Help

Options

focusNode

Didn't know it?
click below

Knew it?
click below

Don't Know

Remaining cards (0)

Know

retry

shuffle

restart

0:00

Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

Normal Size Small Size show me how

2nd TEST

2ND TEST MISSED ?S

Question	Answer
Under Section I, homeowners insurance must include	c) Liability coverage.
Unoccupancy	Unoccupancy refers to an insured structure in which no people have been living or working within the required period of time, but the structure contains contents.
In an aleatory contract	In an aleatory contract, unequal amounts are exchanged between payments and benefits. In this instance, the insured receives a large benefit for a small price.
What is the maximum number of roomers or boarders for properties insured under the dwelling policy?	Dwelling policies may insure a property that allows up to 5 roomers or boarders.
Pro rata liability applies.	. Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). Therefore, it is responsible for 1/3 of the $24,000 loss, or $8,000.
An insured is driving her automobile and strikes a large pothole that causes a flat tire. Which coverage of the insured's personal auto policy will pay for the repair?	A flat tire that occurs from a cause other than vandalism is considered a road hazard and is specifically excluded from coverage in the policy.
If an insured has an umbrella liability policy in addition to his personal auto policy, which would be considered the underlying policy?	The underlying policy is the primary liability policy. In this scenario, it’s the insured’s personal auto policy.
________________________________________ #16. Which professional liability form provides form coverage for liability arising out of malpractice, error, or mistakes made in rendering professional services?	The physicians, surgeons and dentists malpractice form provides coverage for liability arising out of malpractice, error, or mistakes made in rendering or failing to render professional services.
Under the Affordable Care Act, which classification applies to health plans based on the amount of covered costs?	Plans other than self-insured plans will be classified into four levels determined by how much of one's expected health care costs are covered. The four plans are bronze, silver, gold, and platinum. This is called metal level classification.
When an employee benefit plan pays the premium for a fiduciary liability policy, what provision must be included in that policy?	If the premiums are paid from the fund, the policy must allow for subrogation against the individual trustees involved in any loss.
Which of the following types of valuation works best for property whose value does not fluctuate much?	Agreed value works best for items whose value does not fluctuate much. When a loss occurs, the policy pays the agreed value as specified on the policy schedule, regardless of the insured item's appreciation or depreciation.
Which of the following is NOT covered under Plan A in Medigap insurance?	Medicare Supplement Plan A provides the core, or basic, benefits established by law. All of the above are part of the basic benefits, except for the Medicare Part A deductible, which is a benefit offered through nine other plans.
Which of the following best describes the amount of loss assessment coverage included under a homeowners policy liability coverage section?	Section II – Loss Assessment Coverage – applies to assessments against the insured by a condominium association or other cooperative body of property owners. Coverage is limited to $1,000, but an increased limit of coverage is available by endorsement.
Which of the following endorsements is used to insure Coverage C (personal property) for values beyond the limitations of the homeowners policy?	Items that are scheduled and insured under a scheduled personal property endorsement are covered on a valued basis.
Which of the following insurance options would be considered a risk-sharing arrangement?	When insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal.
Which statement regarding insurable risks is NOT correct?	Granting insurance must not be mandatory, selecting insureds randomly will help the insurer to have a fair proportion of good risks to poor risks. All other statements are true.
The general property policy form is used for other-residential and non-residential structures and their contents such as	The general property policy form is used for other residential and non-residential structures and their contents. Eligible structures include other residential structures, commercial structures, and cooperative associations.
To comply with requirements for insurance for public liability under the Motor Carrier Act of 1980, which endorsement is added to motor carrier coverage form?	The Federal Motor Carrier Safety Administration (FMCSA) has developed an endorsement, MCS-90
In this state a temporary license may be issued for all of the following reasons EXCEPT	An agent's retirement. The death of an agent. An agent's disability. An agent's time in the military service A temporary license is not available for an agent's retirement.
Which of the following is an example of a producer's fiduciary duty?	An agent acts in a fiduciary capacity, based upon trust and confidence, when handling the financial affairs of their customers, including the handling of premiums.
Additional coverages in the liability section of a homeowners policy cover all of the following EXCEPT	.Claims expense.Expenses the insured incurs rendering first aid for bodily injury to third parties.Damage to the property of others.Legal liability coverage is a primary liability coverage, not an add.itional coverage
Who is NOT considered an employee in a commercial general liability (CGL) policy?	Full-time worker Part-time worker Temporary worker Leased worker , a temporary worker is not considered an employee.)
Which of the following statements is true concerning underinsured motorist coverage under a personal auto policy?	Underinsured motorist coverage will act as excess over the at fault motorist's bodily injury coverage.
PAP is divided into 6 parts	: Liability Coverage, Medical Payments Coverage, Uninsured Motorist Coverage, Coverage for Damage to Your Auto, Duties after an Accident or Loss, and General Provisions. Physical Damage Coverage is a section in a commercial auto policy.
commercial auto policy.	Physical Damage Coverage is a section in a commercial auto policy.
. How much will the policy pay under medical payments coverage?	The limit is not more than $5,000 per person, per accident.
Replacement cost is defined as	do not consider depreciation if the proper amount of insurance is maintained. Policies that provide replacement cost coverage require that the amount of insurance written be 80% or more of the replacement cost of the property at the time of loss.
Which of the following statements is true concerning the special form dwelling policy?	The all-risk coverage applies to property insured under Coverages A and B only.
Valuable papers and records form provides coverage for the reconstruction of all of the following types of records EXCEPT	Historical records. Prepackaged software. Blueprints. Deeds. prepackaged software is specifically excluded.
Which of the following would NOT be considered an insurance producer?	Insurance producer means any person required to be licensed to sell, solicit or negotiate insurance – including agents, brokers and intermediaries. Officers are not required to be licensed.
Which loss listed below would be fully covered by a homeowners policy?	Tea sets are covered with a special limit of $2,500 for the peril of theft; the firearm collection is covered for no more than $2,500 if stolen; boats are covered for no more than $1,500 for any peril the policy covers; the dog is not covered at all.
Which of the following is NOT an optional coverage available in a businessowners policy?	Employee dishonesty Workers compensation Outdoor signs and exterior-grade floor glass Mechanical breakdown Workers compensation is a different type of insurance.
Farm policy Coverage B – Structures would pay how much for loss of an outside antenna, tower, or satellite dish?	special limit of $1,000 per occurrence applies to such items.
After signing a contract and starting the job, a contractor realizes that the job cannot be completed at the agreed upon price. Which bond would pay?	There is no bond to protect the contractor for faulty bids or cost overruns.
Bid bonds	Bid bonds guarantee a contractor will enter a contract at the price bid if selected,
, supply bond	guarantee supplies are delivered in accordance with a supply contract,
Under businessowners policy Section I, if an insurer wants to nonrenew a policy, how many days before the expiration date must the insurer notify the mortgageholder?	10 days before the policy expires.
Can the Superintendent investigate fraudulent claims if they occurred outside of the resident's state according to the Insurance Fraud Prevention Act?	If the insurance frauds bureau has reason to believe that a person is engaged or is about to engage in a fraudulent act, the Superintendent has the power to make an investigation within this state or outside of the state.
Which of the following is NOT settled on an actual cash value basis while covered under the business property coverage form?	Property of others Manuscripts Works of art or antiques Valuable papers and records Valuable papers and records are valued at the cost of blank materials for reproducing the records and labor to copy the records.
If an insured has an own occupation plan, what is the maximum amount of time that benefits can be collected on his or her current job?	2 years
The total amount of the removal adds up to the following: three trees at $300 per tree, and one tree at $600. How much will the insurer pay for the loss?	The most the policy will pay for this loss is $1,000.
Workers compensation statutes require employers to meet capital reserves requirements sufficient to pay any claims that might arise. Employers can meet such obligations through all of the following EXCEPT	Competitive state funds. Self-insurance plans. Assigned risk plans. (Second injury funds are a method by which employers manage the risks associated with the hiring of previously injured potential employees.)
An insured misstated her age on an application for an individual health insurance policy	the policy benefit will be adjusted to the insured's correct age, regardless of when the mistake was found.
Employers are required to keep records of workers compensation claims for all employee injuries or illnesses incurred on the job and maintain those records for at least	18 years.
Underinsured motorist coverage acts as excess over the at-fault motorist's coverage.	Because of the per person limits of Driver A’s underinsured motorist coverage, the policy will pay the amount necessary to bring payment up to the per person limit (in this case, $100,000). The policy will not pay more than the limits of liability.
Which of the following statements is true regarding the premium computation for workers compensation insurance?	Because the initial premium calculation is based on estimated payrolls, a premium auditor may inspect actual payrolls paid to ensure that adequate premiums are being paid.
#92. In a participation plan, the insured may be eligible for which of the following?	The insured is eligible for dividends (partial premium refund) if the experience during the policy term falls within guidelines established by the insurer at the inception of the policy term.
The amount an insurer will pay under Coverage D (Loss of Use) depends on	Loss of use is usually limited to a percentage of the overall dwelling or personal property coverage (when dealing with HO-4 and HO-6).
All of the following are excluded in the equipment breakdown basic policy EXCEPT	Equipment breakdown coverage covers the sudden and accidental breakdown of the vessel. Business interruption may be added by endorsement.
Which of the following produces evaluations of insurers' financial status often used by state departments of insurance?	AM Best & Company assigns ratings to life, property and casualty insurance companies based upon the financial stability of the insurer.
Which of the following is NOT true concerning the purpose of the Insurance Fraud Prevention Act?	The Insurance Fraud Prevention Act is intended to permit the Superintendent and the department to utilize their expertise to investigate and discover insurance fraud, halt fraudulent activities more effectively and receive assistance from federal and stat
Business income will pay beyond the expiration date of a policy.	It will pay until the business is restored or the limits of coverage are exhausted.
On a DP-3 Dwelling Property Special Form policy, the coverage provided for personal property is	Although Coverages A and B on a DP-3 are written on an open peril or all-risk basis, the coverage for personal property is written on a named or specified peril.
Accidents that are not reportable do not affect an employer's premium rates provided	Accidents that are not reportable do not affect an employer's premium rates provided the employer pays for any treatment directly or reimburses the New York State Insurance Fund (NYSIF) for treatment expenses.
How much is covered for debris removal under the HO property additional coverages?	If the debris was caused by a peril that is insured against, the reasonable cost of debris removal is paid by the insurer.
functional replacement cost	, which is the cost to replace damaged property with less expensive and more modern construction or equipment
What is the purpose of the Terrorism Risk Insurance Act of 2002?	The purpose of the Terrorism Risk Insurance Act of 2002 (TRIA) was to create a temporary federal program that would share the risk of loss from future terrorist attacks with the insurance industry.
In a personal umbrella policy, the amount paid by the insured for certain losses not covered under the primary coverage is called	In casualty insurance, the portion of a claim not paid by insurance is called a retention. In property insurance, it is called a deductible.
Workers compensation laws provide all of the following types of benefits EXCEPT	Compensatory benefits. Medical benefits. Rehabilitation benefits. Death benefits. Awards for pain and suffering are not compensated under workers compensation.
Rates that are established based on the similarities of the risk with other risks are known as	Rates that are established by similarity of risk are manual rating or class rates.
Which of the following is NOT a government insurance program?	FDIC is funded by premiums paid on deposits in covered financial institutions. The others are funded in whole or in part by taxes.
The following conditions apply to the liability coverage in addition to the common policy conditions: bankruptcy, duties in event of occurrence, claim or suit, legal action against the insurer, and separation of insured.	. Employers liability is an exclusion.
When an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays	Retention is the equivalent of a deductible in property insurance.
A $100,000 house insured on a policy with an 80% coinsurance requirement has a fire that caused $40,000 of damage; the owner has a policy with $60,000 coverage. How much can the owner collect for his loss?	a house must be insured for at least 80% of its value on the date of loss. In this case, because the house is insured for only $60,000 (75% of the minimum requirement), the policy will pay only 75% of the loss, or $30,000.
If an insurer refuses to renew a dwelling policy for an appropriate reason, the insurer must notify the insured within	If an insurer refuses to renew a dwelling policy, as allowed by the laws of the state of New York, such insurer must notify the insured within 45 days, but no more than 60 days prior to the expiration date of the policy.
Under a businessowners policy, the inspections and surveys condition specifies all of the following EXCEPT	The inspection and survey condition DOES allow the insurer the right to inspect the property and operations. These
Elaborate homes and those with detailed designs or decorative architecture with replacement costs greater than ACV or market value are insured on	HO-8 is used to insure houses with replacement cost more than market value and those built with irreplaceable materials. It is a modified HO-1 and provides ACV coverage for Coverage A.
Representations are written or oral statements made by the applicant that are	Representations are statements made by an applicant that they believe to be true
How much is the premium for the dwelling under construction endorsement under the dwelling policy?	The premium is based on the average value of the house and building materials from the first day of construction until completion.
Which of the following is true regarding licensing in the state of New York?	To qualify for an insurance license in this state, an individual must be at least 18 years old, be a New York resident, must meet prelicensing education requirements, and be found competent and trustworthy.
The standard property deductible per occurrence on a commercial package policy is	Higher or lower deductibles may apply, but commercial property policies generally come with a $500 deductible.
In this state, all of the following employees must be covered by the employer’s workers compensation insurance EXCEPT	a) Public school aides. b) Workers of a nonprofit organization. c) State employees. d) Full-time domestic workers. Public school aides are excluded from the required workers compensation coverage
All of the following statements are true regarding fire department service charge additional coverage under the businessowners policy EXCEPT	The fire department service charge covers charges up to $2,500 and is payable in addition to the limit of insurance shown in the declarations and is not subject to any
Representations are written or oral statements made by the applicant that are	Representations are statements made by an applicant that they believe to be true.
How much is the premium for the dwelling under construction endorsement under the dwelling policy?	The premium is based on the average value of the house and building materials from the first day of construction until completion.
Which of the following is true regarding licensing in the state of New York?	To qualify for an insurance license in this state, an individual must be at least 18 years old, be a New York resident, must meet prelicensing education requirements, and be found competent and trustworthy.
In this state, all of the following employees must be covered by the employer’s workers compensation insurance EXCEPT	Public school aides are excluded from the required workers compensation coverage. All the other types of employees listed must be covered by the employer’s workers compensation insurance.
All of the following statements are true regarding fire department service charge additional coverage under the businessowners policy EXCEPT	The fire department service charge covers charges up to $2,500 and is payable in addition to the limit of insurance shown in the declarations and is not subject to any

Created by: Rosalynww

"Know" box contains:
Time elapsed:
Retries: