Which section of an insurance policy includes the names of the insurer and insured, effective dates, expiration dates and limits of liability?
Declarations
Which type of coverage will replace damaged or destroyed property with the equivalent at current cost?
Replacement cost
Which concept is designed to eliminate small claims and help in reducing the cost of insurance?
Deductibles
Which provision encourages the insured to maintain a certain limit of insurance?
Limits of Liability
Before paying a claim, insurable interest must exist in a property policy at the time of?
the Loss
Which condition gives the insurer the right to collect against a responsible third party?
Subrogation
Gambling is an example of which type of risk?
Speculative
Which of the following forms give named peril coverage to condo owners or coop units?
HO-6
What other name is the Dwelling Form DP-2 known as?
Broad Form
the scrap value of a damaged property line is the:
Salvage value
Which peril is covered under the Dwelling Form DP-1?
Lightning and Fire
What is another name for the Homeowners Form HO-4?
Tenants form
Which of the following forms provides open perils for Coverages A, B, and C?
HO-5 (open peril on both dwelling and personal property)
The Personal Articles Floater gives for all of the following, except:
Claims are settled on an ACV basis
Which term describes the cost to replace property minus the deduction for depreciation?
Actual Cash Value
Which loss would NOT be covered by the National Flood Insurance Program?
Internal water damage like water main break
The insurance purposes, an unfurnished beach house is considered _________ because no one lives there?
Vacant
Which peril is NOT covered under Part D of Personal Auto Policy? Riots, Flood, Earthquake or Road damage to tires
Road damage to tires
An insured and insurer will utilize what when they are unable to agree on the amount of a claim to be paid?
Appraisal
The liability assigned to one party for the conduct of another; based solely on relationship between the 2 is:
Vicarious liability
Does bodily injury include personal injury?
NO
What is an element to a legal contract?
Agreement, legal purpose, consideration and competent parties
The process of a neutral 3rd party making a decision on a disputed claim is called:
Arbitration
If a payment is made regarding Med Pay coverage, is this considered as an admission of guilt?
No
Insurance that protects professionals from losses that arise out of their processional conduct is referred to as what?
Professional Liability
Is a Court Bond a type of Fidelity bond?
No, its a Judicial Bond
Is self injury resulting from intoxication after hours covered under Workers Compensation?
NO
What types of risk is insurable?
Pure Risks
What defines a hazard?
the increase in chance of a peril occurring
A CGL policy will exclude coverage for BI and PD arising from a Host Liquor Liability. True or false?
False
What type of policy can broaden coverage and increase the limits of underlying policies?
Umbrella
What are the three types of Time Element Coverage Forms?
Extra Expense Coverage FormBusiness Income and Extra Expense FormBusiness Expense Without Extra Expense Form
Umbrella policies are insured in what increment amount?
$1 million
What coverage will protect the insured against drivers who have inadequate or insufficient coverage to respond to claims?
Underinsured Coverage
True or False.Business Auto Coverage form covers vehicles being sold, stored or repaired for others?
False
True or False.A phantom operator may be considered to be an uninsured motorist?
True
Failure to act as a reasonable and prudent person is defined as:
Negligence
Which part of the insurance contract specifies the risks the policy will not cover?
Exclusions
The insured has an auto policy with the liability limits of 30/60/10. He runs off the road and causes $70K worth of damage to an apartment building. How much will his policy pay?
$10K
Is debris removal an example of a liability coverage?
No