Description
i need all of the correct answers its mutiple choice these are practice insurance quesitons
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What term is used to describe returning there insured to the same finical position the were in prior to a
loss?
A.
B.
C.
D.
Abirritation
Indemnification
Restoration
Subrogation
If residence is made uninhabitable by a covered loss, what coverage applies?
A.
B.
C.
D.
Coverage A-dwelling
Cover B-other structures
Coverage C- personal property
Coverage D-loss of use
Which type of insurance provides protection against legal liability from any risk arising from the
ownership, maintenance or use of business premises and operations
A.
B.
C.
D.
Errors and omissions insurance
Professional liability
Employment-related practices liability
Commercial general liability
Under a personal automobile policy, medical payments coverage insurers reasonable medical exposed
sustained within
A.
B.
C.
D.
1 year of the date of the accident
2 years of the date of the accident
3 years of the date of the accident
4 years of the date of the accident
Which form of insurer has shareholders?
A.
B.
C.
D.
Reciprocal company ‘
Mutal company
Stock company
Fraternal society
Under the Michigan essential insurance act, which of the following of the classifications may NOT be
used by an insurer for rating automobile insurance?
A.
B.
C.
D.
Age
Type of use
Marital status
Claims history
Which condition may void a homeowners policy?
A. Vandalism
B. Concealment
C. Unpaid premiums
D. Liberalization clause
What is an following experience modification factor
A.
B.
C.
D.
The way the rates are classified for different groups in workers compensation coverage
A reduction or surcharge of premium for hiring experienced employees
A reduction or surcharge of premium based on an insureds loss history
The amount of premiums and losses incurred by the insured
Which of the following statement correctly defines an uninsured motor vehicle?
A.
B.
C.
D.
A motor vehicle that is used as a residence
A motor vehicle that has no liability coverage
A motor vehicle that has no physical damage coverage
A motor vehicle that is designed for use off public roads
When a licensee has a company XYZs sign on their wall, a client believes, they will write a new policy for,
XYZ. What authority is represented?
A.
B.
C.
D.
Apparent
Applied
Express
Implied
An insured saves newspapers and keeps them neatly stacked in the family room, near a fire place. The
newspapers are a
A.
B.
C.
D.
Peril
Moral risk
Hazard
Physical hazard
Which of the following is an example of transfer or risk?
A.
B.
C.
D.
Installation of a smoke alarm
Purchaser of insurance
Saving money
Maintaining a deductible
The entity that has a power to revoke an insurance license is the
A.
B.
C.
D.
Insurer
Local agency
National association of insurance commissioners (NAIC)
Michigan department of insurance and financial services (DIFS)
Falsifying the terms, benefits, and advantages or conditions of an insurance policy is an example of
which of the following?
A. Misrepresentation
B. Concealment
C. Coercion
D. Forgery
Which of the following id a reason to purchase a commercial umbrella policy
A.
B.
C.
D.
To comply with state minimum coverage requirements
To reduce the need for reinsurer or surplus lines insurance
To cover large losses that exceed the under lying property coverage
To cover losses that exceed the underlying liability coverage
What is the failure to disclose important information?
A.
B.
C.
D.
Concealment
Fraud
Misrepresentation
Warranty
All of the following are subject to false advertising regulations EXCEPT
A.
B.
C.
D.
Gifts
Letters
Circulars
Statements
Which of the following properties is NOT eligible for businessowners coverage
A.
B.
C.
D.
A six unit apartment building
An insurance agency
A move theater
A municipality
An insurer issuing an auto insurance policy in Michigan must provide the insured and what entity a
certificate of insurance?
A.
B.
C.
D.
Secretary of state
Insurance commissioner
Department of motor vehicles
Insurance license secretary
Transportation expenses on the personal automobile policy are provided with no additional premium
for what of the following amounts?
A.
B.
C.
D.
$15 a day, to a maximum of $600
$20 per day, to a maximum of $600
$30 per day, to a maximum of $600
$30 per day, to a maximum of $900
What is a specific duty of the insurer in a liability policy?
A. Reporting a loss
B. Subrogating a loss
C. Providing a legal defense
D. Protecting property from a future loss
The owners and contractors protective liability policy provides the insured with liability protection in
situations where the law holds the owner or general contractor liable for the negligence of
A.
B.
C.
D.
A sub-contractor
An employee
A principal
A customer
In Michigan a claim for occupational disease and death must be made within what period of time
following discovery that the disease or death was work related
A.
B.
C.
D.
6 months
2 years
5 years
10 years
Endorsements are used to alter coverage and to provide additional coverage for which two sections pf a
businessowners policy?
A.
B.
C.
D.
Declaration and condition
Property and declaration
Liability and conditions
Property and liability
A false or written statement made by a producer for the purpose of replacing an existing policy to the
detriment of the insured is
A.
B.
C.
D.
Intimidation
Inducement
Discrimination
Defamation
Most statements contained in the insureds application for insurance are considered
A.
B.
C.
D.
Decelerations
Misrepresentations
Representations
Warranties
A producer who knowingly solicits new insurance risks by an insolvent insurer is guilty of
A.
B.
C.
D.
Deformation
Enticement
Forgery
Fraud
What insurer formed for the sole purpose of providing liability insurance for policyholders from the
same industry
A.
B.
C.
D.
Self-insurers
Risk retention
Government insurers
Third-party administrators
An insurance policy deductible is
A.
B.
C.
D.
Maximum monetary an insurer will pay for a single claim
Amount of the loss that the insured individual must cover prior to payment by the insurer
Initial costs incurred by the insured individual in purchasing an insurance policy?
Total amount covered by the policy less the policy’s cash value
Which term describes an insured choosing to pay for a loss from their own funds?
A.
B.
C.
D.
Avoidance
Control
Retention
Transfer
Vicarious liability involves a relationship with
A.
B.
C.
D.
A spouse and a spouse
A contractor and a vendor
An employer and there employees
A business owner and there supplier
An insured property loss is settled on the basis of actual cash value or replacement cost. What is the
term used for these methods?
A.
B.
C.
D.
Loss settlement
Loss valuation
Loss condition
Loss considerations
Which section of an insurance policy clarifies the meaning of certain terms used in the policy?
A.
B.
C.
D.
Conditions
Declarations
Definitions
Insuring agreements
Which of the following can be covered under a business automobile policy?
A. Boat
B. Golf cart
C. Hired automobiles
D. All-terrain vehicles
After the final disposition of the matter, an insurance producer shall report the commissioner any
administrative action taken against the producer in another jurisdiction within how many days?
A.
B.
C.
D.
90
60
45
30
Under a homeowners policy, which of the following is an insured location
A.
B.
C.
D.
Vacant land with a shed
Cemetery plots of any insured
Vacant land rented to a farmer
Renting a hall for business meetings
Which coverage form would a condominium unit-owner purchase?
A.
B.
C.
D.
HO-3
HO-4
H0-5
H0-6
If a homeowners purchases a duplex for rental property, which type of policy would be purchased to
cover the duplex?
A.
B.
C.
D.
Dwelling policy
Homeowners policy ‘
Inland marine policy
Commercial property
Which of the following is insured by an owner occupied dwelling policy under coverage C?
A.
B.
C.
D.
Small fishing boats belonging to a renter
Garden shed belongs to a neighbor
Refrigerator belonging to a renter
Watch belonging to a guest
All of the following incidental businesses would ne eligible under a dwelling policy except a
A.
B.
C.
D.
Beauty parlor
Photographic studio
Professional office
Hardware store
A business that transports its own cargo and also transports cargo for hire would be referred to as a
A. Motor carrier
B. Common carrier
C. Trucker
D. Contract carrier
A characteristic of a contract of adhesion is when one party has a greater power over the other party in
drafting the contract sometimes causing the problem of
A. Ambiguity
B. Good faith ratification
C. Misrepresentation
After a fire to a building, the insured no longer wants it and expects the insurer to take it and pay for its
full value. What policy condition prohibits the insured from relinquishing the building to the insurer
A.
B.
C.
D.
Abandonment
Appraisal
Salvage
Subrogation
Under a commercial crime policy, what form provides for payment of losses identified during the policy
period but NOT necessarily sustained during that particular period?
A.
B.
C.
D.
Loss-sustained form
Discovery form
Notice form
Loss form
Intentionally withholding information that should be provided to an insurer is known as
A.
B.
C.
D.
Concealment
Esstoppel
Misrepresentation
Warranty
After an automobile liability policy has been in effect for 55 days, an insurer may
A. Cancel the policy for any reason during the policy
B. Cancel the policy if the name insured had final revocation of his operators license during the
policy period
C. Cancel the policy if the name insured had temporary suspension of his operator license during
the policy period
D. Not cancel the policy for any reason during the policy period
Under the commercial general liability, medical payment coverage has a stated limit that is
A.
B.
C.
D.
Unlimited
Split limit
Per person
Combined single limit
Which of the following is a common policy declaration of a commercial package policy?
A. A list of perils insured against
B. A description of the business being covered
C. The circumstances under the policy may be cancel
D. Conditions specifying the insureds duties following a loss
Which is an accurate statement regarding the spoilage coverage endorsement that can be added to a
commercial package policy?
A.
B.
C.
D.
Damage to perishable stock due to power outage is covered
Coverage is subject to coinsurance
Stock damage by employee negligence is covered
Damage caused by theft
Under the exclusions in the dwelling policy special form (DP-3) failure to save and preserve property
after a loss is
A.
B.
C.
D.
Fraud
Neglect
Wrongful act
Intentional loss
A Michigan insurance producer license is required for what type of service
A.
B.
C.
D.
Engaging in the inspection, rates, or classification or risks
Administrative services related to the mass marketed insurance products
Advising an employer concerning insurance needs without receiving commissions
Giving advice or describing the specific characteristics of coverage of an insurance product
What is the MAXIUMUM amount an auto liability policy with limits of $100,000/$300,000/$25,000 will
provide to cover each property claim?
A.
B.
C.
D.
$25,000
$100,000
$300,000
$425,000
Which of the following statement is true regarding a licensed individual changing there legal name?
A.
B.
C.
D.
Change of legal name has a direct impact on the status of a licensee
The licensee must notify the commissioner upon changing their legal name
The licensee is required to file a name change form on the next license renewal
The insurance code strictly prohibits name changes for the purpose of marketing insurance
products
Contractors equipment floaters cover
A.
B.
C.
D.
Any property that is not covered under the installation policy
All property that is shipped or bundled with equipment during transit
Any form of property that is installed utilizing tools or jobsite equipment
Heavy machinery, equipment, and tools an insured needs to conduct business
The PRIMARY purpose of a rating company is to
A.
B.
C.
D.
Ascertain which company offers the best polices fir the various lines of insurance
Ascertain which company offers the best rates for the various lines of insurance
Determine the finical strength of the company being rated
Guarantee the finical strength of the company being rated
Which of the following descriptions best defines a surplus lines insurer
A. An unauthorized insurer that provides insurance coverage in compliance with Michigan
insurance code
B. An insurer that has made a special filling with the Michigan department of insurance and
financial services
C. A reinsurer that is authorized and regulated by the Michigan department of insurance and
financial services
D. A licensed insurer that is authorized and regulated by the surplus lines stamping office
Which accident would be covered by section ll of a homeowners policy?
A.
B.
C.
D.
The insured unsupervised son injures himself on a trampoline
The insureds dog bites the insured spouse
The insureds son accidently hit a baseball and breaks the neighbors window
The dwelling burns when struck by lightning
Under the Michigan essential insurance act. Which of the following applicants is not eligible for home
insurance
A.
B.
C.
D.
The owner occupant of a house
A tendent in an apartment building
The nonresident owner of a rental property
The owner-occupant of a four-unit apartment building
Which of the following is covered under coverage E and coverage F and homeowners policy?
A.
B.
C.
D.
Intentional actions by an insured under the policy
Premises rented by the insured for non-business use
Rental of any part of the premises other than a residence
Liability arising out of the transmission of a communicable disease by an insured
An insuring agreement contains a promise to the policyowner and in general terms, states the
A.
B.
C.
D.
Policyowners rights under contract law only
Insurers rights under contract law only
Premium costs
Coverage provided
An individual who knowingly submits a false statement in support of a claim may be found guilty of
A. Coercion
B. Fraud
C. Misrepresentation
D. Twisting
While attending a pool party at your insureds home a guest is injured by slipping on the cement
surrounding the pool. Which portion of the homeowners policy will pay for the emergency room bill?
A.
B.
C.
D.
First aid to others
Not paid, no coverage
Personal injury protection
Medical payments to others
Under a homeowners policy, which of these will be covered?
A.
B.
C.
D.
Arson by the insured
Discharge of pollutants
Air conditioning compressor fails
Water damage as a result of a pipe coming loose
After the initial privacy polices and practice notice has been provided for a customer, the licensee must
provide ongoing notices every
A.
B.
C.
D.
6 months
12 months
24 months
36 months
Which of the following is noy a basic peril on a all homeowners forms?
A.
B.
C.
D.
Riot
Smoke
Volcanic eruption
Flood
Which of the following statements regarding personal liability overage is true
A.
B.
C.
D.
Personal liability coverage is automatically included in the homeowners policy
Coverage provided under personal liability is different then section ll of the homeowners policy
A homeowners policy does not provide coverage for personal liability
Personal liability coverage for dwelling can be deleted from the insureds homeowners policy
Debbie has added employee dishonestly to her businessowners policy, which of the following
statements is not true?
A. She may submit a claim and expect payment if she does so within the discovery period
B. Coverage does not apply if the employee acted in Collison with the insured or partners of the
insured
C. She may not submit an inventory or profit and loss computation as the only evidence of
employee theft
D. Coverage is included for an employee known by her manager to haver committed a dishonest
act prior to being hired
In a commercial general liability policy, which factor restricts the amount payable in the event of a
personal injury loss?
A.
B.
C.
D.
Limit per person
Limit of policy
Number of suits brought
Number of people involved
When selling insurance, the producer must make sure the
A.
B.
C.
D.
Client has the ability to pay the premiums
Financial rating of the insurer is disclosed
Client understands the type of insurance coverage being purchased
Insurer understands the type of coverage being purchased
On a commercial general liability claims-made policy, a claim is first made when notice of the claim is
received by the insured party or the
A.
B.
C.
D.
Insurer
Injured party
Attorney for the insurer
Attorney for the injured party
Policy cancelation is only effective when a notice of cancelation is
A.
B.
C.
D.
Communicated verbally
Emailed, requesting read receipt
Texted to the insureds phone number
Sent by certified ,mail, requesting return receipt
Which of the following does an unendorsed business automobile policy cover
A.
B.
C.
D.
Watercraft
Semitrailers
Forklift
Bulldozer
When an insurer appointment is terminated, the party that must notify the producer of the termination
is the
A.
B.
C.
D.
Insurer
Sectary of state
Local agency
National association of insurance commissioners (NAIC)
The type of construction that uses materials that can withstand fire for AT LEAST 2 hours is
A. Masonry
B. Frame
C. Fire-resistive
D. Non-combustible
What is the replacement cost minus deprecation used for?
A.
B.
C.
D.
Repair cost
Market value
Actual cash value
Functional replacement cost
Absolute liability is BEST defined by
A.
B.
C.
D.
Liability without regard to fault
Liability split between two offending parties
Total liability attributed to the party most at fault
Liability attributed to a party by a court decision or order
Which of the following types of insurance protects an individual who manages private pension funds
and employee benefits plans against liability for violation of the general ERISA law
A.
B.
C.
D.
Directors and officers insurance
Errors and omissions insurance
Fiduciary liability insurance
Financial malpractice insurance
What is the limit for business income on a businessowners policy?
A.
B.
C.
D.
Fifty percent of the building limit
Actual sustained loss up to 12 months
Actual sustained loss up to 6 months
There is no limit
All of the following offences are included in personal and advertising coverage except
A.
B.
C.
D.
False Imprisonment
Malicious prosecution
Legal eviction
Wrongful entry
A business that is unable to purchase workers compensation insurance through the standard market
may obtain it from which of the following sources
A.
B.
C.
D.
The fair plan
The surplus lines market
The Michigan workers compensation placement facility
The Michigan department of licensing and regulatory affairs
On a homeowners policy, which of the following is considered a named insured?
A. The mortgagee identified on the declaration page
B. The person identified on the declaration page
C. A nom-resident relative
D. A resident relative
What is an automatic covered insured contract under a commercial general liability coverage form?
A.
B.
C.
D.
Employment agreement
Earthquake maintenance agreement
Argument to indemnify a municipality
Agreement to hold a municipality responsible
An insurer can ONLY request the use of aftermarket crash parts in the repair of an insureds vehicle if
the
A.
B.
C.
D.
Parts are less expensive than from the original manufacture.
Parts are of better quality then the original manufacture
Repair facility has the parts in stock
Insured receives a written estimate that clearly identifies the replacement part
The primary function of an umbrella liability insurance policy is to provide coverage for
A.
B.
C.
D.
Personal property damage caused by inclement weather
Legal claims that exceed the policyholders primary liability insurance limits
Multiple dwelling and vehicles under a single insurance policy
Vehicles that are either rented or borrowed by the policyholder
The primary purpose of am endorsement is
A.
B.
C.
D.
Modify the original policy
Describe the covered losses
Define the terminology
Increase the premium
Your client is concerned that there pending bankruptcy might cancel the insurance company to cancel
there businessowners policy. You explain that the insurer CANNOT cancel the policy for bankruptcy and
refer them to the policies
A.
B.
C.
D.
Exclusions
Declaration page
Liability general conditions section
Property additional coverage section
A producer must be appointed by the insurer within how many days from the date the agency contract
is executed or the first insurance application is submitted?
A.
B.
C.
D.
10
15
20
25
In Michigan, while driving a rental vehicle where the rental insurance is primary, what are the bodily
limits of the unendorsed rental car insurers policy?
A.
B.
C.
D.
$250,000/$500,000
$50,000/$100,000
$20,000/$40,000
$0
What endorsement can an insured add to there business automobile policy to cover the owner of the
leased vehicle?
A.
B.
C.
D.
Miscellaneous vehicle endorsement
Drive other car coverage endorsement
Additional insured-lessor endorsement
Individual name insured endorsement
A conditional insurance contract is defined as one that
A.
B.
C.
D.
Requires certain conditions or acts by the insured individual
Requires the insurer to pay benefits to the insured individual;
Jas fixed terms and conditions
Provides for “caveat emptor”
Under a homeowners policy, which of the following is not covered by personal coverage
A.
B.
C.
D.
Medical expenses of the insured
Deformation of character
Libel and slander
False arrest
Which of the following is NOT part of the common policy conditions under a businessowners policy
A.
B.
C.
D.
Vandalism
Cancelation
Policy cancelation
Premium payment
What group of employees is covered under the federal employees liability act (FELA)
A.
B.
C.
D.
Government workers
Michigan employees
Interstate railroad employees
Employee on ships
If an insured wishes to purchase a valuation that differs from the standard valuation provision contained
in the equipment breakdown coverage form, he or she would purchase which of the following
endorsements
A. Abonnement
B. Ordinance or law
C. Actual cash value
D. Business interruption
If the home day care coverage endorsement is added to the homeowners policy, what is the premium
based on?
A.
B.
C.
D.
The number of children in the insureds care
The type of business incorporated
The location of the home day care
The square footage of the house
When a producer appointment has been terminated, the producer may
A.
B.
C.
D.
Service the existing policy
Increase the policy limits
Bind new coverage
Renew a policy
Workers compensation rates are based on classification by
A.
B.
C.
D.
Location
Age of employees
Number of employees occupation
Occupation
A patron of Smiths deli died from food poisoning because the chicken salad was not prepared correctly
what type of loss is this an example of
A.
B.
C.
D.
Bodily injury
Property damage
Health injury
Personal injury
The certificate of insurance provides
A.
B.
C.
D.
The premium amount
A list of all coverages
Proof the policy has been written
Temporary insurance until the policy is bound
Which of the following is NOT a duty of the insured after a loss
A. Supply information for the insurer about the claim, to include the time, place, circumstance and
witnesses
B. Notify the insurer
C. Assist the insurer in any hearing, trials or settlement upon request
D. Indicate insurance availability to other party immediately following accident
How does the H0-3 homeowners form cover perils?
A. Open perils on coverage A, B and C
B. Named perils on coverage A,B and C
C. Opened perils on coverage A and B name perils on coverage C
D. Name perils on coverage A and B, open perils on coverage C
A covered automobile policy symbol 7 will cover which of the following
A.
B.
C.
D.
Any auto
Owned auto only
Specifically described auto
Owned private passenger auto
The liability section of a businessowners policy (BOP) covers which of the following
A.
B.
C.
D.
Roof damaged by a windstorm,
Medical payments for inured employee
Bodily injury suffered in an automobile accident
Customer injured on the business premises
Under the liability section of a homeowners policy, which of the following would be covered under
additional coverage?
A. Frist aid expenses for the insured and the insureds family members
B. Damages to the insureds home if the damage was caused accidently by the insured
C. Reasonable expenses incurred by the insured at the company’s request in the investigation or
defense of claim
D. Any judgment amount over and above the specified limit of liability included in the policy itself
The Jones Act is a federal law that allows members of ships’ crews to sue for injuries caused by
A.
B.
C.
D.
Other people
Passenger negligence
The employers negligence
The employee/other employees
A person with a personal automobile policy (PAP) will have which of the following coverages if they are
the driver or passenger in a rental vehicle, and they are Injured in an accident
A.
B.
C.
D.
No coverage
20% of coverage depending on fault
The full limit as stated on the PAP, if they rented the car more than 40 days
Personal protection insurance benefits without regard to fault
What is the standard deductible under the national flood insurance program (NFIP) Emergency program
A.
B.
C.
D.
$5,000
$2,500
$1,000
$500
Which of the following situations is excluded in the homeowners policy?
A.
B.
C.
D.
Use of a rented sailboat under 26 feet
Breaking a neighbors window while playing basketball
Running over the neighbors fence in a fit of rage
Accidently hitting another golfer in the head with a ball while golfing
A commercial properties basic cause of loss form does NOT cover water damage from
A.
B.
C.
D.
A wind-damaged roof
An overflowing sewer
Sprinkler leakage
Vandalism
How can an employer provide coverage for excluded employees under workers compensation
A.
B.
C.
D.
By adding employers liability to the policy
By adding employers disability to the policy
By adding the voluntary compensation endorsement to the policy
By adding the involuntary compensation endorsement to the policy
Strict liability is usually a type of liability referred to in what type of policy?
A.
B.
C.
D.
Cyber
Product
Erorrs and omissions
Directors and officers
Insurance products have duties and responsibilities to the insured and the insurer. Which of the
following responsibilities does a producer owe the insured during the policy year
A.
B.
C.
D.
Help the insured file and follow up on claims
Notify the insurance department when the claims are paid
Work with rating buraos to establish insurance ratings
Offer to pay the insureds premiums if they are unable to do so
Each commercial property coverage part MUST include all of the following EXCEPT
A.
B.
C.
D.
Causes of loss form
Commercial property declarations
Any mandatory endorsements
Employee theft
Of the following, who has the ultimate responsibility to accept and reject applications, review loss
experience, and determine policy forms
A.
B.
C.
D.
Producer
Adjuster
Underwriter
Commissioner
Consumer privacy regulations permit the release of an insureds financial information by the insurer
when
A.
B.
C.
D.
A distant relative requests financial information in writing
A creditor request information in writing to approve a line of credit
The civil service commissioner makes a written request to the insurer for employment purposes
An authorized agency makes a written request to the insurer during an insurance fraud
investigation
Under a homeowners policy, which of the following perils can be covered by endorsement
A.
B.
C.
D.
Corrosion
War
Earthquake
Inherent vice
Under the building and personal property form, in addition to the building itself, building coverage
includes which of the following.
A.
B.
C.
D.
Patio furniture
Motor vehicle
Unattached sign
money
under workers ‘compensation in Michigan payment may be made under the second injury fund upon
the loss of second
A.
B.
C.
D.
ear
eye
finger
toe
the special dwelling form (DP-3) is known as what type of coverage?
A.
B.
C.
D.
Open perils
Named perils
Specific perils
Comprehensive perils
To comply with the Michigan requirement for a certificate of insurance, if stopped by an officer, which
the following statements is NOT true.
A. A printed copy of the certificate of insurance issued by an authorized insurer is always
acceptable.
B. Sn electronic copy of the certificate pf insurance can be produced on a phone or tablet is
acceptable.
C. It is not necessary to carry proof of insurance with you so long as it can be looked up online at a
later date.
D. A police officer may require you to forward an electronic copy of a certificate of insurance to a
specific location provided by the officer.
What guarantees temporary coverage?
A.
B.
C.
D.
Declaration page
Application
Warranty
Binder
What insurance coverage is provided by carriers not holding a certificate of insurance?
A.
B.
C.
D.
E.
Surplus lines
Self-insurance
Insurance pools
Standard pools
Standard market
Under the liability form which of the following scenarios would NOT be covered?
A.
B.
C.
D.
Malicious prosecution
Medical payments after the limit of liability have been used up.
Use of another’s advertising idea in the insured’s advertisement
Written publication of material that slanders or libels to a person or organization.
According to the conditions of a personal automobile insurance policy, what MUST the insured party do
after a loss
A.
B.
C.
D.
Ensure premiums are paid up to date.
Refrain from legal actions without the insurer approval
Permit the insurer to inspect the vehicle before it is repaired.
Report the vehicle Collison to the Department of insurance and Finical services.
A producer who diverts funds of an insurer may be found guilty of
A.
B.
C.
D.
Coercion
Fraud
Rebating
Twisting
What section of a policy outlines when a loss will NOT be covered
A.
B.
C.
D.
Conditions
Provisions
Exclusions
Insuring agreements
Which process do insurers use to evaluate risk and exposure?
A. Rating
B. Underwriting
C. Risk management
D. Producer reporting
Under which proportion of the physical damage on a business owners policy will you find perils such ad
explosion, theft and glass breakage covered?
A.
B.
C.
D.
Other-than-Collison (comprehensive)
Collison
Property damage liability
Greenkeepers liability
Signing another’s name to an application of insurance.
A.
B.
C.
D.
Coercion
Forgery
Misrepresentation
Twisting
In regard to a liability claim on the home owners policy, which of the following conditions apply?
A.
B.
C.
D.
Provide written notice of all losses to the insurer.
Adhere to the description on the declarations page.
Notify the mortgagee/loss payee of the claim.
Accept the agreed value of the loss.
Who of the following is REQUIRED to be licensed as an insurance producer.
A.
B.
C.
D.
An underwriter at an insurer
An administrator of a group plan
An officer or director of an insurer
A business entity soliciting insurance.
What is the term used to describe the tendency for people with greater-than-average exposure to loss
to purchase insurance?
A.
B.
C.
D.
Predictable loss
Catastrophic loss
Adverse selection
Insurable interest
Which endorsement to the business automobile policy can be used to insurer a forklift used at their
facility
A.
B.
C.
D.
Miscellaneous vehicle endorsement
Mobile equipment endorsement
Drive other car endorsement.
Truckers’ coverage form
When many cancellations of an insurance policy by the insured by requesting
A. At any time
B. After 55 days of coverage
C. 20 days prior to payment
D. Within the first 30 days of policy issuance
An insurance owned by its policyholders and pays dividends is considered a
A.
B.
C.
D.
Stock company
Mutal company
Reciprocal exchange
closely held corporation.
all of the following are perils except
A.
B.
C.
D.
lightning
windstorm
flood
fire
when an insureds jwelrly is stolen, this is an example of what type of loss?
A.
B.
C.
D.
Direct
Indirect
Casualty
Consequential
What does the extended non-owned coverage-vehicle furnished or available for regular use
endorsement cover?
A. Eliminates the extensive coverage automatically provided under the personal automobile policy
for the insured and family while driving cars other then the insureds covered automobiles.
B. Expands the extensive coverage automatically provided under personal automobile policy for
the insured and family driving cars other than the insureds covered automobile.
C. Expands the list of exclusions applicable to automobiles that are furnished or available for the
regular use of the name insured or family members
D. Eliminate the list of exclusions applicable to the automobiles that are furnished or available for
the regular use of the named insured or family members
Under the boatowners or watercraft polices, losses are usually paid on
A.
B.
C.
D.
An actual cash value (ACV) basis
A replacement cost basis
A market value basis
An apprai
