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all questions need answered correctly, its mutiple choice question please just highlight the correct answer.
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1
Which of the following is true about the uninsured motorist coverage
A.
B.
C.
D.
It cancels and replaces underinsured motorist coverage
It is not mandatory coverage for an auto policies issued in the state
Additional UM coverage can exceed the liability limit on the same policy
One of the side benefits to this coverage is that it slightly expands personal injury protection
A producer must report a legal name change to the commissioner
A.
B.
C.
D.
By license renewal date
Within 15 days of occurrence
Within 30 days of occurrence
Prior to submission of new business
When a covered property loss makes an insured residence premises uninhabitable, which part of the
home owners policy will pay for expenses the insured needs to maintain their standard of living?
A.
B.
C.
D.
Coverage A
Coverage B
Coverage C
Coverage D ‘
The unfair trade practice of using threat or force to restrict fair trade in the transaction of insurance is
called
A.
B.
C.
D.
Deformation
Fraud
Intimidation
Twisting
All of the following are name perils Except
A.
B.
C.
D.
Lightning
Windstorm
Flood
Fire
Your client wants all three of their buildings insured on one policy with one policy limit. What type of
policy would you write?
A.
B.
C.
D.
Aggregate
Blanket
Scheduled
Specific
When an insured requests one value to cover property located at three locations, which form is
recommended
A. Blanket
B. Reporting
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C. Scheduled
D. Specific ‘
When an insured requests one value to cover the property located at three locations, which form is
recommended?
A.
B.
C.
D.
Blanket
Reporting
Scheduled
Specific
Which form of insurer has shareholders?
A.
B.
C.
D.
Reciprocal company
Mutal company
Stock company
Fraternal society
Which of the following is NOT an insured under the businessowners policy (BOP)
A.
B.
C.
D.
A spouse
A current or past business entity not shown in the declarations
Individual members of a limited liability company
Any person or any organization while acting as your real estate manager
What are businessowners policies best suited for?
A.
B.
C.
D.
Retail business operating out of one location who’s insurance needs can easily be identified
Small business that owns many properties and has many real-estate investments to cover
Small business that is nationwide and has many types of risks that need to be covered
Fast food restaurant with a seating capacity of 100
All of the following incidental business would be eligible under a dwelling policy EXCEPT a
A.
B.
C.
D.
Beauty parlor
Photography studio
Professional office
Hardware store
A contract that insures a person is called a
A.
B.
C.
D.
Business contract
Personal contract
Liability contract
Individual contract
What type of authority is given by an insurer to a producer but NOT formally communicated
A. Implied
B. Express
C. Applied
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D. Apparent
The Primary purpose of the property and casualty guaranty association is to
A.
B.
C.
D.
Provide an appeal process for denied claims
Help reorganize insurers having financial difficulties
Guarantee the payment of covered claims that exceed policy limits ‘
Make covered claim payments to policyholders of insolvent insurers
Which of the following represents an example of a direct loss to property
A.
B.
C.
D.
A broken stairway causes a guest to fall
Frozen pipes due to power failure
Shingles blow off in a windstorm
A baseball breaks a window
Workers compensation rates are based on classification by
A.
B.
C.
D.
Location
Age of employees
Number of employees
Occupation
Under a commercial crime policy what form provides for payment of losses identified during the policy
period nut NOT necessarily sustained during the particular period ‘
A.
B.
C.
D.
Loss-sustained form
Discovery form
Notice form
Loss form ‘
The owner and contractors protective 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.
Sub-contractor
An employee
A principal
A customer
Reinsurance allows an insurer to
A.
B.
C.
D.
Provide greater risk transference to the policyholders
Provide greater risk avoidance to another insurer
Transfer risk to policyholders
Transfer risk to another insurer
A typical insurance policy includes all of the following in the definition of territory EXCEPT
A. Puerto Rico
B. Canda
C. Mexico
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D. Guam
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 by the insureds advertising
Written publication of material that slanders or libels a person or organization
What part of the commercial package policy has information about who is insured and for what lines
A.
B.
C.
D.
Common policy declaration
Common policy conditions
Limits of insurance
Definitions
An insurer owned by its policyholders and pays dividends is considered
A.
B.
C.
D.
Stock company
Mutal company
Reciprocal company
Closely held corporation
What is the property protection insurance amount
A.
B.
C.
D.
$10,000
$100,000
$1,000,000
$10,000,000
What insurance is formed for the sole purpose of providing liability insurance for policyholders from the
same industry
A.
B.
C.
D.
Self-insurers
Risk retention groups
Government insurers
Third-party administrators
What is an experience modification factor
A.
B.
C.
D.
The way the rates are classified for different groups in workers compensation coverage
A reduction in workers compensation premium got hiring experienced employees
A reduction or surcharge of premium based on an insureds loss history
The amount of premiums and losses the incurred by the insured
An insured losses control of the vehicle and hits a tree. The resulting collision is
A.
B.
C.
D.
An exposure
A hazard
A peril
A risk
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What is the limit for business income on a business owners policy
A.
B.
C.
D.
Fifty percent of the building limit
Actual sustained loss up to 12 months
Actual loss up to 6 months
There is no limit
An insured losses control of the vehicle and hits a tree. The resulting collision is
A.
B.
C.
D.
An exposure
A hazard
A peril
A risk
What is an accurate statement regarding the spoilage coverage endorsement that can be added to a
commercial property policy
A.
B.
C.
D.
Damage to perishable stock due to power outages is covered
Coverage is subject to coinsurance
Stock damage by employees negligence is covered
Damage caused by theft
According to the principle of indemnity, what must an insurer do when a property loss occurs?
A.
B.
C.
D.
Pay the replacement cost to restore the property ‘
Pay off a loan and hold the mortgage of the property owner
Not considered the age of the property at the time of the loss
Restore the insured to the position they were in prior to the loss
The special dwelling for (DP-3) is known as which type of coverage?
A.
B.
C.
D.
Open perils
Named perils
Specific perils
Comprehensive perils
Liquor liability insurance can be purchased on what basis
A.
B.
C.
D.
Only a claims-made basis
Only on a occurrence basis
On either a claims-made basis or occurrence basis
On a blanket basis
The certificate of insurance provides
A.
B.
C.
D.
The premium amount
A list of coverages
Proof the policy has been written
Temporary insurance until the policy is bound
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Transportation expenses on the personal automobile policy are provided with no additional premium
for which of the following amounts
A.
B.
C.
D.
$15 a day, to a maximum of $600
$20 a day, to a maximum if $600
$30 a day, to a maximum of $600
$30 a day to a maximum of $900
Under a homeowners policy, coverage up to $500 is provided for the insureds legal obligation to pay
losses of the following situations except
A.
B.
C.
D.
Theft of a credit card
The dishonesty of an insured
Forgery or alteration of the insureds check
The insureds acceptance in good faith of counter fit money
A homeowners policy has a $100,000 liability limit, three individuals were injured on the insured
premises during a single accident. What is the maximum the policy will pay out
A.
B.
C.
D.
$33,333
$100,000
$300,000
$1,000,000
Which coverage form would a condominium unit-owner purchase
A.
B.
C.
D.
HO-3
HO-4
HO-5
HO-6
Which of the following is an example of transfer of risk
A.
B.
C.
D.
Instillation of a smoke alarm
Purchase of insurance
Saving money
Maintaining a deductible
To be eligible for wage benefits under workers compensation policy, an employee must be incapable of
earning full wages for at least how many working days
A.
B.
C.
D.
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The main purpose of the nationwide marine is to
A. Standardize classification of the types of property that may be insured
B. Describe the imports that are allowed to be sold and delivered
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C. Allow the underwriters to tailor coverage for a variety of perils
D. Define the insurable interest of shippers
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 loss
A patron of smiths deli died from food poisoning because the chicken salad was not prepared correctly.
What types of loss is this an example of?
A.
B.
C.
D.
Bodily injury
Property damage
Health injury
Personal injury
Under which proportion of the physical damage on a business automobile policy will you find perils such
as explosion, theft and glass breakage?
A.
B.
C.
D.
Other than collision (comprehensive)
Collision
Property damage liability
Garage keepers liability
Which of the following commercial property conditions will grant an insurer subrogation rights?
A.
B.
C.
D.
Liberalization
Other insurance
Control of property
Transfer of rights of recovery against others to us
The set od conditions that apply to the entire business owners policy are called
A.
B.
C.
D.
Broad policy conditions
Common policy conditions
General policy conditions
Standard policy conditions
What is the action of the director may take when a consumer complains that they suffered financial
harm as a result of an insurance license’s actions
A.
B.
C.
D.
Suspend the licensee without probable cause
Notify the licensee’s client on the allegations made complaint
Revoke the licensee license after a hearing has been conducted and a violation is found
Order the licensee to make restitution within 30 days or be subject to an administrative hearing
Which of the following is NOT a duty of the insured after a loss?
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A. Supply information to 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
Under the workers compensation rights of recovery of benefits, the employees exclusive remedy for a
personal injury is excluded by
A.
B.
C.
D.
Mini tort claim
Intentional tort
Unintentional tort
Punitive damage claim ‘
After the initial privacy policies and practices notice has been provided to a customer, the licensee must
provide on going notices every
A.
B.
C.
D.
6 months
12 months
24 months
36 months
Under the national flood insurance program regular program, what is the maximum building limit
available for a dwelling
A.
B.
C.
D.
$100,000
$150,000
$250,000
$500,000
Under a basic (DP-1) dwelling policy, which of the following is covered?
A.
B.
C.
D.
Theft
Personal liability
Damage to equipment used to service the premises
A barn used for farming purposes located 1 mile away
An individual who knowingly submits a false statement in support of a claim may be found guilty of
A.
B.
C.
D.
Coercion
Fraud
Misrepresentation
Twisting
All of the following are true of the Michigan motor vehicle financial responsibility law EXCPT
A. Proof of financial responsibility may be furnished by filling a certificate of insurance within the
secretary of state
B. The certificate of insurance must show a minimum liability of $250,000 per person, $500,000
per occurrence. $10,000 for property damage
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C. The certificate shall give the effective date of the motor vehicle policy
D. The policy must only insurer the person named therein
The minimum bodily injury and property damage automobile liability limits for Michigan are
A.
B.
C.
D.
$20,000/$40,000/$10,000
$50,000/$75,000/$20,000
$100,000/$300,000/$50,000
$250,000/$500,000/$100,000
You’re client is concerned that there pending bankruptcy might cause a company to cancel there
businessowners policy. You explain that the insurer cannot cancel the policy for bankruptcy and refer
them to the policy
A.
B.
C.
D.
Exclusions
Declarations page
Liability general conditions section
Property additional coverage section
After an automobile policy has been in effect for 55 days, an insurer
A. Cancel the policy for any reason during the policy year
B. Cancel the policy if the name insured has final revocation of the 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
What level of agent authority is given when the principal gives the agent authority either orally or in
writing
A.
B.
C.
D.
Implied
Express
Applied
Apparent
Anette just purchased a vehicle and financed it through her credit union. Which of the following does
NOT have insurable interest
A.
B.
C.
D.
The credit union
The owner of a vehicle
The driver of the vehicle
The title holder of the vehicle
The coverage that continues beyond the expiration of a liability policy written on a claims-made basis is
referred to as
A. Extended reporting periods
B. Stop-loss provision
C. Extension coverage
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D. Umbrella coverage
Which of the following dwelling policies endorsement covers a residence that is being built
A.
B.
C.
D.
Premises liability endorsement
Dwelling under construction endorsement
Personal liability endorsement
Limited theft coverage endorsement
Property protection insurance benefits consist of
A.
B.
C.
D.
The cost to repair the item with like new condition
The value of the loss of use it is it used on a daily basis
The lessor the amount of reasonable repair costs or replacement costs less deprecation
The greater of reasonable repair costs or replacement cost less deprecation
The miscellaneous vehicle endorsement generally provides coverage for which of the following
A.
B.
C.
D.
Motorcycle
Motor home
Horse trailer
Four-wheel drive trick used to tow a camper
A producer must be appointed by the insurer within how many days form the date of the agency
contract is executed, or the first insurance application is submitted
A.
B.
C.
D.
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20
25
Which of the following is an exclusion of the businessowners policy (BOP) under the liability section
A.
B.
C.
D.
Liquor liability
Products liability
personal liability
advertising injury liability
never investing in stocks to prevent losing money is an example of what kind of risk
A.
B.
C.
D.
avoidance
limit
reduction
retention
most statements contained in the insurance application is considered
A.
B.
C.
D.
declarations
misrepresentation
representation
warranties
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under a homeowners policy, which of the following is n insureds location
A.
B.
C.
D.
vacant land with a shed
cemetery plots of an insured
vacancy land rented to a farmer
renting a hall for a business meeting
how can a producer be protected form liability exposure arising from an inadvertent error or omission?
A.
B.
C.
D.
Not offer to sell any legal liability coverage forms
Purchase and maintain professional liability insurance coverage
There is no way to be protected as all coverage forms include some form of legal liability
Offer only comprehensive coverage forms that specifically exclude coverage for the property of
others
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
In the process of having a tree cut down, a gust of wind blew the tree into a homeowners roof, the
homeowner did NOT need to prove negligence due to the doctrine of
A.
B.
C.
D.
Commercial liability
Vicarious liability
Absolute liability
Strict liability
A business that transports its own cargo and also transports cargo for hire would be referred to as
A.
B.
C.
D.
Motor carrier
Common carrier
Trucker
Contact carrier
Under the homeowners auto liability insurance policy, an injured insured will receive actual loss of
income up to 3 years after the accident or until the insured dies, whichever is sooner. What percentage
of income is received?
A.
B.
C.
D.
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75
85
100
What does the special provisions- Michigan endorsement do
A. It modifies the Michigan insurance agent license laws
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B. It identifies the duties of the Michigan insurance director
C. It modifies the homeowners policy to comply with Michigan law
D. It makes it easier for alien insurance companies to do business in Michigan ‘
What part of the garage coverage from provides liability coverage for physical damage to
automobile in the care, custody and control of the insured ‘
A.
B.
C.
D.
Garage liability coverage
Specific causes of loss
Garage keepers coverage
Physical damage coverage
Which of the following would be covered on an unendorsed homeowners form
A.
B.
C.
D.
Smoke damage from a fire in a fireplace
Damage to home as a result of an earthquake
Water damage as a result of an overflow from a sump pump
Loss of property due to the insureds failure to save and preserve property after a partial fire in
the home
The homeowners policy covers which of the following losses
A.
B.
C.
D.
Theft in a dwelling under construction
Vandalism if a dwelling has been vacant for 20 days
Loss covered by birds and domestic animals
Damage by flood
In Michigan while driving a rental vehicle where the rental insurance is primary what are the bodily
injury limit of the unendorsed rental car insurers policy
A.
B.
C.
D.
$250,000/$500,000
$50,000/$100,000
$20,000/$40,000
$0
A person who decides the acceptability of a risk is identified as
A.
B.
C.
D.
A producer
An adjuster
A regulator
An underwriter
What guarantees temporary coverage
A.
B.
C.
D.
Declarations
Application
Warranty
Binder
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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 tenant is in an apartment building
The nonresident owner of a rental property
The owner occupant
Falsifying the benefits advantages or conditions of an insurance policy is an example of the following
A.
B.
C.
D.
Misrepresentation
Concealment
Coercion
Forgery
The PRIMARY purpose of an endorsement is to
A.
B.
C.
D.
Modify the original policy
Describe the covered loss
Define the terminology
Increase the premium
When an insured losses control and damage a building in Michigan, which part of the no fault coverage
pays for the damage
A.
B.
C.
D.
Residual liability
Property damage
Limited property damage
Property protection insurance
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 endorsement
Employee theft
The type of construction that uses material that can withstand fire doe AT LEAST 2 hours is
A.
B.
C.
D.
Masonry
Frame
Fire-resistive
Non-combustible
Using there own vehicles for business, an employee ran a red light and hit another vehicle causing
property damage and boldly injury and a third party. Under the hired auto and non owned liability
endorsement which of the following is a true statement
A. Both property damage and bodily injury will be covered to the third party
B. Only damage to the third party vehicle will be covered
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C. Only bodily injury will be covered
D. The claim will be denied
Which of the following coverage forms will provide coverage for a farmers $750,000 hay combine
harvester that operates both on and off roads
A.
B.
C.
D.
Farm personal property
Livestock coverage form
Business automobile policy
Mobile agriculture machinery and equipment
Which of the following is covered by the cause of loss special form under commercial property?
A.
B.
C.
D.
Smog
Flood
Mudslide
Windstorm
If a residence is made uninhabitable by a covered loss, what coverage applies
A.
B.
C.
D.
Coverage A-dwelling
Coverage B- other structures
Coverage C- personal property
Coverage D- loss of use
Which term describes the fact that insurance contract are unequal
A.
B.
C.
D.
Unilateral
Personal
Indemnity
Aleatory
Insurance producers 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 claims are paid
Work with rating bureaus to establish insurer ratings
Offer to pay the insureds premiums if they are unable to do so
A concurrent causation is a
A.
B.
C.
D.
Loss to a pair or set
Claim involving two or more parties
Loss caused by two or more perils
Claim covered by two or more insurers
The jones act is a federal law that allows members of shippers’ crew to sue for injury caused by
A. Other people
B. Passenger negligence
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C. The employers negligence
D. The employee/other employees
Which type of hazard arises when an insured leaves the car keys in the ignition and doors unlocked
while running into the party store for a short time
A.
B.
C.
D.
Moral
Morale
Physical
Risk
Which of the following is insured under coverage A- dwelling in a homeowners policy
A.
B.
C.
D.
A structure unattached to a dwelling
Land on which a dwelling is located
On-site materials used to repair a dwelling
Debris removal
In writing at the time of renewal, the servicing carriers for the Michigan automobile insurance
placement facility (MAIPF) MUST offer of the insured ‘
A.
B.
C.
D.
The opportunity to request reassignment to another service carrier
The name of an alternative service carrier that would provide coverage
A renewal with lower, standard insurance rates for the same coverage
A premium estimate for the same coverage with a standard carrier
The purpose of the Michigan workers compensation placement facility is to
A. Allow for the creation of Michigan based captive insurers to form their own company
B. Allow the state of Michigan the opportunity to generate funds by selling workers compensation
insurance
C. Provide insurance to any person who is unable to obtain workers compensation coverage
through ordinary methods
D. Provide for a state funded insurer that will provide competitive rates in order to protect the
public when purchasing workers compensation coverage
All of the following offense are included in personal and advertising injury coverage except
A.
B.
C.
D.
False imprisonment
Malicious prosecution
Legal eviction
Wrongful entry
A commercial liability loss is insured by two insurers. Both policies require all insurers to pay the same
amount up to the policy with the smallest limit. The other insurance condition calls for loss payment of
contribution by
A. Recovery
B. Proportion
C. Equal shares
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D. Excess shares ‘
Before an individual can sell, solicit or negotiate, non-admitted insurance policies, what are they
required to obtain
A.
B.
C.
D.
Counselor license
Surplus lines license
Limited lines license
Certificate of authority
Damage to a personal property Insured on an agreed value basis was destroyed in a fire. Payment would
be limited to the
A.
B.
C.
D.
Set amount of the item
Appraisal amount of the item
Deprecated value of the item
Amount of the replacement item
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 policyholder primary liability insurance policy
Multiple dwelling and vehicle under a single insurance policy
Vehicles that are either rented or borrowed by the policyholder
When a producer appointment has been terminated, the producer may
A.
B.
C.
D.
Service the existing policy
Increases the policy limits
Bind new coverage
Renew a policy
According to the personal automobile policy, the definition of occupying does NOT include
A.
B.
C.
D.
Under a vehicle
Sitting on a vehicle
Getting In a vehicle
Getting out of a vehicle
Under the liability section of a homeowners policy, which of the following would be covered under
additional coverage
A. First aid for the insured and the insureds family members
B. Damage to the insureds home if the damage was caused accidentally by the insured
C. Reasonable expenses incurred by the insured at the company’s request in the investigation or
defense of a claim
D. Any judgment amount over and above the specified limit of liability included in the policy itself
Which of the following is covered under coverage E and coverage F under a homeowners policy
A. Intentional actions by an insured under the policy
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B. Premises rented by an insured for non-business use
C. Rental of any party of the premises other than the residence
D. Liability arising out of the transmission of a communicable disease by the insured
Which of the following is NOT a basic peril on a homeowners forms
A.
B.
C.
D.
Riot
Smoke
Volcanic eruption
Flood
Which condition may void a homeowner policy
A.
B.
C.
D.
Vandalism
Concealment
Unpaid premiums
Liberalization clause
Which of the following situations is excluded in the homeowners policy
A.
B.
C.
D.
Use of a rented sailboats under 26 feet
Breaking a neighbors windows while playing baseball
Running over the neighbors fence in a fit of rage
Accidently hitting another golfer in the head with a ball while golfing
Singing another name to an application for insurance is
A.
B.
C.
D.
Coercion
Forgery
Misrepresentation
Twisting
Which endorsement can an insured add to their 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 named insured endorsement
Which section of an insurance policy clarifies the meaning of certain terms used in the policy
A.
B.
C.
D.
Conditions
Declarations
Definitions
Insuring agreement
An insured losses control of his car, hitting the neighbor’s car, damaging their garage and the insured’s
bike which the neighbor was using. The insureds automobile liability policy will NOT cover the
A. Injuries to the occupants
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B. Damage to the neighbors house
C. Damage to the neighbors car
D. Damage to the insured bike
Which of the following is excluded
A.
B.
C.
D.
Fire
Vandalism
Wind and hail
Earth movement
Which section pf policy outlines when a loss will NOT be covered
A.
B.
C.
D.
Conditions
Provisions
Exclusions
Insuring agreements
An insured was reviewing the section of the policy that specifies the meaning of certain terms used.
Which of the policy was the insured reviewing
A.
B.
C.
D.
Conditions
Declarations
Definitions
Exclusions
Under the your duties if injury occurs section of the workers compensation policy, which of the
following is NOT required of the employer
A.
B.
C.
D.
Report the injury to the state
Report the injury to the insurer ‘
Cooperate with the insurers investigation
Provide medical services for injured party
A contract is only valid when preformed by which of the following parties ‘
A.
B.
C.
D.
Competent
Competitive
Conditional
Considerate
The conditions section of a business automobile policy states that when a loss occurs, the insurer
A.
B.
C.
D.
Must pay the cash value of the vehicle
Must replace the vehicle
May either pay for, repair, or replace the vehicle
May let the insured decide how to be compensated
The definition of business under the homeowners policy includes which of the following
A. The rending of home daycare services to a relative of an insured
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B. Providing home daycare services for which no compensation is received
C. A trade, profession, or occupant engaged in a full-time or part-time or occasional basis
D. Volunteer actives for which no money or received other then payment foe expenses incurred to
perform the activity
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 ‘
An insured was sued for negligently causing injuries in a car accident. The court did NOT find the insured
to be negligent because
A.
B.
C.
D.
The accident resulted in injuries
They did not breach the legal duty owned
They owned the legal duty to drive safely
There actions were the proximate cause of the accident
According to the conditions of a personal automobile insurance policy, what MUST the insured party do
after a loss occurs?
A.
B.
C.
D.
Ensure premiums are paid up to date
Refrain from legal action without the insureds approval
Permit the insurer to inspect the vehicle before it is repaired
Report the vehicle collision to the department of insurance and financial services ‘
What coverage would a contractor buy to provide protection for a subcontractors negligence
A.
B.
C.
D.
Disability
Workers compensation
Owners and contractors protective liability
Contractual liability
Which of the following is an element insurable risks
A.
B.
C.
D.
Risk must be expected
The loss must be calculable
Risk must be finically insignificant
Cost of insurance must be unaffordable
If a 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 the insured cares for
The type of business incorporated
The location of the home day care
The square footage of the house
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Which of the following commercial property endorsements allows an insured to pay premiums based on
the actual monthly amount of inventory
A.
B.
C.
D.
Spoilage
Peak season
Value reporting
Building ordinance
Which of the following watercraft could the insured purchase and be assured it is automatically covered
for liability under their homeowners policy
A.
B.
C.
D.
A 30 foot sailboat
A 50 foot sailboat
An outboard sailboat with 15 horsepower engine
An outboard sailboat with 50 horsepower engine
According to the conditions of commercial general liability, what are the insureds duties in the event of
an occurrence, claim or suit
A.
B.
C.
D.
They must provide written notice of a claim or suit within 7 days of an occurrence
They must promptly notify the insurer of an occurrence that may result in claim
They should provide notice to the insurer of all business matters
They must notify their legal counselor within 7 days
Which of the following is 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 underlying property coverage
To cover large losses that exceed the underlying liability coverage
Under the Michigan essential insurance act, which of the following classification may NOT be used by
rating automobile insurance
A.
B.
C.
D.
Age
Type of use
Martial status
Claims history
Which of the following endorsements require the insured to hire a security service with a guard that
makes hourly rounds on the premises while the business is closed?
A.
B.
C.
D.
Vandalism and malicious mischief endorsement
Utility services endorsement- time element
Protective safeguard endorsement -P-3
Utility services safeguard endorsement
Under a Michigan fire insurance policy, if an insured and an unable to agree on the amount of a loss,
which of the following methods of settlement is used
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A.
B.
C.
D.
Either party can invoke the appraisal condition
A lawsuit in instituted by the insured against the insurer
An average of the insured and the insurers estimates are used
An informal hearing before a designee of the commissioner of insurance is conducted
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
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
Under a fire insurance policy, what procedure may be used to set the amount of actual cash value of
loss when the insurer and insured disagree on the amount
A. E
