Comprehensive Exam Study Guide 2024 latest complete update 100% guaranteed
Which of the following statements about Coverage C under
... [Show More] the Homeowners policy is incorrect?
A)Limited coverage is provided for personal property located in a student insured's dorm
B)Coverage C provides property coverage for machinery used to service the premises
C)Coverage for business personal property on the premises is provided, up to a special limit
D)Coverage C provides coverage for the property of roomers and boarders at the insured's request
A worker suffers a spinal injury that leaves the worker unable to work, with no possibility of improvement. This type of disability is called:
Permanent total
B
Permanent partial
C
Temporary partial
D
Temporary total - answer
A permanent total disability is a disability where no improvement is possible and that leaves the injured employee unable to do any work.
An insurance company is organized under the laws of the United Kingdom, and is authorized to do business in New York. In New York, what kind of insurer is this?
A
Non-admitted foreign insurer
B
Admitted domestic insurer
C
Admitted alien insurer
D
Admitted foreign insurer -
The insurer is incorporated in a different country, so it is considered an alien insurer. Because it is authorized to do business in a state, it is considered an admitted insurer.
General damages are those that:
A
Compensate an injured party for suffering, loss of consortium, and similar types of losses
B
Are awarded to the negligent party to punish wrongdoing
C
Can be documented by objective dollar amounts
D
Are awarded to the general public rather than to a specific party - answer
General damages are damages for noneconomic losses that are likely to continue into the future, where it is difficult to put a final figure on the losses.
Homeowners policies cover all of the following losses to trees, shrubs, and plants, except:
A
Loss due to lightning
B
Loss due to vehicles not owned or operated by a resident
C
Loss due to theft
D
A loss resulting from a windstorm - answer
Damage to plants by windstorm, hail, or the weight of ice, snow, or sleet is considered so common as to be an uninsurable peril. The Trees, Shrubs, and Other Plants Additional Coverages names the perils insured against: fire, lightning, explosion, riot or civil commotion, aircraft, vehicles not owned or operated by a resident, vandalism or malicious mischief, and theft.
Which statement regarding liability insurance coverage is incorrect?
A
The per occurrence limit is the maximum amount recoverable during the policy period
B
If the policy is written as primary coverage, it pays first with respect to other policies
C
Casualty policies must defend the insured against liability claims made against them, but only if the claim is relevant to the policy's coverage
D
Pro rata liability is the proportionate distribution of liability among insurers that have policies on the same risk - answer
The occurrence limit is the most that will be paid for any one occurrence. The aggregate limit is the most that will be paid within the policy period. Pro rata liability refers to the policy's Other Insurance clause and indicates that when two policies both cover a loss, they coordinate coverage by paying proportionate amounts compared to the total amount of insurance available for the loss.
Who is responsible for paying premiums, and will receive any premiums that have to be returned?
A
Any named insured
B
An additional insured
C
First named insured
D
Any insured - answer
P is an agent for ABC Insurer, which has just issued an insurance policy to M. In this transaction, who is known as the principal?
A
P, the agent
B
M, the insured
C
ABC Insurer
D
M's beneficiary
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