app studying

Question 1

In insurance, an offer is usually made when

Answer 1

The application is submitted.

Question 2

A bond is written for a set limit, and the surety will be liable only for this amount. The limit is known as the

Answer 2

Penalty.

Question 3

Dwelling policy Coverage C - Personal Property will cover all of the following EXCEPT

Answer 3

Animals and birds.

Question 4

Elaborate homes with replacement costs greater than ACV or market value are insurance on the

Answer 4

HO-8 Form

Question 5

Within the first 60 days of coverage under the dwelling policy form, how much notice is required for policy cancelation?

Answer 5

10 days.

Question 6

This peril is covered under both the Basic and Broad forms in dwelling policies.

Answer 6

Internal Explosion

Question 7

The occurence form trigger is based on what?

Answer 7

The date when the loss occurs.

Question 8

Who is covered by an HO-4 policy?

Answer 8

Tenants

Question 9

What is the maximum number of roomers or boarders for properties insured under the dwelling policy?

Answer 9

5

Question 10

A liability policy has split limits of 25/50/30. What is the maximum amount payable for damage to a person’s property?

Answer 10

$30,000

Question 11

Conditions such as lifestyle and health status, or activities such as scuba diving which may increase the chance of a loss occurring.

Answer 11

Hazards.

Question 12

An agent offers his clienbt free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of

Answer 12

Rebating.

Question 13

What is the oldest known type of insurance?

Answer 13

Ocean marine.

Question 14

When a vehicle travels from one state to another. what happens to the limits of policy liability in a personal auto policy?

Answer 14

They do not change.

Question 15

Which commercial property form is used to insure buildings while under construction?

Answer 15

Builders risk.

Question 16

What type of bond guarantees that the principal will complete the contract as agreed upon?

Answer 16

Performance Bond.

Question 17

What is the main distinction between a hire auto and a nonowned auto?

Answer 17

Who owns the auto.

Question 18

What type of coverage is Coverage E in homeowners policies?

Answer 18

Personal Liability.

Question 19

How is the premium paid for the businessowners policy?

Answer 19

One indivisible premium.

Question 20

What will be found in the Declarations page of the commercial property policy?

Answer 20

Description of the property insured.

The Declarations page provides the information as to who, what, when, where, and how much.

Question 21

The voluntary compensation endorsement in workers compensation coverage provides statutory coverage for which type of employee?

Answer 21

Employees who do not fall under a state’s workers compensation act, such as farmworkers.

Question 22

A policy that provides coverage for an injury or damage only if it is first reported during the policy period is called

Answer 22

Claims-made form.

Question 23

The transfer of a legal right or interest in an insurance policy is called

Answer 23

Assignment.

Question 24

The businessowners policy (BOP) extension coverage form for personal property off premises is limited to

Answer 24

$10,000.

Question 25

An insured building has had no residents for 10 years and it is empty of personal belongings. From an insurance standpoint, the building is

Answer 25

vacant.

Question 26

To be eligible for businessowners policy (BOP) coverage, an office building CANNOT be higher than

Answer 26

6 stories.

Question 27

What is something of value transferred between two parties to form a legal contract?

Answer 27

Consideration

Question 28

When would a misrepresentation on the insurance application be considered fraud?

Answer 28

If it is intentional and material.

Question 29

For the purposes of insurance, risk is defined as

Answer 29

The chance of loss.

Question 30

When doing business in this state an insurance company that is formed under the laws of another state is classified as what type of insurer?

Answer 30

Foreign.

Question 31

In the split limit coverage in personal auto policies, which limit indicates the maximum amount the policy will pay for bodily injury per person?

Answer 31

1st limit

Question 32

In which of the sections of a commercial auto policy will the insured find specific information about the policy period?

Answer 32

Conditions.

Question 33

Items of property that would be difficult to appraise after a loss are best insured with

Answer 33

Stated-Amount Insurance.

Question 34

What is the deductible of a personal liability umbrella policy called?

Answer 34

SIR (The Self-Insured Retention)

Question 35

Peril is most easily defined as

Answer 35

The cause of loss insured against.

Question 36

To be considered an insurable risk, a loss may NOT be

Answer 36

Catastrophic.

Question 37

Which dwelling coverages would pay replacement cost for the dwelling?

Answer 37

DP-2 and DP-3

Question 38

Fair Rental Value coverage in the dwelling policy is similar to which homeowners policy form?

Answer 38

Loss of Use.

Question 39

In a personal auto policy, which of the following describes coverage for uninsured motorist?

Answer 39

Part C

Question 40

Section 1 of a Businessowners policy pertains to what type of coverage?

Answer 40

Property.

Question 41

Professional liability coverage protects the insured against legal liability resulting from

Answer 41

Errors and omissions.