Insurance Concepts and Terminology, Exams of Advanced Education

Download Insurance Concepts and Terminology and more Exams Advanced Education in PDF only on Docsity! California Property And Casualty Exam Questions With 100% Correct Answers 2024 Most workers compensation policies are written for 1 year terms. - Correct Answer-true A person licensed as either a property and casualty agent/broker or as an accident and health agent may be authorized to transact disability insurance for an admitted insurer by filing a notice of appointment from that insurer. This is known as: - Correct Answer- Dual Authority HMO's, PPO's, and POS, are referred to as what kind of care? - Correct Answer- Managed care Which of the following could offset the effects of not having a disability income policy: - Correct Answer-cash savings Which of the following is NOT one of the three extensions of coverage under the special form? - Correct Answer-Collapse If coverage exists under both an occurrence and a claims-made policy, how will the policies share the loss? - Correct Answer-The claims-made policy will provide excess coverage A supplemental extended reporting period extends coverage: - Correct Answer- indefinitely Basic services - Correct Answer-Services that an HMO are required to provide are referred to as which of the following Risk Retention Groups are: - Correct Answer-liability insurers owned by their policyholders Barratry - Correct Answer-In Ocean Marine if the captain and crew steal the ship and cargo without the ship-owners knowledge If the insured must rent a car because his was stolen, what is the maximum dollar amount of coverage available under the commercial auto policy? - Correct Answer-600 Expected or intended losses - Correct Answer-exclusion under the business auto liability coverage Concealment - Correct Answer-the neglect to communicate that which a party knows and ought to communicate A disability income policy will do which of the following - Correct Answer-Replace a portion of the insureds income if they become disabled Long-term care policies may not be cancelled or non-renewed on the grounds of age. - Correct Answer-true Under the conversion privilege how long does an insured switching over from a group health package to a personal health policy have? - Correct Answer-31 days Which of the following would NOT be considered an insured under the homeowner's policy? - Correct Answer-65 year old uncle residing off the premises Organizers of HMOs include commercial insurers, hospitals, employers, unions, and local communities. - Correct Answer-true Disability income insurance - Correct Answer-type of disability insurance that provide benefits if someone becomes ill and is unable to work permanent total - Correct Answer-is the most sever type of disability Bodily injuries - Correct Answer-usually excluded under errors and omissions insurance The period of time when no benefits are paid is called the black out period - Correct Answer-true In addition to ISO a commercial crime program falls under Jurisdiction of - Correct Answer-Surety Association of America If a building insured under a commercial property policy was vacant for 60 days, what perils are excluded? - Correct Answer-Vandalism, theft, breakage of glass, sprinkler leakage, and water damage Which of the following is correct about hospice care? - Correct Answer-It is a provided coverage under part A of Medicare What is true about Workers Comp. Insurance? - Correct Answer-Employers are responsible for the cost of their employee What is a difference between surety bonds and insurance policies? - Correct Answer- Surety bonds are 3 party contracts, insurance policies are 2 party contracts All of the following are implied warranties under an Ocean Marine Policy EXCEPT: - Correct Answer-Cost of Insurance Coverage Jones Act - Correct Answer-law made ship-owners responsible for bodily injuries to seamen? Under Disability income insurance what is true? - Correct Answer-An insured could suffer an injury and not qualify for income benefits Pairs and sets - Correct Answer-is NOT a "time element" coverage drop-down coverages - Correct Answer-Coverages provided by a personal umbrella policy that are broader than the coverages provided by an underlying policy Hicap helps do all of the following except - Correct Answer-Write policies specific to a insured In a commercial property policy, how much would a company pay for debris removal? - Correct Answer-Up to 25% of the covered loss For debris removal coverage to apply, debris removal expenses must be reported within how many days of the loss? - Correct Answer-180 Capital sum - Correct Answer-The benefit amount paid to the insured for dismemberment When a group plan is contributory, what percentage of eligible employees must participate? - Correct Answer-75% The insured has liability limits of 15/30/5 on their auto, if the insured is involved in an "at fault" accident in another state, where the financial responsibility limits are higher, what must the insured's company do: - Correct Answer-Meet the minimum requirements of the other state with no additional premium due Aleatory - Correct Answer-A contract in which the amount of money to be given up by each party is NOT equal Family Member Services - Correct Answer-Mary's husband Stan sues Mary's employer for loss of consortium for work-related injuries that left her in a wheelchair. An earthquake policy generally will have what type of deductible? - Correct Answer-15% of the policy limit The standard amount of coverage of homeowners insurance for other structures is typically for what percentage of the dwelling amount? - Correct Answer-10% Social security was invented to create a sense of stability and benefits for retired workers. Social security was meant to establish what? - Correct Answer-Minimum floor for the participants Which Disability income policy has the highest premium? - Correct Answer-30 day elimination; 5 year benefit All of the following were common law defenses under previous employer defenses except: - Correct Answer-Comparative negligence Risk Retention Groups are: - Correct Answer-liability insurers owned by their policyholders Services that an HMO are required to provide are referred to as which of the following - Correct Answer-Basic services The commissioner may license an organization as an: - Correct Answer-insurance claims analysis bureau Which of the following most accurately defined the Fellow Servant Rule? - Correct Answer-Another employee was responsible for the employees injuries Which of the following is excluded under Coverage A of the General Liability Policy? - Correct Answer-Property damage caused intentionally by an employee Health coverage providers emphasizing preventive health care are called: - Correct Answer-health maintenance organizations If the coinsurance feature in a Major Medical Insurance Policy is 80%/20% with a $200 deductible, how much of a $4,000 bill would the insured pay? - Correct Answer-$800 What is the grace period on a disability policy that has a quarterly premium payment? - Correct Answer-31 DAYS grace = 31 What is true about workers comp. rehabilitation benefit? - Correct Answer-Provided by all states Which of the following is an exclusion under the business auto liability coverage: - Correct Answer-Expected or intended losses Defense costs under the personal auto policy are paid: - Correct Answer-in addition to the policy limits Which of the following is NOT an advantage of having a commercial package policy instead of several monoline policies? - Correct Answer-There is broader coverage Which type of physical damage coverage provides insurance for cause from almost any type of loss? - Correct Answer-Comprehensive Fidelity bonds typically remain in effect: - Correct Answer-until cancelled All of the following would be eligible for coverage under a BOP except: - Correct Answer-bank BOB = no bank The maximum coverage that will be provided for newly acquired organizations under the general liability policy is: - Correct Answer-90 days All of the following are advantages of self insured plans except: - Correct Answer-self insured funds cant be used to buy death benefits Which of the following would be an "insured contract" under the general liability policy? - Correct Answer-A manufacturers building lease Insurers selling fire, marine, plate glass, liability, workers' compensation, common carrier liability, boiler and machinery, burglary, sprinkler, team and vehicle, automobile, aircraft and miscellaneous insurance in California must belong to the: - Correct Answer- California Insurance Guarantee Association What are three HMO models? - Correct Answer-Group Practice Model, Staff Model, and Independent Practice Association Model group/staff/practice The medical payments under Section II of the homeowner's policy would cover an injury to: - Correct Answer-Guest on the premises An earthquake policy's limits - Correct Answer-Are limited to the amount of coverage under the homeowners policy In a business interruption policy, a coinsurance requirement would apply to: - Correct Answer-business income coverage What are the three categories of health insurance coverage? - Correct Answer-Medical expense, disability income, accidental death and dismemberment The drive other car endorsement applies to: - Correct Answer-the nonbusiness auto exposures of insureds How much coverage may apply to cover B (other structure) under the homeowner's policy? - Correct Answer-10% of A Under a building and personal property coverage form, which form will describe the perils insured against - Correct Answer-Cause of Loss Form