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Insurance Pre Exam > Part 2 P & C > Flashcards

Part 2 P & C Flashcards

0
Q
  1. The commercial conditions include a condition called “Liberalization” The effect

A. To require the insurer to liberally construe the other commercial property
B. To protect the insured from policy cancellation
C. To automatically apply broader coverage to the commercial
D. Allow the insurer to set property

A

C. To automatically apply broader coverage to the commercial

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1
Q
  1. Which of the following would be known as the process whereby an insurer determines appropriate charges for its policies

A. Underwriting
B. Rate - Making
C. Premium factoring
D. Marketing

A

B. Rate making

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2
Q
  1. With regard to insurance applicability the word “risk” can be best defined as which of the following?
A. The increase in the probability of a loss occurring
B. The cause of the loss
C. The uncertainty of a financial loss
D. The uncertainty associated with
 a loss occurring
A

D. The uncertainty associated with a loss occurring

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3
Q
  1. Which of the following is the best definition of an insurers loss reserve?

A. The dollar amount received by an insurer for coverage provided
B. The dollar amount an insurance comp must pay to close out a claim
C. The dollar amount of claims paid divided by earned premiums, excluding loss adjustment expenses
D. The approximate dollar amount of an insurer’s liability of

A

D. The approximate dollar amount of an insurer’s liability of at least one open claims

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4
Q
  1. An Insurance comp pays a loss and continues coverage of the auto policy.. He/She received ticket more than 36 months ago.. Why is the claim paid and the policy continued?

A. The insurer, by law, must pay the claim because the policy was in force
B. The insurance code states that the insurer must take action prior to a loss
C. The concealment in this situation was unintentional
D. The concealed facts were not material. They would have to paid the claims anyways

A

D. The concealment facts were not material

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5
Q
  1. What is the minimum discount percentage for the “good driver” discount?

A. 25%
B. 10%
C. 20%
D. 5%

A

C. 20%

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6
Q
  1. If an insured with a PAP has an accident in a state with personal injury protection, how does the policy respond?

A. Coverage automatically is broadened to provide PIP
B. PIP coverage is provided only for medical providers in that state
C. Coverage remains as written
D. The insured may apply for the additional PIP coverage within 10days of the accident

A

A. Coverage automatically is broadened to provide PIP

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7
Q
  1. The limited Mexico endorsement applies to trips to Mexico with duration of:

A. 14 days or less
B. 7days or less
C. 10days or less
D. 2days or less

A

C. 10days or less

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8
Q
  1. if an insured under a Personal Auto Policy leaves a covered auto at an auto dealer for repairs, and the auto is involved in an accident while being test drive by an employee of the dealer, how will the personal auto policy respond to liability claims?

A. The personal auto policy is excess
B. The Personal Auto Policy will share w the dealer policy on a pro-rata basis
C. There is no coverage under the personal auto policy
D. The personal auto policy is primary

A

A. The personal auto policy is excess

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9
Q 
10. Lee has a PAP with $250 deductible collision and $100 deductible other than collision coverage.. He runs a stop sign and hits another car. There is $1300 worth of damage to his car.. How much would the insurer pay for the damage to Lee's car?
$1300-$250=$1050
A. $1200
B. $950
C. $1050
D. Nothing
A

C. $1050

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10
Q
  1. What is the minimum number of days that an insurer must give an insured, prior to canceling a policy for non-payment?

A. 30 days
B. 10days
C. 20days
D. There is no minimum

A

B. 10days

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11
Q
  1. All of the following are considered an uninsured motor vehicle, according to policy definitions found in a personal auto policy, Except:

A. A vehicle that was driven by a hit and run driver, who cannot be identified
B. A vehicle that is self-insured because it’s owned by a state agency
C. A vehicle that has no personal auto liability or bond required by law
D. A vehicle that is covered by a PAP

A

B. A vehicle that is self insured because it’s owned by a state agency

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12
Q
  1. Which of these is not included in definition of “uninsured motor vehicle” in a pap?

A. a vehicle which was the cause hit and run
B. Vehicles insured by an insurance comp
C. Vehicles that are owned by an agency of the state self-insurances the vehicle
D. Vehicles not protected an auto

A

C. Vehicles that are owned by an agency

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13
Q
  1. The term assignment refers to:

A. The insurer’s right to collect damages from 3rd party
B. The insurance policy applying to each insured
C. The insured right to receive broad new coverage from the insurer at no charge
D. The transfer of the insureds interest in a policy to another party

A

D. The transfer of the insureds invest in a policy to another party

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14
Q
  1. What course of action does a party to a contract have of the other party is found to be in breach of that contract?

A. Damaged caused by the breach
B. Nothing, unless the injured party can prove the damages
C. Reasonable attorney fees and costs only
D. Damages for breach, reasonable attorney fees and cost

A

D. Damages for breach, reasonable attorney fees and costs

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15
Q
  1. What clause is commonly used to require insured to purchase insurance close to the value of the property

A. Valuation clause
B. Deductible clause
C. Coinsurance clause
D. Reinsurance clause

A

C. Coinsurance clause

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16
Q
  1. What’s effect of the “concurrent Causation” exclusion under the causes of loss broad form in a commercial property policy

A. Only the primary peril causing the loss is covered
B. No coverage if the loss is caused concurrently w
C. If there’s a loss resulting from two or more perils that occur at the same time then there is “NO coverage”
D. if there is loss from two or more perils when there’s full coverage

A

C. There is a loss resulting from two or more perils. then there is no coverage

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17
Q
  1. What type of insurance company is owned by individuals that are stockholders in the company and share in the profits of the company?

A. Reciprocal ins comp
B. Assessment ins comp
C. Mutual ins comp
D. Stock ins comp

A

D. Stock ins comp

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18
Q
  1. All of the flowing explain the characteristics that are unique to ins contracts.. Except:

A. All relevant facts must be disclosed
B. Because the insured must accept the contract
C. Only the insurer must perform under certain conditions
D. There’s an equal exchange of amounts or value w/in the contract

A

D. There’s an equal exchange of amounts or value w/in the contract

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19
Q
  1. During the application process for a PAP the applicant says he has not had any tickets or accidents.. What is the reason for the course of action of the insurer ?

A. The insurer is required by law to pay all claims
B. Traffic tickets do not have to be disclosed
C. The traffic tickets that were not disclosed were not material..
D. None of the above

A

C. Not disclosed were not material

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20
Q
  1. Under cal ins code.. the marketing dept is responsible for all of the following, EXCEPT:

A. Bulking mailing
B. newspaper advertising
C. offering other insurance products
D. emailing ins quotes

A

A. Bulk mailing

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21
Q
  1. When may a representation be withdrawn?

A. It can never be withdrawn
B. Only after the policy is in effect
C. At any time as long is in effect
D. Only before the insurance is in effect

A

D. Only before the insurance is in effect

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22
Q
  1. A representation as to the future is considered?

A. Promise
B. Provision
C. Liability
D. Description

A

A. Promise

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23
Q
  1. Which of the following statements is true regarding insurers with admitted status in cal?

A. They must file for an exemption with the insurance comm
B. They may not use race, color, religion, or national origin
C. They may use any rating methods
D. They may use race, color, religion

A

B. They may NOT use race, color, religion, or national

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24
Q
  1. All of the following are requirements for a notice by mail to an insured by an insurer, EXCEPT:

A. Notice must be sent w return receipt required
B. Notice must be addressed to the person
C. Postage must be prepaid
D. Notice must be mailed to residence

A

A. Notice must be sent w return receipt req

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25
Q
  1. CA Insurance code requires property insurance policies specific all of the following info, EXCEPT:

A. The insureds risks of perils
B. A description of the insured property
C. The policy period
D. The insured’s address

A

D. The insured address

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26
Q
  1. Applicant for a fire and casualty license, life agent license or personal lines agent?

A. A sales training course provided by the insurance dept
B. A contract law course at any approved college location
C. A diversity awareness course provided by the state of CA
D. A 12hr course on ethics and the CA code

A

D. 12 hr course on ethics and CA code

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27
Q
  1. Where is most states require insurers to file forms?

A. The federal governnt Ins regulatory committee
B. The independent ins ass of america
C. The insurance dept
D. The insurance services office

A

C. The insurance Dept

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28
Q
  1. What does mean of an agent license is inactive?

A. The agent can still transact ins
B. The agent cannot transact any ins..
C. The agent can transact ins
D. The agent can transact any ins

A

B. The agent cannot transact any ins business

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29
Q
  1. The company that negotiates and binds ceding reinsurance on behalf of an insurer is considered?

A. An insurance specialist
B. A third party admin
C. A managing general agent
D. An insurance solicitor

A

C. A managing general agent

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30
Q
  1. What must a licensee do in order to surrender for cancellation a license in their possession?

A. Notifying in writing any insurer
B. Deliver the document itself to the commissioner
C. Give the commissioner at least 60days
D. Destroy the original and advise the state of cal

A

B. Deliver the document itself to the commissioner

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31
Q
  1. Surplus lines broker is involve w

A. Admitted insurers, liability insurances only
B. Admitted insurers, property ins only
C. Non-Admitted insurers, life and disability ins
D. Non-Admitted insurers, property and casualty ins

A

D. Non-Admitted insurers, property and casualty ins

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32
Q
  1. Insurance broker is?

A. Any agent that writes more difficult to place business
B. Someone employed by a fire and casualty broker agent
C. Someone paid to transact ins on behalf of another persona
D. Someone appointed to transact

A

C. Someone paid to transact insurance on behalf of another person

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33
Q
  1. If an insured signs a claim form for a claim which is fraudulent, the insured may be guilty of:

A. misrepresentation
B. Perjury
C. Nothing if the claim is never paid
D. Obstruction of justice

A

B. Perjury

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34
Q
  1. How’s an insurance broker defined according to the cali ins code?

A. An individual who is appt and employed
B. An individual who is appt by specific ins
C. An individual who receives compensation for transact
D. An individual who is appt to transact

A

C. An individual who receives compensation for transacting

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35
Q
  1. When does the authority o transact ins that is granted to a license become effective?

A. When the insurance comp representative signs the notice of appt
B. When receives approval for the apt
C. When gives approval of the appt
D. When licensee receives written

A

A. When the ins comp representative signs the notice of appt

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36
Q
  1. Which of the following statements is true the materiality of representation and concealment

A. The degree of materiality
B. Materiality has no effect
C. Its determined by the contract
D. Disadvantage of the contract

A

C. Disadvantage of the contract

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37
Q
  1. All fore and casualty broker agents must not be licensed w the DOI

A. When the agent receives the notice of appt and license doc
B. When DOI receives a copy of the appt paper
C. When the DOI approves the appt of the licensee by the insurer
D. When the notice of appt is signed by the insurer

A

D. When the notice of appt is signed by the insurer

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38
Q
  1. When does the license of a fire and casualty broker agent become inactive?

A. when an agent/broker has no appointment with any insurance comp
B. When the broker/agent no longer transact or sells insurance
C. When the broker/agent doesnt renew their license upon its exp
D. These are all situations where a license becomes inactive

A

A. When the broker/agent has no apptm w any insurance comp

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39
Q
  1. All of the following factors can be used according to the ins code cal to determine auto ins policy rates?

A. The number of miles driven annually by the insured
B. The age of the insured
C. The driving safety record of the insured
D. 1 and 3 only

A

D. 1 and 3 only

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40
Q
  1. Hit and run accident under the Uninsured Motorist Property Damage coverage PAP?

A. License number of the hit and run vehicle
B. Photographs identifying the hit and run vehicle
C. Testimony of an eyewitness to the accident
D. Legal affidavit describing the accident

A

A. License number of the hit and run vehicle

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41
Q
  1. Car A is an accident with a Car B. “A” suffers $10k of damage but its determined that “A” is 25% responsible for the accident.. How much “A” receive under comparative negligence rules??

A. $7,500
B. $10,000
C. $0
D. $2,500

A

A. $7,500

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42
Q
  1. When does a personal Auto Policy require the insured to notify the police?

A. For thefts only
B. For hit and run accidents and thefts
C. There’s is not requirement to notify the police
D. For all accidents and thefts

A

B. For hit and run accidents and thefts

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43
Q
  1. Extended non-owned liability coverage?

A. Liability
B. Liability and medical payments
C. Liability and physical damage
D. Liability, medical payments, and Uninsured motorist

A

B. Liability and medical payments

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44
Q
  1. Unendorsed PAP not returned within 48 hrs of theft??

A. $20
B. $10
C. $30
D. None

A

A. $20

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45
Q
  1. Which of the following losses would be covered under Dick’s PAP other than collision?

A. Someone shoots Dick’s car rear window
B. Dick’s suitcase is stolen from his car
C. The sides and top of Dick’s car are damage
D. Dick locks his keys in the car

A

A. Someone shoots Dick’s car rear window

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46
Q
  1. The personal auto policy territory limits include:

A. Mexico city, mexico
B. London, England
C. Montreal, Canada
D. Tokyo, Japan

A

C. Montreal, Canada

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47
Q
  1. In ref to the coverages provides in the basic form, the Boat Owners Policy is similar to what other ??

A. The commercial Ocean Marine Policy
B. The homeowner Policy
C. The PAP
D. A commercial Inland Marine Policy

A

C. The PAP

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48
Q
  1. Newly acquired motorcycles are not automatically covered under a PAP because:

A. Motor are too dangerous to ensure
B. Motor cannot be insured under the PAP
C. Motor are insured under a Homeowners policy
D. The unendorsed policy does not cover two wheeled vehicles

A

D. The unendorsed policy does not cover two wheeled vehicles..

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49
Q
  1. Under liability portion of an unendorsed PAP, what coverage is a available if the named insured is operating a company car on a regular basis?

A. The broadest coverage of any of the autos listed in the declarations
B. The financial responsible coverage limitations
C. The policy excludes this usage
D. The coverage of the vehicle primarily operated by the named insured

A

C. The policy excludes this usage

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50
Q
  1. Livery conveyance is best describe as a:

A. Share the expense carpool
B. Vehicle for hire to transport property
C. Vehicle for hire to transport people
D. Commercial vehicle with more than 4 weeks

A

C. Vehicle for hire to transport people

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51
Q
  1. A reduction in the value of property that results immediately from damage to the property?

A. Extra Expense
B. Consequential loss
C. Add’t living expense
D. Direct loss

A

D. Direct Loss

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52
Q
  1. Type of loss exposure that include Land and Property attached?

A. Real property loss exposure
B. Personal property loss exposure
C. Attached property loss exposure
D. Liability loss exposure

A

D. Liability loss exposure

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53
Q
  1. Cali DOI uses to approve or disapprove rate filings such as homeowners and automobile?

A. Open competition
B. File and use method
C. Mandated rates method
D. Prior approval method

A

D. Prior approval method

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54
Q
  1. Kim’s car is insured with a PAP. Medical payments w $2k limits.. which is true about the medical payment coverage?

A. $2k in medical exp.. Maximum will pay is $2k to her and $2k for neighbor
B. Kim’s daughter is struck by a car
C. Kim is injured
D. Kim policy will pay nothing

A

A. Medical expenses is $2k

Max pay out is $2k to kim and $2k for neighbor

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55
Q
  1. Limit of liability under a PAP under the section “coverage for damage to your automobile?

A. Replacement cost
B. Guaranteed replacement cost
C. Actual cash value or fair market value
D. replacement cost less deductible

A

C. Actual cash value or fair market value

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56
Q
  1. What kind of coverage would you recommend to one of your insureds who does not own a car, but occasion drives cars that belong to her friends?

A. Extended transportation endorsement
B. Extended non-owner coverage endorsement
C. Named non-owner coverage endorsement
D. These types of exposures would not be insurable

A

C. Named non-owner coverage endorsement

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57
Q
  1. Which is correct regarding why a motorcycle is not automatically covered under a PAP?

A. They’re covered automatically within limitations
B. The risk associated with these types of vehicles does not match
C. A two wheeled vehicle is covered under a Homeowners Policy
D. An unendorsed PAP does not automatically cover two wheeled vehicles

A

D. An unendorsed PAP does not automatically cover two-wheeled vehicles

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58
Q
  1. How would the damage resulting from hail be covered under a PAP?

A. Covered only if the vehicle was parked
B. Covered as a collision
C. Covered as other than collision loss
D. Not covered as it is considered an act God

A

C. Covered as other than collision

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59
Q
  1. An automobile ins comp is permitted to cancel a PAP for which of the following reasons?

A. The insured person attains the age of 65
B. The insured doesn’t send the insurance comp a written notification of an accident
C. The insured’s driver’s license is suspended.
D. Any of these are reasons for an insurance comp

A

C. The insured’s driver license is suspended

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60
Q
  1. Your insured has a PAP that provides medical payments coverage of $2k.. which is true regarding the amount payable under this section of the policy?

A. The insured’s son is hit by a car while skate-boarding
B. The insured’s daughter is hit by a car as she crosses
C. The insured is car pooling to work with her neighbor when they are in an accident.. The insured and her neighbor would each be paid $2k from the policy
D. The insured is injured in an accident while riding as a passenger..

B.

A

C. The insured is carpool to work. The insured and her neighbor would each be paid $2k from the policy

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61
Q
  1. Other than collision coverage of a PAP covers which of the following types of losses??

A. The insured must smash a small rear window
B. The vehicle is damage when its flips over
C. The insured has a suitcase stolen from the back seat
D. The windshield of the vehicle is damage while left overnight

A

D. The windshield of the vehicle is damage while left overnight

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62
Q
  1. State of Cal DOI minimums for liability coverage are 15/30/5. An insured has an accident out of state that has higher financial responsible than Cal.. Which is true??

A. The insured must pay an additional premium for the increased
B. There is no coverage
C. The policy only pays to its limits
D. The policy automatically provides the higher necessary limits

A

D. The policy automatically provides the higher necessary limits w o an extra premium

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63
Q
  1. What’s the limit for sound reproducing equipment under the coverage endorsement for excess sound reproducing equipment audio, visual, and data??

A. $1k
B. $500
C. $200
D. The amount

A

C. $200

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64
Q
  1. Which of these is not included in the definition “uninsured motor vehicle” in a PAP?

A. A vehicle which was the cause of a hot and run accident
B. Vehicles insured by an insurance comp in the state of Cal
C. Vehicles that are owned by an agency of the state that self insures
D. Vehicles not protected an auto liability policy or a bond

A

C. Vehicles that are owned by an agency of the state that self insures

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65
Q
  1. There is exclusion in automobile insurance issues by admitted insurers in Cal regarding coverage in Mexico?? Which is true regarding this endorsement?

A. Its liability coverage, on a primary basis for insureds driving anywhere in the country of Mexico
B. There’s no coverage unless the loss is reported w/in 48 hrs of the occurrence
C. It’s a required endorsement for all personal auto policies
D. It’s liability coverage, on an excess basis, provided for losses that occur in mexico w/in 25 miles of Cal/Mexico

A

D. It’s liability coverage on an excess basis.. within 25 miles of Cal/Mexico

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66
Q
  1. Which coverages are typically provided in a boat owner policy?

A. Physical damage, liability, and medical payments
B. Property, liability, and medical payments
C. Hull, running down, and protection and indemnity
D. Hull and collision

A

A. Physical damage, liability, and medical payments

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67
Q
  1. The watercraft endorsement on a homeowners policy extends coverage for?

A. Liability coverage for watercraft listed on the schedule
B. Liability coverage for all owned watercraft
C. Physical damage and liability coverage for all owned watercraft
D. Physical damage and liability for watercraft listed on the schedule

A

A. Liability coverage for watercraft listed on the schedule

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68
Q
  1. Which is a valid reason for an applicant to purchase an HO3 policy instead of a Dwelling Policy?

A. The property is a six unit with the owner
B. The insured does not want to have personal liability coverage
C. The insured desires broader coverage
D. The insured wants to pay a lower premium

A

C. The insured desires broader coverage

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69
Q
  1. What is the primary difference between an HO2 and HO3 policy?

A. The policy territory
B. The property coverage
C. The perils insured against
D. The liability coverage

A

C. The perils insured agaisnt

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70
Q
  1. Which of the following persons is not an insured under Section 1 of a Homeowners Policy?

A. The named insured’s (Non-resident) spouse
B. The named insureds resident 25yrs old nephew
C. The named insure
D. The named insured’s (resident) spouse

A

A. The named insured’s (non-residents) spouse

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71
Q
  1. Which of the following perils is included in the broad form, but not in the basic from?

A. Sprinkler leakage
B. Falling objects
C. Volcanic action
D. Sink hole collapse

A

B. Falling objects

72
Q
  1. Additional coverage are available under the scheduled personal property endorsement that are not available under an unendorsed Homeowners policy?

A. Damage to a camera
B. Theft
C. Breakage of glassware caused by an earthquake
D. Vandalism to artwork

A

C. Breakage of glassware caused by an earthquake

73
Q
  1. Jack, condo owner wants a fore and allied lines coverage for personal property, liability coverage for him and family members.. Which homeowners form would you recommend?

A. HO2
B. Ho4
C. HO3
D. HO6

A

D. HO6

74
Q
  1. Under a building and personal property coverage form, building has been vacant for more than 60 consecutive days, what effect will this have on a vandalism loss?

A. The amount of the loss reduced 15%
B. Loss reduced 60%
C. The loss is excluded
D. There is no effect

A

C. The loss is excluded

75
Q
  1. What is the primary diff between a HO2 and a HO4?

A. Damage of insured premies
B. Property insured under Coverage A
C. Inside limits of liability for specifies
D. Perils insured against under coverage C

A

B. Property insured under coverage A

76
Q
  1. How much coverage if any is available under HO3 for landlords furnishing?

A. $2500
B. $1000
C. $2000
D. No coverage

A

A. $2500

77
Q
  1. What Additional coverage does a DP2 have compared to a DP1?

A. Improvements, alterations, and additions
B. Debris removal
C. Personal liability
D. Additional living expenses

A

D. Additional living expenses

78
Q
  1. what items of personal property are included in Coverage A under an HO3 policy?

A. Lawnmower used to maintain the exterior premises
B. Detached fences
C. Decorative fountains
D. Paint on the premises to be applied to the interior

A

D. Paint on the premises to be applied to the interior

79
Q
  1. What is one peril included in a DP2 that is not included in a DP1?

A. Fire
B. Explosion
C. Falling Objects
D. Lightning

A

C. Falling objects

80
Q
  1. Under a standard (ISO) HO3 real property and personal property are covered for the perils on:

A. All risk coverage applies to both
B. Broad form named perils coverage applies to personal property
C. Broad form named perils coverage
D. All risks coverage applies to real property, broad form named perils coverage

A

D. All risks coverage applies to real property, broad form named perils coverage

81
Q
  1. Damages caused by burglary of personal property are not covered under which dwelling form ( except by endorsement)?

A. Special form
B. Broad form
C. Burglary is covered under all dwelling forms
D. Basic form

A

D. Basic form

82
Q
  1. Which type of policy would provide both property and liability coverage for the owner of a condominium, as well as for assessments following damage to the building and other structures?

A. HO6
B. HO3
C. HO4
D. HO2

A

A. HO6

83
Q
  1. Why would an insured want to use an HO3 policy instead of a dwelling policy?

A. Lower premium is a concern of the insured
B. Personal liability coverage is not needed by the insured
C. The insured occupies one of the units in the dwelling
D. Broader coverage is needed by the insured

A

D. Broader coverage is needed by the insured

84
Q
  1. All of the following are true regarding the Cal Standard form fire ins policy, Except:

A. In situation where the form is not utilized
B. This policy form is rarely used today
C. The content and wording of the policy is stated ins code
D. The exact wording of the standard form

A

C. The content and wording of the policy is stated

85
Q
  1. A standard “unendorsed” HO3 policy would cover which of the flowing types of losses?

A. The insured automobile is stolen from the locked garage
B. Damage to the insured’s boat , when trailer its being towed
C. The insured’s furniture is damage when its removed from the insured’s
D. None of these are covered

A

C. The insured’s furniture is damage when its removed.

86
Q
  1. Renting a 2,500sq foot 2 story home.. which is the following?

A. HO6
B. HO4
C. HO2
D. HO3

A

B. HO4

87
Q
  1. A homeowner Policy, specifically coverage C.. The lower sub limits apply for theft to the following tupes of personal property; Except,

A. Jewelry
B. Silverware
C. Guns
D. Money

A

D. Money

88
Q
  1. All of the following meet the definition of the insured under HO3 policy; Except..

A. An 89-year old uncle residing in the household
B. A 18yr old foster child residing w the insured
C. A 70 yr old grandparent residing in an adult care facility
D. A 20yr old son enrolled as a fill time student

A

C. A 70yr old grandparent residing in an adult care facility

89
Q
  1. Which of the following is a reason why would purchase a Dwelling Policy instead of an HO3?

A. Broader coverage is desired
B. The home is being leased to a tenant
C. Personal liability is not desired
D. Thw dwelling does not meet

A

a. Broader coverage is desired

90
Q
  1. Medical payment coverage in a boat owners policy cover injuries to:

A. Employee of the insured
B. Passenger on another boat
C. Permissive occupants of the insured’s boat
D. Fare paying passengers on the insured boat

A

C. Permissive occupants of the insured boat

91
Q
  1. If an Inland Marine Policy provides coverage for any loss unless its specifically excluded??

A. Controlled
B. Uncontrolled
C. Open perils
D. Named perils

A

C. Open perils

92
Q
  1. Under a scheduled personal property endorsements, loss to stamps is excluded when they are:

A. While the insured is temporary
B. freight comp
C. registered mail
D. located in Canada

A

B. Freight company

93
Q
  1. Under a Yacht policy, protection and indemnity provides coverage for:

A. Extra expense to move vessel
B. The cost to salvage
C. The insured vessel if its damage
D. Liability if the insured vessel strikes a marina and injures a dock worker

A

D. Liability if the insured vessel strikes

94
Q
  1. What are requirements that are permitted to sell the Cali FAIR plan?

A. Agent license in specifically designated geographic area
B. Any type of license to sell insurance
C. Individuals having a fire & Casualty broker agent license
D. That are licensed as fire & casualty in geographic

A

C. Individuals having a fire & Casualty broker agent license

95
Q
  1. Which inland marine floater is most similar to the Scheduled personal property endorsement on a Homeowner policy?

A. Personal ins floater
B. Personal articles floater
C. Personal effects floater
D. Personal property floater

A

B. Personal articles floater

96
Q
  1. The loss under a watercraft endorsement is covered if it arises out of:

A. Rental the watercraft to others
B. The use of a sailboat in a racing competition
C. The use of the watercraft to carry property for a fee
D. The use of the watercraft for a business party

A

D. The use of the watercraft for a business party

97
Q
  1. What exactly do umbrella policies coverage for?

A. Physical damage coverage
B. form property damage
C. Excess liability coverage over two or more underlying
D. Property insurance coverage

A

C. Broad excess liability coverage over two or more

98
Q
  1. Equipment Breakdown ins covers all of the following, EXCEPT:

A. Equipment powered by internal
B. Mechanical equipment used to pro
C. Tools subject to regular replaceme
D. Communications equipment

A

C. Tools subject to regular replacement

99
Q
  1. Hull coverage in a ocean marine policy covers which of the following?

A. The freight charged
B. The ship owners liability
C. Cargo being transport
D. The vessel itself, including engines and fuel

A

D. The vessel itself including engines and fuel

100
Q
  1. If a bartender allows a patron to leave the bar involve in a drunk accident.. What would the bar owner need to cover their liability?

A. Professional liability
B. Host liquor
C. Commercial General Lia
D. Liquor lia

A

D. Liquor Liab

101
Q
  1. Employer has a choice to purchase WC ins from a state fund or a private carrier, the state fund would be called?

A. A competitive state fund
B. A residual fund
C. A private fund
D. A monopolistic fund

A

A. A competitive state fund

102
Q
  1. A CGL Policy is quite broad in scope.. Identify the loss exposure that is covered by an unendorsed CGL.

A. The ownership of an airplane
B. An employee being insured while working
C. An employee accidentally injures a customer
D. An accident while driving an owned

A

C. An employee accidentally injures a customer while working

103
Q
  1. If an insured discovers an occurrence 75 days after the exp of a claim-made CGL policy, what must the insured have in order for the loss

A. Nothing
B. The loss will not be covered
C. Umbrella policy
D. Basic extended reporting period endorsement

A

D. Basic extended reporting period endorsement

104
Q
  1. What is the purpose of the inspections and surveys condition of the CPP?

A. Determine the rate to be charged
B. The premises comply w ADA requirements
C. To ascertian of the premises has maintained
D. To specifying if the premises comply

A

A. Determine the rate to be charge

105
Q
  1. All of the following are covered protection and indemnity Ins, Exempt:

A. Injury to persons
B. Damages to piers
C. Injured passengers on the trip
D. The coat of reasonable measures that insured must take to prevent

A

D. The cost of reasonable

106
Q
  1. The inspections and surveys condition of a CPP is important to the insurer for all of the following reasons, Exept..

A. To determine the insurability
B. To set proper insurance rates
C. Guarantee that the insured is in compliance
D. Make loss control

A

C. Guarantee that the insured is in compliance

107
Q
  1. All of the following are typical exclusions in an Inland marine policy, Except:

A. Wear and tear
B. Electrical breakdown
C. Earth movement
D. Insects or vermin

A

C. Earth movement

108
Q
  1. Which of the following is a common policy condition for a commercial package policy?

A. Pro-rata clause
B. Inspections and surveys
C. Duty to defend
D. Causes of loss

A

B. Inspections and surveys

109
Q
  1. Which of the following is covered by a building and personal property coverage form (BRP)

A. a bridge
B. A dock
C. A light pole
D. A patio

A

C. A light pole

110
Q
  1. The CGL contract contains exclusion for liquor liability..

A. The illegal manufacture
B. The serving of alcohol beverages
C. An insured special loss exposures resulting
D. An insured serving alcohol at such functions

A

C. An insured special loss exposurs

111
Q
  1. The medical expense coverage in a WC policy?

A. Has both a maximum dollar and time limit
B. Does not have a dollar limit
C. Does not have a dollar nor a time
D. Does not have time limit

A

C. Does not have a dollar limit nor a time limit

112
Q
  1. If an insured employee embezzles $10k from the company bank.. Force for the loss to be covered?

A. Employee theft
B. Inside the premises
C. money orders and counterfeit
D. Forgery and alteration

A

A. Employee theft

113
Q
  1. Both CGL policy and the BAP have definitions of the terms “automobile” and “mobile equipment”

A. Are very diff has no effect
B. Are very diff, thus avoiding overlaps or gaps
C. Are the same, thus avoiding
D. Are the same

A

B. Are very, thus avoiding overlaps

114
Q
  1. Which type of crime policy will pay for a loss..

A. Discovery
B. Claims made
C. Occurrence
D. Loss sustained

A

A. Discovery

115
Q
  1. Which of the following is commonly found in liability policies, thus creating the need for inland marine coverage?

A. A valuation clause
B. Debris removal coverage
C. A co insurance clause
D. Care, custody, control exclusion

A

D. Care, custody, control

116
Q
  1. coverage on an annual transit policy which of the following basis?

A. Open peril
B. Named peril
C. Extended coverage
D. Theft only

A

C. Named peril

117
Q
  1. Carrying the insured bank deposit is robbed, What insurance would the insured need to have?

A. Employee theft
B. Outside the premises-theft of money
C. Funds transfer fraud
D. Money orders and counterfeit

A

B. Outside the premises-theft of money

118
Q
  1. Policy pays for bodily injury or property damage which occurs or discovered the policy period?

A. Claims made commercial lia policy
B. Auto liability policy
C. Pollution liability
D. Occurance glp

A

A. Claims made commercial liability policy

119
Q
  1. If the vacancy permit endorsement is added to a building and property coverage form, the vacancy conditions under the basic policy??

A. Waived designated the policy period
B. Waived during the policy period
C. Waived during the permit period
D. Waived only for designated during the permit period

A

D. during the permit period

120
Q
  1. Yours refers to:

A. Any party who has an insurable
B. Only the named insured shown in the declarations
C. The named insured and others
D. Only the first named insured

A

B. Only insured shown in the Declarations

121
Q
  1. All WC policies provide:

A. 24-hr on and off job
B. Adequate retirement
C. Compensation for work related injuries w/o regard to fault
D. Major medical coverage

A

C. Compensation for work related injuries w/o regard to fault

122
Q
  1. Under a Builder Risk form, how much insurance is required to pay any loss w/o penalty??

A. 80% of the completed
B. 100% of the value
C. 80% of the value
D. 100% of the completed value

A

D 100% of the completed value

123
Q
  1. Which coverage protects physicians, surgeon, dentists for their profession act?

A. Errors and omission coverage
B. CGL
C. Employers Lia
D. Malpractice coverage

A

D. Malpractice coverage

124
Q
  1. Which commercial property form contains most of the exclusions that apply to a commercial property?

A. Common policy conditions
B. Causes of loss forms
C. Commercial property conditions
D. Common policy declarations

A

B. Causes of loss forms

125
Q
  1. In a commercial property policy, the comp providing the ins is referred to:

A. “You”
B. “We”
C. A surety
D. NIRT

A

B. “We”

126
Q
  1. A physician is being sued by a patient for misdiagnosing terminal cancer?

A. Personal lia
B. Professional lia
C. Allied lines ins
D. Health ins

A

B. Professional lia

127
Q
  1. Extra exp ins covers:

A. Payroll and other overhead incurred
B. The loss profit a business incur
C. The extra expense that a business incurs to continue
D. Increased expense of repairing

A

C. The Extra expense that a business

128
Q
  1. The ordinance and law exclusion found in property

A. Ir reduces the coverage on any loss
B. The insured may not remove or modify
C. It warrants that an insured
D. It excludes the part of the loss

A

D. It excludes the part of the loss

129
Q
  1. When a state is a company ONLY OPTION.. purchasing of WC ins..

A. A guarantee fund
B. A shared market fund
C. A monopolistic state fund
D. A competitive state fund

A

C. A monopolistic state fund

130
Q
  1. Liability coverage under Boat Owner policies typically exclude:

A. Contractual liability
B. Flotilla Lia
C. Passenger lia
D. Operstions Lia

A

A. Contractual Lia

131
Q
  1. Lines of Ins would cover the loss of net income a business incurs due to a fire?

A. Commercial Prop Ins
B. Business income ins
C. Commercial GL ins
D. Fire and allied lines

A

B. Business income ins

132
Q
  1. Your commercial auto policy needs to coverage for his liability arising out of this employee.. Using his own cars in his business..

A. Instruct all employee not to use
B. Include uninsured motorist
C. Include employers non-ownership liability
D. Require all employees have your insured

A

C. Include employers non-ownership Liability

133
Q
  1. What is revenue minus expense?

A. Net income
B. Gross
C. Net Loss
D. Net profit

A

A. Net Income

134
Q
  1. Causes of loss are covered by Equipment Breakdown Ins. Except:

A. Electrical breakdown
B. Inherent defect
C. Steam boiler explosion
D. mechanical failure

A

B. Inherent defect

135
Q
  1. Difference between a robbery peril and a burglary peril is that burglary peril:

A. May involve force or violence
B. Requires taking property directly
C. Requires physical signs of forcible or exit
D. May occur only

A

C. Forcible or exit

136
Q
  1. JAE Computer comp is being sued by Stack Computer Comp.. for an advertising..misleading

A. Crime ins
B. Professional liab
C Commercial general liab
D. Allied lines ins

A

C. CGL

137
Q
  1. Your insured has a ten yr lease on his store.. He has spent $50k on shelving wall to wall carpeting partitions, lightining, etc… He should purchase:

A. Accts receivable
B. $50k
C. Coverage B personal property
D. Coverage for legal liability

A

C. Coverage B personal property

138
Q
  1. The CGL declarations page. One limit shown is the insured’s general aggregate limit?

A. Is the total limit for any one accident
B. Is the total limit for any occurrence
C. Does Not include the products completed operations aggregate limit
D. is the total of all the other sub limits

A

C. Does not include the products completed operations

139
Q
  1. Claims made CGL policy. which of the following begins when the policy period ends and is activated when the policy is cancelled or not renewed?

A. Supplemental extended reporting
B. Policy period
C. Basic extended reporting period
D. Retroactive date

A

C. Basic extended reporting period

140
Q
  1. The medical expense coverage in a WC policy:

A. Does not have a time or a dollar limit
B. Have both a maximum dollar limit
C. Does not have a time limit, but does have a maximum
D. Does not have a dollar limit, but does have a maximum time

A

A. Does not have a time limit or a dollar limit

141
Q
  1. An apt house is worth $500k. The owner insures it for $300k, The policy has an 80% Coinsurance clause.. There is a $200k loss.. The insurer will pay:

A. Nothing
B. $150k
C. $120k
D. $240k

A

B. $150k

142
Q
  1. The retroactive date of a claims-made professional policy is always:

A. The date that the claims-made policy exp
B. The earliest date an event/loss may occur and still eligible for recovery
C. The effective date for the current policy term
D. The date after which no more claims

A

B. The earliest date an event/loss

143
Q
  1. Fred is named Insured on CPP, Fred burns the building down and is convicted of arson.. Fred’s cpp condition state that:

A. Fred spouse can recover
B. His partner also and insured
C. The mortgagee of the insured property
D. None of the above has the right

A

C. The mortgagee of the insured property

144
Q
  1. If a building is damage during an attempted burglary where money is stolen from a vault.. Which is coverages would cover the loss money?

A. Business personal property
B. Outside the premises
C. Inside the premises-theft money and securities
D. Inside the premises-robbery or safe burglary

A
  1. Inside the premises-theft ofiney and securities
145
Q
  1. Which of the following is NOT listed on CGL declarations page as an Aggregate limit?

A. Pollution liab
B.Products/completed operations limit
C.Bodily injury limit
D. Property damage

A

B. Products/completed operations limit

146
Q
  1. Professionals are exposed to liability for failure to perform their prof duties.. Which of the following would be least likely prospect for PLP?

A. Architect
B. Attorney
C. Pro-basketball player
D. Dentist

A

C. Pro basketball Player

147
Q
  1. The named for a CPP is “Jill Koslin and Edward Koslin DBA, Under the terms of the common policy conditions of the CPP? Who is responsible for the premium payments?

A. Edward
B. Coastline photo shop
C. Jill
D. Both Jill and Edward

A

C. Jill

148
Q
  1. The limit medical expense coverage in a WCP is ?

A. Limited for both the time
B. Not limited for either the time
C. Not limited for the time
D. Not limited for the dollar

A

B. Not limited for either the time and dollar amount

149
Q
  1. Plate glass coverage, which is found in a CPP, contains which of the following characteristics?

A. The broad and special forms have no coverage for glass breakage
B. The basic from has limit
C. The broad and special forms have limited coverage for glass breakage
D. A special form provides full coverage

A

C. The broad and special forms have limited

150
Q
  1. Symbol 7 in a business auto policy??

A. All vehicles
B. Owned autos other than private
C. All autos and trucks larger than 50lbs
D. Autos specifically describe in the policy are covered

A

D. Autos specifically describe in the policy are covered

151
Q
  1. The most optimal way to be sure your client, the owner of a commercial auto would be obtain liab coverage exposures??

A. None of these will work
B. Purchase employers non-ownership liab coverage
C. Purchase both hired care coverage and uninsured motorist
D. Purchase coverage on the emloyees PAP

A

B. Purchase non- ownership liab

152
Q
  1. Type of liab coverage referred to as P&I, which stands for “protection & indemnity” what type of protection does this coverage?

A. Un-seaworthiness of the vessell
B. These are all included under P&I
C. Passenger injuries
D. Other vessels that recieve collision damage from insured vessel

A

D. Other vessel that receive collision damage

153
Q
  1. Which of the following is true regarding the loss of income?

A. It must result in actual damage to the premises
B. It must result from damage by one peril
C. It must be result from damage to insured property
D. It must be result of a peril that is insured the policy

A

D. It must be result of a peril that is insured

154
Q
  1. Which of the following BI or property damage loss exposures is coverage by an unendorsed CGL?

A. Ownership
B. An injured employee working on the preemies
C. Ownership o an auto
D. An employee who causes an injury to a customer while working

A

D. An employee who causes an injury to a customer while in the home

155
Q
  1. Employee dishonesty..

A. Theft of business stock by an employee
B. Product inventory
C. Employee take the stock
D. An employee imposing charges

A

C. Employee take the stock

156
Q
  1. who has the right to request cancellation of a CLP?

A. Anyone given the legal authority
B. The first named insured and the insurer
C. Only the first named insured
D. Anyone named on the policy

A

B. The first named insured and the insurer

157
Q
  1. All of the following are common policy conditions under the CLP, Except:

A. Examination of the insured’s record
B. Surveys and inspections
C. Insured risks and perils
D. Cancellation

A

C. Insured risks and perils

158
Q
  1. Define the term “We” as it is found in the 3 types of property covered under a commercial building?

A. Any one that has insurable or financial interest
B. The insurer as listed in the declarations page
C. The name insured as well as others
D. The first named insured as shown in the policy

A

D. The insurer as listed in the declarations page

159
Q
  1. Your clients owns a business that leases a warehouse and office space.. To protect his financial interests in these items in the event for fire.. which if the following should be utilized on his CPP?

A. Improvements and betterments coverage
B. Firs legal liability coverage
C. $100k increased repl cost
D. $100k increased repl cost coverage

A

A. Improvements and betterments coverage

160
Q
  1. What is it about a liab policy that causes there to be a need for i land marine ocean coverage?

A. Valuation clause
B. The exclusion for care, custody, and control
C. Coinsurance clause
D. Coverage for debris removal

A

B. The exclusion for care, custody, and control

161
Q
  1. The def. of “mobile equipment” and “automobile” ate defined in both CGL policy?

A. Differs, therefore, avoids any overlaps or gaps
B. Differs, therefore, there are no possible
C. There’s mo distinction
D. Are indentical

A

A. Differs, therefore, avoids any over-laps

162
Q
  1. This statement that is true regarding expense coverage in WC Policy is:

A. It has a dollar limit, but not time limit
B. It has a time limit, but no dollar limit
C. It contains an unlimited amount of coverage for both time..
D. None of these are true statements

A

C. Ot contains an unlimited amount of coverage for both..

163
Q
  1. Professional liab ins should be purchased by all of the following categories of professions, Exept:

A. Architects and attorneys
B. Life ins agents
C. A manicurist, cosmetologist
D. Professional athletes and coaches

A

D. Professional athletes and coaches

164
Q
  1. Where is Ocean Marine liab ins found?

A. Ocean marine cargo coverage
B. Ocean marine freight liab
C. Protection and indemnity coverage
D. Comprehensive personal liab pol

A

C. Protection and indemnity coverage

165
Q
  1. A commercial lines policy a number of conditions.. Which of these is not one of these conditions?

A. Rights of the first named insured to cancel the policy
B. Perils insured by the policy
C. Examination of the records and books
D. The insurer may perform inspections

A

B. Perils insured by the policy

166
Q
  1. The term “your”

A. The named insured from the decl page and other people
B. The named insured from the declarations page, exclusively
C. The first named insured
D. Individuals who have insurable

A

B. The named insured from Dec page, exclusively

167
Q
  1. Business income as it is defined under a business income coverage.. The actual losses of business income resulting from suspension.. Which of the following is the formula to determine..

A. Net income of the business minis any income taxes
B. Net income of the business plus normal operating exp
C. Net income of the business plus normal operating exp, including payroll
D. Net income of the business plus normal operating expenses, including payroll

A

D. Net income of the business plus normal operating expenses, including payroll

168
Q
  1. A business owner, who is insured with a Business Auto Policy, is interested in purchasing the necessary liab coverage?

A. Include uninsured motorist coverage
B. Require all employees to include
C. Buy employer’s non-ownership liablity in the BOP
D. This type of explosive cannot be covered

A

C. Buy employer’s non-ownership liab

169
Q
  1. In a CPP, which cause of loss form includes coverage for the peril of glass breakage?

A. The basic and special forms
B. The basic a d broad form
C. The broad and special form
D. Te special form only

A

C. The broad and special form

170
Q
  1. Which of the following coverage parts is NOT found in a standard CPP?

A. The boiler and machinery part
B. The dwelling property coverage part
C. The commercial crime coverage part
D. The commercial property coverage part

A

B. The dwelling property coverage part

171
Q
  1. Which of the following is covered under WC policy?

A. The operations of an owned airplane
B. An employee accidentally getting injured at a customer’s home while working at the customer home
C. An employee accidentally injures a customer while working
D. An accident while driving an owned

A

B. An employee accidentally getting injured at a customer home

172
Q
  1. If a property owner is insured under a building and pp insurance form..

A. When less than 31% of the building space is rented to others
B. When the structure is being renovated as a result
C. When the insured operations are halted
D. When there is insufficient business

A

A. When less than 31%

173
Q
  1. Which of these are covered by an Employee Dishonesty coverage form?

A. Merchandise shortages that are discovered
B. Cash that is lost by an employee who is driving
C. Theft of stock from the business, owned by the policyholder, by an employee
D. Robbery of an employee

A

C. Theft of stock from the business

174
Q
  1. Liabilities losses are referred to as:

A. 1st party
B. 2nd party
C. 3rd party
D. none of the above

A

C. Third party

175
Q
  1. To subrogate is to

A. Participate
B. Litigate
C. Identify
D. Substitute

A

D. Substitude

176
Q
  1. What is Market Value?

A. Wholesale value
B. Stated value
C. Selling price
D. Actual cash value

A

C. Selling price

177
Q
  1. Liberalization clause.. prior to the effective date on dwelling or homeowners policy, the period prior to the effective date is:

A. 15 days
B. 30 days
C. 45 days
D. 60 days

A

D. 60 days

178
Q
  1. On a commercial property form, the period prior to the effective date is:

A. 15 days
B. 30 days
C. 45 days
D. 60 days

A

C. 45 days

Insurance Pre Exam (4 decks)

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