Questions You Missed On Tests Flashcards
A participating insurance policy may do what?
Pay dividends to the policy owner.
Who is responsible for assessing the financial ability of insurers?
Superintendent
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?
Short-rate
I’m dwelling policies, automatic increase in insurance is…
Coverage by endorsement.
The most the insurer will pay for a loss under a businessowners policy is…
The limit of insurance after the deductible is paid.
What property coverage would provide protection to contents damaged by fire?
Coverage C - Personal Property
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?
Business Income - Report Values
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?
Utility services - Time element endorsement
Under Coverage C of a farm policy, what is the limit payable on business property located away from the premises?
$1500
The major portion of the premium for an equipment breakdown policy pays what?
For inspections and examinations
If more than one person has an insurance interest in the property covered under a dwelling policy, what happens?
The insurer will be liable for only the insured’s interest in the damaged property.
Limited fungi, wet or dry rot, or bacteria endorsement in HO policies applies to what?
Property and liability losses
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?
$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.)
Which of the following claims would be included under the dwelling policy?
Fire damage to the insured’s rowboat stored in the attached garage.
(Rowboats and canoes are covered under the dwelling policy as personal property.)
A businessowners policy is…
A self contained prepackaged policy.
How much is covered for debris removal under the HO property additional coverages?
All reasonable costs
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
Landlord furnishings in an on-premises apartment.
What is the limit of coverage for a direct loss caused by a mine subsidence?
$300,000
All of the following are conditions commonly found in the insurance policy except: A) Insuring agreement B) Cancellation and nonrenewal C) Subrogation D) Appraisal
Insuring agreement
In the event of a loss covered under mine subsidence coverage, the deductible is set at:
A minimum of $250
When an insurer makes truthful statements on the application for insurance and pay the required premium, it is known as what?
Consideration
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.
This coverage must be written as part of farm coverage.
Which of the aviation insurance coverages can be written to exclude coverage for losses arising from crashes or collisions?
Hull insurance
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:
General average
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
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
All of the following are optional coverages that may be attached to an HO-3 policy except:
Dwelling replacement cost
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
How many days after being licensed to place business transactions in Ohio must an insurer have an anti fraud program in place?
90 days
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
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
If an insurer makes a change to broaden coverage in a dwelling policy while it is in effect, the change will apply:
Automatically
What is the required limit of insurance in the coinsurance clause for Coverage F - Unscheduled Farm Personal Property?
80%
What covers a carrier for liability for loss to cargo while it is being transported in a truck?
Motor truck cargo policy - truckers form
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
The Federal Fair Credit Reporting Act…
Regulates consumer reports
Workers compensation rating is developed by applying a rating bureau job classification rate to each…
$100 of payroll
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
Which authority is not stated in an agent’s contract, but is required for the agent to conduct business?
Implied
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
What endorsement is used by individual business owners who use company vehicles for personal use rather than purchasing a personal vehicle?
Individual named insured
What type of compensatory damages will pay for pain and suffering and disfigurement?
General
In the event of a loss cover d under mine subsidence coverage, the deductible is set at..:
A minimum of $250
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
The designation symbols used in commercial auto policies can be found in which policy section?
Definitions
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
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.
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)
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
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
When is a hired and non owned auto liability endorsement available a BOP?
Only if the insured does not have commercial auto coverage
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
What limit, shown in the declaration of a policy, applies to medical expenses?
Per person
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
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.
The pro rata liability clause is designed to protect the principal of…
Indemnity
