3 - Practice Test Ques Flashcards
Under an Equipment Breakdown Protection policy with $500,000 in coverage, a covered “accident” resulted in the following:
I. $500,000 worth of damage to the property.
II. $10,000 damage to the property of another in the insured’s care.
III. $5,000 in legal fees to defend the insured in this case.
The policy will pay a total of:
$505,000.
$500,000.
$510,000.
$515,000.
$505,000..
The maximum that can be paid is the limit of the policy. Legal expenses are in addition to the limit of coverage
What does an employer’s non-ownership coverage under the BAP cover?
Covers the employer when the employee is using their vehicle on company business.
Covers the employee while using their vehicle on company business.
Covers hired employee autos.
Covers all non-owned vehicles.
Covers the employer when the employee is using their vehicle on company business.
(The purpose of the coverage is to protect the employer and not the employee when the employee uses his or her vehicle on company business and is involved in an at-fault accident that may bring the employer into a claim with the claimant)
Which of the following would be considered a consequential loss under a dwelling policy?
Water damage to a house as a result of a fire.
A tree falling on a roof and a branch breaks a window.
Food spoilage in a freezer as a result of a fire in the house.
Smoke damage to a detached garage as a result of a fire.
Food spoilage in a freezer as a result of a fire in the house..
(Food spoilage resulting from a covered peril cutting off the electricity would be an example of a consequential loss)
n the ocean marine insurance policy, the term “average” means:
Loss or damage.
The ACV of the ship.
The average value of the claim insured against by the perils of the sea .
That coverage is written on a named peril basis.
Loss or Damage!!!
An insured purchases a $1 million umbrella policy with a $1,000 self insured retention (SIR) and agrees to maintain the following underlying limits: auto liability - $100/300/50 and personal liability limits of $300,000. The insured is involved in an at-fault auto accident and the claimant is awarded $200,000 for his bodily injuries. What will the umbrella pay if the insured only carries $50/100/50 auto limits?
$100,000
$200,000
$50,000
Nothing because the insured violated the maintenance of the policy’s underlying provision.
$100,000
(When the insured does not maintain underlying limits as stated in the umbrella policy, the umbrella carrier pays as though those limits were in effect. The insured would have to pay $50,000, the underlying carrier would pay $50,000 and the umbrella carrier would pay the remainder)
What is the percentage that the insured can apply to coverage A of the DP-2 and DP-3 dwelling forms for ordinance or law coverage?
10%.
5%.
20%.
15%.
10%
Under the Personal Auto Form, Uninsured Motorist Coverage is excluded for claims settled without the insurer’s consent only if:
The claim was settled before an investigation could be completed.
The claim was adjusted by an unlicensed adjuster.
The claim settlement prejudiced the insurer’s subrogation rights.
The claim was settled for an amount that was more th
The claim settlement prejudiced the insurer’s subrogation rights.
Aircraft medical payments can be amended by endorsement to include injury to:
The crew.
The general public.
The officers of a corporation.
Non occupants.
The Crew!!!
A person asserting a right to payment under an insurance policy is referred to as:
A first party claimant
A third party claimant
An insurer
An agent
A first party claimant
A partner in a firm authorized to have custody of the insured property outside the premises would be called a:
Messenger.
Custodian.
Guard.
Watchman.
Messenger!!!
(A messenger is one who has custody of the insured’s property outside the premises. An example is a person going to the bank to make a night deposit)
An insured has a BOP and desires to add the endorsement that provides Utility Servises-Direct Damage coverage. What types of property must be listed for coverage to apply?
Overhead transmission lines
Water Supply Services
Wastewater Removal Property
All of the responses are correct
All of the responses are correct
Making false statements regarding anyone in the business of insurance is known as:
Misrepresentation
False Advertising
Defamation
Coercion
Defamation!!!
(Making any false statements regarding the financial status of an insurer or any false statements regarding anyone in the business of insurance is considered defamation)
The standard deductible for each coverage under the “emergency flood program” is:
$2,000
$500
$1,000
$250
$2000
When two or more persons are legally responsible for injuries to another party, collectively, the persons responsible are referred to as:
Co-Culpable
Co-Defendants
Joint Tort-Feasors
Class Action Defendants
Joint Tort-Feasors
An insurance company that permits different rate classifications for individuals of the same class and same hazard may be guilty of:
Unfair discrimination.
Boycotting.
Misrepresentation.
Defamation.
Unfair discrimination.
(Persons in the same underwriting group with equal or the same characteristics must be treated the same for the rating of premiums)
What is the purpose of an installation floater?
To cover property belonging to a contractor or others that is intended to become a part of a structure
To cover property to be installed at the insured’s location
To cover property that has been installed when the contractor has completed the job and the work has been accepted
To cover the insured’s machinery, tools and other equipment used to install property to become a part of a building
To cover property belonging to a contractor or others that is intended to become a part of a structure.
(The policy is used to supplement coverage provided by the commercial property forms. It covers property off an insured’s location and in transit or at the job site awaiting installation or when it has been installed. Coverage ceases when the property has been accepted by the purchaser)
If an insured has a hospital expense policy providing for room and board reimbursement on an “expense incurred” basis with a $245-a-day limit, and the daily rate charged is $230, how much will the insurance company pay?
$230.
$475.
$15.
$245.
$230
A valued policy is
A policy sold for less than the normal premium
What a policy becomes once coverages are confirmed
A guaranteed amount payable if a loss occurs
A policy which provides minimal coverage for a nominal premium
A guaranteed amount payable if a loss occurs
Homeowner policies have “special limits” on all the following losses, EXCEPT:
Fire damage to guns
Theft of coins
Theft of silverware
Theft of furs
Fire damage to guns
Which of the following is true regarding the HO-5 form?
Provides open peril coverage on the buildings and their contents.
Provides open peril coverage on buildings and broad form peril coverage on their contents.
Provides broad form peril coverage on the buildings and their contents.
Provides broad form peril coverage on the
buildings and named peril coverage on their contents.
Provides open peril coverage on the buildings and their contents.
A personal auto policy provides liability coverage on a single limit basis for $100,000. A covered accident caused by Mr. Jones involves a $75,000 liability judgment to Mr. Allen for his injuries and $25,000 liability judgment for his car. In addition, $20,000 in legal bills are incurred defending the insured. The company will pay:
$120,000.
$25,000.
$75,000.
$100,000.
$120,000.
(Legal expenses are in addition to the limit of liability. The single limit covers both bodily injury and property damage liability. Therefore, the policy can pay the $120,000)
The requirement included in a health policy enabling an insured to review an issued policy for a specific period of time, permitting the insured to return that policy for a full refund of the paid premium, if desired, is called:
The free look/right to return provision..
(The free look provision in health insurance, also known as the “right to return” provision, allows for a 10 day review of the issued policy. The exceptions are long-term care insurance, and medicare supplement insurance, whose “free look periods” are 30 days)
Aircraft liability coverage is very similar to auto insurance coverage with the following exception:
Usually written with a deductible
Does not apply to property damage of others
Liability to passengers is treated as a separate exposure
Cannot exclude passenger liability
Liability to passengers is treated as a separate exposure
Coverage E under the farm forms covers which of the following?
Unscheduled personal property
Scheduled personal property
Scheduled real property coverage
Blanket real property coverage
Scheduled personal property
There are two versions of the commercial general liability policy. They are known as:
Claims-made and occurrence.
Claims-made and claims-paid.
Claims-paid and occurrence.
Occurrence and acceptance.
Claims-made and occurrence!!!
Which of the following time periods is ordinary payroll coverage limited to in case of a business income loss under the BOP?
30 days
60 days
90 days
180 days
60 days
To minimize adverse selection in dental plans, a company may do all of the following, EXCEPT:
Choose not to write contributory coverage.
Impose longer probationary periods.
Increase the minimum percent of participation to 80% or 85%.
Eliminate coverage for original participants.
Eliminate coverage for original participants.
Which of the following would be found in a yacht policy?
Cargo belonging to others coverage
Liability coverage
Sails, oars, and ballast
Earth movement
Liability coverage
In New York, automobile insurers are required to offer supplementary uninsured motorists coverage (SUM) but are not required to provide more than a maximum limit of:
$250,000 per person/$500,000 each accident.
$100,000 per person/$300,000 each accident.
$50,000 per person/$100,000 each accident.
$200,000 per person/$500,000 each accident.
$250,000 per person/$500,000 each accident.
The three parties to a contract bond are:
Principal, obligee, surety.
Obligor, principal, surety.
Principal, obligee, employee.
Employee, obligor, principal.
Principal, obligee, surety.
What is required when a company wants to self insure for workers compensation?
A property bond with a financial statement.
Employers liability.
Excess limits workers compensation policy.
A security bond.
A security bond!!!
The personal liability section of the homeowner policy forms covers which of the following?
Bodily injury or property damage caused by the personal activities of an insured.
Damage to an insured’s property caused by a visitor.
Bodily injury to a resident caused by a neighbor’s dog.
Bodily injury or property damage caused by war.
Bodily injury or property damage caused by the personal activities of an insured.
A document that temporarily obligates an insurance company to provide coverage while the issuance of a policy is pending is known as:
A binder.
An application.
An endorsement.
A rider.
A binder.
(A coverage binder provides temporary coverage and will usually include such items as the insured’s name and address, any additional insureds or mortgagees, property description, amount of coverage, effective date of coverage, and identity of the insurer)
Who of the following people would be considered as “family members” under a personal umbrella liability policy?
A parent of the insured who resides in another state
The divorced wife of the insured who no longer resides with the insured
The insured’s father-in-law who lives next door
A foster child who lives with the insured
A foster child who lives with the insured
Nixon Construction Company carries a CGL policy that has a $500,000 per occurrence limit, $1,000,000 general aggregate limit and a per person medical payments limit of $25,000. Employees cause $200,000 property damage and $400,000 bodily injury when persons are injured and property is damaged in connection with a construction project. Two of the employees suffer medical expenses of $15,000 each. How much will the insurer pay on behalf of Nixon Construction?
$500,000
$630,000
$610,000
$600,000
$500,000
(The most the policy can pay is the occurrence limit of $500,000. The employees are not covered under medical payments. They would collect under workers compensation coverage. Remember that the policy cannot pay more than the per occurrence on any one claim. Therefore, in this question the insured would have to pay the remaining $100,000 of this claim because the insurer will only pay $500,000 of this $600,000 claim)
hich of the following would be considered a “supplementary payment” coverage under a business auto policy?
All post-judgment interest in a suit defended by the insurer
Payment for an insured employee’s truck being used by the employee on a business-related trip
Costs for a private investigator hired by an employee to prove he was not involved in a hit and run accident of which he has been accused
Up to $2,000 for the cost of bail bonds for an employee involved in an accident while he was on a trip to Mexico that he won for exceeding sales goals set by the company
All post-judgment interest in a suit defended by the insurer
Which of the following coverages are available in the ISO Equipment Breakdown protection coverage form?
Expediting Expenses
Business Income and Extra Expense or Extra Expense Only
Spoilage Damage
All of the responses are correct
All of the responses are correct
Businessowners policies provide several extensions of coverage without additional premium charge. Which of the following would require an additional premium
Pollution Cleanup and Removal
Earthquake Coverage
Business Income
Seasonal Increase in Contents Coverage
Earth Quake Coverage
Which of the following statements about workers compensation laws is correct?
The scope of coverage is identical in all states
Every state provides “extraterritorial” coverage for residents working in another state
Limited benefits are provided for non-economic damages such as pain and suffering
The benefits provided under the law are typically the exclusive remedy for injured employees
The benefits provided under the law are typically the exclusive remedy for injured employees
Protection and indemnity coverage contained in an ocean marine policy covers:
I. Liability against injuries to seamen.
II. Injury to stevedores, longshoreman and harbor workers.
III. Cargo, if lost or damaged through negligence.
I, II and III.
I and II only.
II and III only.
I and III only.
I, II and III.
A utilization review is used to:
Review hospital bills to help control costs
Help set the amount of fees paid under a surgical schedule
Provide an evaluation regarding hospital admission
Provide a determination regarding surgical procedures
Review hospital bills to help control costs is correct.
(A utilization review deals with medical cost control initiated by the insurer. Billings are reviewed to determine that over billing has not occurred or that proper procedures have been implemented in treating the insured)
The Commercial Building and Personal Property Coverage Form provides five extensions of coverage, but only if:
An 80% or higher coinsurance percentage is shown in the declarations.
They are shown in the declarations and an additional premium is paid.
The coverage for buildings is written on a replacement basis.
All coverages are written on a blanket basis.
An 80% or higher coinsurance percentage is shown in the declarations.
Which of the following would cover a farmer for income protection for his farm crops?
Multi-peril Crop Insurance
Crop Revenue Insurance
Crop-hail Coverage
Farmowners Policy
Crop Revenue Insurance
Crop revenue insurance guarantees a farmer a certain income for his crops
If a person is qualified to receive benefits from the Motor Vehicle Accident Indemnification Corporation and are injured by an owner of a vehicle that can be identified, how many days do they have to file a claim?
90 days
45 days
180 days
120 days
180 days!!!
All of the following are eligible for group long term care insurance, EXCEPT:
A group formed as a cooperative to buy insurance at a discount.
One or more employer or labor organizations for the benefit of the employees.
Any professional, trade or occupational association for the benefit of their bona fide members or retirees.
A trust established or maintained for the benefit of members of a qualifying association.
A group formed as a cooperative to buy insurance at a discount.
(Cooperatives are not considered as a legitimate eligible group for this product. Any group insurance offering must be considered as incidental to the formation of the group)
All of the following statements regarding the Motor Carrier Act of 1980 are correct, except:
It requires truckers to certify that they are able to meet financial obligations arising from physical damages of their trucking operations.
It requires truckers to certify that they are able to meet financial obligations arising from liabilities of their trucking operations.
Commercial Inland Marine Motor Truck Cargo insurance is used to cover the liability for hauled cargo.
The MCS-90 endorsement must be attached to a truckers policy to show that insurance is being used as proof of financial responsibility.
It requires truckers to certify that they are able to meet financial obligations arising from physical damages of their trucking operations. .
(The Motor Carrier Act applies to liability only. The MCS-90 form is used to indicate that the vehicle in question has coverage including pollution liability for specifies limits being defined by what is being hauled)
A person may be negligent if he or she:
Fails to do what a reasonable and prudent person would do.
Injures another person even though he acted prudently.
Commits a deliberate act that injures another.
Hires someone to damage another’s property.
Fails to do what a reasonable and prudent person would do.
Under farm liability coverage, which of the following would be covered?
Aircraft spraying
Pollution
Products liability for the insured’s products
Injury to a farm employee
Products liability for the insured’s products
Under a business owners policy, the hired–non owner auto coverage would apply to:
The employer uses his/her for personal use
Vehicles borrowed by the insured
The employee uses their vehicle on personal business
Covers the owner of a hire or non-owned vehicle
Vehicles Borrowed by the Insured!!!
What is one of the purposes of the New York Compensation Rating Board (CIRB)?
To pay workers compensation injuries.
To set standards and rules of conduct for the payment of workers compensation claims.
To determine the extent of the injuries for payment of benefits.
Collect data and develop workers compensation rates.
Collect data and develop workers compensation rates.
Secondary injury funds (also known as second or subsequent injury funds) are a part of most states’ workers compensation laws. Which of the following most closely identifies their purpose?
All employees in the state
All employers within the state
All employers which have had two or more workers compensation claims in the past year
All or some insurers in the state, depending on the state’s law
All or some insurers in the state, depending on the state’s law.
Jack is helping a friend move a pool table when he strains his back, causing a disability. The insurer declines his claim because the injury is not considered accidental under the terms of Jack’s policy. Jack’s policy must include;
an accidental bodily injury definition of an accident.
an accidental means definition of an accident.
a confining definition of an accident.
a nonconfining definition of an accident.
an accidental bodily injury definition of an accident.
The workers compensation policy language is written by the:
The Insurance Service Office (ISO)
National Council on Compensation Insurance (NCCI)
Insurance Institute of America (IIA)
Surety Association of America (SAA)
National Council on Compensation Insurance (NCCI)
(Although ISO is involved with the makeup of property and casualty policies, the NCCI is the developer of the workers compensation forms)
The BOP has limitations on the square footage in regard to eligible risks. What is the maximum square footage a building can contain and still be eligible for the policy?
15,000 square feet
20,000 square feet
35,000 square feet
30,000 square feet
35,000 square feet!!!
The named insured is an auto dealer with a single insured location. Physical damage coverage under the insured’s garage policy is written on a reporting basis. On the date of the insured’s last report, the value of covered autos at the insured’s location was $400,000; the insured’s report on that date showed values of $300,000. A covered loss occurs, with damage totaling $80,000. How much of this loss will the garage insurer pay?
$80,000
$60,000
$40,000
$0
$60,000!!!
(The insured will suffer a penalty equal to the percentage of the under reporting of the inventory bears to the actual inventory. The insured reported 25% less than the actual inventory and would be paid $60,000 instead of the $80,000 loss)
What is the limit that will be paid for the fire department service charge in the BOP form?
$1,500
$2,000
$2,500
$3,000
$2,500!!!
Which of the following are also insureds in connection with conducting the insured’s business under a commercial umbrella policy?
Employees in connection with bodily injury to third parties
Employees in connection with bodily injury to another employee
Employees participating in a recreational athletic event not sponsored by the employer
None of the responses are correct
Employees in connection with bodily injury to third parties !!!
(Employees are covered for third party legal actions as a result of a work related accident caused by the employee)
You are at home having your roof repaired. An employee of the roofing company needs to go to the hardware store to purchase supplies. Your car is blocking the driveway so you allow him to use your car to go to the store. While driving your car, he is at-fault in an auto accident. Your insurance policy will protect:
All of the parties would be protected by your policy.
Only you the insured will be protected.
Only the employee will be protected.
Both you and the insured will be protected.
All of the parties would be protected by your policy!
(Under liability coverage the definition includes “any person” using “your covered auto.” This would therefore provide coverage for the worker. The insured is covered for the ownership of the auto. The policy also provides coverage “for any person or organization with respect to legal responsibility for acts or omissions of a person for who coverage is afforded.” This would provide coverage for the employer for the actions of the employee as the actions relate to his employment)
In New York, property damage to a rental car is paid under which of the following automobile coverage?
The insured’s property damage coverage.
The insured’s physical damage coverage.
By the attachment of a special endorsement.
Coverage can only be purchased and provided by the rental car company.
The insured’s property damage coverage!!!
Which of the following health insurance provisions applies one deductible to a single accident injuring more than one insured of a policy?
Common Accident Provision.
Carry-Over Provision.
Facility of Payment Provision.
Common Disaster Clause.
Common Accident Provision!!!
(A common accident provision is usually found in major medical policies and is applied when more than one covered family member sustains injuries involving the same accident)
Which of the following would not be covered under the specified cause of loss physical damage coverage under the commercial auto form?
Flood
Glass breakage.
Fire
Glass Breakage!!!
(The specified cause of loss form covers the following perils: fire, lighting, explosion, theft, windstorm, hail, earthquake, flood, vandalism or mischief, transportation by a conveyance. The coverage does not include glass breakage, hitting a bird or animal nor falling objects or missiles)
The full replacement cost of an insured building does not include the value of any:
Attached garage
Underground pipes
Room addition
Basement
Underground pipes!!!
A risk where both profit and loss are possible is known as:
Speculative.
Fundamental.
Pure.
Dynamic.
Speculative!!!
Which of the following is not a common way dental insurance programs work to minimize adverse selection?
Increasing the maximum annual benefit to encourage the insured to maintain dental health for the long term.
Lowering the coinsurance percentage for optional expenses.
Basing the benefit on the least costly treatment option.
Graduating the coinsurance percentage to increase each plan year.
Increasing the maximum annual benefit to encourage the insured to maintain dental health for the long term.
The loss assessment additional coverage under Section II of the homeowner forms will pay for loss:
To the association of property owners
To the corporation of property owners
Due to the liability of the insured
All of the responses are correct
All of the responses are correct
What is the standard personal liability limit under Coverage E of homeowner policies?
$100,000 per occurrence
The same as the Coverage F limit
$1,000 per occurrence
$1,000,000
$100,000 per occurrence!!!
(Coverage E – $100,000
Coverage F - Medical Payments to Others has
a limit of $1,000 per accident per
person)
Since the parties to an insurance policy rely on the honesty of the other, an insurance contract is considered to be based on:
Aleatory principles.
Utmost good faith.
Utmost good faith.
Both parties must deal in good faith and rely on the honesty of each other
Which of the following losses would not be covered under physical damage specified causes of loss coverage of the trucker’s policy?
Assume that each loss is to a covered auto.
Damage to the auto’s engine form overheating after vandals drained the coolant.
Loss caused when a train carrying the auto collided with another train.
Theft of the auto.
Collision with a bird or animal.
Collision with a bird or animal.
(The specified cause of loss coverage is written in lieu of comprehensive coverage and provides limited peril coverage. Collision with a bird or animal is not a covered cause of loss peril)
Which of the following coverages may be added by endorsement to an Equipment Breakdown Policy?
Business Income
Expediting Expenses
Property Damage Liability
Damage to property of the insured
Business Income!!!
Which of the following is not needed for rating the premium in the BOP?
Square foot area
Gross sales
Protection class
Rate group
Square foot area!!!
Each of the following is true about work-related injury cases which fall outside the scope of the workers compensation law, EXCEPT:
The employer cannot be held liable for such injuries.
Common law defenses are retained by the employer.
Damages may be paid if negligence or legal liability is established.
Pain and suffering damages may be awarded in a court of law.
The employer cannot be held liable for such injuries.
How are workers compensation benefits determined for an injured employee in New York?
Federal guidelines.
National council on Compensation Insurance.
National Association of Insurance Commissioners.
State statutes.
State statutes!!!
Which of the following is the type of report indicating the initial results of a claim investigation?
Full Report.
Interim Report
Field Report.
Initial Report.
Field report!!!
(The field report represents the initial findings of the claim investigation.
This includes details of the loss, damages, and statements of the insured, witnesses and other pertinent information)
Which of the following is not considered an instrumentality of transportation or communication under the nationwide inland marine definition?
A toll bridge
A truck-tractor
Electric transmission lines
A television transmitter
A truck-tractor!!!
(A truck-tractor is not considered an instrumentality of transportation or communication under the nationwide inland marine definition)
An earthquake and landslide has occurred and soon after a house insured on an unendorsed HO 3 is damaged by fire and then an explosion. What would be covered in this scenario?
The claim would be excluded due to concurrent causation.
The insured would need the earthquake endorsement to be covered for any of this damage.
Only the explosion damage would be covered.
Only the resulting fire and explosion damage would be covered.
Only the resulting fire and explosion damage would be covered!!!
A non-waiver agreement would allow the insurance company to do which of the following?
Hire an attorney to protect its rights
Decline to investigate the claim due to policy exclusions
Investigate the loss without verifying that the loss is covered
Hire a public adjuster to provide a second opinion
Investigate the loss without verifying that the loss is covered!!!
Convenience stores selling gasoline must have a minimum of ______ square feet in total floor area in order to qualify for the BOP?
2,500
3,500
4,000
3,000
3,000!!!
The Personal Auto Policy, under Supplementary Payments:
Will pay the insured up to $200 per day for loss of earnings due to testifying at a trial
concerning an accident caused by the insured
Will not pay for loss of earnings while testifying at a trial
Will pay the insured $100 per day for loss of earnings while testifying at trial
None of the responses are correct.
Will pay the insured up to $200 per day for loss of earnings due to testifying at a trial
concerning an accident caused by the insured!
A valid contract must contain all of the following, EXCEPT:
Be a written instrument.
Competent parties.
Legal purpose.
Valuable consideration.
Be a written instrument!!!
The insured is covered under a BOP for $200,000 on his building. The risk is completely destroyed by fire. It will cost $225,000 to replace the building. The cost to remove the debris is $25,000. How much, if any, will the company pay for this loss?
$200,000
$225,000
$210,000
$190,000
$225,000!!!
(The company will pay the $200,000 plus another $25,000 for the debris removal. The policy provides an extra limit of $25,000 where the cost to rebuild or replace the building exhausts the limits of coverage)
The liability coverage on the BOP would provide coverage for which of the following?
Injury or damage caused by the operation of mobile equipment
An injury that is also covered by Workers Compensation Law
Liability that is caused by the operation of a business auto
Liability resulting from the accidental escape of pollutants
Injury or damage caused by the operation of mobile equipment.
(Injury or property damage to others caused by the operation of mobile equipment on the insured’s premises such as a forklift would be covered by the BOP policy. The other three answers are all specifically excluded)
If both the Condominium Association form and the Condominium Unit-Owner form cover the same property, how would a covered loss be handled?
Each policy will pay Pro-rata
The Association policy will be excess over the Unit-Owners
Each policy will share equally in the loss
The Unit-Owners policy will be excess over the Association policy
The Unit-Owners policy will be excess over the Association policy!!!
Personal Injury Protection does not apply if the insured is injured while occupying a motorcycle. Which of the following endorsements can be added to provide this coverage?
PP 05 89 for personal auto insurance
CA 22 48 for commercial auto insurance
Neither answer choice is correct
Both answer choices are correct
PP 05 89 for personal auto insurance
Dependent children of a worker killed on the job will receive income benefits:
Until age 18 or longer if still in an accredited school.
For 5 years following the death.
Until age 18.
Until age 21.
Until age 18 or longer if still in an accredited school.
All of the following make a property insurance policy an indemnity contract, EXCEPT:
Liberalization.
Insurable interest.
Actual cash value.
Subrogation.
Liberalization.
The Uniform Policy Provisions law requires “notice of claim” to be made by the policyholder to the insurer or its agent within:
20 days of a loss, or as soon as reasonably possible.
30 days of a loss, or as soon as reasonably possible.
60 days of a loss, or as soon as reasonably possible.
90 days of a loss, or as soon as reasonably possible.
20 days of a loss, or as soon as reasonably possible.
The additional coverage for Debris Removal will now pay to clean up the debris of others on the insured premises even if the insured has no damage to their own property. The maximum payable to remove this debris of others is:
$25,000
$5,000
$10,000
$50,000
$5000
Which of the following would NOT be considered mobile equipment under the business auto policy?
Bulldozers
Vehicles used solely on the farm premises
Front end loaders
Vehicles where snow plows are permanently mounted to remove snow on the premises
Vehicles where snow plows are permanently mounted to remove snow on the premises!!!
(A tractor could be a vehicle used solely on the farm premises and therefore a piece of mobile equipment. A vehicle that has snow plow equipment permanently mounted such as a pickup or dump truck could still be used on the public roads as a method of transportation)
When someone dies without a will, their assets will be handled by a court appointed:
Arbitrator.
Executor.
Testator.
Administrator.
Administrator!!
(When an individual dies intestate, he or she left no will. An intestate death requires a person be appointed by the court to administer the estate and also requires that this administrator secure an administrator’s bond)
Which of the following is not an implied warranty under an ocean marine policy?
Seaworthiness of the vessel
Protection and indemnity.
Protection and indemnity is a form of ocean marine liability coverage and is not an implied warranty.
PROTECTION and INDEMNITY!!!
Protection and indemnity is a form of ocean marine liability coverage and is not an implied warranty
Telemarketers who transmit pre-recorded messages to consumers who have not agreed to accept such messages will be fined up to:
$10,000 aggregate.
$10,000 per call.
$16,000 per call.
$16,000 aggregate.
$16,000 per call!!!
(Sellers and telemarketers who transmit prerecorded messages to consumers who have not agreed in writing to accept such messages will face penalties of up to $16,000 per call)
