Insurance Licensing Review Test
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1. Which of the following is an avail- Utility interruption
able coverage option under the
equipment breakdown protection (The coverages an insured may select include prop-
coverage form? erty damage, expediting expenses, business income
and/or extra expense, spoilage damage, utility inter-
ruption, and brands and labels.)
2. The builders risk reporting form in- An amount that increases at intervals to correspond
sures a building under construc- with the increasing value of the building.
tion for
(When the reporting form is attached to the builders
risk coverage form, the insured may purchase a smaller
amount of insurance that gradually increases as the
value of the building under construction increases. The
insured must file a report of value with the insurer each
month.)
3. Which of the following types of Pain and suffering
benefits is generally not provided
by a state's workers' compensation (4 types: disability/loss of income, medical, sur-
law? vivor/death, and rehabilitation)
4. All of the following can be includ- Health and disability insurance
ed in a commercial package policy
(CPP) EXCEPT: (The CPP cannot include workers' comp, life insurance,
health and disability insurance, and certain types of
professional liability)
5. The primary purpose of the busi- Loss of income resulting from property damage at the
ness income coverage forms is to insured's property.
reimburse the insured for
(Coverage for accounts receivable, debris removal, and
work-related injuries are covered under other policies)
, Insurance Licensing Review Test
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6. According to the nationwide defin- Eligible for ocean marine insurance.
ition, imports and exports are:
(Personal inland marine forms insure personal prop-
erty floater risks. Commercial inland marine insurance
applies to the domestic shipments, instrumentalities
of transportation, or communication and commercial
property floater risks categories.)
7. Which of the following losses Heavy rains cause a lake to overflow and flood the
would be covered by a flood policy? basement and first floor of a house.
(A flood policy does not cover sewer backup into a
dwelling, indirect financial loss, or loss of use. Rain
coming in through open windows is not considered a
flood. Personal property in a basement or in the yard
is not covered.)
8. Furniture that is destroyed when a Direct
building burns down is an example
of what kind of loss? (A direct loss results directly from loss to property. An
indirect loss occurs as a result of the original loss.)
9. In fidelity bonds, the party to The obligee
whom the promise is made and for
whose protection the bond is writ- (There are three parties to a bond. The principal is the
ten is party who promises to do or not do a specific thing.
The surety is the party who agrees to be responsible
for loss that results if the principal does not keep his
or her promise. The obligee is the party to whom the
principal makes the promise, and for whose protection
the bond is written.)
10.
, Insurance Licensing Review Test
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Crime insurance that is written on Up to one year after the policy expires
a loss sustained form covers losses
discovered either during the policy (Crime insurance is written on either a loss sustained
period or form or a discovery form. Under the loss sustained
form, losses are covered if they are sustained during
the policy period and discovered either during the pol-
icy period of up to one year after the policy expires.)
11. The homeowners form that pro- The HO-3
vides special peril coverage on the
dwelling and broad coverage on (The HO-4 does not cover dwellings. The HO-6 provides
personal property is only limited coverage for dwellings. The HO-2 provides
broad coverage for both the dwelling and personal
property)
12. Which type of insurance covers ex- Inland marine insurance
posures that involve property and
merchandise while in transit or (Inland marine coverage forms are generally broader
"floating"? than other property forms. The property that is insured
under inland marine coverage is typically one of the
following:
- Actually in transit
- Held by a bailee
- At a fixed location that is an instrument of transporta-
tion
- A movable type of good that is often at different
locations)
13. All of the following are included un- Medical bills
der Section I of the homeowners
policy EXCEPT: (Covered under Section II)
14.
Study online at https://quizlet.com/_e3wkcg
1. Which of the following is an avail- Utility interruption
able coverage option under the
equipment breakdown protection (The coverages an insured may select include prop-
coverage form? erty damage, expediting expenses, business income
and/or extra expense, spoilage damage, utility inter-
ruption, and brands and labels.)
2. The builders risk reporting form in- An amount that increases at intervals to correspond
sures a building under construc- with the increasing value of the building.
tion for
(When the reporting form is attached to the builders
risk coverage form, the insured may purchase a smaller
amount of insurance that gradually increases as the
value of the building under construction increases. The
insured must file a report of value with the insurer each
month.)
3. Which of the following types of Pain and suffering
benefits is generally not provided
by a state's workers' compensation (4 types: disability/loss of income, medical, sur-
law? vivor/death, and rehabilitation)
4. All of the following can be includ- Health and disability insurance
ed in a commercial package policy
(CPP) EXCEPT: (The CPP cannot include workers' comp, life insurance,
health and disability insurance, and certain types of
professional liability)
5. The primary purpose of the busi- Loss of income resulting from property damage at the
ness income coverage forms is to insured's property.
reimburse the insured for
(Coverage for accounts receivable, debris removal, and
work-related injuries are covered under other policies)
, Insurance Licensing Review Test
Study online at https://quizlet.com/_e3wkcg
6. According to the nationwide defin- Eligible for ocean marine insurance.
ition, imports and exports are:
(Personal inland marine forms insure personal prop-
erty floater risks. Commercial inland marine insurance
applies to the domestic shipments, instrumentalities
of transportation, or communication and commercial
property floater risks categories.)
7. Which of the following losses Heavy rains cause a lake to overflow and flood the
would be covered by a flood policy? basement and first floor of a house.
(A flood policy does not cover sewer backup into a
dwelling, indirect financial loss, or loss of use. Rain
coming in through open windows is not considered a
flood. Personal property in a basement or in the yard
is not covered.)
8. Furniture that is destroyed when a Direct
building burns down is an example
of what kind of loss? (A direct loss results directly from loss to property. An
indirect loss occurs as a result of the original loss.)
9. In fidelity bonds, the party to The obligee
whom the promise is made and for
whose protection the bond is writ- (There are three parties to a bond. The principal is the
ten is party who promises to do or not do a specific thing.
The surety is the party who agrees to be responsible
for loss that results if the principal does not keep his
or her promise. The obligee is the party to whom the
principal makes the promise, and for whose protection
the bond is written.)
10.
, Insurance Licensing Review Test
Study online at https://quizlet.com/_e3wkcg
Crime insurance that is written on Up to one year after the policy expires
a loss sustained form covers losses
discovered either during the policy (Crime insurance is written on either a loss sustained
period or form or a discovery form. Under the loss sustained
form, losses are covered if they are sustained during
the policy period and discovered either during the pol-
icy period of up to one year after the policy expires.)
11. The homeowners form that pro- The HO-3
vides special peril coverage on the
dwelling and broad coverage on (The HO-4 does not cover dwellings. The HO-6 provides
personal property is only limited coverage for dwellings. The HO-2 provides
broad coverage for both the dwelling and personal
property)
12. Which type of insurance covers ex- Inland marine insurance
posures that involve property and
merchandise while in transit or (Inland marine coverage forms are generally broader
"floating"? than other property forms. The property that is insured
under inland marine coverage is typically one of the
following:
- Actually in transit
- Held by a bailee
- At a fixed location that is an instrument of transporta-
tion
- A movable type of good that is often at different
locations)
13. All of the following are included un- Medical bills
der Section I of the homeowners
policy EXCEPT: (Covered under Section II)
14.
