P&C General Flashcards
All are true about subrogation EXCEPT:
A. The insured waives the rights of recovery against another party to the extent that payment is made by the insurer
B. It applies to all parts of the policy
C. It applies when a third party negligently causes property damage
D. It helps hold rates down
Answer: (A)
Clark drives his uninsured auto into his own home, which is insured on a HO-2. Which of the following is CORRECT?
A. This is covered by his homeowners policy
B. The damage caused to the home and the trees, shrubs, plants and lawns is covered by his homeowners policy
C. This would only be covered if the party that had run into the home did not live in the home
D. This is excluded by his homeowners policy
Answer: (C)
On a HO policy, where would you look to find the most that the policy will pay A. Declarations B. Limits of liability C. Insuring agreement D. Definitions
Answer: (B)
Which of the following is CORRECT concerning a flood insurance policy?
A. You can increase your flood insurance limit after the policy has bee in force for 30 days
B. Coverage begins immediately
C. Coverage is ACV
D. The deductible is $2,000
Answer: (C)
Insurance producers need which type of liability insurance? A. CGL B. E&O insurance C. D&O D. Malpractice
Answer: (A)
What states the dime and date of the claim, as well as the description of the loss? A. Statement of claim B. Proof of loss C. Statement of loss D. Notice of claim
Answer: (C)
Which of the following is an indirect coverage that is automatically included on a DP-1 Basic form? A. Personal liability B. Dwelling C. Other structures D. Rental value
Answer: (B)
What portion of a CGL would cover a waitress spilling hot soup on a customer that causes burns? A. Products and completed operations B. Assumed liability C. Premises and operations liability D. Independent contractors
Answer: (B)
The transfer of the insured's rights to the insurer after a loss is known as: A. Appraisal B. Subrogation C. Assignment D. Arbitration
Answer: (B)
All of the following are true regarding medical coverage on a CGL, EXCEPT?
A. It covers customers
B. It covers medical claims related to necessary medical, surgical, dental services and funeral services
C. It is no fault
D. It covers corporate officers
Answer: (D)
What is the document that producers may give to a customer stating when coverage begins? A. A binder B. A disclosure statement C. A conditional receipt D. A replacement form
Answer: (B)
The client has a CGL written with a policy limit of $100,000. If the lawyers fees related to the claim are $25,000, how much will the policy pay to the claimant in the event of a covered loss
Answer: $100,000
The client has a Basic DP-1. If a riot causes a fire and the fire destroys the home which statement is TRUE?
A. The fire is not covered because riot is the proximate cause
B. The client is out of luck
C. Riots are always covered
D. It is covered because the riot caused the fire
Answer: (A)
A Commercial Building and Personal Property Form automatically extends coverage to all of the following EXCEPT
A. Trees, shrubs, and plants
B. Extra expenses
C. Business personal property, temporarily off premises, other than stock
D. Newly acquired property
Answer (A)
Personal injury liability covers all of the following, EXCEPT A. Trademark infringement B. Slander C. False arrest D. Libel
Answer: (A)
Coverage E on a Mobile Homeowners policy includes which coverages?
A. Other structures
B. Personal liability and medical payments to others
C. Contents
D. Dwelling
Answer: (B)
On a casualty policy, where would you look to determine what is not covered? A. Declarations B. Insuring agreement C. Exclusions D. Conditions
Answer: (C)
A business income policy is written with a limit of $100,000, and a 25% monthly limitation. How much, after a covered loss, will the policy pay if the insured loses $35,000 the first month and $20,000 the second month? A. $45,000 B. $55,000 C. $25,000 D. $50,000
Answer: (A)
On a commercial building and personal property form, which of the following are covered? A. Outdoor fixtures and equipment B. Assumed liability C. Products liability D. Advertising liability
Answer: (A)
Mobile home policies would cover all of the following EXCEPT
A. Wind damage
B. Personal liability
C. A detached garage
D. The costs associated with moving the mobile home to a new permanent location
Answer: (A)
Which of the following is covered by advertising injury liability? A. Libel B. Infringement of copyright C. Slander D. False arrest
Answer(B)
Under a PAP, if you negligently hit a tree, causing your passenger bodily injury, which of the following statements is true?
A. Only medical payments will apply to your passenger
B. There is no coverage at all for your passenger
C. Your passenger’s PAP will cover his injuries
D. Your PAP will cover the passenger’s bodily injury and loss of earnings up to your BI per person limit
Answer:
D
products and completed operations covers all of the following, EXCEPT?
A. Cost of defense
B. Liability related to PD caused by products you sold
C. The cost of a recall
D. Liability related to BI caused by products you sold
Answer: (A)
On liability insurance, when the insurer and the insured cannot agree as to who is entitled to recover and/or how much, either party may invoke the right of? A. Appraisal B. Subrogation C. Arbitration D. Co-insurance
Answer:(C)
A commercial insured with a broad form cause of loss form suffers water damaged due to a cracked pipe. All of the following are covered EXCEPT? A. The damage caused to the floors B. The damage caused to the walls C. The actual damaged pipe D. The damage caused to the contents
Answer:(D)
On a PAP a temporary substitute auto is best described as which of the following?
A. One you borrow from your friend occasionally
B. One provided for you because your car is out of service
C. A rental car when you are on vacation
D. Any other car, besides your own, you may drive
Answer: (B)
Something that increases the risk is known as a: A. Accident B. Peril C. Risk D. Hazard
Answer: (D)
Which of the following is CORRECT regarding actual cash value?
A. The DP-3 pays claims on the dwelling ACV
B. An old building will have an ACV that is the same as its replacement cost
C. ACV equals replacement cost minus depreciation
D. ACV equals replacement cost
Answer: C
Supplementary payments covered by a CGL would include which of the following?
A. The cost of an appeal bond
B. $10,000 toward attorney’s fees
C. BI and PD related to Products
D. Loss of earnings, up to $200/day, if the insurer requires the insured to attend a hearing
Answer: (D)
A deer jumps through your plate glass window, damaging your interior walls. If the insured has an HO-3 which of the following is CORRECT?
A. This is covered under the ECE
B. The policy would cover this since it is all risk and wild animals are not excluded
C. This is excluded
D. This is a named peril
Answer (C)
If an insured has a single limit PAP of $100,000, what is the most the policy will pay out in an accident? A. $500,000 B. $100,000 C. $1,000,000 D. $200,000
Answer:(B)
All of the following are true about negligence EXCEPT:
A. It is the failure to act as a reasonable and prudent person
B. The negligent act need not be the proximate cause of the injury
C. You have a duty owed to others not to be negligent
D. Assumption of the risk is a valid negligence defense
Answer: (D)
The property coverages are contained in which of the following? A. The definitions B. The insuring agreement C. The exclusions D. The cause of loss form
Answer: (B)
Theft, disappearance, and destruction cover which of the following?
A. Theft of money and securities from a messenger outside the premises
B. Burglary of a safe
C. Robbery inside the premises
D. Theft of other than money and securities
Answer: (D)
When the insurance company receives an acceptable proof of loss on a covered claim, what must they do? A. Deny the claim B. Postpone paying the claim C. Investigate the claim D. Pay the claim
Answer: (C)
An insurer may decide to include enhancements of coverage without the insured's consent under what clause? A. Co-insurance clause B. Pro-rata clause C. Other insurance clause D. Liberalization clause
Answer: (D)
On a CGL, the policy provision that applies to a claim that occurred during the policy period, but wasn't turned in until after the policy expiration is called the what? A. Extended reporting period B. Retro-active date C. Occurrence form D. Continuance
Answer: (A)
For total disability, a workers compensation policy will pay how much?
A. 100% of the injured employee’s wages
B. 50% of the injured employee’s wages
C. 66 2/3% of the injured employee’s wages, up to certain maximums
D. $7,000
Answer (C)
If the coinsurance requirement is met, the Commercial Building and Personal Property form does not automatically provide coverage for all of the following EXCEPT?
A. Business income insurance
B. Personal property of others in your care, custody and control
C. Newly acquired property
D. Outdoor property
Answer: (A)
Your house burns down because your neighbor negligently burned leaves on a windy day. Your HO policy will pay for your loss and then \_\_\_\_\_\_\_\_\_\_\_ to your neighbor to recover the amount paid. A. Pro-rata B. Associate C. Subrogate D. Other insurance
Answer: (C)
A careless person represents which type of hazard? A. Covert B. Moral C. Morale D. Physical
Answer (B)
Business income insurance covers which of the following? A. Personal injury liability B. Property damage C. Loss of learning D. Additional expenses
Answer: (A)
When an insured needs more coverage that provided by his CGL, what should you recommend? A. Purchase an umbrella polity B. Hope for the best C. Save money with the bank D. Purchase another CGL
Answer: (A)
When 2 liability policies cover the same loss, how is payment of the claim determined? A. 80% clause B. Equally C. Co-insurance equation D. Per the "other insurance" clause
Answer: (D)
On a business auto policy, which accurately describes a hired auto?
A. Employee’s own personal cars
B. One that a business owner or employee rents when he/she is out of town on business
C. The business owner’s personal vehicle
D. The business’ cars
Answer: (B)
An insured, who is aware of a water leak, eventually turns in a claim for his ruined floors. Which of the following statements is true?
A. This is covered under the ECE
B. This is covered only on the Special form
C. This is not covered because the damage occurred over a period of time and this damage was not accidental or unexpected, the insured was aware of the water leak
D. This is covered under section II of the HO
Answer: (C)
All of the following are true about an HO-6 EXCEPT
A. It does not include coverage A
B. Coverage C’s limit must be declared by the insured
C. The HO-6 is a condo form
D. It includes coverage B
Answer: (C)
Paint fumes escaping over a period of time is an example of a what? A. Risk B. Peril C. Accident D. Occurrence
Answer: (B)
Something that a customer states exists and will continue to exist in the future is called a what? A. Guaranty B. Omission C. Representation D. Warranty
Answer: (D)
All of the following are reasons that insurers offer deductibles, EXCEPT: A. Eliminate small claims B. Hold down premiums C. To make coverage more available D. To increase claims
Answer: (D)
Which of the following is a synonym for Comprehensive General Liability? A. Commercial General Liability B. Congruent General Liability C. Complete General Liability D. Cumulative General Liability
Answer: (C)
Homeowners liability covers all EXCEPT? A. Personal liability for property damage B. Medical payments C. Personal liability for bodily injury D. Employers' liability
Answer: (D)
If a part was made in the USA, a CGL will provide liability coverage for the product where? A. USA only B. USA and Canada C. Anywhere in the world D. USA, Canada and Mexicl
Answer: (B)
A farmer has been over spraying his orchard for several years, damaging the trees in the orchard next door. What is this an example of? A. A peril B. An occurrence C. An accident D. A loss
Answer: (B)
The covered perils would be found in which part of the policy A. Conditions B. Insuring agreement C. Declarations D. Exclusions
Answer: (C)
On property insurance, when parties cannot agree on the amount of a claim, either party may invoke which provision? A. The pro-rata liability clause B. The arbitration provision C. The co-insurance clause D. The appraisal provision
Answer: (D)
What is the purpose of insurance? A. To retain risk B. To insure the chance of gain C. To profit D. To restore the client financially
Answer: (D)
If a store owner hires a janitorial service to clean the floors and a customer slips and falls on the wet floors and sues the store owner, which portion of the store owners CGL would apply? A. Premises and operations liability B. Products and completed operations C. Assumed liability D. Independent contractors
Answer: (D)
The cause of loss Basic form covers all of the following EXCEPT A. Broken glass B. Sinkhole collapse C. Vandalism D. Sprinkler leakage
Answer: (A)
On a mobile homeowners policy, which of the following is INCORRECT?
A. The policy includes contents coverage
B. The policy covers wind
C. The policy covers the cost of moving or relocation
D. The policy includes liability coverage
Answer: (B)
The term cause of loss Basic form describes what kind of a policy?
A. BAP
B. Commercial Building & Personal Property
C. CPP
D. Dwelling policy
Answer: (A)
Of the following, which is CORRECT about coverage C on a dwelling policy?
A. Coverage C is other structures
B. Coverage C is fair rental value
C. Coverage C is not included unless listed on the declaration page and a premium is charged
D. Coverage C is always included
Answer: (A)
All of the following are true about casualty insurance binders of coverage EXCEPT:
A. Binders are valid only for a specified period of time
B. Binders must contain all the provisions of the standard fire policy
C. A mortgage company is required to accept the renewal of a binder
D. Binders may be oral or in writing
Answer: (C)
A PAP coverall all, EXCEPT:
A. An auto mechanic test driving your car
B. Your friend driving your car
C. A trailer
D. Your unlicensed 15 year old son driving your car
Answer: (C)
If I drop a lamp, but no one is injured, which of the following is CORRECT?
A. This is not considered an accident
B. This is an occurrence
C. This is something that happens over a period of time
D. This is an accident
Answer: (D)
On an Umbrella policy, the retention limit acts like a what? A. Deductible B. Other insurance clause C. Co-insurance clause D. Pro-rata liability
Answer: (A)
Which of the following is and accurate definition of an occurrence?
A. Something that is sudden and unforeseen
B. Something that is never covered by the policy
C. Something that could happen over a period of time
D. Something that occurs due to lack of foresight
Answer: (C)
When a claimant states the truth to the best of his or her knowledge, it is called a : A. Oath B. Warranty C. Guarantee D. Representation
Answer:
On a mobile homeowners policy, coverage D is how much? A. 30% of C B. 5% of C C. 10% of A D. 30% of A
Answer: (C)
Coverage provided by Part D of a personal auto policy is which of the following? A. 100% of the loss B. Effective after 60 days C. Replacement cost basis D. Actual cash value
Answer: (D)
You may purchase workers compensation from all of the following, EXCEPT: A. A reciprocal insurance exchange B. A mutual company C. A stock company D. The state compensation fund
Answer: (A)
On an HO, if your daughter hits her ball through your neighbor’s window, which of the following statements is CORRECT?
A. It is covered under Coverage C
B. It is excluded on your HO
C. It is only covered if it was on purposes
D. It is covered under property damage liability
Answer: (D)
If a commercial business wants coverage for their liability related to vacant land what should the owner purchase? A. Products and Completed operations B. Contractual liability C. Premises and operations liability D. Independent contractors
Answer: (C)
