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exam Question & Answers 2025
Coverage for water backup or sump pump overflow is excluded from the Dwelling Policy. However, with the purchase of the water backup and sump pump overflow endorsement, coverage for up to $5,000 in loss or damage can be provided for an additional premium. What is the deductible associated with this coverage? - CORRECT ANSWERS ✔✔$ Coverage for up to $5,000 in loss or damage, subject to a $ deductible, can be provided for an additional premium with this endorsement. An insured relocated to another state for work. However, she still owns and insures a house in this state, but has had no one living in it for 3 months. She is also storing some furniture and clothes in the house. From an insurance standpoint, the insured's house is considered - CORRECT ANSWERS ✔✔Unoccupied Unoccupancy refers to an insured structure in which no people have been living or working within the required period of time, but the structure contains contents. Individuals in the business of selling construction equipment and mobile equipment should insure with a/an - CORRECT ANSWERS ✔✔Equipment dealers coverage form
exam Question & Answers 2025
An equipment dealer's coverage form covers a dealer's stock in trade consisting primarily of mobile agricultural equipment and construction equipment. It also covers property of others in the dealer's care, custody, or control. It excludes coverage for autos, motorcycles, aircraft, and watercraft. All of the following are true regarding deposit premium - CORRECT ANSWERS ✔✔It must be paid in advance. It is an estimated premium paid at the policy issue. It could be adjusted by the audit. Deposit premium is an estimated premium paid in advance at the time the policy is issued that may be adjusted by the audit based on actual exposures. Which of the following is NOT an essential element of an insurance contract? - CORRECT ANSWERS ✔✔counteroffer
exam Question & Answers 2025
When a direct chain of events resulting from a negligent act causes injury or damage, that act is considered to be - CORRECT ANSWERS ✔✔The proximate case The causes of loss insured against in an insurance policy are known as - CORRECT ANSWERS ✔✔Perils Perils are the causes of loss insured against in an insurance policy. Surety bonds are written for a definite limit called - CORRECT ANSWERS ✔✔The Bond Penalty Insurance is the transfer of - CORRECT ANSWERS ✔✔Risk Crime insurance is usually written on the basis of - CORRECT ANSWERS ✔✔All-Risk A homeowner sells his house to a friend. The friend wants to keep the homeowner's current policy in effect. Under the assignment provision,
exam Question & Answers 2025
which of the following is most likely? - CORRECT ANSWERS ✔✔The homeowner will need to get written consent from the insurer before the policy can be reassigned. What term best describes the act of withholding material information that would be crucial to an underwriting decision? - CORRECT ANSWERS ✔✔Concealment The at-fault driver in an insured's auto crash had the state required minimums for auto liability coverage, but not enough to pay for all the damage done to the insured. This driver is - CORRECT ANSWERS ✔✔Considered uninsured An insured owns a building that is valued at $400,000. To comply with the 80% coinsurance provision of his insurance policy, how much should he insure the property for? - CORRECT ANSWERS ✔✔80% of the property's replacement cost or more The coinsurance clause states that in consideration of a reduced rate, the insured agrees to maintain a certain minimum amount of insurance on the insured property. In the event of a covered loss, insurance is designed to pay replacement cost minus depreciation.
exam Question & Answers 2025
An insured is applying for a casualty insurance policy. One of the conditions of the policy allows the insurance company to inspect the insured's books at the end of the policy term to make sure sufficient premium has been collected for the exposure she plans to insure. Which condition is part of the insured's policy? - CORRECT ANSWERS ✔✔Deposit premium audit Deposit premium audit is a condition that allows an insurer to inspect the insured's books at the end of the policy term to make sure sufficient payment has been collected for the exposure. All of the following are considered parts of the policy structure EXCEPT - CORRECT ANSWERS ✔✔Provisions A premium discount is the term that describes when an insured owes a total standard premium greater than - CORRECT ANSWERS ✔✔$5, Under a personal auto policy, in which of the following locations would a vehicle primarily garaged in California be covered? - CORRECT ANSWERS ✔✔any other state
exam Question & Answers 2025
Which of the following is an additional coverage that is covered by the broad causes of loss form? - CORRECT ANSWERS ✔✔collapse The broad theft coverage endorsement on the dwelling form specifies all of the following limitations EXCEPT - CORRECT ANSWERS ✔✔$1,000 on silverware The employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to - CORRECT ANSWERS ✔✔90 days Which of the following policies will help an auto dealership cover most of its liability exposures? - CORRECT ANSWERS ✔✔A garage liability coverage Which of these is defined as the maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claims that may be made or the number of accidents that may occur? - CORRECT ANSWERS ✔✔Aggregate limit of liability Coverage under the builders risk form will end in all of the following situations EXCEPT - CORRECT ANSWERS ✔✔60 days after the construction has ended
exam Question & Answers 2025
following will explain the reason a death benefit claim is denied? - CORRECT ANSWERS ✔✔Material misrepresentation All of the following statements describe the concept of strict liability EXCEPT - CORRECT ANSWERS ✔✔It is imposed on defendants engaged in hazardous activities When a parent is required to pay for damages caused by his or her children, this is an example of - CORRECT ANSWERS ✔✔Vicarious liability
