Question 1) The Insured has two separate dwelling policies that cover the same p

Question 1) The Insured has two separate dwelling policies that cover the same property. policy A fir $30,000 and policy B for $70,000. the insured has a $12,000 loss. if both polices use the pro rate method to handle other insurance, how much will policy A pay for the loss?
A) 8,000
B) $3,600
C) 12,000
D) $0
The builders risk coverage from identifies specific reasons coverage may cease. which of the following is NOT a reason for coverage to cease? ‘
A. Construction is abandoned
B. 10 days have elapsed since construction was completed
C. The insureds interest in the property ceases
D. the Building is occupied or put to its intended use
a condition or situation that presents a possibility of loss is
A. a peril
b a cause of loss
c. An exposure
d a hazard
Jewelers block coverage would pay for all of the following except
A. a bracelet owned by a customer that has been dropped off for repair work
B diamond earrings in a locked display case on the insured premises
C an engagement ring that has been sold to a customer but is bein held by the insured until the customer is ready to pick it up
You learned that one of the elements of a valid contract is that it involves consideration. in an insurance contract. the consideration that the insurance gives is
A. the commission
B) the premium payment
C the deductible
D) the promise to pay for covered losses.
Retaining the possibility of loss avoiding the chances of loss, and transferring the possibility of loss are all methods of
A preventing loss
B. Obtaining insurance
C. managing risk
D. Eliminating risk
An insurer formed to the sole purpose of providing liability insurance for its policyholders is known as a
A reciprocal insurer
B fraternal benefit society
C risk purchasing group
D risk retention group
in the building and peroneal property coverage form, coverage for pollutant clean up and removal is
A provided as an additional coverage
B excluded
C provided by adding the spoilage endorsement to the form
d Provided is a coverage extension
Makishas Home sustains $10,000 damage when it is struck by lightening. The home is insured under a homeowners policy for 120,000. At a time of loss, the homes replacement cost is $150,000. How much will Makishas homeowners policy pay for this loss ?
A. 7,500
B 90,000
C10,000
D 6,000
A situation or factor that increases the possibility of a loss or increases the probable size of a loss is referred to as
A a speculative risk
B a peril
C a hazard
D a pure risk
Which one of the following covers a carrier for liability for loss to cargo while it is being transported in a truck?
A motor truck cargo policy
B Truckers coverage from
C trip transit policy
D motor carrier coverage form
Which one of the following types of property cannot be covered by a dwelling policy?
A Duplex condominiums
B farm house
C Vacation homes
D Rental home unoccupied by the owner
Which condition in a property policy specifies that the policy may not be transferred by anyone else without the written consent of the insurer?
A mortgagee clause
B Assignment
C Liberalization
D no benefit to Bailee
Because Luis’s house is near a river that has been known to overflow its banks he is more concerned about having flood insurance then his sister Maria, who lives at the top of a hill this is an example of
A estoppel
B consideration
C parole evidence
D adverse selection
A fire causes extensive damage to an insurance agents building and other property. the agents commercial property policy contains the building and personal; property coverage form. Assume there are no coverage extensions which of the following would be covered by the building and persona property coverage form?
A outdoor trees and shrubs
B wooden fences surrounding the Patio area
C outdoor tables and chairs
The type of risk that exists as a consequence of an individuals peroneal actions toward others is
A liability risk
B absolute risk
C property risk
D Speculative risk
Insurance agents are considered to be fiduciaries because they
A are in a position of financial trust, especially regarding the handling of premiums
B are usually paid by commission
C are not allowed to discriminate against any insurance prospect
D are regulated by the state insurance department
Replacement cost minus deprecation is the formula used to calculate
A repair costs
B market value
C actual cash value
D agreed amount
The PDQ insurance company sells insurance over the phone no agents are involved PDQ is
A a direct response company
B an alien insurer
C an Independent company
D a captive insurer An insurance company becomes the legal owner of a damaged auto after taking possession of it this is considered
A liberalization
B salvage
C abandonment
D assignment
t All of the following are duties of the insured following a loss except
A protective property from additional damage
B separate damage from undamaged property
c Inventory lost property
D promptly notify the company
In the homeowners form, additional living costs incurred by the insured because the home is uninhabitable due to a covered loss are
A covered under coverage A
B excluded
C covered if the insured has the additional living expenses endorsement attached to the policy
D covered under coverage D
The homeowners form that provides broad coverage for both the dwelling and personal property is ‘
A The H0-4
B the HO-6
C The H0-2
D the HO-3
The actual cause of a loss is
A a hazard
B A Peril
C an exposure
D a proximate cause
Which of the following statements about the standard mortgage clause is correct?
A The mortgagee may still have protection under the policy even though certain acts by the insured may normally not have been covered
B this applies to movable peroneal property
C the mortgagee has no rights under the policy
D the mortgagee will not have
Which of the following forms provides specials peril coverage for the dwelling but named broad coverage to peroneal property?
A HO-4-
B HO-6
c HO-3
D HO-2
What type of insurance policy only insurers against perils that are specifically listed in the policy?
A special policy
B All risk policy
C Named peril policy
D open peril policy Which one of the following would be considred a personal injury loss under the commercial general liability policy?
A Fraud
B Libel
C Slander ‘
D invasion of privacy A company that is incorporated in a country other then the United States but doing business in the states is known as
A an alien company
B A surplus company
C a domestic company
D a foreign company
Widget Enterprise wants property insurance for a new warehouse it is building widget also wants the policy limit of insurance to gradually increase as the value of the building under construction increases which commercial property coverage form would best fill widget needs?
A Business income coverage form
B Building and personal property coverage form
C Business owner coverage form
D Builders risk reporting form
Which one of the following terms can be defined as a policy provision that omits certain risks from coverage
A conditions
B Exclusions
C insuring agreement
D declaration
Which of the following is not one of the three types of authority by which an agent may act on behalf of the principal?
A implied
B apparent
C express
D vicarious
The nationwide Marine Definitions includes all of the following risk except
A commercial automobile insurance
B Commercial property floaters
C personal floaters
D imports and exports
Under A CPP all of the following statements regarding the cancelation condition are correct except
A any premium refund due must be sent to all insureds
B the condition sets forth the circumstances under which the policy may be canceled
C the first named insured must cancel the policy in writing
D if the insurer cancels a specified number of days notice
A fie that was caused by the insureds negligence burns a neighboring building the owner of the building sues the insured from the insureds standpoint this is an example of
A a first-party loss
B a personal injury loss
C an advertising injury loss
D a liability loss
The insured is a local bank if a covered loss happens the bank must be able to stay open. Which commercial property coverage from provides coverage that will permit the insured to continue in business without interruption following a property damage loss?
A) business income without extra expense coverage form
B building and personal property coverage form
C Fiduciary risk coverage form
D extra expense coverage form
Which of the following best describes vacancy?
A inadequately furnished property wit no residents
B inadequately finished property with residents
C Moderately furnished property with fewer then 10 residents
D fully furnished property with no residents
Both the structure and the contents of a mobile home can be insured by purchasing
A either a mobile home package policy or an H0-2 or HO-3 with the mobile homeowners endorsement
B an unendorsed HO-3
C an Unendorsed DP-3
D a business owners policy
An individual who owns a condominium would cover his property with which of the following policy forms?
A H0-6
B HO-4
C H0-2
D H0-3
Insurance that provides protection coverage for goods being transported from site to site is
A commercial liability insurance
B dwelling insurance
C inland marine Insurance
D homeowners insurance
People most likely to experience loss are also most likely to want insurance this is known as
A risk
B the mortality rate ‘
C underwriting
D adverse selection
Which of the following actions by an insured would not be grounds for the insurance company to void the policy?
A concealment
B misrepresentation
C fraud
‘D representation
Which homeowners endorsement is used to schedule separate coverage for 1 or more of 9 categories of personal property?
A scheduled personal property
B special personal property
C personal property replacement cost
‘D personal property
Which of the following is not eligible to be insured under a dwelling policy?
A Dwelling under construction
B vacation homes
C dwelling with six units
D rental property
Which commercial package property coverage form covers the insureds liability for damage to the property of others in the insureds care custody or control?
A extra expense form ‘B builders risk coverage form
C legal liability coverage form
D all commercial property coverage form provided this coverage
When an insurance company cancels a policy what is the method used to determine the premium due
A pro rate ‘B Flat
C short rate
D premature
An insurer wo meets insurance departments standards and is authorized to do business in the state is called
A an unauthorized insurer
B an admitted insurer
C a foreign insurer
D a surplus insurer
What persona inland marine form covers an insureds personal belongings such as bagging while the insureds is traveling
A flatcar form
B personal effects form
C personal property form
D travel and accident form
Under the equipment breakdown coverage form the definition of breakdown includes
A erasures
B electrical failure
C defects
D leakage