Insurance

P&C 90 - Tutoring Session

Testing Your understanding

Multiple Choice

Under the Dwelling Coverage form Coverage C, all are covered Except

• Mounted air conditioner

• Damaged Jewelry box

• Money left in the safe

• Lego set

Multiple Choice

All this information can be collected under the fair credit reporting act from a

consumer EXCEPT?

• Credit Standing

• Credit Worthiness

• Mode of Living

• Employment Status

Multiple Choice

The minimum automobile financial responsibility limits in New York are:

• 10/20/5

• 15/30/5

• 25/50/10

• 50/100/50

Multiple Choice

"When the actions of one person are based upon the tort of another" is an example of what type of liability scenario?

• Res Ipsa Loquitur

• Contributory Negligence

• Negligence Per Se

• Vicarious Liability

Multiple Choice

A zoo that is an attraction for exotic animals to be viewed in cages. If a lion attacks any guest, the zoo what type be automatically liable due to which type of liability situation

• Abstain Liability

• Absolute Liability

• Res Ipsa Loquitur

• Vicarious Liability

Multiple Choice

For P.A.P coverage how long does an insurance term last for owned or leased vehicles?

• at least 2 Months

• at least 3 Months

• at least 6 Months

• d) at least 12 Months

Multiple Choice

"Stacking" of uninsured motorist policies in New York

• is permitted activity

• is allowed for insureds who insure more than on vehicle

• is allowed for insureds who are passengers in non-owned vehicle

• not allowed

Multiple Choice

A pack of thieves enters the house that is covered under a DP-2 policy contract, they break the door, scratch the furniture and leave with the house safe. How will the

claim be paid out?

• All will be covered under DP-2

• The claim will cover the door and furniture damage, but will decline the safe

  theft.

• The thieves will return the safe

• The claim will cover the door, but not the furniture and the safe.

Multiple Choice

The special characteristic of an Insurance Contract where it states that only the insurer draw the contract, and the insured can only accept or deny.

• Unilateral contract

• Aleatory contract

• contract of adhesion

• conditional contract

Multiple Choice

An armed bank robber yells at the customers to get down on the floor, threatening to shoot them if they try to leave. Since they know they might be killed or suffer serious bodily harm if they try to leave, they are being held against their will.

This an example of which type of personal injury claim again the back?

• False Judgement

• Malicious Prosecution

• Slander

• False Arrest

Multiple Choice

The comparison of losses incurred during a policy period by an insured and comparing the experience of the risk in the same market is an example of which type of

Rating Methodology?

• Subjective rating

• Manual rating

• Experience rating

• Retrospective rating

Multiple Choice

When an applicant is denied coverage based on information contained in their credit report cannot demand consumer from the insurance due to which act?

• Fair Credit Reporting Act

• Privacy Regulations

• McCarran-Ferguson Act (Public Law 15)

• TRIA

Multiple Choice

The insured is covered under a DP-1 dwelling form with coverage on the dwelling in the amount of $100,000. He has a detached garage valued at $10,000. Both structures are destroyed by fire. What is the total amount recoverable under the policy?

• $95,000

• $100,000

• $105,000

• $110,000

Multiple Choice

Coverage E under the Dwelling policy contract covers

• Covers all living expenses incurred by the property owner no mater what

• Covers all additional living expenses incurred by insured after a covered loss

• Reimburses the property owner only for the hotel room for a month

• Covers the property owner for the loss in rental after a covered loss

Multiple Choice

Which of the following is NOT a factor in determining negligence of the part of the insured?

• Legal duty owed

• There is a breach of protection

• Proximate cause

• Damage

Multiple Choice

John is cooking at the grill for his friends in the summer, as he is firing up the grill he add too many coal and the griller catches fire this is an example of:

• Fire

• Hostile fire

• Friendly Fire

• Internal Explosion

Multiple Choice

Under the PPACA, the ________ Plans is the one that pays 90% of overall cost.

• bronze

• silver

• gold

• platinum

Multiple Choice

All of these an example of EXCLUDED water damage except

• Storm water enters the

• Water Back Sewer pump

• Flood

• Pipe burst

Multiple Choice

When the insurer broadens the coverage under an existing edition of the policy

form without any additional premium is known as:

• Liberalization Clause

• Libertation Clause

• Liability Clause

• Closing Cost

Multiple Choice

June borrows Miguel's new car for a test drive. June's car is covered by

25/50/10 coverage. Miguel's new car carries 100/300/100 coverage. If June hits a pedestrian and the resultant injuries to this pedestrian incur a $150,000 award in a court of law, June's own auto liability coverage will pay ___________.

• $0

• $25,000

• $50,000

• $75,000

Multiple Choice

A dwelling under construction endorsement changes the dwelling property

policy into a ____________ coverage

• Builder's Risk

• contents

• Homeowners

• building

Multiple Choice

Underweight of ice all of these are excluded from coverage except

• patio

• pavement

• swimming pool

• roof

Multiple Choice

Under contractual general rule what does CLOC stand for?

• Competent, Legal, Offer, Consideration

• Consideration, Legal, Offer, Commitment

• Contribution, Law, Offer, Commitment

• Competent, Law, Offer, Care

Multiple Choice

All of these can be found in the Insurance Contract page EXCEPT:

• Insuring Agreement

• Declaration Page

• Contract Language

• Conditions

Multiple Choice

P.A.P. covers an insured for accidents occurring in all of the following locations EXCEPT:

• Canada

• Hawaii

• Puerto Rico

• Mexico

Multiple Choice

Purchasing a home and choosing not to purchase insurance is an example of:

• Risk Management

• Risk Transfer

• Risk avoidance

• Risk Assumption

Multiple Choice

Worker's Compensation coverage that applies to interstate railroad workers

• Jones Act of 1920

• U.S. Longshoremen and Harbor Workers' Compensation Act

• Federal Employers Liability Act (FELA)

• Federal Employees' Compensation Act (FECA)

Multiple Choice

A self-insured workers compensation group which does not submit required reports on a timely basis may be subject to a _____________ per day penalty.

• $500

• $1,000

• $1,500

• $2,500

Multiple Choice

A disability income policy with the most restrictive definition of total disability defines it as the inability of the insured to engage in:

• his/her own occupation

• any occupation for which he/she is qualified

• any occupation

• any of the above

Multiple Choice

The duties of the Insurer and the Insured can be found in which part of the insuring contract?

• Declaration

• Bonds

• Conditions

• Exclusions

Multiple Choice

Under business personal property limit - seasonal increase, seasonal fluctuations will automatically increase the limit for business personal property by:

• 10%

• 20%

• 25%

• 30%

Multiple Choice

Julie buys a home for $500,000. The total replacement cost value of the home is $300,000, coverage is placed on the home for she purchases a DP-3 $200,000 under replacement cost. Julie suffers a bursting of pipe in the kitchen, the total cost of the repair is $40,000. Julie also has a $500 deductible on the policy. How much will the

insurance cover for the loss?

• $40,000

• $26,167

• $26,667

• $39,500

Multiple Choice

John is about to rent an apartment, he is a good prospect for which type of

coverage?

• DP3

• HO6

• HO4

• HO8

Multiple Choice

Coverage E - Personal Liability of Homeowners' Program would cover the following occurrence(s):

• the insured damages his sidewalk.

• the insured falls on his residence sidewalk.

• a visitor falls on the insured's homeowner's office complex sidewalk.

• a visitor falls on the insured's homeowners sidewalk.

Multiple Choice

All of the following are standard BOP Policy perils except:

• volcanic action

• riot

• sinkhole collapse

• power failure

Multiple Choice

All of the following are Standard BOP Policy exclusions except:

• earth movement

• power failure

• volcanic action

• flood

Multiple Choice

The insured lived close to Mount Saint Helens and carries DP-2 dwelling

policy. The volcano erupted and the movement of the earth caused his home to collapse. He reports the claim as a volcanic eruption loss. What do you feel would be the result of the claim?

• A claim would be covered under the peril of volcanic eruption

• A portion of the claim based on the deductive percentage would be paid

• The claim would be denied

• The claim would be paid for ACV only under these circumstances

Multiple Choice

An insured has suffered a fire loss to his/her dwelling. This insured is said to be

what type party to an insurance claim?

• First Party

• Second Party

• Third Party

• Loss Payee

Multiple Choice

In liability insurance, policy limits that apply one limit to each person insured, another for bodily injury claims of all persons injured in a single accident, and a separate limit for all property damage arising out of a single accident is:

• Aggregate limits

• Split limits

• Combined Single Limits

• Total limits

Multiple Choice

Which of the following is not found in the Declaration page of an insurance

policy?

• The policy period

• The covered perils

• The policy premium

• The additional insured

Multiple Choice

What is the total penalty if a broker or insured is found guilty of false entry?

• 1 year and fine not exceeding $5000, 15 years if it . jeopardizes the safety and

  soundness of the insurer

• License is suspended until renewal, and individual will have to take a 90 hour

  course again.

• 10 years fine or imprisonment, 15 years if it jeopardizes the safety and soundness

  of insurer

• 2 years of community service, 10 years if it jeopardizes the safety and soundness of

  the insurer

Multiple Choice

Which of the following would not be covered under Coverage A or Coverage B of a Dwelling policy?

• A storage shed 100 feet in back of the insured's dwelling where she keeps various yard tools

• A detached garage that has been altered to house a manufacturing operation

• A stack of lumber placed at the edge of the insured's property that will be used to

  construct a storage shed

• A stack of lumber placed at the edge of the insured's property that will be used to

  construct a storage shed

Multiple Choice

Coverage A of the Homeowners Program provides coverage for all of the following types of property EXCEPT:

• the dwelling.

• structures detached to the dwelling.

• materials and supplies located next to the dwelling

• structures attached to the dwelling

Multiple Choice

HO-2, HO-3, HO-4, HO-5, HO-6, and HO-8 are all types of homeowners'

policies. Which two sets of policies are not solely designed for owner-occupied dwelling?

• HO-2 and HO-8

• HO-4 and HO-6

• HO-3 and HO-4

• HO-5 and HO-8

Multiple Choice

The HO-8, also known as the modified coverage form, is designed to meet the needs of what type of insured?

• Subsidize housing owners

• Owners of seasonal rental locations where the value of the dwelling exceeds the replacement cost value.

• Owners of a historic home whose replacement cost value exceed the value of the

  home itself.

• A tenant-occupied locations in a poor protection class area

Multiple Choice

The TRIA Act will renew again on

• December 31st, 2020

• January 31st, 2020

• January 1st, 2020

• December 31st, 2012

Multiple Choice

The existence of a ______ to act in a certain way, leads up to the _______ that causes the __________?

• avoidance, damages, injury

• negligence, failure, proximate cause

• duty, failure, injury

• duty, rip, medical experience

Multiple Choice

insurance coverage on one type of property in one location.

• Blanket

• Special

• Specific

• Primary

Multiple Choice

All are part of Extended Covered Peril Except:

• Fire

• Civil Commotion

• War

• Volcano Eruption

Multiple Choice

Authorized Insured, allowed to do business in New York State receives a

• Certificate of Insurance

• Certificate of Appointment

• Certificate of Authority

• Certificate of Authorization

Multiple Choice

An insurance company that is formed under the law of London is said to be

• Domestic

• Foreign

• Alien

• Admitted

Multiple Choice

The act of breaking into a locked premise is an example of which description of a crime concept coverage?

• Moral Hazard

• Moral Hazard

• Burglary

• Robbery

Multiple Choice

If an insured carries $175,000 on Coverage A of his Homeowners policy, he will have ________ available to address a loss to his furniture.

• $10,000

• $50,000

• $87,000

• $87,500

Multiple Choice

Mr. Jones has an HO-3 in the amount of $100,000 on a house with a market value of $200,000. What amount of coverage will he automatically receive for his

content?

• $20,000

• $40,000

• $50,000

• $100,000

Multiple Choice

An insured suffers a fire loss causing $1,000 damage to a piano, $5,000 damage to a chest and $3,000 damage to a couch. If the insured has $50,000 coverage on contents with $500 deductible, what will the insured receive in settlement?

• $7,500

• $8,500

• $9,000

• $50,000

Multiple Choice

The underwriter determines if a particular piece of business is acceptable to their insurance company by using any of the following EXCEPT:

• Credit Report

• Inspection Report

• Motor Vehicle Report

• Employment Background Check

Multiple Choice

An agent who has the express authority to operate an office on behalf of an insurance company is said to have?

• Implied Authority

• Implied Right

• Express Authority

• Express Right

Multiple Choice

The actual out of pocket expense for hospital bills, job loss, and property damage are viewed under which type of damage award for Liability Claims?

• Special Damage

• Punitive Damages

• General Damages

• Liability Damages

Multiple Choice

Who does Independent Adjuster represent?

• Insurer

• Themselves

• Insured

• Organization that hired them

Multiple Choice

Susan was born on March 16th, 1978. She obtained her license on June 16th,

2019. When will Susan's license expire?

• March 30th, of 2020

• March 16th, of 2020

• March 16th, of 2022

• March 30th, 2022

Multiple Choice

Mr. Adams is involved in an at-fault accident. The other party was also at fault. The method to determine damages due to each party based on a percentage of negligence is known as:

• Interline force

• Comparative negligence

• Intervening force

• Contributory negligence

Multiple Choice

Requiring a insured to carry at least 80% of their commercial building replacement cost value in order for partial claims to be covered is knows as:

• Coinsurance clause

• Cause of loss form

• Loss Payable clause

• Mortgage clause

Multiple Choice

Which of the following perils are covered in the Causes of Loss Basic form?

• Collapse

• Explosion

• Volcanic eruption

• Nuclear hazard

Multiple Choice

An insurance contract that is contingent on an uncertain event is referred to as?

• Executory Contract

• Aleatory Contract

• Contract of adhesion

• Conditional Contract

Multiple Choice

Which of the following is a basis for insuring property that allows the insured to report the value of the building contents to the insurance company on a monthly basis?

• Blanket basis

• Reporting form

• Specific Basis

• Agreed Value

Multiple Choice

A defense often used by employers before Workers Compensation legislation was a theory that by taking the job, you took the risk inherent in the occupation. This is known as:

• fellow servant rule

• inherent vice

• assumption of risk

• contributory negligence

Multiple Choice

Licensed agents, brokers, consultants, and public adjusters must complete:

• 12 hours of CE approved course, every 2 years

• 15 hours of CE approved course, every 2 years

• 15 hours of CE approved course, every 1 year

• 15 hours of CE course, every 2 years

Multiple Choice

ABC Pharmacy employee leaves a distribution crate unattended, a store customer trips over the crate and sprains their ankle. 3 months later the store receive a summons. The employee's act is an example of which type of liability negligence

example?

• Contributory negligence

• Vicarious liability

• Contigent liability

• Joint and Several

Multiple Choice

Money and securities can be covered under the following insuring agreement(s):

• inside the premises - theft of money and securities only

• inside the premises - robbery or safe burglary of other property

• outside premises

• inside the premises - theft of money and securities as well as outside the premises

Multiple Choice

Which of the following provides written evidence of coverage pending the issuance of a policy?

• Cause of Loss Form

• Binder

• Blanket coverage

• Assignment

Multiple Choice

The cost of replacement minus depreciation is the definition of:

• Valued policy

• Face Value

• Replacement cost

• Actual Cash Value

Multiple Choice

Insurance companies need to be monitored by states for all of the following

reasons EXCEPT

• Monitoring insurer solvency

• Describing and penalizing unfair claim practices by insurers

• Reviewing insurer policy forms

• Reviewing fraud loopholes

Multiple Choice

States that do not allow the voluntary market to provide Workers Compensation coverage are known as:

• Monopoly States

• Reserved States

• Monopolistic States

• Competitive States

Multiple Choice

Brach of government that interprets the law is know as:

• Legislative office

• Judicial office

• Executive office

• Governor's office

Multiple Choice

Under Volcanic Eruption endorsement in Commerical property form, all

volcanic shock that occurs within a certain number of hours constitutes a single earthquake or volcanic eruption. What is that time period?

• 40 hours

• 72 hours

• 168 hours

• 24 hours

Multiple Choice

Under a Commercial Building and Personal Property Coverage form with the 80% coinsurance requirement satisfied, the insured can apply up to _______ of the limit on the Building for a newly constructed property.

• $50,000

• $100,000

• $250,000

• $800,000

Multiple Choice

Speculative risk can be defined as:

• Playing the slot machine

• Buying a new car

• Renting a vacation home

• Buying new furniture

Multiple Choice

Under the producer compensation transparency, the disclosure provided to the purchaser about producer's compensation must be kept on record for at least:

• 1 year

• 2 years

• 3 years

• 5 years

Multiple Choice

New York Superintended have the broad power to do all of the following

EXCEPT

• Create insurance and banking laws

• Performance the duties of the department through various division

• Appoint advisory committees

• Administer the department work

Multiple Choice

All are not examples of rebating EXCEPT

• readjusting group premiums.

• returning savings in the cost of the collection to debit policyholder.

• Providing promotional gift of $25 or less.

• Offering the insured to pay 10% less than the required policy premium.

Multiple Choice

The insured carries a DP-2 with $10,000 contents coverage. He owns a canoe and stores it at a lake in a private non-owned garage. Fire destroys the garage and the boat. How much coverage will hi policy provide?

• Up to $1000

• Up to $500

• $1,500

• Nothing

Multiple Choice

Which of the following is the section of an insurance contract that contains the

provisions, rules of conduct, duties, and obligations of the insurance applicant?

• The Conditions

• The Exclusions

• The Limitations

• The Insuring Agreement

Multiple Choice

Under the New York State Workers Compensation plan, lost wages are provided on a ________ basis.

• 50%

• 66 2/3%

• 66 3/3%

• Unlimited

Multiple Choice

A loss that is a direct consequence of a particular peril is called a(n):

• Indirect loss

• Peril

• Hazard

• Direct loss

Multiple Choice

Under the Dwelling Coverage form Coverage C, all are covered Except

• Mounted air conditioner

• Damaged Jewelry box

• Money left in the safe

• Lego set

Multiple Choice

The cost to rent a hotel room following a covered loss would be addressed by Coverage ________ of the Homeowners Program?

• A

• B

• C

• D

Multiple Choice

Before repairs can be made after a covered loss, the charred timbers and damaged furniture must be removed. This cost will be addressed by _______ additional coverage of the Homeowners Program?

• debris removal

• property removed

• fire department surcharge

• reasonable repairs

Multiple Choice

If an insured carry $500,000 on Coverage A of his Homeowners policy, she will have __________ automatically available to address a loss to her detached garage.

• $15,000

• $25,000

• $50,000

• $100,000

Multiple Choice

Coverage C- of the Personal Property under the Homeowner program covers the insured's personal property under what circumstance?

• While in the possession of the insured

• While on the covered premises

• Worldwide coverage

• When the insured knowingly loans the property to a family member off premises

Multiple Choice

Carrier may write the policy and collect ______ of premium. At the end of the term, the insurer will conduct ______ to review the books and determine the accurate

premium

• declaration, inspection

• payment, inspection

• deposit, audit

• reports, audit

Multiple Choice

Which of the following is a clause in property and casualty contracts which states that if the policy or endorsement forms are broadened and no additional premium is required, then all exiting similar policies or endorsements will be constructed to

include the broadened coverage?

• Liberalization

• Assignment

• Binder

• Coinsurance

Multiple Choice

An underdosed DP-3 policy does not provide coverage for which of the following exposures?

• Garages

• Storage sheds

• Debris removal

• Theft

Multiple Choice

The HO-6 policy provides the same perils as the ________ coverage form.

• HO-2

• HO-3

• HO-5

• HO-8

Multiple Choice

Coverage B of the Homeowners Program provides coverage for all of the following types of property except:

• the tool sheds

• pool cabanas

• the dwelling

• detached garage

Multiple Choice

All of the following types of property are subject to internal limits under Coverage C of the Homeowners Program except:

• clothing

• firearms

• jewelry

• boats

Multiple Choice

Under the Homeowners Program one-through four-family homes can be written as long as:

• one of the occupants is owner occupied

• an extra premium is paid

• a bank is the mortgagee

• a multiple family endorsement is attached

Multiple Choice

Which of the following exposures is excluded under collapse coverage?

• Roofs

• Storage sheds

• Personal property in garages

• Swimming Pools

Multiple Choice

HIPPA rules pertain to:

• Health care providers

• Health plans

• Health care clearing houses

• All of the above

Multiple Choice

Sprinkler leakage loss is covered under which Commercial Property Causes of Loss form

• Basic

• Broad

• Special

• All of the above

Multiple Choice

New York's Disability Benefits Law covers lost income at a rate of _____ percent

• 50

• 60

• 66 2/3

• 80