Exam FX Study Exam Questions With Complete Solutions.

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. Under the coverage of which of the following liability policies may an insured require the insurer to defend a claim? correct answer: Professional liability Which of the following is a method of claim settlement used in casualty insurance when the insured and insurer cannot agree on how to settle a claim? correct answer: Arbitration A bond is written for a set limit, and the surety will be liable only for this amount of the limit. This limit is known as the correct answer: Penalty. Which federal act provides benefits to injured civilians who are employed by the federal government? correct answer: Federal Employees Compensation Act Which of the following types of valuation works best for property whose value does not fluctuate much? correct answer: Agreed value While an insured was towing a utility trailer with his auto, the trailer came loose and ran into a store front. What part of the insured's auto policy would pay for the damage to the store? correct answer: Property damage liability When the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss, the coverage is said to be written as correct answer: Stated amount. Who is NOT considered an employee in a commercial general liability (CGL) policy correct answer: Temporary worker Which one of the following symbols used in business auto coverage is correctly described? correct answer: Symbol 9 - nonowned autos only Symbol 9 - nonowned autos only correct answer: Mechanical breakdown n which of the following types of property valuation will the policy pay the full value as specified on the policy schedule, regardless of the insured property's appreciation or depreciation? correct answer: Agreed value What type of license does an individual need to obtain in order to solicit and sell insurance? correct answer: Producer's license An insurance financing company must provide to insured, full and complete disclosure of the terms and conditions of the finance agreement not later than correct answer: The time the first payment notice is sent to the insured.