Examfx practice test | 93 Questions with 100% Correct Answers
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Course
Fx.
Institution
Liberty University
The Louisiana insurance Guaranty Association Board of Directors are placed in office by - election and appointment States with monopolistic state workers compensation funds - Do not allow private insurers to be licensed to write workers compensation coverage This state provided for a temporary lice...
examfx practice test | 93 questions with 100 correct answers
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Examfx practice test | 93 Questions with 100% Correct Answers
The Louisiana insurance Guaranty Association Board of Directors are placed in office by Correct
Answer: election and appointment
States with monopolistic state workers compensation funds Correct Answer: Do not allow
private insurers to be licensed to write workers compensation coverage
This state provided for a temporary licenses for all of the following EXCEPT Correct Answer:
A producer's retirement
Which of the following producers will be required to complete continuing education hours to
renew his license? Correct Answer: A producer licensed 4 years ago who holds only one line of
authority.
A producer has been notified by the commissioner to stop using an unapproved trade name. How
many days does the producer have to change the trade name before facing a fine? Correct
Answer: 10 days
Which of the following is NOT considered a misrepresentation as it pertains to unfair trade
practices? Correct Answer:
The Pro rata liability clause is designed to protect the principle of Correct Answer: Indemnity
When a resident producer changes his residence address, the Insurance Department must be
notified within Correct Answer: 30 days
A building is insured, but no one has lived or worked in it for 10 years. The building is
completely empty of any furniture or personal belongings. From an Insurance standpoint, the
building is considered. Correct Answer: Vacant
An insurer publishes intimidating brochures that portray the insurer's competitions as financially
and professionally unstable. Which of of the following best describes this act. Correct Answer:
Legal, under any circumstances
Which bonds are required by courts whenever someone seeks a court order stating another
person must or must not dot something? Correct Answer: Injunction bond
In comparison to consumer reports, which of the following describes a unique characteristic of
investigative consumer reports? Correct Answer: The customer's associates, friends, and
neighbors provide the report's data.
An insured relocated to another state for work. However, she still owns and insurers a house in
this state, but has had one living in it for 3 months. She is also storing some of furniture and
clothes in the house. From an insurance standpoint, the insured's house is considered? Correct
Answer: Unoccupied
, If a farm building or structure is vacant or unoccupied, which is true? Correct Answer: If for 120
consecutive days, the limits applicable to the building and its contents are reduced by 50%
Which loss listed below would be fully covered by a homeowners policy? Correct Answer:
$2,000 silver tea set stolen
A specific coverage part is listed on the commercial package policy declerations page, but there
is no premium shown. What does that mean, Correct Answer: There is no coverage.
With respect to auto insurance, the term owned autos includes all of the following EXCEPT:
Correct Answer: A pickup or van titled to and used in the named insured's business
A deli owner has a businessowners liability policy. When a customer slipped and hurt herself at
the deli, the liability policy paid for medical expenses. The customer, however, is now suing the
business owner because she claims there was no caution sign warning her that the floor was wet.
What is the insurer obligated to do. Correct Answer: Pay to defend the policy owner in the
lawsuit because liability coverage contains a duty-to-defend provision
The part of the policy that sets forth the rules of conduct, duties, and obligations of the parties is
called the Correct Answer: Conditions
What type of information would be found in a policy's insuring agreement? Correct Answer:
Renewal dates
The commercial general liability coverage form excludes bodily injury or property damage that
the insured has assumed under any contract or agreement. However, the exclusion does not apply
to certain types of contracts, as long as the injury or damage occurs Correct Answer: After the
execution of the contract
A restaurant is out of business for 3 days after an insured's automobile hits and electrical pole.
The pole fails and hits the building, knocking out all electrical power supply. Which of the
following is NOT covered under the insured driver's auto policy? Correct Answer: Lost
revenues from the restaurant
What method of premium computation relates an employer's losses, payroll, and premiums to the
rating bureau's classifications of operations . Correct Answer: Experience modification factor
Which of the following terms refers to other insurance that is written on the same risk, but not on
the same coverage basis? Correct Answer: Nonconcurrency
When is an employee entitled to rehabilitation services under Workers Compensation? Correct
Answer: When the injured worker is unable to earn wages equal to what they earned before the
injury.
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