Final Exam - Ohio Property and Casualty Insurance AND BUSINESS ALL ANSWERS CORRECT 2025 SOLUTION GUARANTEED GRADE A+

Final Exam - Ohio Property and Casualty Insurance AND BUSINESS ALL ANSWERS CORRECT 2025 SOLUTION GUARANTEED GRADE A+ Sarah has a homeowner's policy which covers stolen property, and she has a computer stolen. Her insurer pays her 1k to replace the computer. Two weeks later, Sarah's computer is recovered by the police. Which of the following would be true in this scenario? Sara would have a choice of returning either the benefit or the computer to her insurer Colin is driving the company car on the way to meet a new client when he is involved in an accident. The accident claim would fall under? His company commercial line auto insurance policy Michelle barrows Lisa's car and causes an accident while driving it. How will insurance apply? Lisa's policy applies first and Michele's applies to any excess Uninsured motorist coverage is NOT provided for bodily injury sustained by a covered person if? Injury results while a covered person is occupying a covered auto property for a fee. Which of the following describes why insurance agents should carry Errors and Omissions insurance coverage? E&O insurance protects an agent from loss in case a customer files a lawsuit claiming she provided inappropriate advice or failed to inform him Who is responsible for paying a Commercial Package policy? The First Named Insured On a business auto coverage form, insureds select coverage from various types of autos. Each coverage type has a numerical symbol. Which symbol adds UIM coverage in states that require it? 6 J has rented a room in his home to a tenant and has helped furnish the rented room with a carpet, fridge, and sofa costing him 4k. Less than one month later these furnishings were detroyed in a small fire. How much will Jcollect from his HO-2 policy for this loss? 2.5k When Paula's property was damaged by widespread flooding, her policy covered which of the following losses? A portable air conditioner J owns an antique, historic home that has a custom priceless stained glass window.... Functional Replacement Cost Sky Leasing Company rented an apartment to Louisa Yes , because wrongful eviction is covered under CGL policies How long are benefits payable under the loss of use coverage on the homeowners policy? The shortest time it takes to repair or replace the dwelling. Which of the following statements is INCORRECT regarding Workers Compensation Insurance? Workers Compensation contracts consist of 3 parts When hidden decay caused a wall of the garden supply firms equipment hangar to collapse The fire damage to the greenhouse A carrier has a expense ration of 120%. This indicates An underwriting loss has occurred. When franks 200k farmhouse was damaged the replacement cost was 50k 50k A required part of a contract that stipulates the insured must make premium payments on time in exchange for coverage by the insurer is known as: Consideration Which of the following is INCORRECT about insureance fraud regulations? Those providing testimony in a fraud investigation are immune from any civil liability In 1980, G had a custom home built and purchased an HO-5 policy. X is the only person that can collect loss because they were the insured at the time of loss. What does NOT need to be in place in order to be self-insured under Ohio Workers' Compensation? An adequate human resources department to handle claims Tyler has a business owner policy with electronic data additional coverage on his policy. Valuable information tyler had stored on a CD-ROM was wiped out during a thunderstorm If an agent is charged with a misdemeanor involving theft, any felony, or crimes of moral turpitude, he or she must report the charge to the department of insurance. Within 30 days of being charged. Which of the following is INCORRECT about insurance fraud regulations? Those providing testimony in a fraud investigation are not immune from civil liability If a violation has caused or is about to cause substantial and material harm, the Superintendent may issue an order that the person in violation cease and desist from the activity. Notice of the order must be mailed. By certified mail An underwriter viewing a map to determine the nature of the gerneral area in which the insured's property is located is known as: Inspection reports Statements made by an applicant for property insurance which, in the opinion of the applicant, are true to the best of theri knowledge are called: Representations Commercial Package Policies may be written for any of the following term lengths EXCEPT 4 years If Michael has a comprehensive auto insurance policy with a 500 deductible and he gets into an accident where the repairs total 300 which of the following would be true His insurer would pay nothing. The answers on an insurance application are best described as Representations All of the following are considered farm personal property under the terms of a Farm Property Insurance Policy, EXCEPT: Grave Markers Under the terms of an DP-2 policy, the peril of Freezing of Pipes Requires that the insured must take reasonable steps to heat the building and shut off the freezing water supply or drain any systems of water. A short term proof of insurance coverage is know as a Binder The Ohio Fair plan is not intended to compete with the standard insurance marketplace. 2 insurers The specific start date before which an insurance company will not pay claims in a claims-made form is known as what? The retroactive date In lieu of license suspention, denial or revocation, the Superintendent of insurance may require the agent sign and adhere to a consent agreement That is public record An insurer will give ___ days notice of cancellation under the terms of a Businessowner's policy for a building that has been vacant for 60 days or more 5 days In BOP policy, changes can be made by endorsement, and must be accepted in writing and signed by: The first named insured The liability policy that coveres issues such as sexual harassment, wrongful discharge and discrimination is Employment practices Which of the following is NOT a category of WC benefits? Compensation for Loss of Household Services B finally finished the construcction of her new consulting website when she placed the logo that took her over a year to design. Internet Liability Kevin has a Commercial Package Policy which lists his name first, but also includes his wife Shirley. Is it possible for Shirley to make changes to this policy? It is not poissible for shirley to make any changes to this policy. If a painter wished to buy a Business Owner Policy? His payroll cannot exceed 300k Purchasing an insuranace policy to cover one's risk si an example of: Risk Transfer Collapse is covered as an additional peril under a Commercial Property Policy because The covered causes of collapse are limited The Comprehensive Coverage in the Physical Damage Section of a Commercial Auto form will cover all of the following perills except: Unintentiona contact with a garage door. Susan fails to show up for interview scheduled by the Department of Insurance. The Superintendent may do which of the following? Suspend, or revoke her insurance license Before using an assumed name other than the name issued on the license, the agent must Inform the department of insurance before using the asssumed name Which of the following involves the full cost to repair or replace destroyed property? Replacement cost. In property insurance, insurable interest must exist At the time of loss. All of the following losses are excluded udner Business personal property coverage form, EXCEPT Inventory. Which of the following statements pertaining to Medical Payment Part C of the CGL is False? A person has to establish the liability of the insured before medical benefits will be paid under the contract. The personal auto policy covers what persons under the medical payments section? All occupants of the insured auto What endorsement to the commercial auto policy is necessary to cover the use of a non-owned vehicle for personal use by the business owner? Drive other car coverage Which of the following is a unique coverage under the TruckersPolicy? Trailer Interchange Coverage In property insurance, an offer is made: When the policy had been applied for What is NOT an essential element of a contract? adverse selection Statements made by an applicant for property Isurance which, in the opinion of the applicant, are true to the best of his or her knowledge are called: Representations Which of the following best describes risk? an uncertain possibility that loss may or may not occur Mking or permitting nay inequalities between individuals of the same class with regard to premium rates charged best describes. Unfair discrimination. J is reading his homeowners policy and there is langauge that states that while each insured is coovered but the limit of his coverage is not increased for any single occurrence. J is reading the: Severeability of insurance clause If a business were to shut down due to a coverd loss, the indirect consequential loss that would accrue over time would be characterized as a/an Loss of income Michelle is working at a business ofr a short period as a substitute for their permanent receptionist, Tonya, who is out on maternity leave. According to the definitions section of a standard commercial genreal liability policy, what type of worker does this make Michelle? A temporary worker In the event of multiple earthquakes in a short period of time, how does the earthquake endorsement (personal lines) define a single quake? Multiple earthquakes that happen within 72 hours are deemed to be a single quake. Flagstone Company as a CPP policy with an ordinace or law coverage endorsement. It will pay for demolition of the undamaged portion, removal of debris and reconstruction of the entire facility. Which form of homeowner's insurance was developed for use by condo owners? HO-6 The peril of collapse in a dwelling property policy will not pay for loss if: Caused by obvious damage due to nesting nad infestation by raccoons in the attic. Which term means permanent termination of all authority to hold nay license as an agent in the State of Ohio Revocation An automobile, casualty or liability policy will provide coverage all of the following EXCEPT Punitive damages A licensee may be granted inactive status in which of the following situations? Reserve military status All applicants would qualify for the Ohio Fair Plan EXCEPT: Mr. White who is requesting to ensure a vacant dwelling The insurer relies on the application information to be truthful and the insured relies on the insurer to be truthful and fair in the claim settlement. This is an example of a Contract of Utmost Good Faith Homeowners coverage that provides for loss when the insured dwelling is not habitable due to a covered loss is found in Coverage D What loss would be excluded by a policy providing automobile medical payments insurance? Insured is injured when he is underneath the auto and it fall on him when changing the oil. The fine and or penalty for transacting insurance without a license is 25 to 500 per violation and or 6 months An offer and acceptance is also referred to as an: Agreement D just purchased a warehouse at an auction. When D receives the keys and documents, he arrives at the building to find it completely empty with no people or contents. the warehouse is Vacancy When determining negligence in an unintentional tort, what does "damages" take into consideration? Did the injured party suffer financially? In a Fidelity Bond, the period of discovery: is the time the employer has to realize they have suffered loss. The part of a homeowners policy that will pay the medical expenses of an injured person when the insured is not legally liable to pay but feel a moral responsibility is: Coverage F The insured's home has replacement cost of 150k. In order to have replacement cost coverage for partial losses to the dwelling, their homeowners policy must be written with a face amount equal to or greater than 120k A commercial auto policy can contain one or more of four coverage forms. Which of the following is not a commercial auto coverage form? Livery Brian is adequately insured with a homeowners policy containting an 80% 100% Which of the following individuals would nto be considered as being an insured under a Commercial General Liability policy? A real estate agent who is also employed as the insured's executive secretary. What is the minimum coverage amount requirement for Basic form coverage in a dwelling property policy? 0 All of the following constitutes a insurance transaction EXCEPT An HR manager helping enroll employees in a group health benefit An agent engaging in the unfair and deceptive act of providing false information as to the financial condition of an insurer is guilty of the unfair trade practice of Defamation Under safe depository endorsemnts, which of the following losses are covered? Legal action expenses related to the insured's liability of renting safe depost boxes Saint Sebastion's Hospital has a brochure printed and distibuted throughout the community. A man pictured in the brocure sues the hospital because he thinks the photograph makes him look sickly and has caused him to lose personal business. Which part of the hospital's policy will cover such a claim? Advertising injury For the purposes of insurance, insolvency means the inability to pay obligations within 30 days of them becoming due. Lamar bought himself a brand new luxury sedan. he decided to get a livery license and make some extra money on the side. What type of policy would Lamar need to have? A commercial auto policy T caused an accident that caused B injuries that forced him to miss a week of work. The type of damages that B would collect for lost wages are: Special damages When Howard's home was damaged due to a catastrophic flood he discovered He did not own flood insurance. B buys a freight insurance policy that has a limit of liability of 1mil with a 10k deductible 990,000 What is true with regard to tail coverage available udner a claims made form? Provides coverage from property damage sustained during the expiring policy period and reported during the 60 days following the end of the policy period. If the Attorney General has commenced criminal procedures against the agent on behalf of the state the maximum civil penalty the court can impose is: 25k All Commercial Package Policies have the samea Common policy conditions. A contract in which only one party makes an enforceable promise is said to be Unilateral Which of the following uses of a detached garage is permissible under the terms of Coverage B under a dwelling property policy? A non-tenant of the insured rents the structure as a private garage. An insured has a basic dwelling policy with a replacement value of 100k. To save money 5000 All of the following are examples of property loss exposures EXCEPT: Damages cvaused to another party. What best describes a broker? A person who represents the client Lydia hit a car covered under Company X's BAC policy that was being driven by an employee of Company X Yes, defense costs are paid by the insurer whether the insured is laibile or not In a property insurance contract, the declarations state: Premium Amount What loss would NOT be covered under a policy providing automobile comprehensive physical damage? Car runs over a log causing a blown tire. False arrest, malicious prosecution and slander would be considered: Personal Injury The effective date of coverage, policy premium, insured's name, address, and other insured-specific information is found on what part of a worker's compensation policy? Declarations page What is NOT eligible for insurance under the personal auto policy? Motorcycle In order to be an admitted carrier in Ohio, auto insurance companies must participate Ohio Fair Plan Inchmaree is when: Damages caused by a ship's captain when navigating Part Two - Employers Liability of a Workers' Comp Policy covers all the following EXCEPT? Medical Expenses and Disability benefits depending on disability type Preservation of Property, an additional coverage of the Commercial Building and Business Personal Property Form, protects property removed to protect it for further loss for up to how many days? 30 The cause of a los is referred to as a Peril Which of the following statemetns is TRUE regarding insurability? Only pure risks are insurable Jo has a home owners policy covering his dwelling. If his home became unusable Coverage D An insured doctor believes that the doctors malpractice insurer is willing to pay a claimant an unreasonably large amount of money to settle the claim. Which of the following clauses in the Professional Liability policy requires that the insurer obtain: Consent to Settle a Loss What would NOT be a required element of a contract? Written Agreement. A Business Income with Extra Expense form would cover which of the following scenarios? A tornado destroys the front of Al' Vinyl The types of bonds that a contractor would usually purchase are: Performance, bid and payment bonds. the state may suspend, refuse to renew or revoke an agent's license if their total written premium 50% Something that increases the chance of a peril occurring is known as Hazard Which is not an ptional coverage on the personal auto policy. Liability In most states workers comp coverage is compulsory ifg you have one or more employees. The employer elects to not provide coverage In the event of multiple earthquakes in a short period of time, how does the earthquake endorsement define a single quake? Within 72 hours The Motor Carrier Act of 1980 requires vehicles to have certain levels of coverage for public laibility and environmental restoration. How is the coverage limit determined? By what is being transported. On the homeowners policy, the indirect Coverage D is also called Loss of use. An agent's license Renews biennially on or before the last day of the agent's birth month Each insurance company shall certify to the Superintendent of insurance the names of all Ohio agents for whom it requests appoinments or reappointments before April 15th The coverage extension "Business Personal Property Temporarily in Portable Storage Units" covers personal property in a container or trailer On the insured premises for up to 90 days. Which of the following liability losses is/are excluded by the Personal Auto Policy? Insured runs over her son's bicycle while backing from the garage. When a policy is canceled and a refund of premium is due, it must be made Within 30-45 days Can someone purchase a homeowners policy for a farm that only he lives on? No, because farms excluded from HO policies. In some states like Ohio, ND, Wash, and Wyoming, private insurers are not allowed to participate. Buy the coverage from the state bureau of workers comp If an insurance company is canceling a policy for reasons other than non-payment of premium, a warning of how many days prior to the effective date of termination of covreage must be given to the insured? 5 days Under the Volcanic Eruption peril in a homeowners policy, any eruptions occurring within which of the following consecutive periods of time constitutes a single event? 72 hours An agent's Property & Casualty license must be 2 yrs The non OEM aftermarket crash parts regulation prohibits Using non OEM aftermarket parts unless the car marker is willing to warranty them. or Repari order Generally, which class of construction would carry with it the lowest insurance premiums, all other factors being equal? Fire resistive Tom owns a small business and hires a messenger to take last night's earings and deposit it in the bank. On the way to the bank, the messenger is robbed and the deposit has been stolen. Which of the following crime coverage forms would cover such an event? Robbery outside the premises. Besides the insured's primary residence, each of the following would be considered an insured location except A business office rented to the insured. Which of the following physical damage to a car is considered a collision? A driver is distracted by a billboard The responisbility for the insured to prevent further los sunder reasonable conditions is listed under: Duties of the insured Under the liability portion of a personal aut opolicy, which of the following would not be an insured person? The insured's neighbor, who has borrowed the car without asking the insured. The standard limit for Part 2, employer's liability is 100k per employee. Which of the following Homeowners forms is not named perils coverage? HO-5 If the Superintendent of Insuranec terminates an agent's license for any reason. An agent may appeal the ruling to the state supreme court Through the State of Ohio, businesses that cannot obtain insurance in the standard market place can obtain coverage through which of the following: The Commercial Joint Underwriting Association Which of the following may be added to a property insurance contract tot amend coverage mid-term? Endorsement What is the standard deductible for a Business Owner Policy? 500 Individuals with higher loss exposure have the tendency to purchase insurance more oftern than those with average loss exposure. Adverse selection Quentin has insured his 26 ft 25hp His homeonwers policy will cover his liability and a limited amount of collision damage. A negligent act that, defined under civil law, is an action recoverable for injuries inflicted upon an innocent party is known as a: A tort An individual licensed as an agent in his state represents A company Company XYZ offers a discount to its insureds when they install a centrally monitored security system Loss Control What is NOT a requirement of the Fair Credit Reporting ACT? If an insured has a policy with split limit liability of 25/40/15, what is the maximum amount the insurer will pay for property damage? 15k Under a personal auto policy, what type of physical damage loss is NOT covered? Stereo equiptment. A certificate of insurance: Is proof that the policy was issued. CONTINUED..