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Coverage for water backup or sump pump overflow is excluded from
the Dwelling Policy. However, with the purchase of the water backup
and sump pump overflow endorsement, coverage for up to $5,000 in
loss or damage can be provided for an additional premium. What is the
deductible associated with this coverage? - ANSWER -$250
Coverage for up to $5,000 in loss or damage, subject to a $250
deductible, can be provided for an additional premium with this
endorsement.
An insured relocated to another state for work. However, she still owns
and insures a house in this state, but has had no one living in it for 3
months. She is also storing some furniture and clothes in the house.
From an insurance standpoint, the insured's house is considered -
ANSWER -Unoccupied
Unoccupancy refers to an insured structure in which no people have
been living or working within the required period of time, but the
structure contains contents.
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Individuals in the business of selling construction equipment and
mobile equipment should insure with a/an - ANSWER -Equipment
dealers coverage form
An equipment dealer's coverage form covers a dealer's stock in trade
consisting primarily of mobile agricultural equipment and construction
equipment. It also covers property of others in the dealer's care,
custody, or control. It excludes coverage for autos, motorcycles, aircraft,
and watercraft.
All of the following are true regarding deposit premium - ANSWER -It
must be paid in advance.
It is an estimated premium paid at the policy issue.
It could be adjusted by the audit.
Deposit premium is an estimated premium paid in advance at the time
the policy is issued that may be adjusted by the audit based on actual
exposures.
Which of the following would NOT qualify as a hired auto?
1) An auto hired by an employer
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2) An Auto leased from a commercial rental company
3) An Auto rented for personal use
4) An Auto borrowed from an employee - ANSWER -An auto borrowed
from an employee
What method of premium computation relates an employer's losses,
payroll, and premiums to the rating bureau's classifications of
operations? - ANSWER -Experience modification factor
The proof of loss statement must be - ANSWER -In writing
For insurance purposes, when an insured loses property to another
because the person used violence or threat of violence to gain the
property, this is defined as - ANSWER -Robbery
What special liability coverages will provide protection to managers of a
corporation for claims arising from a wrongful act committed by the
manager while in an official capacity? - ANSWER -Directors and officers
liability
What is NOT a consideration when paying an inland marine claim?
1) market value when the property was first purchased
2) cost to replace the property
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3) actual cash value on date of loss
4) cost to repair or restore the property - ANSWER -Market value when
the property was first purchased
A plaster has finished a job. What kind of liability coverage would
protect him if the plaster falls and hurts someone because he did not do
the job correctly? - ANSWER -Completed operations
Property insurance that provides $100,000 coverage for a building and
$50,000 coverage for personal property at a single location is called? -
ANSWER -Specific coverage
Frank's steaks furnishes meat to steakhouses. An accident on the
premises causes the building to lose refrigeration for 32 hours. The
state inspectors will not allow the meet in the refrigerator units to be
sold for human consumption, and Frank loses $18,500 in disposing of
the meat coverage under Frank's BOP policy will cover the loss? -
ANSWER -Utility service - direct damage
What type of information would be found in a policy's insuring
agreement?
1) insurer's address
2) location of premises
3) renewal dates
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Coverage for water backup or sump pump overflow is excluded from
the Dwelling Policy. However, with the purchase of the water backup
and sump pump overflow endorsement, coverage for up to $5,000 in
loss or damage can be provided for an additional premium. What is the
deductible associated with this coverage? - ANSWER -$250
Coverage for up to $5,000 in loss or damage, subject to a $250
deductible, can be provided for an additional premium with this
endorsement.
An insured relocated to another state for work. However, she still owns
and insures a house in this state, but has had no one living in it for 3
months. She is also storing some furniture and clothes in the house.
From an insurance standpoint, the insured's house is considered -
ANSWER -Unoccupied
Unoccupancy refers to an insured structure in which no people have
been living or working within the required period of time, but the
structure contains contents.
1|Page
,2|Page
Individuals in the business of selling construction equipment and
mobile equipment should insure with a/an - ANSWER -Equipment
dealers coverage form
An equipment dealer's coverage form covers a dealer's stock in trade
consisting primarily of mobile agricultural equipment and construction
equipment. It also covers property of others in the dealer's care,
custody, or control. It excludes coverage for autos, motorcycles, aircraft,
and watercraft.
All of the following are true regarding deposit premium - ANSWER -It
must be paid in advance.
It is an estimated premium paid at the policy issue.
It could be adjusted by the audit.
Deposit premium is an estimated premium paid in advance at the time
the policy is issued that may be adjusted by the audit based on actual
exposures.
Which of the following would NOT qualify as a hired auto?
1) An auto hired by an employer
2|Page
,3|Page
2) An Auto leased from a commercial rental company
3) An Auto rented for personal use
4) An Auto borrowed from an employee - ANSWER -An auto borrowed
from an employee
What method of premium computation relates an employer's losses,
payroll, and premiums to the rating bureau's classifications of
operations? - ANSWER -Experience modification factor
The proof of loss statement must be - ANSWER -In writing
For insurance purposes, when an insured loses property to another
because the person used violence or threat of violence to gain the
property, this is defined as - ANSWER -Robbery
What special liability coverages will provide protection to managers of a
corporation for claims arising from a wrongful act committed by the
manager while in an official capacity? - ANSWER -Directors and officers
liability
What is NOT a consideration when paying an inland marine claim?
1) market value when the property was first purchased
2) cost to replace the property
3|Page
, 4|Page
3) actual cash value on date of loss
4) cost to repair or restore the property - ANSWER -Market value when
the property was first purchased
A plaster has finished a job. What kind of liability coverage would
protect him if the plaster falls and hurts someone because he did not do
the job correctly? - ANSWER -Completed operations
Property insurance that provides $100,000 coverage for a building and
$50,000 coverage for personal property at a single location is called? -
ANSWER -Specific coverage
Frank's steaks furnishes meat to steakhouses. An accident on the
premises causes the building to lose refrigeration for 32 hours. The
state inspectors will not allow the meet in the refrigerator units to be
sold for human consumption, and Frank loses $18,500 in disposing of
the meat coverage under Frank's BOP policy will cover the loss? -
ANSWER -Utility service - direct damage
What type of information would be found in a policy's insuring
agreement?
1) insurer's address
2) location of premises
3) renewal dates
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