Negligence may be defined as _____.

Failure to use reasonable and prudent care

Which of the following persons would be required to hold a producer license?

A nonresident agent who negotiates insurance contracts

All of the following actions may be grounds for revocation or nonrenewal of a producer's license EXCEPT:

Participating in controlled business

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Project Pass: General Exam 2

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Answers

1
An additional loss that results from a direct loss of property is called a(n) _____.
Liability loss
Proximate loss
Punitive loss
Indirect loss
2
Supplementary payments under the personal auto policy include all of the following EXCEPT:
Loss of earnings
Defense costs
Unlimited cost of bail bonds
Costs of appeal bonds
3
Negligence may be defined as _____.
A situation that creates a probability of loss
Inability to meet the burden of proof
Failure to use reasonable and prudent care
A latent defect in property
4
What is the main distinction between a hires auto and a nonowned auto?
The amount of premium
Whether a payment is made for the use of the auto
Who owns the auto
The length of time the insured uses the auto
5
DP-3 pays replacement cost value as long as the house is insured for at least ____ of its value on the date of loss.
75%
100%
80%
70%
6
Which of the following persons would be required to hold a producer license?
An administrative assistant who takes messages related to claims
A salaried employee who creates insurance advertisements
A director of the insurer who administers employee benefits
A nonresident agent who negotiates insurance contracts
7
Which of the following dwelling coverage forms would pay replacement for the dwelling?
DP-1
All dwelling property coverage forms
DP-3 only
DP-2 and DP-3
8
All of the following actions may be grounds for revocation or nonrenewal of a producer's license EXCEPT:
Failure to complete continuing education by the due date
Felony convictions
Misrepresentation of policy terms to sell more policies
Participating in controlled business
9
In personal auto policies, the term "you" refers to _____.
Any person reading the policy
The insurer
Any person injured in a covered accident
The named insured
10
A liability policy has split limits of 25/50/30. What is the maximum amount payable for damage to a person's property?
$105,000
$30,000
$25,000
$50,000

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