Insurance Claims: Settlement Options and Coverage, Exams of Nursing

Download Insurance Claims: Settlement Options and Coverage and more Exams Nursing in PDF only on Docsity! Florida 6-20 All Lines Adjuster Test Questions with Answers A public adjuster represents the interest of: A. The insurer B. The Insured C. The employer D. The interest of the general public - Correct Answers B. The insured Which of the following is the type of report that indicates the initial results of a claim investigation? A. Field Report B. Interim Report C. Full Report D. None of the above - Correct Answers A. Field Report States have adopted statutes regarding claims adjusting. To avoid unfair treatment to a Claimant the adjuster must not: A. Promptly investigate the claim. B. Follow the laws regarding the number of days in which to commence an investigation. C. Deny the claim until a fair and prompt investigation has commenced. D. Pay the claim within a reasonable number of days after the final proof of loss has been Received. - Correct Answers C. deny the claim until a fair and prompt investigation has commenced. Which of the following is not a claim settlement option? A. Forcing the insured to sue by offering less than the claim is worth. B. Repairing property. C. Replacing with like kind and quality. D. Replace with new - Correct Answers A. Forcing the insured to sue by offering less than the claim is worth. The giving up of a known right is called: A. Estoppel B. Violation of policy conditions C. Rebating D. Waiver - Correct Answers D. Waiver An innocent party relies on certain statements made by the adjuster and is damaged as a Result. The guilty party may be legally prohibited from asserting that the fact does not exist Because of: A. Waiver B. Estoppel C. Duties of the adjuster D. Law of contract - Correct Answers B. Estoppel Should an insured fail to report a claim in a timely fashion the adjuster will usually: A. Deny the claim. B. Send the insured a reservation of rights letter. C. Cease investigating. D. Seek the advice of the company's attorney. - Correct Answers B. send the insured a reservation of rights letter. A company adjuster primarily represents the interests of: A. The insured. B. The claimant. C. The insurer. D. The public. - Correct Answers C. The insurer. An adjuster's license will usually be revoked for which of the following reasons: A. Denying claims that are not covered. B. Failing to report a change of address. C. Having been convicted of a misdemeanor. D. Having been convicted of a felony. - Correct Answers D. Having been convicted of a felony. The insured has been involved in an automobile accident and has sustained bodily injuries And damage to the insured vehicle. The adjuster will usually: A. Withhold any payment until all the bills have been reviewed for payment. B. Pay to repair the vehicle and pay the medical bills later. C. Pay for the repair of the vehicle and require a release for all claims. D. Pay to repair the damage to the vehicle and obtain a partial release and settle the Medical payments later and then seek a final release. - Correct Answers D. Pay to repair the damage to the vehicle and obtain a partial release and settle the Medical payments later and then seek a final release. Mr. Jones has damaged his vehicle by striking a tree. He can: A. Take the car to a repair garage recommended by the insurer. B. Take the car to a garage of his/her choice. C. Accept the payment based on the adjuster's estimate. D. All of the above. - Correct Answers D. All of the above. In case of a total loss to a vehicle the adjuster will pay the insured/claimant which of the Which of the following pollution losses would be covered under the Garage Liability? Policy? I. Escape of toxic sludge from a dumpsite the named insured utilizes to store garage Waste. II. Pollution of a creek caused by a gasoline leak from the ruptured fuel tank of a Covered truck following a collision with another vehicle. A. I only. B. Both I and II. C. Neither I nor II. D. II only. - Correct Answers D. II only. Garage keeper’s coverage excludes all of the following losses, except: A. Loss to a high-value stereo system permanently installed in a customer's auto. B. Loss to CDs from a covered auto. C. Faulty work performed by a mechanic. D. Theft of equipment from a covered auto by a garage employee. - Correct Answers A. Loss to a high-value stereo system permanently installed in a customer's auto. Extra Expense insurance covers the cost of: A. Relocation. B. Temporary location. C. Research costs to replace lost information. D. All of the above. - Correct Answers D. All of the above. The Special Cause of Loss form excludes all of the following, except: A. Loss of market. B. Loss due to artificially generated electric current. C. Agricultural smudging. D. None of these are exclusions. - Correct Answers D. None of these are exclusions. Earth movement is covered under which of the following Cause of Loss forms? A. None B. Basic C. Broad only D. Basic and Broad - Correct Answers A. None 4. Volcanic action is covered under which of the following Cause of Loss forms? A. None B. Basic C. Broad only D. Both Basic and Broad - Correct Answers D. Both Basic and Broad Sprinkler leakage is covered under which of the following Cause of Loss forms? A. Basic B. Broad C. Special D. All of the above - Correct Answers D. All of the above All of the following provide an additional amount of insurance under the Commercial Building And Personal Property form, except: A. Lottery Tickets B. Newly acquired property C. Property off-premises D. Outdoor Property - Correct Answers A. Lottery Tickets Which of the following forms cover flood and earthquake damage? A. Building and Personal Property form B. Special form C. Broad form D. None of the above - Correct Answers D. None of the above The Earthquake and Volcanic Eruption endorsement provides coverage: A. Against earthquake from volcanic eruption B. For commercial buildings and other covered property when used in conjunction with Another Cause of Loss forms C. For damage caused by shocks that occur within 168-hours after policy expiration if These shocks began during the policy period D. All of the above - Correct Answers D. All of the above The Commercial Building and Personal Property Coverage form excludes all of the following Types of property, except: A. Securities B. Property of others in the insured's care, custody and control C. Land D. Patios or other paved surfaces - Correct Answers B. Property of others in the insured's care, custody and control Under the Commercial Building and Personal Property form, coverage for the "building" Includes: A. Additions and extensions to the building B. Property used to service the building C. A heating system D. All of the above - Correct Answers D. All of the above Under the Commercial Building and Personal Property form, coverage for "business Personal property" includes: A. Furniture B. Machinery C. Stock D. All of the above - Correct Answers D. All of the above Sinkhole collapse is covered under which of the following Cause of Loss forms? A. Basic B. Broad C. Special D. All of the above - Correct Answers D. All of the above A building valued at $100,000 was insured for $80,000 with a policy containing 80% Coinsurance clause. Disregarding any deductibles, what would the company pay on a $20,000 loss? A. $7,500 B. $5,000 C. $15,000 D. $20,000 - Correct Answers D. $20,000 All of the following are excluded under the Commercial Building and Personal Property Form, except: A. Furniture and fixtures. B. Petty cash and IOUs. C. A watch dog. D. The insured's panel truck. - Correct Answers A. Furniture and fixtures. Which of the following is not covered property under a Commercial Property form? A. Accounts, bills and currency. B. Animals not held for sale. C. Cost of foundations. D. All of the above. - Correct Answers D. All of the above. The insured has transported a portion of his property to an exhibition trade show. It is Destroyed by a fire. What coverage would apply? A. Property off the premises is not covered B. Fire is not covered for this exposure C. A limit of $10,000 would apply to cover the loss D. Special coverage would have to be purchased to cover property off the premises - Correct Answers C. A limit of $10,000 would apply to cover the loss The deductible under the revised Commercial Property forms is: A. $500 B. $1,000 C. $250 D. $750 - Correct Answers A. $500 The insured has suffered a loss as the result of a cracked steam boiler. What coverage Would apply under the Commercial Property Cause of Loss forms? A. The loss would be covered B. The loss is not covered C. Mexico D. Puerto Rico - Correct Answers D. Puerto Rico Which of the following describes admitted aircraft liability? A. Negligence is not a factor B. Must prove legal liability C. Based on a board review D. Based on a limited threshold of damage - Correct Answers A. Negligence is not a factor What coverage under aircraft coverage can cover the injuries to crew members as an Optional coverage? A. Liability coverage B. Admitted liability C. Medical payments D. Workers compensation - Correct Answers C. Medical payments What type of physical damage coverage is needed by a company that repairs aircraft for Damage to customer's property? A. Garage liability coverage B. Hangar keeper’s liability C. General liability D. Garage keeper’s legal liability - Correct Answers B. Hangar keeper’s liability Aircraft liability coverage is very similar to auto insurance coverage with the following Exception: A. Usually written with a deductible B. Does not apply to property damage of others C. Liability to passengers is treated as a separate exposure D. Cannot exclude passenger liability - Correct Answers C. Liability to passengers is treated as a separate exposure Which of the following is not covered under aircraft hull insurance? A. Personal effects B. Fuselage C. Wheels D. Propeller - Correct Answers A. Personal effects Common carriers are responsible for damage to customer goods they transport except for Damage resulting from: A. Acts of God B. Traffic Accidents C. Load shifting D. Poor vehicle maintenance - Correct Answers A. Acts of God Which of the following commercial inland marine coverage forms covers sums due the Insured from customers who are uncollectible due to loss or damage of records? A. Equipment dealers B. Electronic data processing C. Valuable papers and records D. Accounts receivable - Correct Answers D. Accounts receivable The Commercial Inland Marine coverage form "jeweler's block" excludes loss resulting From: A. Earthquake B. Shortage found upon taking inventory C. Unexplained disappearance D. All of the above - Correct Answers D. All of the above The Commercial Inland Marine coverage form "valuable papers and records" includes Coverage for: I. Money and securities II. Deeds, drawings and maps III. Books, files and mortgages A. I and II B. I and III C. II and III D. II only - Correct Answers C. II and III The ______is an ideal form of protection for the frequent shipper of goods. A. Trip transit policy B. Annual transit policy C. Monthly transit policy D. Common Carrier motor truck cargo policy - Correct Answers B. Annual transit policy Mr. Jones owns a jewelry store. His wife takes a very valuable necklace and wears it to a Party. It is stolen. How will the jeweler's block policy respond to cover this loss? A. The policy will cover the loss. B. The loss will be denied C. The policy will pay the loss on an actual cash value basis D. The policy will pay replacement cost less depreciation - Correct Answers B. The loss will be denied XYZ Road Construction Company has a fleet of equipment that consists of bulldozers, Backhoes, and road scrapers. The owner desires physical damage coverage to cover the Equipment. Which of the following types of insurance contracts would be appropriate to? Provide the proper coverage? A. Commercial property coverage B. General liability coverage C. Auto physical damage coverage D. Contractors equipment floater - Correct Answers D. Contractors equipment floater Savage Construction Company has delivered and installed a large boiler in a commercial Building. The owner has not yet accepted nor paid for the work. What type of policy should Savage Construction purchase to cover the work until accepted? A. Builders risk B. Installation floater C. Dealer floater D. Transportation floater - Correct Answers B. Installation floater Community Cleaners is a new dry cleaning and laundry service business. They have vehicles That picks up customer's property to be processed and then delivered back to the customer. What type of policy would you recommend they purchase to cover the customer's Property? A. A business owner’s policy B. A commercial property policy C. A bailed policy D. A trip transit policy - Correct Answers C. A bailed policy Global Electronics has a large piece of equipment that needs to be transported from their Plant to their customer. They are using a rented U-Haul truck and one of their drivers is to Make the delivery. What type of policy would be needed to cover this one time trip Exposure? A. A trip transit policy B. An annual trip policy C. Motor truck cargo D. Bailed policy - Correct Answers A. A trip transit policy The Equipment Dealers Form covers all of the following types of property, except: A. A farm tractor B. A Snow removal truck C. A customer's bulldozer in the insured's repair shop D. An inventory of hats and jackets - Correct Answers B. A Snow removal truck Which of the following statements regarding the Equipment Dealers Form is incorrect? A. Coverage is on an "open peril basis" B. Coverage applies on a worldwide basis C. Contractor's equipment can be covered A. Payment of debt B. Protection of funds handled by employees C. Meeting contractual commitments D. Completing a construction job - Correct Answers B. Protection of funds handled by employees Under a Surety bond, the "Principal" is the party who: A. Agrees to pay damages if default occurs B. Provides the bond in exchange for a fee C. Will be paid damages if default occurs D. Agrees to fulfill an obligation - Correct Answers D. Agrees to fulfill an obligation A contractor has borrowed funds from a bank in order to finance a construction project. A Surety bond which guarantees the lender that the contractor will use the borrowed funds To finish the contract free and clear of liens is known as: A. A Performance bond B. Bid bond. C. Completion bond D. Labor and materials bond - Correct Answers C. Completion bond Sue Green has a Commercial Crime Policy on her restaurant, but she only chose the Insuring agreement "Inside the Premises Robbery or Safe Burglary of Other Property." If an Employee steals some equipment by breaking into the premises during the daytime on a Holiday, the policy would: A. Cover the loss B. Not cover the loss, since acts by employees are excluded C. Not cover the loss, since daytime burglaries are excluded D. Not cover the loss, since only loss of merchandise is covered - Correct Answers B. Not cover the loss, since acts by employees are excluded Under the "Inside the Premises Theft of Money and Securities" insuring agreement of a Crime Policy, which of the following situations would NOT be covered? A. Cash in the register is destroyed in a fire. B. Traveler's checks that have turned up missing. C. A casino suffers a theft of slot machine tokens. D. Cash that is taken by employees. - Correct Answers D. Cash that is taken by employees. In crime insurance terminology, an officer of the company having care and custody of Insured property outside the insured premises is known as a: A. Scheduled executive B. Custodian C. Messenger D. Insured property executive - Correct Answers C. Messenger In crime insurance terminology, a salesperson having possession of the insured's property On-premises are known as a: A. Custodian B. Insured C. Messenger D. Watchperson - Correct Answers A. Custodian In Commercial Crime coverage, the "Inside the Premises Theft of Money and Securities" Insuring agreement would cover loss of all the following, except: A. Currency B. Jewelry C. Tokens and tickets D. Checks and drafts - Correct Answers B. Jewelry Which of the following are parties to a contract bond? I. Principal II. Surety III. Oblige IV. Employee A. I, II, and III only B. I, II, III, and IV C. I and II only D. I and III only - Correct Answers A. I, II, and III only The Equipment Breakdown policy is designed to cover equipment ______ the insured. A. Owned by B. Leased to C. Operated by D. All of the above - Correct Answers D. All of the above If an initial "accident" to a boiler causes three other boilers to have accidents, under the Insurance policy, all four events will be considered: A. One event. B. Two events. C. Three events. D. Four events. - Correct Answers A. One event. An "accident" under an Equipment Breakdown policy includes: A. Sudden breakdown of an object. B. Gradual breakdown of an object. C. Leakage of a valve. D. All of the above. - Correct Answers A. Sudden breakdown of an object. The maximum amount of coverage provided for spoilage to covered property caused by Contamination under an Equipment Breakdown policy is: A. $5,000. B. $10,000. C. $25,000. D. The policy limits. - Correct Answers C. $25,000. The purpose of Equipment Breakdown insurance is: A. To fill the gaps left by property insurance policies. B. To cover the maintenance of boilers and machinery C. To cover damage done to boilers and machinery only D. To cover the explosions of boilers in non-owned buildings that may cause damage the Insured’s property. - Correct Answers A. To fill the gaps left by property insurance policies. The insured has suffered a boiler explosion and desperately needs a replacement as soon as Possible. What coverage would respond to assist the insured? A. Replacement coverage B. Expediting expenses C. Extra expense coverage D. Loss of income coverage - Correct Answers A. Replacement coverage If a boiler explodes and damages a building, contents and property of others, what coverage Would apply? A. Only the damage to the boiler is covered. B. Only the building coverage is provided. C. Only the insured's contents are covered. D. If proper limits are in place the entire loss is covered. - Correct Answers D. If proper limits are in place the entire loss is covered. Automatic coverage is provided for newly acquired equipment for: A. 30 days B. 60 days C. 90 days D. 120 days - Correct Answers C. 90 days A steam boiler has been inspected and found to be in serious need of repairs. The inspector "Red tags" the item. This means: A. A 30 day grace period is provided until repairs are made after the coverage is Suspended B. Coverage is suspended until repairs are made B. A hair salon C. A small manufacturer D. A doctor's office - Correct Answers C. A small manufacturer The insured is covered under a BOP and sustains a direct loss to his building and contents. What is the period of time the policy provides loss of income and extra expense coverage? A. The policy pays for up to 12 months B. The policy pays for up to 6 months C. The policy pays for up to 9 months D. The policy pays for up to 14 months - Correct Answers A. The policy pays for up to 12 months The BOP contains liability coverage for the insured's business. On what basis is the Coverage written? A. Claims made form B. Occurrence form C. Modified claims made form D. No aggregate limit basis - Correct Answers B. Occurrence form The insured carries the "open peril" BOP policy. On a weekend thieves enter the building And steal all of the merchandise in the store. What coverage’s would apply? A. The loss caused by burglary would not be covered. B. The loss by burglary and loss of income would apply. C. The loss of income would not apply. D. The entire loss would be denied by the insurer. - Correct Answers B. The loss by burglary and loss of income would apply. The insured's building is protected by a sprinkler system. The system develops a problem And is inoperative. When does the insured have to report to the company the fact that the System does not work? A. Immediately B. after 24 hours C. after 48 hours D. after 60 hours - Correct Answers C. After 48 hours An insured carries a DP-2 with $10,000 contents coverage. He owns a canoe and stores it At a lake in a private non-owned garage. Fire destroys the garage and the boat. How much Coverage wills his policy provide? A. Up to $1,000. B. Up to $500. C. Nothing D. $1,500 - Correct Answers C. Nothing An insured's home is covered by the DP-3 form. The policy provides $20,000 in coverage On a home that would cost $50,000 to replace. When high winds destroy the roof, it is Determined that it will cost $2,000 to replace it. Assuming the actual cash value of the roof Is $750, how much will the insured collect for this loss? A. $2,000 B. $1,600 C. $1,000 D. $1,750 - Correct Answers C. $1,000 Mr. Simpson owns a dwelling in a rural area close to a small wooded area. He is covered Under a DP-3 form. A deer sees it's reflection in a picture window and jumps through and Enters the dwelling causing significant wall and floor damage. Some of the furniture is Damaged and must be replaced. He is covered for $100,000 on the dwelling and $50,000 on The contents. Which of the following would apply to this loss? A. The entire loss would be denied. B. Pay replacement cost on the dwelling and ACV for the contents loss. C. Pay replacement cost on the dwelling and the contents. D. Deny the contents claim and pay the dwelling loss on a replacement cost basis. - Correct Answers D. deny the contents claim and pay the dwelling loss on a replacement cost basis. The insured is covered under a DP-1 Dwelling Policy with coverage on the dwelling in the Amount of $100,000. He has a detached garage valued at $10,000. Both structures are Destroyed by a fire. What is the total amount recoverable under the policy? A. $110,000 B. $100,000 C. $95,000 D. $105,000 - Correct Answers B. $100,000 An insured lived close to Mount St. Helens and carried a DP-2 policy. When the volcano Erupted, the movement of the earth caused his home to collapse. He reported the claim as A volcanic eruption loss. What do you feel would be the result of this claim? A. The claim would be covered under the peril of volcanic eruption B. A portion of the claim based on a deductible percentage would be paid. C. The claim would be denied. D. The claim would be paid for ACV only under these circumstances. - Correct Answers C. The claim would be denied. A water pipe has burst and the insured has suffered floor and ceiling damage in his two- story Home. He is covered under a DP-2 form with dwelling and contents coverage. The building Codes now require that special piping installation is needed at an additional cost of $500 Over and above the normal cost to repair. His dwelling limit is $100,000. What will the Policy pays if the normal cost to repair is $400? A. The policy will pay a total of $400. B. The policy will pay a total of $900 C. The policy will pay $500. D. The policy will pay $700. - Correct Answers B. The policy will pay a total of $900 Mr. Jones purchased a policy on the dwelling in the amount of $40,000. His wife also Purchased a policy in the amount of $20,000 unbeknown to her husband from another Company. In case of a $15,000 loss, what will her company pay on the loss? A. $5,000 B. $15,000 C. $10,000 D. $7,500 - Correct Answers A. $5,000 The insured has purchased a DP-3 form to cover his dwelling that is valued at a replacement Cost of $100,000. He insures it for $60,000 and has a $30,000 fire loss. What can he expect To be paid? A. $30,000 B. $25,000 C. $22,500 D. $15,000 - Correct Answers C. $22,500 The insured has forgotten to close an upstairs window. A strong storm blows through and Wind and water severely damage the contents and floors of the dwelling. The insured Carries a DP-2 dwelling form. What will be the outcome of this loss? A. The loss will be paid under the peril of wind. B. The loss will be paid on an actual cash value for the contents damage. C. The claim will be denied D. The dwelling damage is covered on a replacement cost basis if the insured carried 80% To value and the contents loss will be paid on an ACV basis. - Correct Answers C. The claim will be denied D. An insured is guilty of concealment, fraud or misrepresentation - Correct Answers A. Investigating a claim that might be covered Churning is best described as: A. Failing to pay a claim due to late reporting B. Forcing the insured to accept less than the claim is worth C. Using policy values in an existing life policy to purchase additional coverage with the same Company for the purpose of earning additional compensation D. Churning is not considered an unfair or deceptive practice. - Correct Answers C. Using policy values in an existing life policy to purchase additional coverage with the same Company for the purpose of earning additional compensation In the state of Florida, a Medicare supplement policy cannot limit coverage for more than ____ Because of pre-existing conditions. A. one year B. three months C. six months D. 30 days - Correct Answers C. six months Under Florida law, the minimum deductible allowed for comprehensive claims involving Broken windshields are: A. $50 B. $100 C. $75 D. No deductible applies - Correct Answers D. No deductible applies Under a disability income policy, the time between the beginning of a covered injury or Sickness and the beginning of income payments are known as the: A. Double indemnity B. Waiting period C. Waiver of premium D. Cancellation period - Correct Answers B. Waiting period In Florida, the death benefit under personal injury protection (PIP) is: A. $1,000 B. $2,000 C. $5,000 D. $2,500 - Correct Answers C. $5,000 A person sustains $4,000 in medical expenses and $5,000 for lost wages under PIP. This person dies as a result of his injuries. How much death benefit would be paid? A. $10,000 B. $5,000 C. $1,000 D. $2,500 - Correct Answers C. $1,000 A(n) _____ is a group of hospitals and physicians who have joined together in an effort to Reduce medical costs. A. HMO B. PPO C. Medicare Supplement D. None of the above - Correct Answers B. PPO Under what circumstances would PIP coverage not be considered primary coverage? A. The "at fault" drivers do not have auto coverage. B. Workers compensation coverage is applicable to the claim. C. Medical insurance is in force. D. Disability income coverage is in force. - Correct Answers B. Workers compensation coverage is applicable to the claim. Florida statues provide that any person who is damaged by certain insurer practices is Granted a right to sue the insurer for damages. Which one of the following would not apply? A. Not attempting in good faith to settle claims when it could and should have done so. B. Refusing to pay an uncovered claim. C. Making claim payments to insured’s that are not accompanied by a statement setting forth The coverage under which payments are being made. D. Failing to promptly settle non-liability claims under one portion of coverage, where the Obligation has become reasonably clear, in order to influence settlements under other Portions of coverage. - Correct Answers B. refusing to pay an uncovered claim. Which of the following is not considered a person that is transacting insurance and therefore Not required to be licensed? A. A clerical employee who performs routine filing duties for an insurance company. B. An attorney who assists in settling claims. C. A claims adjuster D. An employee who quotes insurance premiums. - Correct Answers A. A clerical employee who performs routine filing duties for an insurance company. All the following are correct regarding the continuing education requirements to maintain a License in Florida, except: A. Licensees must complete 24 hours of continuing education every two years. B. The hours required must include five hours of ethics and law. C. Excess hours may be carrier over to the next compliance period. D. The law requires that adjusters must complete three hours of basic claims handling. - Correct Answers D. The law requires that adjusters must complete three hours of basic claims handling. Every insurer must maintain claim files that are subject to examination for the Insurance Department for: A. The previous year and the current year. B. The current year and three previous years. C. The current year and four previous years. D. The current year and five previous years. - Correct Answers B. The current year and three previous years. The law requires that a third party claim involving a minor can be settled with both parents Of the minor when the amount is not in excess of: A. $25,000 B. $10,000 C. $5,000 D. $7,500 - Correct Answers C. $5,000 In order to satisfy the Florida automobile financial responsibility law, the owner of a vehicle Must carry liability limits of at least: A. $20,000 each person/$40,000 each accident and $10,000 property damage B. $25,000 each person/$50,000 each accident and $25,000 property damage C. $10,000 each person/$20,000 each accident and $5,000 property damage D. $10,000 each person/$20,000 each accident and $10,000 property damage - Correct Answers D. $10,000 each person/$20,000 each accident and $10,000 property damage Under the Florida automobile no-fault law, there are certain rights that are retained where The claimant can seek relief regardless the threshold. These include which of the following? A. Medical expenses B. Doctor Visits C. Loss of income D. Pain and suffering - Correct Answers D. Pain and suffering Which of the following is not an exclusion under the PIP automobile coverage? A. Coverage does not apply while occupying an uninsured vehicle B. Injuries to persons operating the vehicle without the insured's consent are covered C. Coverage only applies while occupying an insured vehicle D. Intentional acts or injuries while committing a felony are covered - Correct Answers C. Coverage only applies while occupying an insured vehicle Violation. The Commissioner will: A. Call for a hearing. B. Revoke the license pending a hearing. C. Revoke the license. D. Fine the agent's insurance company. - Correct Answers A. Call for a hearing. Which of the following would be considered an Unfair Trade Practice? A. Twisting B. Rebating C. Coercion D. All is Unfair Trade Practices - Correct Answers D. All are Unfair Trade Practices Which of the following is NOT considered to be an unfair claims practice? A. Misrepresenting pertinent facts or uninsured policy provisions relating to coverage’s At issue. B. Refusing to pay claims without conducting a reasonable investigation based upon all Available information. C. Attempting to settle claims on the basis of an application that was altered without Notice to or the knowledge of the insured. D. Failing to honor an uncovered claim. - Correct Answers D. failing to honor an uncovered claim. Although their liability is clear, BB&S Insurance Company routinely delays all claim Payments for 90 days, and in doing so: A. Avoids a lot of little nuisance claims. B. Substantially eliminates fraudulent claims. C. Is guilty of an unfair claim settlement practice. D. Avoids any acts of illegal discrimination between claimants. - Correct Answers C. Is guilty of an unfair claim settlement practice. Which of the following would be considered unfair or deceptive acts by an adjuster? A. Requesting that a first party claimant signs a release that extends beyond the subject Matter which gave rise to the claim payment. B. Advising the claimant that their rights may be impaired if a form of release is not Completed within a specified period of time unless for the purpose of notification of Statute of limitations. C. Issuing a check or draft, in partial settlement of a loss or claim under specific Coverage that contains language that releases the insurer or insured from total Liability. D. All of the above. - Correct Answers D. All of the above. An act of terrorism must be "certified" to be such an act by: A. The President of the United States. B. The Senate C. The House of Representatives. D. The Secretary of the Treasury. - Correct Answers D. The Secretary of the Treasury. :All of the following events are considered acts of terrorism, except: A. Acts of riot and civil commotion B. Acts considered dangerous to human life, property or infrastructure. C. Acts resulting in damage within or outside the United States. D. Acts committed at the premises of any United States mission. - Correct Answers A. Acts of riot and civil commotion In order to be certified as an act of terrorism under the Federal Terrorism Act, property And casualty losses must exceed ____ for any one event: A. $500,000 B. $1,000,000 C. $3,000,000 D. $5,000,000 - Correct Answers D. $5,000,000 None of the following can be covered by the Federal Terrorism Act insurance program, Except: A. Most commercial property and casualty risks. B. Federal crop insurance. C. Personal insurance policies. D. Health and life insurance policies. - Correct Answers A. Most commercial property and casualty risks. No act will be certified by the Secretary as an act of terrorism under the Federal Terrorism Act if: A. The act is not committed as part of the course of war declared by Congress. B. The act is one of terrorism as defined by the Act. C. The losses that occur relate to commercial property risks. D. The losses that occur relate to life insurance. - Correct Answers D. The losses that occur relate to life insurance. All of the following are considered acts of rebating, except: A. An agent provides an all-expenses paid cruise to a client and his wife in exchange for Writing the coverage on his national chain of restaurants. B. An agent sends holiday greeting cards to all the clients on his mailing list. C. An adjuster receives a monthly check from an auto body repair shop for Recommending the repair shop to clients who have a claim. D. All of these situations are considered acts of rebating. - Correct Answers B. An agent sends holiday greeting cards to all the clients on his mailing list. Under the extension of the Terrorism Risk Insurance Act the federal government will share In the losses for a certified act of terrorism if: A. Total losses for all insurers exceed $100 million dollars B. An insurer is responsible for the first 20% of losses as a deductible, and then the Government will pay 85% of remaining claim amounts. C. The total certified acts of terrorism for the program year have not exceeded $100 Billion dollars D. All of the above - Correct Answers D. All of the above The federal law enacted to control the ways financial institutions and insurance companies Deal with the private information of individuals is: A. The FAIR Plan B. The Gramm-Leach-Bliley Act C. The CAN-Spam Act D. The Fair Credit Reporting Act - Correct Answers B. The Gramm-Leach-Bliley Act An incorporated insurance company owned by its policyholders is: A. A Stock Company. B. A Reciprocal Insurer. C. A Mutual Company. D. A Self Insurer. - Correct Answers C. A Mutual Company. The federal government sometimes provides insurance that is not ordinarily available from Private insurers. Which of the following is provided by the federal government? A. Nuclear energy liability insurance B. Federal flood insurance C. Federal crop insurance D. All of the above - Correct Answers D. All of the above In addition to any administrative action, a person who violates the Federal Fraud and False Statements regulation will be subject to a civil penalty of up to: A. $5,000 B. $10,000 C. $25,000 D. $50,000 - Correct Answers D. $50,000 The Pair and Set clause in property insurance contracts notes that the loss to one item In a pair or set: A. Constitutes a total loss. B. Pays the difference between ACV of the property before and after the loss. C. Does not constitute a total loss. D. Does not constitute a partial loss. - Correct Answers B. pays the difference between ACV of the property before and after the loss Inland Marine insurance is commonly used to insure all of the following, except: A. Stamps B. Camera Equipment C. Jewelry B. Personal Articles Floater C. Personal Property Floater D. Both the Personal Property Floater and the Personal Articles Floater - Correct Answers D. Both the Personal Property Floater and the Personal Articles Floater An insured has an extensive gun collection. Which of the following would not cover? His collection in case of a flood? A. The Personal Articles Floater B. The Personal Effects Floater C. The Personal Property Floater D. None of the forms would cover flood - Correct Answers C. The Personal Property Floater In Ocean Marine Insurance, which of the following is considered the most important implied? Warranty? A. Seaworthiness B. Condition of the cargo C. Legality D. All of the above - Correct Answers A. Seaworthiness 2. In Ocean Marine Insurance, the term "average" means: A. the ACV of the ship B. The annual premium for the insurance policy C. Loss or damage D. That coverage is written on a named peril basis - Correct Answers C. Loss or damage Protection and Indemnity Coverage contained in an Ocean Marine policy covers: A. Liability against injuries to seamen. B. Injury to stevedores, longshoreman and harbor workers C. Cargo, if lost or damaged through negligence D. All of the above - Correct Answers D. All of the above Protection and Indemnity Coverage contained in an Ocean Marine policy covers: A. Guarantees the purpose of the voyage B. Loss of the shipper' fees. C. Marine legal liability for damages caused by the ship D. Damage to another vessel caused by collision - Correct Answers C. Marine legal liability for damages caused by the ship Although Ocean Marine Hull and Cargo coverage’s are usually written on an open peril basis, They exclude losses caused by inherent vice. The term "inherent vice" means: A. The potential of property to self-destruct. B. Negligence by masters or members of the crew. C. Losses caused by the dishonesty of crewmembers. D. Any loss resulting from illegal activities. - Correct Answers A. The potential of property to self-destruct. In Ocean Marine Insurance, what is the purpose of the IVEL clause? A. To pay for the loss of shipper's fees B. To require the insured to take all reasonable steps to protect the property from further Loss. C. To provide excess hull and collision liability coverage D. To cover bulk shipments - Correct Answers C. To provide excess hull and collision liability coverage What is meant by "break bulk" cargo? A. Cargo shipped in a tanker ship B. Cargo that is loosely packed such as ores C. Loose cargo such as cartons D. Containerization cargo - Correct Answers C. Loose cargo such as cartons Which of the following is not essential in determining if a salvage award is to be made? A. Life-saving efforts B. The property involved must be in peril from some hazard C. The salvage service must be voluntary D. The effort must be successful - Correct Answers A. Life-saving efforts What is the purpose of freight insurance? A. Covers loss to the cargo B. Covers shipper fees C. Covers the insurable interest of the shipper due to jettison of the cargo D. Covers the cargo until it reaches the warehouse - Correct Answers B. Covers shipper fees In case of a loss, how many days' notice does the insured have after notification of a claim To submit the claim to the underwriters of the Ocean Marine coverage? A. 90 days B. 60 days C. 180 days D. 30 days - Correct Answers C. 180 days The insured is hit in the rear while stopped at a traffic light. The insured's company pays for His repairs then seek reimbursement from the responsible party. This is described as: A. Subrogation. B. Reimbursement. C. Arbitration. D. Appeal. - Correct Answers A. Subrogation. 2. Damage to a windshield by a bird would be covered under: A. Collision B. Comprehensive C. Liability D. All of the above. - Correct Answers B. Comprehensive The Personal Auto Policy provides coverage in all of the following locations, except: A. Hawaii B. Mexico C. Canada D. Alaska - Correct Answers B. Mexico Mr. Pfizer carried 15/30/5 limits on an auto when he negligently ran into a parked car Containing three occupants resulting in the following claims: Tom - B.I. - $18,000 and P.D. - $ 8,000 Dick - B.I. - $ 8,000 Harry- B.I. - $ 4,000 In addition to these settlement awards, there was $18,000 in legal fees. In response to this Accident, Pfizer’s PAP will pay: A. $32,000 B. $38,000 C. $50,000 D. $68,000 - Correct Answers C. $50,000 After a loss, the insured must: A. Notify the company. B. Permit the company to inspect a damaged auto before repairs is started. C. Submit to a physical exam if needed. D. All of the above. - Correct Answers D. All of the above. All of the following are Physical Damage exclusions, except: A. Loss to vehicle used as a livery. B. Damage due to wear and tear. C. Loss to audio tapes. D. Loss to permanently installed car telephone. - Correct Answers D. Loss to permanently installed car telephone. The insurer will pay transportation expenses under the PAP beginning ____ after a theft of The insured's automobile. A. 24 hours. B. 48 hours. C. 72 hours. D. 96 hours. - Correct Answers B. 48 hours. An auto liability policy with a single limit of $30,000 would pay which of the following Amounts in the event of a $10,000 loss to the insured vehicle and a $25,000 bodily injury Settlement to a third party? A. $10,000 B. $25,000 C. $30,000 D. $35,000 - Correct Answers B. $25,000 Under the PAP, a covered auto includes all of the following, except: A. Temporary substitute B. Non-owned auto C. Private passenger auto listed in the Declarations D. An owned trailer - Correct Answers B. Non-owned auto Leased vehicles can be covered under the PAP if they are leased for a minimum of: A. 30 consecutive days. B. 60 consecutive days. C. 6 consecutive months. D. 1 year. - Correct Answers C. 6 consecutive months. A deer crashes into the side of the insured's car. Which of the following PAP coverage’s Would cover this damage? A. Property damage liability. B. Collision. C. Uninsured motorist property damage. D. Comprehensive. - Correct Answers D. Comprehensive. Which of the following would be covered under a PAP? A. A truck the insured rented that is over 10,000 gross vehicle weight. B. A three wheeled vehicle used in a medical emergency. C. A motor cycle. D. A large rented motor home. - Correct Answers B. A three wheeled vehicle used in a medical emergency. An uninsured motorist vehicle under the Personal Auto Policy includes all of the following, Except: A. Hit and run vehicle whose driver cannot be identified. B. A vehicle newly acquired by the named insured. C. A vehicle insured by the company that is insolvent. D. A vehicle to which no liability bond or insurance policy provides coverage at the time Of the accident. - Correct Answers B. A vehicle newly acquired by the named insured. What is the limit for damage to a non-owned trailer under the Personal Auto Policy? A. $500 B. $1,000 C. $1,500 D. $2,000 - Correct Answers C. $1,500 All of the following are covered under Coverage A of a Homeowner Policy, except: A. Attached garage. B. Construction materials used in building an addition to the dwelling. C. Detached garage. D. A central air conditioning system. - Correct Answers C. Detached garage. The type of coverage on contents provided by the HO-3 is: A. Open perils. B. Named perils. C. Basic form. D. Comprehensive. - Correct Answers B. Named perils. Under the Homeowner Policy, theft coverage does not cover theft of property: A. Committed by the insured. B. From a dwelling under construction. C. From the residence of the insured's tenant. D. None of the above are covered. - Correct Answers D. None of the above are covered. An apartment dweller would be in the market for a: A. H0-2 B. H0-3 C. H0-4 D. H0-6 - Correct Answers C. H0-4 The personal liability coverage for Mr. Jones' Homeowner Policy would cover Jones if: A. His dog bit his neighbor on the nose. B. His 14-year-old son burned down his house. C. He negligently bumped into his son while running to work. D. All of the above. - Correct Answers A. His dog bit his neighbor on the nose. Coverage F of the Homeowner Policy applies to: A. The named insured. B. Resident relatives. C. Tenants of the insured. D. Social invitees. - Correct Answers D. Social invitees. Coverage E of the Homeowner Policy involves: A. Premises liability. B. Personal activities. C. Acts of residence employees. D. All of the above. - Correct Answers D. All of the above. Which of the following Homeowner forms provides the least amount of perils coverage? A. HO-5 B. HO-3 C. HO-2 D. HO-8 - Correct Answers D. HO-8 Coverage D - Loss of Use provides which of the following percentages of Coverage A under The H0-2? A. 10 B. 30 C. 40 D. 50 - Correct Answers B. 30 Under Coverage C of the Homeowner Policy, which of the following categories of property Receive limited dollar coverage? A. Boats B. Trailers C. Furs D. All of the above. - Correct Answers D. All of the above. The Homeowner Policy excludes which of the following types of personal property? A. The insured's dog. B. The insured's motorbike. C. Silverware scheduled under another policy. D. All of the above. - Correct Answers D. All of the above. Under the H0-3, what percentage of the amount of insurance written for Coverage A Applies to Coverage C for a one or two family dwelling? A. 10 B. 25 C. 50 D. 100 - Correct Answers C. 50 Under Coverage B - Other Structures of the Homeowner Policy, which of the following Structures are not covered? A. Structures used for business purposes. B. Structures rented to a non-tenant for other than a private garage. C. Attached garages. D. All of the above. - Correct Answers D. All of the above. If the insurer cancels a Homeowner Policy, unearned premium is returned to the insured On what basis? A. Short rate. B. First party C. Second party D. Loss payee - Correct Answers B. First party Mr. Jones, a pedestrian, was injured by Mr. Smith while driving his vehicle. Mr. Smith is Insured by I Am Bogus Insurance Company. The insurance company would be which party To the claim? A. First party since it is the one that has to pay. B. The second party. C. The third party. D. Guarantor - Correct Answers B. The second party. Which of the following is NOT included in the declarations section of an insurance contract? A. The identity of the named insured. B. The policy period. C. The covered perils. D. The policy premium. - Correct Answers C. The covered perils. Which of the following is the section of an insurance contract that contains the provisions? Rules of conduct, duties, and obligations of the parties? A. The Insuring Agreement. B. The Conditions. C. The Exclusions. D. The Limitations. - Correct Answers B. The Conditions. A loss that is a direct consequence of a particular peril is called a(n): A. Indirect loss. B. Peril. C. Hazard. D. Direct loss. - Correct Answers D. Direct loss Which of the following is a clause in property and casualty contracts which states that if Policy or endorsement forms are broadened and no additional premium is required, Then all existing similar policies or endorsements will be construed to include the Broadened coverage? A. Liberalization B. Assignment C. Binder D. Coinsurance - Correct Answers A. Liberalization Which of the following provides written evidence of coverage pending the issuance of a Policy? A. Cause of Loss form B. Assignment C. Binder D. Blanket coverage - Correct Answers C. Binder Which of the following is an example of a Loss Evaluation Method? A. Liberalization B. Cause of Loss form C. Stated amount D. Conditions - Correct Answers C. Stated amount The cost of replacement minus depreciation is the definition of: A. Valued Policy B. Market Value C. Replacement Cost D. Actual Cash Value - Correct Answers D. Actual Cash Value Which of the following is a method of requiring the insured to insure at least 80% of the Value of the covered commercial property? A. Cause of Loss form B. Standard Mortgage clause C. Loss Payable clause D. Coinsurance clause - Correct Answers D. Coinsurance clause Which of the following is a basis for insuring property that allows the insured to report the Value of the building contents to the insurance company on a monthly basis? A. Blanket Basis B. Reporting Form C. Specific Basis D. Agreed Value - Correct Answers B. Reporting Form Which of the following is NOT a factor in determining negligence on the part of the Insured? A. Legal duty is owed. B. There is a breach of protection. C. Proximate cause. D. Damage. - Correct Answers B. There is a breach of protection. In liability insurance, policy limits that apply one limit to each person injured, another for Bodily injury claims of all persons injured in a single accident, and a separate limit for all Property damage arising out of a single accident is: A. Aggregate limits B. Split limits C. Single limit D. Total limits - Correct Answers B. Split limits An insurance contract that is contingent on an uncertain event is referred to as? A. Executor B. Lavatory C. Contract of adhesion D. Conditional - Correct Answers B. Lavatory Mr. Jones is involved in an at-fault accident. The other party was also at fault. The method To determine damages due each party based on a percentage of negligence is known as: A. Contributory negligence B. Intervening cause C. Comparative negligence D. Assumption of risk - Correct Answers C. Comparative negligence The insured owns a filling station and an employee causes bodily injury to a third party. The insured is held legally liable for the employee's acts. This is called: A. Contributory negligence B. Joint and several C. Contingent liability D. Vicarious liability - Correct Answers C. Contingent liability One characteristic of an insurance contract is that both parties must perform certain acts To make the contract legally enforceable. This is called: A. Personal aspect B. Lavatory C. Executor D. Utmost good faith - Correct Answers D. Utmost good faith A church has hired a painting contractor to stain and varnish the woodwork in the building. He leaves the rags and brushes used to apply the painting materials in a small storage area. This is an example of: A. A peril B. A hazard C. Assumption of risk D. Direct loss - Correct Answers B. A hazard The insurance company is the author of the insurance policy. The insured buys what is Offered by the company and accepts it as is. This is called: A. Executor B. Conditional C. Contract of adhesion D. Lavatory - Correct Answers C. Contract of adhesion