Terms

Question 1

Bid Bonds

Answer 1

Often used in the bidding of a construction project. The bid bond promises that a contractor will accept it and a performance bond will then be issued.

Question 2

Completion Bonds

Answer 2

Used if a contractor is required to borrow money to finish a construction job. The bond guarantees that the money will be used to complete the job without any additional obligations.

Question 3

Labor and Materials Bonds (Payment Bonds)

Answer 3

Guarantees work and materials will be delivered without any liens.

Question 4

Performance Bonds

Answer 4

Guarantees the principal will complete and fulfill their contract.

Question 5

Supply Bonds

Answer 5

Guarantees a supplier will furnish all agreed upon supplies, materials and equipment.

Question 6

Contract Bonds

Answer 6

Guarantee the performance of written contracts, like those used for construction.

Question 7

License and Permit Bonds

Answer 7

Generally required by the state and local governments. They guarantee that an individual with a permit will comply with the laws, regulations and ordinances set forth with the use of their permit.

Question 8

Appeal Bonds

Answer 8

Necessary if an individual appeals to a higher court after their judgment, It guarantees that their judgment will be paid along with their appeal cost.

Question 9

Attachment Bonds

Answer 9

Attach the assets of another party and they guarantee that if an attachment was wrong then any suffered damages will be paid.

Question 10

Bail Bonds

Answer 10

Issued to secure the release of an individual from jail for a courtroom hearing. They guarantee that an individual will appear in court.

Question 11

Cost Bonds

Answer 11

Guarantee that a plaintiff that brings legal action against another will be able to pay full court costs and any damages if the plaintiff loses their case.

Question 12

Injunction Bonds

Answer 12

Necessary by courts when a person seeks an injunction against another party. It guarantees that if the injunction was wrong, damages will then be paid to the injured party.

Question 13

Public Official Bonds

Answer 13

Obtained by public officials and written to cover the liability of the public officials’ elected terms.

Question 14

Motor Vehicle Bonds

Answer 14

Provide written validity of the financial responsibility of Motor Vehicle Laws.

Question 15

Workers Compensation Self-Insurers bonds

Answer 15

Allows employers to self-insure their Workers Compensation benefits.

Question 16

Dwelling Property Coverages

Answer 16

A - Dwelling
B - Other Structures
C - Personal Property
D - Fair Rental Value
E - Additional Living Expenses

Question 17

Homeowners Coverage Forms

Answer 17

HO-2 - Broad Form
HO-3 - Special Form
HO-4 - Contents Broad Form
HO-5 - Comprehensive Form
HO-6 - Condominium Unit Owners
HO-8 - Modified Coverage Form

Question 18

Homeowners Property Coverages

Answer 18

A - Dwelling
B - Other Structures
C - Contents (Personal Property)
D - Loss of Use (Fair Rental Value)

Question 19

Homeowners Liability Coverages

Answer 19

E - Personal Liability

F - Medical Payments to Others (Good Will Coverage)

Question 20

Farm Coverage Forms

Answer 20

A - Dwelling
B - Other Private Structures
C - Household Personal Property
D - Loss of Use
E - Scheduled Farm Personal Property
F - Unscheduled Farm Personal Property
G - Other Farm Structures

Question 21

Personal Auto Policy (PAP)

Answer 21

A - Liability Coverage
B - Medical Payments Coverage (PIP)
C - Uninsured Motorists Coverage
D - Coverage for Damage to Your Auto (Physical Damage) - Collision
E - Other than Collision (OTC)

Question 22

Business Owners Policy (BOP)

Answer 22

Business Owners Section I - Property
Business Owners Section II - Liability
Business Owners Section III - Common Policy Conditions

Question 23

Commercial General Liability (CGL)

Answer 23

A - Bodily Injury and Property Damage
B - Personal and Advertising Injury
C - Medical Payments

Question 24

Workers Compensation and Employers Liability Insurance Policy

Answer 24

General Section (Similar to Declarations)
Part 1 - Workers Compensation Insurance
Part 2 - Employers Liability Insurance
Part 3 - Other States Insurance
Part 4 - Your Duties if Injury Occurs
Part 5 - Premium
Part 6 - Conditions

Question 25

Symbol 1

Answer 25

Any auto, including owned, leased, hired or borrowed autos (used only for liability coverage)

Question 26

Symbol 7

Answer 26

Specifically described autos only - all newly acquired auto must be added within 30 days Personal Auto is 14 days

Question 27

Symbol 8

Answer 27

Hired autos only (used for liability and physical damage coverage only) Ex. Pizza delivery

Question 28

Symbol 9

Answer 28

Non-owned autos only (used for liability coverage only) Ex. Rental car

Question 29

Symbol 21

Answer 29

Any auto (Liability and Medical Payments Coverage only)

Question 30

Symbol 27

Answer 30

Specifically described autos - newly acquired auto must be added within 30 days

Question 31

Symbol 30

Answer 31

Autos left for service, repair, storage or safekeeping (used to provide garagekeepers coverage) Ex. When you drop your car off to get serviced

Question 32

Symbol 31

Answer 32

Dealer’s auto and autos held for sale by non-dealers or trailer dealers (physical damage coverage) Ex. Cars at an auto dealership

Question 33

Symbol 41

Answer 33

Any auto (used only for Liability coverage)

Question 34

Symbol 46

Answer 34

Specifically described autos

Question 35

Symbol 48

Answer 35

Trailers in an insured’s possession under a written trailer or equipment interchange agreement (used only for physical damage coverage)
- Person / business who is renting / using the trucks or trailers

Question 36

Symbol 49

Answer 36

Your trailers in the possession of anyone else under a written interchange agreement (used only for physical damage coverage)
- UHAUL who rents trucks out to others

Question 37

Symbol 59

Answer 37

Mobile equipment subject to compulsory, financial responsibility or other Motor Vehicle Insurance Law