Types of Casualty Policies, Bonds and Related Terms

Question 1

OCCURENCE

Answer 1

AN ACCIDENT, INCLUDING CONTINUOUS OR REPEATED EXPOSURE TO THE SAME HARMFUL CONDITIONS

Question 2

PERSONAL AND ADVERTISING INJURY PROTECTION

Answer 2

SPECIFIC ACTS THAT RESULT IN A NON-PHSYICAL INJURY TO A THIRD PARTY DUE TO OFFENSES DEFINIED AS PERSONAL AND ADVERTISING INJURIES

Question 3

Medical payments

Answer 3

provide necessary medical, surgical, ambulance, hospital, professional nursing or funeral expenses for injuries to third parties. Considered good will coverage because pmts made without regard to the fault or negligence of the insd. must be incurred and reported within 1 year of the date of the accident.

Question 4

SUPPLEMENTARY PAYMENTS

Answer 4

AMTS THE INSD WILL PAY IN ADDITION TO THE STATED POLICY LIMITS:

• ANY EXPENSES INCURRED BY THE INSURER
• UP TO $250 FOR THE COST OF BAIL BONDS AND BONDS TO RELEASE ATTACHMENTS
• REASONABLE EXPENSES INCURRED BY THE INSURED, INCLUDING UP TO $250 A DAY FOR LOSS OF INCOME
• COURT COSTS TAXED AGAINST THE INSD (NOT INCLUDING ATTY’S FEES OR EXPENSES)
• PREJUDGEMENT INTEREST OR INTEREST THAT ACCURES ON AN JUDGEMENT

Question 5

INSURED DUTIES IN THE EVENT OF AN OCCURENCE

Answer 5

• NOTIFY THE INSURER ASAP OF AN OCCURENCE OR POSSIBILITY OF A CLAIM
• IMMEDIATELY RECORD THE SPECIFICS OF ANY CLAIM OR SUIT BROUGHT, AND NOTIFY THE INSURER
• AUTHORIZE THE INSURER TO OBTAIN ANY RECORDS OR PERTINENT INFO
• IMMEDIATELY SEND THE INSURER ANY DEMANDS, NOTICES, OR SUMMONS RELATING TO A SUIT OR CLAI
• NOT MAKE ANY VOLUNTARY PMTS, ASSUME ANY OBLIGATIONS, OR INCUR ANY EXPENSES WITHOUT THE INSURER’S CONSENT, OR IT WILL BE AT THE INSD’S OWN COST

Question 6

CLAIMS MADE FORM

Answer 6

USED FOR SPECIALTY COVERAGES SUCH AS PROFESSIONAL LIABILITY, MALPRATICE, ERRORS AND OMISSIONS, ENVIRONMENTAL LIABILITY AND EMPLOYMENT PRACTICES LIABILITY

OFTEN USED IN SITUATIONS WHERE THE OCCURENCE COULD TAKE A LONG TIME TO MANIFEST ITSELF OR BE SPREAD OUT OVER MANY YEARS

Question 7

PREMIUM AUDITS

Answer 7

THE INSURER IS ALLOWED TO AUDIT THE INSURED’S BOOKS OR RECORDS AT THE END OF THE POLICY TERM TO MAKE SURE ADEQUATE PREMIUM HAS BEEN COLLECTED BY THE EXPOSURE

Question 8

NON RENEWAL

Answer 8

THE MINIMUM # OF DAYS NOTICE THE INSURER WILL PROVIDE TO THE INSD IN THE EVENT THE INSURER DECIDES NOT TO RENEW THE COVERAGE IS USUALLY 30 DAYS, BUT MAY DIFFER ACCORDING TO INDIVIDUAL STATE REGULATION

Question 9

RETROACTIVE DATE

Answer 9

A DATE IS ENTERED ON THE DECLARATIONS PAGE TO ALERT THE INSD THAT ANY CLAIM THAT HAPPENS BEFORE THIS DATE WILL NOT BE COVERED ON THE POLICY

Question 10

PREMISES AND OPERATIONS

Answer 10

ALL LIABILITY LOSSES RESULT FROM EITHER THE INSURED’S OPERATIONS OR PREMISES ARE COVERED, SUBJECT TO THE POLICY EXCLUSIONS AND LIMITS

Question 11

PRODUCTS AND COMPLETED OPERATIONS

Answer 11

INCLUDES INJURIES OR DAMAGE THAT OCCUR AFTER THE INSURED HAS COMPLETED ITS JOB AND LEFT THE SITE, OR RELINQUISHED CONTROL OF A PRODUCT IT MANUFACTURED OR SOLD

Question 12

PER OCCURENCE LIMIT

Answer 12

MAXIMUM AMT PAYABLE PER OCCURENCE OR ACCIDENT, DESPITE THE # OF CLMTS INVOLVED

Question 13

AGGREGATE LIMIT

Answer 13

THE MOST THE INSURER WILL PAY FOR ALL LOSSES THAT OCCUR DURING A POLICY PERIOD, REGARDLESS OF THE NUMBER OF CLAIMS MADE OR THE NUMBER OF ACCIDENTS THAT OCCUR

Question 14

NEWLY ACQUIRED AUTO

Answer 14

A PRIVATE PASSENGER AUTO
A PICKUP OR VAN FOR WHICH NO OTHER INSURANCE POLICY PROVIDES COVERAGE THAT:

HAS A GROSS VEHICLE WEIGHT LESS THAN 10,000LBS
IS NOT USED FOR THE DELIVERY OR TRANSPORTATION OF GOODS AND MATERIALS
NOT USED FOR FARMING OR RANCHING

Question 14

NEWLY ACQUIRED AUTO

Answer 14

A PRIVATE PASSENGER AUTO

A PICKUP OR VAN FOR WHICH NO OTHER INSURANCE POLICY PROVIDES COVERAGE THAT:

Question 15

OWNED AUTOS

Answer 15

THOSE ELIGIBILE VEHICLES TITLED BY THE INSD OR ACQUIRED DURING THE POLICY PERIOD

Question 16

SPLIT LIMIT

Answer 16

USES 3 DOLLAR AMTS

BODILY INJRY FOR EACH PERSON INVOLVED/BI FOR THE ENTIRE ACCIDENT/PROPERTY DAMAGE

Question 17

DECLARATIONS

Answer 17

THE SECTION OF THE POLICY THAT CONTAINS THE BASIC UNDERWRITING INFO, SUCH AS THE INSD’S NAME, ADDRESS, AMT OF COVERAGE AND PREMIUMS, AND A DESCRIPTION OF ANY INSURED LOCATIONS

Question 18

UNINSURED MOTORIST

Answer 18

PROVIDES THE INSD WITH MONEY FOR BODILY INJURIES THAT THE INSD WOULD BE LEGALLY ENTITLED TO RECOVER FROM THE OWNER OR OPERATOR OF A VEHICLE THAT DOES NOT CARRY THE REQUIRED LIABILITY INSURANCE COVERAGE

Question 19

UNDERINSURED MOTORIST COVERAGE

Answer 19

HELPS AN INSD WITH BODILY INJURY DAMAGE CAUSED BY ANOTHER MOTORIST WHEN THAT MOTORIST HAS INSUFFICIENT COVERAGE

INSD’S UIM LIMITS - DRIVER’S BI LIMITS = AMT PAID BY UIM COVERAGE

Question 20

LIMITS OF LIABILITY

Answer 20

THE LIMIT OF LIABILITY IS THE LESSER OF:

THE ACTUAL CASH VALUE OF THE VEHICLE AT THE TIME OF THE LOSS
THE AMT NECESSARY TO REPAIR OR REPLACE THE VEHICLE

Question 21

GARAGE COVERAGE FORM

Answer 21

FRANCHISED AND NONFRANCHISED AUTO DEALRS
TRUCK, TRUCK-TRACTOR AND COMMERCIAL TRAILER DEALERS
MOTORCYCLE, RECREATIONAL VEHICLE AND MOBILE HOME DEALERS
AUTO REPAIR SHOPS
SERVICE STATIONS
CAR WASHES
STORAGE GARAGES AND PUBLIC PARKING FACILITIES

Question 22

DEFENSE BASE ACT

Answer 22

PROVIDES BENEFITS TO CIVILIANS WHO ARE EMPLOYED ON A MILITARY BASE

Question 23

FEDERAL EMPLOYERS LIABILITY ACT

Answer 23

ALLOWS WORKERS TO SUE THEIR EMPLOYER FOR NEGLIGENCE AND REMOVES THE COMMON LAW DEFENSES OF CONTRIBUTORY NEGLIGENCE AND ASSUMPTION OF RISK

Question 24

FEDERAL EMPLOYERS LIABILITY ACT (FELA)

Answer 24

AN EMPLOYER'S LIABILITY LAW, RATHER THAN A WORKERS COMPENSATION LAW. IT PREDATED WORKERS COMP AND MAKES AN INTERESTATE RAILROAD LIABLE FOR BI SUSTAINED BY EMPLOYEES.

Question 25

PREMIUM DISCOUNT

Answer 25

APPLIES WHEN AN INSD OWES A TOTAL STANDARD PREMIUM GREATHER THANK $5,000

Question 26

EXCESS POLICY

Answer 26

AN EXCESS POLICY DOES NOT EXPAND OR RESTRICT COVERAGE IN RELATION TO THE UNDERLYING INSURANCE. THE COVERAGE MIRRORS THE UNDERLYING POLICY, BUT INCREASES THE LIMIT OF LIABILITY BASED ON THE AMTS SELECTED BY THE INSD.

Question 27

PRINCIPAL OR OBLIGOR

Answer 27

THE PERSON WHO PROMISES TO FULFILL THE OBLIGATION AND WHO PURCHASES THE BOND

Question 28

OBLIGEE OR INSD

Answer 28

THE PERSON TO WHOM THE PROMISE HAS BEEN MADE AND TO WHOM THE BOND IS PAYABLE IN THE EVENT THE PRINCIPAL DEFAULTS ON ITS OBLIGATION

Question 29

GUARANTOR OR SURETY

Answer 29

THE SURETY OR BONDING COMPANY PROVIDES THE FINANCIAL BACKING OF THE GUARANTEE, KNOWN AS A BOND PENALTY

Question 30

SURETY BOND

Answer 30

SOMEONE WHO GUARANTEES THE PERFORMANCE OF SOMEONE ELSE A BOND IS WRITTEN FOR A SET LIMIT, LIMIT IS REFFEREED TO AS THE PENALTY

Question 31

ALL OF THE FOLLOWING ARE FACTORS IN RATING WORKERS COMPENSATION

Answer 31

LOSS EXPERIENCE, JOBS CLASSIFICATION AND PAYROLL. SALES IS NOT!

Question 32

THE INSURED WITH A CLAIMS-MADE COMMERICAL GENERAL LIABILITY POLICY MAY REQUEST IN WRITING CLAIM AND OCCURENCE INFORMATION FROM THE INSURER AT ANY TIME UP TO 60 DAYS AFTER THE POLICY PERIOD ENDS. THE INSURER MUST PROVIDE THE INFORMATION WITHIN:

Answer 32

45 DAYS

Question 33

MOST INSURANCE POLICIES EXCLUSE LOSSES BY

Answer 33

MYSTERIOUS DISAPPERANCE

Question 34

ROBERRY IS DEFINED AS

Answer 34

TAKNG OF PROPERTY BY USE OF FORCE, VIOLENCE OR FEAR

Question 35

SELF INSURED RETENTION

Answer 35

THE AMT PAID BY THE INSURED FOR CERTAIN LOSSES NOT COVERED UNDER THE PRIMARY COVERAGE

Question 36

PRODUCT LIABILITY

Answer 36

COVERS DAMAGE DONE BY THE PRODUCT BUT NOT DAMAGE TO THE PRODUCT EXAMPLE: FAULTY PACKAGING OF A CERAL CAUSED SPOILAGE THAT RESULTED IN SOMEONE GETTING SICK

Question 37

CRIME INSURANCE IS USUALLY WRITTEN ON WHAT BASIS?

Answer 37

ALL-RISK

Question 38

WHO ARE THE PARTIES TO A BOND?

Answer 38

PRICINPAL - OBLIGEE - SURETY

Question 39

THE EMPLOYEE THEFT CRIME POLICY INCLUDES A COVERAGE EXTENSION THAT APPLIES TO EMPLOYEES TEMPORARILY OUTSIDE THE COVERAGE TERRITORY FOR UP TO

Answer 39

90 DAYS

Question 40

ERRORS AND OMISSIONS

Answer 40

PROFESSIONAL LIABILITY IN FIELDS OTHER THAN MEDICAL IS CLASSIFIED AS ERRORS AND OMISSIONS INSURANCE

Question 41

PRODUCT LIABILITY EXPOSURE IS THE POSSIBILITY THAT THE PUBLIC MIGHT BE INJURED BY THE PRODUCT

Question 42

BURGLARY

Answer 42

TAKING OF PROPERTY FROM WITHIN THE PRMISES LEAVING VISIBLE SIGNS OF FORCED ENTRY, FELONIUS INTENT

Question 43

INTENTIONAL BREACH OF DUTY IS NOT COVERED EX: THE FAILURE OF AN ATTY TO PROPERTY DEFEND A CLIENT DUE TO HIS PERSONAL DISLIKE OF THE CLIENT

Question 44

EXPERIENCE MODIFICATION FACTOR

Answer 44

THE CALCULATIONS RELATE TO AN EMPLOYER'S LOSSES, PAYROLL ANDPREMIUMS, SEGREGATED ACCORDING TO CLASSIFCATIONS OF OPERATIONS

Question 45

TYPE OF COMPENSATORY DAMAGE THAT WILL PAY FOR PAIN/SUFFERING AND DISFIGURMENT

Question 46

WHAT TYPE OF INFO WOULD BE FOUND IN A POLICY'S INSURING AGREEMENT?

Answer 46

RENEWAL DATES

Question 47

THE PROOF OF LOSS STATEMENT MUST BE:

Question 48

PERSONS COVERED UNDER AN INSURANCE POLICY WHETHER NAMED OR NO TARE KNOWN AS THE

Answer 48

INSUREDS

Question 49

WHICH OF THE FOLLOWING STATEMENTS IS TRUE REGARDING THE PREMIUM COMPUTATION FOR WORKERS COMPENSATION INSURANCE

Answer 49

A PREMIUM AUDITOR HAS THE RIGHT TO EXAMINE THE INSURED'S COMPENSATION RECORDS AT THE END OF THE POLICY PERIOD TO DETERMINE THE ACTUAL PREMIUM BASIS

Question 50

WHAT TYPE OF COMPENSATORY DAMAGES WILL PAY FOR PAIN AND SUFFERING AND DISFIGUREMENT?

Answer 50

GENERAL

Question 51

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?

Answer 51

ADDITIONAL COVERAGE

Question 52

WHAT ARE THE TWO TYPES OF COMPENSATORY DAMAGES

Answer 52

GENERAL AND SPECIAL

Question 53

IN A PARTICIPATION PLAN, THE INSD MAY BE ELIGIBLE FOR WHICH OF THE FOLLOWING?

Answer 53

A PARTIAL PREMIUM REFUND

Question 54

IN RETURN FOR PREMIUM, AN INSURANCE COMPANY MUST BE FAIR IN UNDERWRITING AND PAY COVERED LOSSES

Answer 54

WHO IS RESPONSIBLE FOR FILLING OUT A NOTICE OF CLAIM FORM? | - THE INSURED

Question 55

MISREPRESENTATION

Answer 55

ISSUING OR CIRCULATING ANY SALES MATERIAL THAT IS FALSE OR MISLEADING IS CONSIDERED MISREPRESENTATION

Question 56

HOW MANY HOURS OF CONTINUING EDUCATION MUST BE COMPLETED ON THE SUBJECT OF ETHICS EACH LICENSE RENEWAL PERIOD

Answer 56

3 HOURS

Question 57

WHEN IS AN INSURANCE COMPANY NOT REQUIRED TO ADVISE AN INSD OF POSSIBLE ELIGIBILITY FOR THE IOWA AUTOMOBILE INSURANCE PLAN?

Answer 57

WHEN THE POLICY IS CANCELLED DUE TO NONPAYMENT OF PREMIUM

Question 58

AGREED VALUE

Question 59

IN INSURANCE AN OFFER IS USUALLY MADE WHEN:

Answer 59

AN APPLICANT SUBMITS AN APPLICATION TO THE INSD; ACCEPTANCE TAKES PLACE WHEN AN INSURER'S UNDERWRITER APPROVES THE APPLICATION AND ISSUES A POLICY

Question 60

MATERIAL REPRESENTATION

Answer 60

A STATEMENT BY THE APPLICANT THAT, UPON DISCOVERED, WOULD ALTER THE UNDERWRITING DECISION OF THE INSURANCE COMPANY

Question 61

INSURING AGREEMENT

Answer 61

PROVIDES INFORMATION ON THE POLICY'S COVERAGES, NOT A CONDITION COMMONLY FOUND IN THE INSURANCE POLICY

Question 62

CONSIDERATION

Answer 62

SOMETHING OF VALUE THAT EACH PARTY GIVES TO THE OTHER, THE CONSIDERATION ON THE PART OF THE INSD IS THE PAYMENT OF PREMIUM AND THE REPRESENTATIONS/STATEMENTS MADE IN THE APPLICATION

Question 63

BLANKET COVERAGE

Answer 63

PROVIDES ONE LIMIT OF INSURANCE FOR MULTIPLE LOCATIONS OR CLASSES OF PROPERTY WITH THE ENTIRE LIMIT OF INSURANCE AVAILABLE TO RESPOND TO ANY LOSS

Question 64

PROXIMATE CAUSE

Answer 64

WHEN A DIRECT CHAIN OF EVENTS RESULTING FROM A NEGLIGENT ACT CAUSES INJURY DAMAGE, THAT ACT IS CONSIDEREDD TO BE THE PROXIMATE CAUSE, DIRECT LOSS

Question 65

OCCURENCE

Answer 65

losses caused by continuous or repeated exposure to conditions resulting in injury to persons or damage to property that is neither intended nor expected

Question 66

STATED AMOUNT

Answer 66

A PROPERTY INSURANCE POLICY THAT IS NOT SUBJECT TO ANY COINSURANCE REQUIREMENTS BUT HAS A SET AMT OF INSURANCE SCHEDULED FOR THE PROPERTY

Question 67

THE PART OF THE POLICY THAT SETS FORTH THE RULES OF CONDUCT, DUTIES, AND OBLIGATIONS OF THE PARTIES IS CALLED THE

Question 68

COMBINED SINGLE

Question 69

COINSURANCE CLAUSE

Question 70

EXTRA EXPENSE COVERAGE FORM

Answer 70

COVERAGE THAT WILL PERMIT THE INSD TO CONTINUE BUSINESS WITHOUT INTERRUPTION FOLLOWING A PROPERTY DAMAGE LOSS

Question 71

WHICH ITEM WOULD NOT BE COVERED UNDER BUILDING COVERAGE IN A BUILDING AND PERSONAL PROPERTY POLICE

Answer 71

THE BULLDOZER BEING USE AS PART OF A BUSINESS ADDITION UNDER CONSTRUCTION THAT IS PARKED 500 FEET FROM THE BUILDING

Question 72

ASSUMING THE INSURED AGREE TO THE AMT PAYABLE FOR A LOSS COVERED UNDER A DWELLING POLICY, HOW SOON AFTER THE INSURER HAS RCVD PROOF OF LOSS MUST IT MAKE PAYMENT?

Answer 72

60 DAYS

Question 73

PERSONAL BUSINESS PROPERTY OUT IN THE OPEN IS COVERED UNDER COMMERICAL PROPERTY POLICE ONLY WHILE:

Answer 73

WITHIN 100 FEET OF THE DESCRIBED PREMISES

Question 74

IN WHICH OF THE FOLLOWING TYPES OF PROPERTY VALUATION WILL THE POLICY PAY THE FULL VALUE AS SPECIFIED ON THE POLICY SCHEDULE, REGARDLESS OF THE INSURED PROPERTY'S APPRECIATION OR DEPRECIATION?

Answer 74

AGREED VALUE

Question 75

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?

Answer 75

BAILEE'S CUSTOMER POLICY - A BAILEE'S POLICY DOES NOT COVER PROPERTY OF THE INSD, BUT DOES COVER THEIR CUSTOMER'S PROPERTY WHILE IN THE CARE OF THE INSD

Question 76

THE EXTENSION OF COVERAGE UNDER THE COMMERCIAL FINE ARTS FLOATER INCLUDES COVERAGE FOR NEWLY ACQUIRED PROPERTY FOR A MAXIMUM OF

Answer 76

$10,000

Question 77

ADDITIONAL COVERAGES ON BUILDERS RISK FORM

Answer 77

DEBRIS REMOVAL, FIRE DEPT. SERVICE CHARGE, POLLUTANT CLEANUP AND PRESERVATION OF PROPERTY

Question 78

FEDERAL FAIR CREDIT REPORTING ACT

Answer 78

REGULATES CONSUMER REPORTS, ALSO KNOWN AS CONSUMER INVESTIGATIVE REPORTS, OR CREDIT REPORTS

Question 79

WHAT PERILS ARE COVERED UNDER THE STANDARD FIRE POLICY

Answer 79

FIRE, LIGHTENING AND REMOVAL

Question 80

MEMBERSHIP OF THE FAIR PLAN'S GOVERNING COMMITTEE IS SELECTED FROM

Answer 80

INSURERS, INSURER ASSOCATIONS AND INDEPENDENT AGENTS

Question 81

REBATING

Answer 81

ANY INDUCEMENT OFFERED TO THE INSURED IN THE SALE OF AN INSURANCE POLICY THAT IS NOT SPECIFIED IN THE POLICY

Question 82

WHICH INDIVIDUAL WOULD BE REQUIRED TO BE LICENSED AND AS INSURANCE PRODUCER?

Answer 82

A SALARIED EMPLOYEE WHO ADVERTISES AND SOLICITS INSURANCE ---- A PERSON DOES NOT REQUIRE AN INSURANCE PRODUCER LICENSE IF SHE OR HE ONLY ADVERTISES WITHOUT INTENT TO SOLICIT INSURANCE. HOWEVER, ONCE THERE IS SOLICITATION, A LICENSE IS REQUIRED

Question 83

BASIC - DP1, NAMED PERILS BROAD - DP 02, NAMED PERILS SPECIAL - DP03, OPEN AND NAMED PERILS DP2 AND DP3 WILL PAY REPLACEMENT COST AS LONG AS THE HOUSE IS INSURED FOR A LEAST 80% OF IT'S VALUE ON THE DATE OF LOSS

Answer 83

``` COVERAGE A - DWELLING COVERAGE B - OTHER STRUCTURES COVERAGE C - PERSONAL PROPERTY COVERAGE D - FAIR RENT VALUE COVERAGE E - ADDITIONAL LIVING EXPENSE ```

Question 84

DURING THE FIRST 30 DAYS AFTER A COMMUNITY ENTERS THE EMERGENCY OR NORMAL PROGRAMS, COVERAGE ON A FLOOD POLICY BEGINGS AT 12:01AM THE DAY AFTER THE APPLICATION AND PREMIUM PMT HAS BEEN MAILED

Question 85

MOTOR TRUCK CARGO POLICY - TRUCKERS FORM IS LIABILITY INSURANCE MOTOR TRUCK CARGO POLICY - OWNERS FORM IS PROPERTY COVERAGE

Question 86

REGARDLESS OF HOW THE POLICY IS WRITTEN, A COMMERCIAL PACKAGE POLICY WILL BE COMPRISED OF THE FOLLOWING ESSENTIAL ELEMENTS

Answer 86

POLICY CONDITIONS, INTERLINE ENDORSEMENTS, DEC PAGE, AND COVERAGE PARTS

Question 87

IN BROAD AND SPECIAL FORMS, COVERAGE B (OTHER STRUCTURES) IS AN ADDITIONAL AMT OF INSURANCE, LIMITED TO 10$ OF COVERAGE A