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Georgia Property & Casualty Insurance Exam 2: Complete Questions & Answers 2024-2025, Exams of Nursing

A comprehensive set of questions and answers for the georgia property and casualty insurance exam 2. It covers various aspects of insurance, including contracts of indemnity, unfair methods of competition, types of insurance companies, risk management, and claims settlement practices. Designed to help individuals preparing for the exam by providing insights into key concepts and potential exam questions.

Typology: Exams

2024/2025

Available from 11/08/2024

ScholarMasters
ScholarMasters 🇺🇸

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(1)

141 documents

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Download Georgia Property & Casualty Insurance Exam 2: Complete Questions & Answers 2024-2025 and more Exams Nursing in PDF only on Docsity!

GEORGIA PROPERTY AND

CASUALTY INSURANCE EXAM 2

LATEST COMPLETE QUESTIONS

AND CORRECT DETAILED

ANSWERS 202 4 -2025 graded

a+

Harold's property insurance policy is a contract of indemnity because - ANSWERS,The benefit payable is related to the amount of loss. If an insurance producer misrepresents the terms, benefits, or advantages of an insurance policy he or she is selling, that producer has engaged in a(n) - ANSWERS,unfair method of competition Ralph recently joined the Independent Order of Craftspeople, an organization for men and women who earn a living by designing and making crafts, and which provides insurance to its members. What type of organization is this Order? - ANSWERS,fraternal benefit society What describes an insurance company that is not licensed to conduct insurance business in Indiana, but is licensed in another state? - ANSWERS,Non-admitted insurance company Brad purchased an auto insurance policy to insure his new car. An insurer might consider Brad, his car, or both to be a(n) - ANSWERS,risk Jason repairs a broken stair on his front porch so that it is less likely people will trip and fall down the stairs and injure themselves. What measure has he taken to manage this risk? - ANSWERS,prevention If the Hampton Insurance Company is organized under the laws of the District of Columbia, what is its classification in relation to Indiana? - ANSWERS,foreign insurer

Kent stated on his application for property insurance that the roof of the building being insured had been recently replaced. In fact, the replacement occurred 12 years ago. Kent made a false statement of a material fact, which is also known as a(n) - ANSWERS,misrepresentation Which of the following is not a power granted to the Indiana Commissioner of Insurance? - ANSWERS,Prosecuting individuals for violating the insurance laws What do a direct writer and an exclusive agent have in common? - ANSWERS,the both only represent one insurer Alex sold an insurance policy before his license lapsed and earned a commission on the sale. Is he entitled to a commission if the policy is renewed? - ANSWERS,He is entitled because he was licensed when the policy was sold. What type of insurer covers the risks of the parent organization that owns it? - ANSWERS,Captive insurance company Which of the following practices is not an unfair claims settlement practice? - ANSWERS,Failure to make claim payment within 30 days An insurance agent mistakenly tells policyholder Jerry that his boat is covered under a policy the agent recently sold him. Jerry's boat is damaged in a storm and he learns his boat is not covered when he files a claim. Will the insurer pay this claim? - ANSWERS,Yes, because the agent legally represents the insurer. What does an insurance company purchase if it wants to transfer some or all of the risks involved in its insurance operation to another insurance company? - ANSWERS,Reinsurance After insurance consulting services are completed, how long must a consultant retain the signed agreement outlining the services he or she provided? - ANSWERS,2 years When taking his examination for an insurance producer license, Tad used unauthorized material to assist him. He justified this on the basis that the materials would be available to him in a real life situation if he needed them, and he needed them now. Is this an acceptable practice? - ANSWERS,Tad committed a prohibited act.

When comparing her insurance company's policies to those of Zenith Insurance, Corinne makes a misleading statement to convince an insurance prospect to terminate a policy with Zenith and buy one from Corrine's company. Corrine has engaged in - ANSWERS,twisting Diane's agency agreement specifically gives her the authority to collect insurance premiums. This type of authority is called - ANSWERS,Express authority A party to a contract may not enforce a right it has voluntarily waived by its past conduct. This is known as - ANSWERS,estoppel Which of the following is not a remedy available to the Indiana Commissioner of Insurance for committing an unfair method of competition? - ANSWERS,Imprisonment What are the penalties for violating a cease and desist order issued by the Indiana Commissioner of Insurance? - ANSWERS,A civil penalty and/or license suspension or revocation Tanya's two-year limited insurance license was last renewed two years ago. How many hours of approved continuing education must she complete before her next renewal? - ANSWERS,none Zeta Insurance forces its insureds to institute legal actions on claims by offering them significantly reduced amounts to settle out of court. Is this an unfair claims settlement practice? - ANSWERS,Yes, this is an unfair claims settlement practice. If Brian, a producer, knowingly misrepresented the terms of a policy issued to gain an unfair advantage over a producer at another company, and he almost certainly knew that this was an unfair method of competition. He may be subject to a penalty of up to - ANSWERS,$50, Which of the following is NOT a prohibited trade practice? - ANSWERS,Discrimination among risks Marilyn is shopping for a property policy and must decide whether to buy a named perils or an open perils policy. What statement is correct about the advantages of either policy? - ANSWERS,With an open perils policy, the insurer has the burden of proving that the loss is excluded. Joan's property insurance policy covers losses caused by explosion but not if they're caused by boiler explosion. She is not concerned about this because she also has a(n) - ANSWERS,Equipment breakdown policy

Michael wants to transfer his rights in his property insurance policy to another person. Under what provision in his policy will Michael find language that discusses his options? Loss payable clause - ANSWERS,Assignment provision Landry Office Supply provides your insured with financing to purchase a telephone system. It asks to be listed on your insured's business property policy for its financial interest in the telephone system. Under what policy provision will you list Landry Office Supply's financial interest? - ANSWERS,Loss payable clause Jackson Hardware has a basic property policy. Which of the following perils is NOT typically covered under such a policy? - ANSWERS,earthquake Lynn attended a backyard barbeque on the 4th of July. Her host distributed sparklers to guests and Lynn knew they were dangerous. After Lynn's sparkler was lit, some burning ashes landed on her nose and caused permanent scarring. If Lynn sues the host for negligence, which defense might the host raise for the best result in the host's favor? - ANSWERS,Assumption of risk When Mr. Huan's piano was damaged by vandals who broke into his house, the insurance company subtracted $200 for depreciation when it made its settlement offer. On what basis did the insurer value Mr. Huan's loss? - ANSWERS,Actual cash value Jack, an underwriter with Market Place Insurance Company, reviews many sources of information to decide whether to accept or reject a risk. Which of the following sources of information is typically not used in the underwriting review process? - ANSWERS,Academic records The night before her certification exam, Laura dreamed she was taking a lie detector test on insurance policy endorsements. She correctly identifies each of the following as true statements EXCEPT: - ANSWERS,The wording in an insurance policy takes precedence over the wording in an endorsement attached to that policy. After Jackson's Hardware Store is closed for business, a thief breaks in and steals merchandise and cash that was left in the cash register. Which peril caused this loss? - ANSWERS,Burglary Mrs. Grant's home suffered a fire. The contractor tells Mrs. Grant it will cost $10,000 to repair the damage and restore her home so it's exactly the same as it was before the fire. What valuation basis did the contractor explain to Mrs. Grant? - ANSWERS,Replacement value

How does an insurance rate differ from an insurance premium? - ANSWERS,A rate is the price of insurance for each unit of exposure. A premium is a periodic payment for insurance coverage. What are the two types of compensatory damages? - ANSWERS,Special and general Mitch tripped on the sidewalk and let go of his briefcase, which landed in a flower stall and knocked several potted plants off a shelf. A shard from one of the flower pots landed in the soup being served to a patron at the sidewalk caf' next door. The patron took the soup home. Several days later, his wife added spices to the soup before serving it to their children. One child grew ill from ingesting the shard. The patron sued the owner of the flower stall, who in turn sued Mitch. Under these circumstances, is there a proximate causation between Mitch's actions and the injury caused to the child? - ANSWERS,No, Mitch could not reasonably anticipate that his tripping would set in motion a chain of events that would lead to the child's injury. Sue buys a standard homeowner's policy, but has some unique needs that may not be included within the scope of typical homeowner's coverage. What options, if any, does she have to adapt the coverage to her specific needs? - ANSWERS,She should consider buying an endorsement. Sara's insurance application was declined because of information provided in a consumer report. She is entitled to receive all the following information about the coverage denial EXCEPT: - ANSWERS,Identification of the investigator who collected the information Ursula asks you to explain what bodily injury is. You tell her it is bodily harm, sickness, and disease including required care, loss of services, and resulting death. When you provide Ursula with examples of bodily injury, which of the following is not included? - ANSWERS,Invasion of privacy A cargo ship owned by Neptune Transportation Company collides with another ship and sinks in a harbor. Although the ship rests in shallow water, the cost to save its cargo exceeds the cargo's value. What kind of loss is this? - ANSWERS,Constructive total loss Surreal Manufacturing Co. is on its state's 'exportable list.' What is the significance of this? - ANSWERS,Insurance for the risk is so difficult to obtain that the usual requirements to qualify for surplus lines market are waived Eloise installed an in-ground swimming pool in the back yard of her home. Under what section of her homeowners policy is the pool insured, if at all? - ANSWERS,Coverage B--Other Structures

Mighty Manufacturing Co. is vulnerable to earthquakes and needs high limits on its property insurance. Earthquake is an excluded peril under its commercial property insurance policy, and no insurer will write a high limit earthquake endorsement for Mighty. What might Mighty do in this case? - ANSWERS,buy a difference in conditions policy Part of the building in which Ned has his ice cream parlor collapses. Depending on what caused the collapse, the damage might be covered under Ned's businessowners policy. The loss will not be covered if the peril that caused the damage was - ANSWERS,earth movement Lambert Jewelers' BOP doesn't provide adequate coverage for jewelry and gems it owns, jewelry in its care that is owned by customers, and assorted items of property. What kind of commercial inland marine coverage do you recommend? - ANSWERS,Jewelers Block Abbie's homeowners policy responds to a lawsuit filed against her. In addition to paying up to the limit of liability, how else will Coverage E ' Personal Liability on her policy respond? - ANSWERS,it will provide a defense Valerie's home is insured on a dwelling policy. It is destroyed when it falls into a sinkhole. How does Valerie's insurer respond when she submits a claim for damage to the building? - ANSWERS,It denies her claim per the Earthquake exclusion Which of the following statements BEST describes the personal liability coverage afforded on the ISO homeowners forms? - ANSWERS,The ISO homeowners forms provide the same liability coverage What homeowners form was designed to provide coverage for older homes because their replacement values exceed their market values by a significant amount? - ANSWERS,HO-8 Modified Coverage Form Zara wants the peril of theft included on her dwelling policy. Which form or document will provide the desired coverage for theft? - ANSWERS,endorsement Farm Liability Coverage Form (FL 00 20) provides all of the following coverages EXCEPT: - ANSWERS,Loss of use (Coverage L) Which of the following is not a standard flood insurance policy coverage form? - ANSWERS,homeowners form

Standard property insurance policies exclude coverage for property damage to electrical devices caused by all of the following EXCEPT: - ANSWERS,damage from lightning The farm insurance program combines homeowners coverage with commercial property and liability coverage. The property coverages are addressed in separate forms. Which of the following forms is not among the property forms of the farm insurance program? - ANSWERS,Farm Preservation of Property Form The ordinance or law endorsement provides three separate coverages but does not include coverage for - ANSWERS,Loss of use while repair work is underway (Coverage D) Ted is a carpentry contractor who builds decks, porches and room additions. Ted's business is eligible for a businessowners policy as long as - ANSWERS,annual payroll is $300,000 or less and he does no work at heights greater than three stories Which of the following perils is not excluded on a dwelling policy? - ANSWERS,lightning A complete commercial property policy is made up of several separate forms, which include - ANSWERS,Declarations, commercial property conditions, and one or more causes of loss forms Mr. Klondike insured property on a commercial inland marine policy. After one item of insured property suffered a total loss, what policy condition paid Mr. Klondike's claim and then refunded the unearned premium on the destroyed item? - ANSWERS,Reinstatement of Limit after Loss The burglar alarm in Dexter's store has been malfunctioning lately so turns it off one weekend to avoid bothering his neighbors when it rings unintentionally. A burglary occurs on Saturday and $25,000 worth of jewelry is taken. Dexter has a protective safeguards endorsement on his BOP. Will the endorsement cover the loss? - ANSWERS,The insurance company will likely deny the claim because the alarm system was inoperative. What percentage of flood losses occurs in flood zones that have less than a 1 percent chance of flooding in a given year? - ANSWERS, Which of the following conditions is not a commercial property condition? - ANSWERS,Arbitration Mr. Conrad lives on the second floor of a duplex he bought. What definition in his homeowners policy describes his home? - ANSWERS,Residence premises

The valuation condition of the ISO commercial inland marine policy states property will be valued at the smallest of three amounts. Which of the following is not one of those amounts? - ANSWERS,The market value of covered property Albert's homeowners policy provides open perils coverage on his home and named perils coverage on his personal property. In addition, it provides personal liability coverage. On what form is Albert's homeowners policy written? - ANSWERS,HO-3 Special Form Mr. and Mrs. Yamakawa report that the new garage they added to their house just collapsed. The claims adjuster determines the collapse is the direct result of the faulty design and workmanship of the contractor who built the garage. What exclusion on the Yamakawas' dwelling policy will apply to the loss? - ANSWERS,Faulty, inadequate, or defective processes, procedures, materials, or workmanship Freddie has an equipment breakdown policy for his restaurant. When a power surge damaged the restaurant's refrigeration system, the restaurant had to close while repairs were made. The policy will not pay Freddie for which loss? - ANSWERS,Additional costs to comply with new building codes Don is a contract farmer who owns several pieces of farm equipment and works for several farmers. He has a mobile agricultural machinery and equipment coverage form for this purpose. This form covers all of the following farm equipment EXCEPT: - ANSWERS,Irrigation equipment listed with a limit of insurance Bryan's homeowners insurance company responds to a claim for bodily injury filed by his neighbor. If the insurance company makes payment without regard to Bryan's legal liability, under what coverage is it paying? - ANSWERS,Coverage F ' Medical Payments to Others Which of the following coverages receives loss settlement on a replacement value basis on the DP- 2 and DP-3 forms? - ANSWERS,Coverage A ' Dwelling Mrs. Zarella owns vacant land and calls you to add its location to her homeowners insurance policy. You tell her the vacant land doesn't need to be added to the policy because it's already covered based on which of the following terms that are defined in the policy? - ANSWERS,Insured location A storm at sea forces Davy Jones Freight Company to jettison some cargo to lighten the ship and keep it from sinking. In ocean marine insurance, what provision determines how the loss to the cargo's owner is treated? - ANSWERS,General average

The Indiana Mine Subsidence Insurance Fund, which makes mine subsidence insurance available to owners of property located in certain identified counties, serves as - ANSWERS,The reinsurer for insurance companies Beatrice works from her home, on a part-time basis, as a hairdresser. What definition in the homeowners policy describes Beatrice's activities as a hairdresser? - ANSWERS,business Jason bought a sporting goods business 'as is,' which included the building, its contents, and some old mechanical equipment which required considerable maintenance to keep it operational. Jason purchased an equipment breakdown policy and tells you of his surprise after his claim for the extra maintenance expenses were denied. You tell Jason - ANSWERS,Extra maintenance expenses to keep equipment running are excluded In a special Mr. Ursini's home is located in an area that has a 1 percent chance of being flooded in any given year. Where does Mr. Ursini live? - ANSWERS,In a special flood hazard area (SFHA) Mrs. Delaney hired a contractor to build a deck on the back of her house. She purchased the necessary lumber and it's piled in her back yard. Under what coverage part of her homeowners policy is the lumber insured? - ANSWERS,Coverage A ' Dwelling Joanne, an agent, proposes a variety of commercial property insurance forms to provide a customer with the desired coverage. Two of the forms are interline forms, which - ANSWERS,Can be used with more than one line of insurance Martin works for A-1 Novelty Shop and injures his back when he falls from a defective ladder. In addition to his claim against A-1 Novelty, his wife files a claim for mental anguish and pain and suffering as a result of his injury. Will A-1's businessowners policy cover these claims? - ANSWERS,No. These claims are covered under workers compensation insurance. How is personal liability coverage provided on a dwelling fire policy? - ANSWERS,It can only be provided by endorsement Samantha is being accused of deliberately causing bodily injury to Theresa. When she submits a liability claim under her homeowners policy after Theresa sues her, why does Samantha's insurer deny the claim? - ANSWERS,Because the injury didn't result from an occurrence

Mr. Uhlman's dwelling policy is written on a DP-1. He wants to add the peril of windstorm to the basic perils of fire, lightning, and internal explosion. What instructions do you give him with respect to processing his request? - ANSWERS,The peril of windstorm can be purchased with extended coverages (EC) Mr. York's homeowners insurance company paid a liability claim because he was responsible for destroying property owned by his neighbor. For what did the insurer pay its claim? - ANSWERS,Property damage Uninsured motorist property damage coverage does not pay for bodily injury or damages if - ANSWERS,The accident was caused by the named insured Your client, Warren, reports that his basement is filled with water because water beneath the surface of the ground seeped through foundation. He asks you to submit his claim to the insurer that writes his dwelling policy. How will the insurer respond to Warren's claim? - ANSWERS,It will deny the claim under the water damage exclusion A company's insurance and risk manager is reviewing the company's commercial property policy. The building and personal property coverage form indicates that there are three categories of covered property. What are they? - ANSWERS,Building property, business personal property of the insured, and personal property of others Ace Real Estate is considering a businessowners policy for an office building that has eight stories and is less than 100,000 square feet. Its agent will advise Ace that - ANSWERS,Ace is ineligible because the building is taller than six stories When is a notice of nonrenewal of a commercial property and casualty insurance policy required? - ANSWERS,The policy has been in effect for less than 90 days. Porter is the named insured in the declarations of a personal auto policy. He lives with his wife Anne, who also drives the insured auto. Anne is not a named insured in the declarations, but Porter understands that, as his spouse, she is also covered by this policy. Which statement is correct if Porter names her in the declarations?? - ANSWERS,She will no additional rights, privileges, or protection. A home may not be eligible for coverage under a FAIR plan in most states because of all of the following EXCEPT: - ANSWERS,The air-conditioning and heating system is obsolete.

Quincy Enterprises had a claims-made commercial general liability policy. When it went out of business, Quincy Enterprises cancelled the policy and did not buy an extended reporting period. For how long may claims be made against Quincy Enterprises under the policy and receive coverage? - ANSWERS,5 years Lane Avenue Bakery owns and uses in its business both hired autos and non-owned autos. It carries symbol 8 for hired auto coverage and symbol 9 for non-owned autos. With respect to coverage, what is the difference between its hired autos and non-owned autos? - ANSWERS,A rental car is a hired auto; an employee's pickup truck used in the business would be a non-owned auto. Priscilla has a commercial general liability policy with policy dates from January 1 of this year to January 1 of next year and a retroactive date of January 1 two years ago. On what form is Priscilla's CGL policy written? - ANSWERS,Claims-made Form What is the name of the plan whereby each licensed Indiana insurance company participates by taking its share of drivers who have difficulty buying automobile insurance? - ANSWERS,Indiana Automobile Insurance Plan What endorsement can be added to a commercial general liability policy to limit coverage for bodily injury or property damage resulting from mold and 'sick building syndrome'? - ANSWERS,Limited Fungi or Bacteria Coverage Cindy is a copywriter for Country Gentleman, a men's fashion magazine. She believes she is a victim of sexual discrimination and has experienced sexual harassment by her supervisor. She files suit against the magazine. What type of liability insurance would Country Gentleman need to cover Cindy's claims? - ANSWERS,Employment practices liability (EPL) Percy injured his knee in an auto accident five years ago when he was a passenger in his girlfriend's car. He just received follow-up treatment for his knee and submits the bill to his girlfriend's insurance company. How does the auto policy respond? - ANSWERS,It doesn't pay the bill because it wasn't incurred within 3 years of the accident Selena is unable to find an insurance company that will write insurance on her home because she has had several losses within the past three years. You tell her you are able to secure coverage in which of the following ways? - ANSWERS,Through the state's FAIR plan Ingalls Carpentry has a workers compensation and employers liability policy with limits of 100/500/100. What coverage do these limits apply to? - ANSWERS,Employers liability

Which of the following is not an exclusion under Part B' Medical Payments Coverage on the PAP? - ANSWERS,Funeral expenses Mrs. Goldman's car was parked in her driveway when another vehicle crashed into it. The adjuster claims the cost to repair Mrs. Goldman's vehicle is 90 percent of the vehicle's actual cash value. What term is used to apply to the loss? - ANSWERS,Constructive total loss A notice of cancellation of an automobile insurance policy is not effective unless mailed or delivered by the insurer to the named insured at least how many days before the effective date of cancellation? - ANSWERS, The personal auto policy (PAP) provides loss settlement at the lesser of the actual cash value of the vehicle or the amount necessary to repair or replace the damaged property. How is 'actual cash value' defined? - ANSWERS,Replacement cost minus depreciation When broken glass is among the damage resulting from the collision of a covered auto, the insured may choose to have the glass breakage covered as part of the collision loss. What is the purpose of this provision? - ANSWERS,It allows the insured to avoid paying separate comprehensive and collision deductibles. Temporary Total Disability (TTD) compensation is paid for the period of time - ANSWERS,When an employee is completely unable to perform his or her regular work because of an injury Gordon was on vacation in Mexico when a utility pole landed on his car a few miles from the U.S. border. He had bought a Limited Mexico Coverage endorsement on his PAP but didn't buy liability insurance from a Mexican insurer. Which of the following is not true about the coverage provided through this endorsement? - ANSWERS,The accident must occur more than 25 miles from the U.S. border. Side Street Restaurant owns a pick-up truck and a van that it uses in its business. It insures these vehicles using symbol 7. What is a limitation in coverage when symbol 7 is designated in the schedule of covered autos? - ANSWERS,Symbol 7 imposes limitations with regard to newly acquired autos. Mr. Newman's auto policy has liability limits of 25/50/10. When he drives into another state, its compulsory insurance laws require him to have liability limits of 50/100/50. What must Mr. Newman

do to his personal auto policy to secure limits of 50/100/50 when he's in the other state? - ANSWERS,Nothing, coverage is automatically provided If the bus drivers employed by a business are assigned a workers' compensation classification code with a rate of $2.50 and the employer has payroll of $100,000 for that classification code, what is the unmodified premium for that classification? - ANSWERS,$2, Tidewell, Inc. failed to buy workers compensation insurance, despite several notices sent by the state. In addition to fining Tidewell, Inc., what other measure can the state take to compel Tidewell to comply with the state's workers compensation statutes? - ANSWERS,Shut down operations Insurers may not sell or provide underinsured motorist coverage in an amount less than - ANSWERS,$50, Workers compensation premiums are based on which of the following exposures? - ANSWERS,Payroll of the employees The Indiana Worker's Compensation Act divides all types of employment into the following three categories, which does NOT include - ANSWERS,Employment that must be covered for full-time workers Harriet's auto mechanic tells her state law requires him to use generic parts when repairing the collision damage her car sustained in a recent accident, despite the fact she wants him to use original equipment manufacturer (OEM) parts. What type of parts will the mechanic use to repair Harriet's car? - ANSWERS,Aftermarket parts Some states require that if an applicant for auto insurance is not a resident of that state, he or she meet another requirement. What is that requirement? - ANSWERS,The insured vehicle must be principally garaged in the state Even though both surety bonds and insurance are methods of transferring risk, they differ in how they treat that risk. All of the following are correct about their characteristics EXCEPT: - ANSWERS,Bonds and insurance always involve three parties. Toby rents a trailer to use on the family vacation. Toby checks the limit of liability provision in his personal auto policy and discovers that the most an insurer will pay for any loss to the rented trailer is - ANSWERS,$1,

Eamon's Clothing Store has crime coverage in the form of inside premises ' theft of money and securities. The manager hires Russell who was fired from a previous job for stealing merchandise. Nevertheless, the manager trusts that Russell has changed his ways. A month later, Russell is found to have stolen cash from the register and is fired. Eamon's files a claim with the store's insurer. Is the loss covered? - ANSWERS,No, because the manager know of Russell's criminal background. Milo's Tavern has a commercial general liability policy. Alvin becomes intoxicated at the tavern before leaving in his car. He collides with a van carrying several passengers. The insured persons sue Alvin under his personal auto policy and sue Milo's Tavern for failing to monitor Alvin's drinking. Which statement is correct with respect to the claims against Milo's Tavern? - ANSWERS,The tavern needs liquor liability insurance to cover the claims. Bill and Ben are employees of Norton's Appliances. Bill usually drives the company van on deliveries and Ben helps Bill unload and deliver the appliance. While they are taking a refrigerator to a customer, they collide with a large truck. Ben is injured and files a claim against Bill and Norton's Appliances. Is Ben's claim covered under Norton's business auto policy? - ANSWERS,No. The fellow employee exclusion would apply. Three of the following categories of employment must be covered by workers compensation. Which of the following is excluded from coverage? - ANSWERS,Farm and agricultural employees Several residents of the Shady Grove Nursing Home claim that they are missing some expensive jewelry. An investigation reveals that an attendant was stealing the jewelry. Which crime coverage endorsement would pay for these losses? - ANSWERS,Guests' property Salvador, a carpenter, is a contractor for Coogan Construction Company, which builds houses. After Salvador completes a large framing job, Coogan has financial problems and cannot pay him. How might Salvador recover for his labor and materials? - ANSWERS,Mechanics lien Derek takes his car to an auto dealership that loans him a car while his own is being repaired. Derek checks his personal auto policy to see what coverages apply to temporary substitute autos. He learns that a temporary substitute is not considered a covered auto for purposes of - ANSWERS,Physical damage (collision and other-than-collision) coverage Lombard Trucking is party to a contract with Murphy Motors. Each party agrees to exchange trailers with the other during the normal operations of their businesses. In the contact, each party also agrees to hold the other harmless for damage occurring to the other's trailer when in its possession. What type of contract do Lombard and Murphy have? - ANSWERS,Trailer Interchange Agreement

Cross Street Carpet Sales has a business auto policy. One of its delivery trucks is involved in an accident which causes the truck's fuel tank to rupture and spill fuel into the street. Businesses in the area are forced to close while the fuel is cleaned up. The businesses sue Cross Street for the business income they lost as a result of the accident. Are these claims covered under Cross Street's BAP? - ANSWERS,Yes. The pollution exclusion does not apply to liability arising out of the escape of fuel needed for the normal functioning of the covered auto. Mrs. Ogden submitted a claim under her personal auto policy for injuries she sustained in an accident. The insurer made payment, it said, despite the fault of the driver. Under what coverage did the insurer make payment for Mrs. Ogden's injuries? - ANSWERS,Medical Payments What term is used to describe a workers compensation law provision that stipulates the benefits prescribed by workers compensation statute are the only method of being compensated for a workplace injury? - ANSWERS,Exclusive remedy Zahra has an umbrella liability policy with a limit of $1,000,000. Her underlying insurance includes a personal auto policy with a $500,000 limit. Zahra's PAP lapses before she has an auto accident that seriously injures the passengers in both vehicles. The claims for personal injury total $1,000,000. Zahra files a liability claim for $1,000,000 under her umbrella policy. How much, if anything, will the umbrella policy pay? - ANSWERS,$500,000, the difference between the PAP limit and the total claim Jordan, a local tax collector, uses tax receipts to buy a lake home. She is prosecuted for embezzling these funds and converting them her personal use. Although her official acts are guaranteed by a public official bond, what must happen before the bond will pay for the loss? - ANSWERS,Jordan must be financially unable to pay a judgment against her. Kyle owns an eighteen-wheeler and transports property for customers who enter into a contract with him. He charges a fee for these services. What term BEST describes Kyle? - ANSWERS,Trucker A company that only provides truck transportation for its own cargo is known as what type of carrier? - ANSWERS,Private carrier The securities deposited with others endorsement is used to cover securities that the named insured has deposited with others that are not in a safe deposit box or a vault. The endorsement excludes all of the following EXCEPT: - ANSWERS,Disappearance of securities deposited with others Proof of financial responsibility would NOT be in the form of a - ANSWERS,Certificate of authority

Jane is self-employed and hires two employees. When she purchases a workers compensation policy for the benefit of her employees, what endorsement does she purchase to provide WC benefits for herself? - ANSWERS,Sole-proprietors, Partners, Officers, and Others Coverage endorsement Snow Industries violates state law and operates without complying with the state's compulsory workers compensation statute. If an injured worker sues Snow Industries for a work-related injury, how does the statute protect it? - ANSWERS,Statute provides no protection