Term
| What course of action does a party to a contract have if the other party is found to be in breach of that contract? |
|
Definition
| Damages for breach, reasonable attorney fees and cost. |
|
|
Term
| A representation in an insurance contract qualifies as an... |
|
Definition
|
|
Term
| What does it mean if an agent's license is inactive? |
|
Definition
| The agent cannot transact any insurance business for which a valid, active license is required. |
|
|
Term
| The ordinance and law exclusion/limation found in property policies wuch as the commercial property coverage, and in the Homeowners Policy have the following effect: |
|
Definition
| It excludes what part of the loss resulting from the enforcement of a building ordinance or law. |
|
|
Term
| Extra expense inusurance covers: |
|
Definition
| The extra expense that a business incurs to continue a business while damage to the premises are being restored. |
|
|
Term
A plate glass coverage form is needed by some insureds. The following statement about the coverage for the peril of glass breakage in commercial property for a "building and personal property" basic, broad and special causes of loss forms is true...
|
|
Definition
| There is a limited glass breakage coverage in both of the broad and special forms. |
|
|
Term
| In the state of CA, no rate will remain in effect if it is considered to be... |
|
Definition
|
|
Term
| The amount paid for property damage which is equal to the price for which it could have been sold is its... |
|
Definition
|
|
Term
| The limited Mexico endorsement applies to trips to Mexico with a duration of how many days? |
|
Definition
|
|
Term
| Which type of coverage would pay for losses which occurred during the policy period and are found for up to one year after the policy termination? |
|
Definition
|
|
Term
| Which coverage protects physicians, surgeons, and dentists for their professional activities? |
|
Definition
|
|
Term
| What must an insurer do who accepts an application from an agent who is not specifically appointed by that insurer, and then issues a policy from that application? |
|
Definition
| Forward to the Commissioner a notice of appointment within 14 days of receipt of application. |
|
|
Term
| Under a major medical plan, coinsurance equals a percentage that... |
|
Definition
| the employee pays after the deductible is met. |
|
|
Term
| If an insured borrows a neighbor's vehicle to run a personal errand, how do the policies respond in the event of an auto accident? |
|
Definition
| The neighbor's policy is primary and the driver's policy is excess. |
|
|
Term
| The equipment dealer's coverage form does NOT cover what type of property? |
|
Definition
| Motor vehicles designed for highway use |
|
|
Term
| A self-insured group qualifies for stop-loss after claims... |
|
Definition
| exceed a specified limit in a set period of time. |
|
|
Term
| Why is a reporting form used for property insurance? |
|
Definition
| To maintain the correct limits of coverage without over or under insuring when the value or volume of the property varies during the policy term. |
|
|
Term
| What does not contribute to the rising cost of Worker's Compensation Insurance? |
|
Definition
|
|
Term
| Which type of exposure can be best defined as a condition or situation where the exposure to financial loss is presented to an individual or family from causes such as injury, disability, death, sickness, or unemployment? |
|
Definition
|
|
Term
| What is not considered a benefit of insurance? |
|
Definition
| Retention of the loss by the insured (this is the opposite of insurance) |
|
|
Term
| What is also known as a human loss exposure? |
|
Definition
|
|
Term
| If a tenant is insured under a Building and Personal Property coverage form, when is the property considered vacant? |
|
Definition
| When there is insufficient business personal property present to conduct customary operations. |
|
|
Term
| A commercial property policy cannot provide coverage for... |
|
Definition
|
|
Term
| Which type of coverage would be needed to cover a contractor's bulldozers which are used in the contractor's business but are not held for sale? |
|
Definition
| Contractor's equipment floater |
|
|
Term
| It is a violation of the CA Insurance Code to act as a producer for a non-admitted carrier unless... |
|
Definition
| the producer is a surplus lines broker. |
|
|
Term
| In California, excess and surplus lines coverage needs to be placed through... |
|
Definition
|
|
Term
| Under a scheduled personal property endorsement, loss to stamps are excluded when they are... |
|
Definition
| being shipped with a freight company. |
|
|
Term
| The following is most likely to be eligible for the CA FAIR Plan? |
|
Definition
| A well-maintained dwelling located in a hazardous brush area. |
|
|
Term
| What items of personal property are included in Coverage A under an HO3 policy? |
|
Definition
| paint on the premises to be applied to the interior |
|
|
Term
| Mitchell's (unendorsed) Personal Auto Policy liability coverage would pay for... |
|
Definition
| The cost of repairing the neighbor's fense that Mitchell damaged due to the negligent operation of his car. |
|
|
Term
| All Worker's Compensation policies provide... |
|
Definition
| compensation for worker related injuries without regard to fault. |
|
|
Term
| The following is NOT a principal rating factor under Proposition 103 for personal auto policies: |
|
Definition
|
|
Term
| Under a Builders Risk form, how much insurance is required to pay any loss without a penalty for underinsurance? |
|
Definition
| 100% of the completed value |
|
|
Term
| The following person is not insured under Section I of a Homeowners Policy... |
|
Definition
| The named insured's (non-resident) spouse. |
|
|
Term
| What is an Umbrella Policy? |
|
Definition
| An Umbrella Policy provides excess liability coverage over one or more primary policies. |
|
|
Term
| The following expense is NOT covered in addition to the limits of liability under Coverage A of a Personal Auto Policy: |
|
Definition
|
|
Term
| Under a commercial property coverage form, the following property is NOT included in the definition of "building"... |
|
Definition
|
|
Term
| Carmen is driving her own car on behalf of her employer. Carmen's negligent operation of her car injures a member of the public. The employer may be held liable because of... |
|
Definition
|
|
Term
| What peril is insured against in the Special form but not in the Basic form? |
|
Definition
|
|
Term
| Which policy pays for bodily injury or property damage which occurs or is discovered during the policy period? |
|
Definition
| Claims made commercial liability policy |
|
|
Term
| If an armored car carrying an insured's bank edposit is robbed, what insurance would the insured need to be covered? |
|
Definition
| If outside the premisis - theft of money or securities |
|
|
Term
| Under the liability portion of an unendorsed Personal Auto Policy, what coverage is available if the named insured is operating a company car on a regular basis? |
|
Definition
| The policy excludes this usage |
|
|
Term
| A possibility of financial loss resulting from the ownership of property is known as what? |
|
Definition
|
|
Term
| If the vacancy permit endorsement is added to a building and personal property coverage form, the vacancy conditions under the basic policy is... |
|
Definition
| waived only for designated perils during the permit period. |
|
|
Term
| You are to meet with a small furniture manufacturer and make property and liability insurance recommendations. You have insured many risks of this type in the past and have a good idea of what their needs may be. There are several popular ways of determining business loss exposures. The following method is the least professional and the least likely to correctly identify the loss exposures... |
|
Definition
| You get a copy of all current policies and determine what coverage they have been carrying and how much they have been paying. |
|
|
Term
| Where would an insured who is in the business of importing exotic animals from Africa most likely go to obtain insurance coverage? |
|
Definition
| excess and surplus lines insurer |
|
|
Term
| A commercial Building and Personal Property coverage form covers three kinds of property, one which has "your business personal property." "Your" refers to... |
|
Definition
| only the named insured(s) shown in the declarations. |
|
|
Term
| The following loss is not covered by either the Personal Auto Policy collision or other than collision coverage: |
|
Definition
| Sean leaves his personal (non-business) laptop computer in his car overnight. His car is parked in the driveway in front of his house. The computer is stolen from his car. |
|
|
Term
| Self-funding of employee benefit plans cannot be used for... |
|
Definition
|
|
Term
| Ordinance or law coverage provides protection for the following losses: |
|
Definition
- The residual property value of a home that must be demolished to comply with building code requirements.
- The cost of demolition and debris removal of undamaged property.
- The increased expense incurred for the insurer to repair or rebuild property according to building code specifications. |
|
|
Term
| What is the primary difference between an HO2 and an HO4 policy? |
|
Definition
| Property is insured under Coverage A. |
|
|
Term
| In a commercial lines program policy, a common policy condition that is not included is... |
|
Definition
|
|
Term
| HO6 is the best policy for what kind of property ownership? |
|
Definition
|
|
Term
| Which property coverage form is best suited for a structure under construction? |
|
Definition
| Builders Risk coverage form |
|
|
Term
| What perils are insured against under the "additional coverages - property removed" of a Homeowners Policy? |
|
Definition
|
|
Term
| The following is not required when electing continuation of coverage under COBRA... |
|
Definition
| an insurability statement |
|
|
Term
| The adult day care coverage level of an LTC policy provides for... |
|
Definition
| full-time nursing care for elders living in assisted living centers. |
|
|
Term
| Which code requires agents to keep records of any compensation they may have received for their services involved with premium financing? |
|
Definition
|
|
Term
| The Commercial General Liability (CGL) contract contains an exclusion for liquor liability. The purpose of this exclusion is the exlude coverage for law liability losses arising from... |
|
Definition
| an insured's ispecial loss exposures resulting from the insured being involved in the alcoholic beverage business. |
|
|
Term
| The following is commonly found in liability policies, thus creating the need for inland marine coverage: |
|
Definition
| care, custody and control exclusion |
|
|
Term
| The measure of loss potential which is used for pricing of insurance is known as... |
|
Definition
|
|
Term
| A newly acquired motorcycle is not automatically covered under a Personal Auto Policy because... |
|
Definition
| the unendorsed policy does not cover two-wheeled vehicles. |
|
|
Term
| The most likely action taken by the Insurance Commissioner if a licensee induces a client to co-sign a loan is... |
|
Definition
|
|
Term
| Under the "examination of your books and records" condition of a commercial policy, when may an insurer examine an insured's books and records? |
|
Definition
| At any time during the policy period and up to three years afterwards. |
|
|
Term
| Which type of loss is a business exposed to death, retirement or disability of a key employee? |
|
Definition
|
|
Term
| The applicant wants a Homeowners Policy that has open peril coverage on his home (building structure). Assuming he is eligible for the policy, which policy would you recommend? |
|
Definition
|
|
Term
| What is the limit for sound reproducing equipment under the coverage endorsement for excess sound-reproducing equipment, audio, visual and data electronics, tapes, records, disks, and other media endorsement in a PAP? |
|
Definition
|
|
Term
| The state law that regulates insurer practices regarding underwriting, sales, rate-making, and claims handling are called: |
|
Definition
| market conduct regulations |
|
|
Term
| Under a building and personal property coverage form, if the insured building has been vacant for more than 60 consecutive days. What effect will this have on a vandalism loss? |
|
Definition
|
|
Term
| What are the minimum liability coverages for CAARP policies? |
|
Definition
| $15,000 / $30,000 / $5,000 |
|
|
Term
| Which exclusion in the "causes of loss - special form" excludes coverage for mudflow? |
|
Definition
|
|
Term
| The medical expense plan designed to cover a hospital visit for a hernia repair operation would fall under... |
|
Definition
|
|
Term
| Why would an insured need an Inland Marine Policy if she is shipping stock on her own trucks? |
|
Definition
| Stock is only covered if it is in the building or within 100 ft. of the building's premises. |
|
|
Term
| A Dwelling fire policy's coverage is to a Homeowners Policy, as a commercial property policy's coverage is to a: |
|
Definition
|
|
Term
| What additional coverage is provided in a DP3 that is not included in a DP1? |
|
Definition
|
|
Term
| The amount to replace an insured's damaged property, less depreciation, is known as the: |
|
Definition
|
|
Term
| What type of loss would result in a claim for monetary damages due to injury to another or damage to another's property? |
|
Definition
|
|
Term
| What is the difference between the per accident limit in a split limits policy and the single limits? |
|
Definition
| The per accident limit applies only to bodily injuries, and the single limit applies to all claims. |
|
|
Term
| Which perils are included in the vacancy permit endorsement? |
|
Definition
- Building glass breakage
- Sprinkler leakage
- Vandalism |
|
|
Term
| If an insured rents an auto while on vacation, what coverage, if any, will be available for physical damage coverage under a Personal Auto Policy? |
|
Definition
| The broadest coverage on any auto shown in the declarations. |
|
|
Term
| If an insured signs a claim form for a claim which is fraudulent, the insured may be guilty of... |
|
Definition
|
|
Term
| When is a fire and casualty agent required to inform an insured of any conditions which may be precendent to coverage regarding a Personal Auto Policy? |
|
Definition
|
|
Term
| In reference to the coverages provided in the basic form, the Boatowners Policy is similar to what other policy? |
|
Definition
|
|
Term
| If an insured with a Personal Auto Policy has an accident in a state with personal injury protection (PIP), how does the policy respond? |
|
Definition
| Coverage automatically is broadened to provide PIP |
|
|
Term
| What is the minimum discount percentage for the "good driver" discount? |
|
Definition
|
|
Term
| What is the primary difference between umbrella and excess liability policies? |
|
Definition
| The umbrella covers most liability exposures; the excess liability may cover only one line. |
|
|
Term
| What additional coverages are available under the scheduled personal property endorsement that is not available under an unendorsed Homeowners Policy? |
|
Definition
| Breakage of glassware caused by an earthquake |
|
|
Term
| The intentional relinquishment of a known right is also known as a: |
|
Definition
|
|
Term
| The commercial property conditions include a condition called "liberalization." The effect of this condition is: |
|
Definition
| To automatically apply broader coverage o the commercial property coverage part if a policy form revision would broaden coverage without an additional premium. |
|
|
Term
| What does a release bill of lading do for a common carrier? |
|
Definition
| It limits the carriers liability on the shipment. |
|
|
Term
| What is the main reason a person would purchase a Dwelling Policy instead of a Homeowners Policy? |
|
Definition
| The owner does not reside in the dwelling. |
|
|
Term
| An open peril policy protects against the loss from... |
|
Definition
| ANY peril, other than those specifically excluded. |
|
|
Term
| What type of insurance was designed to cover domestic shipments, means of transportation, personal property floater risks, and commercial property floater risks? |
|
Definition
|
|
Term
| What is the primary difference between an HO3 and an HO5? |
|
Definition
|
|
Term
| A fire and casualty managing agent DOES have the authority to collect premiums from producing broker-agents. |
|
Definition
| A fire and casualty managing agent DOES have the authority to collect premiums from producing broker-agents. |
|
|
Term
| In the business of insurance, the act of concealment is defined by all of the following statements: |
|
Definition
- Concealment is grounds for declination by the insurer
- Concealment can be unintentional
- Concealment can be intentional |
|
|
Term
| The following is not a characteristic of an "ideally insurable loss exposure"... |
|
Definition
| Losses that are catastrophic. |
|
|
Term
| The liability coverage in a Yacht Policy is referred to as... |
|
Definition
| Protection and Indemnity (P&I) |
|
|
Term
| The following type of business would not need a special inland marine coverage for their stock... |
|
Definition
| Grocer (because it's low value) |
|
|
Term
| What else must an applicant for a fire and casualty license, life agent license, or personal lines agent license complete in addition to pre-licensing classroom study? |
|
Definition
| A 12-hour course on ethic and the CA code. |
|
|
Term
| The Personal Auto Policy territory limits include: |
|
Definition
|
|
Term
| The amount to replacement property with "like property of the same quality and consturction" is known as the property's... |
|
Definition
|
|
Term
| The collision coverage of a Personal Auto Policy covers damage caused by the insured by driving into a tree that had fallen during a recent storm. |
|
Definition
| The collision coverage of a Personal Auto Policy covers damage caused by the insured by driving into a tree that had fallen during a recent storm. |
|
|
Term
| What peril is included in the broad form, but not the basic form? |
|
Definition
|
|
Term
| Which type of a crime policy will pay for a loss, which is found during the policy period, even if the loss occurred prior to the effective date of the policy? |
|
Definition
|
|
Term
| A Personal Auto Policy (PAP) insured's car was a total loss when the car was stolen and wrecked. The insured has the following coverages: liability, medical payments and "other than collision." - Which coverage mentioned would pay for the loss? |
|
Definition
| Other Than Collision - OTC |
|
|
Term
| The watercraft endorsement on a Homeowners Policy extends coverage for Liability coverage for watercraft listed on the schedule. |
|
Definition
| The watercraft endorsement on a Homeowners Policy extends coverage for Liability coverage for watercraft listed on the schedule. |
|
|
Term
| Mary has an HO3 policy with replacement cost coverage on the insured building. The cast of replacement on the dwelling is $100,000, and the other structure (a garage) is $20,000. To be certain of replacement cost coverage on a partial loss to either structure, she must carry a minimum of how much for both structures? |
|
Definition
| $80,000 on the dwelling and $16,000 on the garage |
|
|
Term
The following loss exposure is NOT covered by Section II of Ron's Homeowners Policy:
Ron's registered/licensed personal auto while used on his own property which includes 10 acres of undeveloped land. |
|
Definition
The following loss exposure is NOT covered by Section II of Ron's Homeowners Policy:
Ron's registered/licensed personal auto while used on his own property which includes 10 acres of undeveloped land. |
|
|
Term
| The medical expense coverage in a Workers' Compensation Policy does not have a dollar limit, nor a time limit. |
|
Definition
| The medical expense coverage in a Workers' Compensation Policy does not have a dollar limit, nor a time limit. |
|
|
Term
| If an Inland Marine Policy provides coverage for any loss unless it is specifically excluded, it would be considered as an... |
|
Definition
|
|
Term
| Inland Marine policies nearly always provide what type of coverage? |
|
Definition
|
|
Term
| Both the Commercial General Liability Policy and the Business Auto Policy have definitions of the term "automobile" and mobile equipment. These definitions are the same, thus avoiding overlaps or gaps in coverage between the two policies. |
|
Definition
| Both the Commercial General Liability Policy and the Business Auto Policy have definitions of the term "automobile" and mobile equipment. These definitions are the same, thus avoiding overlaps or gaps in coverage between the two policies. |
|
|
Term
Kim's car is insured with a Personal Auto Policy. The coverage includes medical payments with $2,000 limits. The following is a true statement about the medical payment coverage for necessary medical expenses:
Kim gives her neighbor a ride to the store in the insured car. She has an auto accident in which they each incur over $2,000 in medical expenses. The maximum amount that Kim's policy will pay is $2000 to her and $2,000 to her neighbor. |
|
Definition
Kim's car is insured with a Personal Auto Policy. The coverage includes medical payments with $2,000 limits. The following is a true statement about the medical payment coverage for necessary medical expenses:
Kim gives her neighbor a ride to the store in the insured car. She has an auto accident in which they each incur over $2,000 in medical expenses. The maximum amount that Kim's policy will pay is $2000 to her and $2,000 to her neighbor. |
|
|
Term
| What must a life agent, travel agent, or fire and casualty insurance agent do in order to act asn an agent of a particular insurer? |
|
Definition
| File a notice of appointment with the Commissioner. |
|
|
Term
| Your HO3 insured wants to make sure he has liability protection against claims for false arrest, libel and slander. What type of endorsement would you recommend for him to add? |
|
Definition
|
|
Term
| If the limits of liability on a structure are $75,000, and the structure is worth $125,000, how much would be owned on a fire loss of $50,000 if the policy has an 80% coinsurance requirement (disregard any deductibles)? |
|
Definition
|
|
Term
| If an insured's employee embezzles $10,000 from the company's bank account, what type of coverage would need to be in force for the loss to be covered? |
|
Definition
|
|
Term
| Why would an applicant purchase an HO3 policy instead of a Dwelling Policy? |
|
Definition
|
|
Term
| What is a self-insured retention under an Umbrella Policy? |
|
Definition
| A deductible applicable to losses excluded by the underlying coverage and covered by the umbrella. |
|
|
Term
A Personal Auto Policy is written for Lisa providing liability coverage. The following auto liability situations would not be covered unless Lisa had an endorsement attached and paid an additional premium:
Lisa destroys a mailbox while driving a (non-owned) company car furnished for Lisa's regular use. |
|
Definition
A Personal Auto Policy is written for Lisa providing liability coverage. The following auto liability situations would not be covered unless Lisa had an endorsement attached and paid an additional premium:
Lisa destroys a mailbox while driving a (non-owned) company car furnished for Lisa's regular use. |
|
|
Term
| What does not have a standard coverage form? |
|
Definition
|
|
Term
| An insured's Business Auto Policy specifies that the liability coverage applies to covered autos- symbol 7. This means: |
|
Definition
| Specifically described autos are covered |
|
|
Term
| If a motor home is scheduled on a mescellaneous type vehicle endorsement, luggage and other personal property within it would NOT be covered. |
|
Definition
| If a motor home is scheduled on a mescellaneous type vehicle endorsement, luggage and other personal property within it would NOT be covered. |
|
|
Term
| What is the primary medical payments coverage difference between a Boatowners Policy and an HO3 policy? |
|
Definition
| The boat owners covers injuries to the insureds, and the HO3 covers injuries to others. |
|
|
Term
| The CA Insurance Code does not require property insurance policies to specify the insured's address. |
|
Definition
| The CA Insurance Code does not require property insurance policies to specify the insured's address. |
|
|
Term
| The following describes an insurer who has enough financial resources only to provide for all of it's liabilities and for all reinsurance of all outstanding risks: |
|
Definition
Insolvent.
In order to be solvent, an insurer must not only be able to provide for its liabilities and reinsure capital risks, but mmust also possess additional assets equivalent to the required paid-in capital. |
|
|
Term
| Under a standard ISO Homeowners HO3, real property and personal property are covered for the perils of... |
|
Definition
| "All risks" coverage applies to real property. Broad form named perils coverage applies only to personal property. |
|
|
Term
| What item of real property under HO3 are valued on an actual cash value basis? |
|
Definition
|
|
Term
| What is the primary difference between an HO2 and an HO3 policy? |
|
Definition
| The perils insured against. |
|
|
Term
| What factor supports the principle of indemnity? |
|
Definition
|
|
Term
| Yacht policies typically provide coverage for... |
|
Definition
| Hull, protection and indemnity (P&I) |
|
|
Term
Max's Personal Auto Policy (PAP) has liability and collision coverage. His neighbor's car has liability coverage only. Max borrows his neighbor's car to go to the store and has an accident that is his fault. He damages his neighbor's car and another car. Max's PAP provides:
Liability coverage that is excess of his neighbor's liability coverage. His collision coverage also applies, but on a primary basis. |
|
Definition
Max's Personal Auto Policy (PAP) has liability and collision coverage. His neighbor's car has liability coverage only. Max borrows his neighbor's car to go to the store and has an accident that is his fault. He damages his neighbor's car and another car. Max's PAP provides:
Liability coverage that is excess of his neighbor's liability coverage. His collision coverage also applies, but on a primary basis. |
|
|
Term
| Medical payment coverage in a Boatownsers Policy covers injuries to: |
|
Definition
| Permissive occupants of the insured's boat |
|
|
Term
| Under a Personal Umbrella Policy, what underlying coverages must an insured typically maintain? |
|
Definition
| Auto and Personal Liability ONLY |
|
|
Term
| What does Section 770 of the Insurance Code refer to? |
|
Definition
| An entity cannot demand that insurance be placed with a particular agency. |
|
|
Term
| A person with a commercial policy is burning leaves. The fire gets out of control causing smoke damage to a neighboring property. The loss is covered by... |
|
Definition
| Commercial General liability |
|
|
Term
| What would the commissioner likely do if an agent induces a client to co-sign a loan? |
|
Definition
| Suspend the agent's license |
|
|
Term
| What is not one of the three main types of loss? |
|
Definition
|
|
Term
| What policy would be used for a new single-family dwelling? |
|
Definition
| HO3 or HO5 (HO5 for test) |
|
|
Term
| Abstracts, maps and mortgages are covered under what type of policy? |
|
Definition
|
|
Term
| What do the initials of S.T.A.R.R. represent? |
|
Definition
| Methods of risk management |
|
|
Term
| Under a special cause of loss form, if a landslide is caused by an unnatural flow of water due to improper grading, the loss is... |
|
Definition
| Excluded under the concurrent causation exclusion |
|
|
Term
| A bulldozer an insured is using to level a property for a customer overturns causing fule to leak and pollute the ground. Where would this pollution loss be covered? |
|
Definition
| Commercial general liability |
|
|
Term
| Grace has a Homeowners Policy that includes Section I coverages A, B and C. A, B and C provide coverage for... |
|
Definition
| Dwelling, other structures, and personal property |
|
|
Term
| How are HO3 and HO5 similar? |
|
Definition
| Both provide open peril coverage for the dwelling |
|
|
Term
| The Personal Auto Policy towing and labor endorsement pays for the cost of labor onoy if the labor is performed at the place of disablement. |
|
Definition
| The Personal Auto Policy towing and labor endorsement pays for the cost of labor onoy if the labor is performed at the place of disablement. |
|
|
Term
The following loss would be covered under Dick's Personal Auto Policy other than collission (OTC) coverage:
Someone shoots Dick's car rear window while the car is parked on the street overnight |
|
Definition
The following loss would be covered under Dick's Personal Auto Policy other than collission (OTC) coverage:
Someone shoots Dick's car rear window while the car is parked on the street overnight |
|
|
Term
| What type of crime form covers losses that occur during the policy period regardless of when the loss is discovered? |
|
Definition
|
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Term
| What is known as the process whereby an insurer determines appropriate charges for its policies? |
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Definition
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Term
The following would not be considered a benfit of insurance:
Retention of the loss by the insured |
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Definition
The following would not be considered a benfit of insurance:
Retention of the loss by the insured |
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Term
| The amount paid for damaged property which is equal to the price for which it could have been sold is called the... |
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Definition
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Term
| Under an unendorsed commercial property coverage form with no optional coverages, on what basis are buildings valued? |
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Definition
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Term
| The named insured for a Commercial Package Policy is "Jill Koslin and Edward Koslin DBA Coastline PhotoShop." Under the terms of the common policy conditions of the Commercial Package Policy who is responsible for the premium payments? |
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Definition
| Jill - The first named insured is responsible for all premiums. |
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Term
| If an insured discovers an occurrence 75 days AFTER the expiration of a claim-ade commercial liability policy, what must the insured have in order for the loss to be covered. |
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Definition
| Supplemental extended reporting period endorsement. |
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Term
| The following example does NOT meet the definition of the insured under an HO3 policy: |
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Definition
| A 70-year old grandparent residing in an adult care facility |
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Term
| The loss under a watercraft endorsement is covered if it arises out of the use of a sailboat in a racing competition. |
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Definition
| The loss under a watercraft endorsement is covered if it arises out of the use of a sailboat in a racing competition. |
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Term
| Actual Cash Value is definied as the... |
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Definition
| amount to replace damaged property less depreciation. |
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Term
| The following vehicle is not eligible for coverage under a Personal Auto Policy: |
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Definition
| A private passenger auto owned by a partnership. |
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Term
| Exclusive agents generally represent only one insurer (also known as Captive Agents). |
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Definition
| Exclusive agents generally represent only one insurer (also known as Captive Agents). |
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Term
| A common formula that is used to establish actual cash value is... |
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Definition
| ACV= replacement cost - depreciation |
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Term
| Other than collision is a type of property insurance coverage. |
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Definition
| Other than collision is a type of property insurance coverage. |
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Term
| Professionals are exposed to liability for failure to properly perform their professional duties. The following professional would be the least likely prospect for a Professional Liability Policy: |
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Definition
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Term
| Are standardized umbrella policies available? |
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Definition
| Yes, standardized umbrella policies are now available |
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Term
| Products/completed operations limit is listed on a Commercial General Liability declarations page as an aggregate limit. |
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Definition
| Products/completed operations limit is listed on a Commercial General Liability declarations page as an aggregate limit. |
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Term
| What is not a characteristic of "an ideally insurable loss exposure"? |
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Definition
| Losses that are catastrophic |
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Term
| The insurance code definition of an "insurer broker" is... |
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Definition
| Someone paid to transact insurance on behalf of another person, but not on behalf o the insurer. |
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Term
California has lower financial responsibility limits than most other states. If Randy, a California Personal Auto Policy insured, carrying minimum limits on coverage, has an accident in a state that requires higher limits, then...
The policy will automatically provide the higher required limits - at no extra charge. |
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Definition
California has lower financial responsibility limits than most other states. If Randy, a California Personal Auto Policy insured, carrying minimum limits on coverage, has an accident in a state that requires higher limits, then...
The policy will automatically provide the higher required limits - at no extra charge. |
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Term
| What is a self-insured retention under an Umbrella Policy? |
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Definition
| A deductible applicable to losses excluded by underlying coverage and covered by the umbrella. |
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Term
| A loss of profits due to a suspension of business operations because of a premises fire is an example of loss covered by what type of insurance? |
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Definition
| Business Income insurance |
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Term
| Your insured has a 10 year lease on his store. He has spent $50,000 on shelving, wall-to-wall carpeting, partitions, and lighting, etc., all of which are part of the building and cannot be legally removed. He is concerned that a fire might damage these changes that he has made and wants to make sure he is protected for their value. He should purchase: |
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Definition
| Coverage for improvements and betterments |
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Term
| What clause is commonly used to require insureds to purchase insurance close to the value of the property? |
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Definition
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Term
| In the state of California a rate will not remain in affect if it is considered to be... |
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Definition
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Term
| What insurance professional would be employed to aid an insurance broker? |
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Definition
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Term
| If a building is damaged during an attempted burglary where money was stolen from a vault, what coverages would cover the loss of the money as well as the damage to the building? |
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Definition
| Inside the premises - theft of money and securities |
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Term
| A distinct feature of the alternative funding method known as self-funding is that the... |
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Definition
| benefits are tailored to the group |
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Term
| A pickup or a van with a gross vehicle wight of 9,5000 lbs. may be eligible for a personal policy if it was used in the business of Farming or ranching. |
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Definition
| A pickup or a van with a gross vehicle wight of 9,5000 lbs. may be eligible for a personal policy if it was used in the business of Farming or ranching. |
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Term
| Thomas Fry has insured a building under his commercial policy. The building was vacant for 75 consecutive days before a loss. The policy will not pay for the loss if caused by the perils of... |
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Definition
| Building glass breakage and vandalism. |
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Term
| A car is insured using a Personal Auto Policy. The car is damaged by hail. The loss is covered under... |
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Definition
| OTC - Other Than Collision |
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Term
| Any person who makes a loan of money using real property as security shall not make available the information contained in a borrower's fire or casualty policy if the borrower has filed a statement with the lender that they do not want the lender to disclose this information (CA Code 770.1) |
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Definition
| Any person who makes a loan of money using real property as security shall not make available the information contained in a borrower's fire or casualty policy if the borrower has filed a statement with the lender that they do not want the lender to disclose this information (CA Code 770.1) |
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Term
| A medical condition that exists on the policy effective date and during a specified time earlier, is the definition of... |
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Definition
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Term
| If an unendorsed claims-made general liability policy, how long does an insured have to report a claim which occurred during the policy period? |
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Definition
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Term
| Under a standard (ISO) HO3, real property and personal property are covered for the perils of... |
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Definition
| "All risks" - coverage applies to real property, broad form named perils coverage applies to personal property. |
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Term
| To determine the actual cash value of a commercial building for coinsuranc epurposes, use... |
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Definition
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Term
| The following type of loss would result in a claim for montery damages due to injury to another or damage to another's property: |
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Definition
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Term
| Jevon has a Personal Auto Policy with $250 deductible collision coverage and $100 deductible other than collision coverage. He runs a stop sign and hits another car. There is $1,300 worth of damage to his (the insured's car). How much would the insurer pay for the damage to Jevon's car? |
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Definition
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Term
The following situation suggests the need for an attachment of the additional residence rented to others endorsement to an insured's Homeowners Policy. The inusred also owns a two-family dwelling and rents it out to two families. The insured does this because:
The insured is concered that he/she might be liable to the renters for injuries that might occur in connection with the rental |
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Definition
The following situation suggests the need for an attachment of the additional residence rented to others endorsement to an insured's Homeowners Policy. The inusred also owns a two-family dwelling and rents it out to two families. The insured does this because:
The insured is concered that he/she might be liable to the renters for injuries that might occur in connection with the rental |
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Term
If a named insured is not the owner of the building, improvements and betterments are covered under the:
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Definition
| Business personal property |
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Term
| Under a value reporting form, if the insured has made no reports as required, what is the most that will be paid in the event of a loss? |
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Definition
| 75% of the limit, this is a penalty. |
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Term
| It is a violation of the CA Insurance Code to act as a producer for a non-admitted carrier unless... |
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Definition
| The producer is a surplus lines broker. |
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Term
| What additional coverage does a DP2 have compared to a DP1? |
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Definition
| Additional living expenses |
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Term
| Self-funding of employee benefit plans cannot be used for... |
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Definition
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Term
| Deafness would not be included among the chronic illness triggers of an LTC policy because it does not impair the person's ability to perform daily activities. |
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Definition
| Deafness would not be included among the chronic illness triggers of an LTC policy because it does not impair the person's ability to perform daily activities. |
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Term
| The commercial general liability (CGL) declarions page displays any different limits of insurance that apply to a policy. One limit shown is the insured's general aggregate limit. The following is a correct statement about the general aggregae limit... |
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Definition
| The general aggregate limit does NOT include the products - completed operations aggregate limit |
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Term
| Under a Personal Auto Policy, who qualifies as an insured while using a covered auto? |
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Definition
| Any person using the vehicle with permission |
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Term
| The retroactive date of a claims-made Professional Liability Policy is always |
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Definition
| the earliest date an event/loss may occur and still be eligible for recovery. |
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Term
| Fred is a named insured on a commercial property policy insuring a commercial building. Fred burns the building down and is convicted of arson. Fred's commercial property policy conditions state that... |
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Definition
| the mortgagee of the insured property can recover on this loss. |
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Term
| Under the financial responsibility law requirements in California, what is the minimum limit for several people injured in one accident? |
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Definition
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Term
| A home is damaged minutes after an earthquake, first by fire, and then by fuel pipes bursting and causing anexplosion. Under a homeowner's HO3 form will there be coverage? |
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Definition
| There is coverage, but only for the damage caused by the ensuing fire and explosion. In order for damage due to the earthquake to be covered, the insured must have bought an earthquake endorsement. |
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Term
| The possibility of financial loss resulting from the ownership of property is known as... |
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Definition
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Term
| The state laws that regulate insurer practices regarding underwriting, sales, rate-marketing, and claims handling are called... |
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Definition
| Market conduct regulation |
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Term
| What is the primary reason for co-insurance clauses in property policies? |
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Definition
| To encourage insureds to purchase coverage near the value of the property. |
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Term
| The Business Income coverage form covers the actual loss of business income sustained due to necessary suspension of operations. The loss of income must: |
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Definition
| Be caused by an insured peril, otherwise there is no coverage |
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Term
| A commercial property causes of loss forms do not cover any losses caused by... |
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Definition
| Smoke damage from industrial operations |
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Term
| Which type of exposure can best be defined as a condition or situation for any exposure or financial loss that is presented to an individual or family by such causes as injury, disability, death, or sickness? |
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Definition
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Term
| An apartment house is worth $500,000. The owner insures it for $300,000; the policy has an 80% coinsurance clause. There is a $200,000 loss. The insurer will pay... |
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Definition
$150,000
Formula: Did Pay ($300,000) / Should Pay ($400,000) = .75 X Damage (200,000) = $150,000
300,000 devided by 400,000 = .75
.75 times 200,000 = 150,000 |
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Term
| What is best defined as "the taking of property from a person by someone who has caused or who has threatened to cause that person bodily harm"? |
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Definition
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Term
An insured's duties after a loss are described in the homeowner's section I conditions. The following is NOT a correct statement about these duties:
The insured must... |
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Definition
| make all necessary repairs to protect the property from further damage. The expense is paid by the insured. (False. The insurer pays, not the insured.) |
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Term
| The following is NOT an uninsured motor vehicle as defined by personal auto policies uninsured motorist coverage: |
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Definition
| A vehicle owned by a state agency which self-insures its autos |
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Term
| What does a supplemental extend reporting period endorsement provide? |
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Definition
| Extends the filing reporting period indefinitely |
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Term
| How much coverage, if any, is available under HO3 for landlord's furnishings? |
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Definition
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Term
| In a claims-made Commercial General Liability Policy, which of the following begins when the policy period ends, and is activated when the policy is cancelled or not renewed? |
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Definition
| Basic extended reporting period. |
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Term
| What is one of the main reasons the federal government insurance programs exist? |
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Definition
| The large amount of resources needed for some catastrophic losses. |
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Term
| The named insured on a commercial insurance policy is "Sam Stone and Dan Sullivan, DBA S&S Bar and Grill." If the insurer cancels the policy, they are required to mail or deliver written notice to... |
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Definition
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Term
| What is one peril included in a DP2 that is not included in a DP1 |
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Definition
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Term
| One of the major advantages to insureds of a commercial lines package program over purchasing coverage on a mono-line basis is: |
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Definition
| The convenience of having all coverage in one policy |
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Term
| Under the commercial property coverage program, which causes of loss form(s) include coverage for the peril of windstorm? |
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Definition
| Basic, broad, and special |
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Term
| What endorsement can be used to insure a motorcycle under a Personal Auto Policy? |
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Definition
| Miscellaneous type vehicle endorsement |
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Term
| In a commercial property, the insurance claim is denied because of the insured's actions. The mortgage holder will in most cases: |
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Definition
| Still have the right to receive the full amount of the loss payments |
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Term
| Which property is excluded under an HO3 policy? |
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Definition
| Guard dog (ie, cats, dogs, pets in general fall under liability) |
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Term
| What type of coverage is best suited to insure maps, drawings, abstracts and mortgages? |
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Definition
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Term
| A client purchased a commercial policy on an owned building. The policy contains a coinsurance provision. The coinsurance clause: |
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Definition
| Makes carrying insurance of a percentage of the building value advisable to avoid a possible penalty |
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Term
| If a property owner is insured under a building and persona property insurance form, when is the property considered vacant? |
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Definition
| When less than 31% of the building space is rented to others or in use by the insured |
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Term
| An applicant would like to buy a Personal Umbrella Policy: |
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Definition
| Your insurer may require that he maintain underlying liability coverage by carrying auto and liability coverage. |
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Term
| The following is not a type of property commonly insured by using a commercial package policy inland marine coverage part: |
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Definition
| Automobiles while kept for the owner in a commercial parking garage (This falls under the Garage Keepers policy) |
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Term
| The medical expense coverage in a Workers' Compensation Policy: |
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Definition
| Does not have a time limit nor a dollar limit |
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Term
| The following losses would be excluded by the ordinance or law exclusion: |
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Definition
| Additional costs necessary to make a restroom ADA compliant |
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Term
| A written provision that modifies the provisions of the original contract is known as: |
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Definition
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Term
| Who is considered the first party to an insurance contract? |
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Definition
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Term
| The water damage exclusion in the causes of loss - special form does not apply to: |
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Definition
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Term
| What would not be listed on a commercial liability declarations page? |
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Definition
| Pollution liability limit |
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Term
| JAE Computer Company is being sued by Stack Computer Company for an advertising campaign Stack Computer feels is false and misleading. JAE Computer Company would find coverage for losses which could result from this lawsuit under which category of insurance: |
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Definition
| Commercial general liability |
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