NJ Casualty Test 2023 (Answered)

when the courts usually resolve any ambiguity in policy wording in favor of the insured this is because what? - ANSWER-Doctrine of reasonable expectations Doctrine of Reasonable Expectations - ANSWER-States: that a policy includes coverages that an average person would reasonably expect it to include, regardless of what the policy actually provides. Which is not an agent's responsibility to the insured? - ANSWER-Settling and paying claims A women slips and falls on icy steps and breaks her leg. What may be a peril in this situation ? - ANSWER-The fall peril - ANSWER-cause of loss Part of the policy that can void the policy if they are breached, weather the breach was intended or not? - ANSWER-Warranties An insured's attempt to mitigate risk ? - ANSWER-Reduction Type of Insurance the government may step in to provide that is not ordinarily available for private insurers? - ANSWER-Residual Market One party of the contract has greater power over the other in drafting the contract. - ANSWER-Contract of adhesion Personal Insurance contract - ANSWER-An insurance contract insures the person who owns the property, not the actual property itself Excess Line carriers - ANSWER-Non-admitted/unlicensed carrier who is held to different regulations than other carriers. Protects insurance companies from catastrophic losses and from wild fluctuations in underwriting results - ANSWER-reinsurance Contract Against Public Policy is not enforceable due to what part of contract - ANSWER-legal purpose tort - ANSWER-a wrongful act or an infringement of a right leading to legal liability. An insured is found legally liable for the loss of another and is ordered to pay general damages - ANSWER-Damages compensate for pain and suffering. Under CGL which is covered under supplementary payments - ANSWER-cost of bail bonds which is true When the insured's limits of insurance apply per occurrence - ANSWER-coverage is triggered for smoke damage to siding caused by repeated acts by the insured's neighbor The fair credit reporting act permits consumer reporting agencies to include applicant information about bankruptcies more than 10 years older. - ANSWER-the applicant is seeking a transaction greater than $150,000 Insured with split liability limits of 100/300/100 is at fault in an auto accident and the other vehicle sustains $6,500 in property damages as well as two occupants have bodily injuries and are claiming $150,000 each. What is the most insurance will pay to each occupant ? - ANSWER-$100,000 Which best describes CGL ? - ANSWER-Coverage A,B, an C apply ins sum and are the most that will be paid subject to the general aggregate annual limit. Insurable Interest - ANSWER-something of value that, if lost, would cause you financial harm determining an adequate indemnification after a loss is a duty of - ANSWER-The insured's insurance company. A property damage liability policy would offer protection for - ANSWER-Damages done to a gas station due to insured's parking collision. Under the insured's personal auto policy, for a newly acquired car to be covered prior to reporting it to the insurance company - ANSWER-All coverages extends if the insured reports the car within 14 days. Part D Auto - ANSWER-Coverage for Damage to Your Auto Underinsured Motorist Coverage - ANSWER-pays from your coverage if you are in an accident with another motorist that has lower liability coverage than your coverage. Your underinsured coverage will pay the difference comprehensive coverage - ANSWER-protection against damages to your car from causes other than collision or rolling over Symbol 2 on Auto declarations - ANSWER-Owned auto's only Under liability coverage, the following will trigger coverage for property damage - ANSWER-Unintended damage to tangible property of others How does an extended period attached to a general liability policy provide coverage - ANSWER-Provides coverage for claims made outside the policy term. The claims-made liability form provides coverage from a date that precedes the policy effective date. Which of the following defines that date? - ANSWER-Retroactive Date Form triggering coverage for a loss under the commercial general liability policy if a loss happens during the policy period - ANSWER-Occurrence form Business liability exposure type of a slip and fall - ANSWER-Premises and operations theft - ANSWER-Taking another person's possessions burglary - ANSWER-entering a building unlawfully with intent to commit a felony or to steal valuable property An employer sends employee out of state on work related basis, what does employer need to do to ensure the appropriate workers comp coverage - ANSWER-List the state on the information page for "other states coverage" workers comp insurance is subject to all employees expect - ANSWER-Crew members of an ocean vessel Replacement of a portion of loss of wages - ANSWER-Workers comp benefits Workers compensation coverage is rated on the basis of - ANSWER-Employers Payroll What insurance policies would provide coverage to ABC company in a suit brought by a fired employee for wrongful discharge? - ANSWER-Employment practices liability Fidelity Bond - ANSWER-insurance policy that pays the employer money in the case of employees' theft Surety Bond - ANSWER-A guarantee that protects a business when another person or business fails to fulfill the terms of a contract between them