PSI Property and Casualty

PSI Property and Casualty What will happen if a house covered by a standard mortgage clause is a total loss? - The insurer pays the mortgage according to the mortgagee's interest in the property Which coverage form would provide coverage for all incoming and outgoing shipments? - Annual transit Tom's Truck Service's vehicle is stolen. The policyholder may obtain coverage for transportation expenses subject to which of the following limits? - $20/day. $600 max Crunchy Flakes Cereal Company shipped some of its product in faulty containers that caused spoilage. This resulted in some consumers becoming ill. If the company is sued for this event, it would be an example of a - Product liability claim What fundamental principle in property insurance holds that when there is an unbroken connection between occurrence and damage that grows out of the occurrence, then the resultant damage is all a part of the occurrence? - Proximate cause An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of - rebating Which of the following could be covered by a HO policy - an oriental rug in an on premises apartment (HO Does NOT apply to animals, cars, and tenant property) What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine policy? - $10,000 for all expenses incurred during a 12 month period Persons covered under an insurance policy, whether named or not, are known as the - insured The legal process that gives an insurer, after a payment of a loss, the right to seek recovery from a third party that was responsible for the loss is known as: - subrogation Unfair Claims Settlement Practices - advise the insured that if the claim goes to settlement, the insured would get less that what is currently being offered According to the loss payment condition in HO policies, losses must be paid within how many days of the insurer receiving proof of loss? - 60 A licensee serving in the military is unable to fulfill her CE requirement. What would the licensee have to do to renew her license? - licensee may submit a request to the department to have requirements and fees waived. The Dept will then determine if the request is permissible To be eligible for coverage under the National Flood Insurance Program, an insured must live in which community: - Met the minimum floodplain management guidelines ABC Trucking hauls products for Acme, Inc. as a contract carrier. On one shipment, the driver stopped at a truck stop for lunch. Leaving the truck in the parking lot, he made certain that the truck was locked before leaving it. Upon returning to the truck, he discovered that someone had broken into the truck and stolen the cargo. Is ABC legally liable for this loss? - Not liable bc taken reasonable measures to protect property by locking truck. Since ABC is a contract carrier, not liable. If common carrier would have been liable. Which of the following is a mandatory part fo the insurance policy that varies with each individual policy? - Declarations Erroneous Publishing copied all the material from Angels Inc.'s book. The only changes made by Erroneous were to rename the title and chapters, put a different cover on it, and distribute it as its own. Angels Inc. files a claim against Erroneous and seeks damages. Will a commercial general liability policy cover the claim? - No, because that is copyright infringement, not slander from advertising symbols used in business auto coverage - Symbol 1 = any auto symbol 2 = owned autos only Symbol 7 = Specifically described autos only