Insurance Flashcards
Motor truck cargo policy - truckers form
Which of the following covers a carrier for liability for loss to cargo while it is being transported in a truck?Motor truck cargo policy - owners formTrip transit policyTruckers coverage formMotor truck cargo policy - truckers form
Condominiums
Which of the following risks is eligible for coverage under a businessowners policy?BanksAutomobile dealersBars or tavernsCondominiums
d) All of the above could be considered flood sources
Which of the following would be considered causes for flood conditions covered by the National Flood Insurance Program?a) Overflow of inland or tidal watersb) Unusual and rapid accumulation or runoff of surface waters from any sourcec) A mudflowd) All of the above could be considered flood sources
$1,000
A producer didn't realize that he had committed an act in violation of the Insurance Code. How much would he probably be penalized?$0$500$1,000$25,000
Within 30 days
If a resident producer or solicitor has a change of residential or business address, how soon must the licensee notify the Commissioner?As soon as possibleWithin 15 daysWithin 30 daysAt license renewal
The policyholder can sue the insurer whether or not all conditions and provisions of the policy have been met.
All of the following statements concerning liability coverage are true EXCEPTa) Liability policies normally include supplementary payment provisions.b) Liability policies defend the insured against claims, real or alleged.c) The policyholder can sue the insurer whether or not all conditions and provisions of the policy have been met.d) The insurer cannot refuse to pay a claim even if the insured is bankrupt.
Within 45 days.
The insured with a claims-made commercial general liability (CGL) policy may request in writing claim and occurrence information from the insurer at any time up to 60 days after the policy period ends. The insurer must provide the informationWithin 60 days.As soon as practical.Within 45 days.Within 30 days.
Physical damage coverage
All of the following are parts of a personal auto policy EXCEPTLiability coverage.Physical damage coverage.Medical payments coverage.Duties after an accident or loss.
5 days
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?5 days7 days10 days3 days
$30,000
An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?$0$30,000$32,000$40,000
Limited to covering a servant's property while at the insured location.
Under the dwelling policy, Coverage C - Personal Property isA prohibited coverage in the dwelling form.Limited to 50% of the amount of insurance that is written as Coverage A.Limited to covering a servant's property while at the insured location.Automatically provided as 50% of Coverage A.
.Physical damage
If a person is using an auto with the belief that he is entitled to do so, subrogation rights under a personal auto policy would apply to all coverages EXCEPTUninsured motorist.No-fault medical payments.Liability.Physical damage.
False advertising
An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?False advertisingUnfair claimsTwistingDefamation
U.S. Longshore and Harbor Workers Compensation Act
Shipbuilders and repairers are covered by theU.S. Longshore and Harbor Workers Compensation Act.Jones Act.States' workers compensation lawsFederal Employers Liability Act.
Time element
The business income coverage form covers consequential loss of business income that occurs when a business must suspend operations because of a direct loss. Which of the following terms best describes the nature of this type of coverage?Time elementClaims madeOccurrenceDirect damage
90 days
The employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to30 days.60 days.90 days.120 days.
Anyone while using, with permission, a covered auto owned by the named insured
Which of the following would be considered an insured under a business auto coverage form?a) A partner of the named insured for any covered auto owned by that person or a member of his or her householdb) Anyone while using, with permission, a covered auto owned by the named insuredc) The owner or anyone else from whom the named insured hires or borrows a covered autod) Anyone using a covered auto while working in a business of selling, servicing, repairing, or parking autos if it is not the named insured's business
5 years.
Insurer examinations must occur no less frequently than every2 years.3 years.4 years.5 years.
$14,000
An insured has $5,000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000 for the first passenger, and $8,000 for the second passenger. How much will the policy pay under medical payments coverage?$14,000$15,000$5,000 maximum for the accident$5,000 minus the policy deductible
A premium auditor has the right to examine the insured's compensation records at the end of the policy period to determine the actual premium basis.
Which of the following statements is true regarding the premium computation for workers compensation insurance?The premium basis for workers compensation insurance varies by the type of industry in which the insured is involved.The insured pays a guaranteed premium based on an estimated value of the annual income received.The premium is set at the beginning of the policy period and will not change.A premium auditor has the right to examine the insured's compensation records at the end of the policy period to determine the actual premium basis.
3 years
Coverage for medical payments under a personal auto policy applies to expenses following a covered accident that are incurred and services rendered within what maximum time period?90 days1 year3 years5 years
Up to $1,000 for each violation.
After a hearing, if the Commissioner finds that a licensee is using Unfair Methods of Competition, the Commissioner may issue a Cease and Desist order against that person and levy a fine of how much?$250 for each violation.Up to $500 for each violation.Up to $1,000 for each violation.Up to $2,000 for all violations.
The tree is blocking the driveway
A neighbor's tree has fallen into the insured's yard. The insured's homeowners policy will only pay to remove the tree ifThe damage is more than $1,000.The neighbor has no homeowners insurance.The tree has caused damage to the insured's vehicle.The tree is blocking the driveway.
Damage to the dwelling caused by lava or dust from a volcanic eruption
Which of the following examples of losses paid under an HO-3 also would be paid under an HO-2 homeowners policy?Damage to the dwelling caused by lava or dust from a volcanic eruptionDamage to the dwelling caused by the insured when moving furnitureAccidental scorching caused when a hot iron is placed upon a built-in counter topInterior damage caused by water seeping under the shingles on the roof
30 days
The removal coverage that is included in the broad form dwelling policy will cover property temporarily removed from the premises to protect it from damage for how long?5 days15 days30 days60 days
Computer fraud
The transfer of money from inside a banking premises to a person other than a messenger outside those premises or to a place outside those premises is covered under which commercial crime coverage?Computer fraudMoney orders and counterfeit paper currencyOther crime coverageOutside premises
Fraud
An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act?DefamationUnfair discriminationErrors and omissionsFraud
Additional coverage
Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses?Additional coverageExclusionsDeclarationsInsuring agreement
Provide a method of insuring licensed drivers who are unable to purchase auto liability insurance in the voluntary market
The Louisiana Automobile Insurance Plan was established toSubsidize losses of insured who are insured under the Plan.Approve rates to be charged of high risk auto insureds.Provide a method of insuring licensed drivers who are unable to purchase auto liability insurance in the voluntary market.All of the above.
.Motor truck cargo - owners form
A business using its own trucks to move its own cargo would insure the cargo usingMotor truck cargo - owners form.Motor truck cargo - truckers form.Motor carrier form.Trip transit coverage.
Losses due to the insured's negligence
Coverage A - Bodily Injury and Property Damage in the commercial general liability policy will coverContractual liability.Damage to the insured's product.Losses due to the insured's negligence.Liquor liability.
It is an additional coverage.
Which of the following is true regarding the fire department service charge under the builders risk form?It is an automatic coverage for $500.It is not available in this form.It is a high-deductible endorsement.It is an additional coverage.
Stated amount
When the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss, the coverage is said to be written asSpecific insurance.Stated amount.Replacement cost.Actual cash value.
Garagekeepers
Which of the following coverages would provide protection for the liability of an auto repair garage to owners of vehicles destroyed in the garage by fire?Motor carrierGeneral liability premises and operationsGaragekeepersProduct liability
Federal Motor Carrier Safety Administration
Which of the following is the federal body that regulates truckers who travel across state lines?Federal Motor Carrier Safety AdministrationMotor Carriers Commerce AgencyTruckers and Trade CommissionFederal Trade Commission
Extortion - Commercial Entities
Rita drops off her wedding gown at Vicky's Dry Cleaners for a final pressing. The store's press breaks, so Vicky takes Rita's dress to her other store across town. On the way to the other store, Vicky is held at gunpoint until she gives the man the wedding dress. What crime coverage form would pay for the loss of the gown in this situation?Funds Transfer FraudExtortion - Commercial EntitiesMiscellaneous CrimeNone of these
Hill & Morton Funeral Home
Which of the following businesses would be eligible for a businessowners policy?Hill & Morton Funeral HomeFamily Fun Time Amusement ParkJoe's Bar And GrillHometown Bank & Trust
HO-4
Which of the following homeowners forms is designed to provide named peril coverage for personal property to individuals who rent an apartment?HO-4HO-6HO-2HO-3
False financial statement
When an insurance agency published an advertising brochure, it emphasized the company's financial stability and sound business practices. In reality, its financial health is terrible, and the company will soon have to file for bankruptcy. Which of the following terms best describes the advertisement?DefamationTwistingRebatingFalse financial statement
Louisiana Insurance Rating Commission
If the Louisiana Citizens Property Insurance Corporation denies an application, the applicant may appeal to theLouisiana Citizens Property Insurance Corporation.Commissioner.Louisiana Department of Insurance.Louisiana Insurance Rating Commission.
Symbol 5
Which of the following symbols is available to an insured with vehicles subject to no-fault coverage?Symbol 5Symbol 6Symbol 7Symbol 9
Tools 50 feet away from the building
All of the following types of property are covered by a standard builders risk form EXCEPTTemporary structures.Machinery that will be permanently attached to the building.Tools 50 feet away from the building.The building itself.
Replacing the property with other property of a lesser kind or quality.
At the time of loss insured against in a property and casualty policy, the insurer's claim settlement options include all of the following EXCEPTPaying the value of the lost or damaged property.Replacing the property with other property of a lesser kind or quality.Paying the cost of repairing or replacing the lost or damaged property.Taking all or part of the property at an agreed or appraised value..
Situs and status test
In order to be covered by the U.S. Longshore and Harbor Workers Compensation Act, a worker must meet the requirements of theSitus and status test.Maritime and navigable waters test.Wharf and pier test.Loading and unloading test.
.Payment of a third physical damage claim in 5 years
Even though an insured maintains a valid driver's license and has paid the premium when due, an insurer may modify the deductible of an auto policy afterPayment of a third physical damage claim in 5 years.The named insured files for divorce.The named insured is charged with a speeding ticket.Any of the above.
A pickup or van acquired by the named insured during the policy period.
With respect to auto insurance, the term owned autos includes all of the following EXCEPTAny private passenger auto leased to the named insured for a period of more than 6 months.A pickup or van titled to and used in the named insured's business.Any private passenger auto titled to the named insured.A pickup or van acquired by the named insured during the policy period.
30
A nonresident producer moves to another state. The producer must notify the Department of Insurance of the address change within how many days?5102030
Coverage is commonly provided through a federally-funded program.
Which of the following is NOT true about earthquake coverage?Coverage may be written in a Difference of Conditions policy.Coverage is commonly provided through a federally-funded program.Coverage is excluded by most property forms.Coverage may be added to property policies by endorsements.program.
False advertising
Circulating deceptive sales material to the public is what type of Unfair Trade Practice?False advertisingDefamationCoercionMisrepresentation
The date the claim is first made in writing against an insured for injury or damage that occurred on or after the policy's retroactive date
The claims-made trigger is based on which of the following?The date the claim is first made in writing against an insurer for injury or damage that occurred after the policy's retroactive dateThe date the claim is first made orally against an insurer for injury or damage that occurred after the policy's retroactive dateThe date the claim is first made orally against an insured for injury or damage that occurred after the policy's retroactive dateThe date the claim is first made in writing against an insured for injury or damage that occurred on or after the policy's retroactive date
$1,000
An insured has a homeowners policy and is required to be a member of the homeowners association in her neighborhood. The association's community house has burned down, and the insured has been assessed $1200 for her share of the rebuilding cost. How much of the assessment will her homeowners policy pay?None$500$1,000$1,200
Notify the insured in the event of financial difficulty.
Duties of the insurer found in property policy conditions include all of the following EXCEPTReturn any premiums to the insured.Notify the insured in the event of financial difficulty.Pay covered losses.Provide advance notice of cancellation.
Damage to the dwelling caused by ash or dust from a volcanic eruption
Which of the following examples of losses paid under an HO-3 also would be paid under an HO-2 homeowners policy?Interior damage caused by water seeping under the shingles on the roofDamage to the dwelling caused by ash or dust from a volcanic eruptionDamage to the dwelling caused by the insured when moving furnitureAccidental scorching caused when a hot iron is placed upon a built-in counter top
Covered Auto
The designation symbols used in commercial auto policies can be found in which policy section?Covered AutoLiability CoverageDefinitionsConditions
The surety may cancel the bond so as to avoid having to pay losses and expenses
All are true if a contractor defaults on a performance contract EXCEPTThe surety will attempt to seek reimbursement from the contractor for any amounts it pays.The surety may cancel the bond so as to avoid having to pay losses and expenses.The obligee may hire another contractor to complete the job and have the surety repay the obligee.The principal's obligations end.
Outside the premises
Which of the following commercial crime coverages would cover a loss resulting from theft of the company's money and securities from the armored vehicle making a delivery?Outside the premisesForgery or alterationRobbery and safe burglaryInside the premises
Turkeys
Which of the following is NOT covered under Coverage E - Scheduled Farm Personal Property?FishTurkeysPortable structuresLivestock
Never more than 75% of the loss is paid
A loss has occurred before the first report has been filed on a value reporting coverage form. Which is NOT true?Full amount of loss up to the policy limit is paid if the loss occurs before the first report due date.75% of the loss is paid if the loss occurred after the first report due date.Never more than 75% of the loss is paid.Provisional premium is based on 75% of the full amount of coverage.
Any loans required to offset uncollectible amounts
Which of the following is NOT covered under accounts receivable coverage form?Expenses to reestablish the records, if possible, and collection expenses that are in excess of normal costsAny loans required to offset uncollectible amountsInterest on loans required to offset uncollectible amounts pending payment of the insurance proceedsSums due the insured that are uncollectible due to a covered loss
The date when injury or damage occurs
The occurrence form trigger is based on which of the following?The place where the injury or damage occursThe amount of the insured's deductibleThe amount of claims made during the policy periodThe date when injury or damage occurs
Discrimination
Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called?MisrepresentationAdverse selectionDiscriminationLaw of large numbers
Any of the above.
With regards to Uninsured/Underinsured Motorist Coverage, the named insured mayReject the coverage.Select a lower limit of coverage.Select economic-only coverage.Any of the above.
Material misrepresentation
An insured stated on her application for life insurance that she had never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied?WaiverUtmost Good FaithEstoppelMaterial misrepresentation
Liability coverage
Which of the following personal auto coverages would pay for the insured's travel expenses and loss of earnings while involved in the settlement process of a covered loss?Medical paymentsComprehensive coverageCollision coverageLiability coverage
A joint ownership coverage endorsement is added
An automobile that is owned by a nontraditional household, not consisting of a husband and wife, may be insured under a personal auto policy ifAn extended ownership endorsement is added.Separate policies are written for each individual involved.A joint ownership coverage endorsement is added.A miscellaneous-type vehicle endorsement is added.
The insured is injured while driving his motorcycle on his resident premises.
Which of the following circumstances would be EXCLUDED under medical payments coverage of a personal auto policy?The insured's friend is injured in an accident while riding as a passenger in the insured's car.The insured's mother is injured while exiting from the insured vehicle.The insured is struck by another vehicle while crossing the street.The insured is injured while driving his motorcycle on his resident premises.
80%
Coverage F - Unscheduled Farm Personal Property is subject to a coinsurance clause of50%.75%.80%.90%.
Permitted incidental occupancies
Which of the following homeowners endorsements covers liability exposures arising from an incidental business conducted within a building on the residence premises?Professional liabilityBusiness income - report of valuesPermitted incidental occupanciesSpecial limit of liability
Second Injury Fund
Which program was established to encourage employers to hire workers who may have suffered previous work related injury that, when combined with another injury, could be disabled to a greater degree than that of the single injury?Social Security DisabilitySecond Injury FundLouisiana Guaranty AssociationDisabled Worker Act
Up to $500 a day for lost earnings and $2,000 for the cost of bail bonds
Supplementary payments on a CGL provide all of the following EXCEPTPre-judgment and post-judgment interest.The cost of bonds to release attachment.Up to $500 a day for lost earnings and $2,000 for the cost of bail bonds.$100 in gasoline costs by the insured driving a witness to and from court.
Accident insurance, because it pays medical expenses regardless of fault.
In a personal auto policy, the medical payments coverage is similar toBodily injury coverage, because it pays the insured's doctor bills.Bodily injury coverage, because it provides legal protection if the insured causes injuries to others.Accident insurance, because it pays medical expenses regardless of fault.Accident insurance, because it has the same limits.
.The insured's camera is stolen from his vacation home while he is there.
In which of the following situations would off-premises coverage in a broad theft endorsement apply?The insured's jewelry is stolen from her vacation home after she returns home.The insured's vacuum cleaner is stolen from her apartment.The insured's camera is stolen from his vacation home while he is there.The insured's live-in maid's quarters are burglarized
When the damages result from the intentional acts of the employer
While Workers Compensation is intended to be the exclusive remedy for work related injuries, under which of the following circumstance may an employee or an employee's dependent sue the employer?When the injury causes permanent impairmentWhen the injury was inflicted by a fellow employeeWhen the damages result from the intentional acts of the employerAny of the above
Reinstatement of limit
Which inland marine coverage condition states that payment of any claim will not reduce the limit of insurance, except in case of a total loss on a scheduled item?Reinstatement of limitLegal action against the insurerPrivilege to adjust with the ownerTransfer of rights of recovery
Discrimination.
When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is consideredDiscrimination.Twisting.Controlled business.Adverse selection.
A residence employee who is injured on the job
Coverage F (medical payments) under a homeowners policy would coverA residence employee who is injured on the job.A tenant who is injured while on the premises.A family member who is injured while residing in the insured premises.The insured for injuries sustained while working at home..
.After the execution of the contract
The commercial general liability coverage form excludes bodily injury or property damage that the insured has assumed under any contract or agreement. However, the exclusion does not apply to certain types of contracts, as long as the injury or damage occursAfter the execution of the contract.After the contract expires.Before the execution of the contract.Before the contract expires.
DP-1
Which of the following dwelling policy forms primarily insures a structure on an actual cash value basis?DP-1DP-2DP-3All DP forms
Implied
Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?ApparentAssumedExpressImplied
The injury or damage must occur within 90 days after the insured's work is completed.
All of the following conditions must exist for injury or damage to be included in the products and completed operations hazard of a commercial general liability policy EXCEPTThe injury or damage must arise out of the insured's product or work.The injury or damage must occur after the insured has released physical possession of the product to another.The injury or damage must occur within 90 days after the insured's work is completed.The injury or damage must occur away from the insured premises.
Certificate of Authority
A France-based insurer would like to do business in Louisiana. What document must it first receive?International Certificate of IncorporationCertificate of AuthorityTranscontinental Commerce ClearanceAlien Insurer License
All of these are covered
Which of the following may be covered by electronic data processing coverage form under an inland marine policy?Computer hardware that is specifically scheduled.Extra expense the insured incurs to continue the business following a loss.Data processing media, including magnetic tapes or paper tapes, punch cards and discsAll of these are covered.
General
What type of compensatory damages will pay for pain and suffering and disfigurement?NormalGeneralSpecial (specific)Tort
Common carrier cargo liability.
All of the following are classes of inland marine risks EXCEPTBridges, tunnels, and other instrumentalities of transportation and communication.Common carrier cargo liability.Commercial property floater risks.Domestic shipments and transportation risks.
An intentional act that is caused by the insured
Employers liability insurance, Part Two of a standard workers compensation and employers liability (WC&EL) policy form, excludesAn intentional act that is caused by the insured.Liability to a third party for claims arising out of injury to an employee.Bodily injury caused by accident when the injury occurs during the policy period.Bodily injury caused by or aggravated by disease during the policy period.