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Question & Answers ( Latest 2025 )
Why was the commercial Insurance Deregulation Act Created? - CORRECT ANSWERS ✔✔To protect the public from the adverse effects of excessive, inadequate, & unfair discriminatory rates & marketing practices Which policies issued must follow the provisions of the Commercial Insurance Deregulation Act? - CORRECT ANSWERS ✔✔Commercial policies When must rate amendments & policy forms be filed with the commissioner? - CORRECT ANSWERS ✔✔30 days before What losses are excluded from flood insurance? - CORRECT ANSWERS ✔✔-Landslides -Sewer backup -Windblown Rain -Snow -Sleet Who administers the NFIP? - CORRECT ANSWERS ✔✔Federal Insurance Administration (FIA)
Question & Answers ( Latest 2025 )
What does the NFIP stand for? - CORRECT ANSWERS ✔✔National Flood Insurance Program Why was the National Flood insurance Program constructed? - CORRECT ANSWERS ✔✔to fill in gaps of flood coverage by the private sector What are the 3 NFIP requirements for coverage? - CORRECT ANSWERS ✔✔-community land management & flood control programs must reduce flood losses in the future -Flood insurance required in specific flood prone areas as a condition for receiving loans through/ backed by the federal government -Property owners that fail to purchase flood insurance within 1 year after it is available will not be eligible for full disaster relief funding. It will be reduced by an amount of insurance that could have been purchased What is the NFIP max coverage for a single family? - CORRECT ANSWERS ✔✔Building $250K, Contents $100K What is the NFIP max coverage for other residential? - CORRECT ANSWERS ✔✔Building $250K, Contents $100K
Question & Answers ( Latest 2025 )
What are the exceptions to the 30 day NFIP wait period? - CORRECT ANSWERS ✔✔-1st 30 days after coverage, community enters standard or emergency program, coverage will begin at 12:01 am the date after application and premium were mailed -When an existing policy was assigned to a property purchaser -At 12:01 am on the 5th day after an endorsement request & premium has been mailed for existing policy What was the Supreme Court's decision regarding the Paul v. Virginia case? - CORRECT ANSWERS ✔✔insurance was NOT interstate commerce and could not be regulated by the federal govt. Who heard the Paul v. Virginia case? - CORRECT ANSWERS ✔✔Supreme Court Who heard the US v Southeastern Underwriting Association case? - CORRECT ANSWERS ✔✔Supreme Court What was the decision in the US v Southeastern Underwriting Association Case? - CORRECT ANSWERS ✔✔Insurance is interstate
Question & Answers ( Latest 2025 )
commerce and should be subject to federal regulations (currently in effect today) What is the McCarran-Ferguson Act? - CORRECT ANSWERS ✔✔The federal govt won't regulate insurance business as long as states perform an adequate job of managing their own insurance industries. When was the McCarran-Ferguson Act passed? - CORRECT ANSWERS ✔✔March 9, 1945 To whom does the insurance commissioner have to provide a report? - CORRECT ANSWERS ✔✔Governor & Legislature How often must the insurance Commissioner provide a report? - CORRECT ANSWERS ✔✔Annually How long before a disciplinary hearing must the insurance commissioner notify interested parties? - CORRECT ANSWERS ✔✔ 10 days before What is the fine for failing to comply with a court-ordered subpoena? - CORRECT ANSWERS ✔✔$
Question & Answers ( Latest 2025 )
What is the fine for if a license fee check is returned for insufficient funds? - CORRECT ANSWERS ✔✔$ What is the fine for if you do not contact the department regarding a change in partners, owners, officers, or directors? - CORRECT ANSWERS ✔✔$ What is the fine for not returning a license to a producer? - CORRECT ANSWERS ✔✔$ What is the fine for not maintaining an office address or employment contracts on file with the department? - CORRECT ANSWERS ✔✔$ for each contract What document is required before an insurance company may transact business in a state? - CORRECT ANSWERS ✔✔Certificate of Authority What is a domestic insurer? - CORRECT ANSWERS ✔✔An insurer that conducts business in the state in which it was incorporated A producer who is appointed with more than one insurer is considered to be... - CORRECT ANSWERS ✔✔A Licensed Solicitor
Question & Answers ( Latest 2025 )
Implied authority is defined as... - CORRECT ANSWERS ✔✔Ability to act outside the authority specifically granted in an agency agreement & extends company's liability What kind of clause relates to this statement: E&N Company issued a policy in consideration of the representations on an application & the payment of the 1st premium? - CORRECT ANSWERS ✔✔Consideration An insured's representations and warranties are incorrectly stated in which of the following statements? a. Statements made by an applicant that are guaranteed true are considered to be warranties b. Statements that an applicant believes to be true, but does not guarantee to be true, are considered to be representations c. An applicant's statements on an application are considered warranties d. An applicant's statements on an application are considered representations - CORRECT ANSWERS ✔✔c. An applicant's statements on an application are considered warranties What term relates to an agreement without legal effect? - CORRECT ANSWERS ✔✔Void
Question & Answers ( Latest 2025 )
Which entity makes an enforceable promise in a unilateral contract? - CORRECT ANSWERS ✔✔Insurer In a court of law, any ambiguity found in a policy will go in favor of the insured because an insurance policy is what kind of contract? - CORRECT ANSWERS ✔✔contract of adhesion In regard to an informal contract, when will it become binding? - CORRECT ANSWERS ✔✔When one party makes an offer and the other party accepts the offer When a risk is insurable, what must be calculable? - CORRECT ANSWERS ✔✔chance of loss What is a non-profit provider of insurance that is covered by a unique section of the insurance code called? - CORRECT ANSWERS ✔✔Fraternal Life Insurance Organization All of the following are examples of conditions except: a. Inspections b. Liberalization clause c. Return of premium
Question & Answers ( Latest 2025 )
d. Appraisal - CORRECT ANSWERS ✔✔d. Appraisal If a driver had lots of accidents & violations, compared to other drivers their age, which rating type would most closely reflect their risk? - CORRECT ANSWERS ✔✔Merit What construction class has a 2 hour fire resistance rating? - CORRECT ANSWERS ✔✔fire resistive What rating system is the most common approach used in the insurance industry? - CORRECT ANSWERS ✔✔class A consequential loss is known as what kind of loss? - CORRECT ANSWERS ✔✔indirect What is ACV? - CORRECT ANSWERS ✔✔Actual cash value Replacement cost-depreciation= ACV Which kind of penalty does the insured suffer if the insured does NOT carry sufficient insurance to meet the policy requirement? - CORRECT ANSWERS ✔✔coinsurance
Question & Answers ( Latest 2025 )
An individual insured under a policy that is not named is known as: - CORRECT ANSWERS ✔✔the insured William wants to know whether theft will be covered under his basic form dwelling policy. Will it be covered? - CORRECT ANSWERS ✔✔No, it will not be covered. Which coverage insures contents damaged by fire? - CORRECT ANSWERS ✔✔Coverage c The broad form dwelling policy with removal coverage will cover property temporarily removed from the premises to protect it from damage. What is the length of this coverage? - CORRECT ANSWERS ✔✔30 days What would be covered by Jan's dwelling policy? a. Theft of her car from detached garage b. Death of her dog due to smoke inhalation c. Fire damage to her canoe in her garage
Question & Answers ( Latest 2025 )
d. Fire damage to her garage on her premises used as a repair shop for cars - CORRECT ANSWERS ✔✔c. Fire damage to her canoe in her garage Sally is moving to a new location. Her personal property coverage under her dwelling policy will apply on a pro rata basis for how many days? - CORRECT ANSWERS ✔✔30 days Which coverage provides additional living expenses? - CORRECT ANSWERS ✔✔Coverage E What are the max coverage limits for Coverage A and Coverage C under the JIA? - CORRECT ANSWERS ✔✔$455,000 & $228, Vandalism would be covered if an insured's premises was vacant for how many days? - CORRECT ANSWERS ✔✔ 35 Under dwelling policy coverage C, which is included a. Small plane belonging to a renter b. Sofa belonging to a renter c. Watch belonging to a guest
Question & Answers ( Latest 2025 )
a. earth movement b. other structures c. debris removal d. improvements - CORRECT ANSWERS ✔✔a. earth movement When do mobile homes qualify for basic coverage? - CORRECT ANSWERS ✔✔If permanently located on a private lot What is excluded from other coverages in the Basic Dwelling policy? - CORRECT ANSWERS ✔✔breakage of glass DP-2 differs from dwelling basic form with extended coverage because DP-2 adds... - CORRECT ANSWERS ✔✔coverage for damage caused by burgulars Which of the following clauses under a Dwelling policy would apply to Jane who lost one of her two matching crystal candlesticks? - CORRECT ANSWERS ✔✔Pair or set In all homeowner's forms, additional coverage for a fire department service charge covers charges made by the fire department to... - CORRECT ANSWERS ✔✔save covered property from a fire
Question & Answers ( Latest 2025 )
What homeowner's policy has the broad form? - CORRECT ANSWERS ✔✔HO- What condition voids a homeowner's policy? - CORRECT ANSWERS ✔✔Concealment/fraud An exclusive home would likely be insured under which form? - CORRECT ANSWERS ✔✔HO- The Jackson's house is under repair after last month's storm. Which coverage will allow the family to maintain its normal standard of living?
- CORRECT ANSWERS ✔✔Additional Living Expense Coverage When can a policy be voided if an insured committed fraud? - CORRECT ANSWERS ✔✔Before or after a loss All forms of homeowner's policies exclude: a. hail b. earth movement c. volcanic explosion
Question & Answers ( Latest 2025 )
Which HO policy has the contents broad form? - CORRECT ANSWERS ✔✔HO- What will a HO policy pay for the removal of one fallen tree in a covered loss? - CORRECT ANSWERS ✔✔$ What is the HO-8 limit on worldwide coverage? - CORRECT ANSWERS ✔✔$1, Under a homeowner's policy, which of the following statements are TRUE regarding coverage of the Fire Dept. Service charge: a. the cost is included in Dwelling Coverage A b. the cost is included in addition to the limit of insurance property c. included in personal coverage c d. no coverage at all - CORRECT ANSWERS ✔✔b. the cost is included in addition to the limit of insurance property Under the HO-5 landlord furnishings in a rental apartment is limited to what amount? - CORRECT ANSWERS ✔✔$
Question & Answers ( Latest 2025 )
The collapse additional coverage is included in what form? - CORRECT ANSWERS ✔✔All forms except HO- Under HO Property additional coverage, how much is covered for debris removal? - CORRECT ANSWERS ✔✔All reasonable costs up to $1, What is the limitation on platinum coins under a HO policy? - CORRECT ANSWERS ✔✔$ When does a watercraft endorsement cover a rented boat? - CORRECT ANSWERS ✔✔Never George has a builder's risk form. When does his coverage begin? - CORRECT ANSWERS ✔✔When construction begins The outdoor sign open peril inland marine coverage excludes breakage during which time? - CORRECT ANSWERS ✔✔transporting, repairing, installing, or dismantling What coverage in a farm policy would reimburse for the loss of rental income after damage to their insured dwelling? - CORRECT ANSWERS ✔✔coverage D
