Kentucky Exam QUESTIONS AND
ANSWERS GRADED A
The insured and her 18-year-old son, who lives in the
insured's household, are crossing the street when both of
them are struck by a drunk driver. The Part B - Medical
Payments coverage of the insured's personal auto policy
will:
Provide coverage for the son
Provide coverage for the insured and the son
Not provide coverage because they were a pedistrian -
CORRECT ANSWER Provide coverage for both the insured
and her son
A business covered by a standard Businessowners policy is
shut down due to the acts of a civil authority. Which of the
following additional coverages would NOT be subject to a
waiting period before coverage would apply?
Business Income.
Extra Expense.
Extended Business Income.
Business Income from Dependent Properties. - CORRECT
ANSWER Extra Expense
The Mobile Home endorsement may be attached to which of
the following Homeowners forms?
The HO-2 or HO-3 only.
The HO-6 only.
,The HO-2 or HO-5 only.
The HO-3 only. - CORRECT ANSWER The HO2 & HO3
After property or casualty coverage has been in effect more
than 60 days in Kentucky, a notice of cancellation may not
be issued unless it is based on which of the following
reasons?
I. A violation of any local fire, health-safety, building, or
construction regulation or ordinance
II. Nonpayment of premium
III. Discovery of fraud or material misrepresentation made by
or with the named insured's knowledge in obtaining the
policy
IV. Discovery of willful or reckless acts or omissions by the
named insured which increase any hazard insured against -
CORRECT ANSWER I, II, III and IV.
Which insuring agreement of the Personal Auto policy would
provide coverage for the damage caused to the other
driver's car, when the insured was at fault in an accident?
Part D - Physical Damage
Part B - Medical Payments
Part A - Liability
Part C - Uninsured Motorists - CORRECT ANSWER Part A
Mary intentionally trips her neighbor while the neighbor is
trespassing on the insured's property. Although the neighbor
is not injured, Mary gives the neighbor $500 in cash to settle
any potential liability claim. How will Mary's insurance
company most likely respond in this situation?
,The insurer will reimburse Mary for the entire $500.
The insurer will reimburse Mary for $500, less any applicable
deductible.
The insurer will sue the neighbor for the return of the $500
because the neighbor was not injured.
The insurer will deny liability coverage because Mary's
action was intentional. - CORRECT ANSWER The insurer
will deny liability coverage because Mary's action was
intentional
In regards to Workers Compensation insurance, which of the
following experience modification factors would indicate
that an insured has sustained a relatively high frequency
and severity of losses in the recent past?
1.25
1.00
.95
.75 - CORRECT ANSWER 1.25
The insured is covered by a Commercial General Liability
policy with a $600,000 general aggregate limit, a $600,000
products-completed operations aggregate limit, and a
$300,000 per occurrence limit. The insured has one claim for
$350,000 and another for $100,000 arising out of the
premises and operations hazards during the policy period.
How much of the general aggregate limit will remain for
future claims within the same policy period?
$200,000.
$50,000.
, $600,000.
$400,000. - CORRECT ANSWER $200,000
Failing or refusing to hire or discriminating against an
individual diagnosed as having CWP (Coal Workers
Pneumoconiosis) is not allowed in Kentucky. An individual
damaged by such action may do which of the following?
Bring a civil cause of action to recover damages sustained
as a result of the actions.
Bring a civil cause of action to enjoin the employer from
further violations.
Bring suit for damages including costs and attorney fees.
All choices are available options for the worker. - CORRECT
ANSWER All choices are available options for the worker.
Any individual injured by any act in violation of these
provisions will have a civil cause of action in Circuit Court to
enjoin further violations, and to recover the actual damages
sustained, together with the costs of the law suit, including
a reasonable fee for the attorney of record.
Regulation of the insurance industry in the United States is
primarily left to:
The federal government.
The National Association of Insurance Commissioners
(NAIC).
State governments.
The Supreme Court. - CORRECT ANSWER State
Governments
ANSWERS GRADED A
The insured and her 18-year-old son, who lives in the
insured's household, are crossing the street when both of
them are struck by a drunk driver. The Part B - Medical
Payments coverage of the insured's personal auto policy
will:
Provide coverage for the son
Provide coverage for the insured and the son
Not provide coverage because they were a pedistrian -
CORRECT ANSWER Provide coverage for both the insured
and her son
A business covered by a standard Businessowners policy is
shut down due to the acts of a civil authority. Which of the
following additional coverages would NOT be subject to a
waiting period before coverage would apply?
Business Income.
Extra Expense.
Extended Business Income.
Business Income from Dependent Properties. - CORRECT
ANSWER Extra Expense
The Mobile Home endorsement may be attached to which of
the following Homeowners forms?
The HO-2 or HO-3 only.
The HO-6 only.
,The HO-2 or HO-5 only.
The HO-3 only. - CORRECT ANSWER The HO2 & HO3
After property or casualty coverage has been in effect more
than 60 days in Kentucky, a notice of cancellation may not
be issued unless it is based on which of the following
reasons?
I. A violation of any local fire, health-safety, building, or
construction regulation or ordinance
II. Nonpayment of premium
III. Discovery of fraud or material misrepresentation made by
or with the named insured's knowledge in obtaining the
policy
IV. Discovery of willful or reckless acts or omissions by the
named insured which increase any hazard insured against -
CORRECT ANSWER I, II, III and IV.
Which insuring agreement of the Personal Auto policy would
provide coverage for the damage caused to the other
driver's car, when the insured was at fault in an accident?
Part D - Physical Damage
Part B - Medical Payments
Part A - Liability
Part C - Uninsured Motorists - CORRECT ANSWER Part A
Mary intentionally trips her neighbor while the neighbor is
trespassing on the insured's property. Although the neighbor
is not injured, Mary gives the neighbor $500 in cash to settle
any potential liability claim. How will Mary's insurance
company most likely respond in this situation?
,The insurer will reimburse Mary for the entire $500.
The insurer will reimburse Mary for $500, less any applicable
deductible.
The insurer will sue the neighbor for the return of the $500
because the neighbor was not injured.
The insurer will deny liability coverage because Mary's
action was intentional. - CORRECT ANSWER The insurer
will deny liability coverage because Mary's action was
intentional
In regards to Workers Compensation insurance, which of the
following experience modification factors would indicate
that an insured has sustained a relatively high frequency
and severity of losses in the recent past?
1.25
1.00
.95
.75 - CORRECT ANSWER 1.25
The insured is covered by a Commercial General Liability
policy with a $600,000 general aggregate limit, a $600,000
products-completed operations aggregate limit, and a
$300,000 per occurrence limit. The insured has one claim for
$350,000 and another for $100,000 arising out of the
premises and operations hazards during the policy period.
How much of the general aggregate limit will remain for
future claims within the same policy period?
$200,000.
$50,000.
, $600,000.
$400,000. - CORRECT ANSWER $200,000
Failing or refusing to hire or discriminating against an
individual diagnosed as having CWP (Coal Workers
Pneumoconiosis) is not allowed in Kentucky. An individual
damaged by such action may do which of the following?
Bring a civil cause of action to recover damages sustained
as a result of the actions.
Bring a civil cause of action to enjoin the employer from
further violations.
Bring suit for damages including costs and attorney fees.
All choices are available options for the worker. - CORRECT
ANSWER All choices are available options for the worker.
Any individual injured by any act in violation of these
provisions will have a civil cause of action in Circuit Court to
enjoin further violations, and to recover the actual damages
sustained, together with the costs of the law suit, including
a reasonable fee for the attorney of record.
Regulation of the insurance industry in the United States is
primarily left to:
The federal government.
The National Association of Insurance Commissioners
(NAIC).
State governments.
The Supreme Court. - CORRECT ANSWER State
Governments
