Exam C Flashcards
If you want to be covered for everything that is not excluded, you should buy:
a. Special cause of loss
b. Basic cause of loss
c. Broad cause of loss
d. Named peril coverage
a. Special Cause of Loss
All of the following statements concerning valuation in property policy are true EXCEPT:
a. Under agreed value, the insured and the company establish the value before the loss occurs
b. under stated amount, the insured does not know what will be paid on the loss until the loss occurs
c. Under stated amount, the insured is guaranteed the limit on the declarations page following a loss
d. Functional replacement is also known as the cost to repair or replace with property that serves the same function
c. Under stated amount, the insured is guaranteed the limit on the declarations page following a loss
Under a Special Cause of Loss form, the burden of proof following a loss is on the a. Insured b. Company c, Assignee d. Mortgagee
b. company
Under a Broad Cause of Loss form, the burden of proof following a loss is on the
a. Insured
b. Company
c. Assignee
d. Mortgagee
a. insured
Which of the following is true concerning the medical payments section of a liability contract?
a. it pays only if the insured is legally liable
b. it can pay for the injured party’s lost wages
c. it has rather low dollar limits
d. it pays in addition to any liability judgments
c. it has rather low dollar limits
Which of the following is true concerning defense costs in a liability contract?
a. They only pay if you’re legally liable
b. They pay in addition to the limits of the policy
c. They must be purchased separately
d. They can cover the insured’s cost of suing the negligent party
b. They pay in addition to the limits of the policy
Fire Legal Liability is most important to:
a. a landlord
b. a mortgagee
c. an employee
d. a tenant
d. a tenant
Which of the following is Coverage D in a Dwelling policy?
a. Additional Living Expenses
b. Fair Rental Value
c. Broad Form Theft
d. Limited Theft
b. Fair Rental Value
An attached garage would be covered as
a. an appurtenant structure
b. other structures
c. coverage C
d. coverage A
d. Coverage A
What is the maximum that the Fire Department service charge can pay in a Homeowners policy?
a. $100
b. $200
c. $300
d. $500
d. $500
You are driving your car to soccer practice with your son and the neighbor’s kid in the car when you run a red light and hit Calvin and his family in their car. Under what part of your Personal Auto Policy would Calvin’s injury be covered?
a. Part A
b. Part B
c. Part C
d. Part D
a. Part A
You are driving your car to soccer practice with your son and the neighbor’s kid in the car when you run a red light and hit Calvin and his family in their car. Under what part of your Personal Auto Policy would the neighbor kid’s injury be covered?
a. Part A
b. Part B
c. Part C
d. Part D
b. Part B
You are driving your car to soccer practice with your son and the neighbor’s kid in the car when you run a red light and hit Calvin and his family in their car. What part of your policy covers damage to Cal’s car?
a. Part A
b. Part B
c. Part C
d. Part D
a. Part A
You are driving your car to soccer practice with your son and the neighbor’s kid in the car when you run a red light and hit Calvin and his family in their car. What part of your policy covers damage to your car?
a. Part A
b. Part B
c. Part C
d. Part D
D. Part D
Under the National Flood Program, which of the following is true?
a. You must live in a flood plain to buy the policy
b. If your community fails to participate you may still purchase flood insurance
c. building losses are settled at ACV and contents are settled at Replacement Cost
d. The minimum deductible is $500
d. the minimum deductible is $500
Which of the following is NOT a coverage choice in the CPP?
a. Crime
b. Farm
c. Inland marine
d. Garagekeepers
d. Garagekeepers
Which of the following losses would NOT be coverage by the Basic Cause of Loss form?
a. Collapse
b. Wind
c. Hail
d. Civil Commotion
a. Collapse
What is the maximum that the Fire Department Service Charge will pay in a Commercial Property policy/.
a. $250
b. $500
c. $1,000
d. $1,500
c. $1,000
For which of the following would CGL Medical Payments provide coverage?
a. A child hurts herself with a toy manufactured by the insured
b. A employee becomes ill from food poisoning
c. A carpenter working at your house drops a hammer on your foot
d. your newly installed awning collapses on your head
c. A carpenter working at your house drops a hammer on your foot
Which of the following pays only if you are legally liable?
a. Medical payments
b. Defense costs
c. Bodily injury liability
d. Supplementary payments
c. Bodily Injury liability
CGL Medical Payments will make payments for up to how long after a loss?
a. 1 year
b. 2 years
c. 3 years
d. 5 years
a. 1 year
In a crime policy, if Carl is assigned to drive a cash deposit to the bank, Carl is acting as a
a. Messenger
b. Custodian
c. Guard
d. Watchperson
a. Messenger
Fidelity Bonds are used in connection with
a. Employee errors and omissions
b. Employee absences
c. Employee negligence
d. Employee theft
d. employee theft
To cover all employees on one Fidelity Bond, you would use a(n)
a. Individual Bond
b. Name schedule bond
c. Blanket bond
d. Position schedule bond
c. Blanket bond
The commercial Crime policy pays for losses to property other than money and securities on what basis?
a. ACV
b. Replacement cost
c. Functional Replacement Cost
d. Agreed value
a. ACV
Which would NOT be covered under a Commercial Crime policy?
a. theft
b. Forgery
c. Vandalism
d. Computer Fraud
c. Vandalism
Forgery and Alteration covers Commercial Crime losses involving
a. Incoming counterfeit money
b. Incoming counterfeit money orders
c. Outgoing instruments altered by someone other than the payee
d. Outgoing instruments altered by an employee
c. Outgoing instruments altered by someone other than the payee
Insuring Agreement #3 – Inside the Premises – Theft of Money and Securities covers call of the following EXCEPT
a. Money destroyed in a fire
b. Money stolen from a vending machine
c. Money that disappears
d. Money that is taken in a robbery
b. Money stolen from a vending machine
The boiler at XYZ Manufacturing is destroyed in a factory fire. The boiler loss is covered under
a. Commercial property coverage
b. Equipment breakdown coverage
c. Inland marine coverage
d. none of the above
a. Commercial property coverage
XYZ Manufacturing’s boiler explodes, setting the factory on fire and causing extensive some damage. The firemen extinguishing the blaze do significant water damage. All are true about XYZ’s coverage EXCEPT:
a. The boiler is covered by XYZ’s Equipment Breakdown coverage
b. The fire damage is covered by XYZ’s Equipment Breakdown coverage
c. The water damage is covered by XYZ’s Commercial Property coverage
d. The smoke damage is covered by XYZ’s Commercial Property coverage
b. The fire damage is covered by XYZ’s Equipment Breakdown coverage
Which of the following would NOT be covered by Equipment Breakdown coverage?
a. Steam boilers
b. Refrigeration equipment
c. Computers
d. Toilets
d. Toilets
Equipment Breakdown coverage losses are settled on what basis?
a. ACV
b. Replacement cost
c. Functional replacement
d. Agreed value
b. Replacement cost
The insurance company may suspend coverage on any unsafe insured object by giving written notice how many days in advance?
a. 10
b. 15
c. 30
d. The suspension is immediate
d. The suspension is immediate
How many vehicles are required to qualify for fleet rates?
a. 5 or more
b. 10 or more
c. 20 or more
d. 25 or more
a. 5 or more
A company that provides private passenger vehicles for each of its 10 sales reps would likely purchase
a. Business Auto coverage form
b. Motor Carrier coverage form
c. Garage Liability coverage form
d. Garagekeepers coverage form
a. Business Auto coverage form
A business concerned with its liability when employees use their own vehicles on company business needs
a. Driver Other Car coverage
b. Individual Named Insured endorsement
c. Employee as Insured endorsement
d. Non-owned Auto Liability
d. non-owned auto liability
A car wash concerned about its responsibility for damage to customer’s cars should buy
a. Motor Carrier coverage form
b. Garage liability coverage form
c. Garagekeepers coverage form
d. Drive Other Car coverage
c. garagekeepers coverage form
The Motor Carrier Act of 1980 requires minimum limits of __________ when transporting specified hazardous materials such as explosives
a. $1,000,000
b. $2,000,000
c. $2,500,000
d. $5,000,000
d. $5,000,000
To determine which autos are covered autos in a Business Auto Coverage for, you should refer to the
a. Declarations page
b. Insuring clause
c. Policy conditions
d. Policy endorsements
a. Declarations page
Which is NOT true about Ocean Marine policies?
a. They are manuscripted policies
b. They must be filed and approved before use
c. They can be used to insure ships and boats
d. They can be used to insure a ship’s cargo
b. They must be filed and approved before use
The Nationwide Marine definition does which of the following:
a. Lists everything that can be covered by an Ocean Marine policy
b. Lists everything that can be covered by an Inland Marine policy
c. Lists the risks that cannot be covered by a Marine policy
d. Generally distinguishes Marine risks from Property risks
d. Generally distinguishes Marine risks from Property risks
