Under an unendorsed commercial property coverage form with no optional coverage; on what basis are buildings valued?
A. Guaranteed replacement cost
B. Actual cash value
C. Replacement cost
D. Functional replacement cost
The loss under a watercraft endorsement is covered if it arises out of:
A. The use of the watercraft for a business party
B. The use of the watercraft to carry property for a fee
C. The use of a sailboat in a racing competition
D. Rental of the watercraft to others
How much coverage, if any, is available under HO-3 for landlord’s furnishings?
A. $2,000
B. $1,000
C. No coverage available
D. $2,500
Which of the following losses would be excluded by the ordinance or law exclusion?
A. Confiscation of property as a result of criminal activity
B. Special assessments levied by the taxing authorities
C. Fines levied by OSHA
D. Additional costs necessary to make a restroom ADA compliant
The Mexico coverage endorsement may be attached to personal auto policies, and…
A. Provides excess liability coverage for accidents in Mexico within 25 miles of the U.S. border
B. Must be attached to U.S. policies for citizens of Mexico
C. Will provide primary liability coverage for insureds driving anywhere in Mexico
D. Must be added to the policy of an insured who lives within 25 miles of the Mexican border
What additional coverage is provided in a DP-3 that is not provided in a DP-1?
A. Collapse
B. Fire Department service charge
C. Worldwide coverage
D. Other structures
What is required of a broker-agent before appointing an insurance solicitor?
A. Must be a domestic insurer
B. Must hold a notice of appointment
C. Must hold a permanent license
D. Must hold a certificate of insurance
If an insured timely requests coverage for a newly acquired auto under an existing personal auto policy, what coverage is provided before the request is made?
A. Broadest coverage for any vehicle shown on the declarations
B. Statutory minimum required coverages
C. Average coverage for all vehicles shown on the declarations
D. Lowest coverage for any vehicle shown on the declarations
All of the following acts or practices are prohibited by the Unfair Practices Act, except:
A. Advising claimants not to engage attorneys
B. An agent of an insurance association advising members not to place business with an insurer that is introducing a product sold directly to the public
C. Advising clients that an insurer is protected from insolvency by the California Insurance Guarantee Association
D. Charging a different rate for males and females for life or annuity policies based on data in mortality tables that is segregated by sex
Where would an insured find insurance coverage to protect against damage to a shipment of televisions
shipped on a semi-truck for the insured’s business?
A. Inland marine
B. Commercial general liability
C. Commercial auto liability
D. Fire and allied lines
If an insured rents a vehicle while on two week vacation in the U.S., what coverage is provided under the personal auto policy?
A. Liability coverage only
B. No coverage available because the vehicle is not a “covered auto.”
C. All coverage is in force in the personal auto policy
D. Liability, medical and uninsured motorist coverage only
Which inland marine floater is most similar to the scheduled personal property endorsement on a homeowner’s policy?
A. Personal insurance floater
B. Personal effects floater
C. Personal property floater
D. Personal articles floater
If an insured under a personal auto policy leaves a covered auto at an auto dealer for repairs, and the auto is involved in an accident while being test driven by an employee of the dealer, how will the personal auto policy respond to liability claims?
A. The personal auto policy is primary
B. There is no coverage under the personal auto policy
C. The personal auto policy will share with the dealer’s policy on a pro-rata basis
D. The personal auto policy is excess
All of the following are exclusions in an inland marine policy, except:
A. Earth movement
B. Wear and tear
C. Electrical breakdown
D. Insects or vermin
A private passenger vehicle is added to an insurance policy. The CA Insurance Code:
A. Requires a vehicle inspection only if both comprehensive and collision coverages are carried
B. Requires a vehicle inspection for all additional cars
C. Makes no mention of a vehicle inspection requirement
D. No vehicle inspection is required if both comprehensive and collision coverages are carried
When a state program is a company’s only option available for the purchasing of workers compensation insurance, it is called:
A. A competitive state fund
B. A monopolistic state fund
C. A shared market fund
D. A guaranty fund
A reduction in the value of property that results immediately from damage to the property is known as:
A. Additional living expense
B. Extra expense
C. Consequential loss
D. Direct loss
Which part of the insurance contract summarizes the major promises of the insurer?
A. Definitions
B. Conditions
C. Insuring agreement
D. Declarations
Livery conveyance is best described as a:
A. Vehicle for hire to transport people
B. Vehicle for hire to transport property
C. Commercial vehicle with more than 4 wheels
D. Share-the-expense carpool
Under a personal auto policy, if a newly acquired auto is to replace the covered auto with liability coverage only, how long does the insured have to request collision coverage?
A. Immediately
B. 4 days
C. 14 days
D. 30 days
Ian, your unmarried homeowner’s insured does not own a car. He is planning a vacation trip to Florida and will be renting a car. He also drives cars belonging to friends occasionally. To protect Ian in these situations, you would recommend a personal auto policy with a:
A. Extended transportation endorsement
B. Miscellaneous vehicle endorsement
C. Extended non-owned coverage endorsement
D. Named non-owner coverage endorsement
Which of the following events within the last three years would disqualify an individual from receiving a good driver discount?
A. A moving violation while driving a company car during business hours
B. An at-fault accident involving only property damage
C. An at-fault accident involving minor bodily injury
D. A not-at-fault accident resulting in the death of a passenger
Damage done by an earthquake to an insured auto is covered by the personal auto policy:
A. If the earth movement endorsement is purchased
B. If the other than collision coverage is purchased
C. Only if the car was in the insured’s garage
D. Under no circumstances. Earth movement losses are not covered
What is one difference between a homeowners policy and a dwelling program for personal property coverage?
A. There is no appreciable difference
B. Homeowners policy’s coverage limit is higher than the dwelling form for jewelry
C. Homeowners policies value property at replacement cost; the dwelling policy values property at actual cash value
D. Homeowners coverage is worldwide while the dwelling forms limit coverage while on the described premises.
National flood insurance is available for:
- private residences only
- private residences and residential contents only
- residential and non-residential buildings only
- Residential and non-residential buildings and contents
Some property insurance policies provide for payment of the full policy limit in the event of a total loss by a covered peril, regardless of the actual value of the property. These policies are known as:
- Indemnity policies
- ACV policies
- Valued policies
- Market value policies
Each of the following is true about homeowners personal property coverage except:
- The basic form does not include personal property coverage
- Personal property of a guest may be covered
- Special sublimits apply to some type of personal property
- The full limit applies to personal property any where in the world
Interline endorsements apply or could apply:
- Only to inland marine coverage
- To more than one coverage part of a package policy
- To property and liability coverage only
- Only when a broad causes of loss form is attached to a policy
The term “time element coverage” is used when the amount of loss depends on:
- The time between the date of loss and expiration date
- The time between the effective date and date of loss
- The time of year when a seasonal business suffers a loss
- The time it takes to repair, rebuild or restore damaged property
The “Inchmaree clause” in ocean marine policies provides coverage for which of the following?
- Liability due to collision loss
- Physical damage to the ship
- Cargo damage due to negligence of the crew
- Loss of shipping charges