Fred Loya Limited Lines State Test
What course of action does a party to a contract have if the other party is found to be in
breach of that contract? - correct answer-Damages for breach, reasonable attorney fees,
and costs.
A representation in an insurance contract qualifies as of the following?
-an amendment
-an expressed warranty
-a policy provision
-an implied warranty - correct answer-implied warranty
What does it mean if an agent's license is inactive? - correct answer-the agent cannot
transact any insurance business for which is valid, active license is required
In the State of CA, no rate will remain in effect if it is considered to be any of the following,
EXCEPT:
-impartial
-unfairly discriminatory
-excessive
-inadequate - correct answer-Impartial
The amount paid for damage property which is equal to the price for which it could have
been sold is:
-Actual Cash Value
-Replacement Cost
-Stated Amount
-Market Value - correct answer-Market value
The limited Mexico endorsement applies to trips to Mexico with a duration of:
-7 days or less
-10 days or less
-2 days or less
-14 days or less - correct answer-10 days or less
Which of the following types of coverage would pay for losses which occurred during the
policy period and are found for up to one year after policy termination?
-Occurrence
-Loss Sustained
-Claims made
-Discovery - correct answer-Loss sustained
, What must an insurer do who accepts an application from an agent who is not specifically
appointed by that insurer, and then issues a policy from that application ? - correct
answer-forward to the commissioner a notice of appointment with 14 days of receipt of
application
If an insured borrow's a neighbor's vehicle to run a personal errand, how do the policies
respond in the event of an auto incident? - correct answer-The neighbor's policy is primary
and the driver's policy is excess
The equipment dealer's coverage form covers all of the following types of property, EXCEPT:
- correct answer-Motor vehicles designed for highway use
Which type of exposure can be best defined as a condition or situation where the exposure
to financial loss is presented to an individual or family from causes such as injury, disability,
death, sickness, or unemployment.
-Personnel loss exposure
-Personal property loss exposure
-Personal loss exposure
-Liability loss exposure - correct answer-Personal Loss Exposure
Which of the following is also known as a human loss exposure?
-Personnel loss exposure
-Personal loss exposure
-Indirect loss exposure
-Liability loss exposure - correct answer-Personal loss Exporsure
If a tenant is insured under a building personal property coverage form, when is the property
considered vacant? - correct answer-when there is insufficient business personal property
present to conduct customary operations.
It is a violation of the CA Insurance Code to act as a producer for a non-admitted carrier
unless: - correct answer-The producer is a surplus lines broker
In CA, excess and surplus lines coverage need to be placed through:
-an admitted insurer
-an excess a surplus lines solicitor
-Lloyd's of London
-A surplus lines broker - correct answer-surplus lines broker
Under a scheduled personal property endorsement, loss to stamps are excluded when they
are:
-located in California
-Being shipped with a freight company
What course of action does a party to a contract have if the other party is found to be in
breach of that contract? - correct answer-Damages for breach, reasonable attorney fees,
and costs.
A representation in an insurance contract qualifies as of the following?
-an amendment
-an expressed warranty
-a policy provision
-an implied warranty - correct answer-implied warranty
What does it mean if an agent's license is inactive? - correct answer-the agent cannot
transact any insurance business for which is valid, active license is required
In the State of CA, no rate will remain in effect if it is considered to be any of the following,
EXCEPT:
-impartial
-unfairly discriminatory
-excessive
-inadequate - correct answer-Impartial
The amount paid for damage property which is equal to the price for which it could have
been sold is:
-Actual Cash Value
-Replacement Cost
-Stated Amount
-Market Value - correct answer-Market value
The limited Mexico endorsement applies to trips to Mexico with a duration of:
-7 days or less
-10 days or less
-2 days or less
-14 days or less - correct answer-10 days or less
Which of the following types of coverage would pay for losses which occurred during the
policy period and are found for up to one year after policy termination?
-Occurrence
-Loss Sustained
-Claims made
-Discovery - correct answer-Loss sustained
, What must an insurer do who accepts an application from an agent who is not specifically
appointed by that insurer, and then issues a policy from that application ? - correct
answer-forward to the commissioner a notice of appointment with 14 days of receipt of
application
If an insured borrow's a neighbor's vehicle to run a personal errand, how do the policies
respond in the event of an auto incident? - correct answer-The neighbor's policy is primary
and the driver's policy is excess
The equipment dealer's coverage form covers all of the following types of property, EXCEPT:
- correct answer-Motor vehicles designed for highway use
Which type of exposure can be best defined as a condition or situation where the exposure
to financial loss is presented to an individual or family from causes such as injury, disability,
death, sickness, or unemployment.
-Personnel loss exposure
-Personal property loss exposure
-Personal loss exposure
-Liability loss exposure - correct answer-Personal Loss Exposure
Which of the following is also known as a human loss exposure?
-Personnel loss exposure
-Personal loss exposure
-Indirect loss exposure
-Liability loss exposure - correct answer-Personal loss Exporsure
If a tenant is insured under a building personal property coverage form, when is the property
considered vacant? - correct answer-when there is insufficient business personal property
present to conduct customary operations.
It is a violation of the CA Insurance Code to act as a producer for a non-admitted carrier
unless: - correct answer-The producer is a surplus lines broker
In CA, excess and surplus lines coverage need to be placed through:
-an admitted insurer
-an excess a surplus lines solicitor
-Lloyd's of London
-A surplus lines broker - correct answer-surplus lines broker
Under a scheduled personal property endorsement, loss to stamps are excluded when they
are:
-located in California
-Being shipped with a freight company
