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61 Cards in this Set
- Front
- Back
which of the following is true regarding license cancellation and reinstatement? |
to cancel a license, the license needs to be returned to the insurance department. it can be reinstated by filling out an application and paying a fee |
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if during a sales presenation a produce intentionally makes a statement which may mislead the insurance applicant, the produce has committed |
misrepresentation |
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a producer received a group master policy and certifcates for delivery to the insured. within how mayn days must hte policy and certificates be delivered?
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10 calendar days
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which of the following statements is true concerning the special form dwelling policy? |
coverage A is for all-risk perils, and coverage C is for the braod form perils |
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An insured owns a large dog. The first day he has to leave the dog home alone to go to work, the insured comes back to find his $400 couch torn apart, his 100 coffee table chewed up, his 50 window curtain shredded, and a 200 window pane shattered where his dog jumped through. The insured has personal property coverage under a special form dwelling policy. how much of this loww will the policy cover? |
0 damage that results from domestic animals is excluded under the special form dwelling policy. |
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which of the following best describes business income? |
net profit or loss that owuld have incurred, plus normal operating expenses, including payroll, that ocntinues during the suspension. |
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which of the following would be covered un the broad form DP2 policy's falling object peril? |
inetrior bulding damage if the exterior was damaged |
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a policy condition that stipulates how the amount of damaged or lost property will be determined if the insured and the princal do not agree is known as |
appraisal |
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when transacting business in this state an insurer formed under the laws of another country is known as a/an |
alien insurer |
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the commissioner may revoke a producer's license for all of the following reasons except |
acting in a fiduciary capacity |
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the maccarran act stated that the federal government would not regulate insurance as long as an adequate job of regulating the industry was done by the |
states |
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the policy conditions define |
how parties to the contract must act following a loww |
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how is an insurance consultant different from an insurance producer? |
a consultant does not sell policies, but only offers advice |
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which of the following is not the consideration in a policy? |
the application given to a prospective insured |
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which of the following included in the term "insurance-related conduct" |
transmitting funds between producers and the insurance company |
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how long is the waiting period after the applciation has been accepted before flood coverage goes into effect |
30 days |
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following the christmas season, an insured decides to store his decorations in the attic for the summer. while moving the decorations, he accidentally drops a heavy box that crashes through the ceiling, causing 1,000 of damage. his HO3 will pay |
1,000 minus the deductible because the HO3 covers structures on an open peril basis, the insurance company would pay 1,000 minus any deductible the insured must pay. |
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which of the followin is not settled on an actual cash value basis while covered under the business property coverage form? |
valuable papers and records |
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an insured's building has an actual cash value of 200,000 and he has insured the property for 120,000 with an 80% coinsurance clause. a 40,000 loss occurs. how much will the policy pay? |
30,000 this insured only carried 75% of the amount of insurance he had agreed to carry (120,000 of the agreed 160,000) so the insurer will pay only 75% of hte loss, or 30,000. if the insured had carried the rquired amount of insurance, partial losses would be paid in full. in the event of a total loss, the case of the policy would be paid. if the full amount is not carried, divide the acutal amount carried by the amount that should be carried *the coinsurance amount), and multiply it by the loss |
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what is the purpose of the coinsurance clause found in property insurance policies? |
encourage insurance to value |
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within the first 60 days of coverage under a dwelling policy, how much notice is required for the cancellation of a policy? |
10 days |
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an insured's roof cost 4,000 when installed 5 years ago. it has been damaged by hail and must be replaced. the new rood will cost 6,000 at today's prices. if the roof has been depreciating at 200 per year and his policy is acv, how much will it pay toward the insured's new roof? |
5,000 |
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the business income coverage form covers consequential loss of business income that occurs when a business must suspend operations because of a direct loss. which of the following terms best describes the nature of this type of coverage? |
time element |
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the new jersey commercial insurance deregulations act requires to file policy forms with the commissioner for approval at least |
30 days before the become effective |
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which coverage form would provide coverage for all incoming and outgoing shipments? |
annual transit |
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which of the following is not an essential elemtn of an insurance contract |
counteroffer |
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duties of the inurer found in property policy conditions include all of the following EXCEPT |
notify the insured in the event of financial difficulty
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property insurance tha tprovides 100,000 coverage for a building and 50,000 coverage for personal property at a single location is called |
specific coverage |
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which of the following would not be considered a misrepresentation on the part of the insurer |
backdating policies to secure a lower premium for the insured |
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which of the following is not consideration on the part of an insured? |
promise to submit timely claims |
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which of the following is not consideration on the part of an insured? |
promise to submit timely claims |
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how much coverage is provided under a homeowners policy for theft or unauthorized use of a credit card? |
500 |
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which of the following most likely would not be reuqired to complete continuing education hours in this state? |
nonresident producers |
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when a mortgagee is named in a mortgagee clause attached to a fire or other direct damage policy |
all of the above are true |
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which of the following is used in the formula for calcuating the actual cash vlaue of a property |
replacement cost |
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the list of those lines or classes of insurance fro which there exists no reasonable or asequate markeyt in new jersey, as determined by the commissioner, is known as |
exportable list |
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the part of the policy that set forth the rules of condutct, duties, and obligations of the parties is called the |
conditions |
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under additional coverage for homeowners policies, what is the maximum amount that can be charged to the insured for fire department services? |
500 |
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after a loss, an insured covered by a business property coverage is nto required to |
reconstruct for the insurer a timeline of activities leading up to the loss for use in an investigation |
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which policy consists of the declarations and conditions, endorsements, and other attachments applicable to a single line of insurance? |
monoline |
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professional photographers and musicians may insure their equipment with |
a commercial articles form |
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which of the following would NOT be considered a source of insurability information by insurer? |
the applicant's marital status |
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a contract between a producer and an insurance company |
must be in writing and signed by both parties |
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in forming an insurance contract, when does acceptance usually occur? |
when an insurer approves a prepaid application |
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if the inssuance of a license is denied and a hearing is requested, which entity will be making determination whether or not the license should be issued? |
the department of insurance |
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which of the following is a mandatory part of an insurance policy that varies with each individual policy? |
declarations |
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which of the following individuals would most likely be issued a nonresident producer's license? |
a MASS. resident who sells insurance full-time in boston but wants to expand his customer base by becoming licensed in new jersey |
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the inland marine coverage form for outdoor signs provides "open peril" coverage and excludes coverage fro breakge only during |
any of the above |
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the policy provision found in property insurance policies that prevents the insured from collecting twice for the same loss is called |
subrogationq |
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with respect to the business of insurance, a hazard is |
any condition or exposure that increases the possibility of loss |
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which of the following licenses is required for a surplus lines producer? |
property and casualty |
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when other insurance is written on the same basis as a commercial property policy, the obligation of the insurer is to cover |
a share of the loss |
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all of the following are factores in the determination of actual cash value except |
insurance premium paid |
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expenses that an organzation would not have incurred if business interruption had not existed are known as |
extra expenses |
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the enw jersey insurance underwritting assocation is supported by funds from the |
New jersey insurance development fund |
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ABC Trucking hauls products for Acme, Inc. as a contract carrier. On one shipment, the driver stopped at a truck stop for lunch. leaving the truck in the parking lot, he made certain that the truck was locked before leaving it. upon returing to the truck, he disocvered that someone had broken into te trcuck and stolen the cargo. Is abc legally liable fo rht eloss? |
no, the driver had taken reasonable measures to protect the property by locking the truck. |
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all of the following are unfair claims settlement practices except |
suggestion negotiations in settling the claim |
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the new jhersey commercial insurance deregulationa ct requrires insureds to file rates and any changes or amendments with the commission no later than |
30 days after becoming effective |
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which of the following is the closest term to an "authoerized" insurer? |
admitted |
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the regulat national flood insurance program would insure an eligible single-family dwelling for up ot |
250,000 |
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an insured has aliability policy that sets the amount for all claims that arise from a single incident at 50,000. which type of limit of liability does this insured's policy have? |
per pccurence. |