Exam Flashcards
What does the building and personal coverage form outdoor property coverage form protect against?
Explosion, riot, and civil commotion
A person employed by the insured specifically for the purpose of care and custody of property insude a premises is defined as what?
A watch person
What covers equipment during transportation, unloading, and Installation up until the control is given to the buyer?
An installation floater
What covers equipment during transportation, unloading, and Installation up until the control is given to the buyer?
An installation floater
What Is not true about Home owner-2 HO-2
The HO-2 pays for losses on an open perils basis
What is true about the builders risk form
Coverage can be provided for farms
What is a conditional contract ?
A contract in which conditions apply to the insured and insurer
What is not true of a homeowner policy?
Section II provides coverage for damage to the insureds property
Loss of income suffered by a store owner after their store is destroyed is considered what ?
A indirect loss
Coverage B of the CGL would cover what claim?
If the insured was accused of causing a business associate to be falsely arrested
Damages from what would apply to the per occurrence limit under a commercial general liability policy ?
Medical payments
How much does a dwelling policy with coverage A pay for additional living expenses?
Coverage E additional living expenses is 20% of the coverage A limit
What system would provide workers compensation benefits through a state fund only?
A monopolistic system
What system would provide workers compensation benefits through a state fund only?
A monopolistic system
Wet leaves on a side walk are considered what type of hazard?
A physical hazard
What person is not a covered resident under the homeowners policy ?
The insureds tennant
What part D claim would be denied under the personal auto policy?
Loss to the covered auto caused by road damage to tires
What is not a specified cause of loss under physical damage coverage of the business auto form?
Glass breakage
What is not a specified cause of loss under physical damage coverage of the business auto form?
Glass breakage
The earthquake endorsement is fairly broad but die not cover damage from what?
Flooding
What section lists the perils insured against by a property insurance policy ?
Insuring agreements
Section II of a homeowners policy may cover what ?
Bodily injury caused by an insureds activities while picnicking at a city park
What is an incorrect statement about supplementary payments under the CGL?
Supplementary payments apply to losses under all section I coverages
What is a true statement regarding the value reporting form ?
Late reporting or under reporting will result in a penalty in the event of a loss
What is the covered timeline of insured medical expenses to receive coverage under BOP liability?
1 year
What is considered an insureds product?
Goods sold by the insured at a trade show
Under a commercial crime policy written on a discovery form, what is the latest date that a covered loss can be discovered?
The policy expiration date
what claim would be excluded under a Business Auto policy ?
Damage to property in the insureds care, custody or control .
What is not found in the common policy declaration page if a commercial package policy?
The exclusions
The insured would be required to pay what in the event of a workers compensation claim ?
Any excess amounts incorrectly paid by the insurer.
In concerns to homeowners policies what’s agreed statement?
Borrowed property meets the definition of contents
What’s the name of the endorsement that provides evidence of financial responsibility for motor carriers
Form MCS-90
What’s the name of the endorsement that provides evidence of financial responsibility for motor carriers ?
Form MCS-90WHA
73 What’s a false statement I’m regards to the home day endorsement?
A day care employee is covered
What is not a section of the garage coverage form?
Comprehensive insurance
Damaged household and personal property in transit between the insureds old and new residence is covered by the dwelling policy under which coverage?
Coverage C
Under the personal auto policy,medical payments do not apply to passengers of what ?
A van used in the insureds business in the course of employment
Under a homeowners policy, how much coverage is provided for theft or unauthorized use of a credit card ?
$500
What is true statement regarding dwelling policies ?
Coverage c applies while insured property is located at the described location
The HO-8 settles losses to the building on what valuation method ?
Functional replacement value
What is not found in the common policy declare of a commercial package policy?
The exclusions
What Is not a coverage extension under the business and personal property coverage form?
An inflation guard
PA LAW
Anytime an agents appointment is terminated an insurer must notify the commission within how many days ?
30 days
In surety bonding, the party to whom the surety I’d answerable to is the ________
Obligee
In which section of the BOP would coverage for equipment breakdown be found?
Optional coverage
The common policy declarations of the CPP doesn’t contain what ?
Transfer of rights and duties
What is the intent of the Personal effects floater ?
To provide coverage worldwide for travelers
Under the businessowners coverage form , how much time is allowed for medical expenses to be incured and or reported ?
1 year
What coverage form covers equipment during transportation, unloading, and installation until control is given to the purchaser
An installation floater
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?
25%
What risk is not eligible for coverage under the businessowners policy?
A 10-story building
What is not covered under the BOP (businesses owner policy)?
A Satellite dish located on the premises
PA LAW
The Pennsylvania insurance Guaranty Association covers what claim
A $300,000 liability claim against an automobile policy
PA state law
What is an incorrect statement about producer licensing in Pennsylvania?
Business entities must complete Prelicesencing education requirements.
PA state law
What is a true statement about the regulation of insurance policy forms and rates in Pennsylvania?
A rate may be considered discriminatory if it clearly fails to reflect differences in expected losses abs expenses.
PA state law
What does the Pennsylvania laws governing the privacy of consumer information allow ?
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.
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?
15 days
PA state law
In addition to the penalties previously imposed by a court, what is the maximum penalty the commissioner can impose?
$5,000
PA state law
The water and sewer backup endorsement on a Pennsylvania homeowners policy would cover what?
Up to $5,000 of coverage for physical loss caused by water from an overflowing sump pump
PA STATE LAW
What is a true statement regarding the duration and termination of policies in Pennsylvania?
After the death of a named Insured, the insurer must continue coverage for 180 days
PA state law
What is a true statement According to Pennsylvania laws, regulations and required provisions?
Binders may be in force for up to 30 days
PA state law
What is a coverage limit in Pennsylvania’s combination benefit?
$25,000 in accidental death
For how many hours after the first tremor would earth movement damage be covered under the businessowners earthquake endorsement?
168 hours
Which of the following statements regarding deductibles is true ?
Deductibles help reduce the number of frivolous or small claims
The voluntary compensation endorsement under workers compensation insurance is vest described as:
It provides coverage to employees or other persons that are not otherwise required to be covered
The voluntary compensation endorsement under the workers compensation insurance is best described as :
It provides coverage to employees or other persons that are not otherwise required to be covered
Under the homeowners policy, an unrelated resident in the care of the insured is covered up to what age?
21
All of the following are true of the extended reporting period except:
The supplemental extended reporting period must be purchased at the beginning of the policy period
Detached structures on the insureds premises are included in which coverage under a dwelling policy?
Coverage B
Which of the following is not a coverage under the farm property coverage form ?
Coverage H- bodily injury and property damage liability
Which of the following describes the loss settlement basis for a fire damage claim to a dwelling insured under a DP-3 policy ?
Replacement cost up to the coverage A limit
Livestock Is not eligible for coverage on which farm policy ?
Special cause of loss form
Which of the following would not reduce the general aggregateimit under a CGL?
The insurer pays a claimant injured by a product made by the insured
Which of the following conditions under a building and personal property coverage form determines how losses will be paid?
Valuation clause
Coverage E of homeowners pick would cover which of the following?
Bodily injury to a guest caused by the insureds pet dog
Which part of the property insurance policy describes the perils ?
Insuring agreements
All of the following are general conditions of the BAP, except:
Duties in the event of an accident
Which of the following is not one of the 8 insuring agreements used by the commercial crime coverage form ?
Extortion
All of the following are true regarding the broad theft endorsement onna dwelling policy except:
Only on-premises coverage is available
Which insurance provision prevents the insured from collecting twice for the same loss?
Subrogation
Which section of the garage coverage form provides coverage for autos in the care, custody and control of the insured?
Section III
The dwelling broad form (DP-2) insures against all of the following perils except:
Theft
Under the basic dwelling form, losses are paid on which basis?
Actual cash value
The businessowners liability form includes coverage for bodily injury, property damage, personal injury and advertising injury to which coverage applies, plus:
Liability assumed unset an insured contract
Which of the following would be found in Section I of a CGL?
Coverage for bodily injury and property damage
Which statement is false regarding section II of the businessowners coverage form?
Medical expenses include bodily injury to an insured or a person hired to do work
FOB (Free on Board) point of destination is best described as which of the following ?
The seller is responsible for the property being transported until it has been delivered
What is the name of for an insurer authorized to write insurance policies in a particular state?
Admitted
What is a stock insurance company?
An individual company owned by stockholders
Liability for use of which of the following vehicles is not covered by the homeowners policy?
Dune buggy used on a public beach
Which of the following describes the term general average under Ocean Marine insurance?
A partial loss where the loss is shared
Which statement is false regarding supplementary payments under the commercial general liability policy ?
Payments made under this section reduce the limits of the policy
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?
HO-5
Which homeowners policy has the broadest range of coverage?
HO-5
When an auto has two auto policies with the same insurer, the insurers liability would would exceed:
The highest limit of the two policies
Under the Builders Risk Coverage Form, all of the following are true except:
Coverage includes trees, plants, outside antennas and signs not attached to the building
What is not a true about the Builders Risk Coverage Form ?
Coverage includes trees, plants, outside antennas and signs not attached to the building
In surety bonding, the party whose obligation is guaranteed is called:
The principal
What would the Condomimum Comercial Unit- owners coverage form not cover?
Building exterior wall
The Condominum Comercial Unit-Owners Coverage form does not cover which of the following?
Building exterior wall
What is a loss condition under the Business Auto Coverage Form?
Legal action against the insurer
Which of the following is a loss condition under the Business Auto Coverage Form?
Legal action against the insurer
Coverage C of a Homeowners Policy includes:
An owned camera used by the insured while on vacation in another country
What a NOT a residence premises in the Homeowners Policy ?
Premises rented occasionally to a named insured for non business purposes
Which of the following is NOT a residence premises in the Homeowners policy ?
Premises rented occasionally to a named insured for non business purposes
What coverage is not included under the Boatowners policy ?
Personal property coverage
Which statement is true regarding a Difference in Conditions Policy ?
There is no standard form
What does property damage covered by a liability policy include?
Damage to tangible property, including loss of use of that property caused by the insured’s negligence
Property damage covered by a liability policy includes which of the following?
Damage to tangible property, including loss of use of that property caused by the insured’s negligence
Construction material having a fire-resistance rating between 1 and 2 hours for walls, floors, and roofs is classified as:
Modified Fire Resistive
A fire resistant rating between 1 and 2 hours is classified as:
Modified Fire Resistive
What is not an element of negligence?
Assumption of risk
Which of the following is not an element of negligence ?
Assumption of risk
Who is eligible to receive medical payments under Section II of a Homeowners Policy?
A residence employee
Which of the following is eligible to receive medical payments under Section II of a Homeowners Policy?
A residence employee
Which of the following is true of supplementary payments under Part A of the Personal Auto Policy ?
They are paid in addition to the liability limits of the policy
Section II of a Homeowners Policy may cover which of the following incidents?
Bodily Injury caused by an insured’s activities while picnicking at a city park
What is not an optional coverage under the BOP?
Electronic data
Which of the following is not an optional coverage under the BOP?
Electronic data
Personal Article Floater claims are normally settled on a(n):
Actual cash value basis with some exceptions
All of the following are true regarding Ocean Marine Insurance, except:
Rates for ocean marine insurance are strictly regulated
What is not true about Ocean Marine Insurance
Rates for ocean marine insurance are strictly regulated
Which of the following relationships involve vicarious liability?
Employer and employee
What is an example of vicarious liability?
Employer and employee
The farm Liability Coverage form provides all of the following coverages, except:
Contractual liability
What does the Farm Liability Coverage Form not provide coverage for?
Contractual liability
What loss is not covered unde a NFIP policy?
A water main in the street breaks, flooding the Insured’s basement
Which of the following losses would not be covered under a NFIP policy ?
A water main in the street breaks, flooding the Insureds basement
The Collision or Running Down Clause in Ocean Marine Insurance covers:
Collision damage to another vessel when the shipper is liable
What does the Collision or Running Down Clause in Ocean Marine Insurance cover?
Collision damage to another vessel when the shipper is liable.
Which of the following is correct regarding coverage under the Farm Property Coverage Form?
For coverage to apply, there must be a limit shown in the declarations
What is a correct statement regarding coverage under the Farm Property Coverage Form?
For coverage to apply, there must be a limit shown in the declarations
Which statement about fraud is not correct?
The commissioner established a Section of Insurance Fraud to investigate and prosecute fraud
