Casualty

Question 1

Insured’s personal AUTO policy would cover which of the following:
-damage to the insured’s property
-damage to a rented garage
-damage to personal property in the auto at time of accident
-damage caused by intentional actions of the insured

Answer 1

Damage to a rented garage

Question 2

Which of the following vehicles would NOT be covered by a personal auto policy?
-non-owned vehicle provided by others
-pickup truck used in a lawn services business
-newly acquired vehicle
-a van rented for a vacation trip

Answer 2

Pickup truck used in a lawn services business

Question 3

Under a Personal Articles floater, the policyowner has insured a pair of dueling pistols for $1000. One of the pistols is destroyed in a covered loss. The remaining pistol is worth $300. What will the insurance company pay if the client keeps the remaining pistol?

Answer 3

$700

Question 4

Premise and operation coverage provides coverage WHEN:
-someone falls in the store and is injured
-product is defective
-Someone has an advertising injury
-None of the above

Answer 4

Someone falls in the store and is injured

Question 5

Commercial General Liability has what TWO forms?

Answer 5

Claims Made and Occurrence

Question 6

Product liability would include:
-poor product design
-improper assembly at the plant
-defective parts
-all of the above

Answer 6

All of the above

Question 7

Which of the following would NOT be considered an employee for liability?
-Spouse of insured
-Workers of insured
-Postal worker on premises
- Independent contractor hired by the insured

Answer 7

Postal worker on premises

Question 8

A Commercial General Liability policy has an aggregate limit of $750,000 and a per occurrence limit of $200,000. There are two claims filed, one for $150,000 and the other for $100,000.
How much of the aggregate is left?

Answer 8

$500,000

Question 9

Which of the following exposures apply to property damage away from the insured’s location and at the customer’s home when the TV is the source of fire in the home?
-premise and operations
-product
-completions
- contingent liability

Answer 9

Product

Question 10

Which of the following businesses would be eligible for a Business Owners Policy (BOP)?
-Night club
-Auto repair Shop
-Lawn services business
- A commercial building with annual rents of $4,000,000

Answer 10

Lawn Services

Question 11

An insurer canceling a policy for NON-PAYMENT of premium must mail notification of cancellation within how many days of cancellation?

Answer 11

10 days

Question 12

Which of the following individuals would be considered an insured under a Commercial General Liability policy?
-The named insured’s spouse, while engaged in non-business pursuits
- Those persons whose names specifically appear on the policy DEC pages
-Employees of an insured corporation driving their own cars on vacation
- An officer of an insured corporation, while acting on behalf of the corporation

Answer 12

An officer of an insured corporation, while action on behalf of the corporation

Question 13

All of the following statements about Comprehensive are true EXCEPT:
-It is an “ALL RISK” coverage for the covered vehicle
- it provides coverage due to impact and upset for the covered vehicle
- It is written on actual cash value or stated dollar amount
-It is usually written with a deductible

Answer 13

It provides coverage due to impact and upset for the covered vehicle

Question 14

All of the following come under the definition of Personal Vehicles EXCEPT:
-Private passenger auto
-Van
-Pickup
-Tractor Trailer

Answer 14

Tractor Trailer

Question 15

Ken’s car is in the shop for repairs, and he rents a car while repairs are being made. This substitute car is referred to as:

Answer 15

A temporary substitute auto

Question 16

Ken has an automobile policy with a combined single limit of $50,000. He has an “at fault” accident
and incurs the following expenses:

$30,000 Bodily Injury to persons in the other car
$30,000 Property Damage to the other car
$ 5,000 Damage to a traffic light
$ 6,000 Attorney’s fees
$ 300 Premium for an appeal bon
$ 75 for a bail bond for related traffic violations

What is the maximum amount his insurer will pay?

Answer 16

$56,375

Question 17

Charles carries an automobile policy with Company A with a single liability amount of $50,000. He
borrows his neighbor’s car, which has a policy with Company B with a single limit of liability in the
amount of $150,000. He is involved in an accident that was his fault in which judgement of $150,000
was rendered against him. The loss will be paid in which of the following ways?

Company A Company B
a. $50,000 $100,000
b. $25,000 $125,000
c. $75,000 $ 75,000
d. $0 $150,000

Answer 17

D: Company A $0
Company B: $150,000

Question 18

Teri has an automobile policy with a combined single limit of $500,000. She has an accident
involving two other cars, and she is at fault. The court awards the following:
Claimant #1 $300,000 Bodily Injury/$25,000 Property Damage
Claimant #2 $200,000 Bodily Injury/$24,000 Property Damage

How much will Teri’s insurer pay?

Answer 18

$500,000

Question 19

Which of the following statements regarding Uninsured Motorist is UNTRUE:
-It provides coverage for the insured and passengers in the insured’s car
-If hit as a pedestrian, there is coverage
- It is usually written for the same amount as the liability
- It always provides coverage for damage to the insured’s vehicle

Answer 19

It always provides coverage for damage to the insured’s vehicle

Question 20

Which of the following statements is UNTRUE regarding termination of a producer’s contract with an insurer?
- An insurer can terminate, cancel, or refuse to renew a policy due to the termination of a company’s contract with the producer

• If an insurer terminates a contract with a producer, a 180-day termination notice must be sent to the producer
• During the 180 days, a terminated producer cannot write or bind new business on behalf of the terminating insurer

-The terminating company must, following the date of termination, renew all policies written by the producer for 1 policy
term providing the policy meets the insured’s underwriting requirement.

Answer 20

An insurer can terminate, cancel, or refuse to renew a policy due to the termination of a company’s contract with the producer

Question 21

A cancellation provision setting out the manner in which policies may be cancelled must be included in all policies EXCEPT:

Answer 21

Ocean Marine

Question 22

Which of the following are NOT excepted from having to have a license to finance insurance premiums?
-Insurance companies
-Finance
-Banks
- Credit Unions

Answer 22

Finance is NOT exempt

Question 23

An insurance producer is considered to be financing insurance premiums if?

Answer 23

10% or more of the producer’s total premium accounts receivable are more than 90 days past due

Question 24

What statement defines “Bodily Injury?”

Answer 24

Protects the insured against legal liability for injury, death or illness

Question 25

Medical payments are designed to cover what?

Answer 25

Medical expenses for passengers in the insured’s car

Question 26

Physical damage applies to all of the following except:
- property damage losses to the covered vehicle
- damage to the covered vehicle due to upset or impact with another vehicle or object
-a broken windshield on the covered vehicle
-bodily injury sustained by a passenger in the insured’s vehicle

Answer 26

Bodily injury sustained by a passenger in the insured’s vehicle

Question 27

Someone breaks down the door to a store and steals merchandise. This relates to the loss of:

Answer 27

Burglary

Question 28

How long can a license be suspended for?

Answer 28

2 years

Question 29

How long can a license be revoked for?

Answer 29

3 years

Question 30

What is true regarding the Illinois Guaranty Fund?

Answer 30

-Maximum covered claim is $500,000
- It can investigate claims
-It can assess companies to help finance the fund

Question 31

How many hours of classroom training are required for casualty pr-licensing?

Answer 31

7 1/2 hours

Question 32

How many “classroom” hours of ethics are required to renewing an insurance producer’s license?

Answer 32

3 hours