Direct Test Questions Flashcards
What is covered on an Agreed Value Basis?
Things that are standard. Like a stereo system not things like a rare collection of books or jewelry.
If a company can not afford to stop working what is the best coverage for it?
Extra Expense Coverage
A suit brought on by a competitor for Libel is covered by what?
Business Owners Liability coverage.
The insured has less than 80% of the replacement insurance for a business owners policy. How will the loss be settled?
The loss will be paid on either an actual cash value basis or a proportionate basis which ever is greater
What does a difference in conditions contract cover?
It covers things in a property policy that is normally excluded but does not cover things that have already been covered by the property policy
Limits of Liability are found in which section of the insurance policy?
The declarations page.
Can a farm house be covered under a dwelling policy?
No.
What is implied authority?
Authority given without writing or professional documentation
What is Subrogation?
The state which allows the insurance company to go after and collect form a negligent third party.
The assigned risk pool provides insurance to employers who have been rejected by how man insurers?
Two
Who could make an errors and omissions claim against an insurance agent?
Companies and agents the insured represents.
If a customer knowingly recieves any type of rebate for purchasing insurance they can be fined for up to how much?
$1,000.00
An insurance company can measure its underwriting profit by
The loss ration
What is Arbitration?
A form to settle a dispute between the insurer and insured by having a non bias third party look at the situation.
Vacant Means.
An empty building that is currently not being used.
An agent can not earn more than
50% Commission in a calender year
Personal property of the premise are covered up to
10% Worldwide
If someone buys a new car does their insurance cover it?
Yes it does and starts on the date the vehicle is purchased
The personal property replacement cost or endorsement does what?
Changes the replacement of things form ACV to a replacement cost
Under a business income coverage form business income is
Net income plus continuing expenses, including payrole.
Longshoremen Insurance is part of what type of insurance?
Workers compensation.
If a contractor has coverage does it cover the employees of a subcontractor?
Yes
Is out door furniture covered by the commercial package policy?
Yes anything used to service the building is covered
Does the commercial property policy broad form cover earth movement?
No
What is the purpose of the second injury fund?
To provide a source of funds for persons who have been injured and otherwise might be unemployable.
What does coverage C off the HO policy cover?
This covers personal property under and personal property that may be located at a secondary location.
What is the standard mortgage clause?
A policy provision noting that nay loss payment will be payable to the mortgage or lein holder as its finacncial interest may appear and that the mortage holders right of recovery will not be defeated by any aco of ingligence of the insured.
Under the NM Workers Comp Act if you receive partial compensation how much of your pay check?
What you made before minus what you make now times 2/3.
Is a performance bond a contract bond?
Yes.
What is an experience modification factor?
It is applied as a method orf rewarding those employers with better than average loss experience and penalizing those with poorer experience.
Insurance companies writing private passenger automobile insurance in New Mexico must provide a minium premium discount of what percentage to comprehensive coverage for motor vehicles with passive antitheft devices?
10%
Commerical general liablity policies move with the location of the business. true or false?
True. Coverage is automatic until the end of the policy term.
Under the NM Work Comp Act how long can an employ recieve funds for a disablity resulting form an injuring at work to any body part?
200 weeks or a little less than four years
If someone is not happy with the admin of the FAIR plan they must appeal to the superintented within..
30 days
If someone buys a $20,000 personal articles floater how much Jewelry is covered?
25% percent coverage is provide for things that are the same. i.e two rings both worth $2,500 even would be covered.
Does a basic DP cover theft?
No.
what is the minimum deductible for a single family dwelling insured?
$500 for both building and contents
The NM Workers Comp law applies
to employers who have 3 or more employees
What is an aleatory contract?
One in which the values exchanged are not equal.
