ALL LINES ADJUSTER EXAM WITH 100% CORRECT ANSWERS 2024, Exams of Insurance Economics

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ALL LINES ADJUSTER EXAM WITH 100% CORRECT

ANSWERS 2024

The insured has filed a claim under the "Business Income Department Properties - Broad Form" because the primary buyer of products and services from the business hasfiled for bankruptcy under this form the primary buyers business would be known as - Correct answer-A recipient location recipient location - Correct answer-Businesses who support insured by being theprimary buyer for their products HO-3 (special form) - Correct answer-covers the dwelling and other structures on a risk- of-direct-physical loss basis. All direct physical losses are covered except those losses specifically excluded. Personal property is covered on a named perils basis HO-5 Comprehensive Form - Correct answer-provides open perils coverage ("all-risks coverage") on the dwelling, other structures and personal property. HO- 2 (broad form) - Correct answer-covers the dwelling, other structures, and personal property on a named perils basis HO-4 (contents broad form) - Correct answer-Only covers a tenant's personal property on a named perils basis

The dwelling is insured for 200,000 under DP-2 dwelling policy how much coverage applies to the barn? - Correct answer-Nothing farm property are not eligible under the dwelling policy. A Covered Auto includes those vehicle(s) listed on the Declarations, plus any trailers or wagons owned by the Named Insured, any newly acquired vehicles, and any vehicle used as a. - Correct answer-Temporary Substitute Auto The covered auto is defined in the policy as all of the following EXCEPT: A) any additional auto acquired in the past 30 days. B) any auto shown in the declarations. C) any auto used as a temporary substitute while an insured auto is being repaired. D) any trailer owned by the insured or spouse. - Correct answer-Answer: A An additional auto acquired during the policy period is considered a covered auto. However, some restrictions do apply. For example, if the newly acquired auto is in addition to any vehicle shown on the declarations, it must be insured within 14 days of the purchase date. If it replaces one of the cars, the insured does not need to add it during that policy period. Coverage F on homeowners policy provides - Correct answer-Medical payments to others; pays all necessary medical expenses for up to three years after an accident. Coverage F: Medical Payments to Others - Correct answer-Does not apply to theinsured or members of the insured's household Not liability coverage and is not base on fault

An insured has taken inventory of his merchandise and discovers a substantial shortageof valuable stock. He submits a claim to his insurance carrier that provides his coverage under a Business Owners Policy. What coverage is provided by the BOP? - Correct answer-No coverage would apply, there is no coverage for missing property when there is no physical evidence to show cause of loss Arbitration (ADR) - Correct answer-Neutral third party hears a dispute and makes a decision both parties have agreed to follow. Mediation - Correct answer-A method of settling disputes outside of court by using the services of a neutral third party, called a mediator. The mediator acts as a communicating agent between the parties and suggests ways in which the parties canresolve their dispute. Not binding. Difference between Arbitration and Meditation? - Correct answer-Mediation is not binding, Arbitration is. Mediation-Arbitration - Correct answer-If the parties cannot reach a settlement through mediation, an arbitrator will resolve the dispute. The building and personal property coverage form provides coverage for outdoor signs - Correct answer-Whether attached to the building or not for up to 2,500 if damaged by a peril insured against. Building and Personal Property Coverage Form - Correct answer-Commercial Property coverage form that covers buildings, the insured's business personal property, and the personal property of others located at the business premises

Foreseeability Test - Correct answer-To determine if the defendant's conduct was the proximate cause of the plaintiff's injury, the court applies Foreseeability - Correct answer-excludes liability for harms that were sufficiently unforeseeable at the time of the defendant's tortious conduct. Purpose of freight insurance - Correct answer-Covers shipper fees Freight Insurance - Correct answer-indemnifies the ship owner for the loss of earnings if the goods are damaged or lost and are not delivered. Shipper Fees. Freight Insurance - Correct answer-insures that shipowner will receive payment for transportation charges. What perils are covered on the basic form peril of the Homeowners Policy - Correct answer-fire, lightning, smoke, windstorm, hurricane, hail, explosion, aircraft and vehicles, vandalism, riot and civil commotion, theft, and premises liability. What perils are covered under the broad from Homeowners Policy - Correct answer- include basic perils plus falling objects; weight of ice, sleet, or snow; freezing pipes; and some coverage for sudden and accidental water discharge. Exclusions to Homeowners policy - Correct answer-earthquakes;termites, rats; freezing pipes while your house is unoccupied; losses if your house is vacant for the number of days specified by your policy; wear and tear or maintenance; wind or hail damage to trees and shrubs; mold, except necessary costs to repair or replace property damage caused by a covered water loss;and water damage resulting from continuous and repeated leakage or seepage.

Landlord's furnishing - Correct answer-Is not additional coverage and doesn't insurance the limits of the policy Power to bind means - Correct answer-The principal is bound to the decisions of the adjuster RVC (replacement cost value) - Correct answer-The cost to replace the property on the same premises with other property of comparable material and quality used for the same purpose DP-3 Special Form - Correct answer-Under this Dwelling coverage form: dwelling and other structures are covered for all direct physical damage (open peril), except for perils specifically excluded.. In a surety bonding third-party contract, who is the principal? - Correct answer-the party whose performance is guaranteed by the obligor. in a contract between the surety and the constructor [construction company], the principal is the constructor. in a contract between the surety and a subcontractor, the principal is the subcontractor (#6, 16) Surety bond guarantees fulfillment of certain obligations such as - Correct answer- payment of debt, performance and certain duties, meeting contractual commitments Twisting - Correct answer-A form of misrepresentation in which an agent persuades an insured/owner to cancel, lapse, or switch policies, even when it's to the insured's disadvantage. Corercive acts - Correct answer-Process whereby the purchaser does not have achoice and is being forced into a certain buying decision

Part Six - Conditions - Correct answer-sets forth the conditions that apply to the policy, such as cancellation procedures, subrogation and the insurer's right to inspect the insured's workplace Part Five - Premium - Correct answer-Explains how the cost of the policy is determined Part Two - Employers Liability - Correct answer-Provides coverage to the insured for sums the insured becomes legally obligated to pay under common law because of a work related injury or occupational disease ACV (Actual Cash Value) - Correct answer-replacement cost minus depreciation Bid bonds/surety bonds - Correct answer-to ensure that the successful bidder willaccept the contract once awarded. Performance Bond - Correct answer-A contract bond guaranteeing that a contractor's work will be completed according to plans and specifications. Completion Bond - Correct answer-A bond obtained by the contractor or owner, which guarantees that the project will be completed free of liens. Labor and materials bond - Correct answer-Guarantees bills for labor and materials will be paid to the contractor as they are due. How the standard Businessowners policy additional coverage of "Collapse" becomes payable? - Correct answer-The collapse must be such that the building cannot be usedas intended.

A public adjuster represents the interest of - Correct answer-insured Which of the following would be covered under a Personal Umbrella policy? - Correct answer-An insured who commits an intentional act of violence to protect his family. Property Removed - Correct answer-Covers property against direct loss from any peril while being removed from a premises endangered by a covered peril and for up to 30 days while removed The maximum payable to remove this debris of others is: - Correct answer-5, To be eligible for a standardized Watercraft policy, the insured watercraft must be used on inland or coastal waters within: - Correct answer-12 miles of the shore or in the Great Lakes, but only when within the United States and its territories, Puerto Rico, or Canada.. Under a standard Equipment Breakdown policy, the loss settlement is: - Correct answer-On a replacement cost coverage, if the repair or replacement, is made within 24 months of the loss. The medical payments coverage of an Aircraft Liability policy provided coverage for bodily injury expenses incurred by accident - Correct answer-Within one year of accident Coverage F (Homeowners) - Correct answer-Medical payments to others- regards of fault. Med pay will pay for injury. Will not cover pain and suffering. You will be reimbursed.

• Basic limit is $1000 per injury but can be raised.
• will cover for medical treatments up to 3 years from the date of accident HO-4 policy - Correct answer-Renters policy. Personal property covered for broadperils.

Automobile No-Fault Laws - Correct answer-insurance that indemnifies the insured regardless of who was at fault in an accident. No-fault laws also restrict the insured's right to sue the at-fault party. surplus lines - Correct answer-Insurance for which there is no readily available,admitted market. Surplus Lines companies in Texas have to acknowledge the receipt of a claim. - Correct answer- 30 days Value Reporting Endorsement - Correct answer-Endorsement used with the Commercial Property coverage part to provide coverage based on the actual values ofproperty at certain locations at specific times. Which of the following property would be excluded from coverage for loss under Coverage C of the Homeowners policies? - Correct answer-A valuable baseball card collection owned by the named insured's son that is covered under a separate personal articles floater.. Part D ( auto policy) - Correct answer-coverage for damage to your auto (physical damage) Nonconcurrency - Correct answer-A situation in which other insurance is written on the same risk, but not on the same coverage basis. Split Limits - Correct answer-separate limits for bodily injury and property damage liability coverage

Flat Deductible - Correct answer-A deductible stated in a specified dollar amount. Percentage Deductible - Correct answer-Is commonly used on expensive boats. deductible is a percentage of the total amount it would take to repair the hull of the boat if it was severely damaged. The deductible - Correct answer-Amount you must pay before you begin receiving any benefits from your insurance company Coinsurance - Correct answer-the sharing of expenses by the policyholder and the insurance company The premium - Correct answer-A specific sum of money paid by the insured to the insurance company in exchange for financial protection against loss. The pre-defined amount of an insurance claim that is paid by the policyholder is knownas

• Correct answer-The deductible dual capacity claims - Correct answer-A dual capacity claim is filed against an employer that was acting in a capacity "other than as an employer" at the time the injury occurred Part A of the personal auto policy would apply in which of the following situations? a. Driver who intentionally causes an accident. b. Garage mechanic while test-driving the insured's auto. c. Insured's 13-year-old son who, while playing with the car, starts it and lets it roll into the street, damaging other parked cars. d. Driver using the insured vehicle to transport people for a fee. - Correct answer- Answer: C

Family members are insureds under the personal auto policy regardless of their age. There are specific exclusions relating to livery use, intentional acts and use of owned autos by people in the automobile business. Gerald owns an expensive and rare painting. He has it appraised by an art dealer and insures it for $50,000 under a Personal Articles Floater. A year later, several other rare paintings similar to Gerald's and painted by the same artist are discovered, causing the value of Gerald's painting to be reduced to $40,000. Soon after this development, the painting is destroyed in a fire at Gerald's place of business. After ruling out fraud, how will the insurance company settle the loss? - Correct answer-The insurance companywill cover the item for the full $50,000 amount because this was the "agreed value". The Commercial Building & Personal Property coverage form includes an Additional Coverage for property removed from the premises because of being endangered by an insured peril. The coverage applies for - Correct answer-30 days after the property is first moved.. An insured with auto limits of 10/20/10 causes bodily injuries to a third party of $8,000. After losing in court he has defense costs of $5,000. What is the insurance company's responsibility to pay? - Correct answer-$13, Bob and Pete's Used Cars has purchased a Garage policy with dealer's physical damage coverage on the cars owned by the dealership at its location. Pete goes to an auto auction 150 miles away, purchases a vehicle and drives it back to the dealership. If Pete suffers a physical damage loss during this trip: - Correct answer-Coverage will apply only if the "Dealers Drive Away Collision" endorsement is attached to the Garage policy..

Which of the following best describes how the peril of "theft" is covered under the 1943 New York Standard Fire policy? - Correct answer-Theft is a covered peril under the removal coverage.. Linda has received an inquiry from the Texas Commissioner. She realizes that she is required by law to respond to the inquiry, however her response contains information that is confidential and privileged. Which of the following is true of Linda's response to the Commissioner's inquiry? - Correct answer-The information will remain confidential and privileged until it is introduced as evidence in an administrative hearing or in a court of law.. Who is the principal in a bid bond? - Correct answer-The contractor The insured carries a personal auto policy providing a bodily injury limit of $50,000 each person with a per accident injury limit of $100,000. He injures two occupants in another vehicle. Their injuries total $60,000 for Mr. Jones and $50,000 for Mrs. Jones. The insurance company spent $40,000 in defense and investigation costs. How much will the insured's policy pay? - Correct answer-$140, A Texas insurer has notified a claimant that all or part of a claim will be paid. The claim must be paid not later than the business day after the date notice is made. - Correct answer-5th Coverage C of the homeowners policy is extended to all of the following except:property borrowed for use by the insured. machinery used in maintenance of the premises. pets owned by the insured. clothing of a daughter living at college. property away from the insured's premises. - Correct answer-pets owned by theinsured.

Coverage C Exclusions - Correct answer--Articles separately described & insured onthis or another policies, - animals, birds, fish, - Motor vehicles, - Aircraft, - Property of roomers & boarders. - property in an apartment regulary rented or held for rental, Property rented or held for rental to others off premises. Books f accounts, drawings, other paper records; electronic data procesing tapes, wires, records, disks & software containing business data HO-2 (broad form) - Correct answer-(broad form): covers the dwelling, other structures, and personal property on a named perils basis HO-8 covers what? - Correct answer-HO-8 is Modified Coverage Form. It covers the least broad perils. This is the MOST LIMITED HO form. it provides the very basic perilcoverage. Coverage for both buildings and contens are considerd on an ACV basis only. representation - Correct answer-statements made by the insured that are assumed tobe truthful to the best of the insured's knowledge. The NAIC Model Unfair Claim Settlement Practice Act provides for a financial penalty of for each violation of the Act. - Correct answer-1, Mr. York had his pickup truck stolen while it was parked in a "no parking" zone outsidehis office. The value of the truck was $18,500. In addition, tools valued at $200, extra tires and hubcaps for the truck valued at $550 and a tarp worth $50 were in the truck. Mr. York has a collision deductible of $500 and a comprehensive deductible of $250. The insurance company will pay what amount? - Correct answer-18, The loss of the truck plus the extra tires and hubcaps would be considered in this claim. These total $19,050 less the deductible of $250 equals $18,800.

Who makes the offer in an insurance contract? - Correct answer-applicant Collin suffered a work-related injury on the morning of June 2nd and was off work completely until he returned to work on full duty on June 20th. Collin had worked for his employer for four years and was paid $55,650 per year. Collin's state sets the TTD rate at 70% percent of the average weekly wage. The state sets the maximum compensation rate at $580 per week and the waiting period at 5 days retroactive after 7 days. Collin was not paid for working on February 5th. Collin's average weekly wage is approximately and the amount of compensation benefits he will receive per week while off work is approximately. - Correct answer-$1,070 / $ Collins average weekly wage is $1,070 ($55,650 divided by 52 weeks). Then, we calculate 70% of $1,070 to determine 70% of Collins' AWW would be, which is $749. However, Collin's state sets TTD payment rates to a maximum limit of $580, therefore,Collin's compensation payments will be $580. What is "express authority" under the law of agency? - Correct answer-The authority given to the agent as specified in the contract. following factors is the most crucial in distinguishing between an employee-employer relationship and an independent contractor relationship? - Correct answer-Whether the employer controls the manner in which the work is performed Tori owns a cabin in the Ozark Mountains that she rents to Vincent. Tori has the cabin covered under a DP-2 policy. One cold evening, Vincent started a large fire in the cabin's fireplace and left the room to start dinner in the kitchen. Vincent didn't realize that he forgot to open the chimney flue before starting the fire and by the time he came back into the living room, it was completely filled with smoke. Vincent immediately opened the

doors and windows to "air-out" the cabin but when the smoke cleared, there was extensive soot damage to the walls, ceilings and furnishings in the room. Which of the following statements is true regarding how this claim will be handled? - Correct answer- The claim will be paid because the DP-2 extends the peril of "smoke" to cover smoke damage from a fireplace.. Most aircraft physical damage (hull) policies are settled on a - Correct answer-Insured value basis Underinsured motorist coverage provides first-party protection to an insured after an accident in which of the following situations? - Correct answer-The other driver has insufficient liability limits and is "at-fault" Structures connected by a fence or utility line are considered to be "other structures" and would be covered under - Correct answer-Coverage B of the under Homeownersforms. DP-1 Basic Form - Correct answer-Perils insured against are fire, lightning, and internal explosion. Which of the following standardized Dwelling insurance forms provides coverage forloss of rental income? - Correct answer-DP-1, DP-2, DP- 3 Which of the following types of insurance companies must charge a premium tax to be remitted to the state each time a policy is sold? - Correct answer-Surplus Lines company.. Three parties to a contract bond - Correct answer-Principal, obligee, surety transfer risk - Correct answer-The purpose of insurance

Ocean Marine and/or Aviation insurance are "specialty" policies that cannot be - Correct answer-packages together with other commercial risks into a package policy. Jim Cress owns an expensive fine arts collection. He has it appraised and covered under a personal articles floater. He takes his collection to England to have it auctioned.While the collection is in his hotel room it is stolen. What coverage would apply? - Correct answer- The loss is not covered The collection has been moved outside the covered territory for fine arts. The coverageis not world-wide and covers them while in the United States, its possessions, Puerto Rico and Canada An insured has purchased Coverage A and Coverage B of a standard Businessowners policy and the limit of insurance shown in the Declarations is 80% of the replacement cost value, how will losses be settled? - Correct answer-Both Coverage A and Coverage B will be settled on a replacement cost basis administrator bond - Correct answer-A bond required by the court of the administrator ofthe estate of the deceased Mitch is covered by a Personal Auto policy. One night a cow breaks through a fence and is standing on the roadway. Mitch does not see the cow until it is too late and he hits it with his vehicle. Coverage for the damage to Mitch's vehicle: - Correct answer-Isprovided under Part D - Other Than Collision What does the Small Business Administration (SBA) surety bond program provide? - Correct answer-Reimburses the sureties that provide the bonds a percentage of the losses sustained if the contractor defaults..

The "control of property" condition of the Commercial Property policy: - Correct answer- States that a negligent act of someone beyond the insured's direction or control will not affect the coverage. The "liberalization clause" of an insurance policy - Correct answer-States that if an insurer decides to broaden its standard policy coverages, then all outstanding policiesissued prior to that decision will automatically receive those new coverages at no additional premium Adjusters in Texas must complete at least of the continuing education required torenew their license in a classroom or classroom equivalent setting. - Correct answer- 50% It has been reported to the Insurance Department in a given state that Callie, a licenseein that state, has violated an insurance law. The Insurance Commissioner will hold a hearing to determine the nature of Callie's behavior. After the hearing, the Commissioner is convinced that Callie has engaged in behavior that violates insurance law. Which of the following is the next step the Commissioner will take? - Correct answer-Issuing a cease and desist order Which of the following losses would NOT be covered by an unendorsed Commercial Property policy with the special cause of loss form attached? - Correct answer-Carolyn's Fine Gifts must shut down for a month to repair flood damage.. Under a standardized NCCI workers' compensation policy, the insurance company will pay to the insured, as part of any claim, proceeding, or suit defended, all of the following expenses - Correct answer-Loss of earnings

Extended Business Income - Correct answer-This additional coverage pays for the lossof business income, even after operations have been resumed, until the business has been restored, but for no more than 30 days from the date business is resumed. Extra Expense Coverage - Correct answer-Insurance coverage for extra expenses incurred by the named insured to avoid or minimize the suspension of operations resulting from direct damage caused by a covered cause of loss. Comparative Negligence - Correct answer-A theory in tort law under which the liabilityfor injuries resulting from negligent acts is shared by all parties who were negligent (including the injured party), on the basis of each person's proportionate negligence. general summary of a policy? - Correct answer-Certificate of Insurance.. Coverage Forms - Correct answer-Document that contains insuring agreements, coverages, exclusions and conditions. Certificate of Insurance - Correct answer-A legal document that indicates that an insurance policy has been issued, and that states both the amounts and types of insurance provided. In regards to Workers Compensation insurance, which of the following experience modification factors would indicate that an insured has sustained a relatively high frequency and severity of losses in the recent past? - Correct answer-1. Joseph Jones purchased a new car stereo system from Dailey's Auto Enhancements. Daily's permanently installed the stereo system in the console area of the car, where he could access it easier while driving than the typical area in the dashboard. The cost of the new system, disregarding any installation costs, was $2,000. One year after installation,

Joseph's car was broken into and the stereo was stolen. At this point, the ACV of the system had fallen to $1,700. Disregarding any deductible, how much will Joseph's policy pay on this claim? - Correct answer-Part D of the Personal Auto policy provides for a limit of $1,000 for electronic equipment that reproduces, receives or transmits audio, visual or data signals that is permanently installed in an auto, but not in the location typically used by the auto manufacturer. Indemnify Insurance has been using a specific ISO Homeowners forms for several years in all the states where they are an admitted insurer. Indemnify Insurance has recently been admitted to an additional state, but the laws of that state contradict a few of the provisions in the ISO form. How is this situation likely to be handled? - Correct answer-A statutory form will be drawn up and attached to each Homeowners policy Indemnify Insurance writes in the state.. The information provided by the insured in a proof of loss form is considered - Correct answer-A representation After completing an inspection of an insured's pressure equipment and fire suppression systems, the inspector determines that the pressure equipment needs to be repaired and the suppression systems have not been cleaned and inspected in the time frame required by the policy. The insurer will: - Correct answer-Suspend coverage immediately by red tagging the items until they are repaired, cleaned and pass reinspection. DP- 2 Broad Form - Correct answer-This dwelling coverage form covers perils included under the DP-1 with ECE and optional VMM endorsement attached, plus: burglars; falling objects; weight of snow, ice, sleet; accidental discharge or overflow of water or steam; sudden and accidental tearing apart, cracking, burning or bulging of a steam or hot water heating system, or an air conditioning or automatic fire protective sprinkler system, or an appliance for heating water; freezing of a plumbing, heating, air conditioning, or

automatic fire protective sprinkler system, or of a householdappliance; and sudden and accidental damage from artificially generated electrical current. DP-3 Special Form - Correct answer-An all risk policy (on the structure coverage only), in which anything not excluded is covered. Contents (if covered) are still named peril, asin the DP-2. Includes all DP-1 and DP-2 coverage. Which of the following coverages of an Equipment Breakdown policy will pay for the costs necessary to make temporary repairs to covered objects? - Correct answer-The Expediting Expenses coverage will pay for the costs necessary to make temporary repairs to covered equipment (objects). The standardized Dwelling forms consider all eruptions of a volcano within a period to be a single "occurrence". - Correct answer- 72 hour When must a Texas insurer notify a claimant of either the acceptance or rejection of a claim after receiving all of the requested items, statements, and forms requested from the claimant? - Correct answer-Not later than the 15th business day What is the purpose of the "sue and labor clause" in ocean marine insurance? - Correct answer-Pertains to protecting the ship and other property from further damage A contractor in need of a bid bond to obtain a contract is an example of a(n): - Correct answer-A principal Adverse selection occurs when - Correct answer-Applicants are accepted by the insurer with little or no attention given to underwriting.

When insurers accept all applicants, ultimately the applicants choose their insurer, which is against normal industry practice. Typically insurers carefully choose applicants, not the other way around. Subrogation Clause - Correct answer-A clause in a title policy that allows the title company to assume the rights of a buyer with respect to any claim against a seller, ifthe title company has made payments to that buyer to satisfy that claim Which of the following is not a true statement regarding the use of non-original equipment manufactured replacement parts for vehicles? - Correct answer-Insurers specifying the use of non-original equipment manufacture replacement crash parts shall not be required to pay the cost of any modifications to the parts which may become necessary to affect the repair.. In case of a loss, how many days notice does the insured have after notification of a claim to submit the claim to the underwriters of the ocean marine coverage? - Correct answer- 180 days When should a non waiver agreement be used - Correct answer-when there are unresolved questions regarding coverage, limits or both. The adjuster would be wise to present such of waiver to the claimant/insured during the initial site visit. An insured purchases a $1 million umbrella policy with a $1,000 self-insured retention (SIR) and agrees to maintain the following underlying limits: auto liability - $100/300/ and personal liability limits of $300,000. The insured is involved in an at-fault auto accident and the claimant is awarded $200,000 for his bodily injuries. What will the umbrella pay if the insured only carries $50/100/50 auto limits? - Correct answer-

$100,000

When the insured does not maintain underlying limits as stated in the umbrella policy, the umbrella carrier pays as though those limits were in effect. The insured would have to pay $50,000, the underlying carrier would pay $50,000 and the umbrella carrier wouldpay the remainder. The duties of the insured after a loss are included in insurance policy language to - Correct answer-Assist in the adjuster's investigation of the claim.. Part One of the standard workers' compensation policy describes: - Correct answer-The insurer's duty to pay promptly, when due, the benefits required of the employer by the workers compensation statute.. Nina has the "Preservation of Property" additional coverage included in her standard Businessowners policy. How long does coverage apply while the property is being stored at another location? - Correct answer- 30 days from the day the property was firstmoved John's Texas adjuster license has been expired for 16 months. Which of the following describes the procedure John will need to follow to reinstate his license? - Correct answer-John will need to take the state licensing exam again and submit an application for a new license Homeowners policy would not cover the liability of an outboard motor of - Correct answer-more than 25 - horsepower. The pre-defined amount of an insurance claim that is paid by the policyholder is knownas

• Correct answer-The deductible

When an insured submits a claim under a Commercial Inland Marine policy, the insurer must pay the claim: - Correct answer-Within 30 days of reaching an agreement with the insured. Amelia has suffered a covered collision loss to her vehicle. The insurer requires that her vehicle be repaired at a repair shop of the insurer's choice. The insurer: - Correct answer- Is guilty of an unfair claims practice act.. Indemnity - Correct answer-a payment for damage or loss Replevin - Correct answer-An action to recover specific goods in the hands of a party who is wrongfully withholding them from the other party. General Average - Correct answer-In water transportation, the deliberate sacrifice of cargo to make the vessel safe for the remaining cargo. Those sharing in the spared cargo proportionately cover the loss. In Commercial Inland Marine policies, who transports the property of anyone who hires them? - Correct answer-common carriers Commercial inland marine policies require the insured to submit a signed, sworn statement of loss: - Correct answer-Within 60 days of the insurer requesting it.. A mutual insurance company is: - Correct answer-Owned by its policyholders The NAIC Model Unfair Claim Settlement Practices Act specifies that the insurance company must provide the proper claim forms with a reasonable explanation of how to use them to the claimant within: - Correct answer- 15 calendar days of the request

The common conditions of a Commercial Package policy - Correct answer-States that to properly rate the policy, the insurer has the right to examine the books and records ofthe insured company.. Personal Auto Policy (PAP) - Correct answer-An insurance policy that covers an individual or a family against loss exposures arising out of the ownership, maintenance,or use of automobiles. BB Jim and Tina are a married couple that enjoy the outdoors. They have their motor home and pick-up truck covered by a standard Personal Automobile policy and both vehicles are listed on the declarations page of the policy. They attend a Camping & RV show on May 1st and purchase a small camper to use when camping near their home that summer. Jim calls the insurance agent on May 10th and adds the camper to the policy. On May 24th, Jim and Tina are pulling their new camper with their pick-up truck on their way to a nearby camp site. Jim is driving and turns a tight corner, clipping a street lamp with the side of the camper. How will Jim and Tina's Personal Auto policy cover the body damage to their camper? - Correct answer-The body damage will be covered by Part D of the policy because Jim reported the new camper to the insurance agent withinthe required 14 days The "period of restoration" for the Extra Expense coverage included on the Business Income form is: - Correct answer-Immediately following the direct physical damage Insureds select their - Correct answer-deductible amounts, package policies do not allow for lower deductibles If the insured purchases a new aircraft to replace a scheduled aircraft, there is automatic coverage provided the insurance company is notified within days ofthe purchase and premium payment is made. - Correct answer- 30

Garage Coverage Form - Correct answer-Provides liability, garagekeepers, and physical damage coverages for vehicle dealers including dealers that have repairoperations on the business premises Which of the following is a statement that is guaranteed to be the truth throughout the duration of the policy? - Correct answer-A warranty Builders Risk Coverage Form - Correct answer-One of the commercial property coverage forms; covers commercial, residential, or farm buildings that are underconstruction Part A in the personal auto policy is for. - Correct answer-liability A Personal Umbrella policy will cover an insured for an "occurrence" or "offense" that occurs: - Correct answer-Anywhere in the world The Builders' Risk coverage form includes an additional coverage that provides a limited amount of coverage for lawns, trees, shrubs, or plants when located outside of buildings. This limit is: - Correct answer-$1,000, but $250 for any one tree, shrub, or plant.. principal in a bid bond - Correct answer-Contractor