Questions You Missed On Tests Flashcards
1
Q
A participating insurance policy may do what?
A
Pay dividends to the policy owner.
2
Q
Who is responsible for assessing the financial ability of insurers?
A
Superintendent
3
Q
Joe would like to cancel his HO insurance policy. He requests that the insurer does so, and is told that the insurer will refund the unearned premiums on what basis?
A
Short-rate
4
Q
I’m dwelling policies, automatic increase in insurance is…
A
Coverage by endorsement.
5
Q
The most the insurer will pay for a loss under a businessowners policy is…
A
The limit of insurance after the deductible is paid.
6
Q
What property coverage would provide protection to contents damaged by fire?
A
Coverage C - Personal Property
7
Q
Which endorsement under an Equipment Breakdown policy is used for calculating the amount to be paid on a lost business claim after a direct loss?
A
Business Income - Report Values
8
Q
A small restaurant was forced to close for 10 days in August when the power company’s transformer was destroyer by lightning, and the restaurant was without electricity. What endorsement could be added to the businessowners policy that would provide protect against loss of income from such events?
A
Utility services - Time element endorsement
9
Q
Under Coverage C of a farm policy, what is the limit payable on business property located away from the premises?
A
$1500
10
Q
The major portion of the premium for an equipment breakdown policy pays what?
A
For inspections and examinations
11
Q
If more than one person has an insurance interest in the property covered under a dwelling policy, what happens?
A
The insurer will be liable for only the insured’s interest in the damaged property.
12
Q
Limited fungi, wet or dry rot, or bacteria endorsement in HO policies applies to what?
A
Property and liability losses
13
Q
A $100,000 house insured on a policy with an 80% coinsurance requirement has a fire that caused $40,000 of damage; the owner has a policy with $60,000. How much can the owner collect for his loss?
A
$30,000
(For the total amount of a partial loss to be paid, a house must be insured for at least 80% of its value on the date of loss. In this case, because the house is insured for only $60,000 -75% of the minimum requirement-, the policy will only pay 75% of the loss or $30,000.)
14
Q
Which of the following claims would be included under the dwelling policy?
A
Fire damage to the insured’s rowboat stored in the attached garage.
(Rowboats and canoes are covered under the dwelling policy as personal property.)
15
Q
A businessowners policy is…
A
A self contained prepackaged policy.
16
Q
How much is covered for debris removal under the HO property additional coverages?
A
All reasonable costs
17
Q
Which of the following types of property would be covered in HO coverage forms?
A) Landlord furnishings in an on-premises apartment
B) Structures used for business purposes
C) Structures rented to others who are not tenants of the dwelling
D) Animals, birds, or fish
A
Landlord furnishings in an on-premises apartment.
18
Q
What is the limit of coverage for a direct loss caused by a mine subsidence?
A
$300,000
19
Q
All of the following are conditions commonly found in the insurance policy except: A) Insuring agreement B) Cancellation and nonrenewal C) Subrogation D) Appraisal
A
Insuring agreement
20
Q
In the event of a loss covered under mine subsidence coverage, the deductible is set at:
A
A minimum of $250
21
Q
When an insurer makes truthful statements on the application for insurance and pay the required premium, it is known as what?
A
Consideration
22
Q
Which of the following statements is not true regarding mobile agricultural machinery and equipment coverage?
A) It covers detached parts and accessories of mobile devices.
B) It insured eligible equipment for open perils.
C) This coverage must be written as part of farm coverage.
D) It relates to devices used in the everyday farm operation.
A
This coverage must be written as part of farm coverage.
23
Q
Which of the aviation insurance coverages can be written to exclude coverage for losses arising from crashes or collisions?
A
Hull insurance
24
Q
An ocean marine loss that occurs through the voluntary sacrifice of a part of the vessel or cargo to save the ship, crew, or other cargo is known as:
A
General average
25
In the event that an insurer is going to cancel a commercial property or casualty insurance policy, who must receive written notice of their intent to cancel?
Both the first names insured and the writing agent
26
Frank’s Steaks furnishes meat to steakhouses. An accident on the premises causes the building to lose refrigeration for 32 hours. The state inspectors will not allow the meat in the refrigerating units to be sold for human consumption, and Frank loses $18,500 in disposing of the meat. What coverage under Frank’s BOO policy will cover the lose?
Utility service - direct damage
27
All of the following are optional coverages that may be attached to an HO-3 policy except:
Dwelling replacement cost
28
Which of the following is not covered under accounts receivable coverage form?
A) Interest on loans required to offset in collectible amounts pending payment of the insurance proceeds
B)Sums due the insured are uncollectible due to a covered loss.
C) Expenses to reestablish the records, if possible, and collecting expenses that are in excess of normal costs
D) Any loans required to offset uncollectible amounts
Any loans required to offset uncollectible amounts
29
How many days after being licensed to place business transactions in Ohio must an insurer have an anti fraud program in place?
90 days
30
Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce:
Without receiving written consent from an insurance regulatory authority
31
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
32
If an insurer makes a change to broaden coverage in a dwelling policy while it is in effect, the change will apply:
Automatically
33
What is the required limit of insurance in the coinsurance clause for Coverage F - Unscheduled Farm Personal Property?
80%
34
What covers a carrier for liability for loss to cargo while it is being transported in a truck?
Motor truck cargo policy - truckers form
35
The cost of restoring farm records is an additional coverage offered under a farm policy. How much will the policy pay to restore the records?
Up to $2000
36
The Federal Fair Credit Reporting Act...
Regulates consumer reports
37
Workers compensation rating is developed by applying a rating bureau job classification rate to each...
$100 of payroll
38
Which of the following is an example of a producer being involved in an unfair trade practice of rebating?
A) Making a deceptive statement about a competitor
B) Telling a client that his first premium will be waived if he purchases the insurance policy today
C) Inducing the insurer to drop a policy in favor of another one of when it is not in the insured’s best interest
D) Charging a client a higher premium for the same policy as another client in the same insuring class
Inducing the insured to drop a policy in favor of another one when it is not in the insured’s best interest
39
Which authority is not stated in an agent’s contract, but is required for the agent to conduct business?
Implied
40
Workers compensation statutes require employers to meet capital reserves requirements sufficient to pay any claims that might arise. Employers can meet such obligations through all of the following except:
A) assigned risk plans
B) competitive state funds
C) second injury funds programs
D) self insurance plans
Second injury funds programs
41
What endorsement is used by individual business owners who use company vehicles for personal use rather than purchasing a personal vehicle?
Individual named insured
42
What type of compensatory damages will pay for pain and suffering and disfigurement?
General
43
In the event of a loss cover d under mine subsidence coverage, the deductible is set at..:
A minimum of $250
44
The personal injury liability endorsement to an HO policy applies to all of the following except:
A) invasion of privacy
B) false arrest
C) a third party breaks a leg in when the insured knocks him down
D) slander
A third party breaks a leg when the insurer knocks him down
45
The designation symbols used in commercial auto policies can be found in which policy section?
Definitions
46
The transfer of money from inside a banking premises to a person other than a messenger outside of those premises or to a place outside those premises is covered under which commercial drive coverage?
Computer fraud
47
A small trucking company stops transporting hay for area farmers and begins to haul hay for its own farm exclusively. In regard to the cover on its truck, which of the following is true?
A) farm liability coverage applies
B) business auto coverage form may apply
C) any coverage form applies
D) coverage can continue under the trucks coverage form
Business coverage form may apply
(Businesses that use their vehicles to care their own goods are called private carriers and cannot be covered under the trucks coverage form. Private carriers must obtain coverage for their trucks through the business auto form or the motor carrier form.
48
All of the following statements regarding a boat owners policy are true except:
A) Watercraft liability protects up to a specified limits for claims against a “covered person” for damages due to BI caused by a watercraft.
B) Physical damage coverage is provided on an ACV basis.
C) Perils are insured on an open peril basis, providing that the insurer will pay for direct and accidental loss to the property insured.
D) Replacements for the boat lister in the declarations are automatically covered, if the insured notifies the insurer within 60 days and pays the additional premium.
Replacements for the boat lister in the declarations are automatically covered, if the insured notifies the insurer within 60 days and pays the additional premium.
(Have 45 days to notify)
49
All of the following are parts of a PAP except:
A) liability coverage
B) physical damage coverage
C) medical payments coverage
D) duties after a loss
Physical damage coverage
50
Which of the following would not be considered part of the insured location under the liability section of a HO policy?
A) a residence where an insured is temporarily residing
B) a family cemetery plot
C) a lakeside cabin rented by the insured for vacation
D) vacant farmland owned by the insured
Vacant farmland owned by the insured
51
When is a hired and non owned auto liability endorsement available a BOP?
Only if the insured does not have commercial auto coverage
52
Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages?
Special
53
What limit, shown in the declaration of a policy, applies to medical expenses?
Per person
54
The other insurance provision that limits the liability of the insurer to a portion of the loss no greater than the amount the insurer bears to all the insurance covering the property is called:
Pro rata liability
55
Under the fair credit reporting act, if the consumer challenges the accuracy of the information contained in their report, the agency must...
Respond to the consumer’s complaint.
56
The pro rata liability clause is designed to protect the principal of...
Indemnity
57
Bob sustained a work-related injury. Within what period of time must a claim be filed in order for benefits to be issued properly?
2 years
58
All of the following people would be considered insureds under the liability section of HO policy except:
A) the 22 year old niece of the insured who is visiting.
B) a 15 year old foster child residing on the premises.
C) the mother of the insured who is residing in the household.
D) the legal representative of a deceased insured
The 22 year old niece of the insured who is visiting
59
All of the following are additional liability coverages automatically provides in a HO policy except:
A) personal injury
B) claims expenses
C) damage to the property or others
D) loss assessment coverage
Personal injury
60
ABC trucking company recently purchased XYZ manufacturing company. ABC wants to transport the new company’s freight with their trucking division. The company also wants to continue to haul freight for the clients it has served for many years. In regard to coverage, which of the following is true?
A) Motor carrier coverage is needed.
B) The company must choose between being a private carrier and a common/contract carrier.
C) Truckers coverage form is needed.
D) A truckers coverage form is needed along with the business auto coverage form.
Motor carrier coverage is needed.
61
Who is covered under farm Coverage J?
Resident employees
62
Which of the following statements is true regarding commercial general liability policy’s Coverage C- Medical Payments?
A) The coverage provides high limits of insurance for BI losses.
B) The coverage is considered good will because payments are made without regard to fault.
C) The coverage applies to BI to the named insured.
D) The coverage is liability insurance because it pays only if the insurer is legally liable.
The coverage is considered good will because payments are made without regard to fault.
63
The amount an insurer will pay under Coverage D (Loss of Use) depends on:
The amount of coverage on the dwelling.
| Loss is use is usually limited to a percentage of the overall dwelling or personal property coverage.
64
All of the following are other coverages included in both broad and special form dwelling policy except:
A) lawn, trees, shrubs, and plants
B) theft of personal property
C) collapse
D) breakfast of glass
Theft of personal property
| Can only be included by endorsement.
65
An insured has $5000 of medical coverage on a PAP at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs $7000 for the insured, $4000 for the first passenger, and $8000 for the second passenger. How much will the policy pay under the medical payments coverage?
$1400
| Up to $5000 per person, per accident.
66
What dwelling policy forms primarily insures a structure on an ACV basis?
DP-1
67
All of the following are true or Coverage B - Other Structures except:
A) It must be added by endorsement to a HO policy.
B) This coverage is not applicable on the HO-4 policy form.
C) The amount of coverage provided by Cover B is an amount equal to 10% of Coverage A.
D) Land where the other structure are located is not covered.
It must be added by endorsement to an HO policy.
68
Which of the following claims would be included under the DP?
A) theft of the insured’s auto from the detached garage
B) death of the insured’s pet caused by smoke inhalation.
C) fire damage to the insured’s rowboat stored in the attached garage.
D) fire damage to a garage located in the insured premises used as an auto repair shop.
Fire damage to the insured’s rowboat stored in the attached garage.
(rowboats and canoes are covered under the DP as personal property.)
69
Under the PAP, liability for BI resulting from the insured’s use of a non owner auto is:
Provided by the insured’s policy on an excess basis.
70
Personal property coverage under an HO policy covers:
The insured’s camera if it is stolen while the insured is on vacation.
71
First aid costs for others injured in the insured premises...
Are paid in addition to the liability limit.
72
Which of the following is not true regarding a temporary license in this state?
A) It can be issued to a designer when a licensed agent enters active U.S. military service.
B) It can be issued to a spouse of the deceased agent.
C) It does not require a written examination.
D) It will continue for 180 days even if the owner disposes of the business.
It will continue for 180 days even if the owner disposes of the business.
73
Which of the following would not be covered by medical payments to others in Section II of your HO policy?
A) You allow the neighborhoods kids to play flat food all in your yard; one is injured.
B) You cut your leg while whacking weeds in your backyard with your neighbor’s weed whacked.
C) Your child’s nanny falls while walking down your steps.
D) You are waking your neighbor’s dog and it bites someone.
You cut your leg while whacking weeds in your backyard with your neighbor’s weed whacked.
(Medical payments to others covers invitees, residence employees not covered by workers compensation, and injury to others caused by animals in your control. If you hurt yourself, accident and health insurance would be needed for your injuries.)
74
An insurance producer who by contract is bound to write insurance for only one company is classified as a:
Captive agent
75
HO policies provide coverage for:
Business property while on the residence premises.
76
Because an agent is using stationary with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of the insurer. What type of agent authority does this describe?
Apparent
77
Johanna purchased a National Flood insurance policy 10 days after her community entered an emergency program. When would her coverage be effective?
12:01am the day after the application and premium payment are mailed.
78
What kind of liability does one have if they own a pool?
Absolute
79
The purpose of FAIR plans is:
To provide property insurance to those who can not obtain it in the normal market.
80
An insured is involved in an auto accident in another state. The state has a financial responsibility law that specified limits of liability higher than the limits shown in the declarations. What amount will the insured’s policy pay?
Higher limits
81
If a person is using an auto with the belief that he is entitled to do so, subrogation rights under a PAP would apply to all coverages except:
Physical Damage
82
All of the following are true regarding physical damage coverage except:
A) The limit of liability is the greater of the ACV of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle.
B) Losses to non owned autos will be covered the same as the broadest coverage available for any covered auto, except non owned trailers are limited to $1500.
C) The policy will pay up to $20 per day to a max of $600 for rental transportation.
D) The insurer will pay for direct and accidental loss to a covered auto minus any applicable deductible.
The limit of liability is the greater of the ACV of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle.
83
In addition to purchasing an auto liability insurance policy, financial responsibility may be proven by...
Purchasing a liability bond that meets the motor vehicle department requirements.
84
A boat owners policy does not cover:
Nuclear hazards
85
Which of the following statements is not true regarding a personal umbrella liability policy?
A) It provides errors and omissions coverage for an agency.
B) It may cover certain exposures not provided under the primary layer.
C) It may require the payment of a self insured retention.
D) It provides excess liability coverage over underlying personal liability.
It provides errors and omissions coverage for an agency.
86
A common exclusion found under physical damage to your auto includes:
Mechanical breakdown
87
A person filed a report about an insurance fraud practice. The person could be sued for civil damages by which of the following?
A) no one
B) the superintendent
C) a law enforcement official
D) the NAIC
No one
88
Which of the following is not covered under accounts receivable coverage form:
A) Expenses to reestablish the records, if possible, and collection expenses that are in excess of normal costs.
B) Any loans required to offset uncollectible amounts.
C) Interest on loans required to offset uncollectible amounts pending payment of the insurance proceeds.
D) Sums due the insured that are uncollectible due to a covered loss.
Any loans required to offset uncollectible amounts.
(Loan principal amounts are not covered under the form. However, other expenses, such as interest on necessary loans, are covered.)
89
Which inland marine form would provide the best protection for a dry cleaning company against loss or damage to their customer's property while in the care, custody, and control of the dry cleaners?
Bailee's customer policy
(A bailee's policy does not cover property of the insured, but does cover their customer's property while in the care of the insured.)
90
In a watercraft policy, which coverage part will respond to a claim for damages for BI or PD for which the insured becomes legally liable because of a watercraft accident?
Part A
| Part A is Liability Coverage.
91
Which of the following are the authorities that an agent can hold?
Express and implied
92
Who is responsible for assessing the financial ability of insurers?
Superintendent
93
Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect property from further loss, or defense expenses?
Additional coverage
(The additional coverage portion of a policy provides an additional amount of coverage for specific loss expense, at no additional premium.)
94
Each person licensed as an agent or solicitor is required to complete how many hours of approved continuing education every 2 years?
24
95
The property condition that precludes the insured from simply turning over damaged property to the insurer and claiming a total loss is called:
Abandonment
| Until the insurer has determined that the loss is total, the insured must protect the property from further loss.
96
Which loss listed below would be fully covered by an HO policy?
A) $2000 silver tea set stolen
B) $1200 pedigreed golden retriever stolen
C) $24000 bass boat destroyed in a tornado
D) $5000 firearm collection stolen
$2000 silver tea set stolen
| Tea sets and firearms are covered up to $2500; boats are covered up to $1500; animals are not covered.
97
How many hours of continuing education must be completed in ehtics?
3
98
Who has the rights to veto the repair facility for a vessel?
The underwriter
99
How much coverage is provided under an HO policy for theft or unauthorized use of a credit card?
$500
100
Which common policy condition prohibits the insured from changing the rights or duties as defined under the policy to any other person or entity without the written consent of the insurance company?
Transfer of rights and duties under the policy
101
A farmer is remodeling his 100-year-old farmhouse. He is in the process of painting the porch and hanging shutters. He keeps his ladder, paint, and other materials used to remodel his home under the porch. What coverage provides coverage for his remodeling materials?
Coverage A
102
Under the additional living expenses coverage, if a civil authority prohibits the insured from using the dwelling because of direct damage to a neighboring location from a peril covered in the insured's policy, loss would be covered for up to:
2 weeks
103
If the insured owns a water valued at $10000, full coverage can be provided on an HO policy by purchasing the:
Scheduled personal property endorsement
104
A business using its own trucks to move its own cargo would insure the cargo using:
Motor truck cargo - owners form
105
In the event of a loss covered by the policy, the insurer requests a signed sworn proof of loss, the named insured is required to submit it within:
A specified time (usually within 60 days)
106
Which of the following causes of loss would not be covered under a BOP form?
A) Tornado
B) Earth movement, power failure, and flood
C) Riot, sprinkler leakage, or sinkhole collapse
D) Fire or lightning
Earth movement, power failure, and flood
107
What is the max number of rooms or boarders for properties insured under the dwelling policy?
5
108
Which situation would not be covered by the basic Causes of Loss form under a CPP?
A) The automatic fire protective sprinkler system inside New Realities Book Shop leaks, causing damage to the store.
B) Gordon's Motorcycle Heaven is damaged by the sudden sinking of land created by the action of water on limestone.
C) The Surf Side Club Waterfront Restaurant is damaged when flood waters rise and seep into the restaurant.
D) Piccolo Pete's Cafe has its door broken by vandals trying to get inside.
The Surf Side Club Waterfront Restaurant is damaged when flood waters rise and seep into the restaurant.
(Damage caused by flood, surface water, mudslide, water that backs up from a sewer or drain, or ground surface water that seeps through foundations, basements, doors, or windows is not covered.)
109
Which of the following is true regarding examination of financial affairs of insurers?
A) Examinations are conducted by the NAIC.
B) Examinations must be conducted at least annually.
C) Examination expenses are the responsibility of the insurer.
D) The Superintendent must examine all insurers: domestic, foreign, and alien.
Examination expenses are the responsibility of the insurer.
110
Farm fences (except field and pasture fences) are covered by which farm coverage form?
Coverage G
(Fences, except pasture and field fences, are considered other farm structures and are covered by Coverage G - Other Farm Structures.)
111
Which type of insurance is based on mutual agreements among subscribers?
Reciprocal insurance
112
What limit, shown in the declarations of a policy, applies to medical expenses?
Per person
113
Coverage J under farm coverage agrees to pay reasonable medical expenses, regardless of fault, caused by an accident if the expenses are incurred and reported to the insurer within how many years of the accident date?
3 years
114
Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report:
Must be informed of the source of the report.
115
The voluntary compensation endorsement provides statutory coverage for which type of employees?
Farmworkers
116
What type of liability would a person who owns wild animals have?
Absolute
117
Which crime coverage form is used to cover securities held in trust by another party as collateral for some obligation?
Coverage J - Securities Deposited with Others
118
What liability exposures is most likely for a small specialty clothing retail boutique?
Premises liability exposure
119
Which policy condition in HO policy states that insurance applies separately to each insured?
Severability of insurance
120
Workers compensation laws provide all of the following types of benefits except:
A) Rehabilitation benefits
B) Death benefits
C) Compensatory benefits
D) Medical benefits
Compensatory benefits
121
Rita drops off her wedding gown at Vicky's Dry Cleaners for a final pressing. The store's press breaks, so Vicky takes Rita's dress to her other store across town. On the way to the other store, Vicky is held at gunpoint until she gives the man the wedding dress. What crime coverage form would pay for the loss of the gown in this situation?
Extortion - Commercial Entities
122
Which of the following would be considered an insured under a business auto coverage form?
A) A partner of the named insured for any covered auto owned by that person or a member of his or her household
B) Anyone while using, with permission, a covered auto owned by the named insured
C) The owner or anyone else from whom the named insured hires or borrows a covered auto
D)Anyone using a covered auto while working in a business of selling, servicing, repairing, or parking autos if it is not the named insured's business
Anyone while using, with permission, a covered auto owned by the named insured
123
As you leave the dock in your yacht, you carelessly cut in front of another yacht, causing its crew to change course. They run into a buoy damaging their boat. What coverage takes care of the damages?
Your P&I
(Your protection and indemnity coverage pays for damage to other vessels not caused by collision. The collision clause of your hull policy would pay for damage to other vessels you collide with.)
124
When a vehicle travels from one state to another, what happens to the limits of policy liability in a person auto policy?
They do not change.
125
How much will Workers Compensation pay for funeral benefits?
$5500
126
Under the PAP, liability for BI resulting from the insured's use of a nonowned automobile is:
Provided by the insured's policy on an excess basis.
(Auto insurance follows the insured auto, so the coverage written on the auto is primary. Auto insurance also follows the insured as excess over other collectible insurance.)
127
The designation symbols used in commercial auto policies can be found in which policy section?
Covered Auto
128
Which of the following describes contributory negligence?
A) The time period in a claim must be filed.
B) Negligence is apportioned between both parties in an accident.
C) The voluntary assumption of exposure to risk.
D) Any degree of negligence by the injured party may bar recovery.
Any degree of negligence by the injured party may bar recovery.
129
Extended nonowned coverage endorsement in a PAP broadens which of the following coverages?
Liability and medical payments
130
An insured owns and operates a ranch. The insured has several vehicles that are used in the ranching operation and for personal use. Which of the following could not be insured under a person auto policy?
A two-ton grain truck with 6,500 pound capacity.
| A truck cannot exceed 10,000 pound GVW.
131
All of the following are parts of PAP except:
A) PD coverage
B) Medical payments coverage
C) Duties after an accident or loss
D) Liability coverage
Physical damage coverage
132
What type of info would be found in a policy's insuring agreement?
Renewal dates
133
Any licensed person who activities affect interstate commerce and who knowingly makes false statements related to the business of insurance may be imprisoned for up to:
10 years
134
In PAP, the medical payments coverage is similar to:
Accident insurance, because it pays medical expenses regardless of fault.
135
The difference in contents coverage on an HO-3 and HO-5 is what?
Contents are covered on open peril on HO-5, and named peril on HO-3.
136
In the PAP, owned trailers being towed by an insured auto are automatically covered for:
Uninsured motorist coverage
| Also is automatically covered for BI and PD.
137
How is the Insurance Guaranty Association funded?
By its members - authorized insurers
138
The broad theft coverage endorsement on the dwelling form specifies all of the following limitations except:
A) $1000 on silverware
B) $200 on money
C) $1500 on securities
D) $1500 on jewelry
$1000 on silverware
| The limit on silverware is $2500.
139
Several insureds have become liable because of a single loss. How will the policy's limit of liability be affected?
No more than the per occurrence limit applies, no matter how many insureds are involved.
(The insurance applies separately to each insured. The condition does not increased the insurer's liability for any one occurrence.)
140
All of the following are characteristics of the DP policy except:
A) Dwellings up to four family units are eligible.
B) The dwelling must be owner-occupied.
C) Coverage includes the dwelling only, contents only, or both.
D) Incidental occupancy of limited service-type exposure is permitted.
The dwelling must be owner-occupied.
141
An insured has a PAP with both other-than-collision and collision coverage. His car is stolen, and recovered five days later. If the insured claims transportation expenses of $20 per day, how much will his policy pay?
$60
| The policy will pay $20 per day after 48 hours, not to exceed 30 days in total.
142
Additional coverages in the liability section of an HO policy cover all of the following except:
A) Damage to a third-party property for which the insured is legally liable.
B) Claims expense
C) Expenses the insured incurs rendering first aid for BI to third parties.
D) Damage to the property of others.
Damages to a third-party for which the insured is legally liable.
(Legal liability coverage is a primary liability coverage, not an additional coverage.)
