AD BANKER PROPERTY AND CASUALTY
COMPREHENSIVE EXAM
Temporary Total Disability may be described as: - Answers - Inability to return to any
employment while recovering
Supplementary Payment under Part A of the Personal Auto Policy? - Answers - A Up to
$250 for the cost of bail bonds
B Payment for lost earnings up to $200/day
C Medical payments for an occupant of an insured vehicle (Not included)(*)
D Reasonable expenses incurred at the insurer's request
The Commercial basic Cause of Loss Form does not cover which of the following
perils? - Answers - A Sinkhole collapse
B Sprinkler leakage
C Smoke
D Earth Movement ( Not Covered )(*)
Which of the following workers would be eligible for Workers' Compensation? - Answers
- A Domestic employees
B Part-time worker (*)
C Casual laborer
D Farm laborer
Which of the following is true regarding the Self-Insured Workers' Compensation
Program? - Answers - A
Sometimes large employers are attracted to self-insurance plans because losses can
be predictable and benefits are capped by statute (*)
B
Self-insurance for Workers' Compensation is most generally used by smaller employers,
who cannot afford to purchase Workers' Compensation insurance
C
Benefits under self-insurance differ from those provided by Workers' Compensation
insurers
D
Self-insurance is allowed in all states
Choose the false statement regarding the application of coverage under the Products
Exposure Liability Coverage. - Answers - A
Coverage applies to damage to the product itself (*)
B
Coverage applies to property damage the product causes
C
Coverage applies to bodily injury the product causes
,D
Coverage applies to bodily injury occurring away from premises the insured owns or
rents
When his client's homeowners policy application is rejected by an insurance company
due to underwriting rules, an insurance agent may request coverage under which of the
following? - Answers - A Write Your Own Homeowners Program
B FAIR Plan (*)
C Assigned Risk Plan
D Joint Underwriting Association
Custodian - Answers - keeper, guardian, conservator
The custodian is the insured or any of the insured's partners or employees, while having
care and custody of covered property inside the premises, excluding any person acting
as a watchperson or janitor.
The Other Insurance condition - Answers - specifies the process to be followed when
more than one policy covers the same loss. For property insurance, losses are settled
on a pro rata basis, where each policy pays no more than its pro rata share of the loss.
Section III of the Businessowners Coverage Form includes: - Answers - Common Policy
Conditions
Non-admitted - Answers - An insurer that is not approved by the state Department of
Insurance to transact insurance is called
An admitted - Answers - Insurer has a Certificate of Authority issued by the Department
or Division of Insurance to transact insurance.
An insured under the CGL policy - Answers - The spouse of any individual or partner
designated on the Declarations is also an insured.
Valuable Papers and Records Floater - Answers - A Maps
B Blueprints
C
Securities (Money and securities are not covered under the Valuable Papers and
Records Floater.)(*)
D Mortgages
Which of the following would not be covered under an Installation Floater? - Answers -
A Electrical equipment
B Carpeting
C Construction equipment ( Not Covered )(*)
D Elevators
,Under the PAP, a temporary substitute would be covered if used: - Answers - A
temporary substitute is a covered auto as long as an owned car is out of normal use
due to breakdown, repair, servicing, loss, or destruction.
preservation of property under the Building and Personal Property Coverage Form? -
Answers - The policy provides open perils coverage for 30 days on insured property that
is being moved or temporarily stored at another location because of the endangerment
of a covered peril
Employee theft or dishonesty
a commercial crime policy - Answers - covers loss of, or damage to, money, securities,
and other property committed by an employee, whether acting alone or in collusion with
others, that results directly from theft.
After noticing the disappearance of office supplies from within a private office facility is
an example.
In which section of the Workers' Compensation and Employer Liability policy would the
policy conditions be found? - Answers - The policy Workers' Compensation contains the
following parts: General Section, Part One - Workers' Compensation Insurance, Part
Two - Employers Liability Insurance, Part Three - Other States Insurance, Part Four -
Your Duties if Injury Occurs, Part Five - Premium, Part Six - (Conditions).
Which of the following powers describes the authority stated in an agent's agency
contract? - Answers - Express
The agency contract, which exists between an insurer and a producer, sets forth the
powers that are granted to the producer. These powers are referred to as express
because they are directly stated in the contract.
Pure Risk
Insurance is designed to provide protection against which of the following? - Answers -
With pure risk, the only consideration is the possibility of loss or no loss. By contrast,
speculative entails a chance of gain as well as a chance of loss.
Contribution by equal shares - Answers - Under a contribution by equal shares
provision, each insurer pays an equal amount to the loss settlement until the loss is
paid, or until each insurer has exhausted its limits of insurance, whichever comes first.
The policy limit - Answers - A total loss under a valued policy is payable based on the
policy limit listed on the declarations page.
An insured owns a home with a replacement cost of $300,000 and a market value of
$250,000. What is the most a valued policy will pay in the event of a total loss without a
deductible( is an example )
Occurrence - Answers - An event that happens
An occurrence form provides coverage for losses that take place during the policy
period.
, It doesn't matter when the loss is reported; what matters is when the loss occurred.
The key in this form is the date the loss actually happened and if it happened when the
policy was in effect.
Supplementary payments under Part A of the Personal Auto Policy - Answers - Only
bail bonds is a supplementary payment. The policy limit is $250.
$100 for bail bonds
Choose the statement that is false about the FAIR plan. - Answers - A FAIR means Fair
Access to Insurance Requirements
B It provides basic property coverage to those who have been rejected in the standard
market
C It provides property coverage to both residential and farm dwellings (Farm property is
not eligible)(*)
D Agents cannot bind FAIR plan coverage
A physical hazard - Answers - A physical condition that increases the chance of loss.
Wet leaves on a sidewalk are considered a Physical Hazard.
A commercial crime policy form written with the Robbery or Safe Burglary of Other
Property insuring agreement would cover which of the following? - Answers - The
Robbery or Safe Burglary of Other Property insuring agreement does not cover cash, or
losses outside the insured premises. Employee theft of any kind would be covered
under the Employee Theft and Dishonesty insuring agreement.
Jewelry store windows and glass display cases are destroyed during a burglary is an
example.
The first named insured - Answers - The individual whose name appears first on the
policy's declaration.
In the newer forms, the insurer may satisfy contractual duties by notice to the first
named insured, rather than requiring notice to all named insureds.
The Residence Premises
Under Section II of the Homeowners Policy - Answers - The Residence Premises is
either a 1, 2, 3, or 4 family dwelling in which the named insured resides. The residence
premises also includes other structures and the grounds at that location, such as the 5
acres upon which the insured sits, including the barn, detached garage, and swimming
pool.
The Commissioner may revoke, suspend, or refuse to renew a license - Answers - If a
licensee issues insufficient coverage to an individual through apparent authority, this is
not grounds for license suspension, non-renewal or revocation. Being convicted of a
felony, having a license suspended or revoked in another state and failing to pay
income taxes are all grounds for license suspension, non-renewal or revocation.
COMPREHENSIVE EXAM
Temporary Total Disability may be described as: - Answers - Inability to return to any
employment while recovering
Supplementary Payment under Part A of the Personal Auto Policy? - Answers - A Up to
$250 for the cost of bail bonds
B Payment for lost earnings up to $200/day
C Medical payments for an occupant of an insured vehicle (Not included)(*)
D Reasonable expenses incurred at the insurer's request
The Commercial basic Cause of Loss Form does not cover which of the following
perils? - Answers - A Sinkhole collapse
B Sprinkler leakage
C Smoke
D Earth Movement ( Not Covered )(*)
Which of the following workers would be eligible for Workers' Compensation? - Answers
- A Domestic employees
B Part-time worker (*)
C Casual laborer
D Farm laborer
Which of the following is true regarding the Self-Insured Workers' Compensation
Program? - Answers - A
Sometimes large employers are attracted to self-insurance plans because losses can
be predictable and benefits are capped by statute (*)
B
Self-insurance for Workers' Compensation is most generally used by smaller employers,
who cannot afford to purchase Workers' Compensation insurance
C
Benefits under self-insurance differ from those provided by Workers' Compensation
insurers
D
Self-insurance is allowed in all states
Choose the false statement regarding the application of coverage under the Products
Exposure Liability Coverage. - Answers - A
Coverage applies to damage to the product itself (*)
B
Coverage applies to property damage the product causes
C
Coverage applies to bodily injury the product causes
,D
Coverage applies to bodily injury occurring away from premises the insured owns or
rents
When his client's homeowners policy application is rejected by an insurance company
due to underwriting rules, an insurance agent may request coverage under which of the
following? - Answers - A Write Your Own Homeowners Program
B FAIR Plan (*)
C Assigned Risk Plan
D Joint Underwriting Association
Custodian - Answers - keeper, guardian, conservator
The custodian is the insured or any of the insured's partners or employees, while having
care and custody of covered property inside the premises, excluding any person acting
as a watchperson or janitor.
The Other Insurance condition - Answers - specifies the process to be followed when
more than one policy covers the same loss. For property insurance, losses are settled
on a pro rata basis, where each policy pays no more than its pro rata share of the loss.
Section III of the Businessowners Coverage Form includes: - Answers - Common Policy
Conditions
Non-admitted - Answers - An insurer that is not approved by the state Department of
Insurance to transact insurance is called
An admitted - Answers - Insurer has a Certificate of Authority issued by the Department
or Division of Insurance to transact insurance.
An insured under the CGL policy - Answers - The spouse of any individual or partner
designated on the Declarations is also an insured.
Valuable Papers and Records Floater - Answers - A Maps
B Blueprints
C
Securities (Money and securities are not covered under the Valuable Papers and
Records Floater.)(*)
D Mortgages
Which of the following would not be covered under an Installation Floater? - Answers -
A Electrical equipment
B Carpeting
C Construction equipment ( Not Covered )(*)
D Elevators
,Under the PAP, a temporary substitute would be covered if used: - Answers - A
temporary substitute is a covered auto as long as an owned car is out of normal use
due to breakdown, repair, servicing, loss, or destruction.
preservation of property under the Building and Personal Property Coverage Form? -
Answers - The policy provides open perils coverage for 30 days on insured property that
is being moved or temporarily stored at another location because of the endangerment
of a covered peril
Employee theft or dishonesty
a commercial crime policy - Answers - covers loss of, or damage to, money, securities,
and other property committed by an employee, whether acting alone or in collusion with
others, that results directly from theft.
After noticing the disappearance of office supplies from within a private office facility is
an example.
In which section of the Workers' Compensation and Employer Liability policy would the
policy conditions be found? - Answers - The policy Workers' Compensation contains the
following parts: General Section, Part One - Workers' Compensation Insurance, Part
Two - Employers Liability Insurance, Part Three - Other States Insurance, Part Four -
Your Duties if Injury Occurs, Part Five - Premium, Part Six - (Conditions).
Which of the following powers describes the authority stated in an agent's agency
contract? - Answers - Express
The agency contract, which exists between an insurer and a producer, sets forth the
powers that are granted to the producer. These powers are referred to as express
because they are directly stated in the contract.
Pure Risk
Insurance is designed to provide protection against which of the following? - Answers -
With pure risk, the only consideration is the possibility of loss or no loss. By contrast,
speculative entails a chance of gain as well as a chance of loss.
Contribution by equal shares - Answers - Under a contribution by equal shares
provision, each insurer pays an equal amount to the loss settlement until the loss is
paid, or until each insurer has exhausted its limits of insurance, whichever comes first.
The policy limit - Answers - A total loss under a valued policy is payable based on the
policy limit listed on the declarations page.
An insured owns a home with a replacement cost of $300,000 and a market value of
$250,000. What is the most a valued policy will pay in the event of a total loss without a
deductible( is an example )
Occurrence - Answers - An event that happens
An occurrence form provides coverage for losses that take place during the policy
period.
, It doesn't matter when the loss is reported; what matters is when the loss occurred.
The key in this form is the date the loss actually happened and if it happened when the
policy was in effect.
Supplementary payments under Part A of the Personal Auto Policy - Answers - Only
bail bonds is a supplementary payment. The policy limit is $250.
$100 for bail bonds
Choose the statement that is false about the FAIR plan. - Answers - A FAIR means Fair
Access to Insurance Requirements
B It provides basic property coverage to those who have been rejected in the standard
market
C It provides property coverage to both residential and farm dwellings (Farm property is
not eligible)(*)
D Agents cannot bind FAIR plan coverage
A physical hazard - Answers - A physical condition that increases the chance of loss.
Wet leaves on a sidewalk are considered a Physical Hazard.
A commercial crime policy form written with the Robbery or Safe Burglary of Other
Property insuring agreement would cover which of the following? - Answers - The
Robbery or Safe Burglary of Other Property insuring agreement does not cover cash, or
losses outside the insured premises. Employee theft of any kind would be covered
under the Employee Theft and Dishonesty insuring agreement.
Jewelry store windows and glass display cases are destroyed during a burglary is an
example.
The first named insured - Answers - The individual whose name appears first on the
policy's declaration.
In the newer forms, the insurer may satisfy contractual duties by notice to the first
named insured, rather than requiring notice to all named insureds.
The Residence Premises
Under Section II of the Homeowners Policy - Answers - The Residence Premises is
either a 1, 2, 3, or 4 family dwelling in which the named insured resides. The residence
premises also includes other structures and the grounds at that location, such as the 5
acres upon which the insured sits, including the barn, detached garage, and swimming
pool.
The Commissioner may revoke, suspend, or refuse to renew a license - Answers - If a
licensee issues insufficient coverage to an individual through apparent authority, this is
not grounds for license suspension, non-renewal or revocation. Being convicted of a
felony, having a license suspended or revoked in another state and failing to pay
income taxes are all grounds for license suspension, non-renewal or revocation.
