Exam One Home / Exam One Insurance First Name Last Name Email Phone Number of questions: 240 Has a time limit of: 02:00:00 Must be finished in one sitting. You cannot save and finish later. Questions displayed per page: 1 Will allow you to go back and change your answers. Will not let you finish with any questions unattempted. Has a pass mark of: 75% The part of the policy that sets the insurer's limitations is: A. Conditions B. Declarations C. Insuring agreements D. Exclusions Flood insurance is offered on a national level for: A. Buildings and contents, both residential and non-residential B. residential and non-residential buildings only C. private residences only D. private residences and residential contents only When is a property deemed unoccupied if it is covered under a building personal property coverage form? A. When the insured's operation is halted due to a strike B. When the insured occupies less than 31% of the total building space that is rented or used by others. C. When there is insufficient business personal property present to conduct customary operations D. When the structure is being renovated as the result of a fire Except for the following, all of the following are linked to tort law: A. Negligence B.Intentional tort C. Absolute liability D. Breach of contract Except for the following, a business-owners policy must include all of the following coverages: A. Building coverage B. Professional liability coverage C. Extra expense coverage D. Business income coverage Which of the following groups of people is covered by medical coverage in a commercial general liability policy? A. The insureds employees while engaged only in a sports event that is employer sponsored B. Customers of the insured who are already transacting business on the insured's premises C. The insured's employees while participating in any activities that are employer sponsored D. The insured's hired repair person who is fixing windows damaged by a peril insured by the policy What is an insurer's loss reserve for a claim? A. The maximum amount the insurer will have to pay close to the claim B. An estimate of how much the insurance company will pay C. The exact amount the insurer will have to pay to close the claim D. Equal to claims paid divided by earned premium reserve, not including loss of adjustment expense How much advance notice does the insurance have to provide the insured? A. 20 days B. 30 days C. 10 days D. 5 days The amount needed to replace a damaged insured's property, less depreciation, is known as the: A. Stated amount B. Actual cash value C. Replacement value D. Agreed amount An open-peril policy protects against the following losses: A. Only the perils openly named in the policy B. Any peril that isn't clearly listed as being excluded C. Mainly, perils of the sea D. Perils found outside in the open What are some of the characteristics of negligence? A. Breach of duty and damages caused B. Damages, breach of duty, proximate cause C. Duty and breach of duty D. Breach and proximate cause Except as noted, each of the following methods of cost valuation in an inland marine policy: A. Restoring the damaged property B. Using the market value of the damaged property C. Replacing the damaged property with almost identical property D. Calculating the actual cash value of the damaged property Which of the following programmes is not run by the federal government? A. Federal Crop Insurance Corporation B. Federal Deposit Insurance Corporation C. Workers Compensation D. National Flood Insurance Program What is the main distinction between umbrella and excess liability insurance? A. The umbrella covers intentional acts; the excess liability does not B. Most liability exposures are covered by the umbrella and excess liability may only cover one line. C. The umbrella has fewer supplementary features and is less expensive than the excess policy D. The umbrella affords defense costs; the excess liability does not Under Section I of a homeowner's insurance, which of the following individuals is not an insured? A. The named insured's (resident) 25 year old nephew B. The named insured's (resident) spouse C. The named insured's (non-resident) spouse D. The named insured Liability inspection services account for a significant portion of the premium payable for boiler and machinery insurance. A. Cannot be determined B. TRUE C. Cant Say D. False What is the minimum discount offered for good drivers? A. 20% B. 0.15 C. 0.05 D. 0.1 What are some of the similarities between the HO-2, HO-4, and HO-6? A. The limits provided under coverage B B. Under coverage C, there are certain limits provided C. Perils insured against under coverage D D. Perils insured against under coverage A Personal property transported to a new principal residence under the dwelling property forms will be automatically covered at the new location (subject to policy expiration) for the following period: A. 20 days B. 10 days C. 30 days D. 60 days What endorsement may be added to a personal car policy to cover an all-terrain vehicle (ATV) purchased by an insured? A. Endorsement for a Miscellaneous vehicle types B. There is no endorsement for this exposure C. ATV endorsement D. Recreational vehicle endorsement What extra coverages are provided with the scheduled personal property endorsement that aren't available through a standard homeowner's policy? A. Vandalism to artwork B. Glassware breaking as a result of an earthquake C. Damage to a camera in an auto accident D. Theft "Personal property coverage under a HO-4 is limited to $60,000, with no deductible. The insured is on vacation in Europe when their bed and breakfast inn burns down. This is the amount of money lost by the insured person as a result of the fire: A. 24000 B. 28000 C. $32,000 D. 18000 An automobile is not owned or leased by a single person. On rare occasions, she drives her housemate's car in an emergency. She'll be on vacation and will need to rent a vehicle. What should she buy in order to get enough car insurance coverage if this happens? A. The extended non-owned coverage endorsement B. The endorsement for named non-owner coverage C. The transportation extension endorsement D. The miscellaneous vehicle endorsement Which of the following exclusions in the causes of loss special form excludes mudflow coverage? A. Ordinance or law B. Governmental action C. Utility service D. Water (flood) The following insurance policies protect shipowners from vicarious responsibility claims arising from the operation of the insured vessel: A. Hull insurance B. Protection and indemnity insurance C. A voyage policy D. The sue and labor laws Which of the following forms of coverage would be required to protect a contractor's bulldozers that are utilised in his company but not for sale? A. Annual transit policy B. Protection and indemnity insurance C. Older truck cargo floater D. Installment sales floater What is one reason someone would get a dwelling form policy rather than a homeowner's policy? A. The owner does not reside in the premises. B. The dwelling form provides broader coverages C. The dwelling form provides greater flexibility in selecting coverage D. The dwelling is occupied by two families What coverage does the named non-owner coverage endorsement provide? A. Liability and physical damage B. Uninsured motorists, liability, and medical payments C. Liability only D. Physical damage and uninsured motorist The potential of financial loss as a result of property ownership is referred to as: A. Legal liability B. Valuation C. Indemnity D. Insurable interest Which of the following is provided by an umbrella policy? A. Provides broad primary coverage for most personal or commercial loss exposures B. Overlays one or more primary policies with wide excess liability coverage. C. Provides excess physical damage coverage D. Provides coverage for outdoor fairs and exhibitions in case of bad weather Which of the following is included in all Workers' Compensation policies? A. 24-hour on and off the job coverage for workers B. Adequate retirement benefits C. Major medical coverage with 20% co-payment; co-payment has an annual stop-loss of $1,500 D. Compensation for workplace injuries regardless of fault The term "subrogation" is used to describe the following: A. The transfer of the insured's interest in a policy to another party B. The insurance policy applies separately to each insured C. The insured's right to receive broadened coverage at no extra charge D. The insurer's right to sue a liable third party for payment Which of the following is involved in the execution of the policy? A. Cancelling a policy B. Signing a covering note C. Discussing policy limits with the client D. Filling out an application What is the minimal level of financial liability necessary under California law if many persons are wounded in a single accident? A. 5000 B. $30,000 C. 10000 D. 15000 The following is an example of a gadget that is used to reduce small claims and lower insurance premiums: A. Deductible B. coinsurance C. arbitration D. a value policy Which party has the authority to terminate a commercial policy (provided all legal conditions have been met)? A. Insurance company and/or any insured named in the policy B. The insurance company and/or the policy's first named insured C. Insurance company and/or the first named insured, only concurrently D. Insurance company only Except for the following, there are no distinctions between surety bonds and insurance: A. The surety should not suffer a loss B. 3-party contract C. Reserves are not established D. n the event of a loss, the obligee is liable to the guarantor. "Personal property coverage under a HO-4 is limited to $60,000, with no deductible. When the insured is on vacation in Europe, the bed and breakfast inn where they are staying is broken into. This is the amount of money lost by the insured person as a result of the theft: A. 24000 B. $17,500 C. 0 D. 32000 The condition of a commercial package policy's inspections and surveys is crucial to the insurer for all of the following reasons, except: A. Ascertain that the insured is complying to all safety standards. B. To determine the insurability of the insureds operations C. Make loss control recommendations D. To set proper insurance rates The condition of a commercial package policy's inspections and surveys is crucial to the insurer for all of the following reasons, except: A. Ascertain that the insured is complying to all safety standards. B. To determine the insurability of the insureds operations C. Make loss control recommendations D. To set proper insurance rates Submit
