QUIZ Flashcards
How many days after terminating the appointment of an agent must an insurer notify the Director of the terminaition?
30 DAYS AFTER THE EFFECTIVE DATE OF THE TERMINATION DAY
The Personal Articles Floater is similar to which of the following endorsements?
The PAF and Scheduled Personal Property Endorsement to Homeowner’s Policy are nearly identical.
What is the name for an insurer authorized to write insurance policies in a particular state?
Admitted
An admitted insurer is authorized to transact insurance in a state by that state’s insurance dept, as evidenced by a certificate of authority to transact business.
Including debris removal, what is the maximum an HO-3 policy with a Coverage A amount of $250,000 will pay if a detached garage burns down?
$26250
Coverage B, which covers structures that are not attached, is automatically issued 10% of Coverage A. This means the Coverage B total is $25,000, and the policy allows for an additional 5% for debris removal: $25,000 + 5% or $1,250= $26,250.
Choose the false statement about Medical Payments coverage under the Personal Auto Policy.
A The named insured and family members are covered if injured as pedestrians
B The named insured and family members are covered if injured while occupying any auto
C Persons other than the named insured and family members must be occupying the insured auto in order to be covered
D The policy limit is applied on a per occurrence basis, not per person
D!
Damages for deception will not be awarded:
A If the words spoken or published are unfair and not a matter of public record
B If the words spoken or published are fair and not a matter of public record
C If the words spoken or published are fair and true and a matter of public record
D If the words spoken or published are unfair and a matter of public record
C!
The Personal Auto Policy Collision Coverage applies to which of the following?
A The car you run into, regardless of liability
B Your car only if you are legally liable
C Your car and the car you run into
D Your car, regardless of liability
D!
Collision only applies to a vehicle of the insured and is applied regardless of fault.
Personal injury protection provides all of the following benefits, except:
A Expenses up to $20 per day for obtaining ordinary and necessary services an injured person normally would have performed, providing during the first 3 years after the date of the accident
B Allowable expenses incurred for reasonably necessary products, services and accommodations for an injured person’s care, recovery, or rehabilitation
C Funeral and burial expenses of at least $1,500, but not more than $4,000
D Loss of income from work an injured person would have performed during the first 3 years after the date of the accident if they had not been injured. These benefits are not taxable so they will be reduced by 15%
C! Funeral and burial expenses include an amount of $1,750, but not more than $5,000.
An individual faces the risk of economic loss in the event of property damage because of which of the following?
A Indemnity
B Subrogation
C Insurable interest
D Limit of recovery
C! If there’s a risk of financial loss, there must be insurable interest.
Under the HO-8 policy, the dwelling is valued on which basis?
A Replacement Cost
B Agreed Value
C Actual Cash Value
D Market Value
C! HO-8 Policies value the dwelling on ACV basis
Which of the following best defines short-rate cancellation?
A The insured will receive exactly half of the unearned premium
B The insured will receive none of the unearned premium
C The premium is fully earned by the insurance company
D The insured will receive less than the full amount of the unearned premium
D - The insured will receive less than the full amount of the unearned premium.
With short rate cancellation, the premium refund is based upon a short-rate table in which the insurer retains a portion of the unearned premium.
The Additional Coverages part of a property insurance policy provides:
A The insured the right to request additional coverage to supplement the policy after paying an additional premium
B The company the right to voluntarily waive the deductible
C Coverage that supplements the basic coverages in the insuring agreement which is automatically included without an additional premium
D The insured the right to request that extra coverage be provided by endorsement
C - Coverage that supplements the basic coverages in the insuring agreement which is automatically included without an additional premium.
Additional coverages are automatically included in property policies without an additional premium. The type of additional coverages depends on the type of policy. Additional coverages are paid in addition to those stated in the insuring agreement and include debris removal, collapse, and fire department service charges.
Which of the following statements regarding the payment of commissions for the sale of insurance contracts is correct?
A There are no circumstances in which a unlicensed individual may receive a commission
B It is illegal to accept commission if one is not licensed, but it is not illegal to offer one
C An individual must be a licensed health insurance producer in order to earn a first year commission for selling a Medicare Supplement policy
D An insurance agent may not assign commission to an agency
C - An individual must be a licensed health insurance provider in order to earn a first year commission for selling a Medicare Supplement policy.
The issue here is WHEN the commission is earned. One has to be licensed to earn a commission by making a sale, but the payment may be deferred to a later time when the individual is no longer licensed.
During the time that a transportation network company driver is engaged in a transportation network company prearranged ride in Michigan, all of the following types of automobile insurance satisfy the financial responsibility requirements, except:
A Residual third party automobile liability insurance with a minimum combined single limit of $1 million for all bodily injury or property damage.
B Personal protection insurance in the amount and type of coverage required
C Property protection insurance in the amount and type of coverage required
D Scheduled personal property insurance in the amount and type of coverage required
D - Scheduled personal property insurance in the amount and type of coverage required.
Scheduled personal property insurance is not relevant to a transportation network prearranged ride.
How many days’ notice must an insurer provide before cancelling an auto policy that has been in effect for longer than 55 days?
A
30
B
20
C
60
D
10
A - 30
No cancellation is effective unless a written notice of cancellation is mailed to the insured at least 20 days prior to the effective date of cancellation.
