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Casualty And Property Insurance

Question 1 of 3

Q1 . Which of the following is a hazard as opposed to a peril?

Q2 . Which insurance company department is responsible for paying insureds' covered losses?

Q3 . Which insurance company department is responsible for accepting and rejecting applications based on company standards?

Q4 . Which one of the following injuries qualifies as a compensable injury under workers compensation laws?

Q5 . The name of a liability insurance policy that provides high limits of coverage above underlying coverage and may fill a number of insurance gaps is

Q6 . Which of the following describes the principle of indemnity?

Q7 . Who is responsible for licensing insurance agents?

Q8 . The insured's policy is nearing the expiration date. The insurance company doesn't want to continue the insured's coverage, so it sends the insured a notice that the policy will not continue beyond the expiration date of the policy. This is considered which of the following?

Q9 . Failure to use the care that is required to protect others from the unreasonable chance of harm is called what?

Q10 . Renata's home is demolished in a fire that started when a neighbor misdirected the fireworks he set off to celebrate the Fourth of July. Renata's insurance company pays her for the damage, and then files suit against the neighbor to recover the amount it paid for the loss. This is an example of the application of what policy condition?

Q11 . The Johnsons' home is covered by a Special Dwelling policy. When a fire damages the home, the family is forced to stay at a motel for a month while repairs are made. What coverage might reimburse them for these expenses?

Q12 . Which of the following is a personal and advertising injury?

Q13 . Benson Pharmaceutical Company decides not to manufacture a new drug after determining that it has serious potential side effects. This is an example of which risk management method?

Q14 . Agent Blondell is offering a free television to every applicant who agrees to buy insurance through his agency. In most states, this is an illegal practice known as

Q15 . A heavy snowfall causes the roof over Amaya's living room to collapse. The insurance company asks her to move her belongings out of the living room to protect them from further damage and put a tarp over the roof until it can be repaired. It also asks her to complete a proof of loss form listing the items that were damaged. This is an example of the application of what policy condition?

Q16 . Adequate coverage for large, powerful boats is provided by which of the following?

Q17 . The Excel Insurance Company is incorporated in the state of Tennessee. It is also authorized to do business in Georgia. In Georgia, Excel is known as what type of company?

Q18 . Consuela's Homeowners policy has an 80% Coinsurance condition. Her home's value is $125,000. What is the minimum amount of coverage she must carry to avoid a coinsurance penalty for partial losses?

Q19 . A woman is injured when she breaks a tooth on a rock that mysteriously found its way into a box of cereal. This is an example of which of the following?

Q20 . Under the supplementary payments provided by general liability coverage, when a vehicle to which the bodily injury insurance applies is involved in an accident and bail bonds are required, the insurer will pay up to what amount?

Q21 . Which of the following represents a pure risk?

Q22 . Which of the following statements concerning regulation of the insurance industry is correct?

Q23 . Under the additional coverages of the Businessowners property coverage, property removed to protect it from loss will be covered at another location for up to how many days?

Q24 . George is a trash collector earning $35,000 a year who hurts his back on the job, so he can no longer go out with the collection trucks. However, he can still be a route coordinator in the office at a salary of $25,000 per year. To what extent is George industrially disabled?

Q25 . A device that is used to minimize small nuisance claims and that helps to keep insurance premiums down is called what?

Q26 . Theresa, a spectator at a baseball game, is injured when an errant ball hits her in the head. She sues the stadium owners for negligence. Which one of the following defenses against negligence would the owners probably use?

Q27 . George Hawthorn is employed by Moison Appliances as a shipping clerk. As he is stacking TVs in the storage room, he is surprised by two men, both carrying guns. They proceed to empty the warehouse of TVs. This is an example of what?

Q28 . Commercial insureds who need more Liability coverage than provided by a certain policy or want coverage for losses excluded by a certain policy should purchase which of the following?

Q29 . Which one of the following answer choices lists all of the parties to a Surety bond?

Q30 . Under most property insurance policies, the policy territory includes which of the following?

Q31 . J&M Industries does not have a group health insurance plan for its employees. Instead, it pays employees' medical expenses out of a fund specifically created for this purpose. This is an example of

Q32 . Which of the following is not one of the duties of an agent?

Q33 . A voluntary action to rid the ship of cargo to prevent further damage is called what?

Q34 . If the named insured acquires a new car that does not replace a previously insured auto, what must the insured do to obtain liability coverage for the auto under her Personal Auto policy from the day it is acquired?

Q35 . Vanessa's Liability coverage has split limits of 100/300/50. How much coverage does Vanessa have for property damage liability?

Q36 . Under the dwelling property forms, personal property moved to a new principal residence will be automatically covered at the new location (subject to policy expiration) for a period of how long?

Q37 . The name of the coverage that provides legal liability insurance for damage to customers' autos that are left with the insured for service, repair, or storage is which of the following?

Q38 . The tread on Alan's automobile tires is very thin. This is an example of what type of hazard?

Q39 . Something that might increase the likelihood that a loss will occur, is called what?

Q40 . The law of large numbers

Q41 . Which of these items of personal property would be covered under a Dwelling policy when Coverage C is written?

Q42 . An individual lives in an apartment. Which homeowners form should he purchase to cover his personal property?

Q43 . Under a CPP, when does the Inspections and Surveys condition give the insurance company the right to inspect the insured's premises?

Q44 . The insured knows that it might take several months for his damaged turbine to be fully repaired, so he authorizes $500 for temporary repairs so that production can resume. This expenditure would be covered under which coverage in the Equipment Breakdown Protection coverage form?

Q45 . When an uninterrupted chain of events resulting from a negligent act causes a loss, that act is considered to be which of the following?

Q46 . What is meant by a contract of adhesion?

Q47 . Insurance is a mechanism used to manage which of the following types of risk?

Q48 . A nonexclusive agent

Q49 . Can states require insurance companies to use certain forms or rates in connection with certain types of insurance?

Q50 . Under the Appraisal condition, the insured and the insurance company each chooses an appraiser. If the appraisers do not agree, the dispute is submitted to a third individual agreed upon jointly by the insured and the insurance company. That third party is called the

Q51 . Which of the following could not be covered under a Dwelling policy?

Q52 . Theft generally means which of the following?

Q53 . Claims that are paid by general liability coverage are charged against the aggregate policy limits and reduce the amount of insurance remaining to pay future claims. However, CGL aggregate limits will be reinstated in full

Q54 . Walt and Joanna are co-owners of a bagel shop. Both Walt and Joanna are listed in the declarations of the policy that insures the business, with Joanna's name appearing first. The declarations also list First State Bank, which has an outstanding loan on the business. Who is considered a named insured on the policy?

Q55 . Ann's auto was damaged when it was struck by another car whose driver ran a stop sign. Which part of Ann's Personal Auto policy will cover the damage to her car?

Q56 . Which of the following is covered under the Builders Risk coverage form?

Q57 . The purpose of FAIR Plans (Fair Access to Insurance Requirements) is to do what?

Q58 . The only significant difference between the occurrence and claims-made forms of general liability insurance is found in which of the following?

Q59 . Highpoint Industries has an automatic sprinkler system installed in its office building. This is an example of which risk management method?

Q60 . What is the consideration that an insurer gives to the insured under an insurance contract?

Q61 . An indirect loss is which of the following?

Q62 . In the event of a physical damage loss that makes a covered auto unavailable for a period of time, a personal auto policy will provide coverage for transportation expenses at the rate of $20 per day up to how much?

Q63 . Under a personal auto policy, which of the following is not a collision loss?

Q64 . The most common definition of actual cash value (ACV) in the property insurance field is which of the following?

Q65 . An Assigned Risk Plan covers which of the following?

Q66 . Under a CPP, how long after the end of the policy period can the insurance company examine the insured's books and records?

Q67 . In legal terms, the actions by one party might have the effect of giving up a known right. When this occurs, the party has created which of the following?

Q68 . Jake has two insurance policies on his house. They are issued by different companies, but they are otherwise identical. The term for this is

Q69 . Liability that an insured incurs because of the actions of others, such as employees, is called what?

Q70 . George accidentally hits Elaine's car with his car. The accident causes $3,000 of damage to Elaine's car, plus Elaine is injured and her medical bills come to $1,000. George's car also sustains $500 damage in the accident, but George isn't hurt. What will George's auto liability coverage pay for?

Q71 . A homeowner who wants the maximum protection for her home and personal property should purchase the

Q72 . Which type of insurance professional does not actually sell insurance coverages, but sells advice about insurance coverages?

Q73 . To avoid problems with underinsurance and overinsurance, a business that has fluctuating inventory values during the year should consider coverage written on

Q74 . Businessowners policies provide an additional coverage for preservation of property when it is removed from the premises to protect it from loss by a covered peril. The coverage will apply at other locations for up to

Q75 . The "ground rules" are described in which part of an insurance policy?

Q76 . As a result of a successful lawsuit, Agnes receives $10,000 to cover her specific losses, an additional $40,000 for pain and suffering, and because the defendant was considered to have acted with willful disregard for others' safety, Agnes was awarded an additional $75,000. This additional $75,000 award can best be described as what type of damages?

Q77 . Which of the following is covered under personal and advertising injury liability coverage in the BOP?

Q78 . In a competitive state, an employer can obtain workers compensation insurance from which of the following?

Q79 . When the special causes of loss form is attached to a commercial property coverage part, coverage for theft of furs and fur garments is limited to how much?

Q80 . Under a personal auto policy, if an insured already has physical damage coverage for at least one vehicle, a new vehicle will be automatically covered from the date it is acquired as long as the insured notifies the insurer and requests the coverage within how many days?

Q81 . Which of the following situations would be covered by liability insurance under a personal auto policy?

Q82 . An agreement between the insured and the insurer that certain conditions will be met is which of the following?

Q83 . Which of the following losses would be paid under the Other Than Collision coverage of the Personal Auto policy?

Q84 . What is the purpose of a retroactive date in the claims-made form?

Q85 . Which of the following is typically NOT covered under a standard homeowners insurance policy?

Q86 . What is meant by the term "adverse selection"?

Q87 . Byron sells his car to his friend Annette, but does not notify his insurance company. Assuming that Byron's policy will transfer to her automatically, Annette doesn't buy insurance for the car. When the car is stolen, Annette files a claim with Byron's former insurer. The insurer denies the claim. This is an example of the application of what policy condition?

Q88 . Myrtle has a Dwelling policy with Broad Theft coverage applicable both on and off her premises. Which of the following theft losses would be covered?

Q89 . Who administers the NFIP?

Q90 . The insured's business sustains $25,000 damage in a fire. The fire department that was called to the scene billed the insured $1,000. The business is insured under the Building and Personal Property coverage form for $500,000 with a $5,000 deductible. How much will the insurance company pay for this loss?

Q91 . A breakdown of equipment covered under the Equipment Breakdown Protection coverage form results in the simultaneous breakdown of three other pieces of covered equipment. According to the form, how many "breakdowns" occurred in this loss?

Q92 . Vehicles that might be insured by a personal auto policy are described in the eligibility rules and the policy definitions. Each of the following is true about vehicles eligible for PAP coverage except

Q93 . Which of the following losses is not excluded under the physical damage coverage of a personal auto policy?

Q94 . Three policies, totaling $300,000 in coverage, apply to an $80,000 loss. Policy A's limit of insurance is $100,000, policy B's limit is $50,000, and policy C's limit is $150,000. Use the pro rata method to determine how much policy C would pay for this loss.

Q95 . Which one of the following illustrates the concept of contributory negligence?. Martin buys a tanning bed for his home. Although he follows the manufacturer's directions to the letter, he is severely burned after spending five minutes in the bed.

Q96 . A Basic Dwelling policy form automatically provides coverage for losses caused by each of the following perils except which one?

Q97 . Which Causes of Loss form provides open peril coverage?

Q98 . Which of the following coverages may be attached to a homeowners policy only by endorsement?

Q99 . Because she has always been in good health, Donna decides to cancel her health insurance policy. This is an example of which risk management method?

Q100 . Under an insurance contract, the uncertainty of events can lead to unequal financial results for the two parties. This means that insurance is what kind of contract?

Q101 . A mutual insurance company

Q102 . What is the standard deductible for the BOP property coverage? A. $500 B. $1,000 C. $750 D. $250

Q103 . Which of the following are excluded under Coverage A of the CGL?

Q104 . Some property insurance policies provide for payment of the full policy limit in the event of a total loss by a covered peril, regardless of the actual value of the property. These policies are known as which of the following?

Q105 . Which part of an insurance policy sets the rules of conduct, duties, and obligations of the insured and insurer under the terms of the contract?

Q106 . Under liability insurance policies, what does an "aggregate limit" mean?

Q107 . Under a homeowners policy, in addition to any payments for damages awarded against an insured, the insurance company will reimburse the insured for reasonable expenses incurred at the company's request, including loss of earnings of up to how many days?

Q108 . Under liability insurance policies, what does the term "personal injury" usually mean?

Q109 . If Coverage C (personal property coverage) is written on a dwelling form, the Other Coverages section of the policy will extend the insurance to provide worldwide personal property coverage for an amount up to which of the following?

Q110 . Which of the following is not a requirement for forming a valid contract?

Q111 . Under the 1989 dwelling policy forms, if coverage for vandalism and malicious mischief is attached to a policy, it will be suspended whenever the building has been vacant for more than how many days?

Q112 . The written agency contract between an insurer and an agent constitutes the agent's

Q113 . Which of the following would not be covered under Coverage A or Coverage B of a Dwelling policy?

Q114 . Which of the following statements applies to Mechanical Breakdown coverage?

Q115 . What is the limit on Pollutant Cleanup and Removal coverage under the Business and Personal Property coverage form?

Q116 . How do deductibles apply in the Equipment Breakdown Protection coverage form?

Q117 . If coverage for towing and labor costs is included in a personal auto policy, labor costs will be covered only if the labor is performed

Q118 . The term "time element coverage" is used when the amount of loss depends on which of the following?

Q119 . Which of the following Other Coverages is not included in the Basic Dwelling coverage form?

Q120 . Which of the following could be covered under the Liability section of a named insured's Personal Auto policy?

Q121 . Under a CPP, how many days advance notice is required if the insurance company is cancelling the contract for nonpayment of premium?

Q122 . Which of the following properties would not be excluded under the Building and Personal Property coverage form?

Q123 . Which of the following Commercial Auto coverage forms does not offer liability coverage?

Q124 . National flood insurance is available for which of the following?

Q125 . Which of the following statements concerning binders is correct?

Q126 . What is the largest office building risk that might be eligible for a BOP?

Q127 . What is the per-year policy limit for coverage of electronic data under the Business and Personal Property coverage form?

Q128 . Under the terms of the Suspension provision in the Equipment Breakdown Protection coverage form, coverage on dangerous equipment can be suspended when?

Q129 . Most liability claims are based on negligence that results in injury or damage. An act of negligence is considered to be a tort. What does the term "tort" mean?

Q130 . Judgment rating is based on which of the following?

Q131 . Which of the following cannot be covered by a homeowners Watercraft Liability endorsement?

Q132 . Various types of domestic shipments may be covered under a number of inland marine forms. Which of the following is not one of the nonfiled marine forms used to insure domestic shipments?

Q133 . An action that, in a natural and continuous sequence, produces a loss is the

Q134 . Which of the following is not true about insurance binders?

Q135 . Which dwelling policy forms are named peril forms?

Q136 . What rating method makes modifications to manual rates to reflect the unique characteristics of each risk?

Q137 . Liability that is imposed as a matter of law without regard to negligence is called what?

Q138 . A homeowners policy has been in force 30 days, and the company discovers that the insured has misrepresented certain material facts. The insurer wants to cancel the policy. Under what circumstances may it do so?

Q139 . In addition to maximum floor space, the BOP eligibility rules limit eligible risks to what maximum?

Q140 . How often is the insured required to submit reports of values under the Floor Plan coverage form?

Q141 . Which one of the following is not required in a CGL coverage part?

Q142 . Which portion of the Garage coverage form covers liability for damage to property of others in the insured's care, custody, or control?

Q143 . In most states, workers compensation laws apply to which of the following?

Q144 . Under the NCCI workers compensation and employers liability policy form, the basic, or minimum, limit for employers liability coverage is how much per accident?

Q145 . If coverage for personal liability and medical payments is attached to a dwelling policy, what basic limit of coverage applies to medical payments unless a higher amount is purchased?

Q146 . Which of the following is not true about workers compensation insurance?

Q147 . Under which type of marketing system do agents or agencies operate as independent businesses but agree to represent only one insurance company?

Q148 . Solicitors may not

Q149 . Unless an exception applies, when does coverage under an NFIP policy begin?

Q150 . When are losses under the Building and Personal Property coverage form paid at replacement or repair cost?

Q151 . If an insurer decides to not renew the CGL policy, how many days notice of nonrenewal must be provided to the first named insured?

Q152 . Tom Baxter has an automobile insured by a personal auto policy. He trades in his car and purchases a new private passenger auto as a replacement vehicle. If he does not notify the insurance company, the liability coverage for his replacement vehicle will apply automatically for how long?

Q153 . Which part of an insurance policy describes what property and/or perils will be covered by the contract?

Q154 . A commercial building valued at $300,000 is insured for $200,000. If the policy is written with an 80% coinsurance percentage and a standard deductible, how much would be paid for a $60,000 loss?

Q155 . Which of the following accurately describes the key difference between casualty insurance and property insurance?

Q156 . Which of these losses would be covered under the Camera and Musical Instrument Dealers coverage form?

Q157 . Which of the following losses would be paid under the Business Auto coverage form's Comprehensive coverage?

Q158 . In a Crime insurance policy, certificates of deposit are considered which of the following?

Q159 . Which of the following would not normally be excluded under a property insurance contract?

Q160 . The Special Dwelling policy form provides which of the following?

Q161 . What is the standard deductible under the regular program of the National Flood Insurance Program?

Q162 . Under the Equipment Breakdown Protection coverage form, which of the following causes of damage to covered equipment would not be a covered "breakdown"?

Q163 . Medical payments under a homeowners policy are available for expenses resulting from an injury to which of the following?

Q164 . Homeowners coverage for loss of personal property because of "mysterious disappearance" is provided by what?

Q165 . An insured has a DP-3 covering a home that has a replacement value of $100,000. The insured carries $60,000 of insurance. Following a loss, the determined is made that it would cost $12,000 to replace the damaged portion of the home. How much could the insured collect, assuming the ACV of the loss is $6,000?

Q166 . Which of the following losses could be covered under the Theatrical Property coverage form?

Q167 . Under which of the Dwelling policy forms may the insured be reimbursed for the replacement cost when the dwelling is destroyed?

Q168 . The Motor Truck Cargo policy does which of the following?

Q169 . Apparent authority of an insurance agent is the authority

Q170 . Claims-made general liability coverage does not apply to bodily injury or property damage that occurs when?

Q171 . Medical Payments coverage provides protection for all of the following except which one?

Q172 . Which of the following losses are excluded under most Yacht policies?

Q173 . If general liability "claims-made" coverage is renewed by "occurrence" coverage and the insured purchases a supplemental extended reporting period (ERP), the period for reporting claims under the policy will be extended for how long?

Q174 . A commercial property coverage part with the basic causes of loss form attached covers all of the following perils except which one?

Q175 . An employer purchases a fidelity bond to protect against potential losses by employee dishonesty. In this situation, each of the employees covered by the bond is considered which of the following?

Q176 . At DEF Insurance Company, agents are employees of the company who are paid a salary plus commissions. This is an example of what type of insurance marketing system?

Q177 . Which one of these statements about the Fair Credit Reporting Act is not correct?

Q178 . According to the terms of the Mortgage condition, which of the following does not apply to the rights and duties of the mortgagee?

Q179 . Deirdre has a complete 12-piece tea service valued at $20,000. In an explosion covered by her insurance policy, most of the tea service comes through intact, but one of the tea cups is broken beyond repair. The cup by itself would be valued at $400, but the value of Deirdre's tea service without the broken cup is $17,000. How much will Deirdre's insurance company pay for the broken cup?

Q180 . All of the following must be present to establish negligence except which one?

Q181 . Loss caused by sprinkler leakage is covered under which Commercial Property Causes of Loss forms?

Q182 . Under the business auto coverage part, liability insurance applies to mobile equipment while which of the following occurs?

Q183 . Commercial general liability coverage provides medical expense payments for accidental injuries if the expenses are incurred and reported to the insurer within what date?

Q184 . Under homeowners coverage for medical payments to others, necessary medical expenses for treating an accidental injury will be covered if it incurred within how many days?

Q185 . When an insured decides to cancel an insurance policy prior to the expiration date, the unearned premium is returned on what basis?

Q186 . Which of the following is a hazard as opposed to a peril?

Q187 . Which insurance company department is responsible for paying insureds' covered losses?

Q188 . Which insurance company department is responsible for accepting and rejecting applications based on company standards?

Q189 . Which one of the following injuries qualifies as a compensable injury under workers compensation laws?

Q190 . The name of a liability insurance policy that provides high limits of coverage above underlying coverage and may fill a number of insurance gaps is

Q191 . Which of the following describes the principle of indemnity?

Q192 . Who is responsible for licensing insurance agents?

Q193 . The insured's policy is nearing the expiration date. The insurance company doesn't want to continue the insured's coverage, so it sends the insured a notice that the policy will not continue beyond the expiration date of the policy. This is considered which of the following?

Q194 . Failure to use the care that is required to protect others from the unreasonable chance of harm is called what?

Q195 . Renata's home is demolished in a fire that started when a neighbor misdirected the fireworks he set off to celebrate the Fourth of July. Renata's insurance company pays her for the damage, and then files suit against the neighbor to recover the amount it paid for the loss. This is an example of the application of what policy condition?

Q196 . The Johnsons' home is covered by a Special Dwelling policy. When a fire damages the home, the family is forced to stay at a motel for a month while repairs are made. What coverage might reimburse them for these expenses?

Q197 . Which of the following is a personal and advertising injury?

Q198 . Benson Pharmaceutical Company decides not to manufacture a new drug after determining that it has serious potential side effects. This is an example of which risk management method?

Q199 . Agent Blondell is offering a free television to every applicant who agrees to buy insurance through his agency. In most states, this is an illegal practice known as

Q200 . A heavy snowfall causes the roof over Amaya's living room to collapse. The insurance company asks her to move her belongings out of the living room to protect them from further damage and put a tarp over the roof until it can be repaired. It also asks her to complete a proof of loss form listing the items that were damaged. This is an example of the application of what policy condition?

Q201 . Adequate coverage for large, powerful boats is provided by which of the following?

Q202 . The Excel Insurance Company is incorporated in the state of Tennessee. It is also authorized to do business in Georgia. In Georgia, Excel is known as what type of company?

Q203 . Consuela's Homeowners policy has an 80% Coinsurance condition. Her home's value is $125,000. What is the minimum amount of coverage she must carry to avoid a coinsurance penalty for partial losses?

Q204 . A woman is injured when she breaks a tooth on a rock that mysteriously found its way into a box of cereal. This is an example of which of the following?

Q205 . Under the supplementary payments provided by general liability coverage, when a vehicle to which the bodily injury insurance applies is involved in an accident and bail bonds are required, the insurer will pay up to what amount?

Q206 . Which of the following represents a pure risk?

Q207 . Which of the following statements concerning regulation of the insurance industry is correct?

Q208 . Under the additional coverages of the Businessowners property coverage, property removed to protect it from loss will be covered at another location for up to how many days?

Q209 . George is a trash collector earning $35,000 a year who hurts his back on the job, so he can no longer go out with the collection trucks. However, he can still be a route coordinator in the office at a salary of $25,000 per year. To what extent is George industrially disabled?

Q210 . A device that is used to minimize small nuisance claims and that helps to keep insurance premiums down is called what?

Q211 . Theresa, a spectator at a baseball game, is injured when an errant ball hits her in the head. She sues the stadium owners for negligence. Which one of the following defenses against negligence would the owners probably use?

Q212 . George Hawthorn is employed by Moison Appliances as a shipping clerk. As he is stacking TVs in the storage room, he is surprised by two men, both carrying guns. They proceed to empty the warehouse of TVs. This is an example of what?

Q213 . Commercial insureds who need more Liability coverage than provided by a certain policy or want coverage for losses excluded by a certain policy should purchase which of the following?

Q214 . Which one of the following answer choices lists all of the parties to a Surety bond?

Q215 . Under most property insurance policies, the policy territory includes which of the following?

Q216 . J&M Industries does not have a group health insurance plan for its employees. Instead, it pays employees' medical expenses out of a fund specifically created for this purpose. This is an example of

Q217 . Which of the following is not one of the duties of an agent?

Q218 . A voluntary action to rid the ship of cargo to prevent further damage is called what?

Q219 . If the named insured acquires a new car that does not replace a previously insured auto, what must the insured do to obtain liability coverage for the auto under her Personal Auto policy from the day it is acquired?

Q220 . Vanessa's Liability coverage has split limits of 100/300/50. How much coverage does Vanessa have for property damage liability?

Q221 . Under the dwelling property forms, personal property moved to a new principal residence will be automatically covered at the new location (subject to policy expiration) for a period of how long?

Q222 . The name of the coverage that provides legal liability insurance for damage to customers' autos that are left with the insured for service, repair, or storage is which of the following?

Q223 . The tread on Alan's automobile tires is very thin. This is an example of what type of hazard?

Q224 . Something that might increase the likelihood that a loss will occur, is called what?

Q225 . The law of large numbers

Q226 . Which of these items of personal property would be covered under a Dwelling policy when Coverage C is written?

Q227 . An individual lives in an apartment. Which homeowners form should he purchase to cover his personal property?

Q228 . Under a CPP, when does the Inspections and Surveys condition give the insurance company the right to inspect the insured's premises?

Q229 . The insured knows that it might take several months for his damaged turbine to be fully repaired, so he authorizes $500 for temporary repairs so that production can resume. This expenditure would be covered under which coverage in the Equipment Breakdown Protection coverage form?

Q230 . When an uninterrupted chain of events resulting from a negligent act causes a loss, that act is considered to be which of the following?

Q231 . What is meant by a contract of adhesion?

Q232 . Insurance is a mechanism used to manage which of the following types of risk?

Q233 . A nonexclusive agent

Q234 . Can states require insurance companies to use certain forms or rates in connection with certain types of insurance?

Q235 . Under the Appraisal condition, the insured and the insurance company each chooses an appraiser. If the appraisers do not agree, the dispute is submitted to a third individual agreed upon jointly by the insured and the insurance company. That third party is called the

Q236 . Which of the following could not be covered under a Dwelling policy?

Q237 . Theft generally means which of the following?

Q238 . Claims that are paid by general liability coverage are charged against the aggregate policy limits and reduce the amount of insurance remaining to pay future claims. However, CGL aggregate limits will be reinstated in full

Q239 . Walt and Joanna are co-owners of a bagel shop. Both Walt and Joanna are listed in the declarations of the policy that insures the business, with Joanna's name appearing first. The declarations also list First State Bank, which has an outstanding loan on the business. Who is considered a named insured on the policy?

Q240 . Ann's auto was damaged when it was struck by another car whose driver ran a stop sign. Which part of Ann's Personal Auto policy will cover the damage to her car?

Q241 . Which of the following is covered under the Builders Risk coverage form?

Q242 . The purpose of FAIR Plans (Fair Access to Insurance Requirements) is to do what?

Q243 . The only significant difference between the occurrence and claims-made forms of general liability insurance is found in which of the following?

Q244 . Highpoint Industries has an automatic sprinkler system installed in its office building. This is an example of which risk management method?

Q245 . What is the consideration that an insurer gives to the insured under an insurance contract?

Q246 . An indirect loss is which of the following?

Q247 . In the event of a physical damage loss that makes a covered auto unavailable for a period of time, a personal auto policy will provide coverage for transportation expenses at the rate of $20 per day up to how much?

Q248 . Under a personal auto policy, which of the following is not a collision loss?

Q249 . The most common definition of actual cash value (ACV) in the property insurance field is which of the following?

Q250 . An Assigned Risk Plan covers which of the following?

Q251 . Under a CPP, how long after the end of the policy period can the insurance company examine the insured's books and records?

Q252 . In legal terms, the actions by one party might have the effect of giving up a known right. When this occurs, the party has created which of the following?

Q253 . Jake has two insurance policies on his house. They are issued by different companies, but they are otherwise identical. The term for this is

Q254 . Liability that an insured incurs because of the actions of others, such as employees, is called what?

Q255 . George accidentally hits Elaine's car with his car. The accident causes $3,000 of damage to Elaine's car, plus Elaine is injured and her medical bills come to $1,000. George's car also sustains $500 damage in the accident, but George isn't hurt. What will George's auto liability coverage pay for?

Q256 . A homeowner who wants the maximum protection for her home and personal property should purchase the

Q257 . Which type of insurance professional does not actually sell insurance coverages, but sells advice about insurance coverages?

Q258 . To avoid problems with underinsurance and overinsurance, a business that has fluctuating inventory values during the year should consider coverage written on

Q259 . Businessowners policies provide an additional coverage for preservation of property when it is removed from the premises to protect it from loss by a covered peril. The coverage will apply at other locations for up to

Q260 . The "ground rules" are described in which part of an insurance policy?

Q261 . As a result of a successful lawsuit, Agnes receives $10,000 to cover her specific losses, an additional $40,000 for pain and suffering, and because the defendant was considered to have acted with willful disregard for others' safety, Agnes was awarded an additional $75,000. This additional $75,000 award can best be described as what type of damages?

Q262 . Which of the following is covered under personal and advertising injury liability coverage in the BOP?

Q263 . In a competitive state, an employer can obtain workers compensation insurance from which of the following?

Q264 . When the special causes of loss form is attached to a commercial property coverage part, coverage for theft of furs and fur garments is limited to how much?

Q265 . Under a personal auto policy, if an insured already has physical damage coverage for at least one vehicle, a new vehicle will be automatically covered from the date it is acquired as long as the insured notifies the insurer and requests the coverage within how many days?

Q266 . Which of the following situations would be covered by liability insurance under a personal auto policy?

Q267 . An agreement between the insured and the insurer that certain conditions will be met is which of the following?

Q268 . Which of the following losses would be paid under the Other Than Collision coverage of the Personal Auto policy?

Q269 . What is the purpose of a retroactive date in the claims-made form?

Q270 . Which of the following is typically NOT covered under a standard homeowners insurance policy?

Q271 . What is meant by the term "adverse selection"?

Q272 . Byron sells his car to his friend Annette, but does not notify his insurance company. Assuming that Byron's policy will transfer to her automatically, Annette doesn't buy insurance for the car. When the car is stolen, Annette files a claim with Byron's former insurer. The insurer denies the claim. This is an example of the application of what policy condition?

Q273 . Myrtle has a Dwelling policy with Broad Theft coverage applicable both on and off her premises. Which of the following theft losses would be covered?

Q274 . Who administers the NFIP?

Q275 . The insured's business sustains $25,000 damage in a fire. The fire department that was called to the scene billed the insured $1,000. The business is insured under the Building and Personal Property coverage form for $500,000 with a $5,000 deductible. How much will the insurance company pay for this loss?

Q276 . A breakdown of equipment covered under the Equipment Breakdown Protection coverage form results in the simultaneous breakdown of three other pieces of covered equipment. According to the form, how many "breakdowns" occurred in this loss?

Q277 . Vehicles that might be insured by a personal auto policy are described in the eligibility rules and the policy definitions. Each of the following is true about vehicles eligible for PAP coverage except

Q278 . Which of the following losses is not excluded under the physical damage coverage of a personal auto policy?

Q279 . Three policies, totaling $300,000 in coverage, apply to an $80,000 loss. Policy A's limit of insurance is $100,000, policy B's limit is $50,000, and policy C's limit is $150,000. Use the pro rata method to determine how much policy C would pay for this loss.

Q280 . Which one of the following illustrates the concept of contributory negligence?. Martin buys a tanning bed for his home. Although he follows the manufacturer's directions to the letter, he is severely burned after spending five minutes in the bed.

Q281 . A Basic Dwelling policy form automatically provides coverage for losses caused by each of the following perils except which one?

Q282 . Which Causes of Loss form provides open peril coverage?

Q283 . Which of the following coverages may be attached to a homeowners policy only by endorsement?

Q284 . Because she has always been in good health, Donna decides to cancel her health insurance policy. This is an example of which risk management method?

Q285 . Under an insurance contract, the uncertainty of events can lead to unequal financial results for the two parties. This means that insurance is what kind of contract?

Q286 . A mutual insurance company

Q287 . What is the standard deductible for the BOP property coverage? A. $500 B. $1,000 C. $750 D. $250

Q288 . Which of the following are excluded under Coverage A of the CGL?

Q289 . Some property insurance policies provide for payment of the full policy limit in the event of a total loss by a covered peril, regardless of the actual value of the property. These policies are known as which of the following?

Q290 . Which part of an insurance policy sets the rules of conduct, duties, and obligations of the insured and insurer under the terms of the contract?

Q291 . Under liability insurance policies, what does an "aggregate limit" mean?

Q292 . Under a homeowners policy, in addition to any payments for damages awarded against an insured, the insurance company will reimburse the insured for reasonable expenses incurred at the company's request, including loss of earnings of up to how many days?

Q293 . Under liability insurance policies, what does the term "personal injury" usually mean?

Q294 . If Coverage C (personal property coverage) is written on a dwelling form, the Other Coverages section of the policy will extend the insurance to provide worldwide personal property coverage for an amount up to which of the following?

Q295 . Which of the following is not a requirement for forming a valid contract?

Q296 . Under the 1989 dwelling policy forms, if coverage for vandalism and malicious mischief is attached to a policy, it will be suspended whenever the building has been vacant for more than how many days?

Q297 . The written agency contract between an insurer and an agent constitutes the agent's

Q298 . Which of the following would not be covered under Coverage A or Coverage B of a Dwelling policy?

Q299 . Which of the following statements applies to Mechanical Breakdown coverage?

Q300 . What is the limit on Pollutant Cleanup and Removal coverage under the Business and Personal Property coverage form?

Q301 . How do deductibles apply in the Equipment Breakdown Protection coverage form?

Q302 . If coverage for towing and labor costs is included in a personal auto policy, labor costs will be covered only if the labor is performed

Q303 . The term "time element coverage" is used when the amount of loss depends on which of the following?

Q304 . Which of the following Other Coverages is not included in the Basic Dwelling coverage form?

Q305 . Which of the following could be covered under the Liability section of a named insured's Personal Auto policy?

Q306 . Under a CPP, how many days advance notice is required if the insurance company is cancelling the contract for nonpayment of premium?

Q307 . Which of the following properties would not be excluded under the Building and Personal Property coverage form?

Q308 . Which of the following Commercial Auto coverage forms does not offer liability coverage?

Q309 . National flood insurance is available for which of the following?

Q310 . Which of the following statements concerning binders is correct?

Q311 . What is the largest office building risk that might be eligible for a BOP?

Q312 . What is the per-year policy limit for coverage of electronic data under the Business and Personal Property coverage form?

Q313 . Under the terms of the Suspension provision in the Equipment Breakdown Protection coverage form, coverage on dangerous equipment can be suspended when?

Q314 . Most liability claims are based on negligence that results in injury or damage. An act of negligence is considered to be a tort. What does the term "tort" mean?

Q315 . Judgment rating is based on which of the following?

Q316 . Which of the following cannot be covered by a homeowners Watercraft Liability endorsement?

Q317 . Various types of domestic shipments may be covered under a number of inland marine forms. Which of the following is not one of the nonfiled marine forms used to insure domestic shipments?

Q318 . An action that, in a natural and continuous sequence, produces a loss is the

Q319 . Which of the following is not true about insurance binders?

Q320 . Which dwelling policy forms are named peril forms?

Q321 . What rating method makes modifications to manual rates to reflect the unique characteristics of each risk?

Q322 . Liability that is imposed as a matter of law without regard to negligence is called what?

Q323 . A homeowners policy has been in force 30 days, and the company discovers that the insured has misrepresented certain material facts. The insurer wants to cancel the policy. Under what circumstances may it do so?

Q324 . In addition to maximum floor space, the BOP eligibility rules limit eligible risks to what maximum?

Q325 . How often is the insured required to submit reports of values under the Floor Plan coverage form?

Q326 . Which one of the following is not required in a CGL coverage part?

Q327 . Which portion of the Garage coverage form covers liability for damage to property of others in the insured's care, custody, or control?

Q328 . In most states, workers compensation laws apply to which of the following?

Q329 . Under the NCCI workers compensation and employers liability policy form, the basic, or minimum, limit for employers liability coverage is how much per accident?

Q330 . If coverage for personal liability and medical payments is attached to a dwelling policy, what basic limit of coverage applies to medical payments unless a higher amount is purchased?

Q331 . Which of the following is not true about workers compensation insurance?

Q332 . Under which type of marketing system do agents or agencies operate as independent businesses but agree to represent only one insurance company?

Q333 . Solicitors may not

Q334 . Unless an exception applies, when does coverage under an NFIP policy begin?

Q335 . When are losses under the Building and Personal Property coverage form paid at replacement or repair cost?

Q336 . If an insurer decides to not renew the CGL policy, how many days notice of nonrenewal must be provided to the first named insured?

Q337 . Tom Baxter has an automobile insured by a personal auto policy. He trades in his car and purchases a new private passenger auto as a replacement vehicle. If he does not notify the insurance company, the liability coverage for his replacement vehicle will apply automatically for how long?

Q338 . Which part of an insurance policy describes what property and/or perils will be covered by the contract?

Q339 . A commercial building valued at $300,000 is insured for $200,000. If the policy is written with an 80% coinsurance percentage and a standard deductible, how much would be paid for a $60,000 loss?

Q340 . Which of the following accurately describes the key difference between casualty insurance and property insurance?

Q341 . Which of these losses would be covered under the Camera and Musical Instrument Dealers coverage form?

Q342 . Which of the following losses would be paid under the Business Auto coverage form's Comprehensive coverage?

Q343 . In a Crime insurance policy, certificates of deposit are considered which of the following?

Q344 . Which of the following would not normally be excluded under a property insurance contract?

Q345 . The Special Dwelling policy form provides which of the following?

Q346 . What is the standard deductible under the regular program of the National Flood Insurance Program?

Q347 . Under the Equipment Breakdown Protection coverage form, which of the following causes of damage to covered equipment would not be a covered "breakdown"?

Q348 . Medical payments under a homeowners policy are available for expenses resulting from an injury to which of the following?

Q349 . Homeowners coverage for loss of personal property because of "mysterious disappearance" is provided by what?

Q350 . An insured has a DP-3 covering a home that has a replacement value of $100,000. The insured carries $60,000 of insurance. Following a loss, the determined is made that it would cost $12,000 to replace the damaged portion of the home. How much could the insured collect, assuming the ACV of the loss is $6,000?

Q351 . Which of the following losses could be covered under the Theatrical Property coverage form?

Q352 . Under which of the Dwelling policy forms may the insured be reimbursed for the replacement cost when the dwelling is destroyed?

Q353 . The Motor Truck Cargo policy does which of the following?

Q354 . Apparent authority of an insurance agent is the authority

Q355 . Claims-made general liability coverage does not apply to bodily injury or property damage that occurs when?

Q356 . Medical Payments coverage provides protection for all of the following except which one?

Q357 . Which of the following losses are excluded under most Yacht policies?

Q358 . If general liability "claims-made" coverage is renewed by "occurrence" coverage and the insured purchases a supplemental extended reporting period (ERP), the period for reporting claims under the policy will be extended for how long?

Q359 . A commercial property coverage part with the basic causes of loss form attached covers all of the following perils except which one?

Q360 . An employer purchases a fidelity bond to protect against potential losses by employee dishonesty. In this situation, each of the employees covered by the bond is considered which of the following?

Q361 . At DEF Insurance Company, agents are employees of the company who are paid a salary plus commissions. This is an example of what type of insurance marketing system?

Q362 . Which one of these statements about the Fair Credit Reporting Act is not correct?

Q363 . According to the terms of the Mortgage condition, which of the following does not apply to the rights and duties of the mortgagee?

Q364 . Deirdre has a complete 12-piece tea service valued at $20,000. In an explosion covered by her insurance policy, most of the tea service comes through intact, but one of the tea cups is broken beyond repair. The cup by itself would be valued at $400, but the value of Deirdre's tea service without the broken cup is $17,000. How much will Deirdre's insurance company pay for the broken cup?

Q365 . All of the following must be present to establish negligence except which one?

Q366 . Loss caused by sprinkler leakage is covered under which Commercial Property Causes of Loss forms?

Q367 . Under the business auto coverage part, liability insurance applies to mobile equipment while which of the following occurs?

Q368 . Commercial general liability coverage provides medical expense payments for accidental injuries if the expenses are incurred and reported to the insurer within what date?

Q369 . Under homeowners coverage for medical payments to others, necessary medical expenses for treating an accidental injury will be covered if it incurred within how many days?

Q370 . When an insured decides to cancel an insurance policy prior to the expiration date, the unearned premium is returned on what basis?