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Total questions: 57
Worksheet time: 57mins
All of the following are coverage parts of the boat owners package policy, Except:
hull coverage
medical payments
liability
Workers Compensation
Examples of insurance industry programs that help provide a public service for consumers with exposures not normally available through standard insurers are often knows as Residual Markets. Which of the following might NOT be such an example?
Fair Access to Insurance Requirements (FAIR) Plans
Insurance Underwriting Plans
Joint Underwriting or Reinsurance Plans
Aviation Insurance
Which of the following statements about flood insurance is FALSE?
The standard deductible is $1,500 in the emergency program.
There is a 30-day waiting period for start of coverage on new applications submitted.
There is no limit on real or personal property.
The insured must live in an eligible community participating in the flood program.
A person applies for flood insurance after reading reports that a river in a nearby area is nearing flood stage. This is an example of
transfer
forecasting
adverse selection
risk management
What peril would be covered under a flood insurance contract?
sewer backup
mudflow
robbery and safe burglary form
landslide
An insurance agent who needs liability coverage for his or her professional liability exposure can obtain it by purchasing:
an unendorsed commercial general liability policy
an unendorsed dwelling policy
error and omissions insurance
an unendorsed homeowners policy
The insured has a one million-dollar personal umbrella policy with a retention limit of $1000. The insured suffers a $20,000 loss that is excluded by the underlying policy, but not the umbrella. How much of this loss would be paid under the umbrella?
$19,000
$20,000
$21,000
$0
Under the boat owners package policy damage to the boat itself is known as:
Comprehensive coverage
Hull coverage
Collision coverage
Not covered
The boat owners package policy is primarily designed for watercraft under_______ in length.
26 feet
75 feet
50 feet
10 feet
What loss is NOT covered by the National Flood Insurance Program?
mudflows
overflow of tidal waves
rapid accumulation or runoff of surface water
sewer backup
What implied warranty is NOT included in ocean marine coverage?
The ship's course will not deviate.
A shipper of cargo will only ship goods on a vessel flying the flag of the country of origin.
The ship is seaworthy.
The voyage is legal.
On Surety Bonds, the insurer (surety) has the right to set terms and conditions for issuance of the bond. Which of the following is NOT true?
The Principal has no responsibility or obligation once the bond is issued.
The Surety may require an Indemnification Agreement.
Surety has a right of recovery from the Principal.
The Surety provides the written guaranty to the Obligee
What statement is correct regarding the "general average" clause?
General average losses, like other insurance losses, must be unintended and unexpected.
It involves cargo jettisoned to save the ship in time of peril.
The loss must be caused by any covered peril.
All statements presented are false.
The National Flood Insurance (NFIP) Regular Program offers which of the following for maximum limits on a single-family residence?
$250,000 Home / $100,000 Contents
$35,000 Home / $10,000 Contents
$100,000 Home / $35,000 Contents
$500,000 Home / $100,000 Contents
Most states require a surplus lines broker to
post a surety bond
obtain signed affidavits from the insured and agent acknowledging that the coverage is from an unauthorized carrier in the state
charge sales tax on all policies issued and remit the tax to the state
All of the choices presented
Ocean marine insurance
never provides "All Risk" coverage, as international laws demand named peril coverage only.
covers property damage liability but not bodily injury. This is because bodily injury is covered under the ship operator's CGL policy.
covers vessels and cargo on vessels, but never liability.
provides coverage for property while it is in transit, on land, on water conveyances and at warehouses.
On a boat owners package policy who is covered under medical payments?
Employees working on your boat
colliding with another watercraft and injuring the people on that watercraft
colliding with the dock and injuring the people on the dock
you and the people on your boat
Lawyers Professional Liability insurance policies contain all of the following EXCEPT
the policy affords coverage for Financial Injury
a policy condition requires the insured's consent to settle a claim
coverage is provided a Claims-made basis
the policy provides Bodily Injury and Property Damage coverage
Voluntarily throwing cargo overboard to save the vessel from sinking is known as the peril of
bailing
jettison
abandonment
barratry
What statement is NOT true regarding flood insurance?
Coverage may be provided for dwellings or commercial property.
Coverage is excluded on money and securities.
Coverage may be provided for growing crops or livestock.
It is only available in designated areas.
The XYZ Construction Company secures a bid with New York City to repair a bridge. The city requires a surety bond to guarantee the performance of XYZ Construction. In this surety situation, XYZ Construction is known as the
obligee
surety
principal
indemnitor
Aviation carriers providing coverage for Drones will base the insurability on all of the following, Except:
intended use
flying radius
experience of the operators
choice of platform
On Ocean Marine insurance, which of the following would cover maritime liability?
cargo coverage
hull coverage
freight coverage
protection and indemnity
The liability policy that covers issues such as sexual harassment, wrongful discharge, and discrimination is
errors and omissions
employment practices
fiduciary liability
umbrella liability
What is NOT a type of surety bond?
supply bond
contract bond
blanket bond
bid bond
Which of the following losses would be covered by a flood policy?
Heavy rain causes a lake to overflow and flood the basement and first floor of the house.
The insured incurs additional living expenses when flooding forcers her to evacuate her home.
A tornado blows out all of the windows in the insured's home and the house is flooded when it rains the next day.
Water backs up through a sewer system and floods the insured's bathroom.
The federal flood insurance policy covers which of the following?
patio furniture on an open deck
furniture in a basement family room
recreational vehicles parked in the driveway
power tools stored in an attached garage
What is NOT a "peril of the sea?"
stranding
piracy
windstorms
shipboard fire
Liquor liability insurance
covers a host for vicarious liability when serving alcoholic beverages at a party.
is automatically included as a coverage part in the CGL.
covers a distiller of alcoholic beverages against product liability claims.
covers a tavern for the exposure of serving alcoholic beverages for money and the related vicarious liability.
What must a community do in order to become a "designated" flood zone?
make an application to the NFIP
pay the proper fees to the federal government
petition the state for financial backup
agree to adopt the appropriate flood prevention measures as required by the National Flood Insurance Program (NFIP)
The insured has her fur coat specifically covered under a Personal Articles Floater. It has been stored in a plastic garment bag in her closet during the summer months. She decides to take the coat out and hang it outside to freshen up. The next door neighbor's dog sees the coat and attacks it, ruining the garment. The insurer will
pay the claim because the loss is not excluded
deny the claim because the loss is excluded
sue the neighbor themselves
deny the claim due to the insured's own negligence
A typical directors and officers liability policy covers each of the following, EXCEPT:
The corporation for suits brought against it because of the actions of the officers and directors.
The board members for suits brought against it because of the actions of the officers and directors.
Liability from Errors and Omissions.
Liability from mismanaging funds
Which of the following is NOT TRUE regarding surety bonds?
The surety has the right of subrogation against the principal.
The obligee is the party the bond will benefit or protect.
They are in agreement that in exchange for a premium, the surety will indemnify the obligee.
The surety will indemnify the obligee in the event the principal defaults.
All of the following statements are TRUE regarding the coverage of apartment structures covered by the National Flood Insurance Policy EXCEPT:
The NFIP Emergency program will cover an apartment or other commercial structure for up to $100,000.
The dwelling coverage form under the NFIP provides up to 10% of the building coverage limit for apartment structures as an additional amount of insurance.
Under the NFIP Regular Program, an apartment building of 5 units or more can be covered up to $500,000.
There is a $1500 deductible for the structure under the NFIP Emergency policy.
What is the purpose of tort law?
It provides a tort victim with a civil remedy to pursue a claim for compensation in the court.
To get retribution.
It allows insurance companies to deny tort claims.
To prove that torts are better than cake.
A business is looking to hire an independent contractor to perform some services for the clientele of the business. The business would like to have an Owners and Contractors Protective Liability policy in place before the independent contractor begins working. Who purchases the policy and who is named on the policy as the insured?
The business would purchase the policy and names the business as the insured.
The subcontractors would need to purchase the policy and name the business as the insured.
The independent contractor purchases the policy and names the business as the insured.
The contractor would purchase the policy and list the city or township the business is located in as additional insured.
A Personal Articles Floater (PAF) is designed to protect property owners from damage or loss of personal property while in the process of transport. Which of these statements about a PAF is FALSE?
A PAF will cover personal property at an agreed amount.
A PAF only covers property in the continental United States.
A PAF covers property anywhere in the world.
A PAF is also known as scheduled personal property.
In ocean marine insurance, the word "average" refers to a(n)
loss
total loss of the ship only
vessel that is not particularly "top of the line" quality
average value of cargo shipped per voyage
The National Flood Insurance Program permits private insurance companies to provide flood coverage under the:
Write your own Program
Federal Emergency Management Act
Terrorism Risk Insurance Act
Fair Credit Reporting Act
Which one of the following is usually true about commercial umbrella liability policies?
They are considered primary policies.
They are endorsements to general liability policies.
They are NOT standardized within the industry.
They limit protection to no more than $1 million in coverage.
The mandatory waiting period before flood coverage to begin is
60 days.
upon receipt of the application by the NFIP.
90 days.
30 days.
Mighty Manufacturing administers the employee benefits plan which includes Health Savings and Health Reimbursement accounts along with a 401K retirement plan. The employer needs
Fiduciary Liability.
Crime coverage with ample limits to cover plan assets.
Employment Practices Liability.
an exemption from liability form under ERISA guidelines.
The National Flood Insurance Program is an example of a form of insurance regulated by the:
Property insurance carriers
State Department of Insurance
Federal government
State government
Umbrella liability policies are designed to pay
before the Primary Policy responds.
pro-rata with the primary policy.
only if the primary policy excludes coverage.
after the limits on the primary liability policy are exhausted.
Insurers participating in the "Write your Own" program for flood insurance are required to
submit policy forms to the department of insurance for approval.
request payment for claims over premiums received from the NFIP.
remit premiums received over claims paid to the US Treasury.
surcharge premiums by 5% to cover expenses of the program.
A firm, or corporation that purchases dram shop liability insurance is securing protection against
employers liability
liquor liability.
aviation liability.
nuclear hazard liability.
When the liability limits of an existing or underlying contract have been exhausted, additional coverage may be supplied by a(n)
personal injury liability policy.
commercial excess policy.
umbrella policy.
errors and omissions policy.
Director and Officers Liability insurance covers which of the following?
misstated projections on earnings and losses
embezzlement
reconstruction of incorrect financial records
fraud, dishonest, criminal acts
An Aviation policy provides coverage for which of the following?
on the ground and in the air
in the air only
take off and landing only
take off and in the air
What errors and omissions (E&O) policy will cover bodily injury as well as financial liability?
an attorney's E&O
an insurance agent's E&O
an accountant's E&O
an engineer's E&O
What is NOT covered by the "commercial general liability" coverage?
malpractice liability
personal injury liability
medical payments
premises liability
