Which of the following are excluded under the Personal Auto Policy?
Joe's briefcase and necktie are stolen from his car
The phase 80% Coinsurance is the property coverage refer to:
The insured must maintain insurance coverage equal to 80% of the value of the property as well as receiving a lower; otherwise, a coinsurance penalty will be imposed in the event of a loss.
Of the following liability situations for one of your insureds, under a Personal Auto policy (PAP), which would not be covered unless the insured had purchased an additional endorsement and paid a higher premium?
The insured demolishes the mailbox and surrounding gardens while driving a vehicle furnished by her company, which does not own, but drivers regularly.
What additional coverages are available under the scheduled person property endorsement that is not available under an unendrosed Homeowner's policy?
Breakage of glassware caused by an earthquake
A property with which of the following deficiencies would be eligible for the California FAIR plan?
Located in a designated hazardous brush area
Which of the following perils can be included in the Standard Fire Policy?
Fire after a riot
Which of the primary difference between HO2 and HO3 policy?
Perils insured against
The ordiance of Law Exclusion/ Limitation found in a property policies such as commercial property coverage and in the
Homeowner's policy have the following effect:
It excludes the part of the loss resulting from the enforcement of a building ordiance or law.
Which of the following loss exposures is not covered by Section II of a Dave's Homeowner Policy?
Dave's registered/license personal auto while used on his own property which includes 10 acres of undeveloped
land.
Earthquake insurance:
Is covered in auto insurance if Other Than Collision coverage is purchased
For Dwelling there is a much deductible than what is used for other perils.
All answers are correct
Under the liability portion of an unendorsed Person Auto Policy, what coverage is available if the named insured is
operating a company car on a regular basis?
The policy excludes this usage
The physical damage section of the Personal Auto Policy includes coverage for
Theft of insured's clothes from the car while parked at a shopping center
Vandalism damage
Mechanical breakdown
None of the above
The Watercraft endorsement on a Homeowner's Policy extends coverage for?
Physical damage and liability coverage for watercraft listed on the schedule
Which of the following best describe Lloyd's of London?
An organization that is managed by an Attorney-in-Fact who is appointed by the syndicate members.
Personal property is covered in a Dwelling Policy away from the premises anyware in the world for which of the following amounts?
Up to 10% of the amount of coverage for personal property.
Under the section two of a Homeowners Policy, which of the following is typically not covered?
Bodily injury to the insured's resident family
An insured with a Homeowners Policy has rented as automobile in Ireland. Which of the following amounts of coverage apply to the insured's personal property while it is in the rental vehicle?
100% of the property limit.
An insured has a standard HO4 policy to cover personal property for up to $40,000. While vacationing in Germany a hotel fire causes destruction in the following manner:
Luggage and clothing - $15,000 Replacement Cost
Jewelry - $15,000 Replacement Cost
Ass
$36,000
From the following, who is eligible to obtain flood coverage under the National Flood insurance Program (NFIP)?
Property owners that reside in communities designated as qualified to participate in the National Flood Insurance Program
In an HO3 and HO8 Homeowners Policy, which two categories of coverage are identical?
Dwelling and other structures
A personal Auto Policy provides which of the following types of payments without decreasing the limits of the policy?
Reasonable expenses incurred at the request of the insurer.
The term "collision" as used in a Personal Auto Policy (PAP) can be best defined as;
Colliding with any object or animal
Accidents that occur in which of the following places are covered under a Personal Auto Policy?
Alaska
If the proper amount of coinsurance is maintained, which of the following formulas will be used to calculate the amount paid in the event of a loss?
Insured amount carried divided by the amount required times the loss minus the deductible.
Special" or "all risk" coverage forms:
List the policy exclusions
John is single and has two sons Peter and Sam; he buys a home and finances it with Chase Bank. Which of the following persons have an insurable interest in that fact home?
Both John and the Chase Bank
In the property insurance field "actual cash value" means:
Replacement cost minus depreciation
Furniture, which is destroyed when a building burns down, is an example of what kind of loss?
Indirect
Coverage against loss by some perils (vandalism, theft, etc.) under the building and personal property coverage form is suspended if :
The insured building is vacant for over 60 days.
Under the building and personal property damage form, what obligation, if any, does an insurer have to a mortgagee in the event the company wishes to cancel the policy?
The company must give the mortgagee 10 days written notice if cancellation is for non-payment of premium, and 30 day's notice of cancellation for any other reason.
In the insurance industry causes of loss are called perils, in turn are affected by hazards. On of the following which is a general category of hazards?
Moral hazards
The agent has a responsibility in underwriting an insurance policy:
In all cases
All of the following are examples of avoiding a risk, EXCEPT:
An insured a realizes his driving skills are diminishing, so he decides to purchase more liability insurance on his auto policy.
Don frequently drives faster than the speed limit. Don was injured in an auto accident. What was the hazards?
Driving too Fast
All are methods for handling a risk, EXCEPT:
identify and increase the hazards.
Joe takes out a policy and did not mention that he just taken up the hobby of sky-diving. Not disclosing this information is an act of:
Concealment
If there is material concealment in disability policy, how does the insurer determine the materiality?
Solely by the probable and reasonable influence of the facts upon the party to whom the communication is due, in forming his estimate of the disadvantage of the proposed contract.
A new agent is attempting to sell an insurance policy but makes several presentation statement that prove to be untrue. The agent is guilty of a:
Misrepresentation
Which of these statements is true in regard to misrepresentation?
Misrepresentation means that a representation has been made that turns out to be untrue.
An agent is attempting to sell a senior a life insurance policy.if the senior purchase the policy, he has ___________ days from policy receipt to cancel the policy and receive a premium refund.
30
In California, insurance usually comes under the authority of the California Department of Insurance. However, certain types may be under the authority of:
Another California agency
The Commissioner has rules regarding uses of names.Brad Johnson is a licensed life agent who has earned the designation of CLU. Which of these can Brad use without prior approval of the Commissioner?
Brad Johnson Insurance
Johanson's Insurance Agency
Brad
No answers are correct.
Transact", as applied to insurance activities, does not:
Underwriting
A life analyst, in the written disclosure to the client, must include all of the following EXCEPT:
A list of services he will provide with no fee
The California Life and Health Guarantee association protect:
Insureds from insurers that become unable to meet their financial obligations.
A mutual company (best answer):
Pays dividends to its policyholders.
An insurance company organized in Great Britain is:
Alien
A foreign insurer is:
An insurer organized under the law of any jurisdiction outside the State of California (but within the United States), whether or not admitted
The California Insurance Code defines a domestic insurer as an insurer organized under the law of:
The State of California whether or not it is an admitted insurer.
The Insurance Commissioner's office must do the following EXCEPT for:
Set premiums.
The Insurance Commissioner may, without a hearing, deny a license application if the applicant has:
Committed a felony, as shown by a final judgment of conviction.
A previous license application denied for a cause with the past five year
Committed a misde
All answers are correct.
The insurance Commissioner may suspend or revoke a license without a hearing when:
The licensee had an insurance license suspended or revoked for cause within the previous five years.
The Insurance Code:
Is law passed by the legislature.
Agent Smith has presented an insurance plan for Mr. & Mrs. Johnson. The Johnson's are really pleased with the concept of having all of their insurance with one agent. Now the most important thing that agent Smith should do is:
Always put the Johnson's the best interest first.
If an agent requests a prepaid commission, the agent will receive:
Commision before they are earned.
A charge back if the policy is declined.
An annualized commission.
All answers are correct.
The best way to describe a pre-text interview is:
Someone pretending to be someone they are not.
Refusing to identify themselves.
Misrepresenting the purpose of the interview.
All answers are correct.
Seniors often are taken advantage of by insurance agents because some agents are:
Aware that seniors often buy out of fear
The insured has two separate dwelling policies that cover the same property: Policy A for $30,000 and Policy B for $60,000. If insured suffer a $ 12,000 loss, how much will be paid under policy B according to the insurance? $ 4,000, $ 6,000, $ 8,000 and $
$ 8,000
Under a standard fire policy with an extended coverage endorsement, what is not covered?
Earthquake.
Companies that shell homeowner's policies in California.
Must offer earthquake insurance.
If an individual cannot get homeowners insurance through the normal marketplace, he may apply for insurance coverage through the:
FAIR Plan
Which of the following statements is true concerning the basic causes of loss under DP1?
It covers internal explosions
Which of the following causes of loss forms are "named peril" forms?
Basic Form
Broad Form
Special Form
All of the above
All of the above All three forms Basic Broad Special
When coverage is written for a dwelling, which of the dwelling forms automatically provides some additional coverage for other structures?
None of the dwelling forms
The special form only
The board and special forms
All of the dwelling form
All of the dwelling form
Which of the following would be covered by the basic causes of loss form?
Damage resulting from the weight of snow, ice or street
When a loss occurs which is covered by the building and personal property form, which of the following is not required of the insured?
Notify the police if a law has been broken in relation to the loss.
A building, insured by commercial property coverage, is damaged by fire for which a third party definitely responsible. From whom will the insured received payments for the loss?
The insurance company will pay the insured the amount of the loss, up to the amount of the policy, and will expect the insured to collect from the person responsible for the damage, and reimburse the company.
Mr. Smith has commercial property coverage in the amount of $400,000 in his building. He suffers a fire loss of $120,000. The replacement cost of the building at the time of the loss was $600,000. If his policy contains an 80% coinsurance clause.
$120,000 minus the deductible.
Company ABC and Company XYZ write equal amounts of property insurance on identical policy forms for the same building. If a partial loss occurs, how much of a loss is XYZ liable for?
50%
Each of the following business occupancies would be permitted in a dwelling insured under a dwelling form EXCEPT
A professional office providing merchandise for sale
Each of the following coverage s is always included in Section 1 of homeowner's policy EXCEPT:
Medical payments coverage check answer
All of the following statements regarding Homeowners broad form (HO-2) are true EXCEPT:
The dwelling is covered
Coverage is provided against all risks of physical loss
Other Structures are covered
Losses from vandalism and malicious mischief are covered
Coverage is provided against all risks of physical loss
Which of the following risks would not be eligible for coverage under a homeowner's policy?
A small family farm
Which of the following types of unscheduled personal property are excluded on homeowner policy forms?
Animals, bird and fish
Under the National Flood Insurance Emergency Program, what is the maximum limit of coverage that may be written for a Commercial building?
$100,000
An insured has $40,000 a coverage on a homeowner's policy HO-2 and has suffered a covered loss of $8000. How much will be insured collect if the replacement cost of the home was $80,000? At the time of loss ( Ignore any deductible )
$8,000
All of the following are true about Fair plan EXCEPT:
FAIR plans are operated by private insurers
Every State is required to have a FAIR plan
"FAIR" means "Fair Access to Insurance Requirements
Federal reinsurance is only for losses caused by riot and civil disorder
Replacement cost coverage for dwellings is available under:
All dwelling policy forms
Only the special dwelling form
Only the basic and broad forms
Only the broad and special forms
All dwelling policy forms
Interline endorsements apply or could apply:
Only when a broad causes of loss form is attached to a policy
Which of the following perils is not covered by flood insurance?
Sinkhole Collapse
Mudslide clause by accumulations of water on or under the ground
Landslide
Rainfall which enters a building through a defective through and accumulates in the basement
Sinkhole collapse
All of the following statements are true regarding flood insurance EXCEPT:
If only available in designated areas.
Coverage may be provided for dwelling or commercial property
Coverage is excluded on money and securities
Coverage may be provided on growing crops or livestock
Which of the following policies covers individual personal property on an itemized or scheduled basis?
Personal articles floater
Which cause of loss form(s) provides theft coverage?
All causes of loss forms
Coverage B of a homeowner's policy will apply to which of the following losses?
Damage to an unattached garage of an insured home
On the homeowner's policy, coverage D is also called:
Loss of use
On Part II of a homeowner's policy, Coverage E limit of liability is:
$100,000 per occurrence
The Fair Plan
Provides insurance to insureds in the area that are normally considered to be too hazardous for insurance.
The most common method for complying with financial responsibility law is:
Auto insurance.
On which of these may the cancellation of an automobile policy the insurer be based?
Suspension of the driver's license of a person who is insured under the policy and who usually drives the insured automobile
All are uninsured motorists EXPECT:
A vehicle self-insured by a government agency (or State Agency)
A company can cancel an automobile policy for all reasons, EXPECT non-payments of premium, with how many days notice?
20 Days
A woman purchase another car and adds it to her policy. She does not pay the additional premium and the insurer cancels the policy for non-payments. How many days notice is the insurer required to give her?
10 Days
Which of the following is true an application?
It is a written request that the applicant to an insurer, requesting the insurer issue a policy on the basis of the information in the application.
It contains actual information provided to the insurer by th
All answers are correct.
If the insured has misstated his or her age on the life insurance application and that fact is discovered after the death of the insured, what will the company do?
Pay the face amount equal to that which the premium would have purchased at the correct age.
The code allows insurers to ask the birthplace of an applicant if the information is used to.
Identify and not discriminate against the applicant.
A mistake on an insurance application may be changed by:
Lining out the wrong information and the agent and client initialing and dating the change
Which of the following statements is true?
An insurer may not refuse to insure, refuse to continue to insure or limit the amount of coverage available to a physically or mentally impaired person, except when based on sound actuarial principles or related to actual and reasonably anticipated experi
Which describes a non-admitted insurer?
On a list compiled by the Department of Insurance: surplus Line Broker can place business with these companies
An insurance agent finds that the majority of the insures admitted to transact fire insurance in California cannot insure his client's risk. which of these should the agent do?
Refer the risk to a surplus broker to obtain coverage from a non-admitted insurer.
A Surplus Line Broker:
Places insurance with non-admitted insurers when the insurance cannot be procured from admitted insurers.
A Workers Compensation policy would pay when a telemarketing employee suffers an injury:
Whether or not the employee's fault, the employee would receive benefits if the injury is work-related.
Under current Workers Compensation regulations, employees give up the right:
To Sue their employees.
To What does 24-hour coverage refer?
It is the joint issuance of a Worker Compensation policy with a disability insurance policy or other medical coverage for non occupational injuries and illnesses.
Worker Compensations does not cover:
Common illnesses such as colds or flu.
When a group plan is noncontributory, what percentage of the eligible employees must be covered?
100%
What phrase describes a group disability policy for which insured members pay parts of the premium
Contributory policy
If the employer pays the entire premium on the group disability policy, what type of group plan is this?
Non Contributory.
Which of the following statements is untrue about Medicare supplement plans?
There are standard policies of which one must offer basic benefits.
Medicare supplement plans offer an individual an open enrollment period for the 6-months period following his/
There are no mandated basic benefits.
Social Security (OASDHI) provides for :
Retirement Benefits.
Medical Benefits.
Disability Benefits.
All answers are correct.
Which of the following statement is true of a Medicare Supplement products?
Basic information regarding Medicare Supplement can be obtained without a fee from HICAP
All of the following are true about Part A of Medicare EXCEPT:
There so no premium payment for those that meet the Social Security qualifications.
Covers. in-patient hospital care.
A portion of the Social Security payroll tax cover Part A costs
Covers regular visits to the office/clinic of a medical provider.
Long Term Care Policies:
May include institutional care and home health care protection.
Which of the following is not covered under Long term Care (LTC) insurance?
Actual hospital care.
Long Term Care under Home Health Care does not include:
Home Health Care which covers Hospice, Adult Day and Personal Care.
A person with Long Term Care (LTC) insurance would have coverage for:
Intermediate Care and Home-Based Care
Custodial Care.
Skilled nursing home care.
All answers are correct.
Individuals who stay the hospital for a long period of time:
Are not required to have a LTC