Practice Test Study

Question 1

When force or threat of harm is used to steal something it is called?

Answer 1

Robbery

Question 2

When something is broken into and you can tell that they broke into the place that is?

Answer 2

Burglary

Question 3

A common exclusion in a liability policy is damage caused by

Answer 3

Acts of civil disobedience and riots

Question 4

Symbol two on the automobile declarations is

Answer 4

Owned autos only

Question 5

According to Worker’s Compensation insurance everybody is subject to workers comp laws except

Answer 5

A crew member of a ship

Question 6

And extended reporting. Provides coverage for claims made outside the policy term

Answer 6

Extended reporting. Attached to a general liability policy provides coverage for claims made outside the policy term

Question 7

A bond that will guarantee work will be done on time I a specific party is a

Answer 7

Surety bond

Question 8

When does coverage begin for a builders risk form?

Answer 8

On the date construction starts above the lowest basement floor if there is a basement.

Question 9

Limits of insurance on dwelling policies that apply to coverage D-the fair rental value are
20%

Answer 9

20%

Question 10

Federal crop insurance is sometimes called

Answer 10

Residual market insurance

Question 11

Different HO Policy forms.
HO-1
HO-2 - HO broad form
HO-3 - HO special form

Answer 11

HO-4 - covers tenants
HO-5 -
HO 6 - covers personal property of a condominium owner

Question 12

Homeowners special form (HO-3) covers personal property and the homeowners broad form (HO-2) does not.

Answer 12

HO

Question 13

Merchandise while it is being manufactured is generally not covered by?

Answer 13

Inland marine insurance

Question 14

Under dwelling policy conditions how does the insurance company settle a loss?

Answer 14

The company has the option to repair to pre-loss condition

Question 15

DP 2 policy covers everything except damage to?

Answer 15

Awnings from weight of snow.

Question 16

Damage by ice to outdoor equipment is excluded as a covered loss under the?

Answer 16

DP-3 coverage

Question 17

The special limit of coverage on a homeowners policy form for property damage to personal watercraft is...
A. 1,000
B. 1,500
C. 2,000
D. 2,500

Answer 17

B

1,500

Question 18

Insuring an engagement ring given to your fiancé is
A. Allowed
B. Not allowed

Why?

Answer 18

Not allowed because you do not have an insurable interest in the ring once you give it to someone else

Question 19

If a woman slips on icy steps and breaks her leg. Which of the following is the peril in the situation?
A. the icy steps
B. the fall
C.the time of year

Answer 19

The fall is the peril in this situation

Question 20

All of the following describes blanket property insurance coverage except
A. All nonowned property
B. A particular item insured
C. Everything at the store
D. Items at multiple locations

Answer 20

B. A particular item insured does not describe blanket property insurance coverage

Question 21

Who determines what stated value is? Is it an appraisal, the insured, or the insurer?

Answer 21

The insured stipulates the value of property.

Question 22

What term applies to a policy that pays first went to policies cover the same property?

Answer 22

Primary.

Primary insurance pays first when two policies cover the same property.

Question 23

What does an application for insurance contractually represent for the insured?

Answer 23

An offer

Because you can decide if you want it or if you don’t want it.

Question 24

The terrorism risk insurance act and the national flood insurance program are similar by providing the following

Answer 24

Subsidies, Loss sharing or excess coverage

Question 25

Provisions are NOT an element of a valid contract

Answer 25

Provisions are NOT an element of a valid contract

Question 26

Which of the following is an unfair claims settlement practice A.misrepresentation of policy provisions
B. failure to respond to a first notice of loss within 24 hours?

Answer 26

B.

Failure to respond to the first notice of loss within 24 hours is not an unfair claims settlement practice.

Question 27

A policy condition applies when an insurer covers property losses at cash value rather than an amount that exceeds the repair replacement value is called the
A. loss payment condition
B. Loss settlement condition

Answer 27

B. Lost settlement condition is a policy condition that applies when an insurance covers property loss is a cash value rather than an amount that exceeds the repair or replacement value

Question 28

Worker’s Compensation coverage is rated on the basis of

Answer 28

Employers payroll