An insured may cancel a personal auto policy by taking which of the following actions?

Giving a written notice to theinsurance company

What is the definition of Proximate Cause:

The cause without which a given loss would not have occurred

Who can a licensed agent share commissions with legally?

Another licensed agent in the same field

Which of the following vehicles is considered a covered auto under a Personal Auto Policy?

A 2nd car bought a week ago but not yet reported to insurer

An insured is required to take which of the following actions immediately after an occurrence?

Give notice of claim to the insurance company

Which of the following best describes the term Agent?

A licensed individual who solicits an Insurance contract

How are agent collected premiums handled?

In a separate fiduciary account, then deducts commision

Lester is driving Carver’s car. Which of the following is CORRECT if Lester has accident?

Carver’s policy is primary and Lester’s policy is excess

To be defined as a burglary, an event must include which of the following conditions?

Visible signs of forced entry or exit

On an HO-3 Form, if an insured and an insurer cannot agree on the amount of a loss, what next?

An appraisal of the loss is obtained

What best describes the purpose of TRIA?

An act to fund coverage for losses due to acts of terrorism

In the event of a loss, an insured MUST submit to the insurer all of the information EXCEPT:

An appraisal of the damaged property

Which of he following statements is CORRECT regarding Proof of Loss?

It is a sworn statement by the insured

Under an HO policy, an insured is required to take all these actions in a covered loss EXCEPT:

Hire an appraiser to determine the amount of loss

Which of the following statements about amortgagee’s rights under the DP-1 is INCORRECT?

The mortgagee may abandon theinsured property to the insurer

Which of the following BEST describes the term “abandonment” as used in property insurance?

An insured’s refusal to retain property after a partial loss

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Answers

1
A DP-2 covers a home for $100k. A Flood causes $1k damage to contents. How much would be paid?
$800
$1000
$0
$900
2
An insured may cancel a personal auto policy by taking which of the following actions?
Giving a written notice to theinsurance company
Waiting until the policy expiration date
Informing the producer by telephone
Paying the insurance company any past duepremiums
3
HO-5 covers contents on ____peril format.
Broad
Named
Basic
Open
4
An applicant’s statement that the property to be insured has an operable sprinkler system is:
A representation
An affidavit
A warranty
Agency binding authority
5
What is the definition of Proximate Cause:
The cause without which a given loss would not have occurred
This question the most detailed choice is the right answer.
A cause of potential loss
Works with the risk involved in the hazard of liability
6
The Commissioner of Insurance can demand to inspect an Insurer’s records:
Once every 5 years
With 10 days notice
After mailing a written request
Immediately
7
Premium Costs for standard Workers Compensation insurance are paid by:
Employees only
Employers and employees jointly
Employers only
The workers compensation board
8
What's the LEAST compehensive form to provide coverage for a deer damaging your house?
HO-5
HO-2
HO-3
HO-1
9
How long from the date of an accident will Medical Payments coverage pay out?
4 years
3 years
1 year
6 years
10
Who can a licensed agent share commissions with legally?
Unlicensed personal security
Unlicensed agent
Another licensed agent in the same field
Family
11
Which of the following will cover a contractor’s employees for injuries sustained on the job?
Owners and Contractors Protective Liability
Premises and Operations Liability
Worker’s Compensation
Commercial General Liability
12
Under a homeowner’s policy a trampoline or swimming pool is best classified as:
A floater
Law of large numbers
Speculative risk
Attractive Nuisance
13
An insured borrows and accidentally damages his neighbor's mower. Which coverage would pay out?
Personal Property
Personal Liability
Loss of Use
Dwelling
14
Which of the following vehicles is considered a covered auto under a Personal Auto Policy?
A company car provided to the insured by an employer
A vehicle used to transport passengers with Uber
A 2nd car bought a week ago but not yet reported to insurer
The insured’s all-terrain vehicle with three wheels
15
A auto policy provides coverage for all of the following drivers of an insured car EXCEPT:
The insured’s spouse
A thief who steals the car
A neighbor who uses the car with the insured’s permission
The insured’s child who attends school in another state
16
When an insurer pays a non-at fault insured for a claim, then goes after the at fault party:
Subrogation
Assignment
Pro Rate Liability
Appraisal
17
A tornado destroys a barn, and then lit on fire by a lantern inside, what's the proximate cause
Fire
Tornado
Collapse
Smoke
18
An applicants statement, assumed to be true during application, is:
A claim
A Warranty
A Policy Clause
A Representation
19
Due to Omar’s MVR he can't get insurance with an insurer. What does Iowa provide to help Omar?
Iowa Application Insurance Protocol
Iowa State Plan
Iowa Automobile Insurance Plan
Iowa Auto Indemnity Plan
20
An insured is required to take which of the following actions immediately after an occurrence?
Notify an independent adjuster
Obtain a written report from the policydepartment
Request a subrogation statement from the producer
Give notice of claim to the insurance company
21
In Ohio, Nationwide is considered to be a _____ Insurer.
Alien
Illegal Alien
Foreign
Domestic
22
Which of the following best describes the term Agent?
A licensed bank officer who sells and educates onfiduciaries
A licensed individual who solicits an Insurance contract
A person who represents celebrities and sports athletes
Aperson who shops for an insurance policy for you
23
How are agent collected premiums handled?
Deposited into their checking account, then pays insurer
The agent does not collect any premiums, a 3rd party does
Deposited into their checking or savings account
In a separate fiduciary account, then deducts commision
24
Lester is driving Carver’s car. Which of the following is CORRECT if Lester has accident?
Lester’s policy only will pay for any damages
Carver’s policy is primary and Lester’s policy is excess
Lester’s policy is primary and Carver’s policy is excess
Carver’s policy only will pay for any damages
25
ABC Co. has an automatic sprinkler system installed in the building this is known as
Transfer Risk Management
Reduction Risk Management
Avoidance Risk Management
Retention Risk Management
26
To be defined as a burglary, an event must include which of the following conditions?
Visible signs of forced entry or exit
Mysterious disappearance
Fear or threat of violence
Bodily Injury
27
The attempt to restore an insured to previous financial condition before loss is described as:
Self-Insurance
Indemnification
Coinsurance
Subrogation
28
On an HO-3 Form, if an insured and an insurer cannot agree on the amount of a loss, what next?
Refer the dispute to an independent public adjuster
Submit the dispute to a small claims court
An appraisal of the loss is obtained
Demand an inquiry by the state Insurance Department
29
A sudden and unexpected event that is identifiable as to time and place is best described as?
An Occurance
A Liability
An Accident
Negligence
30
Which of the following refers to continuous or repeated exposure to conditions that cause loss?
An accident
An occurrence
An event
A condition
31
An insurance company may elect to pay the insured’s claim a take possession of the vehicle:
Right of Salvage
Deductible
Warranty
Subrogation
32
How many hours of continuing education are required for a licensed agent?
20
58
14
36
33
What best describes the purpose of TRIA?
A type of war coverage
An act introduced by congress to respond to Pearl Harbor
The Reactionary Incident Act
An act to fund coverage for losses due to acts of terrorism
34
The state of Iowa’s minimum coverage for property damage liability under an auto policy is:
$25,000
$20,000
$10,000
$15,000
35
A bank says that a NI buy HO coverage from only a company that the bank represents, this is:
Coercion
Intimidation
Unfair Discrimination
Defamation
36
What is the time frame for a hearing to be held after a Cease and Desist Order is issued?
15 days
10 days
30 days
60 days
37
The right of an insurer to pursue legal actionagainst the at-fault party, post claim, is called
Subrogation
Action against the company
Assignment
Other insurance
38
In the event of a loss, an insured MUST submit to the insurer all of the information EXCEPT:
A Notice of Claim
An appraisal of the damaged property
A list of any known witnesses
A Proof of Loss statement if requested
39
If a NI intentionally conceals a material fact about an auto to be covered, coverage may be:
Restricted
Suspended
Reduced
Voided
40
Of the 36 hours of continuing education, how many cover the topic of Ethics?
6 hours
2 hours
3 hours
15 hours
41
How many days must the Bureau of Ins. be notified that an Agent has been convicted of a felony
60 days
30 days
45 days
90 days
42
Which of the following claims may be covered under Bodily Injury Liability coverage?
Suicide
Physical impairment
False arrest
Libel
43
A discount of premium not specified in the policy is known as:
Rebating
Good faith
Unfair discrimination
False advertisement
44
Which of the following sources may be used to provide property insurability information?
Lie Detector Tests
Checking Account Statements
Police Records
Physical Inspection
45
Under a Personal Property Floater, a loss discovered when it occurs:
In the United States and Canada only
In the United States only
Anywhere in the world
In the insured’s house only
46
Which of he following statements is CORRECT regarding Proof of Loss?
It is a sworn statement by the insured
It is not necessary in cases of a total loss
It is always prepared by an attorney
The adjuster on the loss may sign it
47
Under an HO policy, an insured is required to take all these actions in a covered loss EXCEPT:
Hire an appraiser to determine the amount of loss
Protect the property from further loss
Notify the police if the loss is the result of theft
Give prompt notice to the insurer or its producer
48
When the NI and the insurer cannot agree regarding the settlement of a claim, this is used:
Arbitration
Rock-Paper-Scissors
Co-Insurance
Negotiation
49
Which of the following statements about amortgagee’s rights under the DP-1 is INCORRECT?
No act by the insured will jeopardize the mort’s rights
The mort may file a Proof of Loss if the insured fails to
The mortgagee may abandon theinsured property to the insurer
Mort is entitled to receive prior notice of a cancellation
50
Which of the following BEST describes the term “abandonment” as used in property insurance?
An insurer’s refusal to pay a claim
An insurer’s refusal to have damaged property appraised
An insured’s refusal to retain property after a partial loss
An insurer’s demand for reimbursement from a third party
51
Bob has 50/100 UIMBIand is hit by Tom who has 25/50 BI. Bob’s policy would pay when he suffers:
$20,000 in bodily injury
$25,000in bodily injury
$18,000 in bodily injury
$28,000 in bodily injury
52
How is a 50 HP outboard motor boat covered for Physical Damage, when used for pleasure use?
Boatowners Policy
Homeowners Policy
Yacht Policy
Dwelling Policy
53
The primary obligation of an insurer is to:
Pay the claims covered under the policy
Prepare an inventory after a loss
Provide a financial statement with each policy
Make inspections and surveys of insured property
54
Which of the following is listed in the qualifications of the licensing process?
Be at least 21 yrs of age
At least 3 yrs insurance background
Be competent and of good character
Have a some college experience
55
The limits of liability are found in which ofthe following sections of a casualty policy?
Conditions
Declarations
Insuring Agreement
Definitions
56
Which vehicle is considered a temporary substitute under a Personal Auto policy?
An auto purchased to replace a previouslyowned vehicle
An auto rented by an insured when on vacation
A rented auto when the insured’s car is being repaired
Aneighbor’s pickup truck borrowed by an insured
57
How many days does an agent have to notify the Bureau of Ins. of a name and/or address change?
30 days
15 days
60 days
40 days
58
Which of the following would be included under the definition of a personal injury?
A customer slips and sues the store for pain and suffering
A tenant evicted and sues the landlord for wrongful eviction
An employee injured lifting a heavy carton sues his employer
A fired individual sues her ex-employer for unemployment pay
59
Which of the following is used to broaden coverage and increase limits of underlying policies?
Commercial General Liability
Excess Liability
Owners and Contractors Protective Liability
Umbrella Liability
60
The State Insurance Division can do all of the following EXCEPT:
Write laws
Revoke or suspend licenses
Regulate insurance
License insurers
61
Vandals cut down a tree worth $1500 from the yard of a DP-2 NI. The max the NI can receive is:
$1500
$0
$500
$1000
62
Where would you find the insurer’s promise of protection?
Exclusions
Insuring Agreement
Declarations
Conditions
63
Which of the following sections of an insurance policy would explain the term “auto"?
Definitions
Insuring agreement
Declarations
Obligations of the insurance company
64
The principle of indemnity is designed to avoid:
Overpayment of a claim
Two policies sharing payment for a loss
A coinsurance clause of less than 80%
The return of earned premium
65
Which of the following Homeowner’s coverage does NOT generally contain a deductible?
Other Structure
Liability
Personal Property
Dwelling
66
An insurance binder is best described as:
A rate manual supplied by one of the rating organizations
A temporary agreement to pay a claim pendingfinal settlement
A large bound volume of rules, rates and forms
Temporary short-term evidence ofcoverage
67
All of the following options are examples of insurable interest EXCEPT:
The uncle named on a vehicle's title, but isn't a driver
A insured's improvements she has made to a leased building
An insured's interest in stuff that she will someday inherit
A person’s interest in property she just purchased
68
An insurance company that is owned by policyholders is known as?
Mutual
Fraternal Benefits Society
Reciprocal
Stock
69
A person is acting negligently if they:
Workat home
Buy a sports car
Fail to act prudently
Spend more than they earn
70
The following situations would not be covered under Other Than Collision EXCEPT:
Vandals break your windows with a bat and key your car
Your car rolls over
Med bill is $5k to set your broken wrist after the accident
You hit a car
71
Which of the following phrases BEST defines a hazard?
An unexpected loss
The uncertainty of a loss
The cause of a loss
A condition that increases the chance of a loss
72
An insured would expect to find which piece of information in the Insuring Agreement section?
The obligations of the insured in the event of a loss
The insurers promise to pay on behalf of the insured
Exclusions regarding certain uses of the auto
Bodily Injury limits of liability
73
An agent tells a client that another insurer’s product is inferior without proof, this is:
Coercion
Intimidation
Defamation
Unfair discrimination
74
A rented property becomes unlivable due to a covered loss, what protects the landlords rent
Loss of Use
Fair Living Expenses
Fair Credit Act
Fair Rental Value
75
Which of the following is covered by Broad Form perils but is not covered by the Basic Form?
Riot
Vandalism
Weight of ice and snow
Sinkhole collapse
76
A binder lists all of the following EXCEPT:
Amount of coverage
Premium amount
Perils covered
Name of the Insurer
77
Of the following, which are the elements to determine negligence?
Approximate Cause, Legal Duty, Standard of Care, & Liability
Legal Duty, Standard of Care, Loss and Approximate Cause
Duty, Standard of Care, Proximate Cause and Loss
Proximate Cause , Actual loss, Liability Standards and Care
78
Pro-rate cancellation occurs when:
A policy is non-renewed
An insurer cancels a policy at any time
A mortgage has been satisfied
An insured cancels a policy at inception
79
Which following terms can be defined as a provision that omits certain risks from coverage?
Insuring Agreement
Declarations
Exclusions
Conditions
80
The National Flood Insurance Program covers for losses by all of the following EXCEPT:
Runoff from heavy rain
Mudslides
Water-Main breakage
Overflow of tidal waters
81
A home that contains personal property but no one resides within the home is an example of:
Abandonded
Haunted
Vacant
Un-Occupied
82
The Personal Liability section of a Homeowner’spolicy covers which of the following options?
Bodily injury caused by thepersonal activities of an insured
Damage to an insured’s propery caused by avisitor
Bodily injury to a resident caused by aneighbor’s dog
Property damage caused by war
83
Actual Cash Value is most often defined as which of the following options?
Appraised value
Fair market value plus appreciation
Replacement cost less depreciation
Amount paid less depreciation
84
What part of DICE explains the process of resolving a disputed loss between insurer and insured
Insuring Agreement
Declarations
Exclusions
Conditions
85
Insurance is designed to provide protection against what type of risk?
Sure
Speculative
Pure
Physical
86
Inland Marine insurance is commonly used to insure all of the following items EXCEPT:
Stamps
Automobiles
Camera Equipment
Jewelry

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