question

the one basic characteristic of any type of insurance is that the insured is returned to the same status that existed prior to the loss, but without a chance for gain or profit

answer

true

question

which of the following coverages does an open peril policy provide?

answer

perils other than those specifically named as being excluded

question

determine the actual cash value in the following situation: original price of office equiptment when purchased 8 years ago- 9,000. depreciated amount at time of fire-5,000 current replacement cost 12,000

answer

7,000

question

liquor liability

answer

need for a dram shot, liquor, or package store

question

inherent vice or defect

answer

iron rusting, milk going sour, rubber breaking down are all inherent vices

question

how is hitting an animal on the road covered?

answer

other than collision otc

question

medicare supplement insurance

answer

aka medical gap insurance. must include core benefits

question

ordinance or law

answer

an endorsement for building code upgrades

question

loss sustained/discovery forms under crime coverage

answer

loss is for later than the policy period. discovery is for before the policy (loss is later, discovery before)

question

designated brush fire or civil unrest areas

answer

qualifying areas under the fair plan

question

stop loss provision

answer

used in health insurance to limit the maximum amount of money the insured would have to pay out of pocket on a health claim in any particular claim

question

shortages of inventory

answer

under crime insurance the employee dishonesty endorsement never covers

question

can the mortgagee still collect if the insured burns their house down

answer

yes, the mortgage clause is a standard provision

question

otc covers

answer

earthquake, flood, hail, theft, hitting an animal, gunshots (no collision or upset)

question

law of large numbers

answer

the greater the number of insured the more accurately the prediction

question

where does a driver have coverage?

answer

U.S. Canada and US possessions eg puerto rico, guam

question

what is excluded under commercial general liability?

answer

pollution-with the exception of fuel spilled during normal operations. Pollution is normally covered under cpp or builders risk

question

what is the midi-tail on claims made?

answer

provides 5 years coverage for something reported during minitail

question

speculative risk

answer

chance for loss or gain

question

commercial package

answer

modular policy

question

Binder

answer

a temp insuring contract (written or oral)

question

Hazard

answer

anything that increases a chance for loss

question

OTC

answer

anything causing loss or damage to the car, except collision

question

you have liability only and borrow a car and collide with another. which pays?

answer

the borrowed cars insurance is primary

question

basic broad special: which has the broadest coverage?

answer

special

question

gap insurance

answer

pays the difference between the amount an insurer pays on a totaled car and the amount owed on the loan or lease

question

eligibility/enrollment period

answer

used in life and health group benefits without having to prove insurability

question

symbol 9

answer

non-owned autos

question

the lender on a home is called

answer

mortgagee or mortgage holder

question

multiple employer trust

answer

a legal entity of small biz owners grouped together to buy insurance

question

what percentage must vacant for a building to be called vacant?

answer

70%

question

size limits for business owners policy

answer

6 stories, 100,000 sq feet on offices, 25,000 sq feet and 3 million dollars gross sales for mercantile space (store)

question

Dp-1 covers

answer

fire, lightning, and internal explosion

question

dp1, 2, 3 all dwelling forms cover?

answer

loss of rental income

question

third party

answer

the injured party. to whom liability insurance pays claims

question

Personal property

answer

property that can move eg furniture, clothes, paintings, etc

question

why is yacht like ocean marine, even though yacht is a personal line?

answer

the structure of the policy is the same; hull covers damage to the vessel. P and C covers liability and workers comp. A yacht policy can be used for organized racing while ocean marine cannot.

question

Medical Payments in boat owners insurance covers?

answer

covers medical payments and injury for insured and others on a personal boat. does not cover business use or competitive racing.

question

Protection and Indemnity on Ocean Marine or Yacht

answer

Liability and workers comp. portion of ocean marine or yacht policies.

question

code section 770

answer

when buying property that is financed, a lender cannot force the purchaser to buy insurance from a particular agent or broker

question

part of protection and indemnity

answer

worker compensation in a yacht policy

question

elimination period

answer

used in disability income health insurance. that time period benefits are not paid. also called the waiting period

question

did over should

answer

did over should is the fraction of the loss the company pays. the remaining is paid by the insured.( take what they did carry over what they should have carried.

question

Occupational disability income contract

answer

a disability income policy that will pay benefits whether on or off the job.

question

Guaranteed renewable insurance contract

answer

a life or health insurance policy that cannot be changed except for the rate.

question

does the fair plan cover vandalism and mischief

answer

yes, during civil unrest ( riots) you will need it.

question

Misc Vehicle

answer

Motorcycle atvs (not autos, not mobile equiptment)

question

Open Peril

answer

all perils except those specifically excluded.

question

Whats the penalty for not carrying the amount required in a coinsurance clause?

answer

you become a coinsurer and pay a portion of the loss

question

Consequential loss

answer

a consequence of a direct loss eg. a store loses business income after a fire.

question

personnel loss

answer

loss of an employee

question

do corporations have absolute liability?

answer

Yes

question

What is embezzlement?

answer

employee dishonesty, which is not covered by a crime policy unless an employee dishonesty form is attatched. (does not cover shortages of inventory).

question

Deductible

answer

a specified amount of money that is paid by the insurer; pays money on the claim.

question

What has a single limit?

answer

Property Damage

question

Substandard Risk

answer

classification of risk that is more than the normal acceptable risk

question

The fair plan

answer

Distributes the risk among companies

question

Commercial Package

answer

Common Conditions, Common Dec, and two or more modules equal.

question

What is not considered transacting?

answer

establishing a list of clients

question

What has a seperate aggregate limit under commercial general liability?

answer

products completed

question

Full tail optional or exteneded coverage on claims made commecial general liability

answer

unlimited duration for reporting costs extra

question

Comparative Negligence

answer

You can file a claim, but damages are reduced based on that party's negligence

question

Contributory Negligence

answer

a person cannot file or collect if he/she is at all negligent

question

Indemnify

answer

to restore one to there previous financial condition that existed prior to the loss

question

Mexican Liability Endorsement

answer

Excess liability for accidents within 25 miles of the U.S. Border (trips of 10 days or less)

question

Section 2 on Homeowners Policy

answer

Liability and medical payments. paid to others only

question

selling price

answer

market value

question

where are covered perils listed

answer

Declarations page

question

Exclusions

answer

things that arent covered

question

where are excluded perils listed?

answer

exclusions are found in the cause of loss form

question

coordination of benefits

answer

discourages multiple payments for the same claim under two or more policies

question

what are common things not covered by the basic dwelling policy dp1?

answer

no burglary, no falling objects, no collapse, no coverage e, additional living expenses

question

boat coverage is strucured like?

answer

Auto insurance

question

NFIP (flood insurance) is only found where?

answer

participating communities, areas designated on a flood map

question

where does the insurer make promises?

answer

insuring clause. aka insuring agreement

question

which NFIP coverage pays more to the insured, the standard or emergency?

answer

Standard

question

Tort

answer

a wrongful act other than breach of contract or a crime

question

Non-admitted Insurer

answer

an insurer that is not licensed to business in a particular state. (a surplus lines broker works with non-admitted carriers)

question

number of days to notify an insurer to add collision to a new car replacing a a car that only had liability?

answer

4 days

question

pure risk

answer

chance of loss

question

any occupation

answer

definition for being totally disabled in a disability income policy. person cannot perform any occupation he/she is qualified

question

for what amount can a binder be written for?

answer

1 million dollars

question

Minimum limits for low cost auto insurance

answer

10/20/3

question

what are special damages for?

answer

time away from work is special. going to the doctor is special.

question

starr

answer

share, transfer, avoid, retain, reduce (ways to manage risk)

question

who needs professional liability insurance?

answer

doctors, architects, lawyers, and accountants

question

purpose of insurance

answer

to transfer the risk

question

retroactive date

answer

the first date an occurrence would be covered under a claim made commercial general liability policy

question

parking lots, dealerships, and repair garages need

answer

garagekeepers

question

subrogate

answer

the insured transfers the right to sue to the insurance company

question

how much coverage does a dwelling policy give for personal property away from the premises?

answer

10%

question

Collision

answer

colliding with another car, an object or upset (rolling)

question

peril is

answer

the cause of loss

question

pure risk

answer

the insured only has a chance of loss, never gain

question

dp1 ho 1 and ho 8

answer

basic

question

in a contract "you" indicates

answer

the insured

question

would otc cover a laptop or briefcase stolen from my car?

answer

personal property is usually not covered

question

disability income insurance

answer

type of health insurance that pays a monthly income to the insured if he/she is sick or injured and cannot work. Pays partial portion

question

cargo insurance covers

answer

merchandise being shipped

question

what is the mini-tail on claims made commercial general liability?

answer

automatically gives 60 days to report a claim after the policy period

question

pre-existing condition

answer

a health condition or sickness that occurred prior to the issuing of a health policy

question

hull covers

answer

physical damage to insured's ship or yacht

question

endorsement

answer

written agreement attached to a policy to add or subtract insurance coverages

question

broad form of coverage for personal property of a condo owner

answer

h06

question

physical hazard

answer

disctinct characteristics arising from material, structural, or operational features that increase a chance for loss ie being next to a nuclear power plant

question

workers comp insurance

answer

insurance purchased by employers to cover their employees in case a worker is hurt on the job

question

renters

answer

h04

question

a, b, and c in a homeowners policy are?

answer

a=dwelling, b=other structures, c=personal property

question

in a contract who is we?

answer

the insurer

question

standard risk

answer

classification of risk that is normal

question

risk

answer

uncertainty of loss. a risk must be uncertain to be insurable

question

raising the deductible

answer

lowers the premium because small claims are eliminated

question

is a building under constructin vacant?

answer

no

question

repair, replace, acv

answer

the amount a company pays on a damaged or stolen vehicle whatever is less

question

insurable interest

answer

financial interest

question

a,b,c of commecial liability cgl are:

answer

a-bodily injury and property damage, b-personal and advertising injury, c-medical payments

question

underwriter

answer

a person whos job it is to assess risk and determine classification of the insured. (an agent is a field underwriter)

question

noncontributory benefits

answer

a life or health insurance plan that an employer provides for employees in which the employee does not pay any part of the premium

question

minimum good driver discount

answer

20%

question

a vehicle for hire, to transport people eg limo

answer

livery

question

dwelling or homeowners which has broader coverage?

answer

homeowners

question

acv

answer

replacement cost-depreciation

question

pays excess liability amounts

answer

umbrella after underlying policy or retention is paid. liability only; does not cover property

question

lowering the deductible

answer

raises premium bcs small claims are covered

question

morbidity table

answer

a table that shows the average number of sickeness's or accidents at various ages

question

experience rating

answer

method used to determine rate based on insureds loss experience

question

is an object falling from an airplane covered?

answer

under extended coverages

question

vicarious liability

answer

someone not directly involved but still held responsible. an employer has vicarious liability for employees

question

symbol 4

answer

owned autos, other than private passenger vehicles

question

yacht is personal line but is structured like?

answer

ocean marine

question

blanket insurance

answer

used with large groups where the members change frequently and are not individually names. eg schools, campgrounds, churches

question

group insurance

answer

life or health insurance provided for large numbers of people who have something in common, such as the same employer

question

broker

answer

a person who represents the client in transaction: property and casualty only

question

h02,46

answer

broad forms also dp2 and mobile home policies

question

replacement cost

answer

the cost to replace without deduction for depreciation. not what someone paid for it

question

will the cost of sandbaggin a home be covered?

answer

yes the insured does not have to bear the cost

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