MASTERY EXAM QUESTIONS &
ANSWERS 100% CORRECT!!
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 - ANSWERb. 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 - ANSWERc. 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 - ANSWERb. 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 - ANSWERb. 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 - ANSWERb. 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 - ANSWERd. 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 - ANSWERc. 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 - ANSWERb. 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 - ANSWERa. 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 - ANSWERa. 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 - ANSWERd. 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 - ANSWERa. transfer
who are the owners of a mutual insurance company?
a. directors
, b. policyowners
c. investors
d. stockholders - ANSWERb. 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 - ANSWERc. 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 - ANSWERa. 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 - ANSWERa. 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 - ANSWERc. 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 - ANSWER
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 - ANSWERd. 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
ANSWERS 100% CORRECT!!
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 - ANSWERb. 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 - ANSWERc. 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 - ANSWERb. 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 - ANSWERb. 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 - ANSWERb. 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 - ANSWERd. 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 - ANSWERc. 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 - ANSWERb. 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 - ANSWERa. 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 - ANSWERa. 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 - ANSWERd. 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 - ANSWERa. transfer
who are the owners of a mutual insurance company?
a. directors
, b. policyowners
c. investors
d. stockholders - ANSWERb. 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 - ANSWERc. 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 - ANSWERa. 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 - ANSWERa. 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 - ANSWERc. 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 - ANSWER
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 - ANSWERd. 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
