PUBLIC ADJUSTER

Program Trigger for terrorist acts must cause a collective damage in excess of?

� $100,000,000

TF A public adjuster may own no more than 50% in a salvage or similar business?

� F

General Average

� Loss shared by all parties

Particular Average

� Only one party shares in the loss.

In a home owner policy there is no deductible for

� Liability Coverage

In BOP covered property is listed and described in what part of the contract?

� Declarations page

What is not eligible for coverage under a livestock floater?

Poultry

What type of carrier must assume the broadest liability under common law?

Common carriers

Named insured is never a _______?

Lien Holder. Must have insurable interest in the property.

How much extra coverage does the BOP allow for building code updates on a loss?

$10,000

HO-3 only covers ___________ for jewelry?

Actual Cash Value

Promise by one party that is conditioned on an uncertain event and where the value given by each party is unequal is called?

Aleatory

An insurer has ________ days to complete their investigation of a claim?

30 days

Farm insurance coverage G covers?

Silos

Under equipment breakdown coverage, the full replacement cost will be provided if the equipment is repaired in what time period after a loss?

24 months.

In the newest edition of the commercial property form, what is now considered part of the building?

Vegetated roofs

Which Dwelling forms provide broad form coverage for personal property?

DP-2 and DP-3

The homeowner personal property replacement cost endorsement would pay replacement cost for ___________?

Used clothing

An insurer must acknowledge receipt of a claim within _______ working days?

10

An insurance contract is considered 4 things

Aleatory
Unilateral
Adhesive
Conditional

Admitted insurers must be financially examined by the Pennsylvania Department of insurance at least once every _______ years?

5 years.

A leased building has to be ____% unoccupied to be considered vacant under the COMMERCIAL PROPERTY policy?

31%

What about for BOP? A building must be _______% vacant to be considered vacant?

65%

BOP additional limit for debris removal is?

� 25,000

If an insurer wants to cancel or non-renew a policy covering personal property, how much notice is needed?

� 30 days

What is the limit that will be paid for the fire department service charge in the BOP form?

� $2,500

What is the limit that will be paid for the fire department service charge in the BOP form?

� $2,500

Under the homeowner forms, how much will be paid under claims expense for loss of earnings by the insured to assist the insurer in the investigation or defense of a claim?

� $250 per day

The insured's dwelling has been vacant for 62 days. Vandals enter the home and do considerable damage. To cover up their act and to avoid detection, the vandals set fire to the dwelling. The insurer will ____________

� Deny the entire loss

The authority that the public believes the agent has based on the agent's actions is known as

� Apparent Authority

What coverage is NOT included for a $25,000 limit of insurance under the ISO equipment breakdown policy.

� Fire Damage is excluded

Under the BOP forms ____________ is not subject to the 72 hour waiting period if the business is shut down due to action of a civil authority?

� Extra Expense Coverage

XYA Company was forced to shut down because a major fire put one of its main suppliers out of business. Under a special type of Business Income coverag,e how is a supplier of materials referred to?

� Contributing location

res ipsa laquitur" means?

� The thing speaks for itself

What is proof of loss?

� A formal statement made by the insured to the insurance company regarding a loss

Under HO-3, how much is given for debris removal after a fire loss?

� 5% of the Coverage A limit

What is the type of report indicating the initial results of a claim investigation?

� Field report

The DP-3 proivdes _______ coverage for the dwelling and other detached structures?

� Open Peril Coverage

Which DP forms provide coverage for loss of rental income?

� Basic Broad and Special Form (DP 2 and 3

What peril has a deductible in aircraft policies?

� In motion collision

________ is not needed for rating the premimum in the BOP?

� Square foot area

____________ is a type of report that indicates the initial results of a claim investigation.

� Field report

The unendorsed special form BOP provides how much coverage for theft of money and securities?

� None

What is the standard deductible under an Equipment Breakdown Poilcy?

� $500

TF The declarations of a Commercial Package policy contains a list of perils insured against.

� False

The HO-3 form provides __________ maximum for watercraft lost due to theft?

� 1,500 bucks

Jewlers block coverage can cover?

� Stock retail jewlers or the jewelry stock of department and discount stores.

On what basis are flood insurance claims usually paid?

� Actual Cash Value

Other structures are excluded from coverage under the HO-2 when they are

� Used for business purposes

When the commissioner calls for a hearing, he will give ______ days advance notice of the hearing.

� 10 days

______________ causes more property damage in the US than any other natural disaster.

Flood

Failing to examine a claimant under oath is and example of ________________.

Unfair Claim settlement practice

Homeowner policy will provide which of the following for personal property located in a storage facility?

� 10% of the coverage C limit.

The insuring agreements of an equipment breakdown policy provides coverage for?

� First party coverages and property damage to property of others.

What kind of insurance is covered under TRIA

� Workers Comp

The HO-3 policy does not cover loss of __________________

� A good renter or favorable lease agreement

The max obligation of the Pennsylvania Property and Casualty Insurance Guaranty association is __________ for covered claims other than return of unearned premium claims.

� $300,000

A release becomes "good" when?

� The settlement check is cashed.

The DP-3 covers?

� Open peril coverage on structures and broad form peril coverage on contents

Steam boiler explodes. I have a BOP. Am I covered?

� No! Separete equipment breakdown coverage is required.

Under a commercial property policy, _________ is not a covered peril under the basic cause of loss form?

� Explosion

How often must admitted insurers be financially examined by the Pennsylvania Department of Insurance?

� Once every 5 years

The focus of Eeuipment Breakdown coverage is

� Prevention of loss

Coverage C on a DP policy covers __________% of personal property limit on a world wide basis?

� 10%

Homeowners policy covers _________% of personal property on a world wide basis?

� 100% Full limit

Regular program flood insurance policy insures a single family residence for up to?

� $250,000

Emergency Program flood insurance covers a single family residence for up to?

� $35,000

Under the BOP policy, an office building is considered vacant when

� 65% or more of the total floor space is not being used

When insurer receives proof of loss, it must deny or accept the claim within ________ days?

� 15 days

Flood insurance can be purchased by?

� Any licensed property agent

What crop insurance policy insures the entire acreage rather than an individual crop?

� Adjusted Gross Revenue

Which of the following is the term used to describe the determination by a health benefit plan, based on the information presented at the time by the health care provider, that health care services proposed by the health care provider are medically necess

� Preauthorization/precertification.

All licensees are required to notify the insurance department of any change in address within _____ days?

� 30 days

The DP 2 and 3 (broad and special) provide coverage for ______________ which the dp 1 does not.

� Coverage for building collapse and coverage for lawns, plants, trees, and shrubs.

The HO-6 (condo) form covers other structures for the full limit? TF?

T

A large tree has fallen into Paul's yard caused by wind. The claims service representative advises Paul to call a contractor to remove the tree and send the bill to the insurance company. The bill is $1,200. However, the policy coverage for the debris rem

� The consumer relied on the statements of the claims representative so the insurance company would be estopped from denying the claim. The insurer had already waived its right to deny full payment of the claim because of the statements of the claims repr

Giving up a known right?

� Waiver

BOP covers __________ sized risks?

� Small to medium

Aircraft deductibles are

� A % of the value of the aircraft

In hull insurance, unvalued basis means?

� Value is decided after the loss

Under a COMMERCIAL PROPERTY policy, a CUSTOMERS property is covered

� On the insured's premises only

Adjusted Gross Revenue is a federal crop program that covers

� the revenue of the entire farm as opposed to a specific crop

Equipment dealer's form does not cover

� Vehicles for highway use

No salvage award is involved solely for

� Life saving efforts

� Life saving efforts

No salvage award is involved solely for

Motor truck cargo forms are used to cover

� Common and contract carriers against damage to the property being transported.

Coverage can ve voided by the insurer under any circumstance involving a _________

� Mistake, but coverage is not usually voided by a mistake unless it was due to misrepresentation or concealment.

_________ is covered by TRIA

� workers comp

The address of the insured is included in which page of the homeowner policy?

� Declarations page.

Negligence can not be ___________

� Intentional

The Equipment Breakdown policy provides automatic coverage to equipment in use or connected for use at newly acquired or existing locations for ________ days if the insured reports to the insurer in writing.

� 90 days

Under the DP-2 Broad form, damage to the dwelling that is suddenly caused by wild animals is or is not covered?

� Is not covered

The Gramm-Leach-Bliley Act

� Requires insurer to give customers written privacy notices.

Undammaged stock in equipment breakdown policy

� Refers to the reduction in value of stock as a result to damage of other stock.

If a named insured obtains "newly acquired property" such as a new outboard motor after their personal watercraft policy period begins, that property is covered under the policy for a maximum of _____ days after the date it came into the insured's possess

� 14 days

TF. Basic Broad and Sepcial commercial forms cover sinkhole collapse?

True

When the insurer receives a property completed proof of loss, they must accept or deny the claim within ______ days

15 days

Commercial building and personal property coverage form provides _______ extentions of coverage. But only if __________

� 5, if an 80% or higher coinsurance percentage is shown in the declarations.

Under the livestock coverage form, within how many days must newly acquired livestock be added to the policy?

� 30 days

Subrogation of a claim occurs before or after a claim has been paid?

After

Under pollution clean up and removal coverage under the BOP, when must a loss be reported?

� Within 180 days

__________ form is an inland marine coverage which covers the insured's merchandise held for sale, such property that is sold but not delivered, customers property in the care and custody of the insured and property being transported to or from the insure

� dealers form. Equipment dealers form would be an example of this

Commercial articles coverage form is designed to cover

� Musical instruments and related equipment, cameras and related equipment.

Dwelling forms provide how much coverage for grave markers?

� NOTHING

Business personal property limits will be increased by _______% to cover seasonal variations in stock in the BOP?

� 25%

Crop insurance policy limits are usually written as a

� Percentage of the maximum possible loss.

The fee for a public adjuster's license is

� 200 bucks

The BOP pays loss of income after a covered loss for up to _______ months

� 12 months.

An incorporated insurance company with its capital divided into shares and owned by its shareholders is known as

� A stock company

After a fire loss, the adjuster must

� Take possession of the salvage

Under the special BOP form, for additional coverage of "collapse to be available, ______________

� The collapse must be such that the building can not be used as intended.

Ocean marine protection and indemnity coverage does not insure the ships owner against liability for

� Damage to or loss of another ship by a negligent collision.

The burden of proof in determining the value of property and cause of loss lies with

� The insured

Under the terms of a homeowner policy, the mortagee is permitted to ________ if the insured fails to do so

� Pay the premimum for the insured.

A release is "good" when

� The settlement check has been issued

BOP maximum squarefootage

� 35,000 square feet

Contract of adhesion

� Since the insurance company formulate the policy contract, the courts will resolve and ambiguities in the insured's favor

A farmer purchases a crop hail policy with a limit of $10,000 on 5,000 acres that stustains a 30% loss. Coverage is written with a 5% minimum loss before the policy will pay. How much will the farmer receive?

� $3,000 or 30% of the limit. This is because the 5% minimum is not a deductible, it is just a minimum before the policy takes effect.

HO-5 provides what coverage

� Open peril on buildings and contents

The purpose of the Pennsylvania Insurance Guaranty Association

� To pay covered claims of insolvent licensed insurance companies.

_________ is something that increases the probability of a loss?

� Hazard

A public adjuster can solicit business as a result of a loss producing fire at what point?

� When the emergency responders have determined that the emergency status of the event has ended.

The medical payments coverage on the farm policy can be claimed for up to:

� 3 years

Bailment means

� Transfer of possession

Demurrage -

� Compensation payable for the delaying a vessel carrying freight

The Commercial property business income coverage form does not cover

� Non continueing operating expenses

The deductible under the regular flood insurance program is

� $1,000

The common policy conditions apply to which coverage parts of a commercial package policy?

� All parts

Ho-3 insures for direct physical loss to covered property involving collapse of a building. The exception is when its caused by

� Settling

If both the condo association form and the condo unito owners form cover the same property, and there is a covered loss

� The unit owners policy will be excess over the association policy

The insured has an HO6 form. The limit of coverage is $500,000. In addition he owns a separate three car garage adjacent to the building worth $100,000. How is the garage covered?

� Its covered as part of the $500,000 limit.

In flood insurance, there is a ______ day waiting period before coverage applies?

� 30 day

Mr. Vickers lives close to a river that has on occasion, flooded. On Friday morning he is watching the weather station and notes that there is flood warning in his area. He calls his agent and asks the agent to bind flood coverage immediately. The house i

� NO, flood insurance requires a 30 day waiting period.

The ________ clause covers collision damage to another vessel

The ________ clause covers collision damage to another vessel

Admitted insurers must be financially examined by the pennsylvaina department of insurance

� Once every 5 years

Free on board destination means or FOB destination

� Makes the seller responsible to the buyer until the goods have been delivered as agreed.

Free on board shipping point OR FOB SHIPPING POINT

� TITLE OF GOODS PASSES TO BUYER AT THE SHIPPING POINT

IVEL clause

� Provides excess hull and collision liability coverage

All persons transacting insurance in Pennsylvania must maintain complete records of all complaints received for a period of

� 4 years