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