ___ wrong commited by one person against another.

A tort is a _____ or _______ wrong commited by one person against another. Answer: Civil Private

Libel, slander and false arrest are categorized as ___________ torts.

Libel, slander and false arrest are categorized as ___________ torts. Answer: Intentional

An unendorsed liability policy provides coverage for _____________ torts.

An unendorsed liability policy provides coverage for _____________ torts. Answer: Unintentional

In establishing negligence in liability insurance, it helps if the claimant can prove the act was intentional. True or False?

In establishing negligence in liability insurance, it helps if the claimant can prove the act was intentional. True or False? Answer: False

The national flood insurance program is available for private dwellings only. True or False?

The national flood insurance program is available for private dwellings only. True or False? Answer: False

Would the flood policy cover a flood that is confined to the insured's premises?

Would the flood policy cover a flood that is confined to the insured's premises? Answer: No

Attached structures and utility tanks are insured as a part of coverage ____(mobile home) under a mobile home owners policy.

Attached structures and utility tanks are insured as a part of coverage ____(mobile home) under a mobile home owners policy. Answer: A

The transportation / permission to move endorsement provides coverage for the collision,upset, stranding or sinking of a mobile home that is being moved to a new location for up to ____ days.

The transportation / permission to move endorsement provides coverage for the collision,upset, stranding or sinking of a mobile home that is being moved to a new location for up to ____ days. Answer: 30

Individuals who own property in participating communities are eligible to purchase flood insurance. True or False?

Individuals who own property in participating communities are eligible to purchase flood insurance. True or False? Answer: True

Mudslides caused by accumulation of water are considered a covered peril under the national flood insurance program. True or False

Mudslides caused by accumulation of water are considered a covered peril under the national flood insurance program. True or False Answer: True

Are kitchen appliances covered under the national flood insurance program?

Are kitchen appliances covered under the national flood insurance program? Answer: Yes

Wharves, piers and docks are, or are not covered under a national flood insurance program.

Wharves, piers and docks are, or are not covered under a national flood insurance program. Answer: Are Not

The national flood insurance policy covers water damage from a sewer. True or False?

The national flood insurance policy covers water damage from a sewer. True or False? Answer: False

What basis of valuation is typically used when writing hull and cargo insurance?

What basis of valuation is typically used when writing hull and cargo insurance? Answer: Valued

The fine arts floater provides automatic coverage for ____ days for newly acquired items.

The fine arts floater provides automatic coverage for ____ days for newly acquired items. Answer: 90

Under a musical instrument floater, how many days is there automatic coverage for newly acquired musical instruments?

Under a musical instrument floater, how many days is there automatic coverage for newly acquired musical instruments? Answer: 30

Most boat owners policies provide physical damage coverage on an open peril basis. True or False?

Most boat owners policies provide physical damage coverage on an open peril basis. True or False? Answer: True

A yacht policy is an inland marine form and provides property hull coverage only. True or False?

A yacht policy is an inland marine form and provides property hull coverage only. True or False? Answer: False

The california residential property insurance disclosure form is required by california law and becomes an actual part of an insured's homeowners policy. True or False?

The california residential property insurance disclosure form is required by california law and becomes an actual part of an insured's homeowners policy. True or False? Answer: False

___ insurance includes physical damage to machinery and fitting of the vessel.

___ insurance includes physical damage to machinery and fitting of the vessel. Answer: Hull

Ocean marine hull insurance is typically written to cover a particular voyage or for one year. True or False?

Ocean marine hull insurance is typically written to cover a particular voyage or for one year. True or False? Answer: True

If cargo is shipped FOB point of destination, the seller retains the cost of transportation and insurance during shipping. True or False?

If cargo is shipped FOB point of destination, the seller retains the cost of transportation and insurance during shipping. True or False? Answer: True

Under the homeowners policy, the personal property replacement cost endorsement would provide replacement cost on an insured's pet. True or False?

Under the homeowners policy, the personal property replacement cost endorsement would provide replacement cost on an insured's pet. True or False? Answer: False

Under the scheduled personal property endorsement, newly aquired fine arts need to be reported to the insurer within ____ days.

Under the scheduled personal property endorsement, newly aquired fine arts need to be reported to the insurer within ____ days. Answer: 90

Ensuing loss by fire, explosion or glass breakage resulting from earth movement is covered under a homeowners policy even though the earth movement itself is excluded. True or False?

Ensuing loss by fire, explosion or glass breakage resulting from earth movement is covered under a homeowners policy even though the earth movement itself is excluded. True or False? Answer: False

Is the backing up of sewers covered under a homeowners policy?

Is the backing up of sewers covered under a homeowners policy? Answer: No

If an insured has maintained heat in an unoccupied dwelling, damaged caused by freezing of the plumbing system would be covered under the HO-3 policy. True or False?

If an insured has maintained heat in an unoccupied dwelling, damaged caused by freezing of the plumbing system would be covered under the HO-3 policy. True or False? Answer: True

Would a television set be covered on a replacement cost basis under the replacement cost endorsement?

Would a television set be covered on a replacement cost basis under the replacement cost endorsement? Answer: Yes

When a covered loss exhausts the applicable coverage limit, debris removal coverage will pay up to an additional ___% of coverage A.

When a covered loss exhausts the applicable coverage limit, debris removal coverage will pay up to an additional ___% of coverage A. Answer: 5

Under a HO-3 policy, the maximum amount for any one tree, shrub or plant is $___.

Under a HO-3 policy, the maximum amount for any one tree, shrub or plant is $___. Answer: 500

When an insured removes insured property from the premises because it is endangered by a covered peril, the homeowners policy provides coverage for ____ days at the location the property is removed to.

When an insured removes insured property from the premises because it is endangered by a covered peril, the homeowners policy provides coverage for ____ days at the location the property is removed to. Answer: 30

The HO-2 policy will cover the collapse of a patio that is caused by the weight of water that has collected on the roof. True Or False?

The HO-2 policy will cover the collapse of a patio that is caused by the weight of water that has collected on the roof. True Or False? Answer: False

Under a homeowners policy, landslides would be covered. True or False?

Under a homeowners policy, landslides would be covered. True or False? Answer: False

An insured's camera that is stolen by a visitor would be covered under the homeowners policy. True or False?

An insured's camera that is stolen by a visitor would be covered under the homeowners policy. True or False? Answer: True

Additional living expense under a homeowners policy is found in coverage ___.

Additional living expense under a homeowners policy is found in coverage ___. Answer: D

An insured has a homeowners policy and suffers a direct loss causing the insured to seek other living arrangements. the insured's normal househould expense is $500 per month. however the new arrangements cost is $700 per month. how much will the insured collect monthly from the homeowners policy?

An insured has a homeowners policy and suffers a direct loss causing the insured to seek other living arrangements. the insured's normal househould expense is $500 per month. however the new arrangements cost is $700 per month. how much will the insured collect monthly from the homeowners policy? Answer: $200

Do payments under coverage D of the homeowners policy affect the policies liability limits?

Do payments under coverage D of the homeowners policy affect the policies liability limits? Answer: No

The territorial limits for personal property under the homeowners policy is _________.

The territorial limits for personal property under the homeowners policy is _________. Answer: Worldwide

Under section 1 of a homeowners policy, there is a special limit under coverage C on watercraft of _____.

Under section 1 of a homeowners policy, there is a special limit under coverage C on watercraft of _____. Answer: $1,500

Under section 1 of a homeowners policy, there is a special limit for the theft of firearms. True or False?

Under section 1 of a homeowners policy, there is a special limit for the theft of firearms. True or False? Answer: True

Is there coverage for windstorm damage under a homeowners policy on personal property contained in the building unless an opening is caused by a covered peril?

Is there coverage for windstorm damage under a homeowners policy on personal property contained in the building unless an opening is caused by a covered peril? Answer: No

What percentage of coverage A is allowed for coverage B (other structures) under a homeowners policy?

What percentage of coverage A is allowed for coverage B (other structures) under a homeowners policy? Answer: 10

Under the homeowners policy, vandalism and malicious mischief coverage is excluded if the property is ______ for more than 60 days.

Under the homeowners policy, vandalism and malicious mischief coverage is excluded if the property is ______ for more than 60 days. Answer: Vacant

A homeowners policy that is written for $100,000, has the detached garage completely destroyed by fire. what is the most the policy will pay?

A homeowners policy that is written for $100,000, has the detached garage completely destroyed by fire. what is the most the policy will pay? Answer: $10,000

The HO-3 policy provides theft coverage for building supplies that are next to the house which are to be used in construction. True or False?

The HO-3 policy provides theft coverage for building supplies that are next to the house which are to be used in construction. True or False? Answer: False

A homeowner has an insured loss of $10,000 damage to the home, $2,000 damage to personal property and $2,000 additional living expenses. the policy carries a $100 deductible. how much will the policy pay?

A homeowner has an insured loss of $10,000 damage to the home, $2,000 damage to personal property and $2,000 additional living expenses. the policy carries a $100 deductible. how much will the policy pay? Answer: $13,900

The HO-6 condominium unit-owners form provides coverage for common grounds which are next to the insured's property. True or False?

The HO-6 condominium unit-owners form provides coverage for common grounds which are next to the insured's property. True or False? Answer: False

The HO-6 provides ________ peril coverage on personal property.

The HO-6 provides ________ peril coverage on personal property. Answer: Broad Form Named

The main difference between an HO-3 and an HO-5 is that the HO-3 insures personal property for broad form perils and the HO-5 insures personal properties for open perils.

The main difference between an HO-3 and an HO-5 is that the HO-3 insures personal property for broad form perils and the HO-5 insures personal properties for open perils. Answer: True

A client desires open peril coverage on both their dwelling and personal property under their homeowners policy. which homeowners form would give them this coverage?

A client desires open peril coverage on both their dwelling and personal property under their homeowners policy. which homeowners form would give them this coverage? Answer: Form 5

Does the HO-4 provide coverage for real property?

Does the HO-4 provide coverage for real property? Answer: No

The HO-4 policy provides _ peril coverage on the personal property.

The HO-4 policy provides _____ ____ peril coverage on the personal property. Answer: Broad Form

The perils included in the HO-3 policy for coverages A and B are the special _____ perils.

The perils included in the HO-3 policy for coverages A and B are the special _____ perils. Answer: Open

Does an HO-3 policy provide coverage against damage caused by falling objects?

Does an HO-3 policy provide coverage against damage caused by falling objects? Answer: Yes

Under a homeowners policy, for a claim of more than $2,500 on the dwelling to be paid on a replacement cost basis, the repairs must __________.

Under a homeowners policy, for a claim of more than $2,500 on the dwelling to be paid on a replacement cost basis, the repairs must __________. Answer: Be Completed

Under the HO-2, would the explosion of a hot water heater that causes major damage to the house be covered?

Under the HO-2, would the explosion of a hot water heater that causes major damage to the house be covered? Answer: Yes

Water that backs up through sewers and drains causing damage is covered under a DP-3. True or False?

Water that backs up through sewers and drains causing damage is covered under a DP-3. True or False? Answer: False

The earth movement exclusion does not exclude damage by an explosion that ensues from the earth movement. True or False?

The earth movement exclusion does not exclude damage by an explosion that ensues from the earth movement. True or False? Answer: True

Collapse of a structure due to hidden decay is covered under all dwelling forms. True or False?

Collapse of a structure due to hidden decay is covered under all dwelling forms. True or False? Answer: False

Under the DP-2, and DP-3, endangered property removed to another location is covered for 30 days while at the removed location. True or False?

Under the DP-2, and DP-3, endangered property removed to another location is covered for 30 days while at the removed location. True or False? Answer: True

The DP-1 basic form applies coverage to property that is removed because it is endangered by a covered peril. True or False?

The DP-1 basic form applies coverage to property that is removed because it is endangered by a covered peril. True or False? Answer: True

Coverage C under the dwelling forms extends to include personal property of a tenant or boarder of the insured. True or False?

Coverage C under the dwelling forms extends to include personal property of a tenant or boarder of the insured. True or False? Answer: False

At the insured's request, coverage C ____________ will cover personal property of a guest or servant while on described premises.

At the insured's request, coverage C ____________ will cover personal property of a guest or servant while on described premises. Answer: Personal Property

Does a detached garage that is used to store commercial equipment qualify for coverage under coverage B other structures of the dwelling forms?

Does a detached garage that is used to store commercial equipment qualify for coverage under coverage B other structures of the dwelling forms? Answer: No

The land under a dwelling is not covered as a part of coverage A (dwelling) under the dwelling forms. True or False?

The land under a dwelling is not covered as a part of coverage A (dwelling) under the dwelling forms. True or False? Answer: True

The covered causes of loss constitute the major differences between the dwelling forms. True or False?

The covered causes of loss constitute the major differences between the dwelling forms. True or False? Answer: True

Under a DP-3 special form, fixtures that are apart of a dwelling which is not under construction or that has not been vacant for more than 30 days are covered for theft. True or False?

Under a DP-3 special form, fixtures that are apart of a dwelling which is not under construction or that has not been vacant for more than 30 days are covered for theft. True or False? Answer: True

In the event of a loss, the DP-2 broad form pays for damage to the dwelling on a ___ basis.

In the event of a loss, the DP-2 broad form pays for damage to the dwelling on a ___ basis. Answer: Replacement Cost

Smoke damaged caused from nearby industrial operations is or is not covered under a DP-2 broad form.

Smoke damaged caused from nearby industrial operations is or is not covered under a DP-2 broad form. Answer: Is Not

Losses to the dwelling, other structures, and contents are paid on an actual cash value basis under a DP-1.

Losses to the dwelling, other structures, and contents are paid on an actual cash value basis under a DP-1. Answer: True

A dwelling containing 5 apartment units would be eligible for coverage under a dwelling policy. True or False?

A dwelling containing 5 apartment units would be eligible for coverage under a dwelling policy. True or False? Answer: False

Whenever a personal property policy is cancelled or surrendered the unearned premium is to be tendered to the insured, or insurance agent of record for the transmittal to the insured, within ____ days of the cancellation or surrender.

Whenever a personal property policy is cancelled or surrendered the unearned premium is to be tendered to the insured, or insurance agent of record for the transmittal to the insured, within ____ days of the cancellation or surrender. Answer: 25

Essentially, the higher the deductible that the insured chooses, the higher the premium will be. True or False?

Essentially, the higher the deductible that the insured chooses, the higher the premium will be. True or False? Answer: False

Under a commercial lines property policy, who has the right to request changes to the policy, and the right to recieve any return of premium?

Under a commercial lines property policy, who has the right to request changes to the policy, and the right to recieve any return of premium? Answer: First Named Insured

Under a commercial lines property policy, who is responsible for making the premium payments in a timely manner?

Under a commercial lines property policy, who is responsible for making the premium payments in a timely manner? Answer: First Named Insured

An amendment that is attached to a property insurance policy to broaden or restrict coverage, or further define certain policy provisions is known as a(n) ___________.

An amendment that is attached to a property insurance policy to broaden or restrict coverage, or further define certain policy provisions is known as a(n) ___________. Answer: Endorsement

The _________ portion of the policy specifies the causes of loss perils not covered, or property not covered.

The _________ portion of the policy specifies the causes of loss perils not covered, or property not covered. Answer: Exclusions

Company A has issued a policy in the amount of $200,000, and company B has issued a policy in the amount of $300,000. under the other insurance or pro rata liability condition or provision, how much will company A pay of a $100,000 loss?

Company A has issued a policy in the amount of $200,000, and company B has issued a policy in the amount of $300,000. under the other insurance or pro rata liability condition or provision, how much will company A pay of a $100,000 loss? Answer: $40,000

In the event of a loss under a homeowners policy, a proof of loss must be signed and sworn by the _______.

In the event of a loss under a homeowners policy, a proof of loss must be signed and sworn by the _______. Answer: Insured

When an insured suffers a loss, they are required to prepare an inventory of the damaged property at the ________ request.

When an insured suffers a loss, they are required to prepare an inventory of the damaged property at the ________ request. Answer: Insurers

________ transfers an insured's legal right of recovery to the insurer that paid the claim.

________ transfers an insured's legal right of recovery to the insurer that paid the claim. Answer: Subrogation

The insured's transfer of right of ownership or interest in an insurance policy to another party with the insurer's written consent is known as an __________.

The insured's transfer of right of ownership or interest in an insurance policy to another party with the insurer's written consent is known as an __________. Answer: Assignment

An insurer may nonrenew a homeowners policy with oral notice to the insured. True or False?

An insurer may nonrenew a homeowners policy with oral notice to the insured. True or False? Answer: False

Could an order to vacate the property possibly cause an insurer to cancel a commercial property policy?

Could an order to vacate the property possibly cause an insurer to cancel a commercial property policy? Answer: Yes

When a property policy has been in effect less than 60 days and the insurer cancels for the nonpayment of premium, the insurer must give the insured ____ days written notice.

When a property policy has been in effect less than 60 days and the insurer cancels for the nonpayment of premium, the insurer must give the insured ____ days written notice. Answer: 10

The ______________ Clause allows insurers to automatically broaden coverage without endorsement on existing policies with no increase in premium.

The ______________ Clause allows insurers to automatically broaden coverage without endorsement on existing policies with no increase in premium. Answer: Liberalization

The __________ part or portion of a property policy sets forth the rights, rules, duties, and obligations of the insurer and insured to be followed throughout the policy period.

The __________ part or portion of a property policy sets forth the rights, rules, duties, and obligations of the insurer and insured to be followed throughout the policy period. Answer: Conditions

Are the insurer's limits of insurance amount stated in the conditions part or portion part of the policy?

Are the insurer's limits of insurance amount stated in the conditions part or portion part of the policy? Answer: No

What part or portion of a property policy contains the effective or expiration dates of the policy?

What part or portion of a property policy contains the effective or expiration dates of the policy? Answer: Declarations

The name of the insured is found on the declarations page of the policy. True or False?

The name of the insured is found on the declarations page of the policy. True or False? Answer: True

Insuring more than one property on one policy for a single amount of insurance that applies to all properties covered under the policy is known as _______ coverage.

Insuring more than one property on one policy for a single amount of insurance that applies to all properties covered under the policy is known as _______ coverage. Answer: Blanket

A valued policy is one that expresses on it's face an agreement that the thing insured is valued at a specific sum. True or False?

A valued policy is one that expresses on it's face an agreement that the thing insured is valued at a specific sum. True or False? Answer: True

An ____ policy is one that the value of the subject matter is not agreed upon, but is left to be ascertained in case of loss.

An ____ policy is one that the value of the subject matter is not agreed upon, but is left to be ascertained in case of loss. Answer: Open

Would a stated amount method of valuation likely be used when insuring gold bullion?

Would a stated amount method of valuation likely be used when insuring gold bullion? Answer: No

For replacement cost coverage to apply in dwelling policies, the insured must carry insurance at least equal to ____% of the cost of replacement of the building.

For replacement cost coverage to apply in dwelling policies, the insured must carry insurance at least equal to ____% of the cost of replacement of the building. Answer: 80

If a property owner does not desire any deduction for depreciation following a covered loss, he/she should purchase a _______ policy.

If a property owner does not desire any deduction for depreciation following a covered loss, he/she should purchase a ___________ ____ policy. Answer: Replacement Cost

Open peril policies include losses caused by theft. True or False?

Open peril policies include losses caused by theft. True or False? Answer: True

If a fire on a premises caused a power outage, which caused meat in the freezer to spoil, would the meat spoilage be considered a direct loss or indirect loss?

If a fire on a premises caused a power outage, which caused meat in the freezer to spoil, would the meat spoilage be considered a direct loss or indirect loss? Answer: Indirect Loss

When property is damaged by fire, the loss is said to be a(n) ______ loss.

When property is damaged by fire, the loss is said to be a(n) ______ loss. Answer: Direct

A building that has neither occupants nor personal property is ______.

A building that has neither occupants nor personal property is ______. Answer: Vacant

Policy A is written for $100,000, and an excess Policy B is written for $200,000 on the same property. In the event of a $20,000 loss, how much will each policy pay?

Policy A is written for $100,000, and an excess Policy B is written for $200,000 on the same property. In the event of a $20,000 loss, how much will each policy pay? Answer: A= $20,000 ; B= $0

If two or more policies provide identical coverage for the same risk, the policies are deemed to be __________.

If two or more policies provide identical coverage for the same risk, the policies are deemed to be __________. Answer: Concurrent

_______ is a situation where there are two causes resulting in a loss, with one of the causes excluded and the other cause of loss not excluded.

_______ is a situation where there are two causes resulting in a loss, with one of the causes excluded and the other cause of loss not excluded. Answer: Concurrent Causation

The process by which a disputed claim is decided by a neutral third party is known as ___________.

The process by which a disputed claim is decided by a neutral third party is known as ___________. Answer: Arbitration

A document that provides temporary insurance coverage until a policy is issued is known as a ______.

A document that provides temporary insurance coverage until a policy is issued is known as a ______. Answer: Binder

A fire is considered to be a _____ of a potential loss.

A fire is considered to be a _____ of a potential loss. Answer: Cause

When an insured requests cancellation of a policy, the unearned premium is refunded to the insured on a _ _.

When an insured requests cancellation of a policy, the unearned premium is refunded to the insured on a _____ _____. Answer: Short Rate

When the insurer cancels a property policy, the unearned premium is returned _ __.

When the insurer cancels a property policy, the unearned premium is returned ___ ____. Answer: Pro Rata

The termination of a policy by either the insured or insurer before its expiration date is known as ___________.

The termination of a policy by either the insured or insurer before its expiration date is known as ___________. Answer: Cancellation

When rates cannot be used until they are improved by the department or division of insurance, they are called ____ rates.

When rates cannot be used until they are improved by the department or division of insurance, they are called ____ ________ rates. Answer: Prior Approval

Underwriters like to select insureds who's actual losses will be similar to expected losses. True or False?

Underwriters like to select insureds who's actual losses will be similar to expected losses. True or False? Answer: True

The determination of acceptable risks is the primary function of the ___________ .

The determination of acceptable risks is the primary function of the ___________ . Answer: Underwriter

The fact that an insured would profit from a loss, would be a violation of the principle of ___________.

The fact that an insured would profit from a loss, would be a violation of the principle of ___________. Answer: Indemnity

_________ Reinsurance is accepted or rejected by a case by case basis.

_________ Reinsurance is accepted or rejected by a case by case basis. Answer: Facultative

A ___________ contract is an arrangement where one insurer transfers or shares risks with another insurer.

A ___________ contract is an arrangement where one insurer transfers or shares risks with another insurer. Answer: Reinsurance

The insuring of risks that are more prone to losses than average risks is known as?

The insuring of risks that are more prone to losses than average risks is known as? Answer: Adverse Selection

When the number of similar units increases, the predictability of the loss improves according to the rule of _ ____.

When the number of similar units increases, the predictability of the loss improves according to the rule of _____ ________. Answer: Large Numbers

Risk _________ is when one takes action to prevent or reduce potential loss.

Risk _________ is when one takes action to prevent or reduce potential loss. Answer: Reduction

On a CGL, which of the following is covered?

On a CGL, which of the following is covered? A.The owner of a tavern serving beer by the bottle is sued for vicarious liability B.A plumber damages the floor in your home while installing a sink C.A mechanic damages your car while repairing it in his shop D.A dry cleaners damages your fur coat during the cleaning process Answer: B.A plumber damages the floor in your home while installing a sink

Which part of a workers' compensation policy covers in the event the injured worker sues the employer?

Which part of a workers' compensation policy covers in the event the injured worker sues the employer? Answer: Part 2 - employer's liability

Which of the following is not considered an insured contract on a CGL?

Which of the following is not considered an insured contract on a CGL? A.A written lease agreement B.A railroad sidetrack agreement C.An elevator maintenance agreement D.An agreement to pay for fire damages to the premises rented by the insured Answer: D.An agreement to pay for fire damages to the premises rented by the insured

Which party makes the guarantee on a surety bond?

Which party makes the guarantee on a surety bond? Answer: The surety

On a CGL, bodily injury and property damage to others is covered under:

On a CGL, bodily injury and property damage to others is covered under: Answer: Premises and operations liability

The name of the bailee type coverage that provides legal liability for damage to customers' autos that are left with the insured for servicing, repair, or storage is called:

The name of the bailee type coverage that provides legal liability for damage to customers' autos that are left with the insured for servicing, repair, or storage is called: Answer: Garagekeepers legal liability coverage

Workers' compensation medical benefits usually:

Workers' compensation medical benefits usually: Answer: Have no dollar limit or time limit

Under a business auto coverage part, the drive other car endorsement is used to cover:

Under a business auto coverage part, the drive other car endorsement is used to cover: Answer: The non-business auto liability exposures of named individuals

On a CGL, products liability covers all EXCEPT:

On a CGL, products liability covers all EXCEPT: A.Real property used to manufacture your product B.Your product's packaging C.Your product sold by others D.Your sale of your product Answer: A.Real property used to manufacture your product

The party the insurer must pay if the party bonded does not perform is the:

The party the insurer must pay if the party bonded does not perform is the: Answer: Obligee

A worker who is covered by workers' compensation dies in an industrial accident. The family members are eligible for all of the following survivors benefits EXCEPT:

A worker who is covered by workers' compensation dies in an industrial accident. The family members are eligible for all of the following survivors benefits EXCEPT: A.Burial allowance B.Income benefits for the surviving spouse, even if they remarry C.Benefits for dependent children up to age 18 D.Benefits for older children if in college Answer: B.Income benefits for the surviving spouse, even if they remarry

A claims made CGL was written with a retroactive date of 1-1-2009 and a policy period of 1-1-2010 to 1-1-2011. Which of the following claims would be covered?

A claims made CGL was written with a retroactive date of 1-1-2009 and a policy period of 1-1-2010 to 1-1-2011. Which of the following claims would be covered? A.A claim occurring in 2011 and submitted in 2011 B.A claim occurring in 2008 and submitted in 2009 C.A claim occurring in 2009 and submitted in 2010 D.A claim occurring in 2009 and submitted in 2011 Answer: C.A claim occurring in 2009 and submitted in 2010

All of the following accidents could be covered under the uninsured motorists coverage of your personal auto policy EXCEPT:

All of the following accidents could be covered under the uninsured motorists coverage of your personal auto policy EXCEPT: A.An accident in which a hit-and-run driver hits your covered auto B.An accident with a motorist who had less liability insurance than required by the Financial Responsibility Law C.An accident with an insured driver whose insurer declines coverage D.An accident with a driver who carries the minimum liability limits required by law, but whose insurance is not adequate to cover the damages Answer: D.An accident with a driver who carries the minimum liability limits required by law, but whose insurance is not adequate to cover the damages

Under a PAP, which of the following is not a collision loss?

Under a PAP, which of the following is not a collision loss? A.Impact between the covered auto and another vehicle B.Impact between the covered auto and a deer C.Upset of the covered auto, resulting in damage D.Impact between the covered auto and a stationary object Answer: B.Impact between the covered auto and a deer

In which of the following instances would pollution liability be covered under a business auto policy?

In which of the following instances would pollution liability be covered under a business auto policy? A.When pollutants are being transported in a semi-trailer B.When pollutants are being moved from or onto a covered auto C.When pollution results due to the normal mechanical functioning of a covered auto D.While pollutants are being stored in a covered auto Answer: C.When pollution results due to the normal mechanical functioning of a covered auto

Directors and officers liability covers:

Directors and officers liability covers: Answer: Filing incorrect financial statements

Underinsured motorists coverage:

Underinsured motorists coverage: Answer: Is an optional liability endorsement on a PAP

On a business auto policy (BAP), which accurately describes a hired auto?

On a business auto policy (BAP), which accurately describes a hired auto? A.The business' cars B.One a business owner or employee rents when he or she is out of town on business C.Employee's own personal cars D.The business owner's personal vehicle Answer: B.One a business owner or employee rents when he or she is out of town on business

A policy introduced to solve long tail problems in areas of liability insurance is known as:

A policy introduced to solve long tail problems in areas of liability insurance is known as: A.Umbrella B.Occurrence form C.Surplus lines D.Claims made form Answer: D.Claims made form

Under the supplementary payments of a personal auto policy, if an insured takes time off from work to attend a hearing or trial as the result of a covered accident, the policy will pay up to:

Under the supplementary payments of a personal auto policy, if an insured takes time off from work to attend a hearing or trial as the result of a covered accident, the policy will pay up to: Answer: $200 a day for loss of earnings

Who sets the rates for the Automobile Assigned Risk Plan?

Who sets the rates for the Automobile Assigned Risk Plan? Answer: Participating carriers

If a claims made CGL is renewed by an occurrence CGL and the insured purchases a supplemental extended reporting period (ERP), the period for reporting claims related to the claims made policy period will be extended:

If a claims made CGL is renewed by an occurrence CGL and the insured purchases a supplemental extended reporting period (ERP), the period for reporting claims related to the claims made policy period will be extended: Answer: Indefinitely

All of the following are true about surplus lines EXCEPT:

All of the following are true about surplus lines EXCEPT: A.It must be sold through a licensed surplus lines broker B.It is sold by companies like Lloyds of London C.It may be sold only by authorized insurers D.It is unregulated Answer: C.It may be sold only by authorized insurers

The broadest commercial crime policy is:

The broadest commercial crime policy is: Answer: Theft, disappearance, and destruction

The business auto coverage part automatically covers which of the following under the liability section?

The business auto coverage part automatically covers which of the following under the liability section? A.Property damage to the insured's own property B.Bodily injury to the insured C.Workers' compensation D.Mobile equipment being transported or towed by the insured Answer: D.Mobile equipment being transported or towed by the insured

The name of the policy that is usually written on a blanket basis to protect auto dealers and repair shops for legal liability in the event a customer's car is damaged is called:

The name of the policy that is usually written on a blanket basis to protect auto dealers and repair shops for legal liability in the event a customer's car is damaged is called: Answer: Garagekeepers legal liability

Which type of crime coverage requires forcible signs of entry or exit?

Which type of crime coverage requires forcible signs of entry or exit? Answer: Burglary

On a crime insurance policy, a crime requiring the threat of violence is:

On a crime insurance policy, a crime requiring the threat of violence is: Answer: Robbery

Under business auto coverage, each of the following is true about classifications of covered autos EXCEPT:

Under business auto coverage, each of the following is true about classifications of covered autos EXCEPT: A.Hired autos includes autos leased, hired, rented or borrowed by the insured B.Mobile equipment is considered to be covered as autos C.The insured may select several different classifications of covered autos D.Any auto is the broadest coverage classifications Answer: B.Mobile equipment is considered to be covered as autos

An employee stealing goods and selling them for a profit would be covered by which policy?

An employee stealing goods and selling them for a profit would be covered by which policy? Answer: Employee dishonesty

Under the business auto coverage form, mobile equipment may:

Under the business auto coverage form, mobile equipment may: Answer: Be covered for liability while being towed

The name of the bailee type coverage that provides legal liability for damage to customers' cars that are left with the insured for service, repair or storage is:

The name of the bailee type coverage that provides legal liability for damage to customers' cars that are left with the insured for service, repair or storage is: Answer: Garagekeepers legal

Under the business auto coverage part of a CPP, liability insurance is extended to cover mobile equipment of the insured while it is being:

Under the business auto coverage part of a CPP, liability insurance is extended to cover mobile equipment of the insured while it is being: Answer: Carried or towed by a covered auto

Business auto may cover liability for all EXCEPT:

Business auto may cover liability for all EXCEPT: A.Hired autos B.Private passenger autos C.Mobile equipment being carried or towed by a covered auto D.Front-end loaders Answer: D.Front-end loaders

On a commercial crime policy, the duties of the insured and the insurer are stated in the:

On a commercial crime policy, the duties of the insured and the insurer are stated in the: Answer: Conditions

On a commercial crime policy, money is defined as all EXCEPT:

On a commercial crime policy, money is defined as all EXCEPT: A.Coins B.Travelers checks C.Evidence of debt D.Currency Answer: C.Evidence of debt

Garage liability coverage is broader than business auto liability coverage because it:

Garage liability coverage is broader than business auto liability coverage because it: Answer: Provides some coverage for premises, products, and completed operations

On a business auto policy (BAP), mobile equipment is:

On a business auto policy (BAP), mobile equipment is: Answer: Covered when carried or towed by a covered auto

Employee dishonesty covers which of the following?

Employee dishonesty covers which of the following? Answer: Employee pilferage

On a CGL, which coverage protects the insured for negligently causing BI or PD?

On a CGL, which coverage protects the insured for negligently causing BI or PD? Answer: Premises liability

On a CGL, the aggregate limit on products and completed operations liability applies:

On a CGL, the aggregate limit on products and completed operations liability applies: Answer: Per policy period

What portion of a CGL would cover a waitress spilling hot soup on a customer that causes burns?

What portion of a CGL would cover a waitress spilling hot soup on a customer that causes burns? Answer: Products and completed operations

If you are a contractor and kids are playing at your jobsite after hours and are injured, which portion of your CGL would apply?

If you are a contractor and kids are playing at your jobsite after hours and are injured, which portion of your CGL would apply? Answer: Premises and operations liability

On a claims made CGL policy, the claims made language applies to which parts of the policy?

On a claims made CGL policy, the claims made language applies to which parts of the policy? Answer: BI, PD, personal and advertising injury liability

On a CGL, the supplemental extended reporting period:

On a CGL, the supplemental extended reporting period: Answer: Must be added by endorsement

A claims made policy requires that:

A claims made policy requires that: Answer: The claim occur and be turned in prior to expiration

On a claims made CGL, the supplemental extended reporting period:

On a claims made CGL, the supplemental extended reporting period: Answer: Costs extra and must be added by endorsement

If a store owner hires a janitorial service to clean the floors and a customer slips and falls on the wet floors and sues the store owner, which portion of the store owner's CGL would apply?

If a store owner hires a janitorial service to clean the floors and a customer slips and falls on the wet floors and sues the store owner, which portion of the store owner's CGL would apply? Answer: Premises and operations liability

If you purchase the optional supplemental ERP on a claims made CGL policy, the general aggregate policy limits on the supplemental ERP will be

If you purchase the optional supplemental ERP on a claims made CGL policy, the general aggregate policy limits on the supplemental ERP will be Answer: The same as on the prior policy, except aggregates are reinstated for claims first received during the supplemental ERP

On a CGL, coverage for premises and operations liability:

On a CGL, coverage for premises and operations liability: Answer: Is automatically covered

On a CGL written on an occurrence basis, bodily injury to others is covered if it occurs:

On a CGL written on an occurrence basis, bodily injury to others is covered if it occurs: Answer: During the policy period

If you want your CGL policy to cover you in the event your employee injures someone while driving his own car on your company business, you should purchase:

If you want your CGL policy to cover you in the event your employee injures someone while driving his own car on your company business, you should purchase: Answer: Employer's non-owned auto

Claims made language in a CGL applies to which coverages?

Claims made language in a CGL applies to which coverages? Answer: BI and PD and Personal injury and advertising liability coverages

The most significant difference between the claims made and the occurrence forms of a general liability policy is:

The most significant difference between the claims made and the occurrence forms of a general liability policy is: Answer: What triggers the insurance coverage

Supplementary payments covered by a CGL would include which of the following?

Supplementary payments covered by a CGL would include which of the following? A.$10,000 toward attorney's fees B.BI and PD related to products C.Loss of earnings, up to $200 a day, if the insurer requires the insured to attend a hearing D.The cost of an appeal bond Answer: D.The cost of an appeal bond

The definition of an insured's product under a CGL does not include which of the following?

The definition of an insured's product under a CGL does not include which of the following? A.Containers furnished in connection with the product B.Any goods or products manufactured by the insured C.Warranties made with respect to the fitness or quality of the product D.Vending machines rented to others Answer: D.Vending machines rented to others

All of the following are excluded under a CGL policy EXCEPT:

All of the following are excluded under a CGL policy EXCEPT: A.BI or PD caused by the insured's operation of mobile equipment B.PD to property in the insured's care, custody or control C.An injury to an employee covered by workers' compensation D.Pollution liability Answer: A.BI or PD caused by the insured's operation of mobile equipment

In most situations, the coverage territory for general liability insurance means the territory described in the policy. The described territory includes all of the following EXCEPT:

In most situations, the coverage territory for general liability insurance means the territory described in the policy. The described territory includes all of the following EXCEPT: A.Puerto Rico B.Japan C.Canada D.U.S. territories and possessions Answer: B.Japan

Products and completed operations covers all of the following EXCEPT:

Products and completed operations covers all of the following EXCEPT: A.Cost of defense B.Liability related to PD caused by products you sold C.The cost of a recall D.Liability related to BI caused by products you sold Answer: C.The cost of a recall

On a CGL, advertising injury liability covers all EXCEPT:

On a CGL, advertising injury liability covers all EXCEPT: A.Copyright infringement B.Wrongful eviction C.Infringement of title or slogan D,Misappropriation of advertising ideas Answer: B.Wrongful eviction

All are true about Coverage A, bodily injury and property damage on a CGL EXCEPT:

All are true about Coverage A, bodily injury and property damage on a CGL EXCEPT: A.Supplementary payments are available in addition to limits B.The insurer has a duty to defend lawsuits in addition to limits C.The insurer needs the insured's consent to settle D.Loss must take place in the coverage territory Answer: C.The insurer needs the insured's consent to settle

Which of the following is not excluded under the CGL?

Which of the following is not excluded under the CGL? A.Injury or damage caused by the operation of mobile equipment B.Liability resulting from the accidental escape of pollutants C.Injury covered by workers' compensation D.Property damage to property in the care, custody or control of the insured Answer: A.Injury or damage caused by the operation of mobile equipment

On a CGL, personal injury liability covers all EXCEPT:

On a CGL, personal injury liability covers all EXCEPT: A.Wrongful eviction B.Malicious prosecution C.Copyright infringement D.False arrest Answer: C.Copyright infringement

Which of the following is true concerning policy limits on a CGL?

Which of the following is true concerning policy limits on a CGL? A.Products and completed operations has the same per occurrence limit as premises and operations, but a separate aggregate limit B.The limit for fire damage liability is per person on the declarations C.The medical policy limit on the declarations is per occurrence D.Personal and advertising injury liability has no policy limit on the declarations Answer: A.Products and completed operations has the same per occurrence limit as premises and operations, but a separate aggregate limit

On a professional liability policy written for a doctor, the insurer wants to settle without going to court. Which of the following is true about this situation?

On a professional liability policy written for a doctor, the insurer wants to settle without going to court. Which of the following is true about this situation? A.The insurer can settle however they feel necessary B.They cannot do so without the insured's consent to settle C.The Dr. must allow the insurer to settle D.The insurer is not allowed to settle without going to court Answer: B.They cannot do so without the insured's consent to settle

All of the following are true regarding E&O coverage written for a lawyer EXCEPT:

All of the following are true regarding E&O coverage written for a lawyer EXCEPT: A.Claims for financial damages are covered B.It covers legal liability for negligent acts of the insured C.BI and PD liability is covered D.Fraud or dishonest acts of the insured are not covered Answer: C.BI and PD liability is covered

Under a surety bond, the obligee is the party who:

Under a surety bond, the obligee is the party who: Answer: Will be paid damages if default occurs

A real estate agent gave his client an incorrect price of a home, what policy will cover that?

A real estate agent gave his client an incorrect price of a home, what policy will cover that? Answer: Professional

A broker who sells surplus lines insurance:

A broker who sells surplus lines insurance: Answer: Represents a surplus lines insurer

Which party to a performance bond makes the guarantee?

Which party to a performance bond makes the guarantee? Answer: Surety

What type of a bond guarantees a job will be completed on time per the terms of the contract?

What type of a bond guarantees a job will be completed on time per the terms of the contract? Answer: A performance bond

E&O insurance that includes bodily injury and property damage would be purchased by:

E&O insurance that includes bodily injury and property damage would be purchased by: A.An attorney B.A real-estate broker C.An insurance agent D.An architect or engineer Answer: D.An architect or engineer

All are excluded on a professional liability policy EXCEPT:

All are excluded on a professional liability policy EXCEPT: A.Dishonesty B.Criminal acts C.Fraud D.Negligence Answer: D.Negligence

All of the following are true regarding commercial umbrella policies EXCEPT:

All of the following are true regarding commercial umbrella policies EXCEPT: A.They usually include a retention requirement (like a deductible) B.They may cover things the underlying policies do not cover C.All policy forms are standardized D.They usually have high limits, written on an excess basis Answer: C.All policy forms are standardized

Directors and officers (D&O) liability covers all of the following EXCEPT:

Directors and officers (D&O) liability covers all of the following EXCEPT: A.IRS fine for tax evasion B.Poor investment of corporate assets by treasurer C.Mismanagement by directors D.Failure to protect corporate assets properly Answer: A.IRS fine for tax evasion

Workers' compensation does not cover:

Workers' compensation does not cover: Answer: Punitive damages

All are true regarding workers' compensation coverage EXCEPT:

All are true regarding workers' compensation coverage EXCEPT: A.An injured worker must prove that the employer was negligent B.It is usually required by state law C.It pays regardless of fault DCoverage is statutory Answer: A.An injured worker must prove that the employer was negligent

All are true about workers' compensation EXCEPT:

All are true about workers' compensation EXCEPT: A.Medical benefits are subject to a statutory maximum amount B.Employers seeking to self insure must post a surety bond with the state C.Rates may be classified according to similar risk exposures D.It is excluded by liability insurance policies Answer: A.Medical benefits are subject to a statutory maximum amount

You may purchase workers' compensation from all of the following EXCEPT:

You may purchase workers' compensation from all of the following EXCEPT: A.The state compensation fund B..A stock company C.A mutual company D.A reciprocal insurance exchange Answer: D.A reciprocal insurance exchange

Loss of income benefits on workers' compensation are usually covered to what percentage of gross income?

Loss of income benefits on workers' compensation are usually covered to what percentage of gross income? Answer: 66 2/3

What happens when an employee violates posted safety precautions?

What happens when an employee violates posted safety precautions? Answer: The insurer has to pay all claims regardless

All of the following are true regarding workers' compensation laws EXCEPT:

All of the following are true regarding workers' compensation laws EXCEPT: A.Occupational sickness and accidents are covered B.Coverage varies by state C.The employee may not sue the employer in the event of injury D.Premiums are based on the hazard of the occupation Answer: C.The employee may not sue the employer in the event of injury

For total disability, a workers' compensation policy will pay how much?

For total disability, a workers' compensation policy will pay how much? Answer: 66 2/3% of the injured employee's wages, up to certain maximums.

Workers' compensation employers liability does not cover bodily injury occurring in:

Workers' compensation employers liability does not cover bodily injury occurring in: Answer: Mexico

Generally, an employer is required by state law to carry workers' compensation insurance if it has _____ or more employees.

Generally, an employer is required by state law to carry workers' compensation insurance if it has _____ or more employees. Answer: 1

If you are injured on the job, workers' compensation will pay up to _____ of average weekly wages:

If you are injured on the job, workers' compensation will pay up to _____ of average weekly wages: Answer: 66 2/3%

If a company wants to self-insure for workers' compensation, they must do which of the following?

If a company wants to self-insure for workers' compensation, they must do which of the following? A.Post a bond with Division of Insurance equal to the death benefit on worker's compensation B.Obtain permission from the department of workers' compensation C.Keep sufficient funds for workers' compensation coverage with the Commissioner D.Let their employees know that it is self-insuring Answer: B.Obtain permission from the department of workers' compensation

An employer may usually comply with the workers' compensation law by:

An employer may usually comply with the workers' compensation law by: -Purchasing workers' compensation insurance from the state cpensation fund -Creating a self-insurance fund acceptable to the State Industrial Commission -Purchasing workers' compensation insurance from a private insurer

Workers' compensation medical benefits:

Workers' compensation medical benefits: Answer: Have no dollar or time limit on covered expenses

You have a PAP with limits of UIM of $50/$100. If another negligent party with PAP BI limits of $15/$30 causes you bodily injury in the amount of $40,000, how much can you recover from your UIM coverage?

You have a PAP with limits of UIM of $50/$100. If another negligent party with PAP BI limits of $15/$30 causes you bodily injury in the amount of $40,000, how much can you recover from your UIM coverage? Answer: $25,000

All of these are true regarding medical payments coverage on a PAP EXCEPT:

All of these are true regarding medical payments coverage on a PAP EXCEPT: A.Coverage is for you and your passengers B.Coverage is to others, not you C.It is an optional coverage D.It covers necessary medical and funeral services Answer: B.Coverage is to others, not you

On a PAP, what is the purpose of carrying underinsured motorists coverage?

On a PAP, what is the purpose of carrying underinsured motorists coverage? Answer: It covers your injury in case the negligent party has inadequate BI limits

Liability coverage on a PAP will cover all of the following EXCEPT:

Liability coverage on a PAP will cover all of the following EXCEPT: A.Driving a pickup or van while engaged in the business of farming B.Towing a farm wagon with a 5 ton dump truck C.Your 15 year old daughter driving without a driver's license D.Supplementary payments in addition to limits Answer: B.Towing a farm wagon with a 5 ton dump truck

All of the following are true about transportation expense on a PAP EXCEPT:

All of the following are true about transportation expense on a PAP EXCEPT: A.There is a waiting period before coverage starts B.It applies after total theft of a covered auto C.Coverage applies when the covered auto suffers mechanical breakdown D.Coverage is limited to a daily maximum Answer: C.Coverage applies when the covered auto suffers mechanical breakdown

On a PAP, when you loan your covered auto to another person who also has a PAP covering their own car:

On a PAP, when you loan your covered auto to another person who also has a PAP covering their own car: Answer: Your policy is primary

Medical on a PAP covers all EXCEPT:

Medical on a PAP covers all EXCEPT: A.Reasonable medical and funeral expenses up to specified policy limits B.Loss of income up to specified policy limits C.You and your family members occupying or as a pedestrian stuck by a motor vehicle D.Any other person occupying your covered auto Answer: B.Loss of income up to specified policy limits

All are excluded on a personal auto policy EXCEPT:

All are excluded on a personal auto policy EXCEPT: A.Driving a non-owned auto in an auto-related business B.Driving a temporary substitute auto for regular use C.Your personal property being transported in your car D.Regular use of a non-owned auto Answer: B.Driving a temporary substitute auto for regular use

Your PAP has BI and PD limits of $100,000/$300,000/$100,000. If you negligently injure 1 person, what is the most your policy will pay?

Your PAP has BI and PD limits of $100,000/$300,000/$100,000. If you negligently injure 1 person, what is the most your policy will pay? Answer: $100,000

Personal auto medical claims must be turned in within _____ years of the date of accident:

Personal auto medical claims must be turned in within _____ years of the date of accident: Answer: 3

All are true about a personal auto policy EXCEPT:

All are true about a personal auto policy EXCEPT: A.Supplementary payments are included B.Transportation expenses are covered for a definite amount and time C.The owner's policy is primary D.Cancellation notice must be sent to all insureds Answer: D.Cancellation notice must be sent to all insureds

On a personal auto policy (PAP), when your 16 year old daughter drives your covered auto, which coverages apply?

On a personal auto policy (PAP), when your 16 year old daughter drives your covered auto, which coverages apply? Answer: All coverages

A covered auto on a personal auto policy includes:

A covered auto on a personal auto policy includes: Answer: Small pickup trucks

All of the following are excluded from coverage under a PAP EXCEPT:

All of the following are excluded from coverage under a PAP EXCEPT: A.A farmer who drives his pickup truck around his ranch B.You, when driving a company-owned car permanently assigned to you C.Someone who steals your car and hits a pedestrian with it D.A taxi driver who uses his own car in his business Answer: A.A farmer who drives his pickup truck around his ranch

Under a PAP, which of the following is not defined as a trailer?

Under a PAP, which of the following is not defined as a trailer? A.A vehicle designed to be pulled by a private passenger auto B.A semi-trailer C.A vehicle designed to be pulled by a pickup or van D.A farm wagon or implement while towed by a private passenger auto, pickup or van Answer: B.A semi-trailer

An insured person on a PAP includes all of the following EXCEPT:

An insured person on a PAP includes all of the following EXCEPT: A.The spouse of the named insured B.Anyone using the covered auto with permission of the named insured C.Any family member residing in your household D.A parking lot attendant while parking a covered auto Answer: D.A parking lot attendant while parking a covered auto

You negligently cause an accident resulting in BI and PD to the maximum of your policy limits, which are 30/60/20. If your defense costs in a resulting lawsuit are $8,000, how much will your insurer pay?

You negligently cause an accident resulting in BI and PD to the maximum of your policy limits, which are 30/60/20. If your defense costs in a resulting lawsuit are $8,000, how much will your insurer pay? Answer: $88,000

Uninsured motorist coverage:

Uninsured motorist coverage: Answer: Covers injuries caused by hit-and-run drivers

Under Coverage D, which of the following would be covered under other than collision?

Under Coverage D, which of the following would be covered under other than collision? A.Freezing of engine block B.Mechanical breakdown C.Upset D.Flood Answer: D.Flood

All are true about coverage under a PAP EXCEPT:

All are true about coverage under a PAP EXCEPT: A.There is no coverage in Mexico B.Coverage applies while using your car in a share the expense car pool C.Permanently installed stereo systems are covered D.Medical coverage applies to others, not the named insured Answer: D.Medical coverage applies to others, not the named insured

You hit a bird, cracking your windshield. Which auto coverage applies?

You hit a bird, cracking your windshield. Which auto coverage applies? Answer: Other than collision

On a PAP, all of the following are covered by the medical payments section EXCEPT:

On a PAP, all of the following are covered by the medical payments section EXCEPT: A.Passengers riding in the insured's covered auto B.Persons riding in an auto with which the insured has collided C.The named insured or family members when struck as a pedestrian D.The named insured or family members while occupying a motor vehicle Answer: B.Persons riding in an auto with which the insured has collided

Who will have automatic auto coverage?

Who will have automatic auto coverage? A.Your neighbor who's driving your car without permission B.A 22 year old exchange student living with you C.Your 16 year old son living with you D.Your employee Answer: C.Your 16 year old son living with you

All of these are true regarding transportation expenses on a PAP EXCEPT:

All of these are true regarding transportation expenses on a PAP EXCEPT: A.A deductible applies B.There is a maximum amount of coverage per day C.There is a maximum amount of coverage per loss D.Coverage begins 48 hours after the total theft of your covered auto Answer: A.A deductible applies

All are true about a PAP EXCEPT:

All are true about a PAP EXCEPT: A.Medical is a mandatory coverage B.Medical covers you getting in or out of your car C.Medical covers you and your passengers D.Medical is no fault Answer: A.Medical is a mandatory coverage

On a PAP, all of the following are true about uninsured motorist (UM) coverage EXCEPT:

On a PAP, all of the following are true about uninsured motorist (UM) coverage EXCEPT: A.It pays regardless of fault B.A UM claim is turned into the insured's own insurance company C.It covers injuries sustained by an insured when a hit-and-run driver is involved D.It cannot be written for more than the insured's limits for bodily injury liability Answer: A.It pays regardless of fault

To provide auto liability coverage for 2 parties who are not married, but reside in the same household, you should add which endorsement to a PAP?

To provide auto liability coverage for 2 parties who are not married, but reside in the same household, you should add which endorsement to a PAP? Answer: Joint ownership

Besides any vehicle shown on the declarations page, the liability part of your PAP will cover any of the following EXCEPT:

Besides any vehicle shown on the declarations page, the liability part of your PAP will cover any of the following EXCEPT: A.A replacement car or truck you buy during the policy period, even if you do not notify the insurer B.A motor home you buy during the policy period and request the insurer to add to the policy C.An additional car or truck you buy during the policy period and request the insurer to add to the policy D.A temporary substitute vehicle you borrow or rent while your covered auto is out of commission Answer: B.A motor home you buy during the policy period and request the insurer to add to the policy

Your parked auto pops out of gear and rolls into a tree. Which auto coverage applies?

Your parked auto pops out of gear and rolls into a tree. Which auto coverage applies? Answer: Collision

All of these are covered to drive your covered auto on your PAP EXCEPT:

All of these are covered to drive your covered auto on your PAP EXCEPT: A.Your auto mechanic test driving your car B.Your neighbor C.Your friend using your car on a temporary basis D.Your son Answer: A.Your auto mechanic test driving your car

In auto insurance, limits of 50/100/25 mean the insured is covered for:

In auto insurance, limits of 50/100/25 mean the insured is covered for: Answer: $50,000 bodily injury per person, $100,000 bodily injury per occurrence and $25,000 property damage per occurrence

To help customers purchase auto insurance, even if they have bad driving records, most states offer:

To help customers purchase auto insurance, even if they have bad driving records, most states offer: Answer: An Automobile Insurance Plan

Under a PAP, which of the following is considered to be a collision loss?

Under a PAP, which of the following is considered to be a collision loss? A.Another driver dents your fender and drives off B.Children playing ball break the windshield of your parked car C.Another driver sideswipes you as you are getting out of your car D.Your car hits a large animal, crushing the grill and headlights Answer: A.Another driver dents your fender and drives off

On a PAP, which of the following is not covered under other than collision coverage?

On a PAP, which of the following is not covered under other than collision coverage? A.Collision with a deer B.Missiles and falling objects C.Flood D.Theft of a portable car phone Answer: D.Theft of a portable car phone

On a PAP, if your limits of liability are $25,000/$50,000/$25,000, what is the most your insurer will pay out to others as the result of 1 occurrence?

On a PAP, if your limits of liability are $25,000/$50,000/$25,000, what is the most your insurer will pay out to others as the result of 1 occurrence? Answer: $75,000

All may affect the rates charged for auto insurance EXCEPT:

All may affect the rates charged for auto insurance EXCEPT: A.Adding a lien holder B.Replacing your car with a new one C.Adding a young driver to the policy D.Having a chargeable accident Answer: Adding a lien holder

If 15/30/10 represents the minimum auto coverage under the State Financial Responsibility Law, all of the following are true EXCEPT:

If 15/30/10 represents the minimum auto coverage under the State Financial Responsibility Law, all of the following are true EXCEPT: A.If you injured 2 persons, resulting in claims of $10,000 and $20,000 for the same occurrence, the insurer would pay out $30,000 B.The combined single limit equivalent coverage would be $40,000 C.If you carried these minimum limits, your uninsured motorists coverage would also be limited to the matching minimums D.100/300/50 represents excess limits Answer: A.If you injured 2 persons, resulting in claims of $10,000 and $20,000 for the same occurrence, the insurer would pay out $30,000

On a PAP, when one limit is shown for both BI and PD, it is known as a(n):

On a PAP, when one limit is shown for both BI and PD, it is known as a(n): Answer: Combined single limit

On a PAP, a deductible applies to:

On a PAP, a deductible applies to: Answer: Damage to your auto

Under a PAP, which coverage applies to your car if you hit a deer?

Under a PAP, which coverage applies to your car if you hit a deer? Answer: Other than collision

Other than collision coverage on your auto policy covers:

Other than collision coverage on your auto policy covers: Answer: Lightning damage to your auto

Your PAP provides coverage when you are driving outside your own state, but not:

Your PAP provides coverage when you are driving outside your own state, but not: Answer: In Mexico

On a PAP all of the following are supplementary payments EXCEPT:

On a PAP all of the following are supplementary payments EXCEPT: A.Cost of bail bonds up to $250 B.Loss of earnings incurred by attending trials at the insurer's request C.Premiums on appeal bonds posted by the insurer D.Cost of defense Answer: D.Cost of defense