Insurance 2B

Question 1

In New Hampshire, notice of cancellation or nonrenewal of a commercial fire, marine, multi-peril, casualty, or liability policy (other than automobile or workers compensation) requires a _____ day notice to the insured.

Answer 1

60

Question 2

What statement best defines “manager” under a commercial crime insurance policy?

Answer 2

A director of a limited liability company.

Question 3

Under the commercial general liability policy, medical payment expenses must be reported within

Answer 3

1 year of the accident

Question 4

The “best evidence rule” is best stated as:

Answer 4

best evidence are the original documents themselves

Question 5

What type of coverage would a heating and cooling contractor need when work has been done on a newly renovated building but not yet accepted by the owner?

Answer 5

An installation floater

Question 6

How is unscheduled personal property covered under standard ISO homeowners policies?

Answer 6

Actual cash value

Question 7

What is the difference between replacement cost and actual cash value?

Answer 7

Replacement cost does not make a deduction for depreciation, actual cash value does.

Question 8

An insured is reimbursed by his insurance company for the cost of a new sofa after a 10-year-old sofa is destroyed by fire. Which of the following best describes this situation?

Answer 8

Replacement cost

Question 9

Flood insurance can be purchased from:

Answer 9

any licensed property agent

Question 10

A Building and Personal Property Coverage form provides coverage for all of the following types of property, EXCEPT:

Answer 10

Growing crops and lawns

Question 11

The insurance company does not pay for certain damaged property under an Equipment Breakdown policy. Identify the property.

Answer 11

Obsolete property

Question 12

A mutual insurance company is:

Answer 12

owned by its policy holders

Question 13

What insurance policy will cover bodily injury arising out of the operation of a pickup used for farming?.

Answer 13

liability portion of a personal auto policy. Farming is covered for business use under the PAP.

Question 14

A New Hampshire insured has had an automobile accident and reported it to his/her insurance agent. The insured has asked the company not to investigate or pay the reported loss. Will the insurer comply?

Answer 14

An insurer can’t refuse to make an evaluation of the insureds liability.

Question 15

The Businessowner’s policy provides loss of income on an “actual loss” sustained bases for up to:

Answer 15

12 months

Question 16

The amount it would cost to repair or replace property minus depreciation is the definition of:

Answer 16

Actual cash value

Question 17

Under the dwelling insurance program, an endorsement may be attached to the policy to cover dwellings during the course of construction. The insurance company must be advised when construction is completed, and within ____ after the insured takes occupancy of the dwelling.

Answer 17

30 days

Question 18

What is a Loss Sustained policy form?

Answer 18

It is a Bond that protects against employee theft up to a year after its canceled.

Question 19

What is the % coinsurance of Builders Risk Coverage, and does it terminate the day after construction is completed?

Answer 19

100% coinsurance required. Coverage doesn’t terminate the day after construction is completed.

Question 20

An initial premium charged the insured under a reporting form type of policy is called the:

Answer 20

deposit premium.

Question 21

Installation floaters are written on a named or open peril basis?

Answer 21

open peril basis

Question 22

At the discretion of the Commissioner, they may suspend or revoke an adjuster’s license or subject that person to an administrative penalty of:

Answer 22

$2500.00

Question 23

In liability insurance, which of the following would be considered an “occurrence”?

Answer 23

Smoke from a factory discolors siding on a nearby home. Occurrences include sudden and accidental damage, and continuous or repeated exposure resulting in injury or property damage.

Question 24

Which of the following endorsements can be used under the BAP to extend coverage to individuals such as the owner of the business who does not carry personal auto insurance?

Answer 24

Drive other car coverage

Question 25

A leased vehicle is covered auto under the personal auto policy (PAP) if it is a private passenger auto leased for at least:

Answer 25

6 months

Question 26

Under a Commercial Property policy, which of the following is not a covered peril under the Basic Cause of Loss form?

Answer 26

Water damage that is not caused by putting out a fire and the accidental leaking from a sprinkler system.

Question 27

While in England an insured has her purse stolen and files a claim for $500 of cash, $1,000 in airline tickets, $250 for miscellaneous items and $50 for the value of the purse. How much of this loss would be covered under a DP-1 dwelling form?

Answer 27

Nothing, The dwelling forms do not cover personal property unless a theft coverage endorsement is purchased.

Question 28

What coverage does the Difference in Conditions form provide?

Answer 28

Gaps left by other property insurance forms. This could include Flood and Earthquake.

Question 29

A gentleman is in a restaurant and bites into his salad and breaks his tooth. Under the restaurant’s CGL policy, this claim will be covered under:

Answer 29

Products/completed operations with the CG 2407 endorsement added