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Exam Flashcards

1
Q

What does the building and personal coverage form outdoor property coverage form protect against?

A

Explosion, riot, and civil commotion

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2
Q

A person employed by the insured specifically for the purpose of care and custody of property insude a premises is defined as what?

A

A watch person

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3
Q

What covers equipment during transportation, unloading, and Installation up until the control is given to the buyer?

A

An installation floater

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4
Q

What covers equipment during transportation, unloading, and Installation up until the control is given to the buyer?

A

An installation floater

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5
Q

What Is not true about Home owner-2 HO-2

A

The HO-2 pays for losses on an open perils basis

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6
Q

What is true about the builders risk form

A

Coverage can be provided for farms

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7
Q

What is a conditional contract ?

A

A contract in which conditions apply to the insured and insurer

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8
Q

What is not true of a homeowner policy?

A

Section II provides coverage for damage to the insureds property

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9
Q

Loss of income suffered by a store owner after their store is destroyed is considered what ?

A

A indirect loss

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10
Q

Coverage B of the CGL would cover what claim?

A

If the insured was accused of causing a business associate to be falsely arrested

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11
Q

Damages from what would apply to the per occurrence limit under a commercial general liability policy ?

A

Medical payments

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12
Q

How much does a dwelling policy with coverage A pay for additional living expenses?

A

Coverage E additional living expenses is 20% of the coverage A limit

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13
Q

What system would provide workers compensation benefits through a state fund only?

A

A monopolistic system

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14
Q

What system would provide workers compensation benefits through a state fund only?

A

A monopolistic system

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15
Q

Wet leaves on a side walk are considered what type of hazard?

A

A physical hazard

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16
Q

What person is not a covered resident under the homeowners policy ?

A

The insureds tennant

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17
Q

What part D claim would be denied under the personal auto policy?

A

Loss to the covered auto caused by road damage to tires

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18
Q

What is not a specified cause of loss under physical damage coverage of the business auto form?

A

Glass breakage

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19
Q

What is not a specified cause of loss under physical damage coverage of the business auto form?

A

Glass breakage

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20
Q

The earthquake endorsement is fairly broad but die not cover damage from what?

A

Flooding

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21
Q

What section lists the perils insured against by a property insurance policy ?

A

Insuring agreements

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22
Q

Section II of a homeowners policy may cover what ?

A

Bodily injury caused by an insureds activities while picnicking at a city park

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23
Q

What is an incorrect statement about supplementary payments under the CGL?

A

Supplementary payments apply to losses under all section I coverages

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24
Q

What is a true statement regarding the value reporting form ?

A

Late reporting or under reporting will result in a penalty in the event of a loss

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25
Q

What is the covered timeline of insured medical expenses to receive coverage under BOP liability?

A

1 year

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26
Q

What is considered an insureds product?

A

Goods sold by the insured at a trade show

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27
Q

Under a commercial crime policy written on a discovery form, what is the latest date that a covered loss can be discovered?

A

The policy expiration date

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28
Q

what claim would be excluded under a Business Auto policy ?

A

Damage to property in the insureds care, custody or control .

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29
Q

What is not found in the common policy declaration page if a commercial package policy?

A

The exclusions

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30
Q

The insured would be required to pay what in the event of a workers compensation claim ?

A

Any excess amounts incorrectly paid by the insurer.

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31
Q

In concerns to homeowners policies what’s agreed statement?

A

Borrowed property meets the definition of contents

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32
Q

What’s the name of the endorsement that provides evidence of financial responsibility for motor carriers

A

Form MCS-90

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33
Q

What’s the name of the endorsement that provides evidence of financial responsibility for motor carriers ?

A

Form MCS-90WHA

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34
Q

73 What’s a false statement I’m regards to the home day endorsement?

A

A day care employee is covered

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35
Q

What is not a section of the garage coverage form?

A

Comprehensive insurance

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36
Q

Damaged household and personal property in transit between the insureds old and new residence is covered by the dwelling policy under which coverage?

A

Coverage C

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37
Q

Under the personal auto policy,medical payments do not apply to passengers of what ?

A

A van used in the insureds business in the course of employment

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38
Q

Under a homeowners policy, how much coverage is provided for theft or unauthorized use of a credit card ?

A

$500

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39
Q

What is true statement regarding dwelling policies ?

A

Coverage c applies while insured property is located at the described location

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40
Q

The HO-8 settles losses to the building on what valuation method ?

A

Functional replacement value

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41
Q

What is not found in the common policy declare of a commercial package policy?

A

The exclusions

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42
Q

What Is not a coverage extension under the business and personal property coverage form?

A

An inflation guard

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43
Q

PA LAW

Anytime an agents appointment is terminated an insurer must notify the commission within how many days ?

A

30 days

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44
Q

In surety bonding, the party to whom the surety I’d answerable to is the ________

A

Obligee

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45
Q

In which section of the BOP would coverage for equipment breakdown be found?

A

Optional coverage

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46
Q

The common policy declarations of the CPP doesn’t contain what ?

A

Transfer of rights and duties

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47
Q

What is the intent of the Personal effects floater ?

A

To provide coverage worldwide for travelers

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48
Q

Under the businessowners coverage form , how much time is allowed for medical expenses to be incured and or reported ?

A

1 year

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49
Q

What coverage form covers equipment during transportation, unloading, and installation until control is given to the purchaser

A

An installation floater

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50
Q

Under the BOP, if coverage for business property equals 100% of the average monthly values for the preceding 12 months, an automatic increase of what amount is provided to offset seasonal variations in stocks values?

A

25%

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51
Q

What risk is not eligible for coverage under the businessowners policy?

A

A 10-story building

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52
Q

What is not covered under the BOP (businesses owner policy)?

A

A Satellite dish located on the premises

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53
Q

PA LAW

The Pennsylvania insurance Guaranty Association covers what claim

A

A $300,000 liability claim against an automobile policy

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54
Q

PA state law

What is an incorrect statement about producer licensing in Pennsylvania?

A

Business entities must complete Prelicesencing education requirements.

55
Q

PA state law

What is a true statement about the regulation of insurance policy forms and rates in Pennsylvania?

A

A rate may be considered discriminatory if it clearly fails to reflect differences in expected losses abs expenses.

56
Q

PA state law

What does the Pennsylvania laws governing the privacy of consumer information allow ?

A

It allows disclosure of nonpublic information if the consumer is given initial notice and opt-out notice, but does not opt out after a reasonable opportunity to do so.

57
Q

PA state law
If an insurer terminates the relationship between them and an insurance producer, how many days does the insurer have to notify the the licensee im writing at their home address, from the time the insurer notified the department of insurance?

A

15 days

58
Q

PA state law

In addition to the penalties previously imposed by a court, what is the maximum penalty the commissioner can impose?

A

$5,000

59
Q

PA state law

The water and sewer backup endorsement on a Pennsylvania homeowners policy would cover what?

A

Up to $5,000 of coverage for physical loss caused by water from an overflowing sump pump

60
Q

PA STATE LAW

What is a true statement regarding the duration and termination of policies in Pennsylvania?

A

After the death of a named Insured, the insurer must continue coverage for 180 days

61
Q

PA state law

What is a true statement According to Pennsylvania laws, regulations and required provisions?

A

Binders may be in force for up to 30 days

62
Q

PA state law

What is a coverage limit in Pennsylvania’s combination benefit?

A

$25,000 in accidental death

63
Q

For how many hours after the first tremor would earth movement damage be covered under the businessowners earthquake endorsement?

A

168 hours

64
Q

Which of the following statements regarding deductibles is true ?

A

Deductibles help reduce the number of frivolous or small claims

65
Q

The voluntary compensation endorsement under workers compensation insurance is vest described as:

A

It provides coverage to employees or other persons that are not otherwise required to be covered

66
Q

The voluntary compensation endorsement under the workers compensation insurance is best described as :

A

It provides coverage to employees or other persons that are not otherwise required to be covered

67
Q

Under the homeowners policy, an unrelated resident in the care of the insured is covered up to what age?

A

21

68
Q

All of the following are true of the extended reporting period except:

A

The supplemental extended reporting period must be purchased at the beginning of the policy period

69
Q

Detached structures on the insureds premises are included in which coverage under a dwelling policy?

A

Coverage B

70
Q

Which of the following is not a coverage under the farm property coverage form ?

A

Coverage H- bodily injury and property damage liability

71
Q

Which of the following describes the loss settlement basis for a fire damage claim to a dwelling insured under a DP-3 policy ?

A

Replacement cost up to the coverage A limit

72
Q

Livestock Is not eligible for coverage on which farm policy ?

A

Special cause of loss form

73
Q

Which of the following would not reduce the general aggregateimit under a CGL?

A

The insurer pays a claimant injured by a product made by the insured

74
Q

Which of the following conditions under a building and personal property coverage form determines how losses will be paid?

A

Valuation clause

75
Q

Coverage E of homeowners pick would cover which of the following?

A

Bodily injury to a guest caused by the insureds pet dog

76
Q

Which part of the property insurance policy describes the perils ?

A

Insuring agreements

77
Q

All of the following are general conditions of the BAP, except:

A

Duties in the event of an accident

78
Q

Which of the following is not one of the 8 insuring agreements used by the commercial crime coverage form ?

A

Extortion

79
Q

All of the following are true regarding the broad theft endorsement onna dwelling policy except:

A

Only on-premises coverage is available

80
Q

Which insurance provision prevents the insured from collecting twice for the same loss?

A

Subrogation

81
Q

Which section of the garage coverage form provides coverage for autos in the care, custody and control of the insured?

A

Section III

82
Q

The dwelling broad form (DP-2) insures against all of the following perils except:

A

Theft

83
Q

Under the basic dwelling form, losses are paid on which basis?

A

Actual cash value

84
Q

The businessowners liability form includes coverage for bodily injury, property damage, personal injury and advertising injury to which coverage applies, plus:

A

Liability assumed unset an insured contract

85
Q

Which of the following would be found in Section I of a CGL?

A

Coverage for bodily injury and property damage

86
Q

Which statement is false regarding section II of the businessowners coverage form?

A

Medical expenses include bodily injury to an insured or a person hired to do work

87
Q

FOB (Free on Board) point of destination is best described as which of the following ?

A

The seller is responsible for the property being transported until it has been delivered

88
Q

What is the name of for an insurer authorized to write insurance policies in a particular state?

A

Admitted

89
Q

What is a stock insurance company?

A

An individual company owned by stockholders

90
Q

Liability for use of which of the following vehicles is not covered by the homeowners policy?

A

Dune buggy used on a public beach

91
Q

Which of the following describes the term general average under Ocean Marine insurance?

A

A partial loss where the loss is shared

92
Q

Which statement is false regarding supplementary payments under the commercial general liability policy ?

A

Payments made under this section reduce the limits of the policy

93
Q

New home buyer S called an agent and requested the broadest coverage available for S’s new home. Which policy would the agent most likely recommend?

A

HO-5

94
Q

Which homeowners policy has the broadest range of coverage?

A

HO-5

95
Q

When an auto has two auto policies with the same insurer, the insurers liability would would exceed:

A

The highest limit of the two policies

96
Q

Under the Builders Risk Coverage Form, all of the following are true except:

A

Coverage includes trees, plants, outside antennas and signs not attached to the building

97
Q

What is not a true about the Builders Risk Coverage Form ?

A

Coverage includes trees, plants, outside antennas and signs not attached to the building

98
Q

In surety bonding, the party whose obligation is guaranteed is called:

A

The principal

99
Q

What would the Condomimum Comercial Unit- owners coverage form not cover?

A

Building exterior wall

100
Q

The Condominum Comercial Unit-Owners Coverage form does not cover which of the following?

A

Building exterior wall

101
Q

What is a loss condition under the Business Auto Coverage Form?

A

Legal action against the insurer

102
Q

Which of the following is a loss condition under the Business Auto Coverage Form?

A

Legal action against the insurer

103
Q

Coverage C of a Homeowners Policy includes:

A

An owned camera used by the insured while on vacation in another country

104
Q

What a NOT a residence premises in the Homeowners Policy ?

A

Premises rented occasionally to a named insured for non business purposes

105
Q

Which of the following is NOT a residence premises in the Homeowners policy ?

A

Premises rented occasionally to a named insured for non business purposes

106
Q

What coverage is not included under the Boatowners policy ?

A

Personal property coverage

107
Q

Which statement is true regarding a Difference in Conditions Policy ?

A

There is no standard form

108
Q

What does property damage covered by a liability policy include?

A

Damage to tangible property, including loss of use of that property caused by the insured’s negligence

109
Q

Property damage covered by a liability policy includes which of the following?

A

Damage to tangible property, including loss of use of that property caused by the insured’s negligence

110
Q

Construction material having a fire-resistance rating between 1 and 2 hours for walls, floors, and roofs is classified as:

A

Modified Fire Resistive

111
Q

A fire resistant rating between 1 and 2 hours is classified as:

A

Modified Fire Resistive

112
Q

What is not an element of negligence?

A

Assumption of risk

113
Q

Which of the following is not an element of negligence ?

A

Assumption of risk

114
Q

Who is eligible to receive medical payments under Section II of a Homeowners Policy?

A

A residence employee

115
Q

Which of the following is eligible to receive medical payments under Section II of a Homeowners Policy?

A

A residence employee

116
Q

Which of the following is true of supplementary payments under Part A of the Personal Auto Policy ?

A

They are paid in addition to the liability limits of the policy

117
Q

Section II of a Homeowners Policy may cover which of the following incidents?

A

Bodily Injury caused by an insured’s activities while picnicking at a city park

118
Q

What is not an optional coverage under the BOP?

A

Electronic data

119
Q

Which of the following is not an optional coverage under the BOP?

A

Electronic data

120
Q

Personal Article Floater claims are normally settled on a(n):

A

Actual cash value basis with some exceptions

121
Q

All of the following are true regarding Ocean Marine Insurance, except:

A

Rates for ocean marine insurance are strictly regulated

122
Q

What is not true about Ocean Marine Insurance

A

Rates for ocean marine insurance are strictly regulated

123
Q

Which of the following relationships involve vicarious liability?

A

Employer and employee

124
Q

What is an example of vicarious liability?

A

Employer and employee

125
Q

The farm Liability Coverage form provides all of the following coverages, except:

A

Contractual liability

126
Q

What does the Farm Liability Coverage Form not provide coverage for?

A

Contractual liability

127
Q

What loss is not covered unde a NFIP policy?

A

A water main in the street breaks, flooding the Insured’s basement

128
Q

Which of the following losses would not be covered under a NFIP policy ?

A

A water main in the street breaks, flooding the Insureds basement

129
Q

The Collision or Running Down Clause in Ocean Marine Insurance covers:

A

Collision damage to another vessel when the shipper is liable

130
Q

What does the Collision or Running Down Clause in Ocean Marine Insurance cover?

A

Collision damage to another vessel when the shipper is liable.

131
Q

Which of the following is correct regarding coverage under the Farm Property Coverage Form?

A

For coverage to apply, there must be a limit shown in the declarations

132
Q

What is a correct statement regarding coverage under the Farm Property Coverage Form?

A

For coverage to apply, there must be a limit shown in the declarations

133
Q

Which statement about fraud is not correct?

A

The commissioner established a Section of Insurance Fraud to investigate and prosecute fraud

Insurance (9 decks)

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