Under the Equipment Breakdown Coverage Form, which of the following describes expediting expenses? - ANSWER-Payment for repairs which accelerate the period of restoration
Expediting expenses are those which hasten the period of restoration. By getting the business up to speed more quickly, the...
Under the Equipment Breakdown Coverage Form, which of the following describes
expediting expenses? - ANSWER-Payment for repairs which accelerate the period of
restoration
Expediting expenses are those which hasten the period of restoration. By getting the
business up to speed more quickly, these expenses are offset by the ability to generate
revenue sooner.
Which of the following is covered by Coverage E of the Farm Property Coverage Part? -
ANSWER-Scheduled farm personal property
How much will the Dwelling Policy pay for living expenses after a dwelling insured for
$100,000 Coverage A is damaged by a fire? - ANSWER-$20,000
The Coverage E limit of insurance is 20% of the Coverage A limit.
Which statement regarding the Medical Payments Coverage of the Business Auto
Policy is true? - ANSWER-The BAP does not automatically include Medical Payments
Coverage
Medical Payments Coverage is available by endorsement to the Business Coverage
Form. The coverage is not automatically included in the commercial auto forms.
After being rejected by an insurer due to underwriting guidelines an applicant may
request homeowners coverage under which of the following? - ANSWER-FAIR Plan
The Fair Access to Insurance Requirements program writes homeowners who are
uninsured or have been terminated in the voluntary market.
Which of the following forms provide coverage for indirect loss? - ANSWER-Business
Income Coverage Form
The two indirect loss forms to the Commercial Property Coverage Part are the Business
Income Coverage Form and the Extra Expense Coverage Form.
Choose the false statement about Medical Payments coverage under the Personal Auto
Policy. - ANSWER-The policy limit is applied on a per occurrence basis, not per person
,Auto medical payments coverage applies a per person limit.
All of the following are false about Damage to Your Auto, except: - ANSWER-In the
event of total loss, adjustment will be made for the physical condition of the vehicle
The physical condition of the vehicle is considered in the event of a total loss.
Which of the following is true regarding the HO-4 and HO-6 forms? - ANSWER-They
are used to insure the personal property and personal liability of the insured, but do not
include the structure itself
Since the insured under the HO-4 and HO-6 forms does not have an insurable interest
in the dwelling, the coverage on the structure is limited.
Losses that cannot be calculated objectively, such as pain and suffering or mental
anguish, are considered: - ANSWER-General damages
General damages are awarded to an injured party for pain, suffering, mental anguish,
disfigurement, and similar losses. These losses cannot be calculated objectively and
are assigned a specific dollar value.
What is the difference between the policy forms covering 'computer fraud' and 'fund
transfer fraud'? - ANSWER-Computer fraud applies when a computer is used to illegally
transfer money, and fund transfer fraud applies when a computer generates a
fraudulent funds transfer order
Computer fraud coverage applies when a computer is the direct instrument used for a
crime. Fund transfer fraud coverage applies when instructions cause a fraudulent
transfer to occur, regardless of the means by which the instructions are received.
Neither covers losses due to dishonest employees.
The Businessowners Liability Coverage Form includes coverage for bodily injury,
property damage, personal injury and advertising injury to which coverage applies, plus:
- ANSWER-Liability assumed under an insured contract
Liability coverage is provided for sums for which the insured becomes legally liable to
pay as damages for bodily injury, property damage, or personal injury and advertising
injury, including liability assumed under an insured contract.
Which of the following coverages is mandatory on all Claims-Made Commercial General
Liability Policies issued in New York? - ANSWER-The 60-day tail must be provided. The
3 year tail must be offered, but not necessarily accepted.
A loss caused by which of the following would be covered under a BOP? - ANSWER-
Increased cost of construction
, The Increased Cost of Construction Additional Coverage provides $10,000 coverage for
costs incurred to comply with an ordinance or law regulating repairing or replacing
damaged building parts.
Workers' Compensation does not cover which of the following? - ANSWER-Pain and
suffering are not covered under Workers' Compensation.
Which statement is true about the BOP Hired Auto and Non-Owned Auto Liability
Endorsement? - ANSWER-It adds business auto coverage for a vehicle the insured
rents
This endorsement adds business auto coverage to the BOP, but only for vehicles the
insured hires, leases, and doesn't own.
Which of the following is true regarding the Boatowners Policy? - ANSWER-It is similar
in design to a Homeowners Policy and similar in coverage to the Personal Auto Policy
The Boatowners policy is a package policy that provides both property and liability
coverage and is similar in design to the homeowners policy. The coverage it provides is
similar to that provided by the personal auto policy. The policy is generally used to
insure boats that can be towed by a car.
Which of the following statements regarding Commercial Property insurance is false? -
ANSWER-Time element losses and direct losses are the same
Time element losses are indirect losses, not direct losses.
All of the following are coverage extensions under the Building and Personal Property
Coverage Form, except: - ANSWER-Inflation Guard is an optional coverage, not a
coverage extension.
A group self-insurer's termination of a member is not effective until: - ANSWER-At least
10 days after the termination notice has either been filed with the Board or sent by
certified or registered letter and served in a similar manner upon the employer
Hull Coverage and Cargo Coverage under Ocean Marine Insurance are generally
written on which basis? - ANSWER-Cargo and Hull Insurance are written on a full value
basis. The valuation of the cargo includes the stated value of the invoice, import duties,
and freight charges.
Which of the following statements is NOT correct regarding Supplementary
Uninsured/Underinsured Motorist Coverage? - ANSWER-Every motor vehicle policy
must include supplementary uninsured/underinsured motorist coverage
IT's optional.
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