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Final Exam A
Final Exam A
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1
Under a basic Building and Personal Property Form (BPP), loss valuation is based on which of the following?
Replacement Cost
ACV
Market Value
Original Cost
2
Read carefully
$2,400
$1,200
$1,600
$1,700
3
Which of the following statements is TRUE regarding loss reports?
They contain the loss date
Neither a nor b are true
Both a & b are true
They contain the premium amount
4
Which answers is correct
Last Clear Chance
Contributory Negligence
Assumption of Risk
Intervening Cause
5
A sudden, unintended, and unexpected event is known as
A warranty
An occurrence
An accident
Negligence
6
A tortfeasor committing a tort would be what type of claim?
Liability
Commercial
Vicarious
Property
7
Floater" means:
Off Premises Liability
Part of Parole Evidence Rule
Ocean Marine Coverage
Where ever it may be
8
Which ofthe following statements is true abou'"Additional Coverages"
Prevent catastrophic claims
Eliminate small claims
Prevent under insurance
Allow the insured to ignore physical hazards
9
Subrogation may follow which of the following events?
An insured causes damage to her own goods
Forces of nature damage the insured's property
An insured collects from her company for damage caused by a third party
Firefighters damage the insured's property while putting out a fire
10
Which answers is correct
A Messenger
A Watchperson
an Employee
A Custodian
11
Which answers is correct
Comprehensive Personal Liability
Malpractice Insurance
General Liability Insurance
Non-medical Brrors and Omissions
12
In automobile insurance, Additional (Supplementary) Payments refer to which of the following?
received by the insured directly from the person who caused the loss
Payments made by the insurance company for the insured's
Payments made by the insured for damages exceeding the policy limits
Payment for defense and other expenses beyond the limits of liability
13
Which answers is correct
$19,750
$20,000
$9,545
$12,250
14
A dead tree next to a home is which type of hazard?
Physical
Morale
Proximate
Moral
15
Under the FCRA (Fair Credit Reporting Act), how long does a bankruptcy stay on record?
10 years
7 years
Forever
5years
16
The standard limit for Section Il, Coverage E of a Homeowners Form is
$1,000
$100,000
$1,000,000
$50,000
17
A claims made version of a Commercial General Liability (CGL) policy includes all of the following EXCEPT;
Basic Extended Reporting Period
Host Liquor Liability
A Retroactive Date
Laser Beam Endorsement
18
Get a pencil and paper
10,000
$7,500
$5,000
15,000
19
Which answers is correct
Part A - Property Damage Liability
Part B - Medical Payments
Part D - Other Than Collision
Part D - Collision
20
Which answer is correct
Extra Expense
Loss of Rent
Open Perils
Contingent Gross Barings
21
A Pro Rata Liability Condition is included in an insurance policy to deal with the exposure / problem of
Inadequate Coverages
Conditional Coverages
Excessive Policies
Duplicate Policies
22
Someone breaks down the door to a store and steals merchandise. This loss relates to the peril of
Burglary
Barratry
Robbery
Embezzlement
23
As a condition of automobile coverage, the insured is required to do which of the following in the event of an accident?
Report the accident to the state insurance department
Report the accident to the state motor vehicle department
Notify the insurance company as soon as practical
Notify the police department as soon as possible
24
Which of the following would not be covered under an unendorsed Jewelers Block Inland Marine form?
Money stolen from the insured's locked safe
Jewelry while being transported by U.S. Registered Mail
Jewelry stolen from the insured's locked safe
A customer's ring damaged while in the insured's care, custody and control
25
Which of the following best describes the concept of risk?
Amount of loss
Result of loss
Cause of loss
Uncertainty of loss
26
Which answers is correct
Subrogation
Arbitration
Proximate Cause
Elimination
27
Section II of any Homeowner policy covers which of the following?
Damage to an insured's property caused by a visitor
Bodily injury to a resident caused by a neighbor's dog
Bodily injury or property damage to others caused by activities
Bodily injury or property damage caused by war
28
A person may be considered negligent if he/she
fails to do what a reasonable person would do
assists another person in distress to the best of their ability
commits a deliberate act that injures another person
injures another person even though they acted prudently
29
The standard limit for Section II, Coverage E of a Homeowners For is
$100,000
$50,000
$1,000
$1,000,000
30
The earliest date that an event can happen and be covered by the Claims-Made Commercial General Liability (CGL) form is
the policy effective date
the retrospective date
the retroactive date
during the five year Midi-Tail
31
Which answers is correct
Coverage applies to persons on the business premises while taking part in
Coverage applies to medical expenses incurred within one year
Coverage applies only if the insured is legally liable for damages
Coverage applies to all necéssary medical expenses incurred within 3 years
32
Which answers is correct
$100 per day
$200 per day
$250 per day
$150 per day
33
Which answers is correct
$-1,000
$800
$500
$200
34
Which answers is correct
Comprehensive Personal Liability
General Liability Insurance
Malpractice Insurance
You-medical Errors and Omissions
35
Which answers is correct
Extended Coverage Endorsement
Personal Articles Floater
Homeowners form
Personal Property Floater
36
Which answers is correct
Cover the loss
Not cover the loss, since acts by employees are not covered
Not cover the loss, since only loss of cash is covered
Not cover the loss, since daylight burglaries are not covered
37
The definition of bodily injury includes which of the following? l. Death II. Slander III. Pain and Suffering
II and III only
I and III only
I and II only
I , II, and III
38
Which answers is correct
Elimination
Subrogation
Proximate Cause
Arbitration
39
The premium charged for a standard Workers Compensation policy is based primarily on a company's (insured's):
gross sales
gross payroll
employee registration
gross federal tax
40
Under the terms of a property policy, an insurance company is obligated to
Keep records of covered property
Pay covered losses
Ensure that covered property is safe
Ensure that the hazard remains the same
41
Homeowner's policies provide liability coverage for which of the following?
Bodily Injury only
Property Damage and Bodily Injury
Bodily Injury and Personal Injury
Property Damage only
42
Which answers is correct
Arbitration
Reciprocity
Subrogation
Matticulation
43
Which answers is correct
Premises Loss
Products and Completed Operations Loss
Contractual Liability Loss
Personal Injury Loss
44
A deductible usually applies to which of the following automobile policy coverages?
Property Damage Liability
Medical Payments
Bodily Injury Liability
Physical Damage
45
Which of the following is an excluded peril under a Homeowners fom?
Military Action
Smoke
Civil Commotion
Lightning
46
Which answers is correct
20%
100%
80%
40%
47
Which of the following is an Unfair Claims practice?
Not responding in a timely manner to customer communications.
Not having procedures for prompt claim handling
Requiring a claimant to sue before making claim payments
All are Unfair Claims practices
48
All of the following are requirements to become a licensed resident agent except;
Complete a pre-licensing course
Reside in Georgia at least 6 months of the year
U.S. citizenship
Good moral character
49
Which answers is correct
HO-8
HO-3
HO-5
HO-2
50
Which answers is correct
Host Liquor Liability
Extended Liquor Liability Endorsement
Liquor Liability Coverage Form
Excess Liquor Liability
51
Which answers is correct
$5,000
$1,000
$500
$10,000
52
The earliest date that an event can happen and be covered by the Claims-Made Commercial General Liability (CGL) form is
the retroactive date
the policy effective date
during the five year Midi-Tail
the retrospective date
53
Which of the following would require a change on an insured's Homeowner policy?
The birth of a child
A change in address
A change in occupation
The purchase of a second car
54
Which of the following insurance policy provisions best illustrates the principle of indemnity?
Pro Rata
Liberalization
Inspections and Audits
Cancellation
55
A Products and Completed Operations liability sub-line excludes coverage for which of the following?
Recall of products
Damage caused by a defective product
A vendor's liability for the products of others
Damage occuring after possession of the product has left the insured
56
Which of these statements is true about the Automobile Insurance Plan (AIP)?
The insured picks an insurer to insure their auto
A number of insurers share the losses incurred by a specific insured
program designates an insurance company as the insurer of specific insureds
The insurance agent designates the insurance company of a specific insured
57
One purpose of a deductible is to
Allow the insured to ignore physical hazards
Prevent under insurance
Prevent catastrophic claims
Eliminate small claims
58
All of the following are fair under the Pair Credit Reporting Act EXCEPT,
Insurers are to provide applicants a copy of their credit report if used
A mortgage loan of $200,000 will remain on a credit report forever
If insurers take adverse action, applicants must be given the credit
Data on a standard car loan remains on a credit report for seven years
59
Losses caused by all the following are covered under the National Flood Insurance Program (NFIP) EXCEPT;
Mudslides and mudflows
Rapid accumulation of surface waters
Sewer backup
Overflow of tidal waters
60
Which answers is correct
90 days
30 days
60 days
120 days
61
The conditions section of a Commercial Inland Marine form specifies which of the following?
The perils covered
The insurer's responsibilities
The policy duration
The insured's address
62
The best example of the indemnity principle being upheld is:
Matriculation
Arbitration
Reciprocity
Subrogation
63
Which answers is correct
Representation
None of the Above
Concealment
Warranty
64
The insurance commissioner in the State of Georgia is elected for a term of ___ years
Seven
Two
Four
Six
65
An HO-2 form sets special limits on all of the following items EXCEPT;
Jewelry
Boats
Television sets
Money
66
All of the following make a property insurance policy an indemnity contract except;
Actual Cash Value
Subrogation
Liberalization
Insurable Interest
67
In property insurance, insurable interest is measured at
time of loss
time of application
inception of policy
time of premium payment
68
Loss of Consortium and Pain & Suffering are what type of damages?
Compensatory - Specific
Compensatory - General
Punitive
Compensatory - Special
69
An unfair adjuster practice would be
Reviewing witness statements
Determining liability
Speaking to a represented claimant
Obtaining a police report
70
A Building and Personal Property Form (BPP) includes coverage for buildings, business personal property, and ___.
Scheduled Outdoor Structures
Theft
Personal Property of Others
Contents
71
In Ocean Marine insurance, when cargo is sacrificed to save the ship, this loss is referred to as a/an
General Average
Particular Average
An Inchmaree Peril
Total Constructive Loss
72
Which of the following would not be covered under an HO-3 form?
Personal property of the insured's daughter who is away at college
Loss of rental income when a renter cannot stay in the home after a fire
The insured's pedigree collie dog with a $2,000 value
The insured's driveway that is damaged by a lightning strike
73
Which answers is correct
30 days
90 days
60 days
120 days
74
Which answers is it?
$80,000
30,000
50,000
$100,000
75
Which answers is correct
applies to necessary medical expenses incurred within one year of the date
applies to all necessary medical expenses incurred within 3 years
Coverage applies only if the insured is legally liable for damages
applies to persons on the business premises while taking part in company
76
Which answers is correct
$150 per day
$250 per day
$200 per day
$100 per day
77
The Declarations section of a Commercial Umbrella policy will list the
Liability activities not covered by the policy
Duties of the insurance company and the insured
Perils Covered
Persons or organization insured
78
All of the following are benefits provided under a Workers Compensation policy EXCEPT:
Rehabilitation
Medical Payments
Disability Income
Expediting Expenses
79
Which answers is correct
Midi
Midi and Mini
Mini and Full
Midi and Full
80
The Insurance Commissioner cannot do which of the following?
Examine foreign insurers
Change insurance laws
Investigate unfair claims practices
Issue insurance licenses
81
A Building and Personal Property Form (BPP) includes coverage for buildings, business personal property, and ___.
Theft
Contents
Personal Property of Others
Scheduled Outdoor Structures
82
A Products and Completed Operations liability sub-line excludes coverage for which of the following?
Damage caused by a defective product
Damage occurring after possession of the product has left the insured
Recall of products
A vendor's liability for the products of others
83
I an insured fails to comply with the immediate notice of claim requirement, which of the following may result?
The loss may only be partially paid
The coverage may be denied
The premium may be increased
The policy may be cancelled
84
Select the concept below that best illustrates the insured's loss payment being reduced by depreciation.
Excess Loss Coverage
Replacement Cost
Actual Cash Value
Coinsurance
85
Additional Coverages in a Homeowners policy would cover
Debris Removal
The Dwelling
Other Structures
Materials and Supplies
86
In liability insurance, which of the following would be considered an occurrence?
customer slips on an oily surface in a store and suffers head injuries
An auto strikes and injures a pedestrian
A digging machine breaks a water main
Smoke from a nearby factory discolors the paint on a nearby home
87
Which of the following would not be covered under an unendorsed Jewelers Block Inland Marine form?
Jewelry while being transported by U.S. Registered Mail
A customer's ring damaged while in the insured's care, custody and control
Money stolen from the insured's locked safe
Jewelry stolen from the insured's locked safe
88
Someone breaks down the door to a store and steals merchandise. This loss relates to the peril of
Burglary
Robbery
Barratry
Embezzlement
89
A Scheduled Personal Property endorsement is usually issued on which of the following basis?
Blanket
Co-Insurance
Extended Coverages
Open perils (all-risk)
90
Which answers is correct
$3,000
$2,000
$5,000
$7,000
91
An insurance policy's appraisal clause is used to determine the
Person who is liable for damages
Amount of liability for the insurer
Facts, so the case can be heard in court
Existing coverage
92
Which answers is correct
A Watchperson
Messenger
an Employee
Custodian
93
Commercial General Liability (CGL) policies exclude which of the following?
3rd Party Losses, Product Injury, Product Recalls
Nuclear, Pollution, Product Recalls, 1st Party Losses
Pollution, Liquor Losses, Nuclear, Product Recalls
Ongoing Operations, Premises Losses, Product Injury
94
Which answers is correct
$1,700
$1,600
$2,400
$1,200
95
In Ocean Marine insurance, when cargo is sacrificed to save the ship, this loss is referred to as a/an
Total Constructive Loss
An Inchmaree Peril
General Average
Particular Average
96
Loss of Consortium and Pain & Suffering are what type of damages?
Compensatory - special
Compensatory - Specific
Punitive
Compensatory - General
97
Which answers is correct
Intervening Cause
Last Clear Chance
Contributory Negligence
Assumption of Risk
98
Exclusions exist for which of the following reasons?
Eliminate coverage for certain types of losses
Eliminate coverage for uninsurable perils
All of the above
Eliminate duplicate coverage
