Mastery Exam EXAM 2025 AND PRACTICE QUESTIONS |ACCURATE ANSWERS| VERIFIED FOR GUARANTEED PASS |GRADED A |NEW VERSION

which of the following is not a common law defense available to employers? a. assumption of risk b. fellow servant rule c. doctrine of adhesion d. contributory negligence - Ans - c. open peril coverage for both the dwelling and personal property is provided by the a. ho-3 b. ho-4 c. ho-5 d. ho-2 - Ans - ho-3 the fair credit reporting act a. requires insurers to openly advertise their premium rates and underwriting guidelines b. requires insurance applicants to make known to the insurer their credit history, including bankruptcy c. obligates insurer to use a third part - Ans - c this procedure for resolving a disagreement between the insured and the insurer about a loss is outlined in the a. conditions b. exclusions c. delcarations d. asuring - Ans - a. the garage coverage eligibility includes all of the following except a. motorcycle dealers b. auto dealers c. tv dealers d. speedboat dealers - Ans - d. An Insurance company may examine and audit an insured's books and records for up to... a. 5 years b. 3 years c. 4 years d. 8 years - Ans - b. 3 years Under the building and personal property coverage form, the duties in the event of loss condition states that after a loss, the insured must send a signed, sworn statement to the insurance company within... a. 90 days b. 60 days c. 30 days d. 45 days - Ans - c. 30 days The golf shop, located at the golf course, is open all year. However, the highest levels of inventory are carried between May and September. What is the best way to insure the increase in coverage for those months? a. value reporting form b. peak season endorsement blanket policy business income and extra expense endorsement - Ans - b. peak season endorsement Restaurants and bars present a risk exposure for bodily injury and property damage for which the insured may become liable as a result of contributing to a person's intoxication. The coverage these businesses require is... a. commercial general liability b. liquor liability insurance c. premises liability insurance d. products liability insurance - Ans - b. liquor liability insurance If an insurer violates any section of the insurance code, what can the Commissioner issue to stop the insurer from committing the violation? a. notice of a hearing b. cease and desist order c. suspension order d. notice of violation - Ans - b. cease and desist which of the following coverages is included in the homeowners policy but is not included in an unendorsed dwelling policy? a. other structures b. dwelling c. personal property d. liability - Ans - d. liability which of the following commercial general liability coverages would protect a policyholder from assumed liability under a construction contract to install water lines for a city? a. completed operations b. premises liability c. contractual liability d. independent contractors - Ans - c. contractual liability commercial umbrella liability policies provide coverage... a. when the underlying contract has been nonrenewed b. when a loss is excluded under the underlying policy but not excluded under the umbrella c. only for a commercial auto liability d. for usual and everyday types of exposures - Ans - b. when a loss is excluded in the underlying policy but not excluded under the umbrella all of the following perils are covered under the basic commercial property causes of loss form except... a. falling objects b. vandalism c. fire d. sprinkler leakage - Ans - a. falling objects all statements and descriptions in any application for an insurance policy by an insured are,,, a. representations and not warranties b. neither warranties nor representations c. warranties and not representations d. both warranties and representations - Ans - a. representations and not warranties which of the following could be scheduled under a miscellaneous type vehicles endorsement to the personal auto policy? a. taxi b. company van c. trailer d. motorcycle - Ans - d. motorcycle The owner of an old building buys insurance to protect himself from a possible lawsuit. This is an example of risk.. a. transfer b. retention c. avoidance d. sharing - Ans - a. transfer who are the owners of a mutual insurance company? a. directors b. policyowners c. investors d. stockholders - Ans - b. policyowners loss due to vandalism, water damage, theft, or building glass breakage are not covered if a building has been vacant for more than how many days? a. 45 b. 90 c. 60 d. 30 - Ans - c. 60 days who are the three parties to a surety bond? a. principal, obligee, and surety b. insurance company, agent, and policyholder c. agent, principal, and obligee d. principal, agent, and surety - Ans - a. principal, obligee, and surety the building and personal property form covers all the following except... a. highway billboards b. outdoor fixtures c. furniture d. stock - Ans - a. highway billboards which of the following is not included in the nationwide marine definition? a. personal floaters b. commercial floaters c. personal shipments d. exports - Ans - c. personal shipments which of the following actions may result in license suspension or revocation? a. making a material statement in a license application regarding a criminal conviction b. making factual and subjective statements to a prospect when comparing two policies c. actively engaging in a practice to solicit business from other agents d. making an agreement with or licensed agents in a geographical area to not write insurance for a particular insurer - Ans - which of the following marine risks is eligible to be written as commercial inland marine insurance? a. imports b. personal property floaters c. exports d. commercial property floaters - Ans - d. commercial property floaters The transfer to the insurance company of the insured's right to collect damages from another party is _____. a. subrogation b. liberalization c. comparative negligence d. contributory negligence - Ans - a. subrogation when would misrepresentations in an application be a basis for voiding an insurance policy? a. only if they were fraudulent b. never c. only if they were unintentional d. only if they were material misrepresentation - Ans - d. under the federal fraud and false statement acts, who unintentionally makes false material statements, in connection with financial reports or documents, that are presented to insurance regulators in an attempt to influence the actions of such officials may be imprisoned up to a. 15 years b. 10 years c. 5 years d. 20 years - Ans - the business auto policy uses symbols to denote the vehicles to which each of the policy's coverages applies. which of these symbols allows coverage of all vehicles - Ans - symbol 1 the purpose of the definition of the insured in a policy is a. to list the named insured b. to list who is covered in addition to the name insured c. to iist who is not insured d. to clearly state that the named insured is the only person covered - Ans - b. what is the purpose of part one of a workers compensation a. pay for lawsuits filed b. pay for liability resulting from business operations in other states c. pay for benefits that are required by state workers d. pay for 3rd party claims filed - Ans - c. ricardo's detached garage is destroyed in a fire, it will cost $8000 to rebuild the garage. the insurance company pays ricardo $8000, without taking a deduction for depreciation..that's an example of a. ACV b. Market value c. pair of set d. a replacement cost - Ans - d. the intentional failure to disclose facts on an insurance application a. twisting b. adhesion c. concealment d. misrepresentation - Ans - concealment