GEORGIA PROPERTY AND CASUALTY INSURANCE EXAM 2 LATEST COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS

Lambert Jewelers' BOP doesn't provide adequate coverage for jewelry and gems it owns, jewelry in its care that is owned by customers, and assorted items of property. What kind of commercial inland marine coverage do you recommend? - ANSWERS,Jewelers Block Abbie's homeowners policy responds to a lawsuit filed against her. In addition to paying up to the limit of liability, how else will Coverage E ' Personal Liability on her policy respond? - ANSWERS,it will provide a defense Valerie's home is insured on a dwelling policy. It is destroyed when it falls into a sinkhole. How does Valerie's insurer respond when she submits a claim for damage to the building? - ANSWERS,It denies her claim per the Earthquake exclusion Which of the following statements BEST describes the personal liability coverage afforded on the ISO homeowners forms? - ANSWERS,The ISO homeowners forms provide the same liability coverage What homeowners form was designed to provide coverage for older homes because their replacement values exceed their market values by a significant amount? - ANSWERS,HO-8 Modified Coverage Form Zara wants the peril of theft included on her dwelling policy. Which form or document will provide the desired coverage for theft? - ANSWERS,endorsement Farm Liability Coverage Form (FL 00 20) provides all of the following coverages EXCEPT: - ANSWERS,Loss of use (Coverage L) Which of the following is not a standard flood insurance policy coverage form? - ANSWERS,homeowners form Standard property insurance policies exclude coverage for property damage to electrical devices caused by all of the following EXCEPT: - ANSWERS,damage from lightning The farm insurance program combines homeowners coverage with commercial property and liability coverage. The property coverages are addressed in separate forms. Which of the following forms is not among the property forms of the farm insurance program? - ANSWERS,Farm Preservation of Property Form The ordinance or law endorsement provides three separate coverages but does not include coverage for - ANSWERS,Loss of use while repair work is underway (Coverage D) Ted is a carpentry contractor who builds decks, porches and room additions. Ted's business is eligible for a businessowners policy as long as - ANSWERS,annual payroll is $300,000 or less and he does no work at heights greater than three stories Which of the following perils is not excluded on a dwelling policy? - ANSWERS,lightning A complete commercial property policy is made up of several separate forms, which include - ANSWERS,Declarations, commercial property conditions, and one or more causes of loss forms Mr. Klondike insured property on a commercial inland marine policy. After one item of insured property suffered a total loss, what policy condition paid Mr. Klondike's claim and then refunded the unearned premium on the destroyed item? - ANSWERS,Reinstatement of Limit after Loss The burglar alarm in Dexter's store has been malfunctioning lately so turns it off one weekend to avoid bothering his neighbors when it rings unintentionally. A burglary occurs on Saturday and $25,000 worth of jewelry is taken. Dexter has a protective safeguards endorsement on his BOP. Will the endorsement cover the loss? - ANSWERS,The insurance company will likely deny the claim because the alarm system was inoperative. What percentage of flood losses occurs in flood zones that have less than a 1 percent chance of flooding in a given year? - ANSWERS,25 Which of the following conditions is not a commercial property condition? - ANSWERS,Arbitration Mr. Conrad lives on the second floor of a duplex he bought. What definition in his homeowners policy describes his home? - ANSWERS,Residence premises The valuation condition of the ISO commercial inland marine policy states property will be valued at the smallest of three amounts. Which of the following is not one of those amounts? - ANSWERS,The market value of covered property Albert's homeowners policy provides open perils coverage on his home and named perils coverage on his personal property. In addition, it provides personal liability coverage. On what form is Albert's homeowners policy written? - ANSWERS,HO-3 Special Form Mr. and Mrs. Yamakawa report that the new garage they added to their house just collapsed. The claims adjuster determines the collapse is the direct result of the faulty design and workmanship of the contractor who built the garage. What exclusion on the Yamakawas' dwelling policy will apply to the loss? - ANSWERS,Faulty, inadequate, or defective processes, procedures, materials, or workmanship Freddie has an equipment breakdown policy for his restaurant. When a power surge damaged the restaurant's refrigeration system, the restaurant had to close while repairs were made. The policy will not pay Freddie for which loss? - ANSWERS,Additional costs to comply with new building codes Don is a contract farmer who owns several pieces of farm equipment and works for several farmers. He has a mobile agricultural machinery and equipment coverage form for this purpose. This form covers all of the following farm equipment EXCEPT: - ANSWERS,Irrigation equipment listed with a limit of insurance Bryan's homeowners insurance company responds to a claim for bodily injury filed by his neighbor. If the insurance company makes payment without regard to Bryan's legal liability, under what coverage is it paying? - ANSWERS,Coverage F ' Medical Payments to Others Which of the following coverages receives loss settlement on a replacement value basis on the DP-2 and DP-3 forms? - ANSWERS,Coverage A ' Dwelling Mrs. Zarella owns vacant land and calls you to add its location to her homeowners insurance policy. You tell her the vacant land doesn't need to be added to the policy because it's already covered based on which of the following terms that are defined in the policy? - ANSWERS,Insured location A storm at sea forces Davy Jones Freight Company to jettison some cargo to lighten the ship and keep it from sinking. In ocean marine insurance, what provision determines how the loss to the cargo's owner is treated? - ANSWERS,General average The Indiana Mine Subsidence Insurance Fund, which makes mine subsidence insurance available to owners of property located in certain identified counties, serves as - ANSWERS,The reinsurer for insurance companies Beatrice works from her home, on a part-time basis, as a hairdresser. What definition in the homeowners policy describes Beatrice's activities as a hairdresser? - ANSWERS,business Jason bought a sporting goods business 'as is,' which included the building, its contents, and some old mechanical equipment which required considerable maintenance to keep it operational. Jason purchased an equipment breakdown policy and tells you of his surprise after his claim for the extra maintenance expenses were denied. You tell Jason - ANSWERS,Extra maintenance expenses to keep equipment running are excluded In a special Mr. Ursini's home is located in an area that has a 1 percent chance of being flooded in any given year. Where does Mr. Ursini live? - ANSWERS,In a special flood hazard area (SFHA) Mrs. Delaney hired a contractor to build a deck on the back of her house. She purchased the necessary lumber and it's piled in her back yard. Under what coverage part of her homeowners policy is the lumber insured? - ANSWERS,Coverage A ' Dwelling Joanne, an agent, proposes a variety of commercial property insurance forms to provide a customer with the desired coverage. Two of the forms are interline forms, which - ANSWERS,Can be used with more than one line of insurance Martin works for A-1 Novelty Shop and injures his back when he falls from a defective ladder. In addition to his claim against A-1 Novelty, his wife files a claim for mental anguish and pain and suffering as a result of his injury. Will A-1's businessowners policy cover these claims? - ANSWERS,No. These claims are covered under workers compensation insurance.