Week 4 Exam

Question 1

If the insured wants liability coverage for non-owned autos, he or she can choose which designation symbols?

a. Symbols 3 and 4
b. Symbols 1 and 9
c. Symbols 2 and 8
d. Symbols 2 and 6

Answer 1

b. Symbols 1 and 9

Question 2

Symbol 5 in the Business Auto Policy is used to designate:

a. owned autos subject to mandatory no-fault coverage
b. owned autos in states where no-fault coverage is desired but optional
c. non-owned autos principally garaged in states with optional no-fault coverage
d. borrowed autos not subject to mandatory no-fault coverage

Answer 2

a. owned autos subject to mandatory no-fault coverage

Question 3

Symbol 7 designates:

a. any auto owned by the named insured
b. autos over 4,000 pounds gross vehicular weight (GVW)
c. specifically described autos
d. any auto owned by a policy insured

Answer 3

c. specifically described autos

Question 4

What happens, if at the end of the policy period, the insurer determines that the insured’s exposure changed and that it did not receive a high enough premium for that period?

a. the insurer absorbs the difference
b. the insurer bills all the insureds an equal share
c. the insurer bills the first named insured
d. the insurer will refuse to renew the policy based on misrepresentation of the exposures

Answer 4

c. the insurer bills the first named insured

Question 5

Which of the following is not contemplated in the BAP definition of “auto”?

a. a land motor vehicle
b. a trailer
c. a forklift
d. a truck

Answer 5

c. a forklift

Question 6

Two of the named insured’s company cars are involved in a multi-car accident while leaving a company function. One car causes $15,000 in damages and the other $40,000 in damages. The named insured’s liability limit is $50,000. How much will the BAP be responsible for?

a. Up to $100,000
b. No more than $50,000
c. Exactly $55,000
d. Nothing, the loss is excluded

Answer 6

b. no more than $50,000

Question 7

In the Business Auto Policy, coverage symbol 1 signifies: a. owned autos only

b. any auto
c. hired autos
d. owned or borrowed autos

Answer 7

b. any auto

Question 8

There is pollution coverage if the pollutant is a fluid that is needed for, or results from normal functioning of the auto and its parts.
A. True
B. False

Answer 8

A. True

Question 9

The designation symbol for owned autos subject to a compulsory uninsured motorists law is?

a. symbol 1
b. symbol 4
c. symbol 6
d. symbol 9

Answer 9

c. Symbol 6

Question 10

Which states have monopolistic workers compensation systems?

a. Indiana, New Mexico, California, Texas, and Nevada
b. Kentucky, Michigan, Rhode Island, Hawaii, and New York
c. North Dakota, Ohio, Washington, and Wyoming
d. Tennessee, Florida, Wisconsin, New Hampshire, and Vermount

Answer 10

c. North Dakota, Ohio, Washington, Wyoming

Question 11

What is the purpose of the United States Longshore and Harbor Workers Compensation Act?

a. To provide workers compensation benefits to seamen who travel to foreign harbors
b. To provide federal workers compensation benefits to employees who work in maritime employment upon navigable waters
c. To provide benefits to dock workers in addition to the stat’s workers compensation benefits
d. To allow a worker on the high seas to maintain an action for damages against the owner of the ship

Answer 11

b. to provide Federal workers compensation benefits to employees who work in maritime employment among navigable waters

Question 12

Which of the following statements concerning the duties of the insured under the workers compensation policy is correct?

a. the insured has the final say in the settlement of a claim
b. the insured may waive the right of subrogation after an injury occurs
c. the insured may make voluntary payments and assume obligations without notifying the insurer
d. the insured must give the insurer the names and addresses of witnesses to the accident

Answer 12

d. the insured must give the insurer the names and addresses of witnesses to the accident

Question 13

What is stop gap coverage?

a. Coverage designed to provide employee’s liability insurance for an employer in a monopolistic state sued by an employee for work-related injuries
b. Workers compensation coverage in states with monopolistic workers compensation funds
c. General liability coverage for leased workers
d. Coverage designed to create an exception to the workers compensation and employer liability exclusions on the CGL form

Answer 13

a. Coverage designed to provide employee’s liability insurance for an employer in a monopolistic state sued by an employee for work-related injuries

Question 14

Which one of the following activities is considered to be in the course of employment in order for workers compensation benefits to apply?

a. an employee is injured while traveling to work
b. an employee is hurt during horseplay he instigated
c. an employee is injured during a softball game sponsored and supervised by the employer
d. an employee is injured after smoking marijuana on the job and walking away from the job site

Answer 14

c. an employee is injured during a softball game sponsored and supervised by the employer

Question 15

The two types of bodily injury that are covered under workers compensation insurance are:

a. Intentional bodily injury and unintentional bodily injury
b. bodily injury caused by disease and bodily injury caused by accident
c. bodily injury caused by disease and bodily injury caused by a coworker
d. Intentional bodily injury and bodily injury caused by an accident

Answer 15

b. Bodily injury caused by disease and bodily injury caused by accident

Question 16

When a legally employed minor is injured in the course of employment, the injured minor:

a. is excluded from coverage through provisions of state workers compensation laws
b. is covered by the workers compensation system the same way as any employee would be covered
c. is excluded from coverage by a specific exclusion on part one of the workers compensation policy
d. is excluded from coverage by a specific exclusion on part two of the workers compensation policy

Answer 16

b. is covered by the workers compensation system the same way as any employee would be covered

Question 17

What are third-party-over actions?

a. Lawsuits in which the injured employee sues a negligent third party who, in turn, sues the employer for contributory negligence
b. Lawsuits in which an insured employee sues the parent company of his employer
c. Lawsuits in which an employer sues a negligent third party that caused injury to an employee
d. Lawsuits in which the spouse of an injured employee sues the employer for consequential bodily injury

Answer 17

A. Lawsuits in which the injured employee sues a negligent third party who, in turn, sues the employer for contributory negligence

Question 18

The term accident in the context of workers compensation laws and insurance:

a. Is not an issue because “accident” does not equate with worker injury
b. Is defined on the workers compensation policy
c. Is defined on the workers compensation policy and in all workers compensation state laws
d. Is not defined on the workers compensation policy

Answer 18

B. Is defined on the workers compensation policy

Question 19

Workers compensation is federally regulated. Therefore, all states have exactly the same workers compensation laws.
A. True
B. False

Answer 19

B. False

Question 20

Which of the following employees are generall exempt form workers compensation coverage?

a. domestic servants
b. farm workers
c. minors
d. both A and B

Answer 20

D. Both A (domestic servants) and B (farm workers)