Insurance Coverage for Non-Owners and Special Cases, Exams of Advanced Education

Download Insurance Coverage for Non-Owners and Special Cases and more Exams Advanced Education in PDF only on Docsity! Connecticut Casualty Adjuster For All Lines - Series 18-09 Exam Simulator (2) Questions And Answers 2024 Payment may be made if which of the following procedures has been executed? - Correct Answer-A Walk-Away release. The walk-away release indicates the final disposition of the matter and relinquishes the claimant's right to sue so payment may be issued. In some states the signing of the payment check indicates a walk-away release. What type of automobile coverage might a person need if he or she does not own a vehicle? Answer Choices: Select the Correct Answer A named non-owner auto policy. An owned auto policy. A joint ownership auto policy. A special drive other car policy. - Correct Answer-A named non-owner auto policy. A named non-owner auto policy is designed to provide auto coverage for someone who does not own a vehicle but who may need auto coverage when he or she rents a car or borrows a vehicle. It is the same as a personal auto policy except it does not list any specific auto. Which coverage does not have a limit of insurance listed in the CGL Declaration page? - Correct Answer-Supplementary payments pay in addition to the limits of liability. While some do have their own individual limits such as the payment of bail bond premiums, the insurer can spend whatever it wants for certain other expenses. Which of the following endorsements can be used under the BAP to extend coverage to individuals such as the owner of the business who does not carry personal auto insurance? - Correct Answer-Drive other car coverage Coverage B covered by the general liability policy provides coverage for: - Correct Answer-Personal and advertising injury liability Coverage B in the CGL policy covers personal and advertising injury liability. Normally these claims do not involve bodily injury. The newer forms provide for bodily injury coverage when an injury occurs when a person such as a shoplifter has been detained and a scuffle occurs. The maximum payable for damage or loss to signs attached to the building covered under a BOP is: - Correct Answer-$1000 The "coverage territory" of umbrella liability policies is usually: - Correct Answer-Anywhere in the world but sometimes with a requirement that suits be brought in the United States or Canada. The umbrella policy expands the coverage territory of the underlying coverages. The coverage is on a "worldwide" basis. Under "additional coverages" of the Homeowners Section II - Liability coverage, damage to property of others will not be covered if it is caused intentionally by an insured who is at least: - Correct Answer-13 years of age If the named insured's employees use their own vehicles to run errands, and the named insured does not have commercial auto coverage, what coverage should be added to the Businessowners Coverage Form? - Correct Answer-The Hired and Non-owned Auto Liability endorsement The insured's vehicle has been involved in an accident with a third party who is at fault. The insured's insurance company pays the claim according to the terms of their policy. In subrogation proceedings against the negligent driver, what is required of the insurer? - Correct Answer-Request payment of the insured's deductible. An insured carries an unendorsed HO-2 policy. He has suffered a partial loss to his dwelling and the authorities have advised him that the property cannot be repaired and must be demolished. What will the insurer pay? - Correct Answer-The cost of the value of the damaged property plus 10%. The HO-2 form as well as HO-3 and HO-5, contain the "ordinance or law" coverage which pays an additional 10% of the damaged property building loss. Unless the insured purchases the "Ordinance or Law Increased Amount of Coverage Endorsement," this is all the insured would be paid for Coverage A, dwelling plus the negotiated damages for the partial loss. This coverage does not apply to personal property. An insured is covered under a personal auto policy in Connecticut. They carry the minimum limits of 20/40/10. They are involved in an at-fault accident and injure three people. The damage to the claimant's vehicle is $18,000. The insurer spends $20,000 in defense costs. How much will the policy pay? - Correct Answer-$70,000 The policy will pay up to $40,000 for the injuries, $10,000 for the damage to the claimant's vehicle and the $20,000 in defense costs. This totals $70,000. other property that results from forgery is also covered in this insuring agreement. What type of coverage would a physician, surgeon, or dentist require? - Correct Answer-Professional. While a physician, surgeon, or dentist may operate an office and have furniture and premises liability which it can insure under a businessowners or other commercial policy, the type of coverage they would REQUIRE, regardless of office exposure, is professional liability insurance. The general penalty for any person or business entity properly found to have committed any unfair or deceptive practices for which no specific penalty is provided in the insurance code will be fined not more than _____ per violation. - Correct Answer-$15,000 The insured owns a home with a swimming pool. The pool is not fenced. If a child were to drown in the pool, which of the following liability doctrines would most likely apply? - Correct Answer-Attractive Nuisance A customer has consumed contaminated food manufactured by the U-Eat company. It is discovered that the manufacturer failed to properly clean some of the equipment and as a result the food was spoiled. This is an example of: - Correct Answer- strict liability This is an example of strict liability and is most commonly applied in Products Liability claims. Certain parties are held liable without regard to fault or negligence. If the claimant can prove that a product was defective and that the defect caused the injury, the manufacturer can be held strictly liable. Which of the following would be considered "special damages?" - Correct Answer-Medical expenses. There are two types of damages for bodily injury claims - special damages and general damages. Special damages are those expenses to which one can apply a dollar amount such as medical bills, a rental car, travel expenses to a medical facility and loss of wages. General damages are the most difficult to adjust since they usually require negotiation or even court action for a final determination of the amount owed the claimant. General damages include disfiguration, pain and suffering, punitive damages, loss of consortium and loss of the quality of life. In commercial auto physical damage coverage, what "triggers" the coverage that applies to the vehicles? - Correct Answer- Symbols. Commercial auto coverage is used to cover vehicles that are used in a business. The insured chooses the type of vehicles to be covered. The coverage is "triggered" by numerical symbols. A domestic insurer is: - Correct Answer-An insurance company formed in a particular state. Which of the following would be a violation regarding the sharing of commissions? - Correct Answer-Your answer: Sharing commissions or paying a finders fee to an unlicensed person is correct. Which of the following is correct concerning the appraisal process under a business automobile policy: The Ordinance or Law Exclusion denies payment for upgrades that are required by ordinance or law to be made to a damaged building. The newer dwelling and HO forms include a limited amount of additional coverage for new building codes that relate to reconstruction. Two customers are injured when a fire sweeps through the hardware store. Medical expenses cost $8,000 for one customer and $3,000 for another. A suit against the hardware store results in an award of $40,000 damages to one customer and $25,000 the other. The hardware store's CGL policy has a per occurrence limit of $50,000, medical payments of $5,000 each person and a general aggregate of $100,000. How much will the insurer pay? - Correct Answer-$50,000 The per occurrence limit is only $50,000 (but can be increased for an additional premium). This is all the insurer can pay. This amount will then be subtracted from the aggregate limit of $100,000 and leave the insured only $50,000 left to pay future claims during the policy period. Which of the following best describes the concept of risk? - Correct Answer-Uncertainty of Loss The home business insurance endorsement is available to cover certain businesses under the homeowner program. Which of the following coverages cannot be included? - Correct Answer-Professional Liability Coverage. Professional liability coverage must be insured under a separate policy. Under the BOP, up to how many years can the insurer request to examine the books and records of an insured? - Correct Answer-3 years Which of the following auto endorsements would include family members as insureds? - Correct Answer-Extended non- owned auto. The extended non-owned auto endorsement includes members of the household when driving a non-owned vehicle. When is a self-insured retention applied in an umbrella policy? - Correct Answer-When the umbrella policy covers a liability claim excluded by primary policies. Umbrella policies may cover a liability claim which is excluded by primary liability policies; in those cases, the umbrella imposes a self-insured retention. What is the limit of coverage provided under a mobile home policy for detached structures? - Correct Answer-10% of the Coverage A limit or $2,000 whichever is greater . A theft that occurs with visible signs of forcible entry is known as: - Correct Answer-Burglary One of the requirements to prove a burglary has occurred is signs of forcible entry while entering or exiting the insured premises. Example would be a damaged door or broken window. Under Coverage C -- Business Personal Property is covered for: - Correct Answer-$2,500 on the premises and $1,500 off the premises for wrongful detention and the court awards damages to the customer. The CGL coverage for the damages: - Correct Answer-Are covered under personal injury liability. The wrongful detaining of a customer is a covered personal injury claim. False arrest, as well as malicious prosecution is also covered under personal injury. In a liability policy, the limits of coverage can be expressed as all of the following, EXCEPT: Single Restricted Split Aggregate - Correct Answer-Restricted. There is no such limit a restricted limit. Liability limits can be expressed as a split limit for bodily injury and property damage, or a single limit for both bodily injury and property damage per occurrence. The policy may also contain an aggregate limit which is the most the policy will pay for all claims (bodily injury and property damage) submitted for the entire policy period. Insurance binders in Connecticut are valid for ________ days. - Correct Answer-60 The reporting of actions against a licensee must be reported to the commissioner within ____ days. - Correct Answer-30. All licensees must notify the Insurance Commissioner, in writing, not later than 30 days after any bankruptcy proceeding or the conviction of a felony, or any administrative action taken against such licensee in another state not later than 30 days after the entering of the administrative order in that state. Such notification shall be accompanied by all supporting documentation. Which of the following statements is true regarding a general liability policy? - Correct Answer-A retroactive date is used only with claims-made policies.. Who is not an insured under the CGL form? - Correct Answer- A person who helps an employee load a truck as a favor. Employees, spouses of individual proprietorships, and spouses of partners are insureds while acting in the performance of duties in the named insured's business. Volunteer workers (a defined term) are also insureds while they are performing duties related to the conduct of the named insured's business. A person who helps an employee load a truck is not an employee. The doctrine that states an insured's policy should provide the coverage that a sensible and prudent person would expect is: - Correct Answer-The Reasonable Expectation Doctrine. When a person buys an insurance policy to insure a specific exposure, there is a reasonable expectation that in case of a covered loss the policy should respond to cover the loss. The doctrine of reasonable expectations states that a policy should include coverages that an average person would reasonably expect it to include.