which of the following is the coinsurance formula?

insurance carried/insurance required * loss= amount paid

which of the following is automatically included in special BOP policy?

8% automatic increase on building limits

molly slips on sugar at the grocery store and falls, under what part of the grocery stores CGL is molly covered for inju

premises liability, she slipped on the premises

You dont pay your homeowners insurance premium. the insurance company:

can cancel your policy with 10 days notice

A temporary license may be issued:

to a deceased agents personal representative

actual cash value is generally accepted to mean:

cost to replace at the time of loss, less deprecation

what is the law regarding insurance company forms?

forms must be filed before they are used

under the farm policy, losses which qualify for payment on a replacement cost basis is limited to the ACV until

the actual repair or replacement is completed

The homeowners policy covers:

lumber on the insureds premises to be used to build a porch on the dwelling

the business owners policy covers loss of income:

within 12 months following direct physical loss

Your personal auto policy could provide coverage for all of the following people driving your car and crash except:

garage mechanic test driving your car

16 year old spencer is involved in car crash. Who is responsible for spencers negligence?

his grandmother who has custody and signed as a sponsor on his license

Which of the following best describes a "bailee"?

the TV shop that is repairing your TV

which is risk sharing plan for automobile insurance in wisconsin

Wisconsin automobile insurance plan

which of the following is not eligible for coverage under the WIP?

johns farm home with its outbuildings

who needs a drive other car endorsement?

a person whose only vehicle is a company car

A scheduled personal property floater offers all of the following unique benefits to the policyholder except:

no dollar amount needs to be listed

you crash into a pole. the body shop can fix it faster&cheaper with aftermarket parts. which of the following is true

the insurance company must five the insured prescribed written notice

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Property and casualty mix-up

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Answers

1
MOO Cow farms is insured with a farm policy. what coverage would cover a calf hut listed for $175,000?
Coverage C
Coverage F
Coverage E
Coverage D
2
under homeowners HO-2 policy, all of the following are covered EXCEPT:
farm outbuildings
personal liability
contents
dwelling
3
which of the following is the coinsurance formula?
insurance carried*80%/insurance required*loss=amount paid
insurance carried/insurance required*80%*loss=amount paid 2
insurance carried/insurance required * loss= amount paid
insurance required/insurance required*loss=amount paid
4
all of the following items can be found on a Declaration page except:
name of mortgagee
location of property
perils covered
name of insured
5
which of the following is automatically included in special BOP policy?
50% automatic season increase on Business personal property
15,000 sign coverage
8% automatic increase on building limits
20 days of business income coverage
6
molly slips on sugar at the grocery store and falls, under what part of the grocery stores CGL is molly covered for inju
completed operations, because the sugar fell on fell off the display
no coverage, molly should really watch where she is going
premises liability, she slipped on the premises
products liability, she slipped on a product
7
Each licensed intermediary is required to notify the commissioner of a change in address within:
10 days
30 days
60 DAYS
20 days
8
You dont pay your homeowners insurance premium. the insurance company:
can cancel your policy with 30 days notice
cancels your coverage immediately on the day the money was due
automatically gives you 30 days grace period
can cancel your policy with 10 days notice
9
offering benefits or making agreements that are not specified in the policy in order to write the business is known as
restraint of competition
unfair inducement
misrepresentation
unfair discrimination
10
A temporary license may be issued:
to a surplus lines intermediary
while a person is studying for a license exam
to a deceased agents personal representative
for a period of time not to exceed 6 months
11
the commissioners job is to
create insurance laws
disregard insurance laws
interpret insurance laws
override insurance laws
12
a person who is hired to protect insured property inside your premises and has no other duties is know as
Messenger
custodian
watchperson
guard
13
actual cash value is generally accepted to mean:
cost to replace at the time of loss, plus appreciation
market value at the time of loss
original purchase price of the property
cost to replace at the time of loss, less deprecation
14
which of the following is not eligible for coverage under a business owners policy?
a resturant
a chiropractors office
a gift shop
a 24- family apartment building
15
All of the following terms support the concept of indemnity except:
insurable interest
subrogation
replacement cost
ACV
16
All of the following are indirect loss coverages except:
motor truck cargo
extra expense
spoilage
Business income
17
what is the law regarding insurance company forms?
forms are exempt
forms are required prior approval
forms are use-then-file
forms must be filed before they are used
18
All earthquake shocks and volcanic eruptions happening within?at a residential location are considered single occurence
21 days
72 hours
7 days
3 days
19
which of the following needs extra expense coverage?
A factory that makes toothbrushes
a shoe store
a daycare
a resturant
20
under the farm policy, losses which qualify for payment on a replacement cost basis is limited to the ACV until
the total damages exceed 80% of the limit of insurance
a loss statement has been signed by the insured
the actual repair or replacement is completed
the final loss repot is submitted to the insuracne company
21
How many days coverage does a business income form written on maximum period of indemnity provide?
30 days
90 days
120 days
60 days
22
The homeowners policy covers:
A detached garage used as a bike repair shop
summer home owned by the insured but not listed on the dec page
$15,000 of lawnmowers used off premises in t he insureds landscaping bus.
lumber on the insureds premises to be used to build a porch on the dwelling
23
Your cargo is on an ocean liner. the ship runs into trouble and throws your cargo overboard, what is this called?
misrepresentation
jettison
juxtaposition
subrogation
24
the business owners policy covers loss of income:
within 12 months following direct physical loss
up to 25% of the policy limit
within 3 months following direct physical loss
up to 10% of the policy limit
25
how many times can West Bend agent split commission with an American Family agent in one year?
once
five times
25 times
twice
26
in order to sell insurance in Wisconsin, a person must
be 21 years old
be sponsored by an insurance carrier
be competent and trustworthy
be a resident of the state
27
Your personal auto policy could provide coverage for all of the following people driving your car and crash except:
30 year old son who lives elsewhere
garage mechanic test driving your car
90 year old father who lives with you but has no drivers license
6 year old son
28
what kind of powers does the commissioner have?
listed
inferred
numerated
specific
29
Which of the following is eligible for coverage from the WIP?
amys auto sales
Marthas manufacturing Inc.
luka farms
milts family dollar store
30
16 year old spencer is involved in car crash. Who is responsible for spencers negligence?
his father
the person who taught him how to drive
his grandmother who has custody and signed as a sponsor on his license
his mother
31
all of the following are part of the nationwide marine definition except
money
domestic shipments
exports
personal property floaters
32
all of the following are insured contracts except:
elevator maintenance agreement
lease
performance bond
sidetrack
33
Which of the following best describes a "bailee"?
you when your TV is at the repair shop
your friend you have to bail out of jail
the TV shop that is repairing your TV
The TV repairman that comes to your house to fix your TV
34
which is risk sharing plan for automobile insurance in wisconsin
WHCLIP
wisconsin mandatory insurance participating auto plan
wisconsin automobile insurance program
Wisconsin automobile insurance plan
35
workers' comp pays under which of the following circumstances?
only when another employee is negligent
without regard to fault
only when an employee is at fault
only when an employer is negligent
36
Under the CPP, the commerical inland marine declarations form contains information about which of the following
loss payment
policy period
other insurance
conditions
37
If policy A says it will pay after payment by other applicable policies, policy A is;
primary
excess
pro-rata
reinsurance
38
what is the minimum limits of liability for auto insurance in wisconsin?
15/30/15
25/50/10
100/300/100
25/50/20
39
Bob owns a duplex in Madison and rents out both sides to college students. what kind of policy should Bob buy?
an HO-3
A building and personal property coverage form
A DP-3
An HO-4
40
which of the following is not eligible for coverage under the WIP?
johns residential home located in a rural area 10 miles from the fire dept.
Johns residential home inside the city limits
johns second home up north with a replacement value of $45,000
johns farm home with its outbuildings
41
who needs a drive other car endorsement?
a person who has more than one car and only wants to insure car at a time
a person whose only vehicle is a company car
a person who wants to let another person drive his car
a person who wants to drive another persons car
42
in the cause of loss- basic form of the commercial property policy, the explosion coverage includes damage from:
rupture of a pressure relief device
sonic boom of an aircraft
airborne volcanic blast
bursting of a building due to water expansion of its contents
43
What percent of Coverage A is available for damage to contents in a mobile home?
20%
40%
10%
0%- there is no contents coverage on a mobile home
44
A scheduled personal property floater offers all of the following unique benefits to the policyholder except:
no dollar amount needs to be listed
policy has "world-wide" coverage
property is insured for "all risks"
no deductible applies
45
"We agree provide coverage for the following perils: Fire,lightening,extended coverage perils,TVMMV" what form is this?
HO-2
HO-1
DP-1
HO-3
46
how much time is allowed to comply with an order after notice of compulsive forfeiture?
2 weeks
30 days
10 days
6 months
47
exchange of business occurs between which parties
agent and applicant
two insurers
agent and company
agent and another agent
48
if the insurance company wants to cancel a work comp policy for non-payment of premium, how many days notice is required
5 days' notice
60 days notice
10 days notice
30 days notice
49
sally went to the beauty shop to get highlights, when sally looked in the mirror, her hair was bright green. this is
premises liability
professional liability
operations liability
contractual liability
50
Your home is insured with an HO-3. wind blows one of your trees down. How much will the policy pay for your tree?
$1000
$250
$0
$500
51
you crash into a pole. the body shop can fix it faster&cheaper with aftermarket parts. which of the following is true
the insurance company needs permission from the body shop
the insurance company must five the insured prescribed written notice
the insurance company has no obligation t o tell you about the parts
doesnt matter who makes the parts, no one will see them
52
overdue claims require the insurer to pay what % interest?
12%
5%
10%
18%
53
what do we call the meeting the commissioner holds to discuss new rules and regulations
rules meeting
hearing
staff meeting
regulations meeting
54
what is the purpose of the insurance security fund?
to guarantee a minimum investment income for insurance carriers
to audit investment practice of carriers
to oversee payments of claims when a court has ordered liquidation of an in
to pay claims for the policies written in the assigned risk plans
55
you had a hearing with the commissioner&not satisfied with the outcome. How many days do you have to request a rehearing
20 days
10 days
60 days
30 days
56
what is the maximum criminal penalty for an intermediary who intentionally violates a Wis. Insurance statue/rule
$1000
a fine up to $5000
a fine up to $5000 and 3 years in jail
3 years in jail
57
You own a pizzeria, you hire college kids to do pizza delivery for you. what kind of commercial auto coverage do you
garagekeepers liability
hired and non-owned liability
drive other car liability
motor carrier liability
58
what is the maximum forfeiture or civil penalty that the commissioner may impose for failure to comply with an order?
not more than 2,500 per violation
not more than 3 years in jail
not more than 5,000 per violation
not more than 1,000$ per violation
59
which of the following may be considered an uninsured motorist?
driver with no insurance
hit and run driver tat police find later
driver with lower liability limits than you have
person borrowing the car with permission
60
An insurance contract drafted by the company and offered to a prospective insured for acceptance or rejection w/o negoti
contract of subrogation
contract of adhesion
personal contract
unilateral contract
61
the tax on a surplus lines insurance policy is
2% gross premiums
3% of gross premiums
4% of the gross premiums
1% of the gross premiums
62
In property insurance, the insurable interest must exist at the
time of application
time of loss
inception of the policy
time of premium payment
63
all of the following are true about "return of indica" except:
the carrier should demand indica in writing
the commissioner determines whether the request is reasonable
the carrier is bound by the acts of the agent until the carrier has made ef
it is up to the agent whether to return the indica or not
64
what is the distinction between ocean and inland marine?
ocean marine covers bridges and inland marine doesnt
inland marine covers only real property
ocean marine applies to merchandise being shipped over t he ocean
ocean marine applies to cargo that is placed on a ship over water
65
a licensed producer or agent may receive commission compensation for all of the following services EXCEPT:
procurement of any insurance contract
adjustment of claims arising from insurance contracts
negotitation of any insurance contract
acting as a consultant to provide insurance advice
66
polly has auto policy with limits of liability of 50/100/25. Polly rear-ends patrick and is 100% at fault. Maximum coll
$50,000
$75,000
$125.000
$100,000
67
rates for an insured in the Wisconsin workers compensation pool are
slightly lower than the rates in the regular market
slightly higher than rates in the regular market
twice as high as the rates in the regular market
the same as rates in the regular market
68
how long does an agent have to keep clients' insurance transactions?
1 year
3 years
2 years
5 years
69
the maximum amount the company will pay in any one year policy year for liability coverage is considered:
the annual limit
the maximum limit
the occurrence limit
the aggregate limit
70
which of the following is considered an intermediary and needs a license under the Wisconsin law?
holder of group insurance policy who advises members
person who places insurance for benefit of another
person who gives advice for principal purpose of reducing risk of loss
representative of common carrier who sells baggage insurance
71
Under the commercial property form, which of the following are included in the board form and not the basic form?
aircraft
wind
theft
weight of ice
72
what is the maximum amount of bond that the commissioner can require a surplus lines agent to supply?
$500,000
$250,000
$50,000
$100,000
73
Amy has a HO-3, her detached garage is insured for $25,000. how much coverage does Amy have for personal property?
$250,000
$50,000
$125,000
$25,000
74
An SR-22 filing cannot be canceled for non-payment of premium in the first__ days of the policy
90
120
60
30
75
Which of the following best defines the term risk?
brings loss about
uncertainty of loss
increases chance of loss
causes of loss
76
which of these is not a reason for midterm cancellation?
substantial change in risk assumed
failure to make policy payments
failure to properly file an insurance claim
material misrepresentation
77
insurance is an appropriate device to:
avoid liability
transfer risk
eliminate hazards
prevent losses
78
forcible signs of entry or exit are present in:
mysterious disappearance
robbery
burglary
fire
79
Under the other structures coverage of the broad form of dwelling, all of the following are true except:
it does not provide an additional amount of insurance
it provides coverage for a tool shed
it covers a private garage rented for storage of a car
it provides a 10% extension of coverage
80
which of the following is considered a custodian for the purpose of crime insurance?
the IT consultant hired by the insured
the janitor
the hired window washing service
the cashier with respect to the cash register
81
the maximum amount of property coverage available from the WIP for a restaurant is
$500,000
$100,000
$200,000
$1,000,000
82
agreeing to keep the alarms working for the duration of the policy term in exchange for a protective safeguard discount
promissory warranty
personal warranty
affirmative warranty
service warranty
83
which of the following is true regarding umbrella contracts?
umbrell. provides the same coverage as underlying liability policy
Umbrella provides additional limits over other existing liab.coverage
the insureds permission is required to settle a claim
umbrella liability policies are considered primary
84
The fire department is called to put out your fire and they charge you $775, How much will your HO-3 reimburse you?
$775- policy limit is $1000
there isnt a dollar restriction, we want to encourage the insured to call
80% of the total charge
$500
85
the insured must do which of the following after the property loss:
have the damage property appraised
take steps to reduce any further losses
increase his coverage
hire an independent claims adjuster
86
if an insured cannot obtain workers comp coverage through private insurer and obtains it through the pool, the agent is.
an agent of the pool
the agent of the applicant
always the agent of the company writing the policy
not involved in any way
87
Which plan w as provided to administer workers' comp. coverage to employers who cannot obtain it through private insuran
wisconsin workers comp plan
WCRB
Wisconsin workers' compensation pool
wisconsin mandatory workers compensation program
88
who is required to notify the policy holder of their rights to file a complaint
the commissioner of insurance
no notification is necessary
the agent
the insurer
89
Which of the following is eligible for coverage under mobile home policy?
10x20 travel home with a motor
a pop-up tent camper
a tent on a camping lot
12x50 mobile home on a foundation
90
which of the following is not covered by the supplementary payments section of the general liability policy?
interest accruing after a judgement has been entered
cost of bail bonds
first aid at the scene of an accident
defense costs
91
a surplus line agent does business with whom
unauthorized insurers
domestic insurers
foreign insurers
alien insurers
92
all of the following are elements of a contract except
counteroffer
consideration
competent parties
offer
93
An explosion in your garage damaged the tree you planted. the tree is worth $1200. how much will HO pay to replac
$1000
$1200
$500
$250
94
if an insurer cancels a policy on the anniversary date, how many days notice does it have to give the insured?
15
10
60
30
95
who pays the premium tax for unauthorized insurance?
the insurance carrier
the broker
the policy holder
the intermediary
96
Lenny isnt paying attention while driving&hits a parked car. The damage to the parked car is covered by?
Lennys property damage coverage
lennys collision coverage
lennys towing coverage
lennys other than collision coverage
97
using the name, slogan, emblems, etc to cause one intermediary to be mistaken for another is an example of:
unfair restriction
misrepresentation
restraint of competition
unfair discrimination
98
the major difference between a claims-made and an occurrence form is
the retroactive date
when coverage is triggered
the conditions
the coverage amount
99
all of the following may be covered by the basic builders risk insurance EXCEPT:
a building under construction
foundation of a building under construction
an occupied building
building materials not yet part of the building
100
what is the main purpose behind the WAIP?
none of the above
to let private insurers selctively choose who they will send to the plan
to make auto liability avail. to people who cannot obtain it through privat
to give consumers another option for car insurance

Property and casualty mix-up Flashcards | StudBud