P & C Part 3 Flashcards
- Medical payments under a homeowners policy Section 2 would cover?
A. Insured
B. I sured, spouse, and family residing in home,
C. Insured, family, and guest
D. Guests on the premises
D. Guests on the premises
- Who can never collect under Section 2 of a homeowner policy
A. A person hurt in the premises
B. Neighbor
C. An uninvited guest
D. A resident family member of the insured
D. A resident family member of the insured
- Who would not be considered an insured under a homeowners policy?
A. 75 year old grandfather residing in an adult care facility
B. 90 yrs old uncle living in the home
C. 20yrs old student away at college
D. 16yrs old foster child living in the home
A. 75 yrs old grandfather residing in an adult care facility
- What type of homeowners policy would be purchased to protect a tenant?
A. HO-4
B. HO-6
Cz HO-8
D. HO-3
A. HO-4
- On a homeowner policy, personal property away form the premises will be covered up to what percent of personal property?
A. 10%
B. 20%
C. 50%
D. Full limit of personal property
D. Full limit of personal property
- What is NOT coverage by an HO-3
A. Government action
B. Counterfeit money
C. Volcanic eruption
D. Falling objects
A. Government Action
- If an insured does not property submit a claim for a loss on a homeowners policy, how does this effect the mortgagee?
A. The claim will be paid to the mortgagee, but there is a penalty
B. The claim will be denied
C. The claim will be paid to the mortgagee
D. The insured will be paid the entire claim
C. The claim will be paid to the mortgagee
- The water damage exclusion in the cause of loss-special form-applies to all of the following except:
A. Tidal waves
B. Sewer back up
C. Flood
D. Plumbing system leakage
D. Plumbing system leakage
- What is subsidence in a homeowners policy?
A. Subrogation
B. Substitution
C. Sinking
D. Cessation
C. sinking
- Under ordinance or law (Called Building Code Upgrade Coverage) in an homeowners policy, a limit is already provided as additional ordinance or law coverage. This limit is
A. 5% of the dwelling
B. 10% of the dwelling
C. 20% of the dwelling
D. No additional coverage is available
B. 10% of the dwelling
- A homeowner policy that has a personal article floater attached could cover:
A. Theft of postage stamps
B. Art work worldwide
C. Breakage of glassware caused by an earthquake
D. Damage to a camera caused by the insured
C. Breakage of glassware caused by an earthquake
- Which of the following does not have a standard coverage form?
A. Claims made commercial liability
B. Umbrella policy
C. Homeowner policy
D. Professional liability
B. Umbrella policy
- Under the umbrella insurance policy, the policy will cover.
A. The excess amounts beyond the underlying limits required
B. The umbrella cannot pay any amounts until the underlying
C. The exclusions on the underlying policies will dictate
D. any of the above
A. The excess amounts beyond the underlying limits
- Which of the following is a correct def of coinsurance?
A. Two or more policies that apply
B. A requirement that the insured carry insurance equal to a specified
C. Two more more buildings which are covered under a single policy
D. A clause which allows the insurer to take action against a third party
A. A requirement that the insured carry insurance equal to a specified %
- According to the common conditions of a commercial package policy, the insurer can do an audit of an insured’s book and records:
A. During the policy period and for three months after the expiration
B. Only during the policy period
C. During the policy period and for three yrs after exp
D. Only with the consent of the insured
C. During the policy period and for three years after exp
- Which of the following forms is needed to make a commercial property policy complete?
A. Cause of loss form
B. Inventory
C. Obligations
D. Audit
A. Cause of loss form
- In a commercial property policy, unless otherwise indicated, on what basis are buildings valued?
A. Replacement value
B. Actual cash value
C. Market value
D. Guaranteed replacement cost
B. Actual cash value
- Which of the following losses would be excluded by the ordinance or law exclusion?
A. Confiscation of property
B. Special assessments levied
C. Fines levied by OSHA
D. Additional costs necessary to make a restroom ADA compliant
D. Additional costs necessary to make a restroom ADA compliant
- In a commercial property policy which of the following perils is not covered?
A. Rain
B. Windstorm
C. Riot
D. Vandalism
A. Rain
- In a commercial property in the building and personal property coverage form, coverage A, B, and C refer to:
A. Building, business personal property of the insured, and personal property of others..
B. Business personal property of the insured, building, and other personal property of others
C. Building of premises
D. Building, newly acquired or constructed property
A. Building, Business PP of the insured, and PP of others
- Under a commercial property coverage form, which of the following could be covered?
A. Patio
B. Outdoor fixtures/light pole
C. Foundations of buildings
D. Underground pipes and drains
B. Outdoor fixtures/light pole
- Under a building and personal property coverage form, how much coverage may apply to a new acquired property?
A. nothing
B. $50k
C. $100k
D. $250k
D. $250k
- Which of the following is a coverage extensions under the building and personal property coverage form?
A. Debris removal
B. Business personal property
C. Fire dept service charge
D. Property off-premises
D. Property off-premises
- When is pollutant clean up covered?
A. It is never covered by ins
B. Its covered under a consequential loss endorsement
C. Its automatically covered in all forms of property
D. Its an additional coverage in a commercial property coverage part
D. It’s an commercial coverage in a commercial property coverage
- Under a commercial PP, when would property be covered off premises?
A. At a trade fair
B. On a truck
C. Items on a delivery dock
D. In a building leased by the insured for 5yrs
D. In a building leased by the insured for 5yrs
- A business and PP coverage form w/a vacancy permit allows for what additional coverages?
A. Vandalism and sprinkler leakage
B. Sprinkler leakage and attempted theft
C. Vandalism and attempted theft
D. Sprinkler leakage and glass breakage
A. Vandalism and sprinkler leakage
- A tenant wishes to insure his improvements in a leased property. What would cover his needs..
A. Builder Risk
B. Extra expense coverage form
C. Building and personal coverage form
D. Leashold interest coverage form
C. Building and personal property coverage form
- A commercial plan designed expressly to protect against losses during construction is:
A. Builder’s risk
B. Leasehold interest
C. Legal liability
D. Extra expense coverage
A. Builder’s risk
- Business income insurance covers..
A. Net income, continuing exps, and payroll
B. Gross income
C. Net income, cont exp, minus payroll exp
D. Net income minus taxes
A. Net income, cont exp, and payroll
- A plate glass form sometimes needs to be added to a commercial property policy.. Which is correct about glass coverage under commercial property policy?
A. Glass is not covered under broad
B. Glass has limited coverage under the broad and special coverages for vandalism
C. Glass is covered under the basic coverage for vandalism
B. Glass has limited coverage under the broad and special coverages for vandalism
- Why would someone be in need of adding a boiler and machinery coverage part to a commercial package policy
A. A separate coverage form is needed of ins exclude
B. There’s no need to add boiler and machinery
C. Boiler and machinery offers loss protection
D. Boiler and machinery can be written
A. A separate form is needed as most lines of ins
- A boiler and machinery policy would exclude all of the following except:
A. Interruption of business
B. Lack of power, light, heat, steam
C. Boiler explosion
D. Flood
C. Boiler explosion
- In the course of a burglary, the premises are damaged as well as money being stolen form a safe. What commercial crime coverage would cover both losses?
A. Theft, disappearance, and destruction
B. Premises burglary
C. Employee dishonest
D. Computer Fraud
A. Theft, disappearance, and destruction
- The coverages under a dwelling form policy as compared to a homeowners policy are similar to comparing a commercial property policy to a.:
A. Business income policy
B. Business owners policy
C. Business personal property
D. Commercial general property
B. Business owners policy
- Under the claims made commercial general liability coverage form, the first date an event occur and still be covered under the policy is the.
A. retroactive date
B. Policy expiration date
C. Extended reporting period incept
D. Policy Exp date
A. Retroactive date
- The liability exposure arising out of a business location or activities is known as.
A. Premises and operation hazard
B. Completed operations hazard
C. Products and completed operations hazard
D. Exposure hazard
A. Premises and operation hazard
- An ocean marine policy covers:
A. Hull
B. Cargo
C. Freight
D. All of the above
D. All of the above
- Ocean marine ins does not apply to which of the following?
A. Damage or loss
B. Cargo being transported
C. The charge made for shipping
D. Deviation in the route
D. Deviation in the route
- What law made ship owners liable for bodily injury to a seaman?
A. Inchmaree clause
B. Jones Act
C. Mccarren- Ferguson act
D. IPPA
B. Jones Act
- A yacht is considered to be
A. A commercial policy
B. A personal lines policy
C. An ocean marine policy
D. None of the above
B. A personal lines policy
- Which of the following is not a type of property commonly insured by using a commercial inland marine coverage part?
A. Automobile while kept for the owner in a commercial parking garage
B. Neon signs
C. Acct receivable from customers
D. Jewelry and watches
A. Automobile while kept for the owner in a commercial parking garage
- What type of commercial inland marine ins would cover a dealer’s stock in trade consisting principally of mobile equipment?
A. Floor plan merchandise
B. Commercial articles
C. Equipment dealers
D. Acct receivable
C. Equipment dealers
- What type of ins would cover abstracts, maps, and mortgages?
A. Commercial business
B. Valuable papers and record form
C. Employee dishonesty
D. Business income
B. Valuable papers and record form
- All of the following cod self-fund health ins except?
A. Labor union
B. Fraternal
C. An individual
D. A corporation
C. An individual
- What is true about Cobra?
A. The company can terminate the employee’s
B. Once the employee is no longer part of the group
C. Dependents employees must be given the same conversion and extens
D. All of the above
C. Dependents of employee must be given the same conversions
- Medicare supplement policies as they are regulated by the insurance code are allowed to:
A. Market anything they want
B. Sell only additional coverages and not only the core
C. Whatever federal law allows
D. Offer core benefits.
D. Offer core benefits
- What causes of loss are covered under the business income coverage form?
A. broad form perils only
B. Those included in a business income
C. All perils
D. Those shown on the declarations
D. Those shown on the declarations
- Under the business income coverage form, extra expenses are
A. Covered w/o limit during the period
B. Covered up to the amount they reduce the business income loss
C. Covered up to the monthly limit
D. Excluded
D. Excluded
- If the named insured is not the owner of the building, improvements and betterments are covered under the
A. Newly constructed property
B. Agreed value
C. Building
D. Business personal property
D. business personal property
- All of the following statements concerning business owners policies are true. Except
A. Insureds have the convenience of one policy
B. Insureds have the benefit of additional coverages
C. It contains simpler reading which lower handling costs for insurers
D. It allows insurers to individually underwrite the smaller
C. it contains simpler reading which lower handling
- All of the following are listed on a CGL declarations page, Expt..
A. Pollution liab limit
B. Products and completed opt limit
C. Medical exp limit
D. Personal advertising inj limit
A. Pollution liability limit
- A person w a Commercial policy is burning leaves. The fire gets out of control causing smoke damage to a neighboring prop. The loss is covered by:
A. Building and personal property form
B. Pollution liability
C. Commercial General Lia
D. Not covered
C. CGL
- Which of the following is not a type of property commonly insured by using a commercial inland marine coverage.
A. Neon sign
B. AR
C. Automobiles while kept for the owner in a commercial parking garage
D. Jewelry and watches
C. Automobiles while kept for the owner in a commercial parking
- One example of a loss covered by a business income ins is a loss:
A. of perishable due to a delay
B. Due to depreciation of parts
C. Represented by the diff
D. Of profits due to a suspension of business
D. Of profits due to a suspensions of business
- What type of policy is comparable to commercial property policy coverage as a Dwelling Policy coverage is
A. Business owners policy
B. Commercial general lia
C. Business auto policy
D. Business income w/extra exp
A. Business owners policy
- Under an unendorsed PAP, transportation exp coverage applies to:
A. Other than collision losses only
B. Theft only losses
C. Collision and other than collision losses
D. None.. There’s no coverage
B. Theft only losses
- Under an unendorsed PAP, what coverage is available for personal effects?
A. All personal property in the auto up to $500
B. Luggage up to $200
C. Luggage and clothing up to $500
D. None
D. None
- Damage done by an earthquake to an insured is covered by the PAP
A. Under no circumstances
B. Only if the car was in the insured garage
C. If the other than collision coverage is purchased
D. If the earth movement endorsement is purchased
C. If the other than collision coverage is purchased
- Which of the following collapse losses would be covered under an HO3?
A. Defective workmanship completed two yrs ago
B. Known insect damage
C. Weight of contents
D. Earth movement from a volcanic eruption
- Weight of contents
- A home is damage twp hrs after an earthquake, first by fore, then by fuel pipes busting and causing an explosion. Under an HO3 form:
A. There is no coverage
B. There is coverage, but only for the damage caused by the fire and explosion
C. The policy covers all the damage
D. The policy does not cover the damage
B. There’s coverage, but only for the damage caused by the fire and explosion
- Which of the following perils is insured against in the Special Form, but not in the basic form?
A. Lightning
B. Collapse
C. Internal explosion
D. Fire
B. Collapse
- What additional coverage is provided in a DP3 that is not included in a DP1?
A. Other structures
B. World-wide coverage
C. Collapse
D. Fire dept ser
C. Collapse
- What’s one reason a person may purchase a Dwelling policy instead of a homeowner policy?
A. The owner does not reside in the dwelling
B. The dwelling form provides broader coverages
C. The dwelling is occupied by two families
D. The dwelling form provides greater flexibility
A. The owner does not reside in the dwelling
- A home is damaged two hrs after an earthquake:first by fire, and then by fuel pipes bursting and causing an explosion. Under a homeowner’s HO3 form:
A. No coverage unless the insured has added
B. The policy covers all of the damage
C. There’s no coverage due to the fact that HO3 coverage only named perils
D. There’s coverage, but only for the damage caused by the ensuing fire and explosion
D. There’s coverage, but only for the damage caused by the ensuing fire and explosion
- The dwelling policy form that offers the broadest type of coverage is which of the following?
A. Special
B. Broad
C. Basic
D. Standard
A. Special
- Which of the following does not have a standard coverage form in common use?
A. Professional Liability
B. Umbrella policy
C. Claims made commercial lia
D. Homeowners policy
B. Umbrella Policy
- The theft of the insured’s automobile would be covered under
A. Collision
B. Homeowner
C. Personal property
D. Physical damage coverage
D. Physical damage coverage
