Insurance Terminology and Concepts, Exams of Insurance law

Download Insurance Terminology and Concepts and more Exams Insurance law in PDF only on Docsity!

alabama insurance adjuster exam

It must be a notarized document - Answer- Which of the following is NOT a requirement for a legally binding contract? Principle of Indemnity - Answer- Greg plays trombone in his school band during football games. During a rally song in the stands one day , Greg annoys one of the opposing team's fans , who grabs his $ 400 trombone and hurls it down the bleachers , completely destroying it. Greg's insurance pays him $ 400 to replace the trombone , but then the opposing team's coach also offers to replace the instrument , at whatever the cost. So Greg orders a new $ 3,200 trombone and has the opposing team's athletic department absorb the cost. Which principle has Greg violated? Premium - Answer- The fee paid by the insured in exchange for an insurance policy is called a : Unilateral Contract - Answer- In a _________ only one party is legally obligated to perform conditions - Answer- In which section of an insurance policy, might you find the following statement? "Damage to insured property must be reported within 15 days of the damaging occurrence. " The insuring agreement - Answer- in an insurance policy, the summary of what the insurer will do in the event of covered loss is called: foreign - Answer- an insurer that adheres to the law of a state, but is located outside of that state is called a_____ insurer A fraternal benefit society is a social organization based around common interests and beliefs. - Answer- Which of the following best describes a Fraternal Benefit Society? a driver's tendency to text while driving - Answer- which of the following is a hazard sandra's home is in an area of los Angeles that is often hit by earthquakes - Answer- which of the following is an example of a hazard

High-crime neighborhoods - Answer- an insurance company might consider any of the following a risk, EXCEPT the ring is a pure risk - Answer- Steve has just purchased a wedding ring for his new bride. If something were to happen to the ring, he'd be out a lot of money, so he purchases an insurance policy. He is able to do this because: risk - Answer- when an insurer issues an insurance policy, the actual item, person, or organization that is being insured is called the: Risk Rentention - Answer- six stars development company has just purchased several large properties in Las Vegas. As a result of this large purchase They are a little short on money and decide to save money by not purchasing insurance on their new properties. Six stars is practicing: risk reduction. - Answer- Jared hopes to purchase a new insurance policy for his car , but he has an extremely poor driving record. The insurance company decides to issue Jared an insurance policy , but charges him a premium much higher than the average driver. The insurance company is practicing : Risk equality - Answer- Which of the following is NOT a risk management technique? Temporary coverage for an insurance applicant until the policy is issued - Answer- What is a binder? Estoppel protects the insured party from an insurer who initially approves coverage , but then later denies coverage after the insured pays for repairs. - Answer- Which of the following statements about the principle of estoppel is TRUE? binder - Answer- When Sally applies for an auto policy , her agent issues her a ______ so that she can benefit from insurance protection while he underwrites the policy. representations. - Answer- The factual statements of the insured upon which an insurance policy is based are called : It is the result of an unconscious behavior - Answer- Which of the following statement about a moral hazard is FALSE? morale hazard - Answer- Lucy has insurance on an expensive necklace she likes to wear to work every day. After work , she takes it off and leaves it in her car's cupholder so she can put it back on in the morning on her way to work. Lucy's behavior would be considered a : The roads present a physical condition that increases the chance of a loss. - Answer- Adam has a treacherous drive to work every day. Not only does he have to drive down the pothole - strewn access road to the highway , but he also must traverse several icy

bridges on the way to work. Why does the insurance company call these hazards " physical hazards "? indirect loss. - Answer- As Jonathan was driving through an intersection , another driver ran a red light and crashed into the side of Jonathan's car , which caused significant physical damage to both vehicles. Jonathan must now rent a car while his is being repaired. The rental car expense would be considered a / an : an indirect loss. - Answer- Driving home after a 14 - hour shift , Sam falls asleep home , causing extensive damage to the East wall and at the wheel and plows into Sandra's roof. As a result , Sandra and her family must move into a hotel until the repairs are completed The cost of staying in a hotel is : Flora will file a first - party claim for the damage to her car , and Cam will file a third - party claim for the damage to his billboard. - Answer- Flora is driving in the rain when she skids off the road and slams into Cam's billboard , totaling her car and causing $ 2,000 in damage to the billboard Flora has an auto policy with ABC Insurance , and both Cam and Flora submit claims against this policy for their damages. Which of the following is TRUE? $ 2,000 - Answer- James is walking down the street when Andrea , an uninsured motorist , strikes him with her car. James suffers $ 12,000 in injuries from the accident. He has personal injury protection of $ 10,000 from his own automobile insurance policy , which immediately pays him the full amount. By accepting $ 10,000 from his own insurance company , James has waived the right to sue Andrea for more than ________for personal injury. A woman files an insurance claim when she is injured by an employee at a local bar. - Answer- Which of the following is most likely a third party claim? $ 1,900 - Answer- Kevin has a homeowners policy with replacement cost valuation and a coverage limit of $ 90,000 for his personal property. Three years ago , Kevin purchased a sofa and loveseat for $ 1,000 and $ 500 respectively. Both pieces of furniture depreciate at $ 100 per year. A house fire damaged many of Kevin's belongings , including the sofa and loveseat , which now cost $ 1,200 and $ 700 to purchase today. Ignoring any deductibles , how much will Kevin's insurer give him for the damaged sofa and loveseat? Actual cash value is always most beneficial to a policyholder. - Answer- Which of the following statements regarding actual cash value is FALSE? $ 0 - Answer- Roxanne runs a red light and totals Ben's car in a t - bone collision. Roxanne's auto policy includes liability coverage with limits of 50/100/25 and Collision coverage with a deductible of $ 500. Ben's car is worth $ 1,800 at the time of the accident , and he files a claim against Roxanne's liability insurance. Bearing in mind

that liability coverage doesn't have a deductible , how much will Roxanne have to pay out - of - pocket for the damages she caused? Under replacement cost valuation , insurers may safeguard the principle of indemnity by requiring policyholders to replace insured items before making full reparations. When offering replacement - Answer- Which of the following statements applies to replacement cost valuation? holds a person liable for his actions regardless of how much care he demonstrates. - Answer- Strict liability : The insurer pays $ 100,000 ; the aggregate limit is now $ 200,000 ; and ABC Masonry must pay $ 50,000. - Answer- ABC Masonry , Inc. has an aggregate liability policy with limits of 100,000 / 300,000. One day , an accident at a construction site leads to $ 150,000 in damage to public property. Assuming the cause of loss is covered under ABC Masonry's liability policy , how will this claim be paid? A man slips inside a grocery store and injures himself. - Answer- Which of the following incidents would a liability insurance policy cover? general damages - Answer- Ricky was watching a baseball game at XYZ Stadium , when the railing on which he was leaning gave way and he fell two stories. As a result of his fall , Ricky broke his back and is now paralyzed from the waist down. Ricky sued the owners of XYZ Stadium and was awarded $ 150,000 to cover his medical bills and $ 2.5 million in because of the permanent nature of his injury. special damages - Answer- Tim is the plaintiff in a case involving an auto accident. To recover monies he feels are due him , Tim produces documents to prove he had to pay over $ 55,000 in medical bills. If the court were to award Tim $ 55,000 , the damages would be classified as : implied authority. - Answer- William is wearing an ABC Insurance jacket and has an ABC Insurance sign over his rented office. The walk - in customer could reasonably believe that he has the authority to write an insurance contract because of his : An insurer that employs an insurance adjuster to investigate damage claims. - Answer- A fiduciary agent must regularly report to the principal. Which of the following is the BEST example of a principal in the context of insurance? It is transferred through a written contract. - Answer- How is the power to bind transferred to an adjuster? An open line of communication - Answer- An adjuster has a duty to provide which of the following to the claimant?

it is important to investigate for fraud. - Answer- If a claimant has a history of similar claims , that could mean : The adjuster - Answer- Who is responsible for maintaining the claim file during the claim process? The premium - Answer- Which of the following factors holds the LEAST relevance when an adjuster is evaluating an insurance claim? Their fees are split by all parties involved in the dispute. - Answer- How are mediators paid? Mediation - Answer- Cindy and her insurer cannot reach an agreement for her property claim , and have gone back and forth for weeks without coming within $ 10,000 of each other. At this point , since both believe they are offering a fair settlement , a third party is needed to help facilitate the negotiation. Both parties still want to retain their ability to " walk - away " if they cannot reach an agreement. What is the next best step for Cindy and her insurer? move to dispute resolution. - Answer- When the dollar amount difference between an adjuster and a claimant is very large , the adjuster should : Reviewing video footage with the claimant that contradicts the claimant's position - Answer- Which of the following activities could be a useful negotiation technique? Over - confident or arrogant - Answer- Having a positive attitude can help an adjuster during negotiations. Which of the following aspects of an adjuster's attitude can hinder negotiations? Policy X will pay $ 50,000 and Policy Z will pay $ 12,000 - Answer- Jim has two policies that cover the same risk , but they respond differently : Policy X is primary and Policy Z is excess. Policy X has a limit of $ 50,000 and Policy Z has a limit of $ 25,000. When Jim suffers an insured loss totaling $ 62,000 , how will each policy respond? $ 12,000 - Answer- Melanie's $ 300,000 home suffers $ 90,000 in damage from a fire. The adjuster finds the home value since 2008 has depreciated 25 % , making the ACV loss $ 67,500. Although Melanie's policy covers repairs at their replacement cost , she receives $ 67,500 at the time of loss. Repair to her home end up totaling $ 79,. How much , if any , further indemnification may Melanie receive from the loss? Lightning - Answer- Which of these is NOT typically excluded from coverage in a property insurance policy? An endorsed policy will always provide more coverage than an unendorsed policy. - Answer- Which of the following statements is NOT true of endorsements?

It is no longer used in its original format - Answer- Which of the following statements about the Standard Fire Policy is TRUE? exclusions. - Answer- In the Standard Fire Policy , " intentional losses " and " extreme perils that cause catastrophic damage to a large number of policyholders " would be considered examples of : His insurer will pay $ 15,000 to rebuild the kitchen and nothing for the stolen trim. - Answer- Bill's new home is in the final stages of construction , and he has purchased an HO - 2 policy to insure his financial interest in the property. This morning , Bill's contractor calls to tell him that an electrical fire has destroyed his new kitchen , and all of the crown molding that was supposed to be installed today has been stolen. It will be $ 15,000 to rebuild the kitchen and another $ 4,200 to replace the trim. How will Bill's insurer respond when he files a claim? With Grave Marker coverage , Susan can receive a maximum of $ 5,000 to pay for the damaged gravestone - Answer- Susan is insured with a homeowners policy. After someone destroyed her late husband's gravestone with a vehicle , Susan filed a claim against her homeowners policy. Which of the following statements is TRUE? $ 0 - Answer- Sam , who has a typical HO - 3 policy , is forced to evacuate his home by civil authorities due to rising flood waters in his neighborhood. It takes a month before Sam is allowed to come back to his home. During this time , he has spent $ 3,000 in hotel expenses , on top of his monthly mortgage payment of $ 850. When he files a claim , how much will Sam receive under Coverage Scheduled Personal Property - Answer- Monica's husband , Sam , likes to buy her expensive jewelry , and she has amassed quite the collection over the years. What endorsement would Monica and Sam need to add to their homeowners policy to fully cover Monica's jewelry collection? $ 15,000 - Answer- Sherrie's roof and fence are damaged in a violent windstorm. Sherrie has a typical HO - 3 policy with a $ 150,000 limit for Coverage A - Dwelling. Assuming she has no endorsements , how much coverage does she have available for the damage to her fence? dwelling policy. - Answer- A large corporation owns a small hunting cabin in the woods , that it uses for occasional weekend getaways. The corporation can insure the cabin against property damage with a : $ 2,500 - Answer- Diana is insured under a DP - 2 policy with the following coverage limits : Coverage A $ 150,000 , Coverage B - $ 15,000 , and Coverage C- $ 25,. She and her fiancé have planned a destination wedding , but their hotel catches fire shortly after their arrival. Smoke from the fire damages all of their belongings , including Diana's $ 4,000 wedding dress. Diana's loss totals $ 5,200. When she files a claim

with her insurance company , how much can she expect to receive for this loss under her DP - 2 ( ignoring any deductible )? Broken windows caused by a burglar breaking in. - Answer- In a DP - 2 Broad Form , which of the following would be covered under the peril of Theft? Collision Coverage - Answer- D'Anton spills coffee in his lap while driving , causing him to veer off the road and smash into a telephone pole. Which part of his Auto Insurance Policy will help him pay for the repairs to his car? the named insured's 26 - year - old son who lives at home. - Answer- In a Personal Auto Policy , the term " family member " would include : Joe's - Answer- Nancy and Drew borrow Joe's car so they can have a picnic at the old water tower. On their way to the picnic , Drew accidentally rear - ends Mr. Jackley , causing $ 2,900 in damage. Whose liability insurance will pay first for the damages? Rollover - Answer- Which of the following would NOT be covered under the Comprehensive section of a PAP? $ 25,000 - Answer- Kelly took her eyes off the road and ended up smashing into the back of a passenger van. All five passengers were injured , and each one ended up with $ 25,000 in medical costs. Assuming Kelly has liability coverage with limits of 50/100/50 , how much will she have to pay out of pocket? Coverage A - Answer- In a Farm Insurance policy , which of the following would cover the main dwelling on the insured farm? Farm Product Liability - Answer- Several cases of listeria have been traced back to Aaron's crop of soybeans that he recently sold at market. What type of coverage will pay for the claims filed by those sickened by Aaron's soybeans? Farm Pollution Liability - Answer- Farmer Scott owns a farm and raises goats , producing a lot of manure. Occasionally , after a strong rain , some of the waste washes into a nearby river. Which insurance coverage can protect Scott from any liability caused by the goat waste runoff? Farm Product Liability insurance - Answer- Farmer Bob would like to sell his recent harvest of lettuce to a local wholesaler. The lettuce causes people to become ill. What type of insurance wholesaler agrees , but only if Bob can prove he has insurance protection in the event that his does Bob need in this situation? Crop - Hail - Answer- Christine's spinach field was partially destroyed by fire that resulted from a lightning strike during a recent storm. She lost 23 of her 150 acres. The adjuster writes her a check for the value of the damaged 23 acres , even though the

yield from the rest of the field is doing exceptionally well and may make up for the damaged portion. What type of insurance policy does Christine have? Failure to use the required amount of fertilizer - Answer- Roberts tomato crop production was well below, the revenue guarantee this year, and Robert files a claim against his crop revenue policy for the low yield. However, the adjuster denies Roberts claim after cleaning her inspection. What might be a reason for the denial? An actual production history - Answer- in order to set a yield guarantee for Maren's policy, Maren's agent will need a record of the last four years of her crop yields. This record is called. Jane did not leave samples of the destroyed crop for the adjuster to examine. - Answer- Farmer Jane had an MPCI policy in place when her wheat field was ruined by a hail storm. Jane promptly plowed up the wheat and planted a cover crop. Two days later she filed a claim with her insurer. The claim was denied. What might be the reason for the denial? It is subsidized by the FCIC. - Answer- Which of the following statements about Crop - Hail insurance is FALSE? The Risk Management Agency. - Answer- Who sets the critical production dates and assigns commodity market prices for MPCI policies? Because of their complexity , commercial policies only offer named - peril coverage. - Answer- Which of the following does NOT apply to commercial property insurance? A paint mixer permanently affixed to the floor - Answer- A fire burns down Jenny's Hardware , leaving virtually nothing salvageable. Which of the following items would NOT be covered under Coverage B of the Building and Personal Property Coverage Form in her commercial property policy? $ 80,000 - Answer- A fire in Sarah's factory causes her to shut the factory doors for 50 days. To limit her loss of income and keep production going , Sarah spends $ 125, renting equipment and another building. Sarah's commercial property policy doesn't have Business Income Coverage , but it does include Extra Expense Coverage. The limit on her Extra Expense coverage is $ 100,000 and she has Limits of Loss Payment of 40 % / 80 % / 100 % during her period of restoration. How much indemnification will Sarah receive for her extra expenses? An employee's laptop which she uses for work - Answer- A fire burns down Jenny's Hardware , leaving virtually nothing salvageable. Which of the following items would NOT be covered under Coverage A of the Building and Personal Property Coverage Form in her commercial property policy?

A bandsaw permanently affixed to the floor - Answer- Lucille owns her own woodworking business , building custom items such as dressers , wooden trunks , and mantelpieces. A fire destroys her entire operation and Lucille files a claim with her insurer. Which of the following would be covered under Coverage A of the Building and Personal Property Coverage Form in her commercial property policy? Claims - Made policy from Jan 1 2003 - Jan 1 2004 with a supplemental extended tail. - Answer- On January 27 , 2004 , Ryan was using an exercise bike from NusquamCycle when the chain broke , causing him to fall and bruise his knee. Seven years later , on January 25 , 2011 , Ryan's knee gave out while jogging. His doctor told him that he'll need surgery and that this deterioration was probably caused by his bruise from the exercise bike. Assuming NusquamCycle is no longer in business , which CGL policy would cover Ryan's claim filed on January 25 , 2011? Employee - Answer- David just opened his own consulting business , and has taken on several new clients. He's having difficulty managing his schedule on top of all the other responsibilities related to owning his own business , so he hires Tina via contract to work as his full - time office manager for $ 15 per hour. According to the definitions in David's Commercial General Liability policy , which of the following best describes Tina? A claims - made policy from Jan 31 2009 - Jan 31 2011 - Answer- chain broke , causing him to fall and severely three years later , on January 25 , On January 27 , 2008 , Ryan was using an exercise bike purchased from NusquamCycle when the bruise his knee. It seemed to heal just fine , but 2011 , Ryan's knee gave out while jogging. His doctor told him that he'll need surgery and that this deterioration resulted from the earlier accident with the exercise bike. Which of the following CGL policies may cover Ryan's claim filed January 25 , 2011? Dr. Adams ' insurer must seek her consent before settling the claim. - Answer- Dr. Adams is in the middle of a malpractice lawsuit. Her insurer decides it will be more cost effective to simply settle the suit rather than draw the process out over several months. Assuming Dr. Adams holds a Professional Liability Policy , which of the following statements is TRUE in regards to settling the claim? a clause that requires the insurance company to get approval from the insured before settling a claim. - Answer- The " Consent to Settle " clause in the Professional Liability policy is best described as : Collateral - Answer- Which of these is NOT a party to a surety bond? requires that every fiduciary of an employee benefit plan and every person who handles funds or other property of those plans must be bonded. - Answer- The Employee Retirement Income Security Act ( ERISA ) :

Usually Actual Cost Valuation - Answer- Which of the following is NOT a feature of a typical Business Owners Policy? 48 hours - Answer- The insured carries a BOP policy with protective systems such as a sprinkler system. If the system becomes inoperative , the insured must advise the insurance company of the problem within_____if the system cannot be restored to working order. $ 3 million. - Answer- A processing and servicing company would qualify for a BOP only if they have less than_____ in annual revenues. available with an endorsement. - Answer- In a garage policy , PIP coverage is : Symbol 8 - Answer- James is in the consulting business and frequently flies from city to city to meet clients and help them improve their business practices. Most cities have adequate public transit , but sometimes it's easier to rent a car. Which coverage symbol would specifically pertain to rental cars on James ' Business Auto Policy? theft of money or securities outside the insured premises in the care of a messenger. - Answer- All of the following are universal exclusions in a Commercial Crime policy , EXCEPT : Money Orders and Counterfeit Paper Currency : - Answer- Grant works at ABC Convenience. One day , a man pulls up in an expensive car and pays cash for his gas with a hundred dollar bill. Grant accepts the bill without checking its validity. When Grant's manager checks the bill later , he discovers it is a fake. Which commercial crime coverage could protect ABC Convenience from financial loss associated with accepting the fake hundred dollar bill? Equipment built to operate under internal pressure or vacuum - Answer- Which of the following may be covered under an Equipment Breakdown Protection Coverage Form? Losses are normally paid at replacement cost , but an insured may change this with an Actual Cash Value endorsement. - Answer- Which of the following BEST describes how covered losses are settled under a typical Equipment Breakdown Protection Coverage Form? Attend an NFIP claims presentation every 3 months - Answer- In order to adjust claims for the NFIP , adjusters must meet several requirements. Which of the following is NOT one of these requirements $ 115,000 - Answer- A flood inundates Howard's property , causing $ 100,000 of damage to the dwelling and $ 25,000 of damage to the detached garage. If Howard has a Dwelling Form flood policy with a $ 150,000 limit , how much will the policy pay for the damage to Howard's home and detached garage combined? ( Ignore deductible amounts. )

Be able to accurately adjust RCBAP losses of $ 1,000,000 or more. - Answer- Ken is getting his certification to adjust large commercial claims for the NFIP. Which of the following is NOT required of Ken in order to qualify for this certification? Flood insurance is always backed by the National Flood Insurance Program. - Answer- Which of these statements is true? Ron had been hauling a large boat , which overloaded the vehicle and caused the breakdown. - Answer- Ron's truck experiences a mechanical breakdown and he has it towed to an auto repair facility. Upon further examination of Ron's claim , his Mechanical Breakdown Insurance provider denies coverage. Which of the following would be a valid reason for this denial? To reduce your insurance costs - Answer- Which of the following is NOT a reason to purchase umbrella liability coverage? Excess liability insurance that " follows the base policy , but includes its own set of limitations and exclusions - Answer- Which statement BEST describes a stand alone excess liability policy? All Risk Form. - Answer- All of the following are types of Cargo Coverage in Ocean Marine insurance , EXCEPT : The vessel must not travel in stormy or otherwise dangerous weather conditions. - Answer- Which of the following does not describe one of the implied warranties of Ocean Marine Insurance? unvalued - Answer- Mark has an ocean marine insurance policy with cargo coverage. The type and value of his cargo varies from one shipment to the next , so rather than having a set value for this coverage , the amount of his settlement is only determined after a covered loss. Mark's cargo coverage is written on a / an _____basis. They have a $ 500 deductible. - Answer- Which statement about Personal Article Floaters is FALSE? An ice cream shop - Answer- Which of these businesses would be LEAST likely to need a bailee's customer floater? A trip transit policy - Answer- Anna's Rare Books in Birmingham needs to ship three F.Scott Fitzgerald first editions to a customer in Mobile. The combined value of the books is over $ 400,000. What type of Inland Marine insurance policy should Anna's Rare Books buy to cover this shipment? $ 1,800 - Answer- Melanie owns a set of 3 antique crystal vases that is worth $ 2,800 , but during her most recent move , one of the vases was broken. Melanie and her

insurer have been unable to find a replacement vase to complete the set and bring it back to its original value. Without the broken vase , the remainder of the set is only worth $ 1,000. Assuming she does not list her vases scheduled as fine art in her policy , what should Melanie receive from the insurer under the Pair and Set provision of her Personal Articles Floater? Logan should buy Bodily Injury Excluding Passengers and Property Damage Liability , but he doesn't need to spend the money on Passenger Bodily Injury Liability. - Answer- Logan has a small plane that he enjoys flying on the weekends , but he never takes friends or passengers with him. Which of the following is TRUE? Maureen is walking down the aisle of the airplane looking for an open window seat. - Answer- Which of the following persons is considered a passenger , and thus covered under passenger bodily injury liability? Depression due to job dissatisfaction - Answer- Workers ' compensation insurance is designed to provide employees financial protection against injuries that occur because of , or during the course of , employment related activities. Which of the following would NOT qualify as an " injury " under workers ' compensation insurance? 1 year old granddaughter living in deceased's household at time of death - Answer- Which of the following would qualify as a " Dependent Child " according to the Workers ' Compensation law? Permanent partial disability benefits - Answer- Brian has an accident at work in Alabama and loses, hearing in both of his ears, becoming permanently deaf. What kind of disability benefits will he most likely receive? Before workers ' compensation insurance , workers had no remedy for the normal risks inherent in their jobs. - Answer- Which of the following accurately summarizes the " assumption of risk " rule? 50 % of the deceased worker's Average Weekly Wage - Answer- Under the Longshore and Harbor Workers ' Compensation Act , how much would the surviving spouse of a deceased worker receive in benefits? It provides federal government insurance for civilian employees. - Answer- Which statement about the Federal Employees Compensation Act is TRUE? Hospital Indemnity insurance - Answer- Maria was in the hospital for five days, recovering from a stroke. The bill she received for her hospital stay broke down the charges for room, lab fees, meals, and nursing care. However her insurer paid a flat daily rate and she was left responsible for paying the remaining charges. what type of insurance does Maria have?

coinsurance payment. - Answer- According to Lonnie's health insurance policy , she is responsible for paying 15 % of all of her medical costs. This percentage is Lonnie's : Waiting period - Answer- Insurers often protect themselves from providing insurance to people who are already ill by inserting which type of clause into a health insurance contract? insurers. - Answer- Residual market insurance programs are funded by : 500,000 - Answer- The AIUA offers coverage for residential homes up to a maximum of _____for combined dwelling and contents. Business Interruption Coverage - Answer- A short circuit in one of the refrigeration that severely damaged the shop , and it had to shut down for two months while repairs were made. what a type of additional coverage would indemnify the ice queen for the loss income during this two months. Time element insurance - Answer- after a tornado severely damaged their building, the owners of ABC online marketing, have to rent another building for a few months while repairs are underway. Which additional coverage would help cover the cost of renting this other building. stock certificates - Answer- Which of the following would not be covered under valuable papers business insurance? Jillian should wait until Caroline seems emotionally stable before negotiating settlement

• Answer- Caroline was involved in a car accident in which her husband was killed. Jillian is adjusting the insurance claim. Which of the following is true? Janet failed to make a reasonable effort to protect the property from further damages. - Answer- Strong winds have torn a hole in Janet's roof. On top of that , heavy rain is expected in her area in the next few days. Figuring it would simply be too much effort to put a tarp over the hole in her roof , Janet elects to do nothing. The rains come and destroy several of her possessions inside her home. Janet files a claim with her insurer for the losses , but it comes back denied. This is because : $ 25,000 - Answer- Kelly took her eyes off the road and ended up smashing into the back of a passenger van. All five passengers were injured , and each one ended up with $ 25,000 in medical costs. Assuming Kelly has liability coverage with limits of 50/100/50 , how much will she have to pay out of pocket?