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Questions and Answers Part one ( Latest
Which of the following are the authorities that an agent can hold? - CORRECT ANSWER ✔✔Express and implied Which of the following terms refers to such disabilities the loss of a limb, hearing , or eye sight? - CORRECT ANSWER ✔✔Permanent partial disability Who is NOT considered an employee in an commercial general liability (CGL) policy? - CORRECT ANSWER ✔✔Temporary worker The major portion of the premium of an equipment breakdown policy pays? - CORRECT ANSWER ✔✔For inspections and examinations An insured owns a building valued at $400,000. To comply with the 80% coinsurance provision of his insurance policy, how , much should he insure the property for? - CORRECT ANSWER ✔✔80% of the property's replacement cost or more Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must - CORRECT ANSWER ✔✔Respond to the consumer's complaint.
Questions and Answers Part one ( Latest
All of the following are found in the declarations section of a policy EXCEPT the - CORRECT ANSWER ✔✔Exclusions. The cost of restoring farm records is an additional coverage offered under a farm policy. How much will the policy pay to restore the records? - CORRECT ANSWER ✔✔Up to $2, All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT - CORRECT ANSWER ✔✔Dividends from a mutual insurer. Which of the following may be covered by electronic data processing coverage form under an inland marine policy? - CORRECT ANSWER ✔✔a) Computer hardware that is specifically scheduled. b) Extra expense the insured incurs to continue the business following a loss. c) Data processing media, including magnetic tapes or paper tapes, punch cards and discs
Questions and Answers Part one ( Latest
What is the civil penalty for violating a cease and desist order of the Commissioner? - CORRECT ANSWER ✔✔$10, The Business Pursuits endorsement under Section II of a homeowners policy will cover all of the following EXCEPT - CORRECT ANSWER ✔✔Business liability. If a property is covered by Company A for $20,000 and Company B covers the same property for $40,000, how much will Company A pay on a $24,000 loss? - CORRECT ANSWER ✔✔$8, The risk management technique that is used to prevent a specific loss by not exposing oneself to that activity is called - CORRECT ANSWER ✔✔Avoidance. In a farm policy, any cost incurred by the insurer for the investigation or defense of a claim will be paid by - CORRECT ANSWER ✔✔The insurer. Which of the following entities must approve all continuing education courses in this state? - CORRECT ANSWER ✔✔The Commissioner
Questions and Answers Part one ( Latest
An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage. This is an example of - CORRECT ANSWER ✔✔Concealment A common exclusion found under physical damage to your auto includes - CORRECT ANSWER ✔✔Mechanical breakdown. Which of the following is true regarding a risk retention group? - CORRECT ANSWER ✔✔It is a liability insurance company owned by its members. Which of the following best describes a misrepresentation? - CORRECT ANSWER ✔✔Issuing sales material with exaggerated statements about policy benefits A builder's risk form is most often written as which of the following? - CORRECT ANSWER ✔✔Completed value form An insured has a liability policy that sets the amount for all claims that arise from a single incident at $50,000. Which type of limit of liability does this insured's policy have? - CORRECT ANSWER ✔✔Per occurrence
Questions and Answers Part one ( Latest
Which of the following is defined as a covered cause of loss in businessowners property coverage? - CORRECT ANSWER ✔✔Leakage from fire-extinguishing equipment The insured's mother-in-law broke her leg falling down the front steps of the insured's premises. The insured's homeowners medical payments coverage will - CORRECT ANSWER ✔✔Apply to injuries of any guests or visitors. All of the following are exclusions under farm property coverage EXCEPT
- CORRECT ANSWER ✔✔Loss of use. Coverage for medical payments under a personal auto policy applies to expenses following a covered accident that are incurred and services rendered within what maximum time period? - CORRECT ANSWER ✔✔3 years Which of the following is an example of an unfair claims settlement practice? - CORRECT ANSWER ✔✔Failure to promptly settle a claim when liability has been clearly established
Questions and Answers Part one ( Latest
Which of the following definitions best defines the term "accident"? - CORRECT ANSWER ✔✔A sudden, unplanned and unexpected event, not under the control of the insured, resulting in injury or damage neither expected nor intended An insured's accounts receivable records have been damaged. The loss may be covered with - CORRECT ANSWER ✔✔The accounts receivable coverage form. Under the workers compensation system, who is responsible for the expenses resulting from work-related injuries and occupational diseases? - CORRECT ANSWER ✔✔The employer, regardless of whether it was at fault for the injury or disease A person applying for a manager or exclusive general agent license must meet all of the following criteria EXCEPT - CORRECT ANSWER ✔✔Be responsible for at least 25% of total commissions collected by the office that he or she manages. When a vehicle travels from one state to another, what happens to the limits of policy liability in a personal auto policy? - CORRECT ANSWER ✔✔They do not change.
Questions and Answers Part one ( Latest
Which of the following would NOT be classified as personal property for insurance purposes? - CORRECT ANSWER ✔✔A house Under the "limited tort insurance" option, an insured may not seek recovery for pain and suffering or other nonmonetary damages UNLESS
- CORRECT ANSWER ✔✔The injuries fall within the definition of "serious injury." Which of the following statements is true regarding the commercial general liability policy's Coverage C - Medical Payments? - CORRECT ANSWER ✔✔The coverage is considered good will because payments are made without regard to fault. Homeowners policies provide coverage for - CORRECT ANSWER ✔✔Business property while on the residence premises. Who will transport the property of anyone who hires them? - CORRECT ANSWER ✔✔Common carriers In property and casualty insurance, what is the term for the amount of a loss that the insured must cover out of pocket, and the insurer will
Questions and Answers Part one ( Latest
only pay for the additional amount of the loss above this limit? - CORRECT ANSWER ✔✔Deductible A restaurant is out of business for 3 days after an insured's automobile hits an electrical pole. The pole falls and hits the building, knocking out all electrical power supply. Which of the following is NOT covered under the insured driver's auto policy? - CORRECT ANSWER ✔✔Lost revenues from the restaurant How much is the premium for the dwelling under construction endorsement under the dwelling policy? - CORRECT ANSWER ✔✔The average amount of insurance during construction With regards to the personal auto policy, in the event of a claim or loss, the insured is required to do all of the following EXCEPT - CORRECT ANSWER ✔✔Immediately report to an emergency room for medical examination. Which insurers are required to participate in the Pennsylvania Automobile Insurance Plan (Assigned Risk Plan)? - CORRECT ANSWER ✔✔All insurers authorized to write auto liability insurance in the state
Questions and Answers Part one ( Latest
Which of the following policies must contain, at a minimum, policy language equal to the Standard Fire Policy? - CORRECT ANSWER ✔✔All of the above Under the dwelling policy, Coverage C - Personal Property is - CORRECT ANSWER ✔✔Limited to covering a servant's property while at the insured location. Which of the following criminal activities would be sufficient violation to warrant rejection, revocation, or suspension of an insurance producer's license? - CORRECT ANSWER ✔✔Forgery In dwelling policies, automatic increase in insurance is - CORRECT ANSWER ✔✔Coverage by endorsement. What is the maximum amount of protection available to insureds under the Pennsylvania Property and Casualty Insurance Guaranty Association? - CORRECT ANSWER ✔✔The amount of loss up to the amount of coverage in the original policy, not to exceed $300,000 (per claimant)
Questions and Answers Part one ( Latest
A mortgage company is named as a loss payee on the insured's homeowners policy, under the standard mortgage clause. If the insured suffers a loss due to a fire, which of the following is true? - CORRECT ANSWER ✔✔The loss is payable to the insured and the mortgagee. With regards to a homeowners policy, which coverage provides for indirect or consequential losses? - CORRECT ANSWER ✔✔Coverage D To be eligible for businessowners policy (BOP) coverage, an office building CANNOT be higher than - CORRECT ANSWER ✔✔6 stories. How soon after the due date should the insurer pay the agent appointment fees? - CORRECT ANSWER ✔✔Within 30 days Which of the following is the federal body that regulates truckers who travel across state lines? - CORRECT ANSWER ✔✔Federal Motor Carrier Safety Administration What is not a consideration when paying an inland marine claim? - CORRECT ANSWER ✔✔Market value when the property was first purchased
Questions and Answers Part one ( Latest
Which of the following symbols is available to an insured with vehicles subject to no-fault coverage? - CORRECT ANSWER ✔✔Symbol 5 A type of policy that is used to provide a specific amount of replacement cost for a given risk after it has been destroyed is called a(n) - CORRECT ANSWER ✔✔Valued policy. In terms of parties to a contract, which of the following does NOT describe a competent party? - CORRECT ANSWER ✔✔The person must have at least completed secondary education. An individual's construction company leaves mobile equipment and construction machinery on the job site until the project is completed. What could this individual use to insure it? - CORRECT ANSWER ✔✔Contractors equipment floater If an insured lives in a high-risk area and can't find an insurer that will cover his/her property, which of the following would most likely provide coverage? - CORRECT ANSWER ✔✔The FAIR Plan
Questions and Answers Part one ( Latest
If an insurer changes a form that it uses to transact insurance, it must do which of the following? - CORRECT ANSWER ✔✔File the form with the Commissioner for approval Which of the following is NOT a duty of the employer/insured if an injury occurs at the workplace? - CORRECT ANSWER ✔✔Make voluntary payments for treatment of the worker's injury An insured has a personal property replacement cost endorsement under her homeowners policy. If an expensive painting and an antique chair are stolen from the insured's home, what will the insured receive on the claim under that endorsement? - CORRECT ANSWER ✔✔Nothing Which inland marine form would provide the best protection for a dry cleaning company against loss or damage to their customer's property while in the care, custody, and control of the dry cleaners? - CORRECT ANSWER ✔✔Bailee's customer policy The medical payments coverage in a personal auto policy will pay reasonable medical expenses for all of the following EXCEPT - CORRECT ANSWER ✔✔The insured is injured while exiting a friend's mobile home.
Questions and Answers Part one ( Latest
Damage to insured property caused by earth movement or earthquake is covered under which of the following homeowners forms? - CORRECT ANSWER ✔✔None What is the limit for the forgery or alteration coverage in the businessowners policy? - CORRECT ANSWER ✔✔$2, The type of professional liability coverage a medical doctor needs is - CORRECT ANSWER ✔✔Malpractice coverage. An insured hits a deer and crashes his car into a tree. The total damage to the vehicle is $6,000. How will this loss be covered? - CORRECT ANSWER ✔✔$6,000 would be paid under other-than-collision coverage. In the computer fraud crime coverage form, what limit is placed on each occurrence of the loss of manuscripts, drawings, or records? - CORRECT ANSWER ✔✔$5, What was created to keep telemarketers from calling consumers who do not wish contacted? - CORRECT ANSWER ✔✔National Do Not Call Registry
Questions and Answers Part one ( Latest
According to the privacy of consumer financial information regulation, if a consumer decides to opt out, this means - CORRECT ANSWER ✔✔The consumer directs the licensee not to disclose the consumer's nonpublic personal financial information to a third party. The insured with a homeowners policy has had damage to his property caused by a volcano. Which of the following is true? - CORRECT ANSWER ✔✔All volcanic eruptions within a 72-hour period will be considered one occurrence. A trucking company owns a large fleet of trucks that transport oil across state lines. According to the financial responsibility requirements set by the Motor Carrier Act of 1980, what is the minimum amount of insurance the company must carry on vehicles that transport oil? - CORRECT ANSWER ✔✔$1 million Which of the following would be included in the farm liability coverage forms? - CORRECT ANSWER ✔✔Bodily injury to a residence employee In which of the following situations would the jewelers block extension cover a loss? - CORRECT ANSWER ✔✔A jeweler fixes a necklace and
