Exam FX part 3(Questions And Answers)2022

An endorsement is available for hired and nonowned auto on BOP liability... A. Only if the insured does not have commercial auto coverage B. In addition to commercial auto coverage C. Only if the insured has 4 or more employees D. Never A The Mail Coverage Form is always written on a reporting form basis; after the end of each reporting period shown in the declarations, reports are due within... A. 45 days B. 15 days C. 30 days D. 31 days C The inland marine coverage form for outdoor signs provides "open peril" coverage and excludes coverage for breakage only during... A. Transportation B. Repairing C. Installation or dismantling D. All of the above D Which of the following is covered under the Mail floater of a Commercial Inland Marine policy ONLY if is sent by registered mail? A. Currency and unsold travelers checks B. Postage and revenue stamps C. Money orders, checks, drafts, notes D. Bonds, stocks, stock certificates, coupon attached bonds A Which of the following other coverages is NOT included in the basic form dwelling policy? A. Breakage of glass B. Removal coverage C. Personal property temporarily away from the insured premises D. Tenant's improvements, alterations, and additions A Under the conditions of a Film Coverage Form, how long must the insured maintain records of each production? A. 3 years after the policy expires B. 5 years after the policy expires C. 7 years after production completion D. 1 year after production completion A Which of the following is true regarding single dwellings that are insured at least 80% of the replacement value? A. They are subject to a $1000 deductible B. They are automatically provided with replacement cost coverage C. They qualify for maximum compensation under the flood insurance program D. They are excluded from the flood insurance policy B A BOP (business owners policy) is most similar to... A. Auto B. Umbrella C. Cargo D. Homeowners D Under dwelling policy, if an insurer chooses to repair or replace damaged or lost property, it must inform the insured within how many days of receiving proof of loss? A. 10 days B. 30 days C. 45 days D. 60 days B An insured condominium unit owner wants to purchase fire and extended coverage for personal property and liability coverage for himself and his family members. He should purchase... A. HO-2 B. HO-3 C. HO-4 D. HO-6 D The extension of coverage under the Commercial Fine Arts Floater includes coverage for newly acquired property for a maximum of... A. $10,000 B. $15,000 C. $20,000 D. $5,000 A The common policy condition is a modular part combined with other parts to create the contract. The "common policy condition" section contains provisions that are applicable to all lines of coverage that may be included in the policy. Which of the following provisions would be found in the common policy conditions section of the policy? A. The first named insured may cancel the policy at any time by giving written notice to the insurer B. Prior to the insurer making inspections, surveys, and reports relating to the insurance, approval from the insured must be obtained C. Requests for any change in the policy requested by the insured may be made by the second name insured D. The insurer is granted the right to audit books and records of the insured relating to the policy for a period of up to 5 years after the end of the policy A Which of the following statements regarding coverage for the flood and earthquake perils is true? A. Flood and earthquake coverage us available only through the government B. Flood insurance usually is provided in property policies. However, earthquake insurance is available by endorsement only C. Both are excluded perils in all property policies D. Flood and earthquake coverage is available in all policies C Professional photographers and musicians may insure their equipment with... A. A PAF B. A commercial articles form C. A theatrical property coverage form D. A block policy B Which of the following statements concerning the builders risk coverage form is correct? A. It may be written on a reporting form or the completed value of the structure B. It usually continues in effect for 1 year after completion of the structure C. It covers the interest of the builder only, and cannot include coverage for the owner D. It may not be written for perils other than fire and extended coerage A Which of the following dwelling coverage forms would pay replacement cost for the dwelling? A. DP2 and DP3 B. DP3 only C. All dwelling property coverage forms D. DP1 A The type of insurance used to cover goods for one specific trip is called... A. Commercial property B. Bailee policy C. Motor truck cargo policy D. Trip transit D Which of the following may be covered by Electronic Data Processing coverage from under and Inland Marine policy? A. Computer hardware that is specifically scheduled B. Extra expense the insured incurs to continue the business following a loss C. Data processing media, including magnetic tapes or paper tapes, punch cards, and discs D. All of these are covered D What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine policy? A. $15,000 all expenses incurred during a 12-month period B. $20,000 all expenses incurred during a 12-month period C. $5,000 for all expenses during a 12-month period D. $10,000 for all expenses incurred during a 12-month period D An insured owns a large dog. The first day he has to leave the dog home alone to go to work, the insured comes back to find his $400 couch torn apart, his $100 coffee table chewed up, his $50 window curtain shredded, and a $200 window pane shattered where his dog jumped through. The insured has personal property coverage under a special form of dwelling policy. How much of this loss will the policy cover? A. $0 B. $200 C. $250 D. $750 A Which of the following would NOT be considered an insured under a homeowners policy? A. Residents of the household that are blood relatives of the insured B. An individual, under 21, in the care of but not related to the insured C. Individuals named in the policy declarations D. A divorced spouse living in another state D Coverage under a Floor Plan Merchandise form is written on a reporting form basis that requires the insured to file reports with the insurer. What is the time frame for those reports? A. By the 15th of each month B. 20 days after the report is due C. Within 30 days after the end of each month D. Within the first 10 days of each month C Which common policy condition prohibits the insured from changing the rights or duties as defined under the policy to any other person or entity without the written consent of the insurance company? A. Subrogation B. Reassignment and modification C. Changes D. Transfer of rights and duties under the policy D Which of the following would NOT be considered a flood? A. Overflow of tidal waves B. Mudslides C. Runoff of surface waters D. Sewer backup D Builder's risk is most often written on which form? A. Scheduled form B. Reporting form C. Specific value form D. Completed value form D Which of the following is NOT found in a commercial package policy? A. Certificate of authority B. Common policy conditions C. Common policy declarations D. Interline endorsements A The Physicians and Surgeons Equipment Floater is NOT intended for which of the following? A. Waiting room furniture in a doctor's office B. Office equipment located in a dentist's office C. Medical supplies located in a hospital D. Surgeon's supplies located in the surgeon's office C Which of the following is true regarding the fire department service charge under the Builders Risk form? A. It is a high-deductible endorsement B. It is an additional coverage C. It is an automatic coverage for $500 D. It is not available in this form B Business personal property coverage form covers all of the following EXCEPT... A. Machinery that is not permanently installed B. Stock C. Automobiles held for sale D. Furniture and fixtures C