insurance@@ Flashcards

1
Q

Adverse selection occurs when:

A

Applicants are accepted by the insurer with little or no attention given to underwriting. .

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2
Q

What deductible applies to the Additional Coverage “fire department service charge”?

A

The policy deductible does not apply

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3
Q

The insuring agreements of an Equipment Breakdown policy, provides coverage for

A

First party coverages and property damage to property of others

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4
Q

Who must be notified when a commercial property policy is cancelled?

A

The first named insured.

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5
Q

Under the farm forms, theft of certain types of property has a theft coverage limitation. The theft limitation on firearms and other related equipment is

A

$3,000.

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6
Q

The federal law that requires insurers to give customers written privacy notices is:

A

The Gramm-Leach-Bliley Act (GLB Act), also known as the Financial Modernization Act of 1999, requires insurers to give customers written privacy notices that explain information-sharing practices and requires insurers to safeguard sensitive data.

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7
Q

he HO-3 form insures for direct physical loss to covered property involving collapse of a building caused by all of the following, EXCEPT:

A

Settling

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8
Q

All of the following statements regarding the Motor Carrier Act of 1980 are correct, EXCEPT

A

It requires truckers to certify that they are able to meet financial obligations arising from physical damages of their trucking operations.

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9
Q

The MCS-90 form is used to…

A

indicate that the vehicle in question has coverage including pollution liability for specifies limits being defined by what is being hauled,

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10
Q

Bankruptcies may be included in a consumer report if they predate the report by

A

10 years or less.

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11
Q

How many square feet in a bundle of roof shingles?

A

33.33 square feet.

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12
Q

Eligibility requirements for the National Flood Insurance Program are not set by

A

private insurance carriers.

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13
Q

T/F Eligibility requirements are set by private insurance carriers

A

False

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14
Q

You are assigned the investigation of a head-on collision involving major injuries in both the insured and claimant vehicles. First contact should be made with the:

A

Driver of the claimant vehicle

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15
Q

What does a Commercial Property Policy on a mortgaged property specify as a duty of the insured?

A

Provide sworn proof of loss statement if requested by the insurance company

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16
Q

Which of the following statements is true with respect to symbol 1 used on the BAP declarations page?

A

Symbol 1 is used only for liability coverage. It provides the broadest liability coverage, if this symbol is used, “any auto” is covered

17
Q

The liability coverage section of the personal auto policy does not extend coverage to which of the following vehicles Mr. Love owns?

A

Motorcycles

18
Q

The Classic Drug Company’s claims-made CGL basic extended reporting period provides coverage for occurrences reported to the insurer within 60 days of the policy expiration date and claimed against the insured:

A

Within five years of the policy expiration date.

19
Q

The Businessowners Policy provides coverage on the buildings and contents. How is the coverage provided?

A

Either on an actual cash value basis or replacement cost basis.

20
Q

Which of the following would NOT be covered under the uninsured motorist coverage of the personal auto policy?

A

The owner of the uninsured vehicle