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What are the coverages of flood insurance? - Correct Answer-Dwelling, Contents, Debris Removal How are damaged items valued in flood coverage? - Correct Answer-Dwelling - replacement cost Contents - Actual Cash Value What kind of property is not covered by flood insurance? - Correct Answer-Basements and underground structure (ex. septic tanks), animals, money/accounts/bills, land, anything else covered by other policies (motor vehicles, aircraft, watercraft) On what policy can you add the Flood Program endorsement? - Correct Answer-None! It has its own policy through the Federal Government. Difference in Conditions (DIC) Insurance - Correct Answer-A separate insurance policy that provides open-perils coverage to fill in the gaps left by flood coverage if a home is worth over $250K. Coverage is produced through Excess/Surplus Lines. What is the waiting period on NFIP coverage? - Correct Answer-30 days after policy purchase What is the coverage change waiting period for the NFIP? - Correct Answer-5 days Give examples of the flood peril - Correct Answer-- an overflow of inland or tidal waters
- unusual or rapid accumulation or runoff of surface waters
- Mudflow or Mudslide
- Collapse of land along the shore of a lake as a result of erosion What kinds of things does flood insurance cover? - Correct Answer-Your house and your things (dwelling and personal property). No indirect charges. Dwelling coverage extension for flood insurance covers what? How much is it? - Correct Answer-Structures not attached to dwelling (O.S. or Appurtenant structures). 10% of Dwelling limit. ***It is an extension of coverage, NOT the $250K limit so any coverage needed here will reduce the amount able to go to the dwelling.
Contents coverage of flood insurance is limited to what? - Correct Answer-Personal property damaged or destroyed by the flood itself and belongs to insured and resident spouse/relatives. The insured is liable for content of others. Loss Valuation on flood insurance - Correct Answer-(amount of insurance purchased/80% Dwellings Total replacement cost) x Loss Amount Standard deductible on flood insurance - Correct Answer-$1K for Dwelling and $1K for Content Personal Inland Marine Insurance - Correct Answer-Floaters or policies for world-wide coverage of personal property on an open-peril basis. Is flood excluded from Personal Inland Marine Insurance? - Correct Answer-NOPE. It's covered! What are the floaters available on Personal Inland Marine Insurance? - Correct Answer- Personal Articles Floaters, Personal Property Floaters, and Personal Effects Floaters What perils are covered under Personal Inland Marine Insurance floaters? - Correct Answer-all; open-peril Which PIMI floater would be appropriate for a diamond ring? Why? - Correct Answer- Personal Articles Floater - itemizes valuables such as jewelry and furs What is a Personal Effects Floater good for? What deductible does it have? - Correct Answer-world-wide open peril coverage of personal property for people who are traveling - luggage, sports equipment, clothes, and camera. NO DEDUCTIBLE. What is a Personal Property Floater good for? What kind of limit do they have? - Correct Answer-World-wide open peril coverage of personal property - usually for special occasions like weddings or exhibitions. There is a blanket limit! Does personal inland marine insurance cover flood? - Correct Answer-Yes. Somehow. All of the following coverage is available under a Standard Flood Insurance Policy issued by the National Flood Insurance Program except: a. Loss of Use b. Dwelling c. Personal Property d. Removal - Correct Answer-A. Loss of Use The maximum number of days that a Standard Flood Insurance Policy will cover property removed is: a. 15 days
The acronym OSCAR is for: - Correct Answer-Open peril aka Special/All- Risk/Comprehensive The acronym ACCL is for: - Correct Answer-Parts of a contract; agreement (offer and acceptance), competent parties, consideration, legal purpose The acronym DICEED is for: - Correct Answer-Parts of a contract; declarations, insuring agreements, conditions, endorsements, exclusions, definition The acronym U-HID is for: - Correct Answer-uninsured motorist claim; Uninsured/Underinsured, Hit & Run, Insolvent (insurer), Denied Coverage The acronym COUP is for: - Correct Answer-What is covered by collision; car, object, upset, pedestrian/pothole The acronym DDPB (Don't Drink Peanut Butter) is for: - Correct Answer-Negligent Liability; Duty to Act, Breach of Duty, Damages, Proximate Cause The acronym WWNI is for: - Correct Answer-"We will never insure" or standard exclusions; wear and tear, war, nuclear, intentional loss The acronym AMStAR is for: - Correct Answer-methods of valuation; agreed value, market value, Stated value, Replacement Cost, Actual Cash Value The acronym WC-SHAVER is for: - Correct Answer-Extended coverage; windstorm, civil commotion, smoke, hail, aircraft, vehicle, explosion, riot The acronym WSH is for: - Correct Answer-exclusions for tree/shrub/plant coverage; wind, hail, smoke The acronym FLI is for: - Correct Answer-DP1 perils; fire, lightning, internal explosions The acronym is APE for: - Correct Answer-Personal inland marine insurance floaters; articles, property, effects The acronym SWIMSWAM is for: - Correct Answer-yacht definition; sailboat with auxiliary inboard motor The acronym SIR is for: - Correct Answer-"Deductible" on an umbrella policy; self- insured retention The acronym DRTCC is for: - Correct Answer-Types of unfair trade practices; rebate, coercion, twisting, defamation, commingling
The acronym DOPLA is for: - Correct Answer-DP coverages; Dwelling, Other Structures, Personal Property, Loss of Fair Rental Value, Additional Living Expenses The acronym MR. LC is for: - Correct Answer-Types of property that can be scheduled on a business income/extra expensive from Dependent Properties Endorsement on a Business Income Form or an Extra Expense Forms; contributing locations, recipient locations, manufacturing locations, leader/anchor locations The acronym CPP is for: - Correct Answer-Commercial Package Policy The acronym BPP is for: - Correct Answer-Building and Personal Property Coverage Personal Auto Policy (PAP) Cov A - Cov B - Cov C - Cov D - Cov E - Cov F - - Correct Answer-A - Liability 25/50 BI, 25 PD Minimum B - Medical Payments ($1K per person in vehicle) C - UM/UIM (same minimum as liability) D - Physical Damage: Collision (Ded. $500) & OTC (Ded. $500) E - Duties after a Loss (ex. mitigate damages) F - General Provisions (ex. Bankruptcy, Liberalization) Q Which of the following would be considered an "offer"? I. The applicant submits an application to the company with payment. II. The company issues the policy applied for Is it I, II, or both? - Correct Answer-Only I. Q When a person decides no to buy insurance because of the cost, what method of handling risk management has been undertaken? - Correct Answer-risk retention Q Something that increases the chance of a peril occurring is known as a ___________. - Correct Answer-hazard Q Which of the following is not an element for the formation of a valid contract? A. consideration B. legal purpose c. agreement d. incompetent parties - Correct Answer-D. Incompetent parties
B. A binder guarantees that a policy will be issued C. A binder may only be issued by the insurance company D. most property and casualty agents bind coverage - Correct Answer-D. most property and casualty agents bind coverage Q A non-exclusive agent: A. represents only direct writers B. works for a solicitor C. represents more than one insurance company D. is a "captive" agent - Correct Answer-C. represents more than one insurance company Q The action which, in a natural and continual sequence, produces a loss is known as the: A. indemnity causation B. primal causation C. approximate cause D. proximate cause - Correct Answer-D. proximate cause Required discounts to offer on GA auto policies - Correct Answer-Defensive driving and good student discount; must offer at least 10% discount True or False For someone who is less than 25 years old qualify for the Defensive Driving Discount, they must have: 1 - committed no traffic offenses for the previous five (5) years or since licensure, whichever is shorter 2 - no at-fault claims against insurer in the previous three (3) years 3 - complete an approved Driver's Training course of not less than thirty (30) hours - Correct Answer-False - error in requirement 1: no traffic offenses in the previous THREE(3) years, not five. Where can you find the customized equipment endorsement? What kind of limit is used? - Correct Answer-On the Personal Auto Policy; scheduled limits are used on customized equipment Additional Insured - Correct Answer-An individual or organization listed as covered by a primary insurance agreement AKA the Zuckerburg endorsement. Can two people share a single coverage of a car? - Correct Answer-Yes if they are co- owners. They will need the Joint Ownership Coverage Endorsement. Additional coverage limits on Dwelling Policies. - Correct Answer-Additional coverages are 10% of the limit of A under Coverage E - Additional Living Expenses. This only applies to DP2 and DP3.
Collapse is a peril or additional coverage? - Correct Answer-Additional coverage - causes of collapse would be perils though, such as weight of ice or windstorm. Crime Coverage Forms A- B - C - D - E - F - G - H - Q - Cash only forms - Other than Cash forms - Forms that cover both - - Correct Answer-Crime Coverage Forms A - employee dishonesty B - forgery and alteration C - theft, disappearance, destruction D - robbery and safe burglary (PP) E - premises burglary F - computer fraud G - extortion H - premises theft/outside robbery Q - robbery and safe burglary ($) Cash only forms - CQ Other than Cash forms - DEH Forms that cover both - FG Homeowners Policy Coverages Sect I - A - B - C - D - Add. Cov - Sect II - E - F - Supp Pay - Endorsements - - Correct Answer-Sect I - Property A - Dwelling (80%-100% Value of home) B - Other Structure (10%A)
A wrongful act is considered to be a ___________. - Correct Answer-tort Policies that pay full current cost for property that has been destroyed, without making any depreciate are written on what basis? - Correct Answer-Replacement cost basis OSCAR or open peril coverage forms: A. name the perils to be insured against B. list the policy exclusions C. have no exclusions D. are no longer available in the general insurance market - Correct Answer-B. list the policy exclusions The clause in the SFP (Standard Fire Policy) which limits the liability of the insurer to a portion of the loss, and the contract states that no greater than "the amount hereby insured shall bear to the whole insurance covering the property against the peril involved, whether collectible or not" is called the: A. appraisal clause B. abandonment clause C. cancellation clause D. pro-rata liability - Correct Answer-D. pro-rata liability Furniture, which is destroyed when a building burns down, is an example of what kind of loss? A. direct B. indirect C. consequential D. residual - Correct Answer-A. direct As a name peril contract, the SFP (Standard Fire Policy) covers: A. all perils not otherwise excluded B. perils specified in the policy C. fire only D. perils are not covered under the SFP - Correct Answer-B. perils specified in the policy Each of the following may be a legal defense against negligence except: A. an intervening cause B. assumption of risk C. contributory negligence D. apparent authority - Correct Answer-D. apparent authority Under the doctrine of the proximate cause, which of the following would be considered fire damage? A. smoke damage B. water damage from the sprinkler system
C. firefighters breaking down the door D. all of the above - Correct Answer-D. all of the above If property is sold, the policy may not be assigned to the new owner "except with the written consent of the Company". This is known as a (an): A. other insurance clause B. assignment clause C. cancellation clause D. abandonment clause - Correct Answer-B. assignment clause After the initial notification of a loss, the insured is required to submit a signed proof of loss within ______days for every policy except for what type of coverage which allows for 120 days? - Correct Answer-60 days; Commercial Crime Coverage Usually when insurer cancels; all earned premiums are kept and unearned premium is returned to the policyholder, this is known as: A. flat cancellation B. pro-rate cancellation C. short-rate cancellation D. non-renewal cancellation - Correct Answer-C. short-rate cancellation What are the differences between theft and larceny? - Correct Answer-None What does burglary and robbery have in common? What's different? - Correct Answer- Theft; Burglary is Breaking in/out and robbery is threatening or harmful Charlie gets insurance on his house and forgets to tell the insurer that he only owns 50% of the house. What would this be considered? - Correct Answer-a misrepresentation If J's son threw a rock and hits a neighbor in the head, what liability concept would cause J to pay for injuries as a result? A. Last clear chance B. Assumption of risks C. Vicarious liability D. Gross negligence - Correct Answer-C. Vicarious liability Additional coverage, supplementary payment, or endorsement? E.C. (extended coverage) perils - Correct Answer-WC-SHAVER perils are endorsements for DP-1 and additional coverages for all HOs. Personal and Commercial Inland Marine Floaters are all open-peril. EC perils are covered under cause of loss forms in a Farm policy. Farm Property Coverage A - B -
Part Six - - Correct Answer-Part One - Workers Compensation Part Two - Employers Liability Insurance (std lim $100K) Part Three - Other States Insurance Part Four - Your Duties if Injury Occurs Part Five - Premium Part Six - Conditions Which part of workers comp pays for medical bills? - Correct Answer-Part One - Workers Compensation Which part of Workers comp pays for common law suits? - Correct Answer-Part two - employers liability insurance What part of workers comp describes using "gross payroll"? - Correct Answer-Part five - premiums Which policies have 10/10/30 cancellations? What about 10/10/60? 10/10/75? - Correct Answer-personal; commercial; workers compensation What can the insurer do when notified of a misrepresentation or concealment? - Correct Answer-Deny claim, report to police, cancel policy What is the purpose of the Second Injury Fund? - Correct Answer-To pay for a second injury of a person already receiving workers compensation. This helps mitigate the damages of the higher risk of someone already injured on the job receiving a second injury - this encourages employment of people who are injured/have a disability. What is the med pay limit on most policies? Where is this different? - Correct Answer- $1000 per person (on HO/DP it is 3rd party only); workers comp has no limit What policies apply a 100% coinsurance condition? - Correct Answer-Boiler and Machinery,? and ?. Commercial Auto Physical Damage coverages - Correct Answer- 1 - Choose comprehensive coverage (OTC) OR Specified Causes of Loss coverage 2 - Collision coverage What do Specified Causes of Loss Coverage on Commercial Auto exclude? - Correct Answer-Animals Describe Mobile Equipment coverage under the following policies: CGL - Commercial Auto - Contractors Equipment floater - - Correct Answer-CGL - covers when M.E. is in operation Commercial Auto - covers vehicle that is transporting the M.E.
Contractors Equipment floater - covers M.E itself while it is being transported You are driving someone else's car and get in an at-fault wreck. Whose coverage is primary and whose is excess? - Correct Answer-Primary is the insurance that covers the auto, and excess is the insurance that covers the driver (you). Boat, Yacht, Aviation, and Ocean Marine policies carry coverage for physical damage that is called ___________________. What is their liability coverage called? - Correct Answer-Hull Insurance; Protection and Indemnity Ocean Cargo losses are paid on what basis (2)? - Correct Answer-General Average or Particular Average A partial loss that is suffered only by the party who suffers the loss and the particular owner pays ( like for leaky hull) under Ocean Cargo insurance is a what kind of loss? - Correct Answer-Particular Average Coverages available under Ocean Marine Forms (3) - Correct Answer-Hull Insurance, Protection & Indemnity Insurance, Ocean Cargo Insurance Inchmaree Clause - Correct Answer-Covers direct damage caused by the bursting of boilers, breaking of propeller shafts, or loss due to faults or errors in navigation by the crew.
