Term
| What is a filed inland marine policy? |
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Definition
| Filed coverages have standardized coverage forms |
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Term
| What is an unfiled marine policy? |
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Definition
| Those that present a unique exposure to loss |
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Term
| Nationwide Marine definition |
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Definition
| Statement about the types of coverage that may properly be written on Inland marine insurance forms |
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Term
| Under Section 1 of the business owners policy, if an insurer wants to non renew, how many days before the expiration must the insurer notify the mortgageholder? |
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Definition
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Term
| Over what length is watercraft not covered under a business liability insurance policy? |
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Definition
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Term
| Under a business owners policy, property removed to protect it from further loss will be covered at another location for how long? |
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Definition
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Term
| Why are valuable papers and letter not settled under ACV in a business owners policy? |
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Definition
| The value is determined on the value of blank paper |
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Term
| A businessowners policy is... |
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Definition
| A self-contained pre packaged policy |
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Term
| The pollutant clean up and removal coverage in the businessowners policy has a limit of... |
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Definition
| 10,000 in any 12 month period |
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Term
| How long will the businessowners policy liability coverage pay for necessary medical expenses of others? |
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Definition
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Term
| what is the form of payment bond that protects an owner contracting for work, against liens from subcontractors, suppliers or laborers who are not paid for their services and materials by the general contractor are.... |
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Definition
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Term
| who does the AGENT represent? |
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Definition
| The principal aka ins company |
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Term
| What documentation grants express authority to an agent? |
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Definition
| Agents contract with the principal |
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Term
| What are the elements of state laws governing contracts? |
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Definition
| Legal purpose, offer and acceptance and consideration |
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Term
Which of the following are not one of the 4 primary elements considered in establishing negligence..
1. legal duty
2. standard of care
3. proof of carelessness
4. proximate cause |
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Definition
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Term
| On a DP-3 Property Special Form policy what is the coverage provided for the personal property? |
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Definition
| The same as a DP-2 Broad form, personal property is written on a named or specific peril |
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Term
| What kind of perils is Coverage A on a dwelling policy? |
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Definition
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Term
| What is coverage C for in a dwelling policy / what does it cover? |
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Definition
| Broad form perils & Personal property |
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Term
| In a dwelling policy when do you get personal liability coverage? |
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Definition
| When it is added as a supplement or written as a separate policy. |
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Term
| What is off-premises coverage in a broad theft endorsement? |
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Definition
| Off-premises coverage through a broad theft endorsement covers property that is either owned or used by the insured when he or she is away from the described premises |
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Term
| How much will the h/o policy pay if the insured calls the fire department to their premise? |
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Definition
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Term
All of the following are special personal property limits under a h/o policy except..
1. $500 for business personal property on the insured premises
2. $1,500 for securities, accounts, deeds and evidences of debt
3. $1,500 for trailers not used with watercraft
4. $2,500 for theft of firearms |
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Definition
| $500 for business personal property on the insureds premises |
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Term
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Definition
| Applies to assessments against the insured by a condominium association or other cooperative body of property owners. Coverage is limited to $1000, but am, increased limit of overage is available by endorsement |
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Term
| When items on a homeowners policy are also under a scheduled personal property endorsement how will the policy pay out in the event of a loss? |
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Definition
| Items that are scheduled no longer qualify for coverage under Coverage C of the homeowners policy, any claim would be paid out under the endorsement |
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Term
| What is the punishment for providing false information to the motor vehicle accident indemnification corporation? |
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Definition
| A misdemeanor and a fine of $500 - $2500 or 30 day imprisonment |
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Term
| Which inland marine coverage condition says that an insurer will settle with the actual owners of property involved in a loss? |
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Definition
| Privilege to adjust with the owner |
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Term
| What is the occurrence form trigger based on? |
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Definition
| The date when injury or damage occurs |
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Term
| The transfer of money from inside a banking premises to a person other than a messenger outside those premises or to a place outside those premises is covered under which commercial crime coverage? |
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Definition
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Term
| Fire department service charge in a builders risk form is... |
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Definition
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Term
| What is not covered under accounts receivable coverage forms? |
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Definition
| Any loans required to offset uncollectible amounts |
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Term
| Under the commercial property coverage program, the basic causes of loss form insures against loss caused by ... |
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Definition
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Term
| Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained? |
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Definition
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Term
| The policy conditions define ... |
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Definition
| How parties to the contract must act following a loss. |
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Term
In addition to the common policy conditions, all of the following conditions apply to liability coverage EXCEPT
a) Employers liability.
b) Separation of insured.
c) Legal action against insurer.
d) Bankruptcy. |
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Definition
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Term
Which of the following additional perils is covered under both the basic form and broad form dwelling policies?
a) Weight of ice, snow, or sleet
b) Freezing of plumbing, heating, or air conditioning systems
c) Internal explosion
d) Falling objects |
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Definition
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Term
| Expenses that an organization would not have incurred if business interruption had not existed are known as |
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Definition
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Term
| An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's liability policy has a limit of $500,000. This amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does the insured have? |
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Definition
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Term
| The personal injury liability endorsement to an HO policy applies to all of the following EXCEPT |
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Definition
| A third party breaks a leg when the insured knocks him down. The broken leg is covered by personal liability coverage. |
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Term
Which of the following statements is true regarding the premium computation for workers compensation insurance?
a) The insured pays a guaranteed premium based on an estimated value of the annual income received.
b) The premium is set at the beginning of the policy period and will not change.
c) 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.
d) The premium basis for workers compensation insurance varies by the type of industry in which the insured is involved. |
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Definition
c) 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.
Because the initial premium calculation is based on estimated payrolls, a premium auditor may inspect actual payrolls paid to ensure that adequate premiums are being paid. |
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Term
| An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. What contract characteristic does this describe? |
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Definition
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Term
| Crunchy Flakes Cereal Company shipped some of its product in faulty containers that caused spoilage. This resulted in some consumers becoming ill. If the company is sued for this event, it would be an example of a |
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Definition
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Term
If a contractor defaults on a performance contract, all of the following statements would be true EXCEPT ...
a) The principal's obligations end.
b) The surety will attempt to seek reimbursement from the contractor for any amounts they pay.
c) The surety may cancel the bond so as to avoid having to pay losses and expenses.
d) The obligee may hire another contractor to complete the job and have the surety repay them. |
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Definition
| c) The surety may cancel the bond so as to avoid having to pay losses and expenses. |
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Term
Under a dwelling policy, which of the following is NOT a factor in determining a loss?
a) The amount negotiated by the insured
b) The policy limit
c) The amount reflecting the insured's interest in the property at the time of loss
d) The amount necessary to repair or replace the property |
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Definition
| a) The amount negotiated by the insured |
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Term
| Under the personal auto policy, liability for bodily injury resulting from the insured's use of a nonowned automobile is ... |
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Definition
| Provided by the insured's policy on an excess basis. |
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Term
All of the following property is insured under Coverage A of a farm policy EXCEPT ..
a) A lawnmower owned by the insured used to service the premises.
b) The dwelling described in the declarations page.
c) Personal lawnmower of a tenant used to service the described location.
d) Material on premises to be used for repair or to alter the insured structure.
Property belonging to a tenant is not covered. |
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Definition
| Personal lawnmower of a tenant used to service the described location. |
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Term
| The garage coverage form is used to insure |
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Definition
| Auto businesses, such as auto dealers, service stations, and auto repair shops. |
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Term
| A bond is written for a set limit, and the surety will be liable only for this amount of the limit. This limit is known as the |
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Definition
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Term
An insurance agency could purchase an errors and omission insurance policy which would provide protection in the event of any of the following events EXCEPT...
a) The agency loses commission income from policies that were not issued by the insurer.
b) The agency negligently fails to offer an increased limit of coverage or benefit under a policy.
c) The agency is sued by an insured for giving incorrect advice.
d) The agency negligently fails to renew a policy causing a client to suffer a financial loss.
Errors and omissions insurance protects an insured against actions claiming the insured has failed to act in a professional manner. It does not cover claims arising out of criminal wrongs. |
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Definition
| The agency loses commission income from policies that were not issued by the insurer. |
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Term
| What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act? |
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Definition
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Term
Which of the following is NOT an optional coverage available in a businessowners policy?
a) Mechanical breakdown
b) Employee dishonesty
c) Workers compensation
d) Outdoor signs and exterior-grade floor glass |
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Definition
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Term
| Circulating deceptive sales material to the public is what type of Unfair Trade Practice? |
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Definition
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Term
| An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage. This is an example of |
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Definition
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Term
| Who would participate in a Write Your Own (WYO) flood insurance program? |
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Definition
| Private insurers that wish to write and service National Flood Insurance policies on a no risk-bearing basis |
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Term
| The Earthquake and Volcanic Eruption Endorsement added to Commercial Property policies consider all earthquake shocks as one earthquake if they occur within what maximum time period? |
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Definition
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Term
All of the following statements concerning liability coverage are true EXCEPT ...
a) Liability policies defend the insured against claims, real or alleged.
b) The policyholder can sue the insurer whether or not all conditions and provisions of the policy have been met.
c) The insurer cannot refuse to pay a claim even if the insured is bankrupt.
d) Liability policies normally include supplementary payment provisions. |
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Definition
| The policyholder can sue the insurer whether or not all conditions and provisions of the policy have been met. |
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Term
| An advertising company has its annual holiday party for employees and customers, after which a customer who had too much to drink is involved in an automobile accident. Occupants of the other car involved in the accident sue the company for serving the customer too much alcohol. Will the company’s businessowners policy provide coverage? |
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Definition
Yes, none of the exclusions will apply.
The liquor liability exclusion applies only to insureds in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages. In this case, the company’s businessowners policy most likely will have to pay. |
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Term
| The Superintendent can examine an authorized fraternal benefit society and property/casualty insurance company once every |
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Definition
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Term
Which of the following claims does NOT fall under the scope of liability coverage of Section II of a homeowners policy?
a) A visitor slips on some ice causing him to be injured when falling down the porch steps.
b) The named insured is borrowing a friend’s jacket which is later damaged.
c) The named insured's 8-year-old son throws a rock and strikes a neighbor's child, breaking her eye-glasses and cutting her face.
d) The named insured's dog bites the neighbor, tearing his clothes and causing him to be treated by a doctor. |
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Definition
| The named insured is borrowing a friend’s jacket which is later damaged. Damage to property of others in the care, custody or control of the insured is specifically excluded. |
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Term
Which is true regarding HMO coverage?
a) It is divided by state.
b) HMOs provide nationwide coverage.
c) It is divided into geographic territories.
d) It is divided based on the average tax bracket of a family |
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Definition
It is divided into geographic territories.
HMOs offer services to those living within specific geographic boundaries that may be formed by county lines or city limits. If one lives within the boundaries, they are eligible to belong to the HMO, but if they do not live within the boundaries, they are ineligible. |
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Term
| Several insureds have become liable because of a single loss. How will the policy’s limit of liability be affected? |
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Definition
| No more than the per occurrence limit applies, no matter how many insureds are involved. |
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Term
All of the following are other coverages included in both the broad and special form dwelling policy EXCEPT
a) Theft of personal property.
b) Collapse.
c) Breakage of glass.
d) Lawns, trees, shrubs, and plants. |
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Definition
Theft of personal property.
Theft of personal property can only be included by endorsement. |
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Term
a) Bridges, tunnels, and other instrumentalities of transportation and communication.
b) Common carrier cargo liability.
c) Commercial property floater risks.
d) Domestic shipments and transportation risks. |
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Definition
| Common carrier cargo liability. |
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Term
| What are the 4 classes of Inland marine risks? |
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Definition
| The four classes of inland marine risks are the following: domestic shipments and transportation risks; bridges, tunnels, and other instrumentalities of transportation and communication; commercial property floater risks; and personal property floater risks. |
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Term
| If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? |
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Definition
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Term
Which of the following losses would most likely NOT be covered under Coverage A in the dwelling policy?
a) Supplies used for repair of the dwelling
b) Theft of a renter's lawnmower used to service the premises
c) Fire damage to building material on the premises
d) Outdoor personal property of the insured |
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Definition
Theft of a renter's lawnmower used to service the premises
Coverage A on the dwelling includes all attached structures and outdoor personal property or equipment used to maintain or service the premises if not covered elsewhere. The lawnmower most likely would not be covered because the dwelling insured is rented to others without content coverage. If the landlord furnishes lawnmowers or other equipment to service the premises, there is no need to schedule a small amount of content coverage. |
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Term
| In equipment breakdown coverage, all accidents would be considered a single accident if they occur ... |
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Definition
| at a single locations at the same time and from the same cause |
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Term
| If a person, firm, association or corporation conducts insurance business in NY without a certificate of authority the penalty for the first violation is |
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Definition
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Term
| what type of coverage is coverage e in a HO policy? |
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Definition
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