Idaho Casualty Exam Questions and Answers (Graded A+)

Idaho Casualty Exam Questions and Answers (Graded A+) another name for insurance agent is: principal producer broker recorder - producer another name for insurer is: principal producer broker policymaker - principal The Broad Form Products Coverage endorsement in commercial auto policies does which of the following? Adds property coverage Removes the defective products exclusion Adds the defective products exclusion Removes property coverage - Removes the defective products exclusion All of the following conditions must exist for injury or damage to be included in the products and completed operations hazard of a commercial general liability policy EXCEPT The injury or damage must occur after the insured has released physical possession of the product to another. The injury or damage must occur within 90 days after the insured's work is completed. The injury or damage must occur away from the inured premises. The injury or damage must arise out of the insured's product or work. - The injury or damage must occur within 90 days after the insured's work is completed. *The products and completed operations hazard included injuries or damage that occur after the insured has completed its job and left the site, or relinquished control of t product it manufactured or sold. There is no time limit on the injury or damage. CGL Coverage B (Personal and Advertising Injury) will cover An offense committed by an insured whose business is advertising. Inadvertent injury to others caused in the course of advertising the insured's product. The failure of goods o conform to advertised quality or performance. Oral or written publication of material the insured knows is false. - Inadvertent injury to others caused in the course of advertising the insured's product. An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage. This is an example of: Concealment Misrepresentation Fraud Breach of warranty - Concealment When a parent is required to pay for damages caused by his or her children, this is an example of Strict liability Intervening cause Assumption of risk Vicarious liability - Vicarious liability Which of the following statements is true regarding a mobile equipment endorsement in commercial auto policies? Mobile equipment is covered for property insurance. The endorsement is available for additional premium. The endorsement is automatic. Liability coverage is not provided on equipment that is being towed. - The endorsement is available for additional premium What is the legal defense that can be used in most states in which proportionate damages may be awarded when both the plaintiff and defendant were negligent? Proximate cause Comparative negligence Relative degree of damage statute Contributory negligence - Comparative negligence Who are the parties to a bond? Principal, obligee, and guarantor Insured and agent Surety and custodian Contractor, broker, and dealer - Principal, obligee, and guarantor Which of the following statements would be an example of a product liability claim? The insured's product has to be recalled because of an expiration date. Faulty packaging of a cereal caused spoilage that resulted in someone getting sick. An insured, while delivering product to a customer hits another car with the delivery truck causing bodily injury and property damage Someone tampers with the insured's product causing the insured to have to recall all products that are on the shelf. - Faulty packaging of a cereal caused spoilage that resulted in someone getting sick. The court finds that both parties of the case are negligent. The extent of negligence is determined for each party, and the amount of damages awarded are adjusted accordingly. This illustrates the process of: Comparative liability Comparative negligence Proportional negligence Proportional liability - Comparative negligence Which of the following entities protects policyowners, insureds, and beneficiaries under insurance contracts when insurers fail to perform contractual obligations due to financial impairment? Consumer Protection Agency Insurance Guaranty Association Insurance Consumer Protectorate Insurance Solvency Association - Insurance Guaranty Association What effect does the Terrorism Risk Insurance Act of 2002 have on the war and military action exclusion with regard to property and casualty insurance? Replaces the exclusion for military actions with an exclusion for terrorist acts only. Eliminates the exclusion from policies written after 2002. Nullifies the exclusion of certified acts of terrorism as covered by the act. Narrows the exclusions to include coverage for both terrorist and military actions. - Nullifies the exclusion of certified acts of terrorism as covered by the act. The Gramm-Leach-Bliley Act was passed to: Protect private customer information filed with a financial institution. Define insurance as interstate commerce. Allow consumers access to credit and private consumer reports. Allow insurance companies access to medical information for underwriting purposes. - Protect private customer information filed with a financial institution. Which of the following terms refers to such disabilities as the loss of a limb, hearing, or eye sight? a) Permanent partial disability b) Permanent total disability c) Temporary total disability d) Temporary partial disability - a) Permanent partial disability How long will auto Part B cover medical expenses? Up to 1 year Up to 2 years Up to 3 years Medical payments are excluded. - Up to 3 years Part A - Which part of an auto policy covers liability? Part A Part B Part C Part D - Part A Which part of an auto policy covers medical payments? Part A Part B Part C Part D - Part B Which part of an auto policy covers uninsured/underinsured motorists? Part B Part C Part D Part E - Part C Which part of an auto policy covers Damage to your Auto? Part B Part C Part D Part E - Part D Which part of an auto policy covers Duties After a Loss? Part C Part D Part E Part F - Part E Which part of an auto policy covers general provisions? Part C Part D Part E Part F - Part F Auto Part B covers: medical expenses only medical and funeral expenses medical, funeral, and lose wages It excludes medical expenses. - medical and funeral expenses