California Property and Casualty Exam With Absolute Solution

California Property and Casualty Exam with Absolute Solution Most workers compensation policies are written for 1 year terms. - true A person licensed as either a property and casualty agent/broker or as an accident and health agent may be authorized to transact disability insurance for an admitted insurer by filing a notice of appointment from that insurer. This is known as: - Dual Authority HMO's, PPO's, and POS, are referred to as what kind of care? - Managed care Which of the following could offset the effects of not having a disability income policy: - cash savings Which of the following is NOT one of the three extensions of coverage under the special form? - Collapse If coverage exists under both an occurrence and a claims-made policy, how will the policies share the loss? - The claims-made policy will provide excess coverage A supplemental extended reporting period extends coverage: - indefinitely Basic services - Services that an HMO are required to provide are referred to as which of the following Risk Retention Groups are: - liability insurers owned by their policyholders Barratry - In Ocean Marine if the captain and crew steal the ship and cargo without the ship-owners knowledge If the insured must rent a car because his was stolen, what is the maximum dollar amount of coverage available under the commercial auto policy? - 600 Expected or intended losses - exclusion under the business auto liability coverage Concealment - the neglect to communicate that which a party knows and ought to communicate A disability income policy will do which of the following - Replace a portion of the insureds income if they become disabled Long-term care policies may not be cancelled or non-renewed on the grounds of age. - true Under the conversion privilege how long does an insured switching over from a group health package to a personal health policy have? - 31 days Which of the following would NOT be considered an insured under the homeowner's policy? - 65 year old uncle residing off the premises Organizers of HMOs include commercial insurers, hospitals, employers, unions, and local communities. - true Disability income insurance - type of disability insurance that provide benefits if someone becomes ill and is unable to work permanent total - is the most sever type of disability Bodily injuries - usually excluded under errors and omissions insurance The period of time when no benefits are paid is called the black out period - true In addition to ISO a commercial crime program falls under Jurisdiction of - Surety Association of America If a building insured under a commercial property policy was vacant for 60 days, what perils are excluded? - Vandalism, theft, breakage of glass, sprinkler leakage, and water damage Which of the following is correct about hospice care? - It is a provided coverage under part A of Medicare What is true about Workers Comp. Insurance? - Employers are responsible for the cost of their employee What is a difference between surety bonds and insurance policies? - Surety bonds are 3 party contracts, insurance policies are 2 party contracts All of the following are implied warranties under an Ocean Marine Policy EXCEPT: - Cost of Insurance Coverage Social security was invented to create a sense of stability and benefits for retired workers. Social security was meant to establish what? - Minimum floor for the participants An insured building suffers a $180,000 fire loss. There is an 80% coinsurance clause, and the building value is $600,000. If at the time of loss the insured carried $500,000 of commercial property coverage on the building, how much will the insurer pay for the loss? - $180,000 minus the deductible Which of the following is NOT a party to a surety bond? - Bondsman Which of the following is true regarding commercial umbrella insurance policies? - They are written on an excess basis Mobile Equipment Form - is NOT a coverage form under a Commercial Auto Policy maximum amount payable for bail bonds under the personal auto policy - $250 Which of the following is NOT one of the five extensions of coverage available under the building and personal property coverage form? - Increased cost of construction The type of insurance written with property coverages to supplement the protection and fill gaps in insurance is called - difference in conditions insurance Limits of Insurance - In a CGL policy, under both Occurrence and Claims Made Forms, Section III An implied warranty is: - included in the policy, but not specifically stated in it Stock - considered covered property under a commercial property coverage form stop loss provision - The maximum the insured is required to pay Workers Comp. Part. I covers - All sums the insurer is required to pay by state law