Casualty Flashcards
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
Damage to a rented garage
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
Pickup truck used in a lawn services business
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?
$700
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
Someone falls in the store and is injured
Commercial General Liability has what TWO forms?
Claims Made and Occurrence
Product liability would include:
-poor product design
-improper assembly at the plant
-defective parts
-all of the above
All of the above
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
Postal worker on premises
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?
$500,000
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
Product
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
Lawn Services
An insurer canceling a policy for NON-PAYMENT of premium must mail notification of cancellation within how many days of cancellation?
10 days
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
An officer of an insured corporation, while action on behalf of the corporation
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
It provides coverage due to impact and upset for the covered vehicle
All of the following come under the definition of Personal Vehicles EXCEPT:
-Private passenger auto
-Van
-Pickup
-Tractor Trailer
Tractor Trailer
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:
A temporary substitute auto
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?
$56,375
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
D: Company A $0
Company B: $150,000
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?
$500,000
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
It always provides coverage for damage to the insured’s vehicle
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.
An insurer can terminate, cancel, or refuse to renew a policy due to the termination of a company’s contract with the producer
A cancellation provision setting out the manner in which policies may be cancelled must be included in all policies EXCEPT:
Ocean Marine
Which of the following are NOT excepted from having to have a license to finance insurance premiums?
-Insurance companies
-Finance
-Banks
- Credit Unions
Finance is NOT exempt
An insurance producer is considered to be financing insurance premiums if?
10% or more of the producer’s total premium accounts receivable are more than 90 days past due
What statement defines “Bodily Injury?”
Protects the insured against legal liability for injury, death or illness
