For Uninsured Motorist Coverage, which statement is true?

Does not provide protection where Highway Victims Indemnity funds operate

Which of the following TWO (2) main purposes are those of business insurance?

Protect against losses and to insure the continuing operation of business

Which of the following activities would require the Ridesharing endorsement in order to have coverage?

The Insured is using the app to select a pickup

What statement is true of material facts?

They can affect the decision of an underwriter in accepting a risk.

In business interruption, the earning approach is most effective for a business that will:

not be affected by a loss once it reopens.

Brokers must have 2 bank accounts for the business. Which accounts must they have?

Trust account & operating account

An automobile with attached trailer is considered to be one vehicle in which coverages?

Third Party Liability and Accident Benefits

How long does an insurer have to pay after an automobile accident has occurred?

60 days after proof of loss is received

Define personal injury.

Injury arising out of malicious prosecution

In Additional Agreements, Insurer agrees to waive subrogation against which of the following?

Anyone who is driving the automobile with the insured’s consent

In a Commercial General Liability (CGL) policy, what is the aggregate limit?

Max total amount paid in actual claims during a policy year

How is a farm policy different from homeowners policies when concerned with liability coverage?

Liability is separated into two parts.

Business interruption insurance policies under the profits approach would allow the company to:

Recover some loss of income even after the business reopens

How long an insured has to notify insurer about a newly acquired automobile:

14 days from the vehicle delivery date

Why would an underwriter add a Deletion of Glass endorsement to an automobile policy?

Insured has made frequent glass claims in the past

Under Loss or Damage to the Insured Automobile coverage, which theft losses would be EXCLUDED?

Theft of the automobile brought about by fraud

The Loss of or Damage to the Insured Automobile section of the Owner’s Policy has what purpose?

Coverage against direct & accidental loss to the insured vehicle

Which legislation documents the basis of legal liability concerning TP liability losses with Automobiles?

Motor Vehicle Act or Highway Traffic Act

What is a stock company?

A company with the main purpose of making a profit for shareholders

Extra Expense coverage in business interruption insurance provides:

Additional expenses of continuing in business even after a loss

What is one of the best defenses against fraud?

Documenting each claim carefully

studbud

OTL Practice Exam #2

38 termsStudBud Administration965 plays

Imported from external platform

Flashcards38 cardsFPractice quizPHost liveL

Questions 38

Answers

1
Insureds may employ an adjuster to represent their interests during a claim:
Staff Adjusters
Independent Adjusters
Telephone Adjusters
Public Adjusters
2
For Uninsured Motorist Coverage, which statement is true?
Is a part of the Accident Benefits section of the automobile policy
Does not provide protection where Highway Victims Indemnity funds operate
No deductible is applied to property damage losses
Allows an insured to recover up to the limit of his own policy
3
Which of the following TWO (2) main purposes are those of business insurance?
Eliminate hazards & perils facing business & encourage market penetration
Protect against losses and to insure the continuing operation of business
Secure credit for the business and transfer risk
Provide a risk financing option and protect the profits of the business
4
Which of the following activities would require the Ridesharing endorsement in order to have coverage?
The insured stops for a coffee
The Insured is using the app to select a pickup
The paying passenger has exited the vehicle
The insured leaves their house to go to work
5
What statement is true of material facts?
They are not important in insurance.
They can affect the decision of an underwriter in accepting a risk.
Only the broker can decide whether facts are material.
Only courts can determine if facts are material.
6
In business interruption, the earning approach is most effective for a business that will:
not be affected by a reduction in profits.
not be affected by a loss once it reopens.
continue to be affected by a loss for a few months after it reopens.
continue to be affected by a loss for several years after it reopens.
7
Brokers must have 2 bank accounts for the business. Which accounts must they have?
Trust account & operating account
Operating account & Contingent account
Trust account & contingent account
Savings Account & Contingent account
8
An automobile with attached trailer is considered to be one vehicle in which coverages?
Collision and Comprehensive
Third Party Liability and Accident Benefits
Collision and Specified Perils
Uninsured Motorist and Accident Benefits
9
How long does an insurer have to pay after an automobile accident has occurred?
60 days after proof of loss is received
30 days after proof of loss is received
90 days after proof of loss is received
120 days after proof of loss is received
10
Which is putting someone back into the same financial position they were in prior to loss?
Consideration
Chance
Indemnity
Insurance
11
Define personal injury.
Minor physical injury to the named insured
Injury caused by environmental impairment
Injury arising out of malicious prosecution
A cognitive injury suffered by the named insured
12
In Additional Agreements, Insurer agrees to waive subrogation against which of the following?
Anyone who is driving the automobile with the insured’s consent
Anyone w/ care, custody, control of the auto for repair purposes
A parking garage that is storing the automobile
Anyone, other than the insured, who breached a policy condition
13
Which of the following types of bailees would dry cleaners be included under?
Licensed bailee
Gratuitous bailee
Trusted bailee
Bailee for hire
14
Where would an insured locate the items insured when reviewing a commercial property policy?
Policy wordings
Statutory Conditions
Coinsurance provision
Declaration page
15
Which policy section includes the amounts insured?
Insuring Agreements
Certificate
Declarations
Policy Conditions
16
In a Commercial General Liability (CGL) policy, what is the aggregate limit?
Additional coverage amt available for a loss occurrence over policy limit
Total amt payable for each loss occurrence over self-insured retention
Amount available for each loss occurrence during the policy term
Max total amount paid in actual claims during a policy year
17
Of the following documents, which must be approved by the Superintendent of Insurance?
Notice of loss
Proof of Loss
Claim Invoice
Application Form
18
Coverage applies under the automobile policy in which of the following locations?
Canada and Mexico
Canada and the United States
Canada, the United States, and Mexico
Canada, Europe, and South America
19
If an insurer cancels a policy, how is the amount owing or refund calculated?
On a short rate basis
Based on Bob's service fee
Based on daily interest rates
On a pro rata basis
20
How is a farm policy different from homeowners policies when concerned with liability coverage?
Liability for insured’s farming exposure is insured on separate policy
Voluntary Medical Payments extension is excluded under a farm policy.
Tenants’ Legal Liability coverage is excluded under a farm policy.
Liability is separated into two parts.
21
Business interruption insurance policies under the profits approach would allow the company to:
Continue to operate in spite of the loss
Pay for advertising after the business is back in operation
Recover loss of income up until the business opened again
Recover some loss of income even after the business reopens
22
How long an insured has to notify insurer about a newly acquired automobile:
7 days from the vehicle delivery date
14 days from the vehicle purchase date
14 days from the vehicle delivery date
7 days from the vehicle purchase date
23
Medical, Rehab, & Funeral Expenses in the AB section are available how many yrs after accident?
1 Year
3 Years
2 Years
4 Years
24
Why would an underwriter add a Deletion of Glass endorsement to an automobile policy?
Vehicle would be too expensive to repair if there was a future glass claim
Insured has had multiple glass claims under property insurance
Insured has made frequent glass claims in the past
Vehicle is poorly maintained and the underwriter wants to cancel the policy
25
Which of the following types of exposures are usually EXCLUDED under cyber risk policies?
Lost intellectual property
Costs to fix and restore data
Unauthorized breaches of security for extortion
Ransom or extortion payments
26
Of the following, which would most likely require professional liability insurance coverage?
Retail store manager
Building inspector
Office manager
Construction foreman
27
Under Loss or Damage to the Insured Automobile coverage, which theft losses would be EXCLUDED?
Attempted theft of the entire automobile
Theft of the entire automobile by an unknown party
Theft of the automobile brought about by fraud
Attempted theft of the windshield wipers from the automobile
28
For a broker’s business, which method of locating prospective clients is the most important?
Walk-ins
Referrals
Advertising
Online marketing
29
Gives higher limits on per occurrence basis - same terms/conditions as underlying insurance
Professional Liability Policy
Umbrella Policy
Excess Policy
Commercial General Liability Policy
30
The Loss of or Damage to the Insured Automobile section of the Owner’s Policy has what purpose?
Coverage against direct & accidental loss to the insured vehicle
Option to purchase coverage for vehicle wear and tear
The option to reduce their Third Party Liability coverage limit
Coverage for items not permanently attached to vehicle
31
Under seasonal dwelling, which coverage is EXCLUDED but could be available as an endorsement?
Impact by a land vehicle
Hail
Glass
Riot
32
Which refers to the rules, regulations and definitions which govern every automobile contract?
Prescribed Conditions
Definitions and Conditions
Statutory Conditions
Rules and Conditions
33
Which legislation documents the basis of legal liability concerning TP liability losses with Automobiles?
Insurance Act
Insurance Companies Act
Motor Vehicle Act or Highway Traffic Act
Service New Brunswick Act
34
Who typically fills out an automobile insurance application in practice?
Potential client
Underwriter
Broker
Legal representative
35
What is a stock company?
A company that requires no capitalization
A company with the main purpose of making a profit for shareholders
A company owned by its members
A company that has extensive engineering and training facilities
36
Extra Expense coverage in business interruption insurance provides:
Additional expenses of continuing in business even after a loss
Expenses over and above those described in the policy
Necessary coverage where the profits form is used
Necessary coverage where the gross earnings form is used
37
Which word describes: unlawful removal of property involving visible forcible entry?
Robbery
Burglary
Larceny
Theft
38
What is one of the best defenses against fraud?
Documenting each claim carefully
Denying all questionable claims
Appointing an independent adjuster
Appointing a public adjuster

OTL Practice Exam #2 Flashcards | StudBud