Name: Score:
422 Multiple choice questions
Definition 1 of 422
list what is NOT covered in the policy
may contain limitation which may reduce coverage. This where the perils NOT listed are found
Limits
Exclusions Sections
Cancellations
Policy Changes
Definition 2 of 422
when the property is damaged, the insurer can not turn the property over to the insurance and
claim a total loss. The insured must take steps to keep the property from further damage. This is
when the insurer will only cover damages that occurred not from what the insured failed to
protect the property
Abondement
Punitive Or Exemplary Damages
Direct Loss
Assignment
,Term 3 of 422
BROAD HO-2
Cov A: $15,000.00 +
Cov B: 10% of A
Cov C: 50% of A
Cov D: 20% of A
BI to others is covered,
NOT to the insured or the insureds family
Voluntary throwing of cargo overboard to keep the ship from sinking
Coverage E - Personal Liability
Coverage F- Medical payments to others
Definition 4 of 422
covers liability claims from using or consuming the product which was made, sold or distributed
Off the premises- also covers claims from : parts or materials that fail performance of the
product, warranty problems and other suits concerning the warnings or lack there of on the
instructions
Premises & operations
Product & Completed Operations
Subrogation
Building
,Term 5 of 422
Who does not need a license?
Any salaried employee of a licensed agent, insurer or limited producer who does not sell or
accept any applications for insurance from the public and is not paid commissions
$500.00 charge when there is no specified amount
1) accident caused by earth movement
2) Accident to an object being tested
3) Lightning
4) Failure of any safety device
5) stove
Up to the policy limits to each covered person regardless of fault
Expenses for 1st Aid when the accident occurs
All bills are covered resulting from injuries
and Funeral expenses if death is a result
Term 6 of 422
Flood Insurance Building Max
$125,000.00
$245,000.00
$250,000.00
$75,000.00
, Term 7 of 422
What are the 4 reasons for a deductible
Equipment used to build the building
Any bodily injury or $400.00 of property damage from a motor vehicle.
Both driver and the owner of the vehicle must prove financial responsibility regardless of
who was at fault.
The insurer will not pay more than the insurer will not pay more than the actual damages if
loss is covered by two coverages
1) To keep premiums affordable and reduce small claims
2) To increase profits of company
3) To make premiums excessive
4) increase the number insured
Definition 8 of 422
Allows the insurer to inspect the books and Records of the named insured and to make an audit
during the policy period and up to 3 years later
inspections
competent (right of mind)
examination of Books/records/audit
subrogation
Term 9 of 422
Personal Property of Others
Must be in care, custody or control of insured within 100 ft of premises in a vehicle or out in
the open
Prohibits the transfer of insurance rights without the insurers permission
Based on written agreement who would be liable for products and services under the
agreement
May be covered if named specifically in the policy
422 Multiple choice questions
Definition 1 of 422
list what is NOT covered in the policy
may contain limitation which may reduce coverage. This where the perils NOT listed are found
Limits
Exclusions Sections
Cancellations
Policy Changes
Definition 2 of 422
when the property is damaged, the insurer can not turn the property over to the insurance and
claim a total loss. The insured must take steps to keep the property from further damage. This is
when the insurer will only cover damages that occurred not from what the insured failed to
protect the property
Abondement
Punitive Or Exemplary Damages
Direct Loss
Assignment
,Term 3 of 422
BROAD HO-2
Cov A: $15,000.00 +
Cov B: 10% of A
Cov C: 50% of A
Cov D: 20% of A
BI to others is covered,
NOT to the insured or the insureds family
Voluntary throwing of cargo overboard to keep the ship from sinking
Coverage E - Personal Liability
Coverage F- Medical payments to others
Definition 4 of 422
covers liability claims from using or consuming the product which was made, sold or distributed
Off the premises- also covers claims from : parts or materials that fail performance of the
product, warranty problems and other suits concerning the warnings or lack there of on the
instructions
Premises & operations
Product & Completed Operations
Subrogation
Building
,Term 5 of 422
Who does not need a license?
Any salaried employee of a licensed agent, insurer or limited producer who does not sell or
accept any applications for insurance from the public and is not paid commissions
$500.00 charge when there is no specified amount
1) accident caused by earth movement
2) Accident to an object being tested
3) Lightning
4) Failure of any safety device
5) stove
Up to the policy limits to each covered person regardless of fault
Expenses for 1st Aid when the accident occurs
All bills are covered resulting from injuries
and Funeral expenses if death is a result
Term 6 of 422
Flood Insurance Building Max
$125,000.00
$245,000.00
$250,000.00
$75,000.00
, Term 7 of 422
What are the 4 reasons for a deductible
Equipment used to build the building
Any bodily injury or $400.00 of property damage from a motor vehicle.
Both driver and the owner of the vehicle must prove financial responsibility regardless of
who was at fault.
The insurer will not pay more than the insurer will not pay more than the actual damages if
loss is covered by two coverages
1) To keep premiums affordable and reduce small claims
2) To increase profits of company
3) To make premiums excessive
4) increase the number insured
Definition 8 of 422
Allows the insurer to inspect the books and Records of the named insured and to make an audit
during the policy period and up to 3 years later
inspections
competent (right of mind)
examination of Books/records/audit
subrogation
Term 9 of 422
Personal Property of Others
Must be in care, custody or control of insured within 100 ft of premises in a vehicle or out in
the open
Prohibits the transfer of insurance rights without the insurers permission
Based on written agreement who would be liable for products and services under the
agreement
May be covered if named specifically in the policy
