Questions Got Wrong on Practice Exam Flashcards
Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses?
A. Exclusions
B. Declarations
C. Insuring Agreement
D. Additional Coverage
D. Additional Coverage
The additional coverage portion of a policy provides an additional amount of coverage for specific loss expense, at no additional premium.
Which of the following personal auto coverages would pay for the insured’s travel expenses and loss of earnings while involved in the settlement process of a covered loss?
A. Comprehensive coverage
B. Collision Coverage
C. Liability Coverage
D. Medical Payments
C. Liability Coverage
Supplementary payments, found in Part A - Liability, include expenses incurred by the insurred by the insured at the insurer’s request, including $200 per day for attending trials of hearings.
In return for premium, an insurance company must
A. Give the insurer valuable consideration
B. Be fair in underwriting and pay covered losses
C. Provide the insured with coverage adequate for all potential losses
D. Use standardized tables of coverage for specific risks to be excluded from coverage
B. Be fair in underwriting and pay covered losses
In return for premium, an insurance company must be fair and impartial in underwriting of risks and must pay claims made for all covered losses.
All of the following are true of Coverage B - Other Structures in homeowners policies EXCEPT
A. The amount of coverage provided by Coverage B is an amount equal to 10% of Coverage A
B. Land where the other structures are located is not covered
C. It must be added by endorsement to a homeowners policy
D. This coverage is not applicable on the HO-4 policy form
C. It must be added by endorsement to a homeowners policy
Homeowners policies automatically provide an amount of insurance in Coverage B that is equal to 10% of the amount written in Coverage A. This amount may be increased by endorsement.
