CompuCram Exam
The fine and/or penalty for transacting insurance without a license is - ✔️✔️$25 to
$500 and 6 months in jail.
Under the Terrorism Risk Insurance Act, what is dollar amount considered to be a
certified act of terrorism as determined by the US Treasury? - ✔️✔️$5 million in
collective damages
If the Superintendent of Insurance is not responsible for promulgating the rules and
regulations of insurance how is it done? - ✔️✔️submitting the change to the legislature
for approval.
Is asking the insurer to pay for your TV that was stolen out of state, an example of fraud
under state and federal law - ✔️✔️No
Rules have to be followed in order for an insurance contract to work. This is an example
of a - ✔️✔️Conditional Contract.
unilateral is what in terms of a contract - ✔️✔️A contract in which only one party - the
insurer - makes an enforceable promise is said to be
What part of an insurance contract specifies the perils insured against? - ✔️✔️Insuring
agreement
The policy period of a policy is based on: - ✔️✔️Standard time
In most policies, the definition of "insured" includes - ✔️✔️the named insured's spouse,
but only if a resident of the residence premises.
What statement is true about an insured who wishes to cancel her insurance policy? -
✔️✔️She may cancel the policy at any time.
The coverage limit for a dwelling under construction is the: - ✔️✔️Actual value on the
date of completion
A dwelling is insured for $60,000 and its contents for $30,000. According to the DP-1,
what part of the insurance may the insured have applied to rental value coverage? -
✔️✔️20% of the coverage on the dwelling
What can be endorsed for extra premium. - ✔️✔️Comprehensive Personal Liability
, Damage to covered property caused by glass breakage is covered where? -
✔️✔️covered in the DP-2 and DP-3 forms.
What is NOT a reason to sell your client a DP-3 as opposed to a DP-1 policy? - ✔️✔️to
provide liability protection
Under the homeowner forms, how much will be paid under the claims expense for loss
of earnings by the insured to assist the insurer in the investigation or defense of a
claim? - ✔️✔️$250 per day
Your home is insured for $80,000 under a Modified Coverage Form (HO-8). You have a
partial loss totaling $25,000 to your dwelling. The loss would be payable as -
✔️✔️actual cash value less deductible.
The maximum amount payable under the homeowners policy for theft of silverware is -
✔️✔️$2,500
When Tony rents out his house to Sue for $1700 per month, Sue informs her insurance
company, who add Tony as an additional insured on her renter's insurance policy. A few
months later, Sue leaves town without notice taking all of her things. Tony may now: -
✔️✔️Remove his name from Sue's policy
Contents are covered anywhere in the world unless they are regularly or permanently
located in another residence. If so, what is the limit of coverage on those items regularly
off the premises? - ✔️✔️10% of the Coverage C limit
The named insured son damages the family's garage with his car. Would it be
recoverable under the liability coverage of the homeowners policy? - ✔️✔️No
An HO-3 ('11) would pay for the theft of - ✔️✔️your suitcase stolen during your
vacation to Germany
Roxanne bought a 50 inch TV four years ago for $2400. During the storm, her house
was struck by lightning and the current fried her TV. The TV depreciates at $400 per
year and a similar TV cost $1200 today. Assuming Roxanne's homeowner policy has a
replacement cost endorsement for personal property, how much can she expect to
receive as indemnification for damaged TV? - ✔️✔️$1200 - The replacement cost
endorsement removes the deduction for depreciation so disregarding any deductible,
Roxanne would receive $1200 which is the cost to replace the TV at the time of the
loss.
Property normally kept at a residence other than the residence premises is covered for
____ % of the coverage C limit or $_____ whichever is greater - ✔️✔️10% or $1,000
whichever is greater
The fine and/or penalty for transacting insurance without a license is - ✔️✔️$25 to
$500 and 6 months in jail.
Under the Terrorism Risk Insurance Act, what is dollar amount considered to be a
certified act of terrorism as determined by the US Treasury? - ✔️✔️$5 million in
collective damages
If the Superintendent of Insurance is not responsible for promulgating the rules and
regulations of insurance how is it done? - ✔️✔️submitting the change to the legislature
for approval.
Is asking the insurer to pay for your TV that was stolen out of state, an example of fraud
under state and federal law - ✔️✔️No
Rules have to be followed in order for an insurance contract to work. This is an example
of a - ✔️✔️Conditional Contract.
unilateral is what in terms of a contract - ✔️✔️A contract in which only one party - the
insurer - makes an enforceable promise is said to be
What part of an insurance contract specifies the perils insured against? - ✔️✔️Insuring
agreement
The policy period of a policy is based on: - ✔️✔️Standard time
In most policies, the definition of "insured" includes - ✔️✔️the named insured's spouse,
but only if a resident of the residence premises.
What statement is true about an insured who wishes to cancel her insurance policy? -
✔️✔️She may cancel the policy at any time.
The coverage limit for a dwelling under construction is the: - ✔️✔️Actual value on the
date of completion
A dwelling is insured for $60,000 and its contents for $30,000. According to the DP-1,
what part of the insurance may the insured have applied to rental value coverage? -
✔️✔️20% of the coverage on the dwelling
What can be endorsed for extra premium. - ✔️✔️Comprehensive Personal Liability
, Damage to covered property caused by glass breakage is covered where? -
✔️✔️covered in the DP-2 and DP-3 forms.
What is NOT a reason to sell your client a DP-3 as opposed to a DP-1 policy? - ✔️✔️to
provide liability protection
Under the homeowner forms, how much will be paid under the claims expense for loss
of earnings by the insured to assist the insurer in the investigation or defense of a
claim? - ✔️✔️$250 per day
Your home is insured for $80,000 under a Modified Coverage Form (HO-8). You have a
partial loss totaling $25,000 to your dwelling. The loss would be payable as -
✔️✔️actual cash value less deductible.
The maximum amount payable under the homeowners policy for theft of silverware is -
✔️✔️$2,500
When Tony rents out his house to Sue for $1700 per month, Sue informs her insurance
company, who add Tony as an additional insured on her renter's insurance policy. A few
months later, Sue leaves town without notice taking all of her things. Tony may now: -
✔️✔️Remove his name from Sue's policy
Contents are covered anywhere in the world unless they are regularly or permanently
located in another residence. If so, what is the limit of coverage on those items regularly
off the premises? - ✔️✔️10% of the Coverage C limit
The named insured son damages the family's garage with his car. Would it be
recoverable under the liability coverage of the homeowners policy? - ✔️✔️No
An HO-3 ('11) would pay for the theft of - ✔️✔️your suitcase stolen during your
vacation to Germany
Roxanne bought a 50 inch TV four years ago for $2400. During the storm, her house
was struck by lightning and the current fried her TV. The TV depreciates at $400 per
year and a similar TV cost $1200 today. Assuming Roxanne's homeowner policy has a
replacement cost endorsement for personal property, how much can she expect to
receive as indemnification for damaged TV? - ✔️✔️$1200 - The replacement cost
endorsement removes the deduction for depreciation so disregarding any deductible,
Roxanne would receive $1200 which is the cost to replace the TV at the time of the
loss.
Property normally kept at a residence other than the residence premises is covered for
____ % of the coverage C limit or $_____ whichever is greater - ✔️✔️10% or $1,000
whichever is greater
