Practice Exam Questions with Accurate Answers

What types of business are excluded from a BOP? - ANSWER-banks, auto dealers, and bars Which of the following risks is eligible for coverage under a businessowners policy? - ANSWER-Condos The authority granted to an agent through the agent's contract is referred to as - ANSWER-Express authority Which of the following dwelling policy forms primarily insures a structure on an actual cash value basis? - ANSWER-DP-1 Under the workers compensation system, who is responsible for the expenses resulting from work-related injuries and occupational diseases? - ANSWER-the employer, regardless of whether it was at fault for the injury or disease When would uninsured motorist coverage apply? - ANSWER-When the other party is legally liable but has no insurance The pro rata liability clause is designed to protect the principle of - ANSWER-Indemnity Under the HO-4 and HO-6 homeowners policy forms, property is insured against - ANSWER-broad form perils According to the standard mortgage clause, who has the right to bring a suit in their own name to recover damages, pay policy premiums, and submit a proof of loss? - ANSWER-Mortgagee An insurance producer has not been appointed to an insurance company. Who is the producer considered to represent? - ANSWER-the client