Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
15 Cards in this Set
- Front
- Back
|
The Mail Coverage Form is always written on a reporting form basis; after the end of each reporting period shown in the declarations, reports are due within A) 31 days. B) 45 days. C) 15 days. D) 30 days. |
D) 30 days. The Mail Coverage Form is always written on a reporting form basis, with reports due within 30 days after the end of each reporting period shown in the declarations. |
|
|
All of the following coverages are included in the BOP standard form without requesting coverage extensions, EXCEPT A) Debris Removal. B) Outdoor property. C) Preservation of Property. D) Fire department service charge. |
B) Outdoor property. "Outdoor property" is a coverage extension available under the BOP. The BOP extension applies to damage to outdoors fences, antennas, signs (not attached to building), trees, shrubs, and plants caused by the perils fire, lightning, explosion, aircraft or riot commotion. The limit of this extension is $2,500 with an internal limit of $500 to any one tree or shrub. |
|
|
Which of the following causes of loss would NOT be covered under a BOP form? A) Tornado B) Earth movement, power failure, and flood C) Riot, sprinkler leakage, or sinkhole collapse D) Fire or lightning |
B) Earth movement, power failure, and flood Earth movement, power failure, and flood are specifically excluded in the policy. |
|
|
Who would participate in a WYO program? A) Government insurance companies that write and service National Flood Insurance policies B) Businesses requiring National Flood Insurance policies C) Private insurers that wish to write and service National Flood Insurance policies on a no risk-bearing basis D) Lloyd's associations |
C) Private insurers that wish to write and service National Flood Insurance policies on a no risk-bearing basis A WYO (write your own) program is made up of private insurers that write and service National Flood Insurance policies on a no risk-bearing basis through a special arrangement with the Federal Insurance Administration. WYO programs retain part of the flood insurance premium to pay for commissions and administrative costs. The remaining premiums, plus investment, are used to cover losses. |
|
|
Which of the following is NOT covered under accounts receivable coverage form? A) Interest on loans required to offset uncollectible amount pending payment of the insurance proceeds B) Sums due the insured that are uncollectible due to a covered loss C) Expenses to reestablish the records, if possible, and collection expenses that are in excess of normal costs D) Any loans required to offset uncollectible amounts |
D) Any loans required to offset uncollectible amounts Loan principal amounts are not covered under the form. However, other expenses, such as interest on necessary loans, are covered. |
|
|
All of the following are special personal property limits under a homeowners policy EXCEPT A) $2,500 for theft of firearms. B) $500 for business personal property on the insured premises. C) $1,500 for securities, accounts, deeds, and evidences of debt. D) $1,500 for trailers not used with watercraft. |
B) $500 for business personal property on the insured premises. HO forms place a $2,500 limit for business personal property that applies on premises only. A limit of $500 applies to loss of business personal property while away from the premises. |
|
|
Under the Commercial Property Coverage program, the Basic Causes of Loss form insures against loss caused by A) Sprinkler leakage. B) Earth movement. C) Nuclear Hazard. D) Power failure off the premises. |
A) Sprinkler leakage. Sprinkler leakage, once a specialty coverage, is now included in the Basic Causes of Loss. |
|
|
An endorsement is available for hired and nonowned auto on BOP liability A) In addition to commercial auto coverage. B) Only if the insured has 4 or more employees. C) Never. D) Only if the insured does not have commercial auto coverage. |
D) Only if the insured does not have commercial auto coverage. If the insured has commercial auto coverage, this endorsement would have to be on the auto policy; only available on BOP if no commercial auto coverage is in force. |
|
|
Assuming the insurer and the insured agree to the amount payable for a loss covered under a dwelling policy, how soon after the insurer has received proof of loss must it make payment? A) 30 days B) 45 days C) 60 days D) 90 days |
C) 60 days After the insurer receives proof of loss, it has 60 days to pay for the loss. |
|
|
Which of the following is NOT true concerning the fair rental value coverage provided in a dwelling policy? A) Coverage continues until repairs are completed. B) The period of time to repair or replace is not limited by the expiration date of the policy. C) Loss or expense caused by the cancellation of a lease is covered. D) It pays for the loss of rent you would have collected less any expenses that would not have continued. |
C) Loss or expense caused by the cancellation of a lease is covered. The cause for the property not being livable must be a covered peril. |
|
|
Vandals do damage to glass that is a part of a covered building. Under the broad form of a building and personal property policy, each glass pate will be covered for up to A) $100. B) $150. C) $250. D) $500. |
A) $100. Damage to glass that is a part of the covered building (excluding neon tubing) is covered for up to $100 for each plate or $500 per occurrence if caused by vandalism or one of the other causes of loss. |
|
|
The common policy condition is a modular part combined with other parts to create the contract. The “common policy condition” section contains provisions that are applicable to all lines of coverage that may be included in the policy. Which of the following provisions would be found in the common policy conditions section of the policy? A) Requests for any changes in the policy requested by the insured may be made by the second named insured. B) The insurer is granted the right to audit books and records of the insured relating to the policy for a period of up to 5 years after the end of the policy. C) The first named insured may cancel the policy at any time by giving written notice to the insurer. D) Prior to the insurer making inspections, surveys, and reports relating to the insurance, approval from the insured must be obtained. |
C) The first named insured may cancel the policy at any time by giving written notice to the insurer. The insurer is granted the right to audit books and records for a period of up to 3 years. The insurer is automatically granted the right to make inspections, surveys and such relating to the insurance. Only the first named insured may make requests for any changes in the policy. |
|
|
The standard Businessowners Policy covers all of the following causes of loss EXCEPT A) Sinkhole collapse. B) Sprinkler leakage. C) Damage to property by aircraft or vehicle. D) Building ordinance or law. |
D) Building ordinance or law. Building ordinance or law is specifically excluded by the BOP. |
|
|
A pizza shop has a neon sign attached to its building. During a severe thunderstorm, the sign is damaged by wind and hail. What is the maximum amount the business's building and personal property policy will pay for the damage to the sign? A) $5,000 B) $500 C) $1,000 D) $2,500 |
D) $2,500 There is a $2,500 limitation for loss or damage to outdoor signs, whether or not the sign is attached to the building. |
|
|
If more than one person has an insurable interest in the property covered under a dwelling policy, A) All involved insurers must decide which one will be liable for the loss. B) All insureds must decide which one will be liable for the loss. C) The insurer will be liable for only the insured’s interest in the damaged property. D) Liability will be split evenly among all people who have insurable interest. |
C) The insurer will be liable for only the insured’s interest in the damaged property. If more than one person has an insurable interest in a property, the insurer will be liable only for the insured's interest in the loss. |
