TDI DISASTER EXAM VERIFIED QUESTIONS AND ANSWERS 2023/2024 VERSION ACTUAL TEST GRADED A

TDI DISASTER EXAM VERIFIED QUESTIONS AND ANSWERS 2023/2024 VERSION ACTUAL TEST GRADED A Quiz 1 1. If Lowest Cost Insurance Company chooses to accept his application for insurance, the insurer is the risk? • Retaining (Correct Answer) • Reducing •Avoiding • Transferring 2. If Lowest Cost Insurance Company declines his application for insurance, the insurer is the risk? • Retaining • Reducing •Avoiding (Correct Answer) • Transferring 3. Mr. Jones' heart attack is best described as his ? • Risk • Exposure • Peril (Correct Answer) • Loss 4. If Lowest Cost Insurance Company rates the policy premium in order to accept the risk, the insurer is the risk? • Retaining • Reducing (Correct Answer) •Avoiding • Transferring Quiz 2 1. When Mr. Ames policy is issued, who would be considered his ceding company or companies? •ABC Insurance Corp. • AIG •Allstate Insurance • ProActive Corp. (Correct Answer) 2. All of the following Element of Insurable Risk are required by an insurer in order to issue a policy EXCEPT: • The loss must be uncertain in order for an insurer to accept a proposed risk. • Loss must be certain (Correct Answer) • Economic Hardship • Large number of homogenous units Correct 3. If Mr. Ames (the insured) dies, which insurer will issue the check to his loved ones? • ProActive Insurer Corp. (Correct Answer) • ABC Insurance Corp. • AIG • Allstate Insurance 4. There are different forms of Reinsuring Agreements between Insurers. ABC Insurance Corp. routinely handles potential risk and reinsures losses as they are accepted by ProActive Insurer Corp. Which form below best describes the reinsuring agreement in effect with ABC Insurance Corp? • Facultative • Treaty (Correct Answer) • Normal •Ceding Quiz 3 1. The allows the insurer to predict their future losses in a particular group of policyholders. • Morbidity Table • Loss Ratio • Experience Rating • Law of Large Numbers (Correct Answer) 2. Which of the following groups of people would be considered the best definition of Adverse Selection'? •A group of farmers. (Correct Answer) •A group of young interns •A group of secretaries •A group of college students 3. Which of the following private insurers are considered 'PAR'? • Stock Companies • Mutual Companies (Correct Answer) • Non-Profit Service Organizations • Special Non-Profit Organizations 4. Which of the following private insurers are considered NON-PAR'? • Stock Companies (Correct Answer) • Mutual Companies • Non-Profit Service Organizations • Special Non-Profit Organizations Quiz 4 1. The Airman's Lodge would be considered to be which type of an insurer? • Reciprocal Insurer • Risk Retention Group • Fraternal Association (Correct Answer) • Purchasing Group 2. This insurer's price per thousand for life insurance for their members started at pennies per thousand. However, this year there were more losses than expected in their earlier planning years. Therefore this type of insurer is allowed (without permission or endorsement to the original policy) to read just their cost per thousand for life coverage and begin charging their members the new pricing immediately. Which type of private insurer best describes this insurer? • Reciprocal Insurer • Lloyd's of London • Fraternal Association (Correct Answer) • Purchasing Group 3. This type insurer would insure Tom Brady's arm as a quarterback and his way of making a living? • Reciprocal Insurer • Risk Retention Group (Correct Answer) • Fraternal Association • Purchasing Group 4. This type insurer would provide for hole in one indemnity at a golfing tournament! • Reciprocal Insurer • Risk Retention Group (Correct Answer) • Fraternal Association • Purchasing Group Correct Quiz 5 1. Best Valued Insurance Company doing business in Atlanta, Georgia would be considered a/an Insurer. • Domestic • Foreign (Correct Answer) •Admitted •Alien 2. Best Valued Insurance Company doing business in Europe would be considered a/an • Domestic • Foreign •Admitted •Alien (Correct Answer) Insurer. 3. Best Valued Insurance Company doing business in Houston, Texas would be considered a/an Insurer. • Domestic (Correct Answer) • Foreign • Admitted • Alien 4. Best Valued Insurance Company doing business in Juarez, Mexico would be considered a/an Insurer. • Domestic • Foreign •Admitted •Alien (Correct Answer) Quiz 6 1. Joe represents six different insurance companies and is paid based on his earned commissions. He is the best example of a/an . • Independent (Correct Answer) •Captive/Exclusive • General Agent • Direct Writer 2. Julie is a supervisor & manages several agents for ABC Insurance Corp. She cannot represent any other insurance carrier except for the one in which she represents now. She is the best example of a/an . • Independent •Captive/Exclusive •General Agent (Correct Answer) • Direct Writer 3. Okay Insurance Corporation has received the strongest financial rating position. Choose which of the following would be the published rating position for public view? • 100 • A++ • A+ Superior (Correct Answer) • AAA 4. Betsy Sue works in the bank offering their customers only credit life insurance on their new loans. She does not receive additional compensation if a customer purchases the insurance. She is the best example of a/an . • Independent •Captive/Exclusive • General Agent •Direct Writer (Correct Answer) Quiz 7 1. Mr. Jones choose to purchase travel accidental coverage to protect his loved ones for his flight to New York. Which type of Mass Marketing did he purchase? • Direct Response • Franchise Marketing • Non-Insurance Sponsors • Vending Machine (Correct Answer) 2. Mr. Jones is a member of the Business Men Of Texas Association and purchases Life and Health coverage through the association. Which type of Mass Marketing did he purchase? • Direct Response • Franchise Marketing (Correct Answer) • Non-Insurance Sponsors •Vending Machine 3. ABC Insurance Corp. conducts their advertising on television. Which form of mass marketing do they use? • Direct Response (Correct Answer) • Franchise Marketing • Non-Insurance Sponsors • Vending Machine 4. Mr. Edwards received a flyer from Alliance Insurance Corp. through the mail. Which form of mass marketing do he receive? •Direct Response (Correct Answer) • Franchise Marketing • Non-Insurance Sponsors •Vending Machine Quiz 8 1. Joe (the agent) writes his first auto application. The proposed insured is 22 years of age. Which of the following authorities was violated by Joe? • Expressed • Implied •Apparent (Correct Answer) • Obvious 2. Joe has reviewed his contract with the principal and determined the contract does not stipulate the following; How late an agent may knock on a prospects door or how early an agent may telephone prospective clients each weekend day! Which type of authority does Joe have to perform these tasks? • Expressed (Correct Answer) • Implied •Apparent • Obvious You missed this question. 3. Miss. Ellie Ethics (the instructor) asked the students to determine which statement below does not represent an adjuster's duties & responsibilities? • Obvious • Expressed • Implied (Correct Answer) • Apparent 4. Joe (the agent) explains to his next applicant to cancel their existing life insurance coverage because he is certain that his application will be approved although the client did not give any premium with the application. Which of the following authorities was violated by Joe? • Expressed • Implied (Correct Answer) •Apparent Obvious Quiz 9 1. Which of the following parties acceptance within the insurance contract? • The Insurer. (Correct Answer) • The Insured. • The Agent. • The Underwriting Department. 2. Which of the following parties make the offer with the contract? • The Insurer. • The Insured. (Correct Answer) • The Agent. • The Underwriting Department. Correct 3. Determine which party below would have a fiduciary responsibility within the contract. • The insured is to use Utmost Good Faith and Fiduciary action • The insurer is to practice Fiduciary acts while reinsuring a loss. • The underwriter is required to use fiduciary practices while reviewing the application for insurance. • The agent has a fiduciary responsibility to act in the clients best interest at all times. (Correct Answer) 4. What does the insured offer as consideration for the promise of the insurer to pay possible claims? • Their good health • Their premium dollars (Correct Answer) • Their Utmost Good Faith • Their promise not to cancel the policy Quiz 10 1. Ms. Jones (the insured) has paid her premium for 46 years without filing a single claim. Which unique characteristic best describes this action? • Personal Contracts •Aleatory Contracts (Correct Answer) •Contract of Adhesion •Conditional Correct 2. Ms. Jones (the insured) is dead. Her loved ones file a claim with the Insurance Company in order to receive her life insurance proceeds. However the insurer requires the beneficiary to forward the death certificate before the claim can be paid! Which unique characteristic best describes this action? • Personal Contracts •Aleatory Contracts •Contract of Adhesion • Conditional (Correct Answer) 3. Ms. Jones (the insured) makes three premium payments on her new auto policy then totals her $60,000.00 Lexus LS430. Which unique characteristic best describes this action? • Personal Contracts • Aleatory Contracts (Correct Answer) • Contract of Adhesion • Conditional 4. Miss. Ellie Ethics (the instructor) asked the students to review the following example of an adjuster: Barry White is an insurance adjuster who represents the insured on a fee basis and/or for a percentage of the claim settlement that this type of an adjuster is able to negotiate and settle with an insurance carrier regarding a particular claim. Which one of the four types of Adjusters listed below best describes this type of an adjuster? • Personal Contracts •Aleatory Contracts • Contract of Adhesion (Correct Answer) Conditional Quiz 11 1. Joe is applying for insurance. Every statement made on the application by Joe for insurance is considered to be a . • Warranty • Representation (Correct Answer) • Estoppel • Waiver 2. Lucy Waites, a policyholder, has filed a claim of burglary at her home. However, there are no signs of visible marks of entry or exit at the residence. Furthermore, upon investigating the claim the adjuster finds out that four neighbors saw her and a companion carrying out two televisions, three vcrs and a microwave from her residence a week earlier. The adjuster reviews her proof of loss statement and she has listed both televisions, two of the three vcrs and the microwave as stolen! She has . • Committed Fraud which voids her claim. (Correct Answer) • Misrepresented pertinent facts regarding the inventory originally in her home. •Concealed known information about this claim. • Waived her right to an attorney in reference to this claim. 3. Mike Suny, a proposed insured, does not disclose that he is HIV positive in an attempt to purchase life insurance from several insurance companies. Furthermore, he is hoping to live past the incontestable period in Texas in which the insurer will simply be forced to pay the claim to the named beneficiary without the advantages of investigating the death. His failure to disclose his illness is an example of . • Misrepresentation • Concealment (Correct Answer) • Fraud • Waiver 4. Conner Insurance Corp. has accepted Mary Frances's premium late for her health insurance each and every month. Suddenly after 11 months the insurer cancels her policy without notice! However, she can prove by her banking records that the insurance company routinely accepted the premiums for her coverage each and every month on the same date without any problem. The insurance company will most likely be required to reinstate her policy because of . • Warranty • Representation • Estoppel (Correct Answer) Quiz 12 1. Joe (the newly insured) purchased an auto liability coverage policy from Amco Insurance Company around 2:30 p.m. Unfortunately, he caused an accident and hit the other car on the driver's side around 11:52 p.m. the same day. When will his policy be in effect? • 2:30 pm • 11:52 pm • 12:00 midnight • 12:01 a.m. (Correct Answer) 2. Mr. Holmes is reviewing his recently issued policy. All of the following information would be located on his Declarations page, EXCEPT: • Name of the Insurer • Conditions within the policy (Correct Answer) •VIN number of the vehicle covered. • Policy premiums 3. We, Us and Our in the insurance policy refers to which party? • The insurer (Correct Answer) • The insured • The claimant • The finance company where you leased the automobile 4. You and Yours in the insurance policy refers to which party? • The insurer • The insured (Correct Answer) • The claimant • The finance company where you leased the automobile Quiz 13 1. John just received his TSFP in the mail! He will find all of the following information on his 'Dec Page', EXCEPT: • Name and Address of the Insured • His policy number •His policy conditions (Correct Answer) • His policy term 2. May West has just received her email allowing her to print her policy & applicable documents. She will find all of the following information on her 'Dec Page', EXCEPT: • Name of the Insurer. •Address of the Insurer. • Financial Rating of the Insurer. (Correct Answer) • Policy Number. 3. The TSFP would be used to insure which of the following risk? • A single family dwelling's risk. • A mobile home community risk • A business risk (Correct Answer) • A Liability risk 4. Which of the following statements below does not refer to the TSFP? • It is for new building structures (Correct Answer) • It is for buildings in high crime areas • It is a property only policy. • It does not provide for liability coverage. Quiz 14 1. Under his TSFP, Jon Smith files a claim which totals $20,000. The insurer will assume liability for the removal of all debris resulting from damage to property covered by the insured peril, up to $_ . • $ 2,000 • $ 2,500 • $ 4,000 • $ 5,000 (Correct Answer) 2. Under the TSFP, an insured files a claim which totals $50,000. The insurer will assume liability for the removal of all debris resulting from damage to property covered by the insured peril, up to $_ . • $ 5,000 • $10,000 • $12,500 (Correct Answer) • $20,000 3. Under the TSFP, an insured removes their property from the claim site on January 1st, 2007, the items removed will be covered under the "Removal Clause" until . • January 6th, 2009 (Correct Answer) • January 15th, 2009 • January 27th, 2009 • January 31st, 2009 4. All of the following statements are true in reference to the TSFP, EXCEPT: • It pays on a Replacement Cost basis (Correct Answer) • It pays on an Actual Cash Value basis • It does not cover Deeds • It does not cover currency Quiz 15 1. Under the TSFP, John and Mary moved to their new office building and listed this Office Complex as For Sale By Owner in the Dallas Morning News Classified Section! It has been 93 days since they moved out. All of the following perils would be covered in the event of a loss, EXCEPT: • VMM (Correct Answer) • Fire • Lightning • Windstorm 2. Under the TSFP, Mr. Johnson's policy is being cancelled due to his claims experience. He must be given • 5 days • 10 days • 15 days advance notice. • 30 days (Correct Answer) 3. Under the TSFP, The Carpenters move across town to a better school district. They have a listed their home with a local realtor to sell their old residence. They moved on March 1st, 2009 to their new home. Their VMM coverage will cease on home remains vacant. • March 31st, 2009 if their • April 1st, 2009 • April 15th, 2009 • April 30th, 2009 (Correct Answer) 4. Under the TSFP, the insured must be given due 'Notice of Cancellation' .If Mr. Jones' policy is being cancelled for non-payment of premiums, he must be given • 5 • 7 • 10 days advanced notice. • 14 (Correct Answer) Quiz 16 1. Mr. Reeves, the insured, is researching the facts regarding the refusal of his recent claim under his TSFP. He has found that the Insurance Company should have covered his loss. He filed his claim on January 15th, 2009. He has until a lawsuit against his Insurance Company. • Jan 15th, 2010 • Jan 16th, 2010 • June 1st, 2011 • January 16, 2011 (Correct Answer) to file 2. Under the TSFP, Extended Coverage's section, the following perils would be covered, EXCEPT: • Riot • Explosion •Vehicle • Fire (Correct Answer) 3. Under the TSFP, the 'Extra Expense' section covers additional expenses that are necessary for a business to continue its operations while restoration from a covered Peril. All of the following are examples of the covered Additional Expenses, EXCEPT: • Owners Salary (Correct Answer) • Employee's Wages • Rent • Utility Bills 4. Under the TSFP, the insured, Mr. Jones has decided to file a lawsuit against Farmers Insurance for not paying his original claim the way Mr. Jones felt it should have been paid. He is only allowed to file a lawsuit (as stated in his contract) within 2 years and 1 day from a particular date! Choose the appropriate statement below that he must review in order to determine his legal timeframe! • Mr. Jones' policy was issued effective April 1st, 2009. He must file his lawsuit within 2 years and one day of this date. • Mr. Jones' original claim was filed on Dec. 31st, 2008. He must file his lawsuit within 2 years and one day of this date. (Correct Answer) • Mr. Jones' claim check was dated Jan. 30th, 2009. He must file his lawsuit within 2 years and one day from this date. • Mr. Jones' second claim check was received on March 31st, 2009. He must file his lawsuit within 2 years and one day from this date. Quiz 17 1. All of the following are ways to prove automobile financial responsibility, EXCEPT: •A surety bond • Deposit of cash or securities • Re-insurance (Correct Answer) • Purchase Automobile Liability Insurance 2. John has liability coverage on his vehicle. He has an accident that is his fault and he injures two claimants. The first claimants injuries totaled $21,000 and the second claimants injuries totaled $16,000. How much will the insurer pay on this claim? • 36,000 (Correct Answer) • $20,000 • $37,000 • $40,000 3. Mr. Brown (the proposed insured) wants to prove his financial responsibility in Texas through his annuity account with Merrill Lynch. The total this annuity fund must have to meet Texas minimum dollar limits would be . • $15,000 • $20,000 • $40,000 • $55,000 (Correct Answer) 4. Mr. Jones has had a car wreck. There are a total of three injured persons in the wreck. He has liability coverage on his car. The maximum amount that the insurer will pay for all bodily injury due to this accident is $ . • $15,000 • $20,000 • $35,000 $40,000 (Correct Answer) Quiz 18 1. Brian has liability coverage. He has an accident that is his fault. There are three injured parties in the car he hit. The first injured persons claim totaled $25,000 + the second persons claim totaled $15,000 + the third persons claim totaled $10,000. Based on the total number of injuries listed, which statement below best describes the way the insurer will handle this claim? • The insurer will pay a total of $20,000 for all injuries sustained in this accident. • The insurer will pay a total of $40,000 for all injuries sustained in this accident. (Correct Answer) • The insurer will pay a total of $50,000 for all injuries sustained in this accident. • The insurer will pay a total of $55,000 for all injuries sustained in this accident. 2. Connie has an accident with liability limits of coverage only for her automobile. She is at fault for the accident. The other person's auto damage totaled $17,000.00. Plus, Connie's auto damage total is $4,500.00. Based on this situation, which statement below would be true regarding the claim payout? • The insurer will pay $ 4,500.00 • The insurer will pay $15,000.00 (Correct Answer) • The insurer will pay $17,000.00 • The insurer will pay $21,500.00 3. John receives his Proof of Insurance card in the mail today! Which of the items below will be on the Proof of Insurance card? • Exclusions • Conditions • Policy Number (Correct Answer) • Causes of Loss 4. A person driving a Texas garaged vehicle must show proof of financial responsibility in all of the following examples, EXCEPT? • When a law enforcement officer ask you to show proof of financial responsibility. • When you register your vehicle. • When you get your car inspected. • When you rent a car. (Correct Answer) Quiz 19 1. Ruth has indicated upon applying for coverage that she has airbags on the driver's side only! Her premium must include a discount for airbags on the one side in reference to medical payments coverage. If she was previously quoted $200.00 for Med Pay and then noted the one sided air bag, her new premium would be $_ . • $100.00 • $140.00 • $150.00 • $170.00 (Correct Answer) 2. Emily has noted in her request for an auto quote that she has dual air bags in her new auto. Without this discount her total for Med Pay/PIP was $300.00. With the new discount her premium should be $_ . • 200.00 • 210.00 (Correct Answer) • 255.00 • 275.00 3. Jerry Don has attended a series of self help seminars on the topic 'Drug Education in the year 2009'. He has liability only coverage and pays $1,000.00 per year. He is entitled to a mandatory discount to bring his new annual total to • $750.00 • $850.00 • $950.00 (Correct Answer) • $975.00 4. John has attended Defensive Driving to fulfill the court's required actions to suspend a speeding ticket. The current rate for liability coverage is $1,000 per six months. He sends his insurance carrier the certificate of completion for the course. His insurance carrier must reduce his six months premium to $_ . • $500 • $750 • $900 (Correct Answer) • $950 Quiz 20 1. Mary has received her second citation for failure to maintain financial responsibility. The maximum fine she may receive for this offense is $_ . • $ 175.00 • $ 300.00 • $ 500.00 • $1,000.00 (Correct Answer) 2. Mary has received her second citation for failure to maintain financial responsibility. The minimum fine she may receive for this offense is $_ . • $ 175.00 • $ 350.00 (Correct Answer) • $ 500.00 • $1,000.00 3. Texas law provides for severe penalties for violating financial responsibility laws. All of the following may occur on subsequent convictions of this violation, EXCEPT: • Be fined a minimum of $500.00 (Correct Answer) • Be fined a maximum of $1,000.00 • Suspension of your driver's license. • Impoundment of your automobile 4. John received a citation from a police officer for failure to maintain financial responsibility. This is his first offense. The maximum fine he may receive is $_ . • $175.00 • $300.00 • $350.00 (Correct Answer) $500.00 Quiz 21 1. Mr. Pringles has had a car accident and is being arrested as a result of the accident. He has liability coverage on his vehicle. His bail is set at $3,000. How much would the insured be responsible to pay towards the bail after the insurer has paid their portion? • $1,000 • $1,750 • $2,750 (Correct Answer) • $3,000 2. Mr. Smith has Texas Liability Insurance Coverage and has hit another automobile. The car he ran into was a 2006 corvette. The damages are estimated at $31,000. How much will the insurer pay on this claim? • $15,000 (Correct Answer) • $20,000 • $40,000 • $45,000 3. Ms. Able only has liability coverage on his auto. The automobile she plowed into was a 2003 Lexus LS430. The damages to the Lexus are $45,000. How much of this claim would the insurer pay? • $15,000 (Correct Answer) • $20,000 • $40,000 • $45,000 4. Mr. Jones has had a car wreck. There are a total of three injured persons in the wreck. He has liability coverage on his car. The maximum amount that the insurer will pay for all bodily injury due to this accident is $ . • $15,000 • $20,000 • $35,000 • $40,000 (Correct Answer) Quiz 22 1. All of the following statements regarding Medical Payments Coverage are true, EXCEPT: • Pays funeral bills arising from motor vehicle accidents • Pays if the victim was a pedestrian. • Pays if the victim was a bicyclist. • Pays first for Medical Payments before PIP. (Correct Answer) 2. JoAnn has PIP coverage on her TEXAS PAP. Her deductible is $500. Her lost wages total $7,500. How much will the insured not be reimbursed for based on $7,500 in lost wages? • $ 4000 • $6000 (Correct Answer) • $6500 • $7000 3. Mr. Jones has coverage for PIP on his Texas PAP. His deductible is $500. His lost wages totaled $5,000.00. How much will the insurer pay on this PIP claim? • $2,500 • $3,500 • $4,000 (Correct Answer) • $4,500 4. Ms. Hart has coverage for PIP on her Texas PAP. Her total lost wages are $2,500.00. How much would the insurer pay under the PIP coverage? • $1,000 • $1,500 • $2,000 (Correct Answer) • $2,500 Quiz 23 1. Mr. Jones has UM/UIM coverage. He is side swiped by a hit and run driver. His property damage totals $3,500.00. The insurer will pay $ property claim. • $ 0 • $1,750 • $3,250 (Correct Answer) • $3,500 on his 2. Ms. Kitchens has UM/UIM coverage. She is hit from the side and the driver takes off without identifying himself. Ms. Kitchens property damage totals $5,000. The insurer will pay $_ damage claim. • $ 0 • $ 4,000 • $ 4,500 • $ 4,750 (Correct Answer) on her property 3. Under UM/UIM coverage, all of the following are covered under the B.I. section, EXCEPT: • Lost Wages • Pain & Suffering • Rental Car (Correct Answer) • Partial Disability 4. Under UM/UIM coverage, all of the following are covered under the P.D. section, EXCEPT: • Rental Car •Auto Repairs •Disfigurement (Correct Answer) • Items carried in the auto Quiz 24 1. All of the following are Excluded from the Texas PAP, as a covered property loss, EXCEPT: • The Bose system installed last Christmas (Correct Answer) •Audio Tapes •CD's • Fuzz Busters 2. All of the following are Excluded Perils on the Texas PAP, EXCEPT: • Wear and Tear of the vehicle •Hitting an animal (Correct Answer) • Freezing • Mechanical Breakdown 3. All of the following are Excluded Perils on the Texas PAP, EXCEPT: • Electrical Breakdown • Road Damage To Tires • War, Revolt, Nuclear Damage • Falling Objects (Correct Answer) 4. All of the following are true in reference to Comprehensive coverage in Texas, EXCEPT: • Comprehensive is considered mandatory coverage. (Correct Answer) •Comprehensive also pays for a rental car if the entire car is stolen. •Comprehensive covers temporary transportation in the event the entire car is stolen. •Comprehensive is considered optional coverage. Quiz 25 1. JoAnne has financed her home for $250,000. In order to have enough coverage in the event of a loss she should cover her dwelling for %. • 70 • 80 (Correct Answer) • 90 • 100 2. John has financed his home for $150,000.00 In order to have enough coverage in the event of a loss he should cover his dwelling (base policy face amount) for . • $105,000 • $112,500 • $120,000 (Correct Answer) • $150,000 3. John has received his appraisal for his home and it shows $200,000 appraised value. If he wants to insure it for the least amount of coverage possible to have 100% insurance coverage. He should cover his dwelling for $ . • 140,000 • 160,000 (Correct Answer) • 180,000 • 200,000 4. John's home is appraised at $200,000. He has insured the home for $160,000. He has automatic coverage for his personal property as "blanket coverage" for $ . • 32,000 • 40,000 • 64,000 (Correct Answer) • 80,000 Quiz 26 1. Marie's HO-C policy covers her dwelling for $150,000.00 Her 'Loss of Use' will pay $_ if her home is too damaged to live in during repairs. • $15,000 • $30,000 (Correct Answer) • $45,000 • $60,000 2. Martha is seeking coverage for her new home loan (valued at $240,000), which was approved last Friday. She wants the least expensive coverage for her single family dwelling that will satisfy the mortgage company at closing, the best coverage for her is . •HO-A (Correct Answer) • HO-B • HO-C • TDP-1 3. The basic homeowners policy will pay $_ in medical bills on behalf of the insured. • 250 • 500 (Correct Answer) • 750 • 1,000 4. John's HO-C policy covers his dwelling for $100,000. His 'Loss of Use' will pay $ if his home is too damaged to live in during repairs. • $10,000 • $15,000 • $20,000 (Correct Answer) $25,000 Quiz 28 1. All of the following statements are true the Farm and Ranchowner's Coverage, EXCEPT: • This policy insures homes outside the city limits. • The property must be at least 10 acres. • There is a higher premium charge for acreage in excess of 150 total. (Correct Answer) • You can pay additional premiums and obtain coverage for certain Farm Equipment & Outbuildings. 2. Jerry has received his appraisal for his home and it shows $200,000 appraised value. If he wants to insure it for the least amount of coverage possible to have 100% insurance coverage. He should cover his dwelling for $ . • 140,000 • 160,000 (Correct Answer) • 180,000 • 200,000 3. Jo Anne has financed her home for $250,000. In order to have enough coverage in the event of a loss she should cover her dwelling for %. • 70 • 80 (Correct Answer) • 90 • 100 4. John's house is appraised at $175,000.00 . How much insure his dwelling for $ to receive full payment minus his deductible for a partial loss. • 122,500 • 131,250 • 140,000 (Correct Answer) • 175,000 Quiz 29 1. Determine which statement below best describes ACV based on the following example: A thief steals a six year old television, with ACV coverage . • The insured must buy a new television and incur any balance not paid by the insurer. • The insured must shop prices and locate three reasonable prices for three six year old replacement televisions and submit their • The insured will only receive an amount of money from the insurer based on replacing a six year old television. (Correct Answer) • The insurer will only pay an agreed amount after careful consideration from the claims representative. 2. Determine which statement below best describes Replacement Cost Coverage based on the following example: A thief steals your six year old televison, with Replacement Cost coverage . • The insurer pays to replace your television with a new one based on today's prices. (Correct Answer) • The insurer pays a depreciated value because the stolen t.v. was six years old. • The insured must buy a new television before a check is issued from the insurer. • The insured must shop prices and locate three reasonable prices for a similar television in today's marketplace or the insurer. 3. If an insured's home is insured for $100,000 dwelling coverage, the insured's contents are automatically covered for $ . • 20,000 • 30,000 • 40,000 (Correct Answer) • 50,000 4. Which statement below best describes ACV? • Replacement Cost minus Depreciation (Correct Answer) • Replacement Cost Up To The Policy Limits • Replacement Cost without deduction for depreciation • Replacement Cost minus Agreed Value. Quiz 30 1. Which statement below is not true in reference to john's HO-B policy? • Farmers Insurance must advance $1500 without requiring replacement receipts from John. • Farmers must pay for all replaced items (proven by receipts) within the policy limits post fire loss. • Farmers Insurance must reimburse John within 5 calendar days of proof of replacement. (Correct Answer) • Farmers Insurance must reimburse John within 5 business days of proof of replacement. 2. Bill has now provided the adjuster with State Farm Insurance replacement receipts for several personal property items on Thursday, Feb.1st, 2007. TDI requires State Farm Insurance to pay Bill for replacement by ,2007. • Feb. 5th • Feb. 6th • Feb. 7th (Correct Answer) • Feb. 8th 3. Bill Rhodes submits his first claim with State Farm Insurance for a lightning claim! His claim included $1,690 for personal property. How much will State Farm require him to show receipts for replacement of damaged property in order to receive payment? • $190 (Correct Answer) • $500 • $1000 • $1690 4. John filed a claim for a fire loss. His claim included personal property destroyed by the fire. Farmers must advance $ without receipts for replacement based on the HO-B contractual in effect? • 500 • 1000 • 1500 (Correct Answer) • 2000 Quiz 31 1. Jessica (h/o1) is informing other members that she once had to file a complaint against the windstorm inspector after her recent renovation! She feels he was unprofessional, was chronically late at the three times scheduled to inspect and smoked cigarettes inside her home. So she is querying if any other member or association representative knows who appoints/governs Texas Windstorm Inspectors? The webmaster for the association checks and verifies to her that is the governing agency! • TDI (Correct Answer) • NAIC • TWIA • TREC 2. Minnie (h/o2) has been tracking the hurricane Waldo that is currently in the Gulf of Mexico. She is online inquiring about how much time she has to purchase wind & hail coverage. The webmaster verifies the question and provides Minnie with the following answer . • 20 degrees longitude and 80 degrees latitude • 80 degrees longitude and 20 degrees latitude (Correct Answer) • 40 degrees longitude and 60 degrees latitude • 60 degrees longitude and 40 degrees latitude 3. All of the following statements are true regarding the TWIA, EXCEPT: • TWIA is the preferred insurer for TDI. (Correct Answer) • TWIA offers Wind and Hail Coverage. • TWIA is the states insurer of last resort. • TWIA provides coverage when insurance companies exclude it from coverage. 4. Ames Mtg. Corp is now requiring Minnie (h/o2) and her husband to obtain flood coverage based on the area that built their new home. She is furious because she has been told that the premiums are extremely high while without this coverage she could lose her home or be forced to pay for forced place coverage from the lender. She is inquiring to the association about how a mortgage company determines a homeowner must obtain this expensive coverage? The webmaster verified and explained that any home that is labeled to be in a flood prone area, which means there is a % chance of being inundated by flood, is required to obtain this coverage! • 1 (Correct Answer) • 5 • 10 • 20 Quiz 32 1. Jerry (h/o#4) is inquiring about the TDP policy. He wants to understand more about the TDP policy and which homeowners it serves. So he reviewed the features of this policy! Now you should review the statements below and determine which statement is not true? • The foundation policy for all homeowner's policies. • Before 1940 this was the only policy available to homeowners. •Used to insure mortgages with balances less than $60,000. •Used to insure mortgages that are 1 million plus in value. (Correct Answer) 2. Jerry's (h/o#4) research found that all of the following are eligible for the TDP, EXCEPT: • Duplexes • Outbuildings used in connection with eligible dwellings. • Garage Apartments. • Mobile homes that are stationary with the wheels attached (Correct Answer) 3. Jerry (h/o#4) determined that all of the following statements regarding the TDP is true, EXCEPT: • Permitted occupancies does not exceed 500 sq ft and does not occupy more than 50% of the dwelling space. • This policy form is for dwelling coverage only. • This policy form includes liability coverage. (Correct Answer) • This policy does not cover theft of personal property. 4. Jerry (h/o#4) determined that the TDP dwelling policy is used for •Homes located in high crime districts. (Correct Answer) • Insuring houseboats. • Insuring condo units. • Dwellings under construction. Quiz 33 1. Jerry (h/o#4) reviewed a sample policy on the website. He discovered that We, Us and Our refers to the in the policy! • Insured • Insurer (Correct Answer) •Claimant • Re-Insurer 2. Jerry (h/o#4) reviewed a sample policy on the website. He discovered that You and Yours refers to the in the policy! • Insured (Correct Answer) • Insurer •Claimant • Re-Insurer 3. Jerry (ho#4) research showed that all of the following are permitted business occupancies, EXCEPT: • Doctor Offices • Dentist Offices • Houseboats (Correct Answer) • Churches 4. Jerry (ho#4) research showed that all of the following are permitted business occupancies, EXCEPT: • Telephone Exchanges • Dance Studios •Churches •Dwellings under construction that will be for a home based business. (Correct Answer) Quiz 34 1. Under the Insurer's duties after a loss, all of the following statements are true, EXCEPT? • The insurer must decide whether the claim will be paid. • The insurer must decide if the claim will be denied • Provide written notice within 10 days (Correct Answer) • The insurer must decide if additional information is needed 2. Joshua (h/o#5) is confused about concealment in reference to his policy. Which statement below is true in reference to concealment or fraud? •Concealment will simply limit the insured to future policies with this insurer. •Concealment or Fraud will lower the claim settlement amount for these actions. • Concealment or fraud will void his contractual agreement before or during a claim. (Correct Answer) •Concealment or Fraud only declines coverage in the beginning of a policy 3. Joshua (h/o#5) is confused on the variables of how insurance works, understanding policy conditions, etc. Therefore he has many questions to answer before buying coverage in Texas. Fifth question he has is how long does the insurer have to perform their duties when a loss occurs to either pay the claim, request more information if needed, or deny the claim. The webmaster verified the information and responded, ' days.' • 10 business • 15 business (Correct Answer) • 20 business • 30 business 4. Joshua (h/o#5) is confused on the variables of how insurance works, understanding policy conditions, etc. Therefore he has many questions to answer before buying coverage in Texas. First question he has is when does all policies begin and end in Texas? The webmaster replies back 'at .' • 12 noon • 12:01 pm • 12 midnight • 12:01 a.m. (Correct Answer) Quiz 35 1. Terrance (h/o#6) is not sure of all of the benefits of various policy forms in Texas. He is from California and the laws (he understands) are different. His first question was about the TDP policies Loss Settlement statement which stipulates how the loss of covered property will be paid by the insurance company. The webmaster replied, ' The claim settlement amount will not exceed the smaller of all of the following, EXCEPT! • The ACV • The cost to repair and replace • The Replacement Cost Value (Correct Answer) • The specified limits of liability shown on the 'dec' page. 2. Terrance (h/o#6) is not sure of all of the benefits of various policy forms in Texas. He is from California and the laws (he understands) are different. His fourth question was in reference to the Mortgage Clause. He asked how much time does the mortgage company have to file proof of loss if the insured has abandoned the property due to impending foreclosure proceedings? The webmaster replied, ' by the days'! • 60th day • 61st day • 90th day • 91st day (Correct Answer) 3. Terrance (h/o#6) is not sure of all of the benefits of various policy forms in Texas. He is from California and the laws (he understands) are different. His second question is in regards to a situation that happened in CA. involving his wife. His wife lost one of her two 4 carat diamond studded earrings. The insurer paid for the loss of the earring and then required them to give the second earring to the adjuster to finalize the claim payment. This action confused Terrance and his wife. Where is it stipulated that the insurer in the policy can take the remaining items that are being reimbursed for as a pair or set in the contract? The webmaster replied, ' This action is listed under the . • Insurer's Option - Salvage Rights (Correct Answer) • Insured's Requirements • Property of the Insured and Insurer • Property to Declare. 4. Terrance (h/o#6) is not sure of all of the benefits of various policy forms in Texas. He is from California and the laws (he understands) are different. His third question was in reference to the Mortgage Clause. He asked how much notice of non-renewal is the insurer required to give the mortgagee? The webmaster replied, ' • 5 • 10 • 20 days'! • 30 (Correct Answer) Quiz 36 1. Titus (h/o#7) is not sure of all of the benefits of various policy forms in Texas. He is from Florida and the laws (he understands) are different. His fifth question was in reference to the Insurers Option for Non-Renewal. He asked how much notice of nonrenewal is the insurer required to give the insured? The webmaster replied, ' • 5 • 10 • 20 • 30 (Correct Answer) days'! 2. Titus (h/o#7) is not sure of all of the benefits of various policy forms in Texas. He is from Florida and the laws (he understands) are different. His fourth question was in reference to the Insurers Option for Cancellation due to various reasons. He asked how much notice of cancellation due to any reason other than non-payment of premium by the insured? The webmaster replied, ' • 5 • 10 • 20 • 30 (Correct Answer) days'! 3. Titus (h/o#7) is not sure of all of the benefits of various policy forms in Texas. He is from Florida and the laws (he understands) are different. His third question was in reference to the Insurers Option for Cancellation due to various reasons. He asked how much notice of cancellation must the insurer give for non-payment of premium by the insured? The webmaster replied, ' • 5 • 10 (Correct Answer) • 20 • 30 days'! 4. Titus (h/o#6)inquiry is due to cancellation by his insurer for added risk within Titus's control. How many days in advance must the insurer notify me if they are cancelling my policy for this reason? • 5 days • 15 days • 20 days • 30 days (Correct Answer) Quiz 37 1. Wayne (h/o#8) is a new Commercial Building Owner and has many questions to ask regarding Texas Business Owners coverage. His fourth question was in reference to Commercial Policy forms! He gave the webmaster the following four causes of loss and asked which would not be an example of the covered perils under the Basic Form coverage? • Fire • Windstorm • Weight of Snow (Correct Answer) •Aircraft 2. Wayne (h/o#8) is a new Commercial Building Owner and has many questions to ask regarding Texas Business Owners coverage. His second question was in reference to Texas policy forms versus the I.S.O. forms that every other state throughout the U.S. uses. He gave the webmaster the following four statements and asked which would best describe Texas Commercial policies? • Commercial policies are not standardized in Texas. (Correct Answer) •Commercial policies require a minimum of $2500 standardized deductible. •Commercial policies only provide for partial replacement of personal property. •Commercial policies in Texas cover a tenants business property. 3. Wayne (h/o#8) is a new Commercial Building Owner and has many questions to ask regarding Texas Business Owners coverage. His third question was in reference to which statement below is NOT TRUE regarding the Commercial Lines coverage? • Commercial Property insurance protects businesses. • Business owners who lease their property may buy policies that protect the building's content. • A property owner's policy will protect tenants from loss. (Correct Answer) • A property owners policy will not protect tenants from loss. 4. Wayne (h/o#8) is a new Commercial Building Owner and has many questions to ask regarding Texas Business Owners coverage. Who is covered by this policy form? The webmaster researched the information and responded All of the following are covered, EXCEPT: •A tenant's loss of their property in case of fire? (Correct Answer) •A business risk. •A farm and ranch owner's business risk. •A business risk coverage provides for full replacement cost for unforeseen repairs that may occur at an office building. Quiz 38 1. William (h/o#9) is a new Commercial Building Owner and has many questions to ask regarding Texas Business Owners coverage. His fourth question was in reference to Commercial Policy forms! He was informed by a colleague that commercial property policies do not cover losses caused from certain types of perils. He gave the webmaster the following various types of perils and asked the webmaster which one WOULD NOT be covered under the Commercial Policy form? • Extensive Glass • Flood Coverage (Correct Answer) • Fire Losses • Business Interruption. 2. William (h/o#9) is a new Commercial Building Owner and has many questions to ask regarding Texas Business Owners coverage. His second question was in reference to Commercial Policy forms! He gave the webmaster the following various business expenses and asked which one would not be covered under business interruption? • Owners salary (Correct Answer) • Employee wages • Telephone payments • Rent payments 3. William (h/o#9) is a new Commercial Building Owner and has many questions to ask regarding Texas Business Owners coverage. His third question was in reference to Commercial Policy forms! He gave the webmaster the following various business expenses and asked which one would not be covered under business interruption? • Employee wages • Long Distance telephone payments • Owners Draw (Correct Answer) • Utility Payments 4. William (h/o#9) is trying to purchase Flood coverage for his home in Texas. So he inquired to the association members division to answer where he could locate coverage in Texas. The webmaster for the assoc. checked and verified that the offers flood coverage in most areas and provided his with the contact information. •NFIP (Correct Answer) • NAR • NAPA • NAIC Quiz 39 1. Wyatt (h/o#10) is also a new Texas Commercial Building Owner and has many questions to ask regarding Texas Business Owners coverage. His first question was in reference to Specialized Commercial Policies! Wyatt was informed by a colleague that specialized commercial property policies are purchased separately or sometimes as an endorsement to the base policy. Wyatt asked the webmaster which of the following policy forms is not a specialized commercial policy? • Inland Marine Coverage • Garage Coverage • Boiler and Machinery • Broad Form Coverage (Correct Answer) 2. Wyatt (h/o#10) is a new Commercial Building Owner and has many questions to ask regarding Texas Business Owners coverage. Wyatt's fifth question was in reference to Commercial Policy forms! Wyatt was informed by a colleague that a commercial property policy can skyrocket due to certain risk factors or preventing losses by having the proper items in place in the Commercial Building; including the building's risk of fire by not having a favorable fire rating. Wyatt was still confused on the variables of determining a building's fire rating. The webmaster explained that installing automatic sprinkler systems can cut a fire rating by as much as % ? • 20 • 30 • 40 • 50 (Correct Answer) 3. Wyatt (h/o#10) is a new Commercial Building Owner and has many questions to ask regarding Texas Business Owners coverage. Wyatt's fourth question was in reference to Commercial Policy forms! Wyatt was informed by a colleague that a commercial property policy can skyrocket due to certain risk factors or preventing losses by having the proper items in place in the Commercial Building; including the building's risk of fire by not having a favorable fire rating. Wyatt was still confused on the variables of determining a building's fire rating. The webmaster explained that a building has building's fire rating? • Three • Four basic elements that effect a • Five (Correct Answer) • Six 4. Wyatt (h/o#10) is a new Commercial Building Owner and has many questions to ask regarding Texas Business Owners coverage. Wyatt's second question was in reference to Commercial Policy forms! Wyatt was informed by a colleague that a commercial property policy can skyrocket due to certain risk factors or preventing losses by having the proper items in place in the Commercial Building; including the building's risk of fire by not having a favorable fire rating. Wyatt asked the webmaster which statement below would effect a building's fire rating? • The builders Name • The building occupants ages • The Location (Correct Answer) • The Fire Department Quiz 40 1. Wanda (h/o#11) is a new Commercial Building Owner and has many questions to ask regarding Texas Business Owners coverage. Wanda's first question was in reference to Commercial Policy forms! Wanda was informed by a colleague that a commercial property coverage sometimes will or will not cover personal property under a commercial risk situation. Wanda was still confused on the variables of determining when personal property would or would not be covered in a Commercial risk situation. The webmaster explained that personal property within feet of the described premises either in the open or in a vehicle would be covered as a Commercial Risk in the Commercial Policy! • 100 (Correct Answer) • 200 • 10 • 50 2. Wanda (h/o#11) second question is in reference to the subject of 'Debris Removal'! Her commercial building is appraised for $125,000.00 She has dwelling coverage for $100,000.00 with a 1,000 deductible. Her claim amount for her fire loss is $50,000.00 The part she is unsure about is which portion of her policy limits and such determines her debris removal allowance for the claim? The webmaster responded back and said • The coverage limitations section is used to determine the debris removal allowance. • The dwelling coverage amount is used to determine the debris removal allowance. • The claim amount, as long as it is within the coverage limits is used to determine the debris removal allowance. (Correct Answer) • The appraised amount is the amount used to determine the debris removal allowance. 3. Wanda (h/o#11) third question is in reference to the subject of 'Debris Removal'! Her commercial building is appraised for $125,000.00 She has dwelling coverage for $100,000.00 with a 1,000 deductible. Her claim amount for her fire loss is $50,000.00. Based on this information, how much would be the maximum allowance for debris removal during her fire claim? The webmaster responded back and said $ • $31,500 • $25,000 • $12,500 (Correct Answer) • $10,000 4. Wilmer (h/o#12) is very upset because his insurance company has denied his debris removal once he submitted the claim seven months (210 days) after the loss occurred. He then decided to review his policy to try and determine the reason for this denial. After careful review of his entire policy, he has four possible reasons as to why it may have been denied. So he asked the webmaster to review his four possible reasons & choose the appropriate response! The webmaster reviewed the reasons and responded ! •All Texas commercial policies have a clause regarding "Debris Removal". This clause stipulates that all statements for debris removal must be presented for payment no later than 90 days from the date of loss. •All Texas commercial policies have a clause regarding "Debris Removal". This clause stipulates that all statements for debris removal must be presented for payment no later than 60 days from the date of loss. •All Texas commercial policies have a clause regarding "Debris Removal". This clause stipulates that all statements for debris removal must be presented for payment no later than 120 days from the date of loss. •All Texas commercial policies have a clause regarding "Debris Removal". This clause stipulates that all statements for debris removal must be presented for payment no later than 180 days from the date of loss. (Correct Answer) Quiz 41 1. Donald had a fire loss at his office building and was able to salvage the webserver and various other office equipment and take the items to a safe place. However, 14 days later the items were stolen at his condo from a break in. He does not have renters insurance & has filed a claim for $6,700 for his stolen business property & has a $500 deductible. So he is asking the other two persons in the insurance chat room if they could tell him how much he (the insured) was going to have to cover of this bill after the insurance company sent their check? Frank, as luck would have it is an adjuster and messengers back to Donald $. • $ 0 • $4700 • $5700 • $6700 (Correct Answer) 2. Edward is inquiring regarding his recent Commercial Fire loss in which he received a bill for $3,700 from the fire department that responded to the fire. How much should he have to pay after his insurer has paid their portion of the bill? Frank once again (because he is a licensed adjuster) messengers him back and replies $ • $500 • $1000 • $2700 (Correct Answer) • $3700 3. Edward is inquiring concerning his recent Commercial Fire loss, in which, he received a bill for $3,700 from the fire department for services rendered during the fire. His question was pertaining to how much the insurer would pay towards this bill based on his policy limits? Frank once again (because he is a licensed adjuster) messengers him back and replies to Edward • $500 • $1000 (Correct Answer) • $3200 • $3700 4. Frank had a recent lightning claim. His dwelling is covered for $180,000. His deductible is $1000.00. His claim occurred on March 1st, 2009. The property that was salvaged at the time of the lightning loss was moved to a storage facility while renovation commenced at the property? He will be covered fully if a loss occurs to his property at the new location until 2009. • March 15th • March 31st •April 30th • March 11th (Correct Answer) Quiz 42 1. Henry's next question to the webmaster was still in reference to the maximum limits of coverage under the Coverage Extension section of his policy. He has a claim valued at $200,000 for his property loss. His building is insured for $750,000 and he has a $5,000 deductible. How much of this claim would HE, THE INSURED be responsible to pay? • $ 0 • $ 5,000 • $ 12,500 • $ 17,500 (Correct Answer) 2. Henry's question to the webmaster is in reference to the maximum limit of coverage under the Coverage Extension section of his policy. Therefore has a claim for $200,000 for his property loss. The value of his building $750,000 and he has a $5,000 deductible. How much of this claim would his insurer be responsible to pay? • $175,000 • $182,500 (Correct Answer) • $187,500 • $200,000 3. Isaac is confused about coverage for items in the open of the described premises as stated in the declaration section of his policy. The item(s) must be within • 50 feet from the covered premises to be covered. • 100 feet (Correct Answer) • 200 feet • 1000 feet 4. All of the following locations that contain items of the insured as described in the declaration section of the insured's policy are covered EXCEPT • Property in the building • Property on the building • In a vehicle within 200 feet of the building. (Correct Answer) • In a vehicle within 100 feet of building Quiz 43 1. Larry explained to his two collegues that he felt he was overcharged for the restoration of his files and paperwork that had been taken or during the break in that occurred at his four offices. The bills to repair the items cost $1,900 per location! How much would Larry be responsible to cover at each location? • $500 • $900 (Correct Answer) • $1000 • $1500 2. Larry explained to his two collegues that he felt he was overcharged for the restoration of his files and paperwork that had been taken or destroyed during the break in that occurred at his three offices. The bills to repair the items cost $1,900 per location! How much would the insurer be responsible to cover at each office? • $500 • $900 • $1000 (Correct Answer) • $1500 3. Jerry, Kyle, and Larry are chatting about their commercial coverage forms, as well as, the personal effects and property of others section of their policy. All of the following statements below are true regarding "Personal Effects and Property of Others", EXCEPT: • Personal effects owned by you. • Personal effects of your officers. • This extension of coverage is limited to $1,000.00. (Correct Answer) • Personal effects of your employees. 4. Kyle asked the other two building owners to clarify what is not a covered loss under the Personal Effects and Property of Others Coverage Section. They explained that this extension does not cover • Losses that are damaged by theft (Correct Answer) • Losses within 100 feet of the described premises • Losses not scheduled in the policy Losses of the owner Quiz 44 1. Oliver has an interesting question to ask whomever can help him to understand. Which of the following situations would allow coverage for temporary locations where items can be stored? •A location Oliver leased. •A location Oliver owns. •A Location Oliver does not own. (Correct Answer) •A Location Oliver operates. 2. Mike inquires about the standard amount Texas Insurance Companies pay for Property Off Premises. The most the insurance company will pay for losses or damage under this extension is $_ . • $2500 • $3750 • $4000 • $5000 (Correct Answer) 3. Mike is puzzled about the causes of loss that would or would not be covered under his "Commercial Outdoor Property" portion of his policy. He presented the following items to Nancy and Oliver and was seeking their opinion as to what would be considered a covered cause of loss under this section. They replied, "All of the following are considered to be a covered cause of loss under "Commercial Outdoor Property", EXCEPT: • VMM (Vandalism or Malicious Mischief) (Correct Answer) • Aircraft • Riot or Civil Commotion • Fire 4. Nancy has a question for Mike & Oliver.The question was regarding her recent damage caused by a tornado at her home based business. She had a total of 10 trees damaged and the cost to replace them was estimated to be a total for all repairs totaling $5,000.00. How much will the insurer pay for this claim? • $250 • $1000 (Correct Answer) • $2500 $5000 Quiz 45 1. Paul asked Robert to review each example below and determine which one of the following risk would be eligible for the TBOP? •A building tenant (Correct Answer) •A single family dwelling homeowner •A Commercial Building Owner with heavy public traffic due to a movie theater inside. •A Commercial Condominium Owner's Association 2. Qwona asks both Paul and Robert to explain which statement below is TRUE regarding TBOP? • This is an extremely limited policy. (Correct Answer) • This policy is typically for companies with many employees. • This policy is typically used for business with a high risk and claims situation. • This policy is recommended for companies who deal strictly with the public. 3. While chatting the three of them were asked to join in Insurance Trivia. The question was the Insurance Company cannot cancel a policy after it has been in effect for 60 days, Except for which reason below? • The Insurer determines there is duplicate coverage's following the same risk. • Transfer of Rights with consent of the insurer. • Loss of the insured's reinsurance coverage. (Correct Answer) • The insurer is using the Liberalization Clause. 4. Paul ask Qwona and Robert to help him in determining which of the business examples below would be the best example of business losses covered by the TBOP? •A small law firm (Correct Answer) • Walmart • Sams Club •CVS Pharmacy Quiz 46 1. Robert stated, 'Hey guys did you both know that if an insurance company cancels or non-renews the policy, they must . • State the reason for cancellation or non-renewal. (Correct Answer) • State the refund of any unearned premiums. • State the top five insurance competitors in which you may contact for replacement of your current policy coverages. • State the length of time until you may request coverage from this insurer again. Correct 2. Paul also had a question for the webmaster regarding the 'special limitations' under the Theft clause. Paul question was, 'How much his wife's furs would be covered for monetarily?' The webmaster replied $ . • $500 • $1000 • $1500 • $2500 (Correct Answer) 3. Paul has a question for the webmaster regarding the three coverage forms of TBOP. He has chosen form BBroad form. The section regarding Theft has specific limits for himself and his wife's jewelry. His question to the webmaster is, 'How much coverage, per occurrence, does his policy allow for loss of all of their jewelry, under TBOP form B' • $500 • $1000 • $1500 • $2500 (Correct Answer) 4. Qwona questioned Paul and Robert as to the notice the insurer must give the first named insured in the event of cancellation of the policy by the insurer! Robert responded that the notice must be at least days in advance. • 5 • 7 • 10 (Correct Answer) • 15 Quiz 47 1. JoAnn is inquiring to Jerry and John if either of them know the answer to the following question that is effecting his business at this time. Under the TBOP, If I discovered my fur coat is stolen and it is valued at $8000, How much will the insurer pay on this claim? • $250 • $2500 (Correct Answer) • $4000 • $8000 2. John is inquiring to Jerry and JoAnn if either of them know the answer to the following question that is effecting his business at this time. Under the TBOP Limitations section, If I have several panes damaged due to a covered loss, how much would the insurer pay per pane, up to the $500.00 max per occurence ? • $25 • $50 • $100 (Correct Answer) • $200 3. John is inquiring to JoAnn and Jerry if either of them know the answer to the following question that is effecting her business at this time. Under the TBOP, If I have four outdoor signs damaged during a fire loss, How much would the insurer pay for all signs damaged during the