EXAMFX - P&C GUARANTEE EXAM Questions And Answers

A golfer slices a tee shot and the ball goes through the window of a house beside the fairway. The broken glass is paid for by - ANS The golfer's homeowners liability coverage What was the purpose of the Motor Carrier Act of 1980? - ANS To establish financial responsibility requirements for interstate motor carriers How does insurance distribute the financial consequences of individual losses? - ANS It transfers the risk to all persons insured Within how many days of the final disposition of the matter must a producer report administrative actions taken against him or her to the Commissioner? - ANS 30 days What part of the insurance contract describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured? - ANS Insuring agreement All of the following are true regarding a producer's fiduciary responsibilities EXCEPT - ANS Producers may commingle personal funds with company funds Wagering on a sporting event is an example of what type of risk? - ANS Speculative An aleatory contract is based on what kind of exchange? - ANS Unequal exchange of values Which of the following would be covered under a building and personal property coverage form? - ANS Outdoor sign When does the insurer's duty to defend a suit or claim end in a commercial general liability policy? - ANS When loss payments equal the applicable limit of insurance Chris, who is unlicensed, works part-time in her father's insurance agency. She may perform all of the following activities EXCEPT - ANS Collect premium for in-force policies and explain coverages to clients that have existing polices written by her father. A producer continues to use an unapproved trade name for 10 days after being notified by the Commissioner to stop using the unapproved name. What is the maximum fine the producer may face? - ANS $5,000 Late one night on his way home from a local bar, a man runs his covered auto into an insured's car. The man was operating his vehicle while under the influence of alcohol. The insured had no personal injuries, but her car had damage. Her insurance policy paid for the damages to her car. The subrogation provision in her policy allows - ANS The insurer to attempt to recover the damages from the man and/or his insurance company. How long is the period of time in which a licensee must renew his or her license? - ANS 90 days prior to expiration Which of the following would NOT be covered by uninsured motorist coverage? - ANS The insured causes a head-on collision with the car of an uninsured motorist. Which of the following is NOT an example of the company's location of incorporation? - ANS Authorized What is an insured contract? - ANS Those contracts that are automatically covered under the exposure of premises coverage in a general liability insurance contract. Guaranteeing future dividends is considered to be an unfair or deceptive act known as - ANS Misrepresentation An individual skilled in the process of selecting risks that will not create adverse selection for an insurance company is called - ANS Underwriter. Homeowners policies permit all of the following incidental occupancies EXCEPT - ANS A retail sales operation run by the insured from his garage. What is the main distinction between a hired auto and a nonowned auto? - ANS Who owns the auto An automobile policy has limits of 100/300/50. The number 100 means - ANS The maximum limit for bodily injury claims that can be paid for one person. An agent tells an insured that if he replaces his current insurance policy with a newer one, his dividends will be higher and his premiums will be slightly lower. The policy, however, would not offer either one of these things. What type of misrepresentations is being committed? - ANS Twisting