TEXAS ALL LINES ADJUSTER EXAM- 378 QUESTIONS WITH 100% CORRECT ANSWERS 2023, Exams of Nursing

Download TEXAS ALL LINES ADJUSTER EXAM- 378 QUESTIONS WITH 100% CORRECT ANSWERS 2023 and more Exams Nursing in PDF only on Docsity!

WITH 100% CORRECT ANSWERS 2023

Texas all lines adjuster exam | 378 Questions

with 100% Correct Answers

All of the following are criteria for an accident to have occurred "in the course of" the employment under a workers' compensation policy, EXCEPT: Correct Answer: While performing a task that a fellow worker requested, that was unusual to the employee's job description, but occurred on the employer's premises during working hours.

Which of the following statements is NOT TRUE regarding the implied warranties of an Ocean Marine policy? Correct Answer: The implied warranties are attached to the policy as an endorsement..

Parmelia is covered under two separate standardized Personal Automobile policies, with Part C limits under both policies set at $200,000. Parmelia is involved in an accident with an uninsured motorist and she sustains bodily injury damages for $262,320. How much will Parmelia receive when she submits a claim for these damages Correct Answer: $200,

Which of the following endorsements must be attached to a standard Businessowners policy for coverage to apply to a businesses freezer that was damaged by the interruption of a power source Correct Answer: Utility Services - Direct Damage endorsement.

After completing an inspection of an insured's pressure equipment and fire suppression systems, the inspector determines that the pressure equipment needs to be repaired and the suppression systems have not been cleaned and inspected in the time frame required by the policy. The insurer will: Correct Answer: Suspend coverage immediately by red tagging the items until they are repaired, cleaned and pass reinspection

To be eligible for coverage under a standardized Dwelling policy, the insured must not allow more than _______ boarders to live on the premises. Correct Answer: 5

All of the following are "Perils of the Sea" under an Ocean Marine policy, EXCEPT: Correct Answer: Pirates

The amount of insurance countersigned, issued, or sold by an agent or producer to cover immediate family members, an employer, or employees is known as: Correct Answer: Controlled business

Which of the following standardized Dwelling insurance forms provides coverage for loss of rental income Correct Answer: The DP-1, DP-2, and DP-3 forms

WITH 100% CORRECT ANSWERS 2023

The "Part B - Medical Payments" coverage of a personal automobile policy covers injuries for all of the following, EXCEPT: Correct Answer: A passenger who is injured in another vehicle that is struck by the insured's vehicle in an accident

Which of the following are the Texas Workers' Compensation benefits that are increased by a cost-of-living adjustment (COLAs) Correct Answer: Lifetime Income Benefits (LIBs) only

Hannah must take time away from work to help assist in the investigation of a claim that was made against her BOP policy. The policy will pay for Hannah's actual loss of earnings up to: Correct Answer: $250 per day.

Surplus Lines companies in Texas have _____ to acknowledge the receipt of a claim. Correct Answer: 30 days.

All of the following are characteristics of a principal that a surety will scrutinize during the underwriting process, EXCEPT: Correct Answer: Consideration.

Under Section II of a Homeowners policy, a cemetery plot owned by the insured is considered to be: Correct Answer: An insured location.

Which of the following is NOT one of the four major coverages of an Ocean Marine policy? Correct Answer: Seaworthiness.

A ship has suffered damage and sunk. Which of the following would respond to cover the loss of the ship? Correct Answer: Hull Insurance.

As a fiduciary agent, an adjuster has the power to bind the insurer. Which of the following statements is FALSE regarding this power? Correct Answer: Only an adjuster's written statements can legally bind an insurer.

The standardized Dwelling forms consider all eruptions of a volcano within a __________ period to be a single "occurrence". Correct Answer: 72-hour

Whose responsibility is it to complete a "proof of loss"? Correct Answer: The claimant.

Which of the following would NOT be determined by a court when an insurer has filed a declaratory judgment action? Correct Answer: The type and amount of damages that will be paid to a plaintiff for the claim that is being disputed.

Which of the following statements is TRUE regarding the Homeowners "additional coverage" known as Landlord's Furnishings? Correct Answer: The coverage is not additional insurance and does not increase the limits of the policy.

WITH 100% CORRECT ANSWERS 2023

Which of the following would be covered under the Jones Act? Correct Answer: Crew members of a ship.

All of the following statements are true regarding a Personal Liability Supplement, EXCEPT: Correct Answer: The policy will cover watercraft liability.

Which of the following statements is TRUE regarding Commercial Property coverage? Correct Answer: Commercial property coverage can be written as both a monoline policy and as part of a package policy.

What type of insurance is usually provided or subsidized by the state or federal government because it is not ordinarily available from private insurers? Correct Answer: Residual market insurance.

The optional coverage for "Employee Dishonesty" under a standard Businessowners policy provides a "discovery period" for the insured to discover the dishonest act and have coverage still apply. Which of the following statements best describes the "discovery period" for this optional coverage? Correct Answer: The "discovery period" is one year from the end of the policy period.

Which of the following would be considered an Unfair Claim Settlement Practice? Correct Answer: Failing to deny coverage of a claim within a reasonable amount of time after concluding the investigation

Which of the following is TRUE regarding the DP-2 Broad Form coverage for "artificially generated electrical current"? Correct Answer: A fire must be the result of the artificially generated electrical current for coverage to apply..

The Commercial Building and Personal Property coverage form provides five extensions of coverage, but only if: Correct Answer: An 80% or higher coinsurance percentage is shown on the Declarations page, and the property amount of coverage, based on that percentage, is purchased.

All of the following would be considered "uninsured motorists", EXCEPT: Correct Answer: A motorist driving with coverage up to the required state financial responsibility limits for liability, but not high enough to pay the claims for an at-fault accident.

Regulation of the insurance industry in the United States is primarily left to: Correct Answer: State governments.

Which of the following coverages does NOT need to be added to a Garage Coverage form by endorsement for coverage to apply? Correct Answer: Collision.

WITH 100% CORRECT ANSWERS 2023

Chaz takes his girlfriend to an expensive restaurant for Valentine's Day. It is raining, so he decides to have the valet park his car, saving his girlfriend from getting wet. The valet is driving the car into the restaurant's parking garage, when he clips the side of the garage entrance with the front fender of Chaz's car. The garage wall needs to be repaired as well as the fender and headlight of Chaz's car. How would Part D of Chaz's Personal Automobile respond to this loss? Correct Answer: It would cover the loss to Chaz's car because it is the insured automobile, but would not cover the damage to the garage..

Which of the following statements is TRUE regarding the coverage extension of the standard Businessowners policy for "Business Personal Property Temporarily in Portable Storage Units"? Correct Answer: Coverage will not apply if the storage unit has been on the insured premises for longer than 90 days, even if the business personal property has only been stored there for less than 90 days.

Which of the following would be considered a Part D - Other Than Collision claim under a Personal Automobile claim? Correct Answer: A load of bricks falling from an apartment building onto the car.

The Section I Additional Coverage of the standard Businessowners policy provides coverage for "Debris Removal". Which of the following statements best describes the limit for this coverage? Correct Answer: The total limit may be up to 25% of the policy limit for the loss payable with the deductible included, plus up to an additional $25,000 if the policy limits are exhausted

An agent, insured or claimant has intentionally deceived an insurer for financial gain. Such an act is known as: Correct Answer: Fraud

Which of the following losses would be covered under a Commercial Property policy with the special cause of loss form attached? Correct Answer: A fire that breaks out in an office building and causes damage to two of the offices..

If the Navigational Limits or Lay-Up period shown on the Declarations page of a standardized Yacht policy is breached because of something out of the control of the insured: Correct Answer: The insurer must be notified within 10 days after the breach and any additional premium that is due must be paid.

Which of the following is NOT eligible for a coverage under a Homeowners insurance policy? Correct Answer: Owner-occupants of a 5 to 6-family dwelling

Cameron has his home covered under a Homeowners policy and his limit for bodily injury is $100,000. He also purchased a Personal Umbrella policy with a $1,000,000 limit of liability. Cameron is sued and a judgement was made against him for $500,000. To trigger his Umbrella policy, his Homeowners policy must pay $100,000, but he finds that the insurance company from which he purchased his Homeowners policy has become insolvent. How will the Umbrella insurer pay the claim (disregarding any retention limit)? Correct Answer: The Umbrella policy

WITH 100% CORRECT ANSWERS 2023

will not become primary when the insurer carrying the underlying insurance becomes insolvent, but will pay the $400,000 as if the underlying insurer had paid its $100,000 limit of liability..

The additional coverage for debris removal under the standardized Building and Personal Property coverage form will only be paid if: Correct Answer: The insured reports the debris removal expenses to the insurance company in writing within 180 days of the loss..

The insured is covered under a Watercraft policy and asks the agent about a lay-up period credit to get a reduction in the premium. The dates of the lay-up period are specified in the policy. There is an emergency and the insured must use his boat in a life saving event. The boat is damaged and sinks. Under what circumstances would coverage apply? Correct Answer: Only if the insurance company is notified within 10 days of the emergency use

Which of the following coverage parts would be eligible for inclusion in a Commercial Package policy? Correct Answer: Professional liability coverage.

When an insurer files a declaratory judgement action with a court of law, all of the following questions will be resolved by the court, EXCEPT: Correct Answer: Will the insurer become insolvent if they pay the claim as submitted by the insured?

An insured is covered under a CGL policy. He would like to purchase another policy to increase the limits of insurance for his commercial liability exposures. Which of the following statements is correct regarding the insured's situation? Correct Answer: The insured may purchase either a Commercial Umbrella or an Excess Liability policy to increase his liability insurance limits..

Which of the following statements defines a "bailee"? Correct Answer: Someone, other than the insured, to whom the insured property is entrusted temporarily.

The crew of a ship is guilty of fraud with the intention of reaping gains at the expense of the owner. In ocean marine coverage, what is this called? Correct Answer: Barratry.

Symbol 23 is designated on the insured's Garage Coverage form. This indicates that: Correct Answer: That owned private passenger autos only are covered..

An applicant fails to disclose known facts when completing an application for insurance. This act is known as: Correct Answer: Concealment

All of the following are correct statements regarding the limits of liability under Part A of a Personal Auto policy, EXCEPT: Correct Answer: When the Part A limits are exhausted, any limits for Uninsured Motorists coverage can be used to pay the entire claim..

If a covered business is a limited liability company, the standard Businessowners policy provides coverage for all of the following "insureds", EXCEPT: Correct Answer: Executive director..

WITH 100% CORRECT ANSWERS 2023

The HO-3 form insures for direct physical loss to covered property involving collapse of a building caused by all of the following, EXCEPT: Correct Answer: Settling.

All of the following statements are TRUE if Builders' Risk coverage is written on a completed value basis, EXCEPT Correct Answer: All premiums must be paid up front before construction can begin..

A non-waiver agreement allows the insurer to: Correct Answer: Investigate a loss without implying that it is covered

Which of the following sections of an Ocean Marine policy is very similar to the "Duties of the Insured" in other property policies? Correct Answer: The Sue and Labor clause

Coverage under a standard Personal Watercraft policy extends to all of the following, EXCEPT: Correct Answer: The crew of the boat for medical payments

Loss to insured property caused by self-propelled missiles is covered under which of the following perils of the Homeowners form? Correct Answer: Aircraft.

The importance of an "Insured or Witness Investigation" is that: Correct Answer: Obtaining their statements is very important in determining who is liable

Which of the following basic coverages are provided under a Standard Fire policy? Correct Answer: Fire, lightning and removal..

All of the following statements regarding the Commercial Package Policy are correct, EXCEPT: Correct Answer: Commercial Package Policies can include Ocean Marine and Aviation Insurance coverage..

Ellen's automobile is stolen. The theft is properly reported to the police and the insurance company. She rents a car for two months. Which of the following would apply for the rental car? Correct Answer: After a waiting period of 48 hours, her policy will pay $20 per day up to a maximum of $

The insured carries an unendorsed DP-3 dwelling policy on his home and personal contents. While traveling abroad someone broke into the home and stole $200 in cash, a shotgun valued at $1,000, and other household items valued at $2,000. Damage caused by the burglars is $1,500. Assuming no deductible applies to their coverage how much would be paid? Correct Answer: $1,

If the disability for a worker in Texas continues for more than one week, weekly income benefits begin to accrue: Correct Answer: On the 8th day after the disability began

WITH 100% CORRECT ANSWERS 2023

Which of the following is NOT an "alternative dispute resolution" (ADR) used to deal with coverage disputes in the claim settlement process? Correct Answer: Litigation

Mike purchased a policy several years ago to cover him for liability. Last year, Mike determined that the limits of his liability policy were not high enough to cover him adequately should a loss occur, so he purchases an excess liability policy to provide more coverage. Mike experiences a loss, and discovers that his underlying liability policy had expired before the loss, but his excess liability policy is still in effect. How will this loss be paid? Correct Answer: It will be denied, due to nonconcurrency.

Workers' compensation insurance premium rates are typically affected by each of the following factors, EXCEPT: Correct Answer: The company's current profit or loss.

An insured's boat is struck by another boat. He and his family are injured. His boat sinks because of the damage. An investigation determines that the party that caused the accident is not insured. If the insured carries a watercraft policy, what coverages would apply? Correct Answer: Uninsured boater's coverage and hull insurance.

Catherine suffered a covered cause of loss that resulted in water in her basement along with other damage. Alan, an adjuster for Binders Keepers Insurance, tells Catherine to immediately have the water damaged carpeting and wall paneling removed from her basement, so that mold will not cause further damage. Alan then begins the process of identifying coverage under the policy and finds that the water damage is not covered. Which of the following statements is TRUE regarding this claim? Correct Answer: Because Alan told Catherine to remove the carpeting and paneling before he checked the coverage, he waived the right of Binders Keepers to deny the claim..

Which of the following is NOT TRUE regarding surety bonds? Correct Answer: They are an agreement that in exchange for a premium, the surety will indemnify the obligee..

The insured carries a Personal Auto policy and a Personal Umbrella policy. In case of a loss, how would the policies respond to pay a covered claim? Correct Answer: The Personal Auto policy would be the primary and would pay up to the policy limits, then the Umbrella policy would be excess to pay up to its policy limits.

George went out for target practice one day with his handgun. He has practiced many times with the same target located in the woods behind his house. Unbeknownst to George, a neighbor was walking in the woods behind the target one day and was shot in the leg by George. Intentional acts are never covered by insurance, however, the claim filed by the injured neighbor may be covered under George's liability coverage. Which of the following is the most likely reason why? Correct Answer: Shooting the gun was an intentional act committed by George, but the consequences of act (his neighbor being shot) were not intended.

WITH 100% CORRECT ANSWERS 2023

Acme Corp. requested three bids from different contractors for the construction of its new office building. Acme accepted the lowest bid from Corbett's Contracting and entered into a contract to have the office building constructed. After construction was completed, Corbett's presented Acme with a bill for construction costs over and above the amount of the bid that was agreed to in the contract. Which of the following types of bonds would protect Acme from paying the additional costs? Correct Answer: A performance bond.

Which of the following are NOT required to hold an adjuster license in Texas? Correct Answer: A person who works for an insurer and adjusts claims on losses that do not exceed $

Which of the following is NOT covered under aircraft physical damage (hull) insurance? Correct Answer: Personal effects.

An insured submits a claim to the insurer and their adjuster acknowledges receipt of the claim. The insured then hears nothing more after making repeated attempts to contact the adjuster. This is considered: Correct Answer: An unfair claims settlement practice.

Which of the following best describes an "insurance producer"? Correct Answer: Someone who represents an insurance company in the soliciting and negotiation of insurance.

When insurance is written on a Dwelling form, each of the following types of property would be insured under Coverage A, EXCEPT: Correct Answer: A detached garage.

The Garage Coverage form can be used to cover dealers that sell all of the following, EXCEPT: Correct Answer: Jet skis.

Ocean marine coverage for losses to the insured vessel caused by bursting boilers, latent defects in the vessel and negligence of the master or crew members are addressed by which of the following? Correct Answer: The Inchmaree clause.

The part of a standard workers' compensation policy that contains the cancellation procedures is: Correct Answer: Part Six - Conditions

The 1943 New York Standard Fire policy specifically excludes all of the following, EXCEPT: Correct Answer: Manuscripts.

The standard Personal Automobile policy provisions state that the insurance company has subrogation rights against any person permitted to use a covered auto, under all coverages, EXCEPT: Correct Answer: Part D.

Max was injured on the job in Texas. Max has reached MMI but will have a permanent limp while walking that was due to the compensable injury. Which of the following terms as defined by the Texas Workers Compensation code best describes how Max's injury will be classified? Correct Answer: Max's injury is now classified as an "impairment".

WITH 100% CORRECT ANSWERS 2023

All of the following is a function of the standard mortgage clause in a property insurance policy, EXCEPT: Correct Answer: Guarantees that the mortgage payments will be made by an insurance policy, if the insured does not make the payments..

The insured has liability coverage with a limit of $300,000 per occurrence. She purchases a $ million Personal Umbrella to extend and broaden her coverage. The Umbrella policy includes a $10,000 retained limit. The insured becomes liable for $800,000 in damages that are excluded by the underlying liability policy, but is covered by the Umbrella policy. How would this case likely be settled? Correct Answer: The insured would pay $10,000 and the Umbrella policy would pay $790,000.

Insurance adjusters have the "power to bind". Which of the following statements best describes what this means? Correct Answer: The principal is bound to the decisions of the adjuster.

Which of the following types of bonds guarantees that all project materials will be paid in full by the contractor upon completion of the project? Correct Answer: Payment bond.

Which of the following is NOT a "duty of the insured" after a loss? Correct Answer: To pay damages to any third-party claimant while waiting to be reimbursed by the insurer for the loss.

All of the following are perils NOT typically covered by property cause of loss forms, EXCEPT: Correct Answer: Hail

What is the minimum limit for Coverage L of the Personal Liability Supplement that can be attached to a Dwelling Property policy? Correct Answer: $100,

The "Medical Payments" section of the standard Yacht policy will provide coverage for all of the following, EXCEPT: Correct Answer: A scuba diving accident when diving from the insured boat..

Which of the following coverages would NOT be included in the liability section of the Businessowners policy? Correct Answer: Professional liability.

An insured owns a set of six drawing pens designed and used by Benjamin Franklin. Each pen is worth $1,000 alone, but the set is worth $12,000. One pen is destroyed by a covered peril. Under the pair or set clause the insurance company will pay a maximum of which of the following amounts? Correct Answer: $7,

Economic loss that is the consequence of a direct loss is known as: Correct Answer: An indirect loss.

Which of the following is NOT TRUE of coverage for Business Personal Property and Personal Property of Others in a Commercial Property policy? Correct Answer: Coverage is provided

WITH 100% CORRECT ANSWERS 2023

while the property is located within a covered vehicle at any location as long as the vehicle is owned by the insured business.

As a condition to gain entrance into Louisiana to conduct insurance business, a Texas domestic insurer makes a deposit with the Texas Comptroller. The amount of the deposit is sufficient to satisfy the Louisiana Department that the insurer can cover the claims submitted by the insureds in Louisiana. Who has jurisdiction to collect taxes on the interest earned on this deposit? Correct Answer: The county and municipality in Texas where the principal business office of the insurer making the deposit is fixed by the insurer's charter.

Which of the following would be considered an "incidental occupancy" under a Homeowners policy? Correct Answer: An art studio located in the named insured's home, where she also holds occasional painting classes.

Scott lives in Texas and has submitted a claim to his insurance company. He has received notice from the insurer that the claim is covered under the policy and they will be paying the claim. How long does the insurer have to pay Scott's claim according to Texas law? Correct Answer: Not later than the fifth business day after the notice was made.

All of the following are duties that a Texas insurer must perform within 15 days after receipt of the claim, EXCEPT: Correct Answer: Schedule a hearing to dispute the claim, if necessary.

Which of the following is NOT a claim settlement option for liability claims? Correct Answer: Excessive amounts claimed.

Mason has suffered a $42,000 loss to his commercial building due to fire. The building is covered under the Building & Personal Property coverage form and had been vacant for 74 days. The insurer would have paid the entire loss if the building had been occupied, but what will they pay because the insured building was considered vacant? Correct Answer: $35,700.

Julius has selected the "Maximum Period of Indemnity" optional coverage of the Business Income form. Which of the following statements is TRUE regarding how a loss will be paid if this option is selected? Correct Answer: The most the insurer will pay for the total loss of business income and extra expense is the amount of the loss sustained during the 120 days immediately following the period of restoration or the limit scheduled on the declarations page, whichever is less..

The "Medical Payments" coverage of the standard Yacht policy covers all medical expenses incurred by an insured, family members, invitees, or guests if a claim is submitted: Correct Answer: Within 1 year following a covered accident.

Many stationary objects, such as bridges, tunnels and power lines fall within the nationwide marine definition because they are considered to be: Correct Answer: Instrumentalities of transportation and communication.

WITH 100% CORRECT ANSWERS 2023

A claim is made on an excess liability policy. It is discovered during the claims investigation, that the underlying liability policy and the excess liability policy have different inception and expiration dates. The adjuster finds that the different dates has created a situation where the underlying policy was not in effect at the time of the occurrence, and therefore cannot trigger the excess liability policy to pay the claim. This situation is known as: Correct Answer: Nonconcurrency.

An "other insurance" clause is included in insurance policies to deal with the problem of: Correct Answer: Overinsurance.

Under the DP-3 special form, which of the following losses would NOT be covered? Correct Answer: Damage to the dwelling that is caused by an infestation of mice..

Ellie's Engineering, Inc. has several warehouses and it is necessary for employees to transport different items between the warehouses, depending on what products are being manufactured at any given time. One day Bill, Karen, and Josh were required to load several containers of an explosive chemical onto a truck to transport it across town to another warehouse. Karen knew that the chemical must be handled carefully to prevent it from exploding, but she did not refuse to move the containers nor did she indicate to Bill and Josh that the chemical was dangerous. After loading the containers, Josh is moving the truck out of the loading zone and negligently backs it into a brick wall, causing an explosion, injuring all three workers. Bill died from the injuries several days after the accident. Which of the following statements most accurately describes the common law defense(s) that Ellie's Engineering might use to defend themselves against a lawsuit filed by Karen? Correct Answer: The assumption of risk and the fellow worker doctrine only..

The purpose of the Expediting Expenses coverage of a standard Equipment Breakdown policy is: Correct Answer: To pay for the extra expense of having equipment repairs performed faster to get the insured back in business quickly.

Which of the following would be excluded under Part A of the Personal Auto policy? Correct Answer: A person transports people from the airport to nearby hotels for a fee..

A Texas insurer has notified a claimant that all or part of a claim will be paid. The claim must be paid not later than the ____ business day after the date notice is made. Correct Answer: 5th

The type of auto body frame that is most often used in today's automobile and is a single molded unit, is known as: Correct Answer: A unibody frame.

A contractor in need of a bid bond to obtain a contract is an example of a(n): Correct Answer: Principal.

WITH 100% CORRECT ANSWERS 2023

When loss settlement under a policy is the "agreed value", which of the following is true? Correct Answer: The insurer will pay the value that was agreed upon and scheduled in the policy.

The "control of property" condition of the Commercial Property policy: Correct Answer: States that a negligent act of someone beyond the insured's direction or control will not affect the coverage..

The insured has liability coverage with a limit of $300,000 per occurrence. She purchases a $ million Personal Umbrella policy to extend and broaden her coverage. The Umbrella policy includes a $10,000 retained limit. The insured becomes liable for $800,000 in damages that are excluded by the underlying liability policy, but is covered by the Umbrella policy. How would this claim likely be settled? Correct Answer: The insured would pay $10,000 and the Umbrella policy would pay $790,000.

The aircraft physical damage (hull) deductible is normally expressed as: Correct Answer: A percentage of the value of the aircraft.

Ally's insurance agency has contracted with Indemnify Insurance to sell only those insurance products offered by Indemnify. Ally's is utilizing which of the following types of insurance marketing and distribution systems? Correct Answer: Exclusive agency system.

In which of the following situations would trees, shrubs, and other plants be covered by the Homeowners additional coverages? Correct Answer: The insured's fruit trees are destroyed when an ember from a nearby brush fire lands on them and burns them.

Aircraft liability coverage is very similar to auto insurance coverage with which of following exceptions? Correct Answer: Liability to passengers is treated as a separate exposure.

All of the following would be eligible as "your covered auto" under a standard personal automobile policy, EXCEPT: Correct Answer: A motorcycle owned by the insured.

All of the following are eligible risks for Commercial Inland Marine insurance, EXCEPT: Correct Answer: Goods manufactured in the United States for export to other countries.

Which of the following would be covered under Coverage B of the Business and Personal Property coverage form? Correct Answer: The stock held for sale by the insured business.

The "Business Income" additional coverage under the standard Businessowners policy includes all of the following in its definition of "ordinary payroll expenses", EXCEPT: Correct Answer: Executive payroll..

Coverage D - Loss of Use on the Homeowners forms provides coverage for "Civil Authority Prohibits Use" for: Correct Answer: No more than two weeks..

WITH 100% CORRECT ANSWERS 2023

When a claims representative is collecting information from a third-party claimant, which of the following is the information that should be obtained first? Correct Answer: The nature and extent of the injuries or property damage claimed.

Which of the following would be considered "economic losses" that could result in compensatory damages being awarded in a negligence case? Correct Answer: Medical expense and lost wages.

A structure made of modified fire resistive materials has a fire resistive rating of: Correct Answer: At least 1 hour.

A Commercial Property policy has the "Protective Safeguards endorsement attached indicating that the insured has protective safeguards installed such as a sprinkler system. Should the system become inoperative, how long does the insured have to report this fact to the insurer? Correct Answer: 48 hours.

Under a DP-2 or DP-3 standardized policy what is the maximum that would be paid for one month for additional living expenses if Coverage A was $75,000? Correct Answer: $1,

Alec goes to an amusement park and rides a roller coaster that was designed to flip the riders upside down. Alec is taller than the average person so when the roller coaster flips, he hits his head on the safety bar. After receiving medical care, Alec files a claim against the amusement park, seeking payment for his medical bills, pain and suffering. What defense against negligence would the amusement park most likely use to deny this claim? Correct Answer: Assumption of risk

The type of claims investigation that looks at the possibility of a third-party being responsible for the loss is known as: Correct Answer: A subrogation investigation.

The Commercial Property condition known as "Concealment, Misrepresentation, or Fraud" calls for the policy: Correct Answer: To be voided???

Which of the following Equipment Breakdown coverages applies to direct damage to covered property located at a premises described in the Declarations? Correct Answer: Property damage coverage.

Which of the following lost or damaged property is NOT covered when the Actual Cash Value endorsement is attached to an Equipment Breakdown policy? Correct Answer: Property that has reached obsolescence.

The Part B - Medical Payments coverage under a standard Personal Auto policy will cover the insured if he/she is injured while a passenger on a: Correct Answer: Bus.

WITH 100% CORRECT ANSWERS 2023

Garagekeeper's liability coverage excludes all of the following losses, EXCEPT: Correct Answer: Loss to a high-value audio system permanently installed in a covered auto.

Sally Roe's vehicle is rear-ended by John Doe. Sally and John are good friends. Sally tells John not to worry about the damage. She says she has insurance and will tell her insurance company to pay for the damage. She will waive her subrogation right so that John won't have to pay anything. Her insurer will: Correct Answer: Proceed with subrogation against John Doe and will not honor the waiver..

All of the following are a "cause of loss" form, EXCEPT: Correct Answer: Comprehensive.

For a workers' compensation claim to be compensable, the injury suffered by the employee must meet all of the following criteria, EXCEPT: Correct Answer: Must have occurred on the employer's premises.

Part One of the NCCI standard workers' compensation policy specifies the: Correct Answer: Statutory provisions of the policy.

Risk is best defined as: Correct Answer: An uncertainty of loss.

The insured has his home insured on a HO-2 policy. Lightning has struck the home and causes a fire. The insured takes as much personal property out of the house as possible while waiting for the fire department to arrive and extinguish the fire. The insured and some of his neighbors damage some of the property while moving it to safety in the back of a pickup truck not owned by the insured. What additional coverage would cover this damage to the insured's personal property? Correct Answer: Property Removed.

When would the Personal Auto policy respond to a loss with an all-terrain three-wheeled vehicle? Correct Answer: When used in an emergency situation.

Which of the following is a true statement regarding the "law of large numbers"? Correct Answer: As the number of insured units increases, the ability to predict losses increases.

A surety bond is: Correct Answer: A form of credit.

All of the following would be considered an "insured" on a Homeowners policy, EXCEPT: Correct Answer: A non-related tenant living in the insured residence..

In order to qualify for a surety bond there are times the principal must have another party sign the agreement. This party agrees to reimburse the surety if the principal defaults. This party is known as: Correct Answer: An indemnitor.

WITH 100% CORRECT ANSWERS 2023

Henrietta has purchased a Personal Automobile policy and she sees the following under Part A:$25,000/$50,000/$30,000Which of the following statements is TRUE regarding these numbers? Correct Answer: $30,000 represents the limit for property damage liability.

Return-to-work coordination services for injured workers in Texas may include which of the following:I. Job analysis to identify the physical demands of a job.II. Job modification and restructuring assessments to match job requirements with the employee's functional capacity.III. Medical or vocational case management to coordinate the efforts of the employer, the treating doctor, and the injured employee to help him/her return to work as soon as possible.IV. Employment search and matching of the injured employee's skills with jobs that have been advertised as open on a nationwide basis. Correct Answer: I, II and III only

Collin suffered a work-related injury on the morning of June 2nd and was off work completely until he returned to work on full duty on June 20th. Collin had worked for his employer for four years and was paid $55,650 per year. Collin's state sets the TTD rate at 70% percent of the average weekly wage. The state sets the maximum compensation rate at $580 per week and the waiting period at 5 days retroactive after 7 days. Collin was not paid for working on February 5th. Collin's average weekly wage is approximately ____ and the amount of compensation benefits he will receive per week while off work is approximately ____. Correct Answer: $1, / $

Which of the following statements is NOT TRUE regarding the "period of restoration" for Business Income and Extra Expense coverage? Correct Answer: The period of restoration ends when the policy period ends.

Part F of the standard Personal Automobile policy states that the policy can be terminated within the first 60 days for any reason other than non-payment of premium if: Correct Answer: At least 20-days' notice is provided to the insured..

Hannah is attending college and her family carries an HO-4 policy with $50,000 contents coverage. Hannah has about $15,000 of personal belongings consisting of clothing, musical instruments, electronic equipment, some appliances and other personal items in her dorm room. Which of the following statements is correct regarding coverage for Hannah's belongings? Correct Answer: The HO-4 form carried by Hannah's family would not provide enough coverage for Hannah's property, therefore a personal property floater should be purchased.

An insured's car is damaged in an auto accident. While it is being repaired, the body shop loans the insured a replacement. From a coverage standpoint, this replacement vehicle is known as: Correct Answer: A temporary substitute???

If an insured carries Coverage C under a Dwelling policy, how much coverage applies off the insured premises (world-wide basis)? Correct Answer: 10% of the Coverage C limit.

WITH 100% CORRECT ANSWERS 2023

Part B of the personal automobile policy provides coverage, regardless of fault, for necessary medical and funeral expenses incurred within how many years of the date of the injury? Correct Answer: 3

Katherine lives in Texas. A third-party claim has been filed against her insurance policy by Joe, for an accident in which Katherine was liable. Joe's attorney contacts Katherine's insurance company and makes an initial offer to settle the claim. The insurance company must notify Katherine of the offer, in writing: Correct Answer: Not later than the 10th day after the date the initial offer was made.

Texas insurance licensees must complete _____ hours of continuing education each reporting period. Correct Answer: 24

A home is insured under an HO-3 policy. One of the "other structures" on the same property is used by the insured for his business. The building burns in a fire. It would: Correct Answer: Not be covered because buildings used for business purposes are excluded..

What is the main purpose of government regulation of the insurance industry? Correct Answer: To protect the insurance consuming public.

All of the following are duties of the insured after a loss, EXCEPT: Correct Answer: To provide the insurer with the amount they expect to be paid for the claim submitted.

On a standard BOP policy, all of the following items have a limitation on the coverage amount if the cause of loss is theft, EXCEPT: Correct Answer: Computers.

Sally's home is covered under an HO-3 policy. Coverage F of that policy will pay medical expenses for which of the following? Correct Answer: Anyone who is invited onto Sally's property and is injured while there.

James owns a sedan, a truck, and an SUV. He carries Part C -- Uninsured Motorist Coverage on his SUV, but does not carry it on his sedan or truck. James' son is driving the truck one afternoon and accidentally strikes James who is driving the SUV, causing James to sustain bodily injury. How will Part C apply in this situation? Correct Answer: No coverage will apply for James' bodily injury..

Which of the following would NOT be included in an adjuster's initial / field / preliminary report? Correct Answer: The results of mediation.

An insurance company is given a C++ rating by A.M. Best. This means: Correct Answer: The financial health of the insurance company is good..

Which of the following is one of the duties of the insured as specified in a Commercial Inland Marine policy? Correct Answer: Submit to an examination under oath if the insurer requests it.

WITH 100% CORRECT ANSWERS 2023

If the insured purchases a new aircraft to replace a scheduled aircraft, there is automatic coverage provided the insurance company is notified within ______ days of the purchase and premium payment is made. Correct Answer: 30

The giving up of a known right is called: Correct Answer: waiver

Which of the following is the best definition of "fire"? Correct Answer: Combustion, accompanied by visible light.

Which of the following is not an "additional coverage" under Homeowners Liability -- Section II coverage? Correct Answer: Damage to "property owned by the insured"..

Which coverage of a Homeowners policy would pay for damage to a neighbor's window caused by the insured? Correct Answer: Coverage E

On the way to Europe, heavy seas place a cargo ship in danger of sinking. The crew decides that if they dispose of the heavy equipment they are hauling the ship will not sink. They toss overboard 10 tractors owned by John Deere. The cartons of tissues owned by Kleenex Corporation are safe as is the whipped marshmallow cream being shipped for Kraft Foods. When they get to Europe, Kleenex and Kraft are asked to share in the loss that John Deere sustained. This is an example of: Correct Answer: General Average Clause.

Brian owns a home that is covered by a DP-3 form. He rents this home to Taylor. Joe, the neighbor who lives next door to Brian's rental home, has been cooking methamphetamine for quite some time and selling it out of his house. One afternoon, Joe's "meth lab" exploded, spreading dangerous chemical to the houses around his. It also caused a fire that rendered the house unstable until it can be demolished. The civil authorities in the area have required that Taylor vacate her rental home, until the area next door can be cleaned up. Which of the following statements is true regarding how Brian will be compensated under his Dwelling policy for the loss of Taylor's rent during the time she must live elsewhere? Correct Answer: Brian will receive 20% of the Coverage A limit, for a maximum of 2 weeks.

Which of the following best characterizes the difference between captive agents and independent agents? Correct Answer: Independent agents can represent more than one insurer, whereas captive agents represent only one insurer.

The additional coverage of the Commercial Property cause of loss forms known as the "Limited Coverage for Fungus, Wet Rot, Dry Rot, and Bacteria" provides: Correct Answer: $15, coverage for all occurrences within a 12-month period.

All of the following are duties of the insurer in case of a loss as specified by insurance policies, EXCEPT: Correct Answer: To pay amounts to the insured or a third-party claimant that are at least as high as the national average of similar claim settlements.

WITH 100% CORRECT ANSWERS 2023

The HO-7 form is a rarely used form that covers: Correct Answer: Mobile and Manufactured Homes for property damage and liability.

Which of the following best demonstrates a morale hazard? Correct Answer: A recent purchaser of auto insurance drives less carefully, knowing that the insurer will cover any losses that occur..

Coverage under the Builders' Risk form is written for: Correct Answer: A period of one year.

All of the following items are given a "special limit of liability" under Coverage C of the Homeowners policies, EXCEPT: Correct Answer: Motorized land vehicles.

Lara is moving to Europe for two years in order to take advantage of a promotion at her job. She will not take her 4-seat propeller plane with her. What type of Aviation policy would be best for Lara to purchase for coverage on her plane while it is in storage and she is in Europe? Correct Answer: All Risks - Not in Motion.

An insured who is covered under a Commercial Property policy with the Building and Personal Property Coverage form attached, suffers a loss to business personal property. The insurance company has paid the claim, but now the property has been recovered. All of the following statements are TRUE regarding how this situation should be handled according to the form, EXCEPT: Correct Answer: The insured must incur any expenses to recover the property.

Which of the following best describes how the peril of "theft" is covered under the 1943 New York Standard Fire policy? Correct Answer: Theft is a covered peril under the removal coverage.

Spencer is covered under a standard Personal Automobile policy with a policy inception date of October 15th. Additionally, the policy will expire on October 15th of the current year. Spencer contacts his agent on October 7th and asks to have an new endorsement added to his policy. The agent agrees, adds the coverage the same day, and informs Spencer that there will be an additional premium of $20 per month charged. When will the adjustment of premium be effective for Spencer? Correct Answer: October 7th.

Which of the following claims would NOT be covered under Section II -- Liability of a Homeowners policy? Correct Answer: The named insured files a claim for damage to his house caused by his dog.

The standard Businessowners policy extension of coverage for "Outdoor Property" provides ________ of coverage for any one tree, shrub, or plant that has been destroyed due to a covered cause of loss. Correct Answer: $

Which of the following types of coverages are included in the standardized Businessowners policy? Correct Answer: Coverage for business personal property.

WITH 100% CORRECT ANSWERS 2023

An adjuster has uncovered some discrepancies in matters pertaining to a claim, and is unable to contact the insured to discuss these matters. What should the adjuster do in this situation? Correct Answer: Send a reservation of rights letter to the insured's last known address.

Which of the following situations would NOT be considered an unfair claim settlement practice according to the NAIC Model Act? Correct Answer: Indemnify Insurance pays thousands of claims per year, but on two of those claims they failed to accept or deny the claim within the time frame required by state law.

Morton loses control of his car and hits Jordan's car that was parked legally along the street where Morton was driving. The damage to Jordan's car is covered by which coverage of Morton's personal automobile policy? Correct Answer: Part A -- Liability

Which of the following contractors would be eligible for a Businessowners policy? Correct Answer: A carpenter doing all of his own work building kitchen cabinets in people's homes and earns $75,000 per year.

An insured who had a $500,000 primary liability policy purchased a $1 million Umbrella liability policy with a $2,000 self-insured retention limit. Later, the insured allowed the required underlying primary policy with a limit of $500,000 to expire. A week after that, the insured became liable for a $100,000 loss that is not excluded by the provisions of either the primary underlying liability policy or the Umbrella policy. How will this loss likely be settled? Correct Answer: The insured will be liable for the full $100,000 loss.

An insured has a $2 million limit of insurance under a Personal Umbrella policy with a $2, self-insured retention limit. The insured is sued for $1 million in personal injury damages and $1.5 million in property damages arising from the same occurrence. The insured's underlying liability policies exclude coverage in this case, but the claim is covered under the Umbrella policy. In this case, the umbrella policy will pay: Correct Answer: $1,998,000 of the damages.

At which step in the adjusting process does the adjuster determine "who" or "what" is insured by the policy under which the claim was submitted? Correct Answer: Verification of coverage.

Which of the following statements is TRUE regarding an "examination under oath"? Correct Answer: An EUO will only be requested by an insurer if they have reason to believe an insured has not been truthful in their account of the circumstances of the loss.

In regards to Workers Compensation insurance, which of the following experience modification factors would indicate that an insured has sustained a relatively high frequency and severity of losses in the recent past? Correct Answer: 1.

In insurance terms, the phrase "severability of insurance" means: Correct Answer: The insurance applies separately to each insured.

WITH 100% CORRECT ANSWERS 2023

Which of the garage policy coverages will pay for physical damage to a garage customer's auto regardless of legal liability? Correct Answer: Garagekeepers direct primary coverage.

All of the following statements are true regarding the revocation or modification of a certificate of authority in Texas, EXCEPT: Correct Answer: The reason for the revocation or modification is not required to be stated in the notice to the insurer.

Each of the following is considered to be an "implied warranty" in an Ocean Marine insurance policy, EXCEPT: Correct Answer: General Average.

All of the following are listed in the common declarations of a Commercial Package policy (CPP), EXCEPT: Correct Answer: A list of perils insured against.

Jim Johnson has an automobile policy with a combined single limit of $50,000. He is involved in an accident where he is at-fault and incurs the following expenses:$30,000 bodily injury judgment;$30,000 property damage judgment;$5,000 damage to traffic light;$6,000 attorney's fees for his defense;$300 in premiums for appeal bond; and$75 in bail bond premiums for related traffic violations.What is the maximum amount his insurance company will pay? Correct Answer: $56,

Under a standardized DP-2 or DP-3 policy, what is the maximum that would be paid for additional living expenses if Coverage A was $60,000? Correct Answer: $12,

A dead tree beside Jerry's home is best described as which of the following types of hazards? Correct Answer: Physical hazard.

Chris is insured through Binders Keepers Insurance Company and his policy period ends in 12 months. However, Chris has decided that he wants to cancel his policy in order to purchase another one from a company that advertises with cute commercials on television. Chris calls his agent to cancel the policy and is informed that the unearned premium (UEP) on the cancelled policy will be returned to him by mail in a couple of weeks. When Chris receives the check, he is surprised to find that it's made out for less than the amount of unearned premium he should have received. What is the most likely reason for this? Correct Answer: Chris' policy had a provision stating that UEP must be returned on a short-rate basis

In Texas, a doctor must certify that an injured employee has reached Maximum Medical Improvement (MMI) and will assign an impairment rating (IR) for the percentage of permanent impairment that the injured worker has experienced by using the rating criteria: Correct Answer: From the 4th edition of the American Medical Association (AMA) Guides to the Evaluation of Permanent Impairment

The limit of a bond is known as its: Correct Answer: Bond penalty.

WITH 100% CORRECT ANSWERS 2023

Which of the following serves as a deterrent for an insured to cancel an insurance policy before its expiration date? Correct Answer: A short-rate penalty deducted from the unearned premium..

Which of the following would be covered by Section I of the Businessowners policy? Correct Answer: The seizure of the insured's building by the civil authorities in order to stop the spread of fire.

Which of the following protects against legal liability for loss or damage to baggage? Correct Answer: Cargo Liability coverage.

Which of the following coverages is included as "no-fault" coverage on the standardized Personal Auto policy? Correct Answer: Medical Payments and Physical Damage.

Which of the following types of insurance companies is a non-profit organization? Correct Answer: A fraternal benefit society

In order for a contract to be binding in a court of law, it must be designed for: Correct Answer: Legal purposes.

Which of the following additional coverages provided by the Building and Personal Property coverage form applies only to buildings to which the replacement cost optional coverage applies? Correct Answer: Increased Cost of Construction.

Which of the following statements is TRUE regarding the DP-2 cause of loss form? Correct Answer: It automatically includes the EC perils, V&MM coverage, and the broad form perils..

If an insured is covered under an HO-2 policy, damage caused by wind to his/her personal property would be covered if: Correct Answer: The wind created an opening in the structure, allowing the wind to damage the personal property inside.

Under Ben Green's personal auto policy, each of the following would qualify as a "family member" EXCEPT: Correct Answer: Susan Green, Ben's wife. Susan maintains a separate residence although she and Ben are not divorced.

All of the following statements are true regarding the HO-1 form, EXCEPT: Correct Answer: It settles losses on an actual cash value basis unless endorsed.

A Texas employer who chooses NOT to provide workers' compensation coverage:I. Loses civil immunity.II. May be sued for damages when an employee is injured in the of employment.III. Will have to pay a fee of $500. Correct Answer: I and II only

Which of the following would NOT be excluded under the Commercial Property basic cause of loss form? Correct Answer: A fire caused by earth movement.

WITH 100% CORRECT ANSWERS 2023

Which of the following losses would be covered by Part D of a standard Personal Auto policy providing both "Other Than Collision" (Comprehensive) and "Collision" coverage? Correct Answer: A front tire blows out in a high-speed head-on collision, which also causes extensive damage to the vehicle.

Which of the following would be covered under Part Two - Employer's Liability of a standard workers' compensation policy? Correct Answer: The spouse of an injured employee sues the employer for loss of care and services (consortium)..

What coverage is provided under the BOP for a steam boiler explosion? Correct Answer: Steam boiler explosions are excluded unless the damage is a result of an explosion of gases or fuels within the object or flues.

Which of the following is NOT covered on the Commercial Property basic cause of loss form? Correct Answer: Pollution clean up

Under which circumstances would it be legal for an insurer to charge one insured more than another insured for the same coverage? Correct Answer: When the insured is statistically more likely to experience a loss.

Which of the following relieves the financial burden on the claimant by making certain payments to the claimant even before the claim is negotiated? Correct Answer: Advance payment.

A type of insurance that permits an insured to collect from his/her own insurance company, without proving the negligence of a third-party, is known as: Correct Answer: No-fault.

The insured carries a yacht policy and is pulling a water skier. The skier is a family member and is injured. What coverage might apply to this accident? Correct Answer: Medical payments coverage

Under a standardized Dwelling form, a loss by a covered peril for Improvements, Alterations and Additions is covered for up to: Correct Answer: 10% of the Coverage C limit of liability

Which of the following statements is TRUE regarding the peril of theft under the Homeowners policies? Correct Answer: The HO-8 form specifies a limit of $1,000 for theft.

A company that repairs customers' aircraft may need which of the following coverages to pay for the accidental damage to the customers' aircraft while it is in the insured's care, custody, or control? Correct Answer: Hangarkeeper's liability coverage.

Personal Automobile policies use which of the following alternative dispute methods when the insured and the insurance company cannot agree on the amount to be paid by the uninsured or underinsured motorist coverage? Correct Answer: Arbitration.

WITH 100% CORRECT ANSWERS 2023

Which of the following statements would be a reason for an adjuster to conduct a "claimant investigation"? Correct Answer: To determine the extent of the claimants injuries and if those injuries were caused by the incident that gave rise to the claim.

Which of the following is TRUE regarding coverage for a vegetated roof under the Building & Personal Property coverage form of a Commercial Property policy? Correct Answer: Damage to a vegetated roof is considered to be part of the building, therefore coverage is provided by Coverage A - Building.

Which of the following is not a true statement regarding the use of non-original equipment manufactured replacement parts for vehicles? Correct Answer: Insurers specifying the use of non-original equipment manufacture replacement crash parts shall not be required to pay the cost of any modifications to the parts which may become necessary to affect the repair.

The definition of "occupying" in the personal auto definitions means all of the following, EXCEPT: Correct Answer: Under a vehicle

Which of the following statements is true regarding a stock insurance company? Correct Answer: Stock companies pay a portion of their earnings to their stockholders (shareholders) as dividends.

Texas issues emergency adjuster licenses in case of an emergency arising out of a disaster. The application must be certified not later than the fifth day after the date on which the person begins works as an adjuster. An emergency license is valid for ______ days. Correct Answer: 90

Homeowners policies provide personal liability coverage that follows an insured anywhere in the world under: Correct Answer: Coverage E.

The Builders' Risk form covers all of the following, EXCEPT: Correct Answer: Unattached signs.

A loss reserving method that establishes aggregate reserves for all claims for a single line of insurance is known as: Correct Answer: Loss ratio method.

The medical payments coverage of an Aircraft Liability policy provided coverage for bodily injury expenses incurred by accident: Correct Answer: Within one year of the accident.

Under a standard Equipment Breakdown policy, the loss settlement is: Correct Answer: On a replacement cost coverage, if the repair or replacement, is made within 24 months of the loss.

Which Garage Coverage form symbol is used to indicate that the covered automobile(s) is/are subject to a compulsory "no-fault" law? Correct Answer: Symbol 25.

WITH 100% CORRECT ANSWERS 2023

All of the following statements are true regarding state Guaranty Associations, EXCEPT: Correct Answer: The fund assists insurers in gaining new insurance business by allowing them to advertise their membership in the Guaranty Association.

Which of the following types of property can NOT be covered under a Commercial Inland Marine form? Correct Answer: Property being manufactured and shipped to Europe for sale.

Which of the following statements concerning the Earthquake and Volcanic Eruption Endorsement to a Commercial Property policy is NOT TRUE? Correct Answer: If the policy expires before the end of the 168-hour period, coverage will not apply to the time period following the expiration date of the policy.

Loss settlement for personal property that is covered under Coverage C of a standard unendorsed ISO Homeowners policy is on a(n) Correct Answer: Actual cash value basis.

All the following are covered under Section II of a Homeowners policy, EXCEPT: Correct Answer: Intentional bodily injury to others by the insured..

Adjusters in Texas must complete at least _____ of the continuing education required to renew their license in a classroom or classroom equivalent setting Correct Answer: 50%

Molly is a staff adjuster who works for Indemnify Insurance. The evidence in the investigation has caused Molly to suspect that the claim is fraudulent. She is told to put the claim file in order and transfer it Meg, an adjuster who specializes in fraud. Which of the following reports should Molly prepare and send to Meg along with the claim file? Correct Answer: A summarized report.

All of the following are included in the Businessowners policy coverage territory, EXCEPT: Correct Answer: Mexico.

All of the following statements are TRUE regarding Section II - Liability of the Garage Coverage form, EXCEPT: Correct Answer: Provides coverage when an employee causes damage to a customer's vehicle.

The "period of restoration" for the Extra Expense coverage included on the Business Income form is: Correct Answer: Immediately following the direct physical damage..

Willie's Widgets has been earning a large portion of their market share for 10 years. During Willie's 11th year in business, Wynonna's Widgets opens and her superior marketing practices leaves Willie unable to continue in business. Which of the following types of risk caused Willie's loss? Correct Answer: Dynamic Risk

WITH 100% CORRECT ANSWERS 2023

A gas line explodes outside of Mindy's Mending Shop, ruining her new landscaping. Which coverage extension of Mindy's Commercial Property policy would cover the cost of replacing the damaged trees and shrubs? Correct Answer: "Outdoor Property".

Mrs. Vincent is covered under a standard PAP that covers her 2016 Ford SUV. She carries liability and full physical damage coverage. Her neighbor owns a 2002 Chevrolet pick-up truck with liability coverage only. Mrs. Vincent borrows the truck to pick up lawn furniture, parks the truck at the store, and leaves the keys in the ignition. The truck is stolen and later found wrecked. Which of the following would apply? Correct Answer: The loss is covered under Mrs. Vincent's "other than collision" coverage.

Pete is covered under a Personal Auto policy with Indemnify Insurance when his car is stolen. Six months pass, Pete's car is never found and the policy period with Indemnify expires. Pete decides to purchase another Personal Auto policy with Fiduciary Insurance, Inc. Pete is covered under the policy with Fiduciary for about three months, when his stolen automobile is found with only minor physical damage. How will this claim be handled? Correct Answer: Indemnify Insurance will pay the claim.

The endorsement used to report the insured's actual and estimated business income under an Equipment Breakdown policy is called: Correct Answer: Business income—Report of Values form.

Adele Sullivan's car is hit from the rear by Clarence Brown's car. Mrs. Sullivan's insurance company pays her claim under her physical damage coverage and makes a claim against Mr. Brown's insurance company for the same amount. This process is called: Correct Answer: Subrogation

The Homeowners policy on Dylan's $110,000 home is voided when he intentionally burns the house to the ground. Consequently, he does not receive the settlement check he was hoping to when he committed the arson, but he still has an outstanding mortgage balance of $76,000. How does this event affect the mortgage lender? Correct Answer: The insurer pays the mortgage lender $76,000..

An insured is covered under a Commercial Property policy with the special cause of loss form attached. The insured suffers a loss to some valuable papers and records pertinent to his business. Which of the following statements is correct about how this loss will be covered? Correct Answer: It will be covered if the loss was caused by one of the broad form perils.

In order to receive death benefits under workers' compensation in Texas, when must the beneficiaries file a claim with the Division of Workers Compensation? Correct Answer: Within one year of the date of the employee's death.