stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
General Lines Exam Flashcards | StudBud
Explore
/
General Lines Exam
General Lines Exam
42 terms
·
StudBud Administration
·
15 plays
Comprehensive Exam over Chapters 1 through 15 in the TX General Lines Property and Casualty course.
Flashcards
42 cards
F
Practice quiz
P
Host live
L
Questions
42
Answers
1
Which of the following is NOT a peril covered under Coverage C in the HO-3 Special Form?
Freezing
Hail
Malicious Mischief
Water Damage
2
While looking at a toy in a manufacturer's warehouse a child cuts her finger, what would cover?
Worker's compensation
Commercial property
Employment practices liability
Commercial general liability
3
Common exclusions with a liability policy would typically include all of the following except:
Damage to property in the insured's care
Damage to property owned by the insured
Injuries or damages caused unintentionally by the insured
Injuries or damages caused intentionally by the insured
4
Which of the following statements about the dwelling basic form (DP-1) is CORRECT?
The DP-1 provides coverage for a gazebo
The policy covers fire and lightning only
The policy is provides broad coverage for contents
The DP-1 is open peril
5
In
most
cases, an injured employee receives payments under workers comp insurance from whom?
Insurance Company
State Department of Employment
Employer
Division of Workers Compensation
6
An insurance company that sells to people that meet specific membership is what kind:
Lloyds of London
Mutual
Fraternal
Stock
7
Who are the three parties to a surety bond?
Insured, Agent, and Beneficiary
Principal, Obligee, and Surety
Principal, Agent, and Surety
Insurance Company, Agent and Policyholder
8
What is the cost of a unit of insurance?
Premium
Reserve
Loss
Rate
9
Bailee's customers insurance is purchased by businesses that:
Sell bailing equipment to boat owners
Store their property in public warehouses
Have customer's property in their possession
Provide bail bonds
10
Which of the following statements regarding the FAIR Plan is TRUE?
Risks can be rejected if located in a high risk area
Primary purpose is to provide property coverage
Provides property and liability coverage
Primarily concerned with property owners in rural areas
11
Marine policy that an owner of goods would purchase to insure a single shipment from OH to CA?
Hull Insurance
Cargo Liability Insurance
Freight Insurance
Trip Transit Insurance
12
In the past XYZ insurance company has allowed agents to bind coverage. The authority given is:
Apparent Authority
Express Authority
Implied Authority
Traditional Authority
13
The insured is looking for what is covered in his policy. What section would he refer to:
Definitions
Insuring Agreement
Declarations
Conditions
14
Which of the following phrases best describes actual cash value?
Original cost + Depreciation = ACV
Original cost - Depreciation = ACV
Replacement cost + Depreciation = ACV
Replacement cost - Depreciation = ACV
15
All of the following are optional property coverage's under the business owners policy EXCEPT:
Money and securities
Mechanical Breakdown
Personal Property off premise
Outdoor Signs
16
What is the
most
coverage for a single-family dwelling under the regular flood program?
Building $250,000 and contents $100,000
Building $35,000 and contents $10,000
Building $250,000 and contents $150,000
Building $300,000 and contents $100,000
17
Best
protects an insured from losses caused by an employee's deceit?
Forgery or alteration
Employee theft
Inside the premises-robbery or safe burglary
Inside the premises-theft of money and securities
18
When a loss occurs, the Causes of Loss special form requires the insurance company to:
Pay for all losses to the insured property
Pay for all losses not specifically excluded by the policy
Pay for decay or deterioration losses
Prove that the insured used defective materials
19
Which one of the following describes the concept of subrogation?
Insured claims the right to sue a 3rd party
Insurer claims the right to collect from the insured
Insurer claims the right to deny the disputed claim
Insurer claims the right to collect from a 3rd party
20
Which dwelling form would provide coverage against damage caused by the freezing of plumbing?
DP-1
DP-2
DP-3
DP-2 and DP-3
21
Payment for losses that can not be precisely measured, are called:
Punitive Damages
Special Damages
General Damages
Spousal Damages
22
Which of the following forms is NOT eligible to be written as part of a commercial package?
Dwelling property coverage forms
Commercial crime coverage forms
Commercial property coverage forms
Boiler and machinery coverage forms
23
Dishonesty on the part of an insured is an example of:
A Peril
Moral Hazard
Morale Hazard
Physical Hazard
24
Comprehensive coverage pays for all of the following damages EXCEPT:
Overturning the auto
Hitting a deer
Explosion
Glass Breakage
25
Commercial endorsements that apply to more than one part of a CPP are called:
Interline
Interpolicy
Inclusion
Provisional
26
What bond is purchased to protect an employer from the actions of dishonest employees?
Surety bond
Performance bond
Corporate bond
Fidelity bond
27
Howard bought a car yesterday for his son, under Howard's automobile policy, this car is:
Owned
Non Owned
Temporary Substitute
Uninsured
28
Which one of the following is NOT a benefit of workers compensation insurance?
Pain and Suffering
Rehabilitation costs
Lost Wages
Medical Expenses
29
Someone breaks into the insured's lot behind his car dealership and steals a customer's auto.
Premises-operations coverage in the CGL coverage form
Liability coverage in the garage coverage form
Garage-keepers coverage in the garage coverage form.
Liability coverage in the business auto coverage form
30
Texas insurance code stipulates the maximum amount of controlled business an agent can write is
50%
75%
25%
10%
31
The business auto coverage form uses symbols to denote, which symbol is the most restrictive?
Symbol 7
Symbol 2
Symbol 9
Symbol 1
32
In legal terms, voluntary relinquishment of a known right is called:
A Withdrawl
A Waiver
Concealment
A Warranty
33
Which of the following businesses would be covered by a business owners (BOP) policy?
Balderston's Rare Books
Hank's Hot Rods
State Street Savings Bank
Johnny's Tavern
34
All of the following constitute the transaction of insurance except?
Purchasing an insurance policy
Receiving insurance commissions
Collecting insurance premiums
Receiving a policy application
35
All commercial package policies must include:
The common policy declarations and policy conditions
5 or mover coverage parts
Commercial Crime Coverage
Commercial Auto Coverage
36
With regard to insurance, risk can be defined as:
uncertainty regarding financial gain
uncertainty regarding loss
certainty regarding financial gain
certainty regarding loss
37
An errors and omissions policy could be issued to cover the following occupations EXCEPT:
Accountants
Architects
Veterinarians
Insurance Agents
38
The retroactive date of a claims-made professional liability policy is which of the following?
The earliest date an event or loss may occur and be eligible
The date the policy expires
The date that no claims can be submitted
The inception date of the policy
39
Actual loss of business income payments by an insurer may include the following EXCEPT:
Payroll expenses
Net income that would have been earned
Continuing normal operation expenses.
Amount required to repair property damage
40
Which one of the following is NOT an element of a valid contract:
Intent
Consideration
Competent Parties
Legal Purpose
41
Builders risk coverage written with the basic causes of loss form will cover loss caused by:
Collapse
Falling Objects
Hail
Earthquake
42
Credit card fraud is covered under a homeowners policy to a maximum of what amount?
$500.00
$2,500.00
$100.00
$1,000.00
