Fire Exam 2 Home / Fire Exam 2 Welcome to your Fire Exam 3 1. Which of the following is covered by a building and personal property coverage form? Please select your answer Patio Light pole Bridge Dock 2. What steps need to be taken to terminate a licensee’s license that is in the possession of the employer? Please select your answer The employer must return the license to the licensee, who then must return the license to the insurance commissioner The licensee must give written notice to the employer who then sends the license to the insurance commissioner The license cannot be terminated prior to the expiration date, it becomes inactive The licensee needs to give written notice of intent to the insurance commissioner 3. What will happen when an agent’s appointment to an insurance company is terminated and the agent has no other appointments with any other insurance company? Please select your answer The agent’s permanent license becomes inactive The agent’s permanent license remains fully active until expiration The agent’s permanent license remains in force for only 60 more days unless the agent becomes reappointed or receives a new appointment letter from another insurer The agent’s permanent license will be terminated simultaneously 4. How long can you leave your license on inactive status? Please select your answer 1 year 2 years 3 years Indefinitely 5. What gives an insured the right to seek compensation if it is proven that another person with negligence contributed to the injury? Please select your answer Statutory code Tort law Criminal code Case law 6. Surplus lines brokers Please select your answer Are always employees of insurance companies Transact business only with admitted insurers Specialize in marine insurance Transact business only with non-admitted insurers 7. Which of the following is an insurer’s option when making a settlement with the insured under a personal auto policy? Please select your answer Return stolen property to the address shown in the policy Have the insured purchase the auto at an auto auction Demand that the insured first attempt to settle with the responsible party Instruct the insured to repair the vehicle at a designated repair shop 8. Which of the following is a common policy condition for a commercial package policy? Please select your answer Cause of loss Duty to defend Pro-rata clause Inspections and surveys 9. Insurance which covers ship owners against vicarious liability claims due to operating the insured vessel is: Please select your answer A voyage policy Hull insurance The sue and labor laws Protection and indemnity insurance 10. Which advisory organization(s) develop forms for the standard market? Please select your answer National Association of Insurance Commissioners and the American Association of Insurance Services Insurance Services Office National Association of Insurance Commissioners and the Insurance Office Insurance Services Office and the American Association of Managing General Agents 11. What is one of the main factors that the Insurance Commissioner uses while determining whether a rate is excessive or unfairly discriminatory? Please select your answer Whether the rate mathematically reflects the insurance company’s investment income Complaint history of the insurer by insureds How long the insurer has been admitted to do business in the state The degree of competitition 12. Which of the following perils is covered by a “cause of loss – basic form? Please select your answer Governmental action War Riot or civil commotion Ordinance or law 13. Which of the following is not an example of an extended coverage peril? Please select your answer Aircraft Earthquake Smoke Windstorm 14. The commercial property policy part “cause of loss – broad form” includes an exclusion for “concurrent causation.” The effect of this exclusion is: Please select your answer If two or more perils happen at the same time to cause a loss, there is no coverage if any of the perils are excluded If two or more perils happen at the same time to cause a loss, there is coverage for all of the damage if any of the perils are not specifically excluded If a loss occurs concurrently with the expiration date of the policy, it is not covered If two or more perils happen at the same time to cause a loss, then only the damage caused by one of the perils is covered 15. A physician may have misdiagnosed a patient for terminal cancer. What type of insurance would protect the physician for this type of mistake? Please select your answer Personal liability Health insurance Professional liability Allied lines insurance 16. What coverage is available under the named non-owner coverage endorsement? Please select your answer Liability, medical payments, and uninsured motorist Liability and physical damage Physical damage and uninsured motorist Liability only 17. Which is the following is considered special damages? Please select your answer Compensation for a person’s emotional suffering Compensation for loss of a foot Compensation for time away from work Compensation for a scar 18. All of the following are mandatory coverages of a business-owners policy, except: Please select your answer Extra expense coverage Professional liability coverage Building coverage Business income coverage 19. An agent who diverts premium dollars for the agent’s own use is guilty of: Please select your answer Theft Fraud Forgery Misrepresentation 20. Every admitted insurer in the state of California is required to maintain a unit or division to investigate which of the following: Please select your answer Possible non-justifiable discrimination Possible non-compliance with CA rate laws Possible fraudulent claims made by insureds Possible arson claims 21. Which of the following would be considered special damages? Please select your answer Scarring Loss of an index finger Lost wages Possible arson claims 22. What is one of the principle rating factors under Proposition 103 (Unruh Act) allowed for personal auto policies? Please select your answer Credit record Safety driving record Year of the auto Make of the auto 23. Which of the following is eligible for a Businessowners policy? Please select your answer A sports bar A credit union An auto repair shop A furniture store 24. All of the following are listed on a Commercial General Liability declarations page, except: Please select your answer Medical expense limit Rented to you limit Personal advertising injury limit Pollution liability limit 25. The term “subrogation” refers to: Please select your answer The insurer’s right to recover payment from a responsible third party The insured’s right to receive broadened coverage at no extra charge The insurance policy applies separately to each insured The transfer of the insured’s interest in a policy to another party 26. All of the following statements concerning business owner’s policies are true, except: Please select your answer It allows insurers to individually underwrite the smaller low-premium policies It contains simpler reading which owner handling costs for insurers Insureds have the benefit of additional coverages that might otherwise be overlooked Insureds have the convenience to one policy that meets most of their needs at a reduced premium 27. Under an unendorsed personal auto policy, what coverage is available for personal effects? Please select your answer None Luggage and clothing up to $500 Luggage up to $200 All personal property in the auto up to $500 28. A home is damaged minutes after an earthquake, first by fire, then by fuel pipes bursting and causing an explosion. Under an HO-3 form: Please select your answer There is no coverage unless the homeowner has made an earthquake coverage endorsement a part of the policy The policy covers all of the damage since explosion is an insured peril There is no coverage, but only for the damage caused by the fire and explosion The policy does not cover the damage since the HO-3 provides only named peril coverage 29. The insurer’s right to recover its claim payment to an insured from a negligent third party is known as: Please select your answer Liberalization Subrogation Arbitration Assignment 30. All of the following are requirements for a notice by mail to an insured by an insurer, except: Please select your answer Notice must be mailed to the residence or principal place of business Notice must be sent with return receipt required Notice must be addressed to the person being notified Postage must be prepaid 31. If the vacancy permit endorsement is added to a building and personal property coverage form, the vacancy condition under the basic policy is: Please select your answer Waived after the policy period Waived only for designated perils during the policy period Waived only for designated perils during the permit period Waived during the permit period. 32. Under the commercial building and personal property coverage extensions, property off-premises is not covered while the property is located: Please select your answer At a salesperson’s home In a delivery truck At a trade fair In the building the named insured has leased for five years 33. If the named insured is not the owner of the building, improvements and betterments are covered under the: Please select your answer Agreed value Newly constructed property Business personal property Building 34. A person can base his/her claim for legal liability on the basis of all of the following except: Please select your answer Absolute liability Breach of contract Intentional tort Negligence 35. All the following are related to tort law, except: Please select your answer Breach of contract Absolute liability Intentional tort Negligence 36. Which of the following statements is true regarding insurers with admitted status in California? Please select your answer They may use race, color, religion, or national origin as a condition to use higher rates They may use any rating methods that are actuarially sound in rating the policy They may not use race, color, religion, or national origin as a condition to use higher rates They must file for an exemption with the insurance commissioner if they wish to use race, color, religion, or national origin as a rating condition 37. The term “assignment” refers to: Please select your answer The insurance policy applying to each insured The insurer’s right to collect damages from a third party The insured’s right to receive broad new coverage from the insurer at no charge The transfer of the insured’s interest in a policy to another party 38. Which of the following describes the act of making a false entry in any book, statement or report of any insurer with the intent to deceive any examiner lawfully appointed to examine the insurer’s affairs? Please select your answer An unfair practice An exclusionary act An error or omission An aleatory act 39. Under the business income coverage form, extra expenses are: Please select your answer Covered without limit during the period of restoration Excluded Covered up to the amount they reduce the business income loss Covered up to the monthly limit specified in the declarations 40. If an insured purchases an all-terrain vehicle (ATV), what endorsement can be added to the personal auto policy to insure the vehicle? Please select your answer ATV endorsement Recreational vehicle endorsement There is no endorsement for this exposure Miscellaneous type vehicle endorsement 41. All of the following are areas that market regulation covers, except: Please select your answer Employee training Underwriting Sales Rate-making 42. All of the following are covered by Protection and Indemnity insurance, except: Please select your answer Injury to persons on other ships Injured passengers on the ship The cost of reasonable measures that the insured must take to prevent damage at the time of loss Damage to piers 43. Under an unendorsed personal auto policy, transportation expense coverage applies to: Please select your answer Theft losses only Collision and other-than-collision losses Other-than-collision losses only None. There is no coverage 44. Which of the following is an example of loss prevention? Please select your answer A homeowner decides not to restore water damage to basement A homeowner installs a home sprinkler system A homeowner decides not to install a pool in the backyard A homeowner installs a home security system 45. All of the following are typical exclusions in an inland marine policy, except: Please select your answer Insects or vermin Earth movement Wear and tear Electrical breakdown 46. An organization will cease to exist as an entity eligible to hold a license for all of the following reasons, except: Please select your answer Termination of a key employee Dissolution of a co-partnership Dissolution of a corporation Termination of an association 47. An insurer’s loss reserve for a claim is: Please select your answer The exact amount the insurer will have to pay to close the claim An estimate of the amount the insurer will pay The maximum amount the insurer will have to pay close to the claim Equal to claims paid divided by earned premium reserve, not including loss of adjustment expense 48. What coverage is available under the miscellaneous type vehicle endorsement? Please select your answer Physical damage only All coverage under the personal auto policy Liability and physical damage only Liability only 49. If an insured has a personal auto policy, but does not pay the initial insurance premium when it is due. The insurer cancels the policy for non-payment. How many days of advance notice must the insurer give? Please select your answer 5 days 20 days 15 days 10 days 50. If an individual does not own an auto, nor have regular use of an auto, what endorsement to a personal auto policy could be used to properly protect that individual? Please select your answer Named non-owned coverage endorsement No coverage available Extended non-owned liability coverage endorsement miscellaneous type vehicle endorsement 51. The watercraft endorsement on a homeowners policy extends coverage for: Please select your answer Liability for all owned watercraft Physical damage and liability for all owned watercraft Liability coverage for watercraft listed on the schedule Physical damage and liability coverage for watercraft listed on the schedule 52. After a collision loss, the personal auto policy requires the insured to: Please select your answer Submit a written notice of the loss to the company Promptly notify the police of the accident Press charges against the other party Press charges against the other party 53. Which coverages are typically provided in a boatowners policy? Please select your answer Hull and collision Hull, running down, and protection and indemnity Property, liability, and medical payments Physical damage, liability, and medical payments 54. What is one way in which the HO-2, HO-4, and HO-6 similar? Please select your answer Perils insured against under coverage D Perils insured against under coverage D The limits provided under coverage B Perils insured against under coverage A 55. A commercial general liability (CGL) policy is quite broad in scope. However, there are a substantial number of exclusions. Three of the four following loss exposures are excluded. Identify the loss exposure that is covered by an unendorsed CGL – property damage or liability arising out of: Please select your answer The ownership of an airplane An employee being injured while working on the insured’s premises An accident while driving an owned automobile on a public highway An employee accidentally injures a customer while working at the customer’s home 56. What causes of loss is/are covered under the business income coverage form? Please select your answer Those shown on the declarations All perils Those included in the business income form Broad form perils only 57. When an employer has a choice to purchase workers compensation insurance from a state fund or a private carrier, the state fund would be called? Please select your answer A residual fund A monopolistic fund A competitive state fund A private fund 58. If an insured discovers an occurrence 75 days after the expiration of a claims-made commercial general liability policy, what must the insured have in order for the loss to be covered? Please select your answer A supplemental extended reporting period endorsement Umbrella policy The loss will not be covered because it was not reported during the policy period Nothing; as long as the loss occurred during the policy period 59. What is the main purpose of tort law? Please select your answer To minimize the amount of insurance claims made To determine responsibility for damages To prosecute the responsible party To assign punitive damages to the responsible party 60. The inspections and surveys condition of a commercial package policy is important to the insurer for all of the following reasons, except: Please select your answer Make loss control recommendations Guarantee that the insured is in compliance with safety regulations Guarantee that the insured is in compliance with safety regulations To determine the insurability of the insured’s operations 61. Which of the following is not considered an intentional tort? Please select your answer Auto accident Blasting operations Unauthorized release of confidential information Ownership of a pet rattlesnake 62. What is the purpose of the inspections and surveys condition of the commercial package policy? Please select your answer To determine if the premises comply with ADA requirements To ascertain if the premises has maintained the required building codes To determine the rate to be charged To specify if the premises comply with OSHA requirements 63. Which of the following statements is true regarding compensatory damages? Please select your answer General damages have specific economic value Punitive damages are awarded to a person for actual pain and suffering Special damages do not have a specific economic value There is usually no direct correlation between the amount of general and special damages awarded to the victim 64. When does a personal auto policy require the insured to notify the police? Please select your answer For thefts only For hit and run accidents and thefts There is no requirement to notify the police For all accidents and thefts 65. What coverage is available under the extended non-owned liability coverage? Please select your answer Liability, medical payments, and uninsured motorist Liability and physical damage Liability and medical payments Liability only 66. Why is the examination of books and records condition important in a commercial policy? Please select your answer To ensure that the insurance business is profitable To ensure that the insurer is using generally accepted accounting principles To ensure that the proper amount of premium is charged To ensure that the insurance business is solvent 67. What is the limit per day for transportation expenses in an unendorsed personal auto policy? Please select your answer $10 $15 None $20 68. Which homeowners form is best for use on a brand-new family dwelling? Please select your answer HO-5 HO-4 HO-6 HO-8 69. The ordinance or law limitation in a homeowners policy may cause a gap in coverage in which of the following situations? Please select your answer A law requires all swimming pools on a residential property to be fenced and to have self-closing gates. The insured’s gate is not self-closing, and the neighbor’s child goes through the gate and is severely injured when he falls into the insured’s pool The insured’s home is damaged by fire and must be rebuilt to meet present building codes. The additional cost of complying with the codes is 50% The insured has a business occupancy that is permitted by homeowner’s rules and does not affect his coverage. However, local community laws prohibit the occupancy unless certain approvals are obtained and fees paid. The insured has not obtained approvals nor paid fees prior to windstorm damage to his home A community ordinance requires dogs to be on a leash. The insured’s dog, running free in a park, bites a child 70. What additional coverages does a DP-2 have as compared to a DP-1? Please select your answer Debris removal Personal liability Additional living expenses Improvements, alterations, and additions 71. Which of the following collapse losses would be covered under an HO-3? Please select your answer Known insect damage Weight of contents Defective workmanship completed two years ago Earth movement from a volcanic eruption 72. Coverage under a comprehensive personal liability policy (CPL) or a homeowners section II extends: Please select your answer To the premises described and to the personal activities of the insureds on or off of the premises Only to the premises described in the policy Only to the personal activities of the insureds To the premises described and to al personal and business activities of the insureds on or off the described premises 73. 00. Absolute risk or liability is imposed: Please select your answer When the injured party assumes the risk When there is intent to cause injury When there is negligence whether proven or not None of the above 74. Which of the following coverages may you buy with a named operator policy? (Choose the most complete answer) Please select your answer Liability only Liability and uninsured motorist Liability, medical payments, uninsured motorist, collision and other than collision Liability, medical payments, and uninsured motorist 75. Which of the following coverages may you buy with an extended non-owner policy? (Choose the most compete answer) Please select your answer Liability only Liability and uninsured motorist Liability, medical payments, and uninsured motorist Liability, medical payments, uninsured motorist, collision and other than collision 76. A is in an accident with B. A suffers $10,000 of damage, but it is determined that A is 25% responsible for the accident. How much would A receive under comparative negligence rules? Please select your answer $0 $2,500 $7,500 $10,000 77. X is in an accident with Y. X suffers $5,000 of damage but it is determined that X is 60% responsible for the accident. How much would X receive under contributory negligence rules? Please select your answer $0 $2,000 $3,000 $5,000 78. Under California law, if there are several people injured in one accident, what is the minimum amount of financial responsibility required? Please select your answer $5,000 $10,000 $15,000 $30,000 79. The negotiation of a policy involves which of the following? Please select your answer Signing an application form Adding an endorsement to the policy Sending the prospect an email suggesting that they buy a certain type of policy Making a premium payment 80. An applicant for insurance does not reveal information that the insurer would rely upon to issue the policy, this is a/an: Please select your answer Misrepresentation Intimidation Boycott Coercion 81. The provision in a property policy which states that the insured has been paid up to their insurable interest is: Please select your answer Valuation clause Actual cash value Guaranteed replacement Stated value 82. The part of the policy that establishes limits upon the insurer is: Please select your answer Insuring agreements Exclusions Conditions Declarations 83. To be covered for a hit and run accident under the uninsured motorist property damage coverage of a PAP, what is required to be provided to the insurer? Please select your answer Photographs identifying the hit and run vehicle License number of the hit and run vehicle Testimony of an eyewitness to the accident Legal affidavit describing the accident 84. Who is responsible for damage to improvements in a leased building? Please select your answer Building owner Tenant Improvements to a leased building are not covered Both the tenant and the building owner 85. An insurer licensed to transact insurance in California is: Please select your answer Authorized Admitted Allowed Approved 86. Which of the following is not a federal program? Please select your answer Workers Compensation National Flood Insurance Program Federal Crop Insurance Corporation Federal Deposit Insurance Corporation 87. Hull coverage in an Ocean Marine Policy covers which of the following? Please select your answer The ship owner’s liability The freight charged for the transportation of the cargo The vessel itself, including engines and fuel Cargo being transported on the ship 88. What are the characteristics of negligence? Please select your answer Duty and breach of duty Breach of duty and damages caused Breach and proximate cause Duty, breach, proximate cause, and damages 89. Which of the following may be covered under the physical damage insuring agreement of a personal auto policy (PAP)? Please select your answer Damage to the vehicle caused by an engine failure Loss of a CD player installed in the vehicle Theft of a CB radio All are covered 90. The process whereby a mutual insurer becomes a stock company is known as: Please select your answer Demutualization Reorganization Stock split Stock buyout 91. The minimum discount provided for good drivers is: Please select your answer 5% 10% 15% 20% 92. Which is not part of transacting insurance? Please select your answer Solicitation Negotiation Establishing a list of clients Execution of a contract 93. A representation as to the future is considered to be a: Please select your answer Promise Provision Liability Description 94. When may a representation be withdrawn? Please select your answer Only before the insurance is in effect At any time as long as both parties agree It can never be withdrawn Only after the policy is in effect 95. When must insurance records for insurance agents and brokers be made available to the insurance commissioner? Please select your answer At all times One month after policy issuance Within 30 days of a written request by the commissioner Annually, and submitted with the proper paperwork 96. RW and Associates is an agency which represents BLG Insurance Corporation. RW and Associates may leave the name BLG Insurance Corporation in its advertisements by clearly stating the relationship between the two businesses in any of the following ways, except: Please select your answer RW and Associates representing BLG Insurance Corporation RW and Associates using the services of BLG Insurance Corporation RW and Associates placing business through BLG Insurance Corporation RW and Associates underwriting for BLG Insurance Corporation 97. Which of the following describes an insurer who has enough financial resources only to provide for all its liabilities and for all reinsurance of all outstanding risks? Please select your answer Guaranteed Insolvent Solvent Non-participating 98. The execution of a policy involves which of the following? Please select your answer Filling out an application Discussing policy limits with the client Signing a covering note Cancelling a policy 99. The PAP collision deductible is $1,000 and the other than collision deductible if $500. How much would the insurer pay for an accident involving the overturn of one vehicle resulting in $2,000 of damage? Please select your answer $2,000 $0 $1,500 $1,000 100. The PAP collision deductible is $1,000 and the other than collision deductible if $500. How much would the insurer pay for an accident involving vandalism of one vehicle resulting in $2,000 of damage? Please select your answer $1,000 $1,500 $0 $2,000 101. If a bartender allows a patron to leave the bar, and the patron is involved in a drunk driving accident, what would the bar owner need to cover their liability? Please select your answer Liquor liability Commercial general liability Host liquor liability Professional liability 102. The insurer decides not to renew an insured’s personal auto policy. How much notice must the insurer provide to the insured? Please select your answer 10 days 20 days 30 days 5 days 103. Equipment breakdown insurance covers all of the following, except: Please select your answer Tools subject to regular replacement Communication equipment Mechanical equipment used to produce energy Equipment powered by internal pressure 104. All are differences between surety bonds and insurance except: Please select your answer 3-party contract Reserves are not established The surety should not suffer a loss The obligee is responsible to the guarantor in the case of a loss 105. Which is an additional benefit that is included in a DP-2 that is not included in a DP-1? Please select your answer Lawns, trees and shrubs Fire department services Reasonable repairs Debris removal 106. In reference to surety bonds, who is responsible for paying the damages incurred by the principal? Please select your answer Obligee Surety Bondsman Principal 107. Which of the following are reasons why a professional liability policy is written on a claims-made basis? Please select your answer Minimize the effects of inflation Minimize the time between when a loss occurs and a claim is filed and paid Minimize the problem of stacking limits All of the above are reasons 108. A major part of the premium charged for boiler and machinery insurance is used for liability inspection services. Please select your answer True False XXX 109. Which of the following statements is false with regards to boiler and machinery coverage? Please select your answer Coverage can be written as a mono-line or as part of a commercial policy Property is insured on a replacement cost basis unless it is changed to ACV by endorsement Coverage applies only to property the insured owns Supplementary payments are provided in addition to the policy limit 110. Ocean marine hull insurance provides for which of the following? Please select your answer Cargo Freight Vessel All of these are covered by hull insurance 111. Protection and Indemnity (P&I) coverage provides coverage for which of these? Please select your answer Hull Cargo Freight Liability 112. Each of the following is/are methods of cost valuation in an inland marine policy except: Please select your answer Calculating the actual cash value of the damaged property Utilizing the market value of the damaged property Restoring the damaged property Replacing the damaged property with almost identical property 113. Approximately how many classes of insurance may be offered to the public? Please select your answer 20 30 3 5 114. How many major sections are there in the California Insurance Code? Please select your answer 20 30 3 5 115. When does the license of a fire and casualty broker/agent become inactive? Please select your answer When the agent is not transacting with the general public When the agent is not currently appointed by an insurer, but the renewal fees are paid and continuing education requirements have been met When the appointment agreement time period expires When the licensee passes the renewal date 116. Determine the actual cash value in the following situation: Please select your answer Original price of office equipment when purchased: $9,000 Current replacement cost: $12,000 Depreciated amount at the time of the fire: $5,000 $4,000 $5,000 $6,000 $7,000 117. Which of these is defined as an exclusive agent? Please select your answer Sells health insurance only Sells one line of insurance only Sells one insurance company’s products only Sell all policies by telephone only 118. “Risk” is one of the most important terms in the insurance industry. How is it defined? Please select your answer Certainty of a financial loss Basis of a financial loss Predictability of a financial loss Uncertainty of a financial loss 119. An insured has a personal auto policy with liability coverage only and an unendorsed HO-3 homeowners policy. The insured’s auto is parked in the garage when an earthquake strikes. The car and garage are not damaged, but as a result of a broken gas line in the house which has been totally destroyed, a fire results which destroys the car and the garage. The policies would pay for damage to which of the following: Please select your answer Garage only Auto only House and garage only All three are covered 120. Which party is allowed to cancel a commercial policy (assuming all legal requirements are met)? Please select your answer Insurance company and/or the first named insured, only concurrently Insurance company and/or any insured named in the policy Insurance company only Insurance company and/or the first named insured in the policy 121. Which of the following crime coverages has the broadest definition? Please select your answer Robbery Safe burglary Theft Burglary 122. Which of the following coverage parts is not found in a standard commercial package policy? Please select your answer Crime coverage part Dwelling coverage part Property coverage part Boiler and machinery part 123. In a commercial property policy, which cause of loss form includes coverage for the peril of glass breakage? Please select your answer Basic and broad Special only Basic and special Broad and special 124. The medical coverage found in a commercial general liability policy applies to which of the following categories of individuals? Please select your answer The insured’s employees while engaged only in a sports event that is employer sponsored The insured’s employees while participating in any activities that are employer sponsored The insured’s customers who are in the process of transacting business on the insured’s premises The insured’s hired repair person who is fixing windows damaged by a peril insured by the policy 125. Which are covered by the employee dishonesty coverage form? Please select your answer Robbery of an employee Theft of stock from the business, owned by the policyholder, by an employee Cash that is lost by an employee who is driving to the bank Merchandise shortages that are discovered only after an inventory of the store 126. The symbol “4” on a business auto policy indicates coverage for which of the following categories of vehicles? Please select your answer Described autos only All drivers and autos are covered, except for those driven by drivers under age 25 Vehicles of 2 tons or less, that are used for business purposes Owned autos other than private passenger autos 127. A business owner, who is insured with a commercial auto policy, is interested in purchasing the necessary liability coverage for any losses and subsequent claims that result from an employee’ use of their own vehicles. What would be the best way to do this? Please select your answer Require all employees to include the employer as a listed additional insured in their personal auto policies Buy employer’s non-ownership liability in the commercial auto policy Include uninsured motorist coverage in the commercial auto policy contract This type of exposure cannot be covered 128. A single person does not own or lease an automobile. She occasionally drives her housemate’s vehicle on an emergency basis. She is going on vacation and will have to rent a car. To obtain adequate automobile insurance coverage when this occurs, what should she purchase? Please select your answer The miscellaneous vehicle endorsement The transportation extension endorsement The extended non-owned coverage endorsement The named non-owner coverage endorsement 129. The correct recommendation would be: Please select your answer An HO-2 contract An HO-6 contract An HO-3 contract An HO-4 contract 130. The coverage found under both the Homeowners section II and a comprehensive personal liability policy extends to which of the following? Please select your answer Just the personal activities of the insured Just the personal premises of the insured Both personal and premises of the insured on a professional and personal exposure level Both personal activities and premises of the insured as well as any activities of the insured that occur off the named premises 131. What will the insurer pay under this policy? Please select your answer $32,000 $18,000 $24,000 $28,000 132. What will the insurer pay under this policy? Please select your answer $17,500 $0 $24,000 $32,000 133. Damage which is the result of a hailstorm is covered under which of the following ways on a personal auto policy? Please select your answer Excluded as a catastrophic event Covered as an other than collision loss Covered as a collision loss Covered only if the vehicle was under some type of covering at the time of the damaging storm 134. Which of the following is not covered under section II of a homeowners policy? Please select your answer The insured being liable for a bodily injury to someone in the insured’s immediate resident family The insured being liable for the loss of use of property that is owned by another Property damage to another’s owned property Any personal liability of the insured 1 out of 134 Name Email Business Phone Time's upTime is Up!
