Whitney & Lloyd Study Cards

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Whitney & Lloyd Study Cards
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  1. Joe tells the insurance company that his car was stolen, when in reality he gave it away. This is an example of a:
    (A) Concealment
    (B) Twisting
    (C) Representation
    (D) Misrepresentation
    (D) Misrepresentation
    (this multiple choice question has been scrambled)
  2. An insurance company from Alberta, Canada, formed for the benefit of its shareholder, and authorized to do business in this state would be:
    (a) Stock, Alien, Admitted Company(b) Stock, Foreign, Non - Admitted Company (c) Mutal, Alien, Admitted Company (d) Mutual, Foreign, Admitted Company
    A: Stock Alien Admitted Company
  3. Hiring a cleaning person to clean the agency office is an example of an agents
    A: Express authority
    B: Implied authority
    C: Apparent authority
    D: Delegated authority
    B: Implied authority
  4. Binders do all of the following EXCEPT:

    A: Privde immediate coverage
    B: Provide permanent coverage
    C: Speed up coverage
    D: Represent a legal contract
    B: Provide permanent coverage
  5. an insured/policyowener has no right to modify the wording of a policy/contract because insurance contracts are
    A: contracts of adhesion
    B: Aleatory Contracts
    C: Written entirely by the agent
    D: Contracts that can never be modified or changed
    A: contracts of adhesion
  6. In many states, solicitors can be licensed. Solicitors work for
    A: The customer
    B: agent
    C: insurance company
    D: Tips
    B: agent
  7. An agent who, by contract, represents only one insurance company is referred to as (a) an
    A: independent agent
    B: Dependent agent
    C: Captive Agent
    D: Indetured agent
    C: captive agent
  8. the section of an insurance policy which lists losses not covered is the
    A: insuring agreement
    B: Exempted Section
    C: Declarations Sheet
    D: Exclusions Section
    D: Exclusions Section
  9. An insurance policy/contrace could be terminated for all the following reasons EXCEPT:
    A: Non-payment of premium
    B: Material misrepresentations
    C: material concealments
    D: a request for claim payment
    D: a request for claim payment
  10. A commercial insurance policy can be terminated by either
    A: the complany or the named insured
    B: the agent or the named insured
    C: the lender or the agent
    D: the company or the first named insured
    D: the company or the first named insured
  11. Coverage for a customer's clothing located in a dry cleaning establishment, which accidentally burns to the ground, would most likely come from the dry cleaner's
    A: commercial crime policy
    B: mechanical breakdown/boiler and machinery policy
    C: commercial liablity policy
    D: commercial property policy
    D: commercial property policy
  12. which of the follwing is NOT true concernign a theft loss?
    A: Therft of an auto would be covered as an Other than collision loss in personal auto
    B: theft of cash from a business could be covered under commercial crime
    C: an HO-1 has no theft coverage
    D: a commercial property policy with special perils coverage contains some theft coverage
    C: an HO-1 has no theft coverage
  13. all of the follwing are true concerning liability coverage EXCEPT:
    A: liability will only pay if there is a legal obligation to do so
    B: unendorsed homeowner's policies provide liability coverage
    C: umbrella liability policies are only available to businesses
    D: proximate cause is a critical element in establishing negligence
    C: umbrella liability policies are only available to businesses
  14. Depreciation is a major factor in determining
    A: replacement cost
    B: ACV
    C: agreed value
    D: fair market value
    B: ACV
  15. Which of the follwing is true concerning property coverage for vacant buildings
    A: vacant buildings have no property coverage
    B: a building that has been vacant for a specified period of time could have certain limitations in the perils that are covered
    C: Fire losses to a vacant building are excluded from coverage
    D: Payment for the covered losses to a vacant building are 50% less than they normally would be
    B: a building that has been vacant for a specified period of time could have certain limitations in the perils that are covered
  16. In which of the follwoing situations would a liability policy NOT provide coverage?
    A: A homeowner's 10 year old intentionally breaks a neighbor's window
    B: a sleepy driver runs a red light and hits another car
    C: a business negligently runs a cord across a floor, and a customer trips and falls
    D: a man accidentally drives his company car into a ditch and damages the car
    D: a man accidentally drives his company car into a ditch and damages the car
  17. All of the follwing are true concerning property covered by broad perils EXCEPT:
    A: the property would be covered if damaged by a falling objec
    B: The property is covered for damage caused by named perils
    C: The sudden and accidental water damage to a property from a burst pipe would be covered
    D: every peril is covered unless specifically excluded
    D: every peril is covered unless specifically excluded
  18. Defense costs can be covered by all the following policies EXCEPT:
    A: commercial property
    B: Homeowners
    C: personal auto
    D: mechanical breakdown/boiler and machinery
    A: commercial property
  19. Damages awarded in a liability claim to punish the wrongdoer are called
    A: compensatory damages
    B: retribution
    C: punitive damages
    D: judicial supplements
    C: punitive damages
  20. all of the following policies can contain both property and casualty covrages EXCEPT:
    A: homeowners
    B: personal automobile
    C: CGL
    D: BOP
    C: CGL
  21. Property ppolicies contain deductibles in order to
    A: punish the property owner
    B: control the over utilization of the policy
    C: reduce liability exposure
    D: Pay for the insurance company's claims administrative costs
    B: control the over utilization of the policy
  22. Liablity policies are designed to
    A: protect the insured's property against loss
    B: replace the insured's lost income after a direct loss
    C: protect the insured's assets in the event of a covered claim
    D: defend the insured in the event of an intentional act
    C: protect the insured's assets in the event of a covered claim
  23. in which of the following occerrences would themedical payments section of an insured's homeowners policy provide coverage?
    A: the insured's wife falls down the steps at home
    B: the insured's wife falls down the steps at a neighbor's home
    C: the insured's neighbor falls down the steps at the insured's home
    D: the insured runs over a neighbor while driving the neighbor's car
    C: the insured's neighbor falls down the steps at the insured's home
  24. homeowners liability would provide coverage in all of the following scenarios EXCEPT:
    A: the insured's dog bites the mail man
    B: the insured's five-year old son bites the mail man
    C: the insured hits a golf ball in his backyard. The golf ball flies over thehouse and hits the mail man
    D: the insured punches the mail man
    D: the insured punches the mail man
  25. an insured has basic peril coverage on his dwelling and pernal property. Which of the following losses would NOT be covered under his homeowners policy?
    A: a water pipe bursts and damages some furniture
    B: a grill fire gets out of hand an burns some construction materials he was using to remodel his home
    C: a tornado levels his detached garage
    D: a gas water heather explodes and damages his basement
    A: a water pipe bursts and damages some furniture
  26. an insured has Broad peril coverage on his dwelling and personal property. Which of the following losses would be covered under his homeowners policy?
    A: a water pipe bursts and the leas is not detected for three weeks
    B: a meteor falls out of the sky oand curshes his company car in the driveway
    C: a fire causes his home to collapse
    D: a flood sweeps away his tool shed
    C: a fire causes his home to collapse
  27. Under an unendorsed homeowner's policy, the insured can expect losses to personal property to be valued
    A: on a replacement cost basis
    B: at fair market value
    C: on an agreed value basis
    D: based on the actual cash valu (ACV) of the property
    D: based on the actual cash valu (ACV) of the property
  28. a camera is stolen from an insured's htel room while she is on vacation. which of the following is true concerning the theft?
    A: the camera would only be covered by her homeowner's policy if it had a personal property floater attached
    B: the camera would not be covered because it was stolen while located away from the residence premises
    C: the camera would be covered on an ACV basis if the insured owns an unendorsed homeowner's policy
    D: the camera would not be covered because theft is excluded under homeowners policies
    C: the camera would be covered on an ACV basis if the insured owns an unendorsed homeowner's policy
  29. Which of the following peril cominations describes the level of peril coverage for Dwelling and Personal property under an HO-3?
    A: Basic - Basic
    B: Broad - Basic
    C: Broad - Broad
    D: Special - Broad
    D: Special - Broad
  30. Joe owns a homeowners policy. which of the following individuals would be considered an Insured under Joe's policy?
    A: Joe's 12 year old son while away at summer camp
    B: a boarder who rents a room from Joe
    C: joe's 18 year old daughter who is in the military
    D: a 22 year old foreign exchange student living in Joe's home
    A: Joe's 12 year old son while away at summer camp
  31. Homeowners liability would provide coverage for Joe if he runs over:
    A: three swimmers with his speed boat
    B: three joggers with his car
    C: A neighbor's foot with his riding lawn mower
    D: a cusomter with a forklift vehicle while at work in a home improvement store
    C: A neighbor's foot with his riding lawn mower
  32. an HO - 4 contains
    A: only dwelling coverage
    B: only personal property coverage
    C: only liablility coverage
    D: both personal poperty and liablility coverage
    D: both personal poperty and liablility coverage
  33. which of the follwoing occurrences would NOT be covered under the liability section of your personal auto policy?
    A: your 12 year old son backs your car over an elderly lady
    B: your neighbor who borrows your car with your permission runs over an elderly man
    C: a thief who steals your car hits an elderly couple
    D: your 18 year-old doughter at college runs over the school mascot
    C: a thief who steals your car hits an elderly couple
  34. which of the following coverages in an insured's personal auto policy would not benefit the insured directly?
    A: liability
    B: Med Pay
    C: UMBI
    D: Collisioin
    A: liability
  35. you are at fault for an auto accident. If you have all of the appropriate coverages, your personal auto policy will
    A: only fix your car
    B only pay your medical bills
    C: Fix your car and pay your medical bills
    D: provide no benefits because you are at fault
    C: Fix your car and pay your medical bills
  36. the maximum a personal auto policy with liability limits of 100/300/100 would pay for any one occurrence is:
    A: $100,000
    B: $500,000
    C: $200,000
    D: $400,000
    D: $400,000
  37. a deductible is a normal feature of which personal auto coverage?
    A: liability
    B: med pay
    C: physical damage coverage
    D: UMBI
    C: physical damage coverage
  38. you are at fault for an accident. your pain and suffering and lost wages will
    A:be payable to you from your liability coverage
    B: be payable to you from your med pay
    C: be payable to you from your uninsured motorists coverage
    D: not be compensated by your personal auto policy
    D: not be compensated by your personal auto policy
  39. which of the following would NOT be covered loss under other than collision suto coverage?
    A: you hit a cow
    B: you swerve to avoid a cow, and your car turns over
    C: your car is swept away by a tornado (that also contains a cow, like in the movie "Twister")
    D: your car is stolen by a man who is fleeing from a mad cow
    B: you swerve to avoid a cow, and your car turns over
  40. a person with 50/100/50 personal auto liability limits is driving in a state where the minimum liability requirements are 25/50/10. if this person negligently causes an accident, they could:
    A: be considered an uninsured motorist
    B: depending on the coverage and the injuries caused to the other driver, be considered an underinsured motorist
    C: be considered both and uninsured and underinsured motorist
    D: pay for the losses suffered by the other driver with their underinsured motorists coverage
    B: depending on the coverage and the injuries caused to the other driver, be considered an underinsured motorist
  41. you cause an accident. Your collisioin coverage will:
    A: not pay for any losses because you are at faulot
    B: will pay to fix the other driver's car and your car
    C: will only pay to fix the other driver's car
    D: will only pay to fix your car
    B: will pay to fix the other driver's car and your car
  42. Your personal auto policy will NOT provide coverage if:
    A: you drive a neighbor's car
    B: you drive a rental car whileyour car is in the shop for repair
    C: you are driving a company car provided for your regular and frequent use
    D: your are driving a relative's car who you later find out has no car insurance
    C: you are driving a company car provided for your regular and frequent use
  43. A friend is riding in your car with you when you are involved in an accident. Your friend ishurt. Your personal auto policy will
    A: pay for your friend's lost wages even though there is no legal obligation to do so
    B: pay for your friend's medical bills even though there is no legal obligation to do so
    C: pay for your friend's pain and suffering even though there is no legal obligation to do so
    D: not pay any expenses incurred by your friend
    B: pay for your friend's medical bills even though there is no legal obligation to do so
  44. in personal auto, med pay will pay medical bills for what time period?
    A: one year from the date of the occureence
    B: three years from the date of the occurrence
    C: five years from the date of the occurrence
    D: indefinitely
    B: three years from the date of the occurrence
  45. a theater company has sets worth thousands of dollars that they move from city to city. the most appropriate policy to cover the sets would be which of the following?
    A: commercial property
    B: inland marine
    C: commercial liability
    D: commercial umbrella
    B: inland marine
  46. an auto transmissioin repair business operating out of an owned building needs to have which of the following coverages?
    A: garage liability
    B garagekeepers liability
    C: commercial property
    D: All of the above
    D: All of the above
  47. a pizza restaurant has a home delivery service. the restaurant does not own any automobiles. instead, the employees use their own cars to deliver the pizzas. does the restaurant need to buy business auto?
    A: yes, because of vicarious liability
    B: no, not if the employees have personal auto policies of their own
    C: no, because contractual liability is a covered exposure under ther CGL
    D: no. Workers compensation is all the retaurant needs
    A: yes, because of vicarious liability
  48. a samll retail business with a need for both property and liablility coverage would be eligible for
    A: commercial property
    B: commercial liability
    C: a BOP
    D: all of the above
    D: all of the above
  49. a medical supply salesperson drives a company car loaded with valuable medical instruments to a city 500 miles away. the car is stolen and the medical supplies burn up in a fire. coverage would be proveded under:
    A: A DGL and COmmercial Property
    B: commercial auto and inland marine
    C: Commercial property and commercial crime
    D: commercial auto and equipement breakdown
    B: commercial auto and inland marine
  50. a commercial building has a commercial property policy with basic peril coverage. all of the follwoing losses to the building would be covered by the commercial property policy EXCEPT:
    A: torndao damage
    B: fire damage
    C: damage caused by an exploding gas hot water heater
    D: Damage caused by an exploding boiler
    D: Damage caused by an exploding boiler
  51. which of the follwoing would NOT be an insured under the CGL of a sole proprietor who owns a commercial office building?
    A: the sole proprietor's spouse
    B: the sole proprietor's tenants who rent the building
    C: the sole proprietor's employees
    D: the sole proprietor
    B: the sole proprietor's tenants who rent the building
  52. theft of cash from a business
    A: is covered under their commercial property policy as long as an employee did not steal the cash
    B: is covered under their inland marine policy
    C: can never be covered
    D: is best covered by Commercial Crime Form C
    D: is best covered by Commercial Crime Form C
  53. which of the follwing is NOT an additional coverage provided by a commercial property policy
    A: debris removal
    B: preservation of property
    C: coverage for newly contructed property
    D: fire department service charge
    C: coverage for newly contructed property
  54. Which of the following businesses would be eligible for a BOP
    A: joe's bar and grill
    B: key bank and trust
    C: meggies's bakery
    D: D&B BMW auto dealership
    C: meggies's bakery
  55. the first step in resolving a claim dispute between a claimant and their commercial property insurer is called:
    A: arbitration
    B: appeasement
    C: appraisal
    D: apparition
    C: appraisal
  56. a mechanical breakdown/boiler and machinery policy could cover all of the following except:
    A: a freezer
    B: An air conditioning unit
    C: a bulldozer
    D: an industrial generator
    C: a bulldozer
  57. which of the following individual would be required by law to be covered by workers comp?
    A: a maid
    B: a sole proprietor
    C: a part time employee of a retaurant
    D: a police officer
    C: a part time employee of a retaurant
  58. joe is injured at Fred's home while working for ABC Roofing company installing a new roof. Joe's injuries would best be covered by:
    A: fred's homeowners policy
    B: joe's medical expense policy
    C: abc's commercial general liability policy
    D: abc's workers compensation policy
    D: abc's workers compensation policy
  59. motivating employers to hire handicapped individuals is one of the primary purposes of:
    A: the second injury fund
    B: other states coverage
    C: accidental dismemberment health insurance
    D: the disability relief act
    A: the second injury fund
  60. a workers comp claim would not be covered if:
    A: the employee was in any way responsible for their own injury
    B: the injury sustained by the empoloyee happened somewhere other than on the buseness premises
    C: the employee does not notify the employer of the injury within the time frame stipulated by law
    D: the employee continues to work
    C: the employee does not notify the employer of the injury within the time frame stipulated by law
  61. the term "eclusive remedy" means in general that:
    A: employees have no rights
    B: employees cannot sue employers
    C: by law, employers can only compensate employees whoare are injured at work with benefits from a workers comp policy
    D: employees who contract an occupational illness can only be prescribed those medicines specified in the workers comp policy
    B: employees cannot sue employers
  62. an application for homeowners insurance is denied based on a consumer report furnished to the in srance company. under the provisions of the Fair Credit Reporting Act, the applicant has the right to do which of the following?
    A: Be advised of the name of the credit reporting agency
    B: Sue the insurance company for defamation
    C: demand the insurance company furnish a copy of the credit report
    D: be advised of the content of the report, but they have no right to view their credit history
    A: Be advised of the name of the credit reporting agency
  63. Under the terms of a property policy, an insurance company is obligated to
    A: pay covered losses
    B: ensure that the covered property is safe
    C: keep records of the covered property
    D: ensure that the hazard remains the same
    A: pay covered losses
  64. which of the following should an insurance agant recomend to a prospective insured who owns silverware, jewelry and furs valued in excess of $50,000?
    A: homeowners policy
    B: personal articles floater
    C: personal effects floater
    D: Extended coverage endorsement
    B: personal articles floater
  65. on an automobile policy application, an applicant states that she has had no accidents in the past 3 years. This statement is known as whcih of the folliwng , if any?
    A: a representation
    B: a warranty
    C: a concealment
    D: none of the above
    A: a representation
  66. a deductible usually applies to which of the following automobile policy coverages?
    A: boldily injury liablility
    B: Property damage liablility
    C: physical damage
    D: medical payments
    C: physical damage
  67. which coverage would apply if a deer leaps on to Whitney's car and causes extensive damage
    A: Bodily injury and property damage liablility
    B: Comprehensive (other than collision)
    C: collision
    D: medical payments
    B: Comprehensive (other than collision)
  68. which of the following losses would best fit the insurance definition of an occurrence?
    A: rust
    B: an automobile wreck
    C: a boiloer explosion
    D: a flood /fire caused by a short-circuited wire
    A: rust (moron)
  69. The standard deductible on a businessowners policy is which of the following?
    A: $100
    B: $250
    C: $500
    D: $1000
    C: $500
  70. which of the following conditions of a property policy, if any, describes the procedure for an insured to use a disagreement with the insurance company about the amout of a loss?
    A: Pro rata Liability
    B: subrogation
    C: audit
    D: none of the above
    D: none of the above
  71. which of the following types of property would NOT be included under coverage A of a building and personal property coverage form?
    A: a central air conditioning system
    B: wall to wall carpeting
    C: a permanently installed intercom system
    D: building improvements made by the insured to a space they lease
    D: building improvements made by the insured to a space they lease
  72. Joe Insured owns a restaurant that is heated bya boiler. the boiler explodes. joes needs a boiler and machinery policy to insure himself against
    A: lawsuits from injured neighbors
    B: bodily injury claims from injured patron who were in the restaurant
    C: bodily injury claims from injured eployees
    D: the loss of his building and business personal property
    D: the loss of his building and business personal property
  73. under a basic building and personal property coverage form, loss valuation is based on which of the following?
    A: market value
    B: acutal cash value
    C: original cost
    D: replacement cost
    C: original cost
  74. fire legal liablility coverage is imprtant for which of the following kinds of property
    A: real property which is owned
    B: real property which is leased
    C: personal property which is owned
    D: personal property which is leased
    B: real property which is leased
  75. a business owners policy would cover shich of the following liability expenses?
    A: professional liability
    B: employee injury liability
    C: products liability
    D: directors and officers liability
    C: products liability
  76. a dead tree beside a home is best described as which of the following types of hazard
    A: physical
    B: proximate
    C: moral
    D: morale
    A: Physical
  77. Sue green has crime insuring agreement 3 - inside the premises - theft of money and securities on her restaurant. if an employee steals some cash by breaking into the premises on a holiday, the policy would
    A: cover the loss
    B: not cover the loss, since acts by employees are exlcuded
    C: not cover the loss, since daytime burglaries are excluded
    D: not cover the loss, since only loss of merchandise is covered
    B: not cover the loss, since acts by employees are exlcuded
  78. joseph pinelli, who is insured under a Business (commercial) auto policy, is involved in an accident. he and the insurance company disagree on the amount to be paid for the damage to his car. under the terms of the policy, which of the following statements is tru?
    A: mr pinelli must accept the insurance company's setimate
    B: each party engages an appraiser, and the appraisers will decide the amount
    C: each party engages an appraiser, and the appraisers will select an umpire
    D: the estimates of both parties will be averaged
    C: each party engages an appraiser, and the appraisers will select an umpire
  79. while installing an air-conditioning unit in a building, an ABC Contracting company employee drops and damages the unit. Which of the following coverages, if any, would protect the company for this loss?
    A: commercial gerneral liablility
    B: personal injury liability
    C: products liability
    D: none of these
    D: none of these
  80. betty jones claims that the bicycle manufactured last year by daryl lanier's firm was the cause of her daughter's accident. which of the following coverages would have provided protection for MR. Lanier
    A: commercial general liability
    B: owners and contractors protective liability
    C: Workers compensation
    D: contractual liability
    A: commercial general liability
  81. a commercial general liability policy provides coverage for exposures to loss arising out of which of the following operations?
    A: business and personal
    B: away from the insured's premises only
    C: on the insured's premises only
    D: on or away from the insured's premises
    D: on or away from the insured's premises
  82. a pro rata liability clause is included in an insurance policy to deal with the problem of
    A: excessive policies
    B: mulitple policies
    C: idadequate coverages
    D: conditional coverages
    B: mulitple policies (it just don't maatta)
  83. products and completed operations liability covrage excludes which of the following?
    A: damage caused by a defective product
    B: damage occurring after possession of the product has been relinquished
    C: a vendor's liability for the products of others
    D: recall of products
    B: damage occurring after possession of the product has been relinquished
  84. under a DGL policy, to determine the maximum amount that is available for any one slip and fall accident, you should look at which of the following limits?
    A: the general aggregae Limit
    B: the occurrence Limit
    C: the presonal and advertising injury Limit
    D: the products and completed operations aggregate Limit
    B: the occurrence Limit

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